The second U.S.-Korea technical consultation, held in Washington, D.C., from the 20th to the 22nd, was held in a form of "preliminary battle" to confirm the interests of both sides. Since the two countries have already entered into a free trade agreement (FTA), there is little room to lower tariff rates in the goods sector. Therefore, it appears that the discussions between the two countries are focusing on adjusting "non-tariff barriers" rather than tariff adjustments.
According to a government trade official who returned after holding technical consultations in the U.S. on the 26th, the U.S. side mentioned the contents included in the "National Trade Estimate (NTE) Report" published by the Office of the United States Trade Representative (USTR) during this round of technical consultations and demanded changes in the Korean government's policies. This marks the first time the U.S. has presented specific requests in U.S.-Korea trade discussions.
During last month’s 2+2 meeting of finance and trade ministers in the U.S., as well as in the first technical consultation that followed and a meeting with the U.S. trade minister held in Jeju, the U.S. side did not present any specific trade proposals.
The trade official said, "During the second technical consultation, we discussed six key areas: balanced trade, non-tariff measures, digital trade, economic security, origin issues, and commercial considerations," and noted, "It was a way to understand the U.S. side's interests by conveying our side's opinions."
He added, "The U.S. side showed interest in how to alleviate the trade imbalance in the goods sector by purchasing more U.S. products or increasing investment in the U.S.," and explained, "We currently have no room for additional tariff reductions."
He continued, "We conveyed to the U.S. side that ‘special considerations regarding the U.S.-Korea FTA are necessary,’" adding, "Considering our relationship under the FTA, we requested to be treated differently and specially compared to other countries."
However, the official drew the line when it came to details of 'specific proposals from the U.S. side', stating, "I cannot comment on that." He cited diplomatic practice in international negotiations as the reason for not disclosing the content.
The third U.S.-Korea technical consultation is expected to take place after the presidential election on June 3. The trade official stated, "Once the new government comes in after the election, we will report on the proceedings of the second technical consultation and plan the future schedule in consultation with the U.S. side," adding, "Looking at the current consultation schedule, we expect it to be around the week of June 9."
It remains uncertain whether the trade agreement between the two countries can be finalized before July 8, the date designated by the U.S. side for the expiration of the reciprocal tariff suspension. On our side, there are limiting factors such as the presidential election and other political timelines, while from the U.S. side, simultaneous trade negotiations with several countries make it difficult to expedite negotiations with a single country.
The official remarked, "It will be difficult for not only our country but all countries to meet the deadline by July 8," adding, "However, we have consistently discussed and managed the issues raised by the U.S. side through channels since the conclusion of the U.S.-Korea FTA. In that respect, it may be somewhat easier to reach a mutual agreement level compared to other countries."