SEOUL– South Korea and the United States on Friday discussed the establishment of a new dialogue channel to enhance cooperation on supply chains of key materials, such as semiconductors, Seoul’s trade ministry said.
The discussions were made during a joint committee meeting of the bilateral free trade agreement (FTA) co-chaired by South Korean Trade Minister Yeo Han-koo and U.S. Trade Representative (USTR) Katherine Tai.
“The two sides agreed to boost bilateral strategic partnership regarding such various new trade issues as supply chains, technologies, a new digital trade framework and climate change,” the Ministry of Trade, Industry and Energy said in a release.
“For the goal, we discussed setting up a channel through which we have in-depth discussions and cooperation under the current Korea-U.S. FTA framework,” it added.
Seoul and Washington have sought to enhance cooperation to ensure resilient supply chains of major components and other items, such as chips, amid a global supply shortage and an intensified Sino-U.S. rivalry.
Earlier this month, Seoul’s Industry Minister Moon Sung-wook met with U.S. Commerce Secretary Gina Raimondo, and agreed to create a new director-level dialogue channel on semiconductors and to hold an inaugural meeting in December.
“We are using our KORUS foundation to discuss how we can tackle major issues and challenges that we’re facing today, such as supply chain resilience, worker rights and environmental protection,” Tai said in her opening remarks. KORUS refers to the bilateral free trade pact.
The two sides also discussed steel tariffs, according to the ministry.
“We once again delivered our stance and concerns regarding the Section 232 rules, and demanded that the two sides begin negotiations for its revision at an early date,” according to the release.
The U.S. decided in October to lift import tariffs of 25 percent on European steel and 10 percent on aluminum imposed by former President Donald Trump in 2018. The lifting is set to take effect on Jan. 1.
In 2018, the U.S. waived the tariffs on South Korean products, but it was in return for a yearly import quota of 2.63 million tons of steel, or 70 percent of Seoul’s average steel products export volume over the past three years.
During Friday’s meeting, Seoul and Washington also discussed major issues of mutual concern, including digital markets, new technologies in agricultural sectors, a certificate of origin and visa.
In addition, they assessed the achievements of their free trade agreement which came into force in March 2012.
“I look forward to exploring ways in which we could develop the agreement further into the future together,” Yeo said. “In particular, at a time of growing uncertainties in the global economy due to the ongoing pandemic, the KORUS FTA is serving as a bedrock for our robust bilateral trade and investment cooperation.”
Trade volume between the two nations grew around 26 percent to US$131.6 billion since the conclusion of the free trade deal, according to government data.
“Korea is one of our most valued trading partners and one of our closest allies. The KORUS actually continues to be both a reflection of that close relationship and the foundation upon which we can build to make it even closer and more cooperative,” Tai said.
It is the first time in 11 years that a U.S. top trade official has visited South Korea. She arrived in Seoul on Thursday for a four-day visit that includes a meeting with the labor minister.
Source: Yonhap News Agency