South Korean Trade Minister Yeo Han-koo has called on the United States to address ongoing trade matters within the confines of the bilateral tariff deal established last year. Yeo emphasized the need for resolution during a meeting with U.S. Trade Representative Jamieson Greer at the OECD Ministerial Council Meeting in Paris. The discussions come in light of the U.S.’s recent findings from the Section 301 probe on forced labor-related imports.
Yeo stressed the importance of handling not only the outcomes of the Section 301 investigation but also future trade disputes under the Korea-U.S. tariff agreement. The U.S. Trade Representative had proposed imposing tariffs on goods from 60 economies, including South Korea, for alleged non-compliance with bans on forced labor-produced goods. Yeo reiterated the commitment of both countries to uphold the terms of the trade deal.
As part of the tariff agreement finalized in late 2020, the U.S. agreed to reduce tariffs on South Korean imports from 25 percent to 15 percent in exchange for a significant investment pledge from Seoul. Yeo expressed the intention to collaborate closely with the U.S. to navigate any outstanding Section 301 procedures calmly and ensure a stable and positive management of bilateral trade issues.
In addition to the ongoing discussions, South Korea is also under a separate USTR investigation concerning perceived unfair trade practices related to production capacity, along with China, Japan, and other economies. The U.S. has been conducting these investigations to replace previous country-specific tariffs that were invalidated by the Supreme Court earlier this year. Section 301 empowers the USTR to investigate unfair trade practices on a country-specific basis.
