Seoul, July 24 (IANS) The South Korean government said on Friday that the United States has reaffirmed its commitment to honouring the existing Seoul-Washington tariff agreement regarding newly announced Section 301 tariffs on trading partners.
“We have requested that the U.S. side comply with the Korea-U.S. trade agreement,” said the Ministry of Trade, Industry and Resources in a statement, referring to the tariff agreement reached last year that set reciprocal tariffs on South Korean goods at 15 percent.
“The U.S. side also reaffirmed its position that the existing trade agreement must be upheld,” it added, reports Yonhap news agency.
Washington announced overnight a set of new forced-labor tariffs on imports from 60 trade partners, ranging from 10 percent to 12.5 percent, effective Friday (U.S. time), under Section 301 of the 1974 Trade Act.
The new tariffs were announced after temporary 10 percent worldwide tariffs expired Friday, following the Supreme Court’s decision in February to strike down the Trump administration’s reciprocal tariffs.
Under the new scheme, South Korea is subject to 12.5 percent tariffs along with Japan and Switzerland.
The trade ministry expects the U.S. announcement to ease the uncertainty surrounding U.S. tariff measures, following the Supreme Court’s ruling.
The ministry said during bilateral talks ahead of the announcement, Korean officials, including Industry Minister Kim Jung-kwan, emphasised that Section 301 tariffs must not exceed 15 percent in compliance with the Seoul-Washington tariff agreement.
South Korea exported US$122.9 billion to the United States and imported $73.4 billion last year, making the U.S. South Korea’s second-largest trading partner.
“As the Section 301 investigation into overproduction is still ongoing, the government will actively respond to the investigation process,” said the ministry. “We will also continue close consultations with the U.S. side to ensure the balance of interests secured through the existing Korea-U.S. tariff agreement.”
—IANS
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