Trump administration officials will meet with South Korea’s top trade negotiator this week in an effort to finalize details of a trade deal agreed to in July.
Trade Minister Yeo Han-koo on Monday was headed to the U.S. for talks with U.S. Trade Representative Jamieson Greer to discuss the tentative pact, which includes tariffs and Seoul’s planned $350-billion investment fund to underwrite shipbuilding, manufacturing and other development in the U.S.
The investment was announced when South Korean President Lee Jae-myung met with President Donald Trump at the White House in late August.
Officials in Seoul have indicated that discussions are being held up because the conditions set in a similar trade agreement between Japan and the U.S. are deemed unacceptable by South Korea, primarily due to their potential impact on the foreign exchange market.
During Lee’s visit, conglomerate Hanwha Group (KSE: 0000J0.KS) announced it would spend $5 billion to expand its Philadelphia shipyard, and ordered 10 gas tankers. Seoul earlier pledged to invest a total of $150 billion in U.S. shipbuilding.
The shuttle diplomacy comes just after a five-day visit by Industry Minister Kim Jung-kwan, who met with U.S Commerce Secretary Howard Lutnick. There was speculation that negotiations were deadlocked after Kim revealed little except that talks were continuing.
Relations between the trade partners were shaken Sept. 4 when Immigration and Customs Enforcement raided a Hyundai (KSE: 005380.KS) battery factory in Georgia, arresting hundreds of South Korean nationals.
Trump later said that the U.S. welcomed foreign specialists on a temporary basis to help train Americans in industries such as shipbuilding and computer chips.
Find more articles by Stuart Chirls here.
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