The U.S. pushed for greater market access for its industrial goods in South Korea as the two countries, currently at odds over recently imposed tariffs, wrapped up talks to rework their existing free trade agreement.
The two countries completed the second round of talks, aimed at amending the United States-Korea Free Trade Agreement, which ran Jan. 31-Feb. 1 in Seoul. The talks followed the Trump administration's decision to impose tariffs on South Korean washers and solar panels, which set the stage for more friction in the trade talks.
U.S. Trade Representative Robert Lighthizer said in a Feb. 1 news release that the discussions focused on U.S. proposals to reduce its trade deficit in autos and auto parts as well as concerns that exports of U.S. goods and services have been "hindered" in the Asian nation.
Lighthizer did not state whether the two sides discussed the new U.S. tariffs on washer tariffs and solar panels.
President Donald Trump on Jan. 22 approved a recommendation by the U.S. International Trade Commission to impose a tariff of up to 50% on certain large residential washer imports, including those produced by South Korean companies Samsung Electronics Co. Ltd. and LG Electronics Inc. On Jan. 22, the same day he approved the washer tariffs, Trump also approved a safeguard tariff on imports of solar panels of up to 30%.
In response, South Korea filed a complaint with the World Trade Organization, citing inconsistencies with the safeguard measures, as well as a separate complaint regarding the U.S. tariffs on solar panels.
The meeting marked the second round of talks to rework the trade deal, which went into effect under the Obama administration in 2012. The first round was held Jan. 5 in Washington.
Lighthizer said in the release that "both sides anticipate setting dates in the near future" for further talks to be held in Washington.
But he did not specify when the next round of talks would be held, and trade representative spokeswoman Emily Davis declined to comment further on the status of U.S.-South Korea trade relations when contacted by S&P Global Market Intelligence.
"These negotiations are an example of the Trump administration's commitment to making trade deals fair and reciprocal," Lighthizer said in the news release, drawing on a phrase Trump used in his State of the Union address on Jan. 30. "We must build on these negotiations with substantive and expeditious progress that will benefit the American people. In every trade relationship, the United States will stand up for U.S. workers and manufacturers, especially those facing serious injury or harm by unfair trade practices."
Trump touched lightly on trade in his State of the Union address, stating that the U.S. will "work to fix bad trade deals and negotiate new ones" in part by strong enforcement of trade rules, but he did not specifically mention South Korea. His administration has cited a $27.6 billion deficit as of 2016 with South Korea, as well as blocked market access for American exports as a result of the trade deal.
South Korea's Ministry of Trade, Industry, and Energy had no public comment following the conclusion of talks and could not be reached for comment Feb. 1.
