South Korea to Persist in Trade Barrier Negotiations with US
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Synopsis
The South Korean government intends to maintain negotiations with Washington concerning non-tariff measure issues prior to the announcement of U.S. reciprocal tariffs. This follows the release of the USTR's annual report on foreign trade barriers, which assesses South Korea favorably among U.S. trade partners.
Key Takeaways
- South Korea continues talks with the US on trade barriers.
- The USTR's report highlights 21 non-tariff barriers.
- 80% of tariffs eliminated under KORUS FTA.
- Digital trade and sanitary barriers are major concerns.
- Recent meetings held with US trade officials.
Seoul, April 1 (NationPress) The South Korean administration will persist in discussions with Washington regarding non-tariff measure challenges prior to the anticipated declaration of U.S. reciprocal tariffs, as stated by the industry ministry on Tuesday, shortly after the U.S. Trade Representative (USTR) unveiled its annual report concerning foreign trade barriers.
The government aims to address U.S. apprehensions regarding non-tariff measures through various channels of communication, including working-level consultative bodies and the implementation committee of the Korea-U.S. Free Trade Agreement (KORUS FTA), according to the Ministry of Trade, Industry and Energy, as reported by Yonhap news agency.
Earlier today, the USTR published the 2025 National Trade Estimate Report on Foreign Trade Barriers (NTE), which is anticipated to significantly influence the Donald Trump administration's upcoming announcement of country-specific reciprocal tariffs scheduled for Wednesday (U.S. time).
The ministry remarked that the report evaluated South Korea more favorably relative to other U.S. trade partners, highlighting that approximately 80 percent of tariffs on bilateral trade in industrial and consumer goods have been removed under the KORUS FTA.
The 2025 report identified a total of 21 non-tariff barriers in South Korea, an increase from the previous year but fewer in number compared to reports issued before 2023, the ministry clarified.
These 21 barriers included sanitary and phytosanitary restrictions on agricultural products, such as limitations on U.S. beef products from animals over 30 months old, and digital trade barriers, including network usage fees, proposals to regulate online platform operators to ensure fair competition, and limitations on exporting location-based data.
For the first time, the report also highlighted South Korea's defense offset trade program, which imposes certain conditions on foreign defense contractors for defense industrial collaboration when they participate in key government procurement projects.
The ministry noted that the latest NTE report reiterated many issues previously mentioned in last year's report and that efforts are ongoing to address Washington's concerns.
Earlier this year, Industry Minister Ahn Duk-geun and Trade Minister Cheong In-kyo visited Washington to engage with U.S. trade officials, including Commerce Secretary Howard Lutnick and USTR Jamieson Greer.
The government plans to conduct a thorough analysis of the NTE report to formulate response strategies while continuing its tariff negotiations with the U.S., the ministry stated.
