Tariffs & Trade Talks

[Anchor Lead]

The U.S. government says it will decide on whether or not to exempt Korean steel from impending import tariffs depending on the outcome of negotiations on amending its bilateral free trade agreement with South Korea. The U.S. Trade Representative said Washington hopes that Seoul will propose changes to the FTA that will gain Washington's support, and that it can postpone the tariffs until after the FTA talks are over.

[Pkg]

The United States has excluded Canada and Mexico from the list of countries subject to new steel tariffs. But this was done only on the precondition of successfully completing the renegotiation of the North American Free Trade Agreement. U.S. Trade Representative Robert Lighthizer said in his testimony to the House of Representatives that South Korea is in a similar situation as Canada and Mexico. That's because the renegotiations on the free trade pact between Korea and the U.S. are still in progress.

[Soundbite] Robert Lighthizer(U.S. Trade Representative)

The U.S. trade representative has made it clear that Washington is trying to obtain concessions in the renegotiations with Seoul by capitalizing on steel tariffs. The new U.S. tariffs on steel imports are to take effect on March 23 local time. However, Robert Lighthizer has said recently that the U.S. government might postpone imposing permanent steel tariffs on some countries until the trade talks are over. He made clear that the talks must be over by late April. The U.S. is above all looking for concessions in the auto sector in its free trade deal with South Korea. Observers say the Korean government could accept some of Washington's demands to avoid the steel tariffs. However, there are concerns that this may set a bad precedent, as Washington's trade pressure policy is likely to continue.