South Korea and the United States have agreed to operate a working-level consultative body in five areas. This is the result of Minister of Trade, Industry and Energy Ahn Duk-geun's visit to the U.S. from 26th to 28th of last month, where he met with senior officials of the Trump administration.
한국과 미국이 다섯 개 분야에서 실무 협의체를 운영하기로 했다. 안덕근 산업통상자원부 장관이 지난달 26∼28일 방미해 미국 트럼프 2기 행정부 고위 당국자들과 잇달아 만난 성과다.
Minister Ahn said during a background briefing with reporters at the Government Sejong Convention Center on the 4th, "We will conduct working-level consultative bodies at the Director General level in five areas including tariffs, non-tariffs, shipbuilding, energy, and the Alaska project." The Ministry of Trade, Industry and Energy plans to start the consultative body with the U.S. Department of Commerce, Office of the United States Trade Representative (USTR), and the Energy Committee as early as next week and discuss various agendas on a daily basis through face-to-face and video conferences.
It is unusual for the U.S. to establish a working-level consultative body with South Korea in five areas. When the issue of the Inflation Reduction Act (IRA) arose in 2022, the government could establish only one consultative body with the Office of the United States Trade Representative (USTR) after strenuous efforts.
Minister Ahn noted, "Since the U.S. administration announced tariffs on semiconductors, bio, and automobiles, they have also announced tariff measures on wood and copper, leaving us uncertain about what else might be added to the tariff list in the future." He added, "We aim to create a channel for consultation to effectively communicate our position regarding new measures and to convey the opinions of the industry."
In response to a question about whether he heard the U.S. reply regarding the tariff request, he stated, "It’s not a one-off game; it’s ongoing like a marathon, so securing a channel to negotiate in favor of the industry is the top priority. The U.S. side did not provide an immediate answer to the tariff exemption request."
The Ministry of Trade, Industry and Energy sees the first task as dispelling misunderstandings about South Korea held by Howard Rutnick, U.S. Secretary of Commerce, and Jamieson Greer, representative of the U.S. Trade Representative (USTR), under the Trump administration. Minister Ahn commented, "Trump's senior officials perceive that 'China is South Korea’s cash cow' based on their experiences from the first term, and I want to emphasize that our advanced industries have invested significantly in the U.S. and that South Korea and the U.S. are jointly building an industrial ecosystem."
The Trump administration is tightening its stance on South Korea while expanding the scope of tariff measures on various countries, including Mexico, Canada, and China. President Trump directed on the 1st to investigate the impact of imported wood products on U.S. security, and White House officials pointed out that "China and South Korea have made sinks from U.S.-exported logs and are exporting them to the U.S."
The Ministry of Trade, Industry and Energy views 'imports of U.S. liquefied natural gas (LNG)' as a bargaining chip. Expanding long-term contracts for U.S. energy can reduce the trade deficit. Minister Ahn explained, "Currently, our country's energy supply is heavily skewed towards the Middle East, and imports of U.S. energy are important for energy security, so we are actively reviewing this." He added, "We are also considering ways for private businesses to diversify energy import channels."
Regarding U.S. participation in the Alaska LNG project development, the stance is to determine the position after discussions in the consultative body. Minister Ahn stated, "From the U.S. perspective, the Alaska LNG project is a high-priority project, and both the executive order and the Chairperson of the Energy Committee, along with the Secretary of Commerce, are actively overseeing this project, so we will present our position after specifically reviewing the situation through the working-level consultative body."
The Ministry of Trade, Industry and Energy plans to continue close consultations in the shipbuilding sector through the shipbuilding consultative body. Minister Ahn said, "The U.S. side expressed gratitude when I mentioned that if they could package MRO (maintenance, repair, and overhaul of military vessels), icebreakers, and tankers (energy transportation vessels), we would reflect this as much as possible in the priorities of Korean shipbuilders." He explained, "The U.S. recognizes the need to enhance naval power and shipbuilding capabilities at an inter-agency level and considers South Korea an important partner."