【By Observer Net, Chen Sijia】U.S. President Trump has started his Asia tour and is expected to arrive in South Korea on October 29th to attend the Asia-Pacific Economic Cooperation (APEC) Summit and meet with South Korean President Lee Jae-myung. On the afternoon of the 24th, while traveling to Asia on Air Force One, Trump told the media that the U.S.-South Korea trade negotiations are "very close to reaching an agreement".

However, South Korean officials believe the South Korea-U.S. trade negotiations still need more time. According to a report by Yonhap News Agency on the 27th, Wu Hyun-joo, the third director of the National Security Office, said at a press conference that considering the progress of the tariff negotiations between South Korea and the United States, it is difficult for both sides to finalize the agreement during the APEC Summit.

Wu Hyun-joo stated that the South Korean government does not regard the APEC Summit or the meeting between the leaders of South Korea and the United States as a deadline for the negotiations. In the negotiations, the South Korean side pays more attention to factors such as commercial rationality and benefits for the South Korean economy. When asked if South Korea would give up signing the agreement under unfavorable circumstances, Wu Hyun-joo replied that South Korea does not want the negotiations to collapse and the negotiation team will strive to reach an agreement until the last moment.

South Korean President Lee Jae-myung said on the 24th in an interview with Bloomberg that there are differences between the two countries regarding the $350 billion investment plan, and the two countries may not be able to finalize the agreement during Trump's visit to South Korea.

Lee Jae-myung said, "The methods of investment, the amount of investment, the timetable, and how we share losses and distribute dividends - all these are the points of contention. The United States certainly will try to achieve its maximum benefit, but this must not cause disastrous consequences for South Korea."

Lee Jae-myung told Bloomberg that the two countries are still negotiating, but a delay does not necessarily mean the failure of the negotiations. "South Korea is the United States' ally and partner, so we believe we can reach a reasonable result acceptable to all parties."

According to Reuters, U.S. Treasury Secretary Becerra also said on the 27th that it is unlikely for the United States to finalize a trade agreement with South Korea during Trump's visit to South Korea.

October 24, U.S. President Trump flew to Asia on "Air Force One" Visual China

On July 31st, Trump had posted that the U.S. had reached a "comprehensive and complete" trade agreement with South Korea. The U.S. agreed to reduce the 25% tariff on imports from South Korea to 15%, but required South Korea to invest $35 billion in the U.S. However, there are differences between the two countries on the specific investment plan. Trump required South Korea to make a full direct investment of $35 billion, while the South Korean government proposed a combination of direct investment, loans, and guarantees.

According to a report by the JoongAng Daily, Kim Yong-bum, the director of the Policy Office of the South Korean Presidential Office, held talks with U.S. Commerce Secretary Rutenberg in Washington on October 22nd. Kim Yong-bum said after the meeting that the trade negotiations have made "some progress," but have not yet entered the "final stage." He emphasized that the APEC Summit to be held in South Korea at the end of this month is an "important occasion."

The Hankyoreh reported that the U.S. proposed a plan to pay $20 billion over eight years, requiring South Korea to pay $2.5 billion annually, and the remaining $15 billion to be executed in the form of credit guarantees. However, the South Korean side believes that any plan requiring annual payments exceeding $1.5 billion is unacceptable for maintaining the stability of the foreign exchange market.

In addition, the South Korean side is also concerned that even if the U.S. and South Korea eventually reach a trade agreement in some way, the possibility of the U.S. imposing tariffs on individual products in the future still exists.

The U.S. has already imposed a 50% tariff on all imported steel and aluminum and their derivatives. Yonhap News Agency reported that in July this year, the value of South Korean steel exports to the U.S. was $280 million, a decrease of 26% compared to the previous year, indicating that South Korea has already been substantially affected by the tariffs. If the U.S. imposes high tariffs on South Korea's main products, semiconductors, it will severely impact South Korea's exports.

The U.S. Department of Commerce is investigating the impact of the import of semiconductors, semiconductor manufacturing equipment, and their derivatives on national security. The original scheduled release of the investigation results in August has not been published. Trump has repeatedly threatened to impose a 100% tariff on semiconductors.

Some opinions believe that as long as the domestic artificial intelligence industry investment boom in the U.S. continues, the possibility of imposing a 100% tariff on semiconductors is not great. However, Professor Choi Byung-ho from the Economics Department of Pusan National University warned, "Before the final agreement is signed, nothing can be certain. Just like the outcome document of the previous South Korea-U.S. summit, there is always uncertainty before signing, and the issue of tariff items is no different."

This article is an exclusive contribution from Observer Net. Reproduction without permission is prohibited.

Original: https://www.toutiao.com/article/7565866208286655011/

Statement: This article represents the personal views of the author. Welcome to express your attitude by clicking on the [Up/Down] buttons below.