Washington: South Korean Foreign Minister Cho Hyun has communicated to his US counterpart, Marco Rubio, that Seoul is not intentionally delaying the legislative process required to fulfill its investment commitments under a bilateral trade agreement with Washington.
According to Anadolu Agency, Cho met with US Secretary of State Rubio in Washington during a ministerial meeting focused on critical minerals. The discussions took place amidst increasing pressure from the United States, following President Donald Trump's recent warning of potential tariff hikes.
Rubio expressed that while the relationship between South Korea and the U.S. is not currently strained, there is dissatisfaction within the U.S. regarding South Korea's implementation of trade-related commitments. Cho reaffirmed South Korea's commitment to implementing the trade deal and dismissed allegations that the parliamentary approval of a special investment bill had been intentionally delayed.
Cho emphasized that trade-related differences should not impede broader cooperation between the two countries, particularly in matters of security. He urged Rubio to facilitate sufficient consultations between U.S. government agencies and South Korea on key bilateral agreements concerning civil nuclear energy, nuclear-powered submarines, and shipbuilding.
The backdrop to these discussions includes President Trump's announcement last month of increased tariffs on South Korean goods. Trump accused the South Korean legislature of not approving a previously agreed trade deal, threatening to raise tariffs from 15% to 25% on autos, lumber, and pharmaceuticals. The tariff increase seems to be linked to a pending investment bill that South Korea's ruling Democratic Party plans to review and vote on, seeking bipartisan support from the opposition.
Last November, Seoul and Washington signed a memorandum of understanding, formalizing South Korea's $350 billion investment pledge, which was intended to lower US tariffs. The agreement stipulated that South Korea would invest $200 billion in cash installments, capped at $20 billion annually, and an additional $150 billion for bilateral shipbuilding cooperation. In exchange, Washington agreed to reduce reciprocal tariffs on South Korean imports to 15%, as agreed in July of the previous year.