President Donald Trump may use the summit with counterpart Lee Jae Myung to seek more concessions on defence costs and corporate investments, left out of the deal, while non-tariff barriers and currency could prove thorny issues, experts said.
The absence of a written agreement underpinning last week’s talks could open the way for disputes, with some differences already emerging in the two sides’ accounts of the deal.
“Even a binding deal like the FTA has been efficiently scrapped,“ warned Choi Seok-young, a former chief negotiator for the Korea-U.S. free trade deal, signed in 2007. “And this is just promise.”
But Japan struck a deal with the United States sooner than expected, spurring South Korea into a scramble for a trade-focused pact, leaving issues of security and investment for the coming summit, presidential adviser Kim Yong-beom said.
The allies face challenges in ironing out details of the fund at upcoming working-level talks, South Korean Finance Minister Koo Yun-cheol told reporters on Friday.
In a social media post, Commerce Secretary Howard Lutnick gave an assurance of “90% of the profits going to the American people”, while White House spokesperson Karoline Leavitt said part would go to the U.S. government to help repay debt.
‘POLITICAL RHETORIC’
South Korea had added a safety mechanism to reduce financing risk, including U.S. commitments to buy products from the projects, under an “offtake” clause and invest in commercially feasible projects, he said.
The specifics of the structure have not been determined, said Kim, adding that loans and guarantees make up a majority of the funds, with equity investments accounting for a small part.
But South Korea said repeatedly there had been no agreement on the agriculture market, including beef and rice, despite strong pressure from Washington.
Other non-tariff barriers such as regulation of Big Tech could be hurdles.
Defence costs are expected to emerge as a key issue during the upcoming summit, with Trump having long said South Korea needed to pay more for the U.S. troop presence there.
The allies are holding working level-talks on currency policy, put on the agenda at April’s opening round of trade talks. - Reuters
Hence then, the article about south korea us summit faces unresolved trade deal disputes was published today ( ) and is available on Daily Sun ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( South Korea-US summit faces unresolved trade deal disputes )
Also on site :