MARKET Business Insider

South Korea and the U.S. Reach Consensus on ‘July Package’ for Tariff Abolition

by admin on | 2025-04-26 10:48:20

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 95

---

South Korea and the United States took a significant step toward strengthening their trade partnership on April 24, as senior officials from both governments gathered in Washington, D.C. for a high-level 2+2 trade consultation. The talks involved South Korean Deputy Prime Minister and Finance Minister Choi Sang-mok, Trade Minister Ahn Duk-geun, U.S. Secretary of the Treasury Scott Bessent, and U.S. Trade Representative Jamieson Greer.

The two nations agreed to develop a comprehensive trade framework called the "July Package," which aims to eliminate U.S. tariffs on Korean goods and boost bilateral cooperation in industry, investment, economic security, and currency policy. The initiative is scheduled to unfold between South Korea’s presidential election on June 3 and early July, ahead of the July 8 expiration of the U.S. reciprocal tariff suspension.

Deputy Prime Minister Choi emphasized the urgency of concluding the agreement before that deadline, and underscored South Korea’s political timeline, asking for U.S. understanding to ensure smooth negotiations. The July Package builds on the foundation of previous trade accords, most notably the KORUS Free Trade Agreement, which has governed U.S.-Korea trade since 2012.

As part of the agreed path forward, working-level negotiations between South Korea’s Ministry of Trade, Industry and Energy and the U.S. Trade Representative’s Office will begin shortly. U.S. Trade Representative Greer is also scheduled to visit Korea in mid-May for the APEC Trade Ministers’ Meeting, providing an opportunity for continued high-level dialogue.

Currency policy, a key issue in trade competitiveness, will be discussed separately between Korea’s Ministry of Economy and Finance and the U.S. Treasury Department. These discussions are expected to play a critical role in shaping a balanced agreement.

Following the consultation, U.S. officials expressed optimism about the progress. Treasury Secretary Bessent described the meeting as “very successful,” noting that negotiations are advancing more quickly than expected. He praised South Korea’s proactive and well-prepared approach, saying they “came with their A game” and were ready with concrete proposals.

Bessent’s remarks suggest that the U.S. may be taking a broader strategy of accelerating preliminary trade deals with multiple partners, as seen recently in ongoing talks with India. While technical details of the U.S.-Korea agreement are still being finalized, the framework is expected to address core trade elements such as tariffs, quotas, intellectual property rights, and regulatory standards.

The April 24 meeting marks a pivotal moment in U.S. Korea economic relations, laying the groundwork for a potentially transformative agreement in the coming weeks.