Seoul, Feb 9 South Korea's Foreign Minister Cho Hyun said Monday that US Trade Representative Jamieson Greer told him the United States will revert reciprocal tariffs to the pre-agreement level of 25 per cent if Seoul makes no progress on addressing non-tariff barriers.
Cho shared details with lawmakers of his meeting with Greer in Washington last week, as Seoul seeks to keep the trade deal with the ally intact following US President Donald Trump's warning of raising the tariff rate from 15 per cent, citing South Korea's slow legislative process.
"The US is seeking to raise tariffs on South Korea to reduce its trade deficit if there is no progress in talks with Seoul over non-tariff barriers," Cho said at a National Assembly session, Yonhap news agency reported.
Seoul has committed to investing US$350 billion in the US in exchange for Washington lowering the duty to 15 per cent. But Trump threatened to raise tariffs on South Korea as legislation to implement the trade deal has remained pending in the National Assembly since its introduction in late November.
Non-tariff barriers largely refer to South Korea's regulatory moves concerning digital platform services, like Google Inc., quarantine measures for agricultural imports, and certification requirements for autos, pharmaceuticals and other sectors.
Washington has expressed concerns that Seoul's push to tighten regulations on digital services is discriminatory and has called for easing existing requirements in agriculture and other sectors.
According to Cho, Greer pointed to sluggish progress on the investment pledge and noted that discussions on non-tariff issues have yet to take place despite US calls to move the deal forward.
"(He) told me that the US cannot spend much time on the South Korean market as (the US) has to discuss non-tariff barriers with other countries as well," Cho said.
"(He told me) that South Korea should understand the US is seeking to improve its trade deficit with South Korea through a tariff hike 'without any emotions attached' if no progress is made (in the trade deal)," Cho said, adding that Greer had asked Seoul to resolve the issue quickly.
Cho told lawmakers that the Cabinet members are taking the matter seriously and plan to take steps in a swift manner.
Cho also said Washington had confirmed a US delegation would visit South Korea later this month to negotiate expanding Seoul's rights to civil uranium enrichment and spent fuel reprocessing.
"I received confirmation from US Secretary of State Marco Rubio during our talks that an interagency US team would visit (South Korea) in February," Cho said.
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