The United States is keen to finalize a trade deal with South Korea as soon as Seoul agrees to take appropriate commitments.
The two countries are still working to narrow their differences. South Korean President Lee Jae Myung and US President Donald Trump are expected to meet at Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju, South Korea.
The Summit is scheduled to be held from 31st October to 1st of next month.
The U.S. official reaffirmed the Trump administration’s interest in strengthening cooperation in shipbuilding with South Korea.
However, the trade deal has not yet taken effect as both sides continue talks to resolve key issues, including financing of investment package.
A senior official from the Trump administration said Friday that they hope Korea will accept U.S. demands in order to reach a swift conclusion to ongoing trade negotiations between the two countries.
During a press briefing ahead of U.S. President Donald Trump’s upcoming trip to Asia, the official was asked whether a trade agreement with Korea would be finalized during Trump’s visit to the country this week.
The official said the United States is eager to conclude a deal as quickly as possible, noting their hope that Korea would accept the terms that Washington considers appropriate.
The remarks suggest that Washington acknowledges unresolved differences in the bilateral trade talks, particularly regarding Korea’s investment package in the United States.
In July, Seoul and Washington reached a broad agreement for a trade deal that included a $350 billion investment by Korea. However, the two sides have struggled to narrow their differences over the composition and implementation of that package, raising doubts over whether the deal will be ready for announcement at the bilateral summit scheduled for Oct. 29.
During a Korean parliamentary audit on Friday, Industry Minister Kim Jung-kwan, who led the Korean delegation for the trade negotiations, confirmed that discussions are underway on a plan for Korea to invest $200 billion in cash over eight years — $25 billion annually.
The remaining $150 billion is to be arranged through credit guarantees and other instruments. “The two sides are sharply divided over what constitutes an appropriate level of cash investment,” Kim said.
In addition, the U.S. official reaffirmed that Trump is seeking cooperation with Korea to help rebuild America’s shipbuilding industry.
The official said Washington welcomes Korean capital, expertise and general cooperation in helping to restore American manufacturing, defense industries, shipbuilding and submarine construction