South Korea, US edge closer to US$350 billion trade deal breakthrough: ‘gap has narrowed’
Top Seoul officials have flown to Washington in a sign that major progress is being made in the tough trade talks
Kim Yong-bum, policy chief of the presidential staff, and Industry Minister Kim Jung-kwan left for Washington on Thursday to join Finance Minister Koo Yun-cheol and Trade Minister Yeo Han-koo.
The delegation plans to meet US counterparts to finalise details of South Korea’s US$350 billion investment commitment under a bilateral trade deal struck in July.
Talks have stalled over how the massive investment package would be structured, how profits would be shared and other key conditions.
Seoul has also expressed concern that such a large-scale direct investment could push the country towards a financial crisis and asked for a dollar-swap arrangement with the US. Washington initially rejected the request, which Seoul says is vital to cushion the impact on the won as it seeks to fulfil the US$350 billion pledge.
“The two countries have reportedly found a way to avoid depleting South Korea’s foreign exchange reserves by allowing Seoul to use its own currency to invest in the United States,” Hur Jung, an economics professor at Sogang University, told This Week in Asia.