Government Begins Consultations After USTR Announces Additional 12.5% Tariff

[Financial News]
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The government will begin consultations with the United States after the Office of the United States Trade Representative (USTR) signaled plans to impose an additional 12.5% tariff on South Korea.
\r\n The Ministry of Trade, Industry and Resources said in a press release on the 3rd that Trade Minister Yeo Han-koo will soon contact Jamieson Greer, the USTR representative, to discuss issues related to the announcement.
 Earlier, USTR released its report on the results of a Section 301 investigation into the import ban on products made with forced labor on the 2nd, Korea time. USTR decided to impose the additional 12.5% tariff, saying South Korea was not effectively enforcing measures that prohibit imports of goods produced through forced labor.
 South Korea was included among 46 economies subject to the same tariff rate, along with Japan, China, Australia, New Zealand, Singapore, India, and Vietnam. By contrast, 14 economies, including the European Union (EU), Canada, Mexico, and Taiwan, were assigned a 10% tariff rate because they were recognized as operating relevant domestic systems or, through trade agreements with the United States, having pledged to uphold the obligation to ban imports of goods made with forced labor.
 The measure comes about three months after USTR launched the investigation. However, items subject to Section 232 of the Trade Expansion Act of 1962 (Section 232), some minerals and raw materials not sufficiently produced in the United States, and certain aircraft and pharmaceuticals were excluded from the tariff.
 USTR plans to accept written comments until the 6th of next month and then hold a public hearing on the 7th to gather additional views from stakeholders.
\r\n The Ministry of Trade, Industry and Resources said it has submitted a written opinion stating that the Section 301 measure is inappropriate and unnecessary, and has continued to communicate with USTR through bilateral consultations and other channels. It added that it plans to respond actively to the procedures to ensure that the balance of benefits under the existing United States–Korea customs agreement is not undermined.
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aber@fnnews.com Park Ji-young Reporter