Essay Example on South Korean Trade Minister Kim Hyun

The bilateral alliance is particularly strong due to the military partnership amid the North Korean nuclear threat he told Bloomberg Law Pickup Tariffs A Moot Demand As in NAFTA autos are a key sticking point for the U S in KORUS talks Autos formed 18 8 billion of the U S s 28 billion goods trade deficit with South Korea in 2016 according to Office of U S Trade Representative data In addition Washington reportedly wants to require Korean automakers to use more American made parts in cars sold in the country Both countries have raised various issues such as automobiles The negotiations have just begun and it will be hard to make predictions but it will not be smooth Minister Kim said As a counteroffer Seoul requested amendments to the investor state dispute settlement ISDS scheme which allows private companies to sue governments Yoo said Cho said it would not be a large sacrifice for the U S to consider it as an item for compromise for its demands on the auto sector The U S wants to maintain a 25 percent tariff on Korean pickup trucks which will be phased out from 2019 according to a Reuters report But Korea s main automakers Hyundai Motor Group and Kia Motors do not even sell pickup trucks in the U S noted Koo Hee cheol director of industry research at the Korean Automobile Manufacturers Association Hyundai revealed its Santa Cruz small pickup concept in 2015 but is still assessing U S demand spokeswoman Seonjin Cha told Bloomberg Law Local automakers also believe Washington wants to increase the limit of 25 000 vehicles per U S automaker that are exempt from South Korea s stricter emissions regulations But no U S companies approach that cap Koo noted Koo said automakers are more concerned about inroads into the U S than defending the local market If the level of competitiveness is not maintained in the global market it is extremely difficult to survive in this system We need to approach our competition with this in mind Koo told Bloomberg Law