SEOUL, South Korea (AP) — South Korea has agreed to further open its auto market to the United States as the two countries reached an agreement in principle on amending their six-year-old free trade agreement, its top trade negotiator said Monday.

South Korea's Trade Minister Kim Hyun-chong said the United States will lift tariffs on South Korean-made pick-up trucks in 2041 instead of 2021. It will also be able to export 25,000 additional American vehicles to South Korea without having to comply with domestic regulations. South Korea will ease emission standards for American cars shipped from 2021-2025 when the Asian country sets new import regulations.

Kim said South Korea also won an exemption from import tariffs on steel products. The third-largest steel exporter to the United States after Canada and Brazil, South Korea was on the list of 12 countries U.S. President Donald Trump recently said would be hit with heavy tariffs on their exports of steel and aluminum products to the U.S.

The South Korean announcement came hours after President Donald Trump said the United States is on the verge of amending its trade agreement with South Korea.

The president told reporters at a Friday news conference that trade deals are being made with various countries and then highlighted South Korea, a key economic and national security partner in Asia. The United States ran a $10.3 billion trade deficit with South Korea last year.

After Trump's remarks, Commerce Secretary Wilbur Ross said he hoped a final agreement with Seoul would be announced next week.

The free trade pact between the United States and South Korea went into effect in 2012.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. </s> SEOUL (Reuters) - South Korea’s trade ministry said on Friday it is talking to the United States about its steel exports and will keep up its outreach until U.S. President Donald Trump formally announces proposed tariffs on imported steel and aluminum products.

Trump on Thursday announced his administration would impose a 25 percent tariff on imported steel and a 10 percent on imported aluminum to protect U.S. producers.

South Korea is the third-largest steel exporter to the United States after Canada and Brazil.

“Until the U.S. government makes a final decision, we will actively seek outreach activities toward the United States,” South Korea’s trade ministry said in a statement.

South Korean trade minister Kim Hyun-chong has been in the United States since Feb. 25, the ministry said. Kim has met U.S. Commerce Secretary Wilbur Ross and other officials to raise concerns over the so-called Section 232 probe and consider a plan that would minimize the damage to South Koran companies.

Shares of South Korean steelmaker Posco fell more than 3 percent on Friday to a four-week low.

Trump is expected to formally announce the tariffs measure next week. </s> SEOUL (Reuters) - The United States and South Korea agreed to revise a trade pact sharply criticized by U.S. President Donald Trump, Seoul said on Monday, with U.S. automakers winning improved market access and Korean steelmakers hit with quotas but avoiding hefty tariffs.

The planned changes in the U.S.-Korea Free Trade Agreement (KORUS) were seen as limited, leaving South Korea’s key passenger car exports untouched and helping soothe fears that Trump’s tough approach could start a spiraling global trade war.

In April, Trump told Reuters he would either renegotiate or terminate what he called a “horrible” trade deal that has doubled the U.S. goods trade deficit with South Korea since 2012.

Asian shares steadied on Monday, stemming last week’s hefty losses after Trump’s action on steel and aluminum, and his plans to slap tariffs on up to $60 billion in Chinese goods.

The agreement means South Korea will be forced to cut its steel exports to the U.S. by 30 percent of the past three years’ average, in exchange for becoming the first U.S. ally to receive an indefinite exemption on steel tariffs imposed by Trump.

“We had heated discussions,” South Korean Trade Minister Kim Hyun-chong said at a media briefing in Seoul. “The latest agreement removed two uncertainties,” he said, referring to steel tariff exemptions and KORUS renegotiation.

The U.S. Trade Representative’s office in Washington did not respond on Monday morning to requests for comment on the announcements in Seoul. But White House trade adviser Peter Navarro told CNBC television, “It looks like we’re going to have a very, very good result” from the negotiations with South Korea.

Last week, Trump temporarily excluded six trade partners, including Canada, Mexico and the European Union from import duties of 25 percent on steel and 10 percent on aluminum, which came into effect on Friday.

South Korea has received a quota of about 2.68 million tonnes of steel exports, or 70 percent of the annual average Korean steel exports to the United States between 2015-2017, which will be exempt from the new tariffs, the ministry said in a statement.

South Korea is not allowed to export steel products exceeding that quota to the U.S. market, a ministry official said.

“This leaves a bad precedent of exchanging steel tariffs - which is a breach of international trade law - for a legitimate free trade agreement, in negotiations,” said Wonmog Choi, professor of law at Ewha Womans University.

South Korea is the third-largest steel exporter to the United States and the world’s top importer of Chinese steel, leading to concerns it was a conduit for China’s excess capacity.

Trump was elected in 2016 after promising to punish what he saw as unfair trade practices by other countries, particularly China.

While Trump was adamant the KORUS deal needed renegotiating, the trade spat risked undermining relations between Seoul and Washington at a crucial time, as Washington and Seoul work closely to try to contain a nuclear-armed North Korea.

“We are at a time when U.S.-South Korea cooperation is needed more than ever ahead of the inter-Korean summit and the summit between North Korea and the United States,” said a senior official at South Korea’s presidential Blue House, who was not authorized to speak to media.

South Korean officials said that while the deal agreed was the best they could hope for, further pressure on trade was likely under Trump’s presidency.

Shares in South Korean steelmakers rallied on Monday, with Dongbu Steel leading gains as tariff exemptions were confirmed.

U.S. shares also climbed on Monday after steep falls last week as fears of a U.S.-China trade war eased on news that U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer were negotiating to resolve difference with their Chinese counterparts.

As part of the KORUS revision, the countries agreed to extend U.S. tariffs on Korean pickup trucks by 20 years until 2041.

No South Korean automakers currently export pickup trucks to the United States, but Hyundai Motor said last year it planned to launch a model there to catch up with a shift away from sedans.

Hyundai said on Monday it was “too early to elaborate on the details such as the estimated timing of the model release and production location”. Its shares fell 1.3 percent.

Under KORUS revisions, U.S. automakers will be able to bring into South Korea 50,000 vehicles per automaker per year that meet U.S. safety standards, not necessarily Korean standards, up from 25,000 vehicles previously.

Kim said no automakers previously exceeded the 25,000-vehicle threshold. Ford Motor Co and General Motors each shipped fewer than 10,000 vehicles last year.

“I don’t see a high chance of automakers expanding U.S. imports,” he said. </s> SEOUL (Reuters) - The United States and South Korea agreed to revise a trade pact sharply criticized by U.S. President Donald Trump, Seoul said on Monday, with U.S. automakers winning improved market access and Korean steelmakers hit with quotas but avoiding hefty tariffs.

The planned changes in the U.S.-Korea Free Trade Agreement (KORUS) were seen as limited, leaving South Korea's key passenger car exports untouched and helping soothe fears that Trump's tough approach could start a spiraling global trade war.

In April, Trump told Reuters he would either renegotiate or terminate what he called a "horrible" trade deal that has doubled the U.S. goods trade deficit with South Korea since 2012.

Asian shares steadied on Monday, stemming last week's hefty losses after Trump's action on steel and aluminum, and his plans to slap tariffs on up to $60 billion in Chinese goods.

The agreement means South Korea will be forced to cut its steel exports to the U.S. by 30 percent of the past three years' average, in exchange for becoming the first U.S. ally to receive an indefinite exemption on steel tariffs imposed by Trump.

"We had heated discussions," South Korean Trade Minister Kim Hyun-chong said at a media briefing in Seoul. "The latest agreement removed two uncertainties," he said, referring to steel tariff exemptions and KORUS renegotiation.

The U.S. Trade Representative's office in Washington did not respond on Monday morning to requests for comment on the announcements in Seoul. But White House trade adviser Peter Navarro told CNBC television, "It looks like we're going to have a very, very good result" from the negotiations with South Korea.

Last week, Trump temporarily excluded six trade partners, including Canada, Mexico and the European Union from import duties of 25 percent on steel and 10 percent on aluminum, which came into effect on Friday.

South Korea has received a quota of about 2.68 million tonnes of steel exports, or 70 percent of the annual average Korean steel exports to the United States between 2015-2017, which will be exempt from the new tariffs, the ministry said in a statement.

South Korea is not allowed to export steel products exceeding that quota to the U.S. market, a ministry official said.

"This leaves a bad precedent of exchanging steel tariffs - which is a breach of international trade law - for a legitimate free trade agreement, in negotiations," said Wonmog Choi, professor of law at Ewha Womans University.

South Korea is the third-largest steel exporter to the United States and the world's top importer of Chinese steel, leading to concerns it was a conduit for China's excess capacity.

Trump was elected in 2016 after promising to punish what he saw as unfair trade practices by other countries, particularly China.

While Trump was adamant the KORUS deal needed renegotiating, the trade spat risked undermining relations between Seoul and Washington at a crucial time, as Washington and Seoul work closely to try to contain a nuclear-armed North Korea.

"We are at a time when U.S.-South Korea cooperation is needed more than ever ahead of the inter-Korean summit and the summit between North Korea and the United States," said a senior official at South Korea's presidential Blue House, who was not authorized to speak to media.

South Korean officials said that while the deal agreed was the best they could hope for, further pressure on trade was likely under Trump's presidency.

Shares in South Korean steelmakers rallied on Monday, with Dongbu Steel leading gains as tariff exemptions were confirmed.

U.S. shares also climbed on Monday after steep falls last week as fears of a U.S.-China trade war eased on news that U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer were negotiating to resolve difference with their Chinese counterparts.

As part of the KORUS revision, the countries agreed to extend U.S. tariffs on Korean pickup trucks by 20 years until 2041.

No South Korean automakers currently export pickup trucks to the United States, but Hyundai Motor said last year it planned to launch a model there to catch up with a shift away from sedans.

Hyundai said on Monday it was "too early to elaborate on the details such as the estimated timing of the model release and production location". Its shares fell 1.3 percent.

Under KORUS revisions, U.S. automakers will be able to bring into South Korea 50,000 vehicles per automaker per year that meet U.S. safety standards, not necessarily Korean standards, up from 25,000 vehicles previously.

Kim said no automakers previously exceeded the 25,000-vehicle threshold. Ford Motor Co and General Motors each shipped fewer than 10,000 vehicles last year.

"I don't see a high chance of automakers expanding U.S. imports," he said. </s> SEOUL (Reuters) - The United States and South Korea agreed to revise a trade pact sharply criticized by U.S. President Donald Trump, Seoul said on Monday, with U.S. automakers winning improved market access and Korean steelmakers hit with quotas but avoiding hefty tariffs.

The planned changes in the U.S.-Korea Free Trade Agreement (KORUS) were seen as limited, leaving South Korea’s key passenger car exports untouched and helping soothe fears that Trump’s tough approach could start a spiraling global trade war.

In April, Trump told Reuters he would either renegotiate or terminate what he called a “horrible” trade deal that has doubled the U.S. goods trade deficit with South Korea since 2012.

Asian shares steadied on Monday, stemming last week’s hefty losses after Trump’s action on steel and aluminum, and his plans to slap tariffs on up to $60 billion in Chinese goods. [MKTS/GLOB]

The agreement means South Korea will be forced to cut its steel exports to the U.S. by 30 percent of past three years’ average, in exchange for becoming the first U.S. ally to receive an indefinite exemption on steel tariffs imposed by Trump.

“We had heated discussions,” South Korean Trade Minister Kim Hyun-chong said at a media briefing in Seoul. “The latest agreement removed two uncertainties,” he said, referring to steel tariff exemptions and KORUS renegotiation.

Last week, Trump temporarily excluded six trade partners, including Canada, Mexico and the European Union from higher U.S. import duties on steel and aluminum which came into effect on Friday.

South Korea has received a quota of about 2.68 million tonnes of steel exports, or 70 percent of the annual average Korean steel exports to the United States between 2015-2017, which will be exempt from the new tariffs, the ministry said in a statement.

South Korea is not allowed to export steel products exceeding that quota to the U.S. market, a ministry official said.

“This leaves a bad precedent of exchanging steel tariffs - which is a breach of international trade law - for a legitimate free trade agreement, in negotiations,” said Wonmog Choi, professor of law at Ewha Womans University.

South Korea is the third-largest steel exporter to the United States and the world’s top importer of Chinese steel, leading to concerns it was a conduit for China’s excess capacity.

Trump was elected in 2016 after promising to punish what he saw as unfair trade practices by other countries, particularly China.

While Trump was adamant the KORUS deal needed renegotiating, the trade spat risked undermining relations between Seoul and Washington at a crucial time, as Washington and Seoul work closely to try to contain a nuclear-armed North Korea.

“We are at a time when U.S.-South Korea cooperation is needed more than ever ahead of the inter-Korean summit and the summit between North Korea and the United States,” said a senior official at South Korea’s presidential Blue House, who was not authorized to speak to media.

South Korean officials said that while the deal agreed was the best they could hope for, further pressure on trade was likely under Trump’s presidency.

“If President Trump becomes a two-term president ... I believe there will be continuous (trade) risks during that time,” Trade Minister Kim said.

Shares in South Korean steelmakers rallied on Monday, with Dongbu Steel (016380.KS) leading gains as tariff exemptions were confirmed.

South Korea’s steel association said in a statement it was a “relief” that South Korea has been excluded from U.S. steel tariffs, but regrettable it was unable to secure higher quotas.

As part of the KORUS revision, the countries agreed to extend U.S. tariffs on Korean pickup trucks by 20 years until 2041.

No South Korean automakers currently export pickup trucks to the United States, but Hyundai Motor (005380.KS) said last year it planned to launch a model there to catch up with a shift away from sedans.

Hyundai said on Monday it was “too early to elaborate on the details such as the estimated timing of the model release and production location”. Its shares fell 1.3 percent.

Under KORUS revisions, U.S. automakers will be able to bring into South Korea 50,000 vehicles per automaker per year that meet U.S. safety standards, not necessarily Korean standards, up from 25,000 vehicles previously.

Kim said no automakers previously exceeded the 25,000-vehicle threshold. Ford Motor Co (F.N) and General Motors (GM.N) each shipped fewer than 10,000 vehicles last year.

“I don’t see a high chance of automakers expanding U.S. imports,” he said.

Kim Jong-hoon, a former chief negotiator for the KORUS FTA, said South Korea had fared relatively well in negotiations.

“South Korea gave concessions in autos in return for steel tariff exemptions,” he told Reuters. “This is not a free trade, but a managed trade.” </s> South Korea signed a free trade deal with five Central American countries on Wednesday, even as Seoul and Washington spar over their existing FTA.

Trade Minister Kim Hyun-chong signed the pact with economic ministers from Costa Rica, El Salvador, Honduras, Nicaragua and Panama, said a spokeswoman for the Seoul ministry.

The treaty, which will take effect in each country as it ratifies it, will also provide the world's 11th-largest economy with a "third route" to the US in the face of mounting trade protectionism in Washington, it said.

South Korea and the US have their own free trade agreement, known as KORUS, but have begun talks on renegotiating it at Washington's demand.

US President Donald Trump has repeatedly condemned the pact as a "horrible deal" and a "disaster", and the two allies are at loggerheads over tariffs on steel, washing machines and other goods imposed by Washington in recent weeks.

South Korea's economy is heavily dependent on international trade and the Central American pact will help it export more products such as cars, iron and steel, home appliances and textiles to the region, the trade ministry statement said.

It ran a surplus of nearly $1.9 billion with the five Central American countries last year, according to figures from South Korean trade body KITA, with exports of $2.2 billion and imports worth $333 million.

The agreement came after 32 months of talks to ease tariffs and lower barriers with six central American countries, although Guatemala decided to stay outside the deal for now. </s> South Korea agrees to further open auto market to US

SEOUL, South Korea (AP) — South Korea has agreed to further open its auto market to the United States as the two countries prepare to amend their six-year-old free trade agreement, its top trade negotiator said Monday.

South Korea's Trade Minister Kim Hyun-chong said the United States will end tariffs on South Korean-made pick-up trucks in 2041 instead of 2021. Each American carmaker will also be able to export 25,000 additional vehicles to South Korea each year without having to comply with domestic safety regulations. South Korea also will ease emission standards for American cars shipped from 2021-2025, when the Asian country is due to set new import regulations.

Kim said South Korea also won an exemption from increased import tariffs on steel products. The third-largest steel exporter to the United States after Canada and Brazil, South Korea was among 12 countries whose exports of steel and aluminum U.S. President Donald Trump recently said would be hit with heavy tariffs. But South Korea's steel tariff exemption is subject to a quota of about 2.7 million tons of steel products a year, about 74 percent of its exports in 2017.

The agreements in principle were announced Monday just hours after Trump said the United States was on the verge of amending its trade agreement with South Korea, which took effect in 2012. They came as a relief to South Korean industries, although the steel companies said they had wanted a larger quota of tariff-free exports to the United States.

The auto sector is among the most contentious issues in South Korea's trade dealings with the U.S. The Korean Automobile Manufacturers Association praised the government's efforts to protect South Korean automakers and avoid major changes on sensitive issues such as adjusting tariffs.

The revised agreement appears like significant concessions by South Korea but is expected to have little impact on its exports to the United States or its domestic auto market. No local auto companies export pick-up trucks made in South Korea to the United States, according to Kim.

While U.S. carmakers will be able to ship 50,000 cars to South Korea annually, 25,000 more than before, without being subject to domestic safety regulations no American car brand sold more than 10,000 vehicles in South Korea last year.

South Korean negotiators managed to avoid changes in treatment of its agriculture sector, a highly sensitive area in domestic politics.

The two allies started working on amending the free trade pact in August after Trump blamed the arrangement for causing the U.S. trade deficit with South Korea.

The president told reporters at a Friday news conference that trade deals are being made with various countries and then highlighted South Korea, a key economic and national security partner in Asia. The United States ran a $10.3 billion trade deficit with South Korea last year.

While the United States posted a trade surplus of $10.7 billion with South Korea in the services sector, it recorded a goods trade deficit of $27.7 billion in 2016, leaving an overall deficit of $17.0 billion.

After Trump's remarks, Commerce Secretary Wilbur Ross said he hoped a final agreement with Seoul would be announced next week. </s> South Korea signed a free-trade deal with five Central American countries on Wednesday, amid ongoing sparring between Seoul and Washington over their existing trade agreement. Trade Minister Kim Hyun-chong signed the pact with economic ministers from Costa Rica, El Salvador, Honduras, Nicaragua and Panama, a spokeswoman for the Seoul ministry said, according to AFP. The treaty will take effect in each country as it is ratified. It will provide the world’s 11th-largest economy with a “third route” to the US in the face of mounting trade protectionism in Washington, according to the ministry. Seoul and the US have their own free-trade agreement, known as KORUS, but they have begun talks on renegotiating it at Washington’s demand. US President Donald Trump has repeatedly condemned the pact as a “horrible deal” and a “disaster.” The two allies are at loggerheads over tariffs on steel, washing machines and other goods imposed by Washington in recent weeks. </s> SEOUL (Reuters) - South Korea said on Wednesday it is signing free trade agreements with five Central American nations aimed at boosting market access for the Korean auto sector and electronics makers.

Trade minister Kim Hyun-chong will meet representatives from Costa Rica, El Salvador, Honduras, Nicaragua and Panama in Seoul on Wednesday to sign five separate bilateral pacts which will eliminate duties on about 95 percent of traded goods and services, Korea’s trade ministry said in an e-mailed statement.

The agreements are subject to parliamentary approval in each country, and is likely to take effect at different times depending on the ratification process.

The five trade pacts open South Korea to key Central American countries after its deals with the U.S., the European Union and China helped boost exports.

“The South Korea-Central America free trade deals will enable the countries to build a more comprehensive, strategic partnerships going forward,” Kim said.

The ministry expects the five deals to accelerate South Korea’s economic growth by an overall 0.02 percent in the next 10 years, by boosting exports of cars, steel, cosmetics products, and auto components.
South Korea and the United States reach agreements on trade and steel tariffs.