Copyright kyodonews
GYEONGJU, South Korea - South Korean President Lee Jae Myung and U.S. President Donald Trump agreed Wednesday on the details of a new trade deal, both sides said, as the two leaders held their second summit in two months on the sidelines of the Asia-Pacific Economic Cooperation forum in the southeastern city of Gyeongju. The framework deal, first announced in July, calls for South Korea to invest $350 billion in the United States in exchange for Washington's reduction of "reciprocal" tariffs from 25 percent to 15 percent. The accord is expected to boost cooperation in strategic industries such as shipbuilding and advanced manufacturing. Trump said at the outset of a dinner with other APEC leaders that the two countries had "pretty much finalized a trade deal," and Seoul later confirmed that an agreement had been reached on the specifics of tariff negotiations. "The $350 billion investment package in the United States consists of $200 billion in financial investment and $150 billion in shipbuilding cooperation," Presidential Chief of Staff for Policy Kim Yong Beom said in a briefing with reporters, elaborating that the $200 billion portion is structured similarly to Japan's $550 billion financial package agreed with the United States. Kim added that South Korean companies will lead the $150 billion shipbuilding cooperation, and that it will include both their direct investment and guarantees. During Wednesday's summit, Lee also asked Washington to allow Seoul to secure fuel supplies for nuclear-powered submarines, saying the move would strengthen South Korea's maritime deterrence. He emphasized that the submarines would carry only conventional weapons. Under current South Korea-U.S. rules on nuclear cooperation, Seoul needs Washington's consent over sensitive activities regarding the use of fuel in nuclear-powered vessels. Lee said diesel-powered submarines, which have limited underwater endurance, have difficulty tracking submarines operating in waters facing North Korea and China, according to the presidential office. He ruled out arming the vessels with nuclear weapons. "If the United States permits fuel supplies, we could use our technology to build several conventionally armed submarines and deploy them to defend waters off the east and west coasts of the Korean Peninsula, which I believe would significantly lessen the burden on U.S. forces," Lee added. He also vowed to expand South Korea's investment in the United States to support its manufacturing industry. Trump, in response, said South Korea has "become a master of shipbuilding" and that the two countries are going to make ships together in the United States that will bring U.S. shipbuilding to "the top or at least toward the top in a pretty short period of time."
