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US President Donald Trump on Wednesday said he and his South Korean counterpart Lee Jae Myung had pretty much finalised a trade deal that will see Washington steeply lower its tariffs on Seoul in return for a $350 billion investment in the US. Trump and South Korean PresidentLee Jae-myungfinalised details of their fraught trade deal at a summit inSouth Koreaon Wednesday, and the US president also sounded an optimistic note about a looming summit with ChinasXi Jinping. We made our deal, pretty much finalised it, Trump said at a dinner with Lee and other regional leaders on the sidelines of an Asia Pacific forum. The allies unveiled a deal in late July under whichSeoulwould avoid the worst of UStariffson its imports by agreeing to pump $350 billion of new investments into the United States in return for lower tariff rates. But talks over the structure of those investments had been deadlocked and both sides had played down expectations for a deal during Trumps visit. Prospects were not bright even last night, and there was dramatic progress on the day, Kim Yong-beom, South Koreas top presidential policy chief, told reporters, without providing further details. Cash and shipbuilding Trump and Lee agreed that Seoul can split its promised $350 billion investment fund into $200 billion in cash to be paid in instalments and capped at $20 billion per year, Lees aides said. The other $150 billion is to be spent on investments in shipbuilding, which South Korea has promised to help Trump restore. The South Koreans said the two sides agreed to split profits 50/50 before the initial investments are recouped, and to only pursue commercially viable projects. US Commerce Secretary Howard Lutnick would head an investment committee to assess potential projects. The White House did not immediately respond to a request for comment on the details of a Korea trade deal, which needs to be ratified by South Koreas parliament. Arriving from Tokyo hours after North Korea test-fired a nuclear-capable cruise missile, Trump was given a lavish welcome by Lee in Gyeongju, a historic city hosting this years Asia-Pacific Economic Cooperation (APEC) forum. His talks with Xi are set for Thursday in the port city of Busan. Speaking to reporters en route to South Korea, Trump dismissed the North Korean missile test and said he was squarely focused on his meeting with Xi, leader of the worlds second-largest economy. I think were going to have a very good outcome for our country and for the world, actually, Trump said. He added that he expects to reduce US tariffs on imports of Chinese goods in exchange for a commitment from Beijing to curb exports offentanylprecursor chemicals. The United States could halve the levies of 20 percent on Chinese goods it now charges in retaliation for the export of such chemicals, the Wall Street Journal said. Chinas foreign ministry said the meeting of the two leaders would inject new momentum into the development of US-China relations, and Beijing was ready to work together for positive outcomes. Skipping the main APEC summit, Trump attended a dinner on Wednesday with Lee and other countries leaders. He was due to meet Xi before departing on Thursday. Negotiators from the worlds top two economies hashed out a framework on Sunday for a deal to pause steeper American tariffs and Chinese rare earths export controls, US officials said. Gifted with golden crown Lee wooed Trump with gifts and praise, presenting him with a gold crown and the Grand Order of Mugunghwa medal, South Koreas highest decoration. At the start of a working lunch topped off with a golden dessert, Lee pledged to spend more on defence, seeking to head off a Trump concern that US allies are not pulling their weight militarily. He also asked that the US allow the country to reprocess nuclear fuel to power submarines that could track North Korean and Chinese vessels for longer periods. Seoul is barred from reprocessing without US consent, under a pact between the countries. Trump pledged to help straighten out South Koreas problems with its nuclear-armed northern neighbour. The two are still technically at war after their 1950-53 war ended in an armistice, not a peace treaty. While in the peninsula, Trump had extended a meeting invitation also toNorth KoreanleaderKim Jong-un, but just hours before the US president touched down in South Korea,Pyongyangtest-fired cruise missiles off its western coast in a message to its enemies. Read moreNorth Korea fires cruise missiles ahead of Trumps South Korea visit I know Kim Jong-un very well... we really werent able to work out timing, Trump said. In contrast to South Koreas official welcome, hundreds of protesters gathered near the summit venue for anti-Trump rallies and there were some scuffles with police. World leaders and governments are busy flattering Trump and displaying every possible act of diplomatic charm just to persuade him to lower US tariffs by a few percent, said Kwon Young-guk, a former presidential candidate from a minor South Korean left-wing party attending the rally. How absurd is it? (FRANCE 24 with AFP and Reuters) Originally published on France24
