US Escalates Trade Demands Beyond Tariffs

Seoul Faces Pressure on Bioethanol, Auto Safety, and Digital Mapping

South Korea is bracing for a new wave of US trade demands that extend beyond initial tariff negotiations. Washington is reportedly pushing for mandatory bioethanol usage in gasoline and stricter adherence to American automobile safety standards.

Investment Fund Revenue Sparks Controversy

Recent discussions have also touched upon the allocation of revenue from a potential $350 billion US-South Korea investment fund. A White House spokesperson, Caroline Levit, was quoted suggesting that the US government could claim 90% of this revenue to offset national debt. However, South Korean officials have denied such specifics were discussed.

“There was no story like this in the negotiations in the negotiations.”

—Kim, KBS ‘Sunday Diagnosis’

Experts believe that without clear agreements on these non-tariff barriers, future trade talks could prove challenging.

Bioethanol Mandate Faces Industry Pushback

The US, a significant bioethanol producer, is urging South Korea to mandate the mixing of bioethanol with gasoline. While many European nations have such regulations to combat carbon emissions, South Korea has resisted. The country’s oil industry is concerned about increased costs and potential price hikes for consumers if the mandate is implemented.

Auto Safety and Agricultural Market Access

Deputy Prime Minister Gu Yoon-cheol and the Minister of Strategy and Finance acknowledged the need for ongoing dialogue on technical aspects, including the removal of limits on automobile safety regulations. Additionally, the US is pressing for accelerated quarantine procedures for genetically modified crops, such as nectarines and apples, potentially expanding market access for other American agricultural products.

Digital Mapping and Online Platforms on the Table

Future discussions may also encompass Google’s request for high-precision maps and South Korea’s proposed online platform legislation. Seoul has strategically postponed a decision on exporting high-precision map data to Google until after an upcoming summit with the US.

Lingering Concerns Over Future Trade Pressure

South Korean trade officials acknowledge the possibility of further US demands arising independently of current negotiations. The Minister of Trade, Industry and Energy, Kim Jong-gwan, emphasized the importance of future engagement, stating, “It is much more important in the future.”

“We are not relieved that tariffs and tariff pressure will come in the future.”

—Yeohan-gu, Ministry of Commerce, Industry and Energy

Analysts advise a strategic approach to negotiations, maintaining flexibility in the face of President Trump‘s often unpredictable trade agenda. Experts recommend focusing on expanding autonomy in detailed discussions to avoid undue burden.