US-South Korea trade deal too complex for Trump visit conclusion

A major trade agreement between the United States and South Korea is too complex to be finalized during President Donald Trump's visit this week, US officials confirmed. The announcement comes as Trump participates in the Asia-Pacific Economic Cooperation Summit, with key details on investment and market access still under negotiation.

Framework Agreed, Details Pending

US Treasury Secretary Scott Bessent, speaking to reporters aboard Air Force One en route to Japan, acknowledged that while a broad framework is complete, the intricate nature of the pact prevents its immediate signing. "Just a lot of details to work out, very complicated deal, and I think we're very close," Bessent stated, indicating that officials are currently "dotting the i's" on the final text.

Key Components of the Pact

US Trade Representative Jamieson Greer outlined that the agreement addresses longstanding trade barriers and national security considerations. "We've resolved a lot of those," Greer noted, highlighting significant progress. A central element involves substantial South Korean investment in US shipbuilding, with discussions focused on implementing this commitment effectively to revitalize the American industrial base.

Strategic Importance of Shipbuilding

President Trump personally emphasized the strategic significance of the shipbuilding component, linking it to broader economic competitiveness. "We're very much involved in getting the shipbuilding again ... We were number one. We'll be either number one or right up," Trump remarked. The deal builds on a July understanding where the US agreed to reduce import duties on South Korean goods in exchange for a $350 billion investment pledge.

Upcoming Bilateral Meeting

The finalization delay means the pact will not be signed during President Trump's scheduled meeting with South Korean President Lee Jae Myung in Busan on Wednesday. The leaders are expected to discuss the ongoing negotiations and other bilateral matters on the sidelines of the regional economic summit.