Despite President Moon Jae-in hailing the latest negotiations to revise the free trade agreement with the US as a “great achievement,” the South Korean government remains flustered as the US side continues to make claims outside of the agreement.



“The quick completion of the trade negotiations with the US amid heightened protectionism is a great achievement as it has removed uncertainties in the global economy,” Moon said during a meeting with his chief aides in the Blue House on Monday.

“Addressing a conflict factor was a very good job at a time when close cooperation is needed for peace on the Korean Peninsula and for North Korea’s denuclearization,” he added.

Despite Moon’s credit, the Trade Ministry has been confused over the past week as the US talked about currency and agricultural issues that they argue were connected with the trade deal, despite repeated denials by the Korean government that the issues were separate.

All the while, US President Donald Trump has threatened to delay finalizing the renegotiated trade deal by linking it with North Korea’s denuclearization talks.

Most recently on Friday, a national trade estimate report released by the US Trade Representative said that the US “continues to press Korea to allow imports of (blueberries, cherry, apples and pears) from the US” to the Korean agricultural market. The argument countered the statement by the Korean government that it had safeguarded “the red line“ in terms of agriculture upon the third round of FTA revision talks earlier this month.

The report had also came after White House spokeswoman Sarah Huckabee Sanders said that there was some progress in the agricultural sector during the negotiation.

The two countries’ differing positions on the extent of the FTA discussion was most stark when the US government claimed on Wednesday last week that a currency issue was on the trade negotiation table. White House National Trade Council Director Peter Navarro had said in an interview with CNN, “We put in a sub-agreement on currency undervaluation (during the negotiation for FTA).”

Currency devaluation is seen as an effort by the US to eliminate attempts by Seoul to lower its currency rates and expand exports. The Korean government immediately denied it, saying the currency issue is not related to the free trade deal.

Making matters even more complicated was President Trump, who on Thursday raised eyebrows by saying, “I may hold (the trade deal) up until after a deal is made with North Korea,” because “it’s a very strong card.”

Seoul officials said considering the complicated nature of events “the final deal appears to be difficult to be made within the next month.”

Ahn Seh-young, a professor at Sungkyunkwan University, said, “Given Trump’s moves shown to date, he will continue to link trade policies with diplomacy, security and currency. Korea should make strategic plans so that the deals with North Korea’s denuclearization should not affect the trade deal.”

By Shin Ji-hye (shinjh@heraldcorp.com)