South Korea Urges USTR to Revise Proposed Tariffs Over Forced Labor Concerns

By Song Sang-ho

WASHINGTON, July 7 (Yonhap) -- South Korea has called on the Office of the U.S. Trade Representative (USTR) to revise its proposed tariff on South Korea over forced labor concerns, calling the proposal "unwarranted" and "disproportionate" to the Asian economy's relevant circumstances.

The South Korean Embassy in Washington submitted comments to the office on Monday, as the USTR has proposed 12.5 percent tariffs on South Korea and dozens of other economies over their alleged failure to enforce import bans on products made with forced labor.

The USTR conducted trade investigations into 60 countries, including South Korea, China and Japan, over forced labor concerns under Section 301 of the 1974 Trade Act, as U.S. President Donald Trump's administration seeks to replace "reciprocal" tariffs that were struck down by the Supreme Court in February.

"Korea shares the United States' concerns regarding the use of forced labor in global supply chains and the need for its elimination," the embassy said in its comment. "Nevertheless ..., Korea believes that the proposed action against Korea is unwarranted and needs to be revised."

The embassy said that the USTR's conclusion from its trade investigation that South Korea imports forced labor-linked goods and burdens U.S. commerce seems to lack both a "factual basis" and "sufficient analysis" of the country's specific circumstances.

It also stressed that South Korea is implementing "multifaceted" policies to prevent forced labor inputs, including establishing a domestic legal framework, ratifying international obligations and making efforts to encourage the private sector to exclude forced labor goods from its supply chains.

Moreover, it reiterated its commitment to last year's South Korea-U.S. joint fact sheet, which includes a pledge to work together to combat the importation of goods produced with forced labor.

"Against this backdrop, Korea believes that the proposed action against it is disproportionate to Korea's actual circumstances and should be reconsidered," the embassy said. "Korea reserves its basic position that action by the United States against Korea is neither appropriate nor necessary."

The embassy also called on the USTR to grant South Korea "more favorable" treatment than under the initial tariff proposal should it determine that it is necessary to impose the proposed tariffs.

"Korea respectfully requests that USTR take into due consideration the aforementioned views, reflecting our strong bilateral ties under the Strategic Trade and Investment Deal, and reach a final decision that is mutually beneficial to both countries," it said.