South Korea, China, Japan to strengthen regional trade as Trump tariffs loom
SEOUL: South Korea, China and Japan agreed to expand trade cooperation on Sunday, ahead of US President Donald Trump's plans to impose reciprocal tariffs.
South Korean Industry Minister Ahn Duk-geun met with Japanese Trade Minister Yoji Muto and Chinese Commerce Minister Wang Wentao in Seoul for the first trilateral meeting among the three countries since 2019.
They agreed to speed up negotiations toward a trilateral free trade agreement, which have not progressed since talks first began in 2012.
'We will continue discussions to accelerate trilateral FTA negotiations with the goal of realizing a fair, comprehensive and high-quality FTA that is mutually beneficial,' the ministers said in a joint statement issued after the meeting.
Ahn said cooperation among the three countries was necessary amid 'the rapidly changing global economic and trade' environment.
'There is a need for the three countries to cooperate on the basis of mutual respect and trust, in order to create a more stable environment for global trade and investment,' Ahn said during his opening remarks at the meeting.
Ahn and his counterparts also agreed to strengthen the Regional Comprehensive Economic Partnership, a trade framework among 15 Asia-Pacific countries aimed at lowering trade barriers, and to expand collaboration in rising industries, including renewable energy and digital transformation.
Sunday's trilateral meet comes ahead of Trump's expected announcement of 'reciprocal tariffs' on April 2. US officials have previously cited China and South Korea as countries with whom Washington has had 'persistent trade deficits.'
On Wednesday, Trump unveiled a 25 percent tariff on all cars and auto parts shipped to the US that is set to take effect on April 3. The move could deal a heavy blow to South Korea and Japan's economies, which rely on auto exports to the North American country.
After Mexico, South Korea is the world's largest exporter of vehicles to the US, followed by Japan, according to data from S&P.
'South Korea and Japan in particular are trying to decrease pressures from the US by increasing trade volume with China and Japan,' Park Duck-bae, an economics adjunct professor at Sungkyunkwan University, told Arab News.
'Since they are all facing similar threats from the US, they are getting together to pool their response to the US tariff policies.'
By increasing cooperation with South Korea and Japan, Beijing will be able to strengthen its position in the region, said Moon Heung-ho, an expert on China and honorary professor at the Graduate School of International Studies in Hanyang University.
'China is trying to exert its influence in the Middle East and Central Asia, but it is difficult due to the presence of the US and Russia. They are trying to cozy up with their neighbors first … The fact that the statement stresses norms like multilateralism and free trade is part of China's strategy to claim the upper hand in its power struggle with the US,' Moon told Arab News.
'Increasing cooperation and driving a wedge between the US and its traditional allies, like South Korea and Japan, is an important win for China.'
China, Japan and South Korea are among Asia's five largest economies, with the first two holding the top positions, as per gross domestic product. The three countries make up about 20 percent of the world's population.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asharq Al-Awsat
6 hours ago
- Asharq Al-Awsat
Vance Says Musk Making ‘Huge Mistake' in Going After Trump but Also Tries to Downplay Attacks
Vice President JD Vance said Elon Musk was making a "huge mistake" going after President Donald Trump in a storm of bitter and inflammatory social media posts after a falling out between the two men. But the vice president, in an interview released Friday after the very public blow up between the world's richest man and arguably the world's most powerful, also tried to downplay Musk's blistering attacks as an "emotional guy" who got frustrated. "I hope that eventually Elon comes back into the fold. Maybe that's not possible now because he's gone so nuclear," Vance said. Vance's comments come as other Republicans in recent days have urged the two men, who months ago were close allies spending significant time together, to mend fences. Musk's torrent of social media posts attacking Trump came as the president portrayed him as disgruntled and "CRAZY" and threatened to cut the government contracts held by his businesses. Musk, who runs electric vehicle maker Tesla, internet company Starlink and rocket company SpaceX, lambasted Trump's centerpiece tax cuts and spending bill but also suggested Trump should be impeached and claimed without evidence that the government was concealing information about the president's association with infamous pedophile Jeffrey Epstein. "Look, it happens to everybody," Vance said in the interview. "I've flown off the handle way worse than Elon Musk did in the last 24 hours." Vance made the comments in an interview with "manosphere" comedian Theo Von. The vice president told Von that as Musk for days was calling on social media for Congress to kill Trump's "Big Beautiful Bill," the president was "getting a little frustrated, feeling like some of the criticisms were unfair coming from Elon, but I think has been very restrained because the president doesn't think that he needs to be in a blood feud with Elon Musk." "I actually think if Elon chilled out a little bit, everything would be fine," he added. The interview was taped Thursday as Musk's posts were unfurling on X, the social media network the billionaire owns. "This stuff is just not helpful," Vance said in response to a post shared by Musk calling for Trump to be impeached and replaced with Vance. "It's totally insane. The president is doing a good job." Vance called Musk an "incredible entrepreneur," and said that Musk's Department of Government Efficiency, which sought to cut government spending and laid off or pushed out thousands of workers, was "really good." The vice president also defended the bill that has drawn Musk's ire, and said its central goal was not to cut spending but to extend the 2017 tax cuts approved in Trump's first term. The bill would slash spending but also leave some 10.9 million more people without health insurance and spike deficits by $2.4 trillion over the decade, according to the nonpartisan Congressional Budget Office. Musk has warned that the bill will increase the federal deficit and called it a "disgusting abomination." "It's a good bill," Vance said. "It's not a perfect bill." He also said it was ridiculous for some House Republicans who voted for the bill but later found parts objectional to claim they hadn't had time to read it. Vance said the text had been available for weeks and said, "the idea that people haven't had an opportunity to actually read it is ridiculous."
Asharq Al-Awsat
12 hours ago
- Asharq Al-Awsat
Iran Orders Material from China to Produce 800 Ballistic Missiles
Iran has ordered thousands of tons of ballistic-missile ingredients from China, people familiar with the transaction told The Wall Street Journal, seeking to rebuild its military prowess as it discusses the future of its nuclear program with the US. The report, which cited people familiar with the transaction, said Tehran had ordered enough ammonium perchlorate to potentially manufacture up to 800 missiles. It said the material is used to produce solid-fuel missiles. 'Shipments of ammonium perchlorate are expected to reach Iran in coming months and could fuel hundreds of ballistic missiles,' the people said. Some of the material would likely be sent to militias in the region aligned with Iran, including Houthis in Yemen. According to the Journal, Iran's drive to expand its missile stockpile and strengthen its regional proxies comes as it continues to enrich uranium to levels just below weapons grade and has refused to place limits on its missile development as part of nuclear negotiations. President Donald Trump said he discussed the issue during a phone call with Russian President Vladimir Putin 'Time is running out on Iran's decision pertaining to nuclear weapons,' Trump wrote Wednesday in a social-media post. Part of rebuilding Iran's 'Axis of Resistance' The shipment of ammonium perchlorate is part of Iran's broader efforts to rebuild its so-called "Axis of Resistance" network. The ammonium perchlorate was ordered by an Iranian entity called Pishgaman Tejarat Rafi Novin Co. from the Hong Kong-based Lion Commodities Holdings Ltd, the Journal reported. China's Foreign Ministry told the Journal that Beijing was unaware of a contract for such a shipment. 'The Chinese side has always exercised strict control over dual-use items in accordance with China's export control laws and regulations and its international obligations,' said the spokesperson. Iran has been looking for ways to rebuild its network of regional proxies, the so-called Axis of Resistance, after Israel struck Hezbollah in Lebanon, Hamas in Gaza, and the Assad regime in Syria. While US and Israeli strikes have damaged the Houthis' capabilities in Yemen, they continue to periodically launch missiles at Israel. The Journal said that beyond supporting regional militias, Iran has also reportedly transferred ballistic missiles to Shiite militia groups in Iraq, which have previously targeted both US and Israeli forces in the region. Earlier this year, Iranian ships docked in China to load over 1,000 tons of sodium perchlorate, a precursor for ammonium perchlorate. The material was delivered to Iranian ports in mid-February and late March, according to shipping trackers. This quantity of sodium perchlorate is said to be enough to fuel around 260 short-range missiles. The new order for ammonium perchlorate, which was placed months before President Trump's proposed nuclear talks with Iran's Supreme Leader, Ali Khamenei, in early March, could supply Iran with enough material to produce approximately 800 missiles, one official estimated. In response to Iran's missile activities, the US Treasury Department sanctioned six individuals and six entities from both Iran and China on April 29 for their involvement in procuring ballistic missile propellant ingredients. Two weeks later, the Treasury expanded these sanctions to include additional Chinese and Hong Kong entities. It added sodium perchlorate to its list of materials linked to Iran's military, nuclear, and missile activities. A State Department official said, 'Chinese entities and individuals have provided support to Iran's ballistic missile program, as well as to the Houthis' missile and UAV production efforts, which is why we continue to identify and sanction them.' Possible Threats Fabian Hinz, a military expert at the International Institute for Strategic Studies, said 'Iran likely needs material from abroad to avoid bottlenecks in its domestic production capabilities.' However, storing such materials poses significant risks. In April, a deadly explosion at Shahid Rajaee port, Iran's key container hub, killed dozens. State media attributed the blast to the mishandling of explosive materials by a unit of the Iranian Revolutionary Guard Corps' Quds Force. An official confirmed that some of the previously imported sodium perchlorate was destroyed in the incident. 'These substances are a major fire and explosive hazard,' Hinz warned. 'Iran's defense industrial complex does not have a strong track record in ensuring safety standards.'
Asharq Al-Awsat
16 hours ago
- Asharq Al-Awsat
Iran Says US Travel Ban Shows 'Deep Hostility' for Iranians
Iran on Saturday blasted US President Donald Trump's travel ban on countries including Iran, saying it showed "deep hostility" toward Iranians and Muslims. "The decision to ban the entry of Iranian nationals - merely due to their religion and nationality - not only indicates the deep hostility of American decision-makers towards the Iranian people and Muslims but also violates... international law," a senior foreign ministry official said in a ministry statement posted on the X social media platform. Trump's proclamation on Wednesday will bar citizens from 12 countries starting on Monday at 12:01 a.m. EDT (0401 GMT). The countries are Afghanistan, Myanmar, Chad, Congo Republic, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan and Yemen. The ban, which Trump said was necessary to protect against "foreign terrorists", was reminiscent of a similar move he implemented during his first term in office from 2017 to 2021, when he barred travelers from seven Muslim-majority nations.
