Three Unlikely Countries Reportedly Reach Trade Agreement

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Multiple outlets reported that China, Japan, and South Korea agreed to bolster regional trade after a meeting in Seoul on Sunday.

“The meeting was attended by South Korean Industry Minister Ahn Duk-geun, his Japanese counterpart Yoji Muto, and Chinese Commerce Minister Wang Wentao,” DW reports.

According to Reuters, Chinese state media said the three countries agreed to jointly respond to U.S. tariffs.

WATCH:

Per Reuters:

The comments came after the three countries held their first economic dialogue in five years on Sunday, seeking to facilitate regional trade as the Asian export powers brace against U.S. President Donald Trump’s tariffs.

Japan and South Korea are seeking to import semiconductor raw materials from China, and China is also interested in purchasing chip products from Japan and South Korea, the account, Yuyuan Tantian, said in a post on Weibo.

All three sides agreed to strengthen supply chain cooperation and engage in more dialogue on export controls, the post said.

During Sunday’s meeting, the countries’ trade ministers agreed to “closely cooperate for comprehensive and high-level” talks on a South Korea-Japan-China free trade agreement deal to promote “regional and global trade”, according to a statement released after the meeting.

The ministers met ahead of Trump’s planned announcement on Wednesday of more tariffs in what he calls “liberation day”, as he upends Washington’s trading partnerships.

DW reports:

China, Japan and South Korea have heavily depended on trade partnerships with the US, even though the relations between the three countries have remained tense.

Disagreements over territorial issues have prevented the three Asian exporting powers from making any significant progress on a trilateral free-trade deal since starting talks in 2012.

Last week, Trump announced 25% tariffs on car and auto parts imports — a move that will impact Asian exporters, which are among the largest auto exporters to the US.

The countries’ three trade ministers agreed to “closely cooperate for a comprehensive and high-level” talks on a South Korea-Japan-China free trade agreement deal to promote “regional and global trade,” according to a statement released after the meeting.

“It is necessary to strengthen the implementation of RCEP, in which all three countries have participated, and to create a framework for expanding trade cooperation among the three countries through Korea-China-Japan FTA negotiations,” said South Korean Trade Minister Ahn Duk-geun, referring to the Regional Comprehensive Economic Partnership.

The three countries agreed to create “a predictable trade and investment environment,” a joint statement said.

South Korea’s Ahn said the three countries must respond “jointly” to shared global challenges.

“Today’s economic and trade environment is marked by increasing fragmentation of the global economy,” he said.

The trio agreed to hold its next ministerial meeting in Japan.



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