Korean government tells USTR: "'Forced labor tariff' lacks grounds...should be reconsidered"

Korean government tells USTR: "'Forced labor tariff' lacks grounds...should be reconsidered"

Submission of opinion paper... "Even if tariffs are deemed necessary, Korea should receive favorable treatment"

The Korean government submitted an opinion paper stating that the tariffs announced by the U.S. concerning imports of products produced with forced labor lack sufficient grounds and should be reconsidered.

According to the U.S. Trade Representative (USTR) on the 7th (local time), the Korean government, through a written opinion paper, pointed out that "the USTR's conclusion that Korea imports products produced with forced labor and burdens U.S. trade appears to lack factual basis and sufficient analysis."

In the opinion paper, the Korean government explained that in the report by the International Energy Agency (IEA) cited by the USTR, no concerns were raised regarding Korea in connection with cases of polysilicon imports produced with forced labor.

It also added that in the appendix to the report, it is explicitly stated that Korea is not a country that imports polysilicon produced with forced labor and then exports processed products to the U.S.

The opinion paper emphasized that "Korea is already implementing various policies, such as establishing a domestic legal framework and ratifying international obligations, to ensure that the private sector excludes products produced with forced labor from its supply chains," and added, "In particular, Korea is committed to fulfilling its promise in the (ROK-U.S. summit) joint statement to cooperate in eradicating imports of products produced with forced labor."

It further added, "While Korea views the U.S. measure as excessive, in need of reconsideration, and neither appropriate nor necessary, if the U.S. nevertheless determines that tariffs are necessary, we want to emphasize that Korea should receive more favorable treatment than initially proposed."

It continued, "Korea respectfully requests the USTR to fully consider these views (of Korea), reflecting the strong bilateral relationship under the Strategic Trade and Investment Agreement, and to make a final decision that is mutually beneficial to both countries."

The Korea International Trade Association (KITA) had also previously submitted an opinion paper to the USTR, requesting a reconsideration of the imposition of an additional 12.5% tariff on Korean products, and asked for a suspension of the tariff implementation or, if suspension is difficult, a reduction of the additional tariff rate to 10%.

Early last month, the USTR stated that it had failed to adequately prevent imports of products produced with forced labor, and announced its plan to impose additional tariffs of 10% or 12.5% on 60 economies, including Korea.

The USTR's 'forced labor tariff' is based on Section 301 of the Trade Act, which grants the administration authority to respond to unfair practices and policies of foreign governments. After the Federal Supreme Court ruled reciprocal tariffs invalid in February, the Donald Trump administration is moving under the policy of replacing them with tariffs under Section 301 of the Trade Act.