Diplomatic Diary Between South Korea and the United States Amid Global Cryptocurrency Market
South Korea is sending Trade Representative Yeo Han-koo to Washington from June 22 to 27 for new trade talks with the United States, according to Reuters.
The trip will include meetings with U.S. Trade Representative Jamieson Greer, as the two sides enter a third round of technical talks. Details have not been made public, and a full schedule of meetings is still being worked out.
Officials on both sides have kept details vague, possibly because both governments are in the process of filling positions. South Korea does not yet have a full government under its new administration, while the United States is also in the process of recruiting key personnel.
Analysts comment on negotiation skills and risk control areas
Sogang University economics professor Heo Yoon said the talks were unlikely to cover sensitive issues such as defense cost sharing or exchange rates, given the volatile political situation.
“There has been no Korea-US summit and key ministers have not been appointed, so the talks will mainly focus on areas that the trade ministry can control, avoiding sensitive issues such as defense burden sharing and exchange rates.”
– Heo Yoon
He also warned that “reaching comprehensive agreement on key negotiating frameworks and agendas could be difficult.”
Tariff control policy in the context of trade tensions
Korea is still subject to the 10% general import tariff and 25% specific tariff imposed by the Trump administration. Those tariffs were suspended for 90 days, but that period is running out. During the first round of talks in late April, Seoul and Washington agreed to negotiate a reduction of those tariffs by July 8.
Now, amid domestic political turmoil, officials say the possibility of reaching an agreement remains open.
The South Korean government also stressed that the two sides are working toward a solution to reduce tariffs and promote comprehensive economic cooperation, however, the level of progress remains unclear.
The Impact of Trade Risks on the Cryptocurrency Market
If the tariff reduction agreements fail, existing tariffs could be reimposed, which would negatively impact South Korean exports, including the cryptocurrency sector. International investors are increasingly concerned about the potential impact of fiat policy strategies and cryptocurrency market regulations on global capital flows.
In this context, risk mitigation and protection against market shocks are paramount. Cryptocurrency markets are likely to react strongly to global economic and trade policy fluctuations.
Monetary Policy and Its Impact on Cryptocurrency Values
On May 29, the Bank of Korea cut its policy rate by 25 basis points to 2.5%, the lowest level since August 2022. This was the fourth cut in the last six meetings.
The Bank of England predicts a sharp slowdown in economic growth, while inflation remains stable for the time being. These flexible monetary policies contribute to a volatile economic environment, negatively affecting cryptocurrencies such as Bitcoin, Ethereum, and other altcoins.
This scenario increases the likelihood of investors seeking out hedge assets like cryptocurrencies, to protect asset values from economic shocks.
Source: https://tintucbitcoin.com/han-quoc-to-chuc-hoi-nghi-thuong-mai-my/
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