(LEAD) S. Korea, U.S. effectively settle FTA, steel tariff issues: trade minister

(ATTN: UPDATES with more details throughout)

SEOUL, March 25 (Yonhap) -- South Korea's trade minister said Sunday that Seoul and Washington have effectively reached a settlement on revising the free trade agreement (FTA) and steel tariff issues.

"Understanding on the bilateral FTA and steel issues has been reached in principle," Kim Hyun-jong said on arrival at Incheon International Airport, west of Seoul. He said there are some "technical matters" that need to be ironed out at a working level but expressed confidence that they will be concluded shortly.

Kim, Seoul's point man on trade talks, who had been engaged in lengthy talks with Washington, also said Seoul was able to secure several key points covering farm goods, steel and auto parts.

"South Korea has been able to defend its 'red line' on farm goods so there will be no additional opening of the domestic market," the policymaker said.

He said that by removing uncertainties on the steel tariff issue, South Korean steelmakers will be able to sell their products in the United States going forward.

The minister, moreover, said Seoul was able to fend off requests for a mandatory quota on auto parts that is being pushed forward by Washington in its North American Free Trade Agreement renegotiations with Canada and Mexico.

Kim then said there has been no retreat in regards to the existing tariff concession and that cuts in duties made so far will not be affected.

The negotiator said more details of the understanding reached will be announced after he reports the results of the talks to the Cabinet on Monday. He did not respond directly to questioning about Seoul's initial stance of reaching a "balance of interest" in the trade talks.

The minister's announcement comes as U.S. President Donald Trump said over the weekend that an FTA deal is "very close" and that it will be a "wonderful deal with a wonderful ally."

The chief executive had previously called the pact a disaster that stole American jobs.

U.S. Secretary of Commerce Wilbur Ross confirmed the two close trading partners are nearing a comprehensive resolution to the negotiations that were started in earnest in January.

Besides the bilateral FTA, Seoul and Washington have been negotiating South Korea's exemption from plans to slap 25 percent tariffs on steel products, which are being pushed for by the Trump administration.
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