US–South Korea Kick Off Revision of Trade Agreement

US President Trump and South Korea's President Moon Jae-in hold a joint press conference in Seoul in November 2017. (Reuters)
US President Trump and South Korea's President Moon Jae-in hold a joint press conference in Seoul in November 2017. (Reuters)
TT

US–South Korea Kick Off Revision of Trade Agreement

US President Trump and South Korea's President Moon Jae-in hold a joint press conference in Seoul in November 2017. (Reuters)
US President Trump and South Korea's President Moon Jae-in hold a joint press conference in Seoul in November 2017. (Reuters)

The United States and South Korea on Friday completed the first round of review talks on a bilateral trade deal with Washington, saying there was "much work to do" to reach a new pact, reported South Korea’s news agency Yonhap.

Each side raised issues pertaining to the revision and implementation of the Korea-US free trade agreement, South Korea's trade ministry said in a statement.

The first round started at 10:00 a.m. on Friday at the US Trade Representative office in Washington. The South Korean delegate was headed by Myung-hee Yoo, Korea’s director general from the Ministry of Trade, Industry and Energy, while the US side was led by Michael Beeman, assistant US Trade Representative.

The South Korean Ministry of Trade, Industry and Energy said the talks focused on the areas of joint interests and sensitive sectors. The United States had primarily raised the issue of the automobile sector, Yoo told reporters after the end of the first round.

Following the talks with Korean trade officials in Washington, Robert Lighthizer, US trade representative said: “We have much work to do to reach an agreement that serves the economic interests of the American people.”

“Both sides agreed to follow-up to discuss the timing for the next meeting in the very near term.”

According to what was previously announced, the negotiations will continue every three to four weeks, and will take place between Seoul and Washington, but it is unclear whether an agreement will be reached.

Seoul has expressed interest in the field of dispute settlement between investors and the state, and in the field of trade remedies. It also explained its position on sensitive sectors, including trade in agricultural products and fisheries.

The head of the Korean delegation spoke to reporters as soon as he arrived in Washington on Thursday, pledging to give priority to national interests and seek balance of interests with the United States.

Since taking office in 2017, President Donald Trump has pulled the United States out of talks on a 14-nation Asia-Pacific trade pact, started negotiations on a new deal for the North American Free Trade Agreement between the US, Mexico and Canada and initiated a review of the 2012 Korea deal.

Washington has taken a hard line in the NAFTA talks, which appear stalled with just two rounds of negotiations left, saying that concessions are the only way for Canada and Mexico to keep the deal.

South Korea's economy is in good shape despite the tensions with its northern neighbor. Data from South Korea's central bank showed on Thursday that the country's foreign exchange reserve hit its highest level at the end of 2017 in line with the drop of the US dollar.

South Korea's foreign exchange reserves at the end of December reached a total of $389.27 billion, an increase of $2.02 billion over the last month, the central bank said in a statement. The foreign exchange reserve hit a high record of $387.25 billion at the end of November, breaking its record of one month ago, according to Yonhap.

The recent decline in the US dollar has boosted the values of other currencies when converted into the US dollar, the central bank said. Foreign exchange reserves consist of securities and deposits in foreign currencies, as well as reserve deposits in the IMF, Special Drawing Right (SDR) and gold bullions.

South Korea was ranked ninth in the world in terms of foreign exchange reserves at the end of November, after China, Japan, Switzerland, Saudi Arabia, Taiwan, Russia, Hong Kong and India, the central bank said.

On the other hand, the value of foreign direct investment (FDI) commitments in South Korea last year reached a record high of over $20 billion, and exceeded the set target. The Ministry of Commerce, Industry and Energy said Wednesday that the value of foreign direct investment commitments in 2017 reached $22.94 billion, an increase of $7.7 billion over the previous year, which is the highest value ever, and exceeds $20 billion for the third year in a row.

Yonhap said real investment by foreign companies and investors had increased by 20.9% a year to $12.82 billion in 2017.

FDI commitments in the first three quarters of last year fell by 9.7% from the same period last year to $13.59 billion, but posted a quarterly record of $9.36 billion in the fourth quarter.

The ministry said in a statement that the country has been assessed as a stable investment destination despite the North Korean nuclear crisis, adding that the main reasons for increasing foreign direct investment are the country's top credit rating, expansion of investment in manufacturing industries related to the Fourth Industrial Revolution and modernization of the industrial structure.



King Salman International Airport Kicks of Construction of 3rd Runway to Boost Operational Efficiency

 The airport will incorporate the King Khalid terminals - SPA
The airport will incorporate the King Khalid terminals - SPA
TT

King Salman International Airport Kicks of Construction of 3rd Runway to Boost Operational Efficiency

 The airport will incorporate the King Khalid terminals - SPA
The airport will incorporate the King Khalid terminals - SPA

King Salman International Airport (KSIA), a PIF company, has commenced construction works on the third runway, marking a strategic step that reflects continued progress in airfield development and enhances the airport’s operational readiness to support long-term growth in air traffic demand.

The third runway forms a key component of the KSIA Master Plan and represents a major milestone in the airport’s expansion journey.
According to a press release issued by the KSIA, the project is being delivered in collaboration with FCC Construcción SA and Al-Mabani General Contractors Company and has been designed in alignment with Riyadh’s prevailing wind patterns to ensure safe and efficient aircraft operations under all operating conditions, SPA reported.

The current operational capacity stands at 65 aircraft movements per hour. With the implementation of operational enhancements and the introduction of the third runway, capacity is expected to increase to 85 aircraft movements per hour, contributing to improved operational efficiency and supporting long-term growth.

The third runway incorporates multiple access taxiways to ensure smooth aircraft flow and will span 4,200 meters in length.

Acting CEO of KSIA Marco Mejia said: “Launching construction of the third runway marks a pivotal step in delivering the KSIA Master Plan and reflects our commitment to developing world-class infrastructure capable of supporting future growth, enhancing operational efficiency, and expanding long-haul connectivity without constraints.”

King Salman International Airport is a strategic and transformative national project that reflects the Kingdom’s ambition to position Riyadh as a global capital and a leading aviation hub. The project was announced by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister, Chairman of the Council of Economic and Development Affairs and Chairman of the Board of Directors of King Salman International Airport, underscoring its national significance and its role in advancing the objectives of Saudi Vision 2030.

Located on the existing site of King Khalid International Airport in Riyadh, the airport will incorporate the King Khalid terminals, in addition to three new terminals, residential and leisure assets, six runways, and logistics facilities. Spanning 57 square kilometers, it is designed to accommodate 100 million passengers annually and handle over two million tons of cargo by 2030.

This phase of construction contributes to strengthening King Salman International Airport’s international flight network across multiple global destinations, reinforcing Riyadh’s position as an internationally connected aviation gateway and supporting national development objectives within the air transport sector.


Mawani, Arabian Chemical Terminals Sign Land Lease for Jubail Port Storage Tanks

Mawani, Arabian Chemical Terminals Sign Land Lease for Jubail Port Storage Tanks
TT

Mawani, Arabian Chemical Terminals Sign Land Lease for Jubail Port Storage Tanks

Mawani, Arabian Chemical Terminals Sign Land Lease for Jubail Port Storage Tanks

The Saudi Ports Authority (Mawani) signed a contract with Arabian Chemical Terminals Ltd. to establish storage tanks for chemical and petrochemical materials at Jubail Commercial Port, with an investment exceeding SAR500 million on an area of 49,000 square meters.

The project will contribute to enhancing operational efficiency and increasing handling capacity in line with the objectives of the National Transport and Logistics Strategy to consolidate the Kingdom’s position as a global logistics hub, SPA reported.

This step is part of Mawani’s efforts to strengthen the role of the private sector in supporting the gross domestic product and to reinforce the position of Jubail Commercial Port as a driver of commercial activity. The project’s storage capacity will reach 70,000 cubic tons, boosting the competitiveness of the Kingdom’s ports at both regional and international levels.

The project aims to develop and expand storage capacity and the export of chemical and petrochemical materials in accordance with the highest international standards while supporting supply chains. It includes the establishment and development of specialized facilities for storing and exporting chemical and petrochemical products, as well as the provision of storage and distribution services for local and international import and export of chemicals in line with global quality and safety standards.

The project will contribute to supporting national supply chains, boosting the Kingdom’s chemical logistics capabilities, and raising operational efficiency and capacity, thereby improving customer competitiveness. It also supports the achievement of Saudi Vision 2030 objectives by promoting the development of infrastructure to advance the energy, industry, and supply chain sectors in the Kingdom.


Oil Prices Stable as Investors Seek Clarity on Russia-Ukraine Talks

A view shows the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel
A view shows the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel
TT

Oil Prices Stable as Investors Seek Clarity on Russia-Ukraine Talks

A view shows the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel
A view shows the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel

Oil prices were little changed on Tuesday as investors took stock of ​dented hopes of a Russia-Ukraine peace deal and rising geopolitical tensions in the Middle East around Yemen, Reuters reported.

Brent crude futures for February delivery, which expire on Tuesday, were up 15 cents at $62.09 a barrel as of 0918 GMT. The more active March contract was at $61.61, up 12 cents.

US West Texas Intermediate ‌crude gained 14 ‌cents to $58.22.

The Brent and ‌WTI ⁠benchmarks ​settled ‌more than 2% higher in the previous session as Saudi Arabia launched airstrikes against Yemen and after Moscow accused Kyiv of targeting Putin's residence, denting hopes of a peace deal.

Kyiv dismissed Moscow's accusation as baseless and designed to undermine peace negotiations. After a phone call ⁠with Putin, US President Donald Trump said he was angered by details ‌of the alleged attack.

"I think the ‍markets are sensing that ‍a deal is going to be very hard ‍to come by," said Marex analyst Ed Meir.

Traders also watched other Middle East developments after Trump said the United States could support another major strike on Iran were Tehran to resume rebuilding its ballistic missile or nuclear weapons programs.

Despite renewed fears of potential supply disruptions, perceptions of an oversupplied global market remain and could cap prices, analysts say.

Marex's Meir said prices would trend downwards in the first quarter of 2026 due to ‌a "growing oil glut".