Washington: South Korea's top trade negotiator announced that a comprehensive proposal for cooperation in the shipbuilding industry played a crucial role in securing a trade deal with the United States under President Donald Trump's administration. This announcement was made during a press briefing held in Washington by Finance Minister Koo Yun-cheol, who also serves as the deputy prime minister for economic affairs.
According to Yonhap News Agency, the deal will see the lowering of "reciprocal" tariffs on Korea from the proposed 25 percent to 15 percent. During the negotiations, South Korea put forward a large-scale cooperation project called "Make American Shipbuilding Great Again (MASGA)." This initiative aligns with the Trump administration's objective to revitalize the U.S. shipbuilding industry, which has been overshadowed by China's massive shipbuilding capacity.
Minister Koo highlighted the significance of the agreement, which includes a $150 billion Korea-U.S. shipbuilding cooperation package under the MASGA project. This initiative involves the construction of new shipyards in the U.S., the development of shipbuilding personnel, the reestablishment of supply chains, and collaboration on maintenance, repair, and overhaul (MRO) projects. The project is designed to address the needs of Korean enterprises in the shipbuilding sector.
Koo expressed optimism about the potential business opportunities for South Korea's shipbuilding companies, known for their advanced design and construction capabilities. He also emphasized the chance for these companies to grow while contributing to the rejuvenation of the U.S. shipbuilding industry. The minister noted that President Trump had requested expedited progress on the shipbuilding efforts in the U.S., acknowledging the expertise of the Korean shipbuilding industry.
The Trump administration has been keen on restoring the American shipbuilding industry, especially given the significant capacity gap with China, which possesses over 230 times the shipbuilding capability of the U.S. This issue has become more pressing amid the intensifying rivalry between China and the U.S.
Additionally, Koo stated that South Korea and the U.S. agreed not to open Korea's agricultural market further, despite the U.S. pushing for reduced non-tariff barriers and greater market access for its agricultural and livestock products. Technical details related to motor vehicle safety standards and other areas will continue to be discussed in bilateral trade consultations.
Minister Koo concluded by stating that the agreement marks a step towards deepening and upgrading the economic relations between South Korea and the United States.