Top Korean negotiator says shipbuilding proposal contributes most to reaching trade deal with U.S.
WASHINGTON, July 30 (Yonhap) -- South Korea's top trade negotiator said Wednesday that the country's comprehensive proposal for shipbuilding industry cooperation with the United States contributed the most to reaching a deal with President Donald Trump's administration.
Finance Minister Koo Yun-cheol, who doubles as deputy prime minister for economic affairs, made the remarks during a press briefing in Washington, after Trump announced the deal that will lower "reciprocal" tariffs on Korea to 15 percent from the proposed 25 percent.
During the trade talks, Seoul proposed a large-scale cooperation project, dubbed "Make American Shipbuilding Great Again (MASGA)," as the Trump administration seeks to rebuild its shipbuilding industry in the face of China's overwhelming capacity to construct ships.
"What is the most noteworthy in today's agreement is the US$150 billion Korea-U.S. shipbuilding cooperation package, or a MASGA project," he told Korean correspondents at the South Korean Embassy.
The project includes constructing new shipyards in the U.S., nurturing shipbuilding personnel and reestablishing related supply chains as well as building American ships and cooperating on maintenance, repair and overhaul (MRO) projects.
Koo stressed that the MASGA project will effectively be a South Korean program based on the needs of Korean enterprises in the shipbuilding industry.
"We expect that (this project) will create a new (business) opportunity for South Korea's shipbuilding companies with the world's best shipbuilding design and construction capabilities, and a chance for them to grow while helping the U.S. shipbuilding industry's rejuvenation," he said.
The minister pointed out that Trump requested Korea to ensure that shipbuilding efforts in the U.S. will proceed at the quickest possible pace, while he highly assessed the Korean shipbuilding industry's capabilities.
The Trump administration has been pushing to restore America's shipbuilding industry as China is known to have over 230 times the shipbuilding capacity of the U.S. -- a gap that has gained urgency amid an intensifying Sino-U.S. rivalry.
Moreover, Koo said Seoul and Washington agreed that Korea will not open its agricultural market additionally, although the U.S. side had strongly demanded a reduction of Korea's non-tariff barriers related to U.S. agricultural and livestock products, and a wider market access.
Bilateral trade consultations will continue on technical details, including issues related to motor vehicle safety standards, he said.
Koo assessed Seoul and Washington had arrived at a deal that will "deepen and upgrade" bilateral economic relations.
Meanwhile, the offices of Koo and U.S. Treasury Secretary Scott Bessent agreed to cancel their meeting set for Thursday, as Seoul and Washington have reached a trade deal with the two officials having met in person at the White House on Wednesday, according to a Seoul official.
sshluck@yna.co.kr
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