South Korea-U.S. Trade Deal Stalled Over Submarine Dispute

Negotiations for a crucial trade agreement between South Korea and the United States are facing unexpected delays, primarily due to disagreements over the construction of South Korea’s nuclear-powered submarines. Experts suggest that the U.S. proposal to build these submarines in American shipyards may be unrealistic without significant investments and workforce training. The impasse raises concerns about the future of the trade deal, which encompasses both trade and security elements.

Discrepancies in Submarine Construction Plans

The ongoing deadlock in finalizing the trade deal has drawn attention to the contentious issue of where South Korea’s nuclear-powered submarines should be constructed. Experts, including Jeong Han-beom, a security policy professor at the Korea National Defense University, argue that the U.S. shipyards lack the necessary capacity and manpower to undertake such a project without substantial investment. Jeong emphasized that preparing U.S. facilities for submarine construction would significantly deviate from South Korea’s current plans, both in terms of time and cost.

Kim Heung-kyu, a political science professor at Ajou University, highlighted the importance of building submarines in South Korea to protect national interests and advanced shipbuilding technologies. He criticized U.S. President Donald Trump’s suggestion that the submarines be built in Philadelphia, describing it as a move aimed at domestic political appeal rather than a practical solution. Kim pointed out that the uncertainty surrounding the timeline for construction at U.S. shipyards poses a significant risk for South Korea.

During a summit on October 29, South Korean President Lee Jae Myung requested U.S. approval for South Korea to build nuclear-powered submarines for maritime defense operations. Trump later claimed on social media that he had granted permission, contingent on construction occurring in the U.S. However, South Korean officials clarified that the agreement was intended for submarine construction to take place in South Korea.

Obstacles to Finalizing the Trade Agreement

The trade deal, which is critical for both nations, is now hindered by the U.S. Department of Energy’s review process regarding South Korea’s use of enriched uranium as fuel for the submarines. Jeong noted that this review is being conducted from a narrow policy perspective, rather than considering the broader implications of the alliance between the two countries. This has created a significant obstacle in the negotiations.

Ministries debate shipbuilding jurisdiction amid Korea-U.S. negotiations

Despite the current stalemate, Kim remains optimistic that the deadlock will soon be resolved. He argues that the U.S. risks losing a vital strategic partnership with South Korea if the negotiations collapse. Kim believes that if South Korea clearly articulates its position on submarine construction, the U.S. is unlikely to let the entire deal fall apart over this issue. He asserts that the U.S. has limited alternatives if the agreement with South Korea fails.

As the situation develops, both nations will need to navigate these complex issues to reach a mutually beneficial agreement that addresses trade and security concerns.

 

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