Korea Urged to Counter U.S. Trade Pressure
Businesses are advised to expand talks with Congress, states and communities while protecting practical gains Trade pressure from the United States is expected to persist even if the political landscape is reshaped after the U.S. midterm elections. With pressure anticipated from both the administrat
Korea is urged to develop strategies to counter trade pressure from the United States following the U.S. midterm elections, according to the Korea Chamber of Commerce and Industry. In a report released on November 10, the organization stressed the need for a practical-benefit approach to address tariffs, investment, and legislation as interlinked issues rather than separate concerns.
The report, titled "Outlook for Trade Policy After the U.S. Midterm Elections," advised businesses to engage in talks with Congress, states, and communities while protecting existing gains.
For tariffs, the focus should be on Section 301 of the Trade Act and Section 232 of the Trade Expansion Act. During Section 301 investigations, Korea should highlight the contribution of Korean intermediate goods and equipment to U.S. manufacturing, while negotiations should define tariff reduction conditions based on local investment.
Regarding Section 232, negotiations should prioritize item-by-item assessments based on export shares and U.S. investment plans, with practical damage mitigation through careful examination of product classifications, country of origin, and multiple tariff applications.
In the investment sector, companies face challenges from early implementation demands and potential review by a new, likely Democratic-led Congress. Korea should prioritize projects aligning with the company's strengths and expand opportunities for SMEs and mid-sized partners to enter the U.S. market. The report also recommended leveraging the preferential treatment clause for Korean suppliers in the Korea-U.S. strategic investment MOU and advocating for stable investment incentives and improved visa systems for skilled professionals.
Effective communication with key congressional committees, state governments in investment destinations, and local communities beyond the administration-centered approach is essential. Lee Si-wook, head of economic research at the Korea Chamber of Commerce and Industry, emphasized the shift from passive policy waiting to proactive negotiations that safeguard practical interests and foster strategic investments.
The Korea Chamber of Commerce and Industry suggested public-private sector collaboration to strengthen the response system, ensuring U.S. investments translate into tangible opportunities for domestic industries and partner companies.
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