{"id":2196804,"date":"2022-06-14T15:20:30","date_gmt":"2022-06-14T06:20:30","guid":{"rendered":"https:\/\/www.nknews.org\/pro\/?p=2196804"},"modified":"2023-04-05T16:12:17","modified_gmt":"2023-04-05T07:12:17","slug":"how-bidens-buy-american-rule-harms-the-us-south-korea-alliance","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/06\/how-bidens-buy-american-rule-harms-the-us-south-korea-alliance\/","title":{"rendered":"How Biden\u2019s \u2018Buy American\u2019 rule harms the US-South Korea alliance"},"content":{"rendered":"

When U.S. presidents visit South Korea, one place that is almost always on their itinerary is <\/span>the Demilitarized Zone<\/span><\/a>. The inter-Korean border serves as a reminder of the ongoing conflict on the Korean Peninsula, and a convenient spot for photo-ops to appear resolute and firm in the face of a hostile enemy.<\/span><\/p>\n

But President Joe Biden did not adhere to tradition on his first trip to Asia. Instead he <\/span>visited<\/span><\/a> Samsung\u2019s semiconductor plant and <\/span>Hyundai Motor Group<\/span><\/a> and spoke about supply chains for microchips and investment in the U.S. Cooperation on critical and emerging technologies was also high on the agenda during his summit with South Korean President Yoon Suk-yeol, as Seoul signed on to <\/span>the Indo-Pacific Economic Framework<\/span><\/a>.<\/span><\/p>\n

The mutual commitment to cooperation extended to the defense industry. The two leaders agreed to strengthen partnerships in defense sector supply chains, joint development and manufacturing, while also deciding to begin discussions on a <\/span>Reciprocal Defense Procurement (RDP) agreement<\/span><\/a>.\u00a0<\/span><\/p>\n

That last part will be of especially great importance going forward, as an RDP agreement would allow South Korea to get around Biden\u2019s \u201cBuy American\u201d rule for government procurements that has prevented greater defense cooperation with Seoul in key areas. The problem is that U.S. domestic politics could get in the way.<\/span><\/p>\n

\"\"

The production of Javelin anti-tank missiles, which the U.S. is providing to Ukraine, is limited by the fact that each missile has more than 250 chips, an example of one area where U.S. and South Korean cooperation could help | Image: U.S. Marine Corps photo by Lance Cpl. Jonathan Willcox via Wikimedia Commons<\/a> (CC BY-SA 4.0<\/a>)<\/span><\/p><\/div>\n

THE RISKS OF \u2018BUYING AMERICAN\u2019<\/b><\/p>\n

Since Russia began its invasion of Ukraine, Western countries have provided significant assistance to Kyiv through <\/span>arms<\/span><\/a>, <\/span>intelligence<\/span><\/a> and <\/span>financial aid<\/span><\/a>. But there have been growing concerns about whether the steady production and supply of weapons is sustainable.\u00a0<\/span><\/p>\n

Notably, Ukrainian forces have been burning through stockpiles of American-made <\/span>Javelin anti-tank missiles<\/span><\/a>, and the U.S. ability to provide more is limited by a <\/span>deficit of semiconductors and microchips<\/span><\/a>, since more than 250 chips go into every Javelin system. The U.S. will need to work with its allies like South Korea to address these shortages and fill gaps in weapons inventories.<\/span><\/p>\n

While Joe Biden has championed <\/span>multilateralism<\/span><\/a> and <\/span>the liberal international order<\/span><\/a>, his actual commitment to the kind of multilateralism that would help address such shortages has been limited. Nothing exemplifies this better than his <\/span>\u201cBuy American\u201d rule<\/span><\/a>, which will require that <\/span>75% <\/span><\/a>of all U.S. government procurements be domestically produced by 2029, up from 55% today.<\/span><\/p>\n

The rule has hindered South Korea from cooperating with the U.S. defense industry in at least two areas \u2014 steel and semiconductors.\u00a0<\/span><\/p>\n

The Biden administration has largely maintained the Trump administration\u2019s <\/span>tariffs and quotas on steel imports<\/span><\/a>, which capped South Korea\u2019s export of steel to the U.S. at a <\/span>yearly limit<\/span><\/a> of 2.63 million tons. And while Samsung will be able to supply its American-made chips and semiconductors for U.S. arms developers when its <\/span>Texas plant<\/span><\/a> is operational, other South Korean chip manufacturers based in South Korea won\u2019t be able to do so.<\/span><\/p>\n

Formalizing a RDP agreement between Seoul and Washington would help to ameliorate that situation as it would reduce or eliminate trade barriers for both countries\u2019 defense industries. So far, the U.S. has signed RDP agreements with <\/span>28 countries<\/span><\/a>, including the U.K., Australia, Germany, Japan and Lithuania.<\/span><\/p>\n

However, it is difficult to imagine that Washington and Seoul will be able to sign an RDP agreement this year due to the <\/span>upcoming midterm elections<\/span><\/a> in the U.S., as Biden faces an array of major challenges like <\/span>high inflation rates<\/span><\/a>, <\/span>stagnant wages<\/span><\/a>, <\/span>low poll numbers<\/span><\/a>\u00a0and <\/span>resurging Republicans<\/span><\/a>.<\/span><\/p>\n

\"\"

U.S. President Joe Biden and South Korean President Yoon Suk-yeol tour Samsung Electronic’s Pyeongtaek Campus on May 20, 2022 | Image: The White House Facebook<\/a><\/p><\/div>\n

THE BENEFITS OF TRADE BARRIER EXEMPTIONS<\/b><\/p>\n

Yoon has enjoyed relatively good <\/span>poll numbers<\/span><\/a> coming off the summit with Biden and <\/span>victory<\/span><\/a> for his party in the local elections, but this honeymoon period will not last. Like Biden, Yoon faces an array of economic problems, including <\/span>inflation<\/span><\/a>, <\/span>interest rate hikes<\/span><\/a>, <\/span>rising energy<\/span><\/a> and <\/span>food prices<\/span><\/a> and <\/span>a weakening currency<\/span><\/a>.\u00a0<\/span><\/p>\n

Yoon needs an economic win, and the easiest way for Biden to help Yoon and strengthen the ROK-U.S. alliance is by quickly formalizing an RDP agreement with South Korea.<\/span><\/p>\n

It would be a win-win solution. On the one hand, it would allow Yoon to show South Korean voters that he could deliver high-tech jobs at a time of global economic uncertainty. On the other hand, it would allow Biden to <\/span>pull South Korea closer toward the U.S.<\/span><\/a> and replenish badly needed weapons more quickly and cost-effectively. It would also strengthen the alliance and help support continued U.S. military support for Ukraine.<\/span><\/p>\n

Formalizing an RDP agreement and exempting ROK defense contractors from the \u201cBuy American\u201d rule would also enable <\/span>South Korea\u2019s respectable defense industry<\/span><\/a> to supply U.S. defense manufacturers with more affordable steel, microchips and microprocessors that the U.S. is struggling to produce on its own quickly. This will help reduce the price of \u201cpremium\u201d American military hardware, thus making imports of American-made weapons more palatable for South Korea.<\/span><\/p>\n

This symbiotic relationship between South Korea and the U.S. would help to mature the alliance and transform it into the global comprehensive strategic alliance that both Yoon and Biden advocate.<\/span><\/p>\n

\"\"

Biden and Yoon at Samsung Electronic’s Pyeongtaek Campus on May 20, 2022 | Image: The White House Facebook<\/a><\/p><\/div>\n

WHAT\u2019S NEXT<\/b><\/p>\n

Countries naturally need to ensure that they are not overly dependent on importing vital supplies from foreign countries whose interests might be opposed to theirs. South Korea\u2019s reliance on <\/span>China for urea<\/span><\/a> and <\/span>Japan for key semiconductor parts<\/span><\/a> underlined this risk.<\/span><\/p>\n

Even so, policies like Biden\u2019s \u201cBuy American\u201d rule are counterproductive insofar as they are allowed to prevent mutually beneficial economic and defense cooperation between allies.<\/span><\/p>\n

Due to the shortage of weapons, microchips and raw materials, South Korea and the U.S. will likely conclude an RDP agreement relatively soon. South Korea is an important strategic ally, and its quick decision to join the Indo-Pacific Economic Framework in its infancy will go a long way toward gaining Washington\u2019s favor.<\/span><\/p>\n

However, domestic politics will stop Biden from formalizing an RDP agreement for several more months. When the U.S. and South Korea do reach an RDP agreement, it\u2019s likely to lead to a new and productive chapter in their relationship. But until then, their cooperation will be unable to fully flourish like it could.<\/span><\/p>\n

Edited by Bryan Betts<\/span><\/i><\/p>\n

Defense & Security<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

When U.S. presidents visit South Korea, one place that is almost always on their itinerary is the Demilitarized Zone. The inter-Korean border serves as a reminder of the ongoing conflict on the Korean Peninsula, and a convenient spot for photo-ops to appear resolute and firm in the face of a hostile enemy. But President Joe […]<\/p>\n","protected":false},"author":3665,"featured_media":2196805,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[26,28],"class_list":["post-2196804","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-defense-security","tag-inter-korean-foreign-relations"],"yoast_head":"\nHow Biden\u2019s \u2018Buy American\u2019 rule harms the US-South Korea alliance - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2022\/06\/how-bidens-buy-american-rule-harms-the-us-south-korea-alliance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Biden\u2019s \u2018Buy American\u2019 rule harms the US-South Korea alliance - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"When U.S. presidents visit South Korea, one place that is almost always on their itinerary is the Demilitarized Zone. 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