Trump Unveils Historic Shipbuilding Plan with South Korea and Japan

The White House released "America's Maritime Action Plan," as Seoul and Washington are pushing to strengthen cooperation under the former's "Make American Shipbuilding Great Again (MASGA)" proposal as part of a bilateral trade and investment agreement, reports Yonhap news agency.

In April, Trump signed an executive order, titled "Restoring America's Maritime Dominance," which calls for drawing up the plan. Secretary of State Marco Rubio and Director of the Office of Management and Budget Russell Vought, in coordination with other Cabinet members, developed the plan.

The Trump administration has been keen on shoring up America's shipbuilding sector as China is known to have over 230 times the shipbuilding capacity of the United States in the midst of an intensifying Sino-U.S. strategic competition.

"The United States will consult with China on shipbuilding capacity issues and continue its historic cooperation with the Republic of Korea and Japan on revitalising U.S. shipbuilding," the document says, codifying collaboration with the two core Asian allies in the plan.

The plan proposes a "Bridge Strategy" for a multi-ship buy, in which the first ships in a shipbuilding contract are built in a foreign shipbuilder's home shipyard, while concurrent direct capital investments are made in a U.S. shipyard they have purchased or partnered with to eventually onshore construction in the U.S.

The strategy apparently reflects a reality of the U.S.' poor domestic shipbuilding capacity at a time when it seeks to secure more vessels at a fast pace.

The document also points out that Trump has secured at least US$150 billion of dedicated investment for America's shipbuilding industry, noting that the U.S. Commerce Department is working to mobilise these funds to achieve the investments.

For the MASGA initiative, South Korea has earmarked $150 billion, part of a $350 billion investment that it has pledged under the trade deal with the Trump administration in return for Washington lowering "reciprocal" tariffs on the Asian country to 15 percent from 25 per cent.

In the document, the Trump administration stressed the importance of industrial cooperation with allies and partners.

"Close coordination with allies and partners will align trade policies to enhance investment in the U.S. maritime sector," it said.

"Diplomatic engagement and coalition building ensure that U.S. trade enforcement measures are reinforced by allied action, while targeted incentives encourage shipbuilders from partner nations to invest directly in America's MIB." MIB is short for maritime industrial base.

- IANS