South Korea's Appeal to the U.S. Over Car Carrier Ships Fee

In a significant move to safeguard its automotive exports, the South Korean government has formally requested the United States to exempt car carrier ships from a newly proposed entry fee. This fee, set to be imposed on foreign-built car carriers from October 14, has raised concerns over its potential impact on the trade relations between the two nations.

Details of the U.S. Policy and South Korea's Response

The U.S. policy, announced by the Office of the United States Trade Representative (USTR), aims to counter China's dominance in the shipbuilding and shipping sectors while revitalizing the U.S. shipbuilding industry. South Korea's Ministries of Trade, Industry, and Energy, and Oceans and Fisheries, have highlighted the unintended burdens this fee could place on industries in both countries, urging for a reconsideration.

Seeking Clarity and Limitations

South Korea has requested that the entry fee be clearly defined and limited to its originally intended targets, implicitly suggesting an exclusion for Korean companies. Additionally, the government has proposed a cap on the frequency of these fees, considering the multiple entries car carrier ships make into U.S. ports annually.

Highlighting Investments and Double Burdens

The statement also underscored the substantial investments made by Korean automakers in the U.S., including a $21 billion pledge during the Trump administration's second term. It warned that the new fee, atop existing tariffs, would doubly burden exporters and could harm the economic cooperation between the two allies.