The administration of U.S. President Donald Trump announced an action plan to rebuild the country's shipbuilding industry, formalizing its intent to cooperate with Korea and Japan.
On the 13th (local time), the White House released a 42-page "America's Maritime Action Plan" under the names of Secretary of State Marco Rubio (who is also serving as national security adviser) and Office of Management and Budget (OMB) Director General Russell Vought. The document lays out a blueprint to revive the competitiveness of the U.S. shipbuilding industry.
The action plan said measures are needed to "reduce dependence on unreliable suppliers through enhanced cooperation with allies and partners," adding it will "continue the historic cooperation with Korea and Japan on the revitalization of U.S. shipbuilding."
In particular, the document said the United States has secured a dedicated investment for the shipbuilding industry of at least $150 billion (about 217 trillion won). This is interpreted as referring to the "MASGA (Make American Shipbuilding Great Again)" project— a $150 billion shipbuilding-only investment package allocated as part of the $350 billion (about 505.4 trillion won) U.S.-bound investment that Korea agreed to in the U.S.-Korea trade deal concluded last year.
The action plan also included a "Bridge Strategy," a cooperation scheme with foreign shipbuilders. Under this phased cooperation model, an overseas shipbuilder that has signed a ship sales contract with the United States would invest by acquiring a shipyard in the United States or forming a partnership with local corporations, and build part of the initial volume in its home country until a U.S. production base is established.
If this strategy is implemented, Korean shipbuilders could gain a path to produce part of their U.S. contract volumes domestically. However, a key question is how to resolve legal constraints such as the Jones Act, enacted in 1920, which requires for vessels transporting cargo between U.S. ports: ▲ U.S.-built ▲ U.S.-flagged ▲ U.S.-owned (at least 75% equity).
The White House also recommended imposing a universal port entry fee on all foreign-made commercial vessels calling at U.S. ports. If a fee of 1 cent per kilogram of cargo is levied, about $66 billion (about 90.304 trillion won) could be raised over 10 years; at 25 cents, about $1.5 trillion (about 2,166 trillion won) could be secured, to be used as a "Maritime Security Trust Fund."
Earlier, the United States determined that China expanded its dominance in the maritime, logistics, and shipbuilding industries through unfair policies, and decided to implement entry fee measures on Chinese-made vessels starting in Oct. last year. However, implementation has been deferred for one year under a subsequent leaders' agreement between the United States and China.
In addition, the action plan proposed establishing "maritime prosperity zones," fostering and reforming training for shipbuilding personnel, and expanding U.S.-made and U.S.-flagged commercial fleets.