US Urges Moon Administration to Clarify Its Ambiguous Strategy and Position

US Omits 'Korea' in Asian Economic Agreement

Government Warns Against Overinterpretation
Trade Experts Criticize Government's Lax Response

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] Concerns about being 'passed over' have resurfaced as the United States, while pushing for a new economic trade agreement with Asian countries, did not mention its traditional ally Korea. Although it is not a complete passing over, some analysts interpret this as forcing Korea, which still maintains a strategically ambiguous stance between China and the US, to make a choice. The government cautioned against overinterpretation, stating that the intention was to strengthen economic cooperation with the mentioned countries, not to exclude Korea.

An official from the Ministry of Trade, Industry and Energy said on the 10th regarding US Commerce Secretary Gina Raimondo’s omission of Korea while seeking a new economic cooperation framework with Asian countries, "Secretary Raimondo visited Japan, Singapore, and Malaysia during her first Asia tour since taking office last month, and she mentioned strengthening cooperation mainly with those visited countries," adding, "This means strengthening economic cooperation with these countries, not excluding Korea from cooperation."

Earlier, Secretary Raimondo stated in an interview with Bloomberg News, "A strong new economic framework will emerge in the first quarter of next year," mentioning Japan and Singapore. Korea was not mentioned.

The Ministry official added, "From Secretary Raimondo’s remarks, this initiative is not a ‘trade deal’ like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), but rather means to further strengthen the economic cooperation framework."

However, trade experts have a different view from the government. Professor Kang In-soo of Sookmyung Women’s University said in a phone interview with Asia Economy, "The US is strongly pushing to reorganize the global supply chain centered on the US and its allies by excluding China from various angles, including holding the Democracy Summit and addressing not only economic issues but also human rights and environment," adding, "The Moon Jae-in administration’s strategic ambiguity between China and the US seems to displease the US, and Secretary Raimondo’s remarks should be understood in this context."

There is also analysis that Korea’s delay in applying for CPTPP membership is due to watching the US’s stance. The government plans to announce its intention to join by next month but has yet to make a decision. Because the US’s position on CPTPP is unclear, it is difficult for the Korean government to decide.

The CPTPP was originally the Trans-Pacific Partnership (TPP) led by the US, but after President Donald Trump withdrew the US, the remaining 11 countries including Japan and Australia revised and established the agreement. Taiwan and China applied for membership in September this year.

Professor Kang, however, believes the US will find it difficult to exclude Korea. He said, "The US needs Korea due to its large trade volume and especially in semiconductors, so Korea is an important economic cooperation partner," adding, "The US is pressuring Korea to ‘choose the right side’ and to clearly state its position between the US and China."

Trade experts see Korea’s participation in the 2022 Beijing Winter Olympics as a significant milestone in its relationship with the US. While the US has boycotted by sending no diplomatic representatives, the Blue House has stated it is not considering a boycott. Korea’s stance on the Olympics could also impact trade relations. A trade expert said, "Countries like Australia and France have declared a boycott of the Beijing Winter Olympics," adding, "Korea is in a situation where it must express its position on this matter in some way."