Martial Arts '2024 US Election and Changes in the Global Economic and Trade Environment' Seminar
"Expansion of Economic Nationalism... Need to Widely Promote the Strategic Value of Korea-US Cooperation"
As the possibility of reducing or abolishing the Inflation Reduction Act (IRA) increases with former U.S. President Trump's re-election and the Republican Party's victory in the congressional elections, experts have advised paying close attention to this development. They emphasized that since the strategic value of Korea-U.S. cooperation is high, the U.S. should be actively persuaded with the argument that easing regulations on Korean companies would also benefit the United States.
Seo Jeong-geon, a professor in the Department of Political Science and International Relations at Kyung Hee University, said at the "2024 U.S. Election and Changes in the Global Economic and Trade Environment Seminar" held by the Korea International Trade Association on the 13th at the Trade Tower in Samseong-dong, Gangnam-gu, Seoul, "With the likelihood of former President Trump’s election and the Republican Party’s victory in the congressional elections increasing, attention should be paid to the extension of tax cut bills and the possibility of reducing or abolishing the IRA."
Kim Jong-deok, head of the Economic Security Research Division at the Korea Institute for International Economic Policy, stated, "It is expected that President Trump will immediately pursue resolving the trade deficit through tariff policies upon inauguration," adding, "Although the tariffs imposed on China during Trump’s first administration had a relatively small impact on the U.S. economy, the imposition of universal tariffs on the global market could lead to inflation, a stronger dollar, and could also burden the U.S. economy."
Jo Seong-dae, head of the Trade Research Division at the Korea International Trade Association, said, "With the change of administration following the election results, it seems inevitable that the expected benefits will decrease and the trade environment will worsen due to various tariff measures," but advised, "We must coldly weigh the pros and cons and actively explain the value of the partnership with Korea to minimize the anticipated damage."
The subsequent panel discussion was chaired by Cho Sang-hyun, director of the Korea International Trade Association’s International Trade and Commerce Research Institute, with participation from Professor Park Ji-hyung of Seoul National University, Professor Kang Jun-ha of Hongik University, Professor Seo Jeong-geon, and Director Kim Jong-deok. The attendees reviewed the outlook on U.S.-China trade frictions, the global trade environment, changes in climate change policies of the next government, economic policies including tax cuts, and discussed responses to changes in U.S. policy and politics after next year.
Lee In-ho, full-time vice chairman of the Korea International Trade Association, said, "Leaders of both countries have highly valued the achievements of the Korea-U.S. security and economic alliance, and President-elect Trump also recognizes the value of our companies and understands the significant benefits of cooperation between the two countries," adding, "Since the Republican Party controls both the executive branch and the federal Congress, outreach activities to the U.S. should be strengthened in line with the changed political landscape."
About 150 people attended the event, including Vice Chairman Lee In-ho, academics, and representatives from companies operating in the U.S. such as Samsung Electronics, Hyundai Motor Company, Doosan Enerbility, and SeAH Steel.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
