The South Korean government will promote increase in imports of shale gas, semiconductor, automobile, aircraft and aviation parts as a means to narrow deficit in trade with the United States to build defense against the new administration under President Donald Trump whose trade doctrine is outright inwardly and hostile towards free trade.

In outlining external economic policy for 2017, Seoul on Thursday said it will brace up for a trade contest with the U.S. amid the possibility of Korea being bundled up in the group of currency manipulating states and renegotiation on bilateral Free Trade Agreement under “American First and Hire American” slogan of the Trump administration.

“External uncertainties have escalated with the U.S. and China that have high economic and trade influence on our economy,” said deputy prime minister for economy Yoo Il-ho in presiding the cabinet meeting.

To form stronger joint front with other nations against U.S. protectionist trade policy and rely less on the U.S. and China, Seoul will work on joining the multilateral platforms such as the Common Market of the South (MERCOSR). It will stretch bilateral free trade ties with additional countries while upgrading existing pacts.

Seoul will send a delegation to Washington as soon as possible to strengthen dialogue with the new administration and pitch its efforts to improve trade imbalance with the U.S. It will mull upping imports of oil from U.S. shale field, transportation and industrial equipment. Korea last year posted a surplus of $23.3 billion in trade with the U.S.

As for China, the country’s largest trade partner who has been blatantly finding fault with Korean products after Seoul announced the plan of deploying U.S. anti-missile system Terminal High Altitude Area Defense (THAAD), the government will try to talk out differences through bilateral talks and if necessary take the matter to the World Trade Organization (WTO).

The government in March will unveil long-term commerce outline to reflect the current challenges and changes in the trade order.

By Cho Si-young

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