Feb 22 • 23:35 UTC 🇰🇷 Korea Hankyoreh (KR)

The sharp edge of U.S. Trade Law Section 301 targets Asian countries for 'overproduction'

The Trump administration is gearing up to use Trade Law Section 301 to apply commercial pressure on Asian countries, particularly targeting those with overproduction structures.

The Trump administration has announced plans to utilize Trade Law Section 301 to impose trade pressure on several Asian nations, specifically targeting those involved in overproduction, including China and rice-exporting countries. U.S. Trade Representative Jamison Greer revealed in an interview that investigations into overproduction capacities will begin, as these countries are producing more than they can consume, distorting global prices and disregarding fundamental economic principles. This marks a significant step as Section 301 investigations will likely encompass major trading partners and highlight the structural issues surrounding overproduction in the region.

Greer further detailed that the trade investigations could extend to South Korea's key export industries, including steel, aluminum, batteries, and electric vehicles, suggesting a broad impact on these sectors. In addition, he indicated that the U.S. would examine international rice markets that unfairly pressure American rice farmers due to massive subsidies abroad. This signifies a potential widening of investigation topics, specifically focusing on agricultural products, alongside industrial ones, which could affect global trade dynamics and agricultural policies in these countries.

One noteworthy aspect of Greer's approach is the emphasis on 'overproduction' as a structural problem rather than singling out specific countries. While Trade Law Section 301 typically focuses on individual countries, the common issue of overproduction can allow simultaneous investigations across multiple nations, which may include South Korea, Vietnam, and India. This method of addressing a shared problem presents a strategic maneuver that can lead to wide-ranging implications for U.S.-Asia trade relations even under existing global constraints, providing a potential for simultaneous action against a number of countries in line with U.S. trade interests.

📡 Similar Coverage