US hit for unilaterally pursuing self-interests
The United States has come under criticism again for launching a new initiative designed to favor domestically manufactured bio, drug and other medical products. U.S. President Joe Biden signed an executive order Monday to implement the National Biotechnology and Biomanufacturing Initiative to expand domestic production and create new jobs in the U.S.
"(The initiative) will ensure we can make in the United States all that we invent. It will create jobs at home, build stronger supply chains and allow lower prices for American families," the White House said in a statement. "The U.S. has relied too heavily on foreign materials and bioproduction and our past offshoring of critical industries, including biotechnology, threatens our ability to access materials like important chemicals and active pharmaceutical ingredients."
To sum it up, the new initiative seeks to revive the U.S.' manufacturing industries and generate jobs while effectively containing China in the global market. The U.S. move has caught domestic companies off guard again, as it came on the heels of the U.S. legislation of the Inflation Reduction Act (IRA), which calls for the provision of tax incentives for buyers of electric vehicles (EVs) manufactured in North America. The act will deal blows to Korean carmakers such as Hyundai Motor which have no EV assembly lines there.
This "Made in America" policy will inflict serious setbacks on South Korea's mainstay and next-generation industries. For instance, the overseas sales of bio and health products have continued to increase in the first half of this year, emerging as one of the country's top 10 major export items. Domestic companies have been leading the global market, riding on their tech prowess based on the contract development and manufacturing organization (CDMO) device.
For starters, Samsung Biologics and SK Bioscience are producing vaccines of Modena and Novavax, respectively, here. Yet the domestic firms will suffer heavily should the U.S. block production outside America. If the firms relocate their plants to the U.S., they will have to cut jobs here. South Korea has been nurturing the bio sector as a new growth engine. Unless modified, the U.S. egocentric move could shake the foundations of the fledgling domestic bio industry.
The Biden administration cannot avoid criticism, as such a unilateral trade policy trespasses on the long-cherished value of free trade. The U.S.' self-centered policies, mainly aimed to maintain the upper hand over China, will also seriously undermine its alliance with South Korea. The Yoon Suk-yeol government has already decided to join the Indo-Pacific Economic Framework (IPEF) to boost economic and technological cooperation with the U.S. and its allies in the region.
Yet the U.S. move discriminating against Korean-made goods runs counter to the principles of free and fair trade as well as the spirit of economic security alliance. The discriminatory nature of the IRA also violates the Korea-U.S. Free Trade Agreement and World Trade Organization (WTO) rules. The U.S. should stop its "America first" initiatives. Instead, it must push for its policies based on mutual respect to promote free trade and enhance co-prosperity. The Yoon administration should spare no efforts to protect our national interests.
The United States has come under criticism again for launching a new initiative designed to favor domestically manufactured bio, drug and other medical products. U.S. President Joe Biden signed an executive order Monday to implement the National Biotechnology and Biomanufacturing Initiative to expand domestic production and create new jobs in the U.S.
"(The initiative) will ensure we can make in the United States all that we invent. It will create jobs at home, build stronger supply chains and allow lower prices for American families," the White House said in a statement. "The U.S. has relied too heavily on foreign materials and bioproduction and our past offshoring of critical industries, including biotechnology, threatens our ability to access materials like important chemicals and active pharmaceutical ingredients."
To sum it up, the new initiative seeks to revive the U.S.' manufacturing industries and generate jobs while effectively containing China in the global market. The U.S. move has caught domestic companies off guard again, as it came on the heels of the U.S. legislation of the Inflation Reduction Act (IRA), which calls for the provision of tax incentives for buyers of electric vehicles (EVs) manufactured in North America. The act will deal blows to Korean carmakers such as Hyundai Motor which have no EV assembly lines there.
This "Made in America" policy will inflict serious setbacks on South Korea's mainstay and next-generation industries. For instance, the overseas sales of bio and health products have continued to increase in the first half of this year, emerging as one of the country's top 10 major export items. Domestic companies have been leading the global market, riding on their tech prowess based on the contract development and manufacturing organization (CDMO) device.
For starters, Samsung Biologics and SK Bioscience are producing vaccines of Modena and Novavax, respectively, here. Yet the domestic firms will suffer heavily should the U.S. block production outside America. If the firms relocate their plants to the U.S., they will have to cut jobs here. South Korea has been nurturing the bio sector as a new growth engine. Unless modified, the U.S. egocentric move could shake the foundations of the fledgling domestic bio industry.
The Biden administration cannot avoid criticism, as such a unilateral trade policy trespasses on the long-cherished value of free trade. The U.S.' self-centered policies, mainly aimed to maintain the upper hand over China, will also seriously undermine its alliance with South Korea. The Yoon Suk-yeol government has already decided to join the Indo-Pacific Economic Framework (IPEF) to boost economic and technological cooperation with the U.S. and its allies in the region.
Yet the U.S. move discriminating against Korean-made goods runs counter to the principles of free and fair trade as well as the spirit of economic security alliance. The discriminatory nature of the IRA also violates the Korea-U.S. Free Trade Agreement and World Trade Organization (WTO) rules. The U.S. should stop its "America first" initiatives. Instead, it must push for its policies based on mutual respect to promote free trade and enhance co-prosperity. The Yoon administration should spare no efforts to protect our national interests.
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