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'MASGA' dead in the water? Essential regulatory changes languish in committee
This article is by Kim Hyo-seong and read by an artificial voice.
U.S. regulatory changes seen as critical to the "Make American Shipbuilding Great Again" (MASGA) project - a central element in the Korea-U.S. customs accord - are moving slowly.
Since the 119th Congress convened in January, three shipbuilding-related bills have been introduced, according to the U.S. Congress on Monday: the Ensuring Naval Readiness Act, which would amend the Barnes-Tollefson Act that bans overseas construction or repair of U.S. naval vessels; the Merchant Marine Allies Partnership Act, which would amend the Jones Act's domestic construction requirement for U.S.-flag commercial vessels; and the SHIPS for America Act, which would give tax benefits to investors in U.S. shipyards.
However, only the Merchant Marine Allies Partnership Act has advanced. The naval readiness bill is sitting in the Senate Armed Services Committee, and the SHIPS for America Act has been referred to the Senate Committee on Commerce, Science and Transportation and a House subcommittee on the Coast Guard and maritime transportation - with no hearings scheduled. All three measures remain in the earliest stage of the U.S. legislative process, well off any floor vote and presidential signature.
While the slow progress is partly due to the limited legislative output - only 31 bills have been enacted so far this Congress - and the difficulty of overturning decades-old regulations, the Korean shipbuilding industry sees the pace as troubling, especially after U.S. President Donald Trump declared in February that he intended to revive U.S. shipbuilding.
"There is concern that companies could be pressured into investing in the United States while still constrained by existing regulations, despite Korea's pledge of the $150 billion MASGA project" for Korea-U.S. cooperation in the shipbuilding sector, a shipbuilding industry insider said.
Industry observers point to domestic factors in the United States. The American Federation of Labor and Congress of Industrial Organizations' metalworkers division has opposed the use of allied shipyards since last year, under the previous Joe Biden administration, arguing that it threatens jobs and security.
"U.S. politicians cannot ignore union pressure, so it will take time to gather enough votes to pass such bills," said Rhee Shin-hyung, a professor of naval architecture and ocean engineering at Seoul National University.
National security and military confidentiality are also factors.
"The U.S. makes decisions based strictly on its own security. Even with allies, there is little reason to rush a law change that could risk leaks abroad concerning weapons systems on naval vessels," said an executive at a shipbuilding firm, who spoke on condition of anonymity.
Some analysts noted that U.S. concerns may be heightened by the fact that Korean shipbuilding workers have in recent years been recruited by Chinese shipyards.
"The fact that the need for shipbuilding support legislation is being discussed in the U.S. Congress is significant," said Yang Jong-seo, senior researcher at the Korea Eximbank Overseas Economic Research Institute. The Korean government should work to ensure U.S. investment becomes an opportunity for domestic shipbuilders."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom staff.
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By Newsroom of the Korea JoongAng DailyThis article is by Kim Hyo-seong and read by an artificial voice.
U.S. regulatory changes seen as critical to the "Make American Shipbuilding Great Again" (MASGA) project - a central element in the Korea-U.S. customs accord - are moving slowly.
Since the 119th Congress convened in January, three shipbuilding-related bills have been introduced, according to the U.S. Congress on Monday: the Ensuring Naval Readiness Act, which would amend the Barnes-Tollefson Act that bans overseas construction or repair of U.S. naval vessels; the Merchant Marine Allies Partnership Act, which would amend the Jones Act's domestic construction requirement for U.S.-flag commercial vessels; and the SHIPS for America Act, which would give tax benefits to investors in U.S. shipyards.
However, only the Merchant Marine Allies Partnership Act has advanced. The naval readiness bill is sitting in the Senate Armed Services Committee, and the SHIPS for America Act has been referred to the Senate Committee on Commerce, Science and Transportation and a House subcommittee on the Coast Guard and maritime transportation - with no hearings scheduled. All three measures remain in the earliest stage of the U.S. legislative process, well off any floor vote and presidential signature.
While the slow progress is partly due to the limited legislative output - only 31 bills have been enacted so far this Congress - and the difficulty of overturning decades-old regulations, the Korean shipbuilding industry sees the pace as troubling, especially after U.S. President Donald Trump declared in February that he intended to revive U.S. shipbuilding.
"There is concern that companies could be pressured into investing in the United States while still constrained by existing regulations, despite Korea's pledge of the $150 billion MASGA project" for Korea-U.S. cooperation in the shipbuilding sector, a shipbuilding industry insider said.
Industry observers point to domestic factors in the United States. The American Federation of Labor and Congress of Industrial Organizations' metalworkers division has opposed the use of allied shipyards since last year, under the previous Joe Biden administration, arguing that it threatens jobs and security.
"U.S. politicians cannot ignore union pressure, so it will take time to gather enough votes to pass such bills," said Rhee Shin-hyung, a professor of naval architecture and ocean engineering at Seoul National University.
National security and military confidentiality are also factors.
"The U.S. makes decisions based strictly on its own security. Even with allies, there is little reason to rush a law change that could risk leaks abroad concerning weapons systems on naval vessels," said an executive at a shipbuilding firm, who spoke on condition of anonymity.
Some analysts noted that U.S. concerns may be heightened by the fact that Korean shipbuilding workers have in recent years been recruited by Chinese shipyards.
"The fact that the need for shipbuilding support legislation is being discussed in the U.S. Congress is significant," said Yang Jong-seo, senior researcher at the Korea Eximbank Overseas Economic Research Institute. The Korean government should work to ensure U.S. investment becomes an opportunity for domestic shipbuilders."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom staff.