Key MASGA bills stall in US Congress for a year

Expectations for MASGA cooperation are rising again in South Korea — most recently with the launch of an official body to manage a US-bound investment fund — but the most critical piece of the puzzle, deregulation on the American side, has been stalled for a year. Industry insiders warn that legislative delays in Congress, which controls the budget independent of the executive branch, could block South Korea-US cooperation regardless of the Trump administration's intentions.

The two major bills before the US Congress related to South Korea-US shipbuilding cooperation are the SHIPS for America Act — which stands for Shipbuilding and Harbor Infrastructure for Prosperity and Security — and the Open America's Waters Act, which would repeal the Jones Act.

Both bills center on opening up the US shipbuilding market. The SHIPS for America Act includes tax breaks and investment incentives to revive the US shipbuilding industry, as well as provisions allowing foreign-built vessels to operate in US waters.

The Jones Act repeal bill is more directly tied to South Korean companies entering the US market. The Jones Act currently restricts domestic US maritime routes to vessels that are built, flagged and owned in the United States — repealing it would open the door for South Korean firms to build US naval vessels.

Both bills were introduced in Congress last year but remain pending. Industry observers say the US executive branch and Congress appear to be out of step on South Korea-US shipbuilding cooperation. Shortly after President Donald Trump unveiled his Maritime Action Plan in February, The Wall Street Journal noted that <style ref="s0">"most of the proposals would require congressional approval and funding."</style>

Amid the stalemate, voices within the US Congress have grown louder calling on the Trump administration to take a more active role. Todd Young, a Republican senator and co-sponsor of the SHIPS for America Act, said in an interview with The Washington Times published Friday that <style ref="s0">"all the president has to do is make this bill his top legislative priority."</style>

Young added that for the bill to pass, "the president needs to take to the podium and push for it directly, or at least signal his support through Truth Social — but we haven't reached that point yet."

Young made similar remarks in an interview earlier this year, <style ref="s0">urging a vote on the SHIPS for America Act before the end of June ahead of the midterm elections.</style> The midterms he referred to are the biennial elections in which all 435 House seats and 33 to 34 of the 100 Senate seats are up for grabs. Once the second half of the year begins, lawmakers shift their focus to campaigning, and unresolved bills risk dying on the floor.

Domestic opposition to repealing the Jones Act presents another significant hurdle. Those against repeal are mainly industry players worried about job losses. Of late, however, Republican lawmakers have also joined the opposition. The United States is currently operating under a three-month Jones Act waiver following the war with Iran, temporarily allowing foreign-flagged vessels into US ports after the conflict disrupted energy supply chains.

The Republican argument against the waiver centers on national security. When the administration moved to extend the waiver beyond its originally scheduled August expiration, Republicans pushed back immediately. <style ref="s0">Fifty-two Republican lawmakers wrote to President Trump on Tuesday,</style> arguing that <style ref="s0">"a strong maritime industrial base is essential to the nation's economy and security."</style>

They went on to say that "the Jones Act is the strongest shield against foreign vessels exploiting America's waterways," warning that repealing it could hand foreign companies control of the US maritime industry.

The domestic US industry has echoed those concerns. The American Maritime Partnership, a US shipbuilding trade group, released a report last month saying the Jones Act waiver had dealt a heavy blow to the American shipbuilding sector. According to the AMP, Chinese-built vessels captured 23.1 percent of the US market during the waiver period, while Chinese-owned vessels accounted for 18.5 percentage points of the total. The AMP said the waiver was <style ref="s0">"diverting American cargo to foreign vessels."</style>