Unlike South Korea
The Federation of Korean Industries said in its report on Oct. 21 that U.S.-China trade disputes have resulted in a decline in South Korean products’ shares in both the U.S. and Chinese markets and an increase in ASEAN products’ shares in the same markets.
According to the report, last year, the United States and China reduced their imports by 5.7 percent as compared with 2018 but their imports from the ASEAN region increased 20.3 percent. On the other hand, their imports from South Korea dropped 10.6 percent. From 2018 to 2020, ASEAN and South Korean products’ shares in the U.S. and Chinese import markets increased 2.6 percentage points and fell 0.3 percentage point, respectively.
In the first half of this year, the exports from the region to the United States and China increased 24.9 percent and 38.1 percent from a year ago, respectively. In that period, South Korea’s exports to the United States increased 23.3 percent, its exports to China increased 25.5 percent, Japan’s exports to the United States increased 17.7 percent and its exports to China increased 27.2 percent.
Of the 10 members of the ASEAN, Vietnam in particular rose from 12th to sixth in the U.S. import market from 2018 to the first half of this year. After the United States and China reached a partial agreement in January 2020, China’s exports to the United States increased 26.7 percent and the United States’ exports to China jumped 55 percent in the first half of this year.
In 2020, China’s exports to and imports from the United States fell 5.3 percent and 11.9 percent as compared with 2018, respectively. However, China’s total exports increased 5 percent in that period. As a result, China’s share in the global export market rose from 12.7 percent to 14.9 percent from 2018 to 2020.
The United States’ trade deficit with China fell from US$417.6 billion to US$310.8 billion from 2018 to 2020. Last year, however, the United States’ exports dropped 13 percent year on year and its annual trade deficit hit an all-time high of US$905 billion.
“The importance of the ASEAN region has increased more rapidly since the disputes started in 2018,” the federation explained, adding, “In this regard, the Comprehensive Economic Partnership Agreement between South Korea and Indonesia needs to be ratified and become effective as early as possible and the same applies to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.”