US officials considered demanding Korea raise defence spending to 3.8 pc of GDP in tariff talks: Report
Washington: Officials of US President Donald Trump’s administration considered demanding that South Korea raise its defense spending to 3.8 per cent of its gross domestic product (GDP) during tariff negotiations, a news report said, citing internal US government documents.
US officials also weighed the idea of requiring South Korea to publicly support operational flexibility of the US Forces Korea (USFK) to better deter China, The Washington Post reported, though it is not clear whether their suggestions were actually discussed in the negotiations with South Korea that were concluded last month.
The documents indicated that the Trump’s administration might intend to use tariffs to help achieve a range of national security goals beyond its stated objective to reduce America’s trade deficits and boost domestic manufacturing, the newspaper noted.
“The US also wanted Seoul to boost defense spending to 3.8 per cent of GDP, up from 2.6 per cent last year, and to increase its $1 billion-plus contribution to cover the annual costs of basing the roughly 28,500 US troops in South Korea,” the newspaper said.
It also cited an early draft of a “US-Korea agreement,” which suggested, “The South Korean government should be urged to endorse a change in the positioning of US troops stationed there under the United States Forces Korea command.”
Moreover, the document included a requirement that “Korea will issue a political statement supporting flexibility for USFK force posture to better deter China while continuing to deter (North Korea).”
Pressure has been building on Korea to boost its defense spending, as the Pentagon has said that Korea and other Asian allies are subject to the “global standard” of spending 5 per cent of their GDP, amid expectations that Trump might demand a hefty rise in Seoul’s share of the cost for stationing USFK, Yonhap news agency reported.
South Korea’s defence budget this year stands at around 61.2 trillion won (US$44.2 billion), which is about 2.32 per cent of its GDP, according to Seoul’s defence ministry.
Speculation has also persisted that the Trump administration might seek greater strategic flexibility of American troops in South Korea, as the Pentagon seeks allies’ greater “burden-sharing” and prioritizes deterring an increasingly assertive China.
Strategic flexibility is a hotly debated issue that resurfaced as Seoul and Washington are envisioning the “modernization” of their alliance. It refers to the use of US troops in South Korea for a wider range of expeditionary operations, including roles for China-related contingencies — a move further away from their traditional dedication to deterring North Korean threats.
The issues of Korea’s defense spending and the operational scope of USFK could be topics for the summit between South Korean President Lee Jae Myung and Trump, which is expected to take place later this month, as Seoul and Washington are working on shaping the summit agenda and other details.