Buenos Aires, Nov 16 (NA) – The United States has revoked the waiver of non-recurring costs for South Korea, increasing Seoul's financial burden for purchasing American weaponry, news agency Yonhap reported on Sunday, citing multiple anonymous sources familiar with the matter. According to Noticias Argentinas, the U.S. administration notified the South Korean government around August that it would abolish the waiver of non-recurring costs (CNRE) granted to its main allies, including South Korea, for the sale of American weaponry through the Foreign Military Sales (FMS) program or via a government-to-government contract. CNRE refer to the non-recurring costs incurred by U.S. defense contractors in developing and producing weaponry, such as development, design, and testing costs. The waiver of CNRE allowed South Korea to save about 5% on its American arms purchases, but with the recent abolition, Seoul's financial burden for importing American military equipment will increase, according to the sources. The same sources indicated that a similar notification was sent to other countries, including Japan, Australia, and NATO allies. Yonhap noted that this change in U.S. policy reflected President Donald Trump's transactional approach to alliances and his perception that allies had long enjoyed excessive trade surpluses with the United States. South Korean President Lee Jae-myung held a press conference at the presidential office on Friday to announce the 'joint information sheet,' which finalized the tariff and security agreement between South Korea and the United States. According to the information sheet, South Korea will invest $25 billion in purchasing American military equipment by 2030.
