Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Korea strengthens ties with EU, Japan, UK to counter US Inflation Reduction Act
Minister for Trade Ahn Duk-geun, second from left, speaks in a meeting with Britain's trade envoy to Korea, John Whittingdale, third from right, at Four Seasons Hotel Seoul, Thursday. Courtesy of Ministry of Trade, Industry and Energy
By Park Jae-hyuk
Nations voice concerns against US' discriminatory regulations on EV exporters
By Park Jae-hyuk
Korea has taken steps to team up with the European Union, Japan and other countries affected by the U.S. Inflation Reduction Act (IRA), as concerns have grown among the international community over the Biden administration's discriminatory regulations on carmakers exporting their electric vehicles (EVs) to the world's largest economy, according to government officials, Monday.
The act, which will take effect in 2023, denies subsidies for the purchase of EVs assembled outside of North America. This has caused the governments of Korea, the EU and Japan to worry about the possibility of their countries' carmakers losing ground in the U.S. market.
European Commissioner for Trade Valdis Dombrovskis discussed this issue with U.S. Trade Representative (USTR) Katherine Tai over the telephone last Thursday. The Embassy of Japan in the U.S. also told the political journalism company, Politico, about the Japanese government's concerns regarding the IRA, promising joint efforts with the EU and other partners to counter the new law.
The Korean government, which had sent a delegation to the U.S. last month, tasked Minister for Trade Ahn Duk-geun with meeting his U.S. counterpart, Tai, in Washington, D.C. this week to convince the U.S. government.
Earlier this month, Ahn also met with John Whittingdale, Britain's trade envoy to Korea, in Seoul to share the Korean government's concerns about the IRA and ask for the U.K. government's cooperation to resolve this issue.
“The government has continued its working-level talks with other countries to discuss countermeasures against the IRA,” said Lee Seung-heon, head of Americas division of trade policy bureau at the Ministry of Trade, Industry and Energy.
According to the ministry, the government plans to strengthen ties with countries in similar positions and express concerns about the IRA during the forthcoming UN General Assembly and the ministerial meeting of members of the Indo-Pacific Economic Framework for Prosperity (IPEF).
Minister of Trade, Industry and Energy Lee Chang-yang said at the National Assembly late last month that Korea can join hands with the EU and Japan if the conflict over the IRA is brought to the World Trade Organization (WTO). He also plans to visit the U.S. later this month to discuss this issue with U.S. Secretary of Commerce Gina Raimondo, who will announce details about the IRA later this year.
Trade experts advised the Korean government to take all possible measures, including collaboration with the EU, Japan and other countries.
“The act is basically intended to restrain China, and the Biden administration has emphasized solidarity with allies,” said Cheong In-kyo, professor of international trade at Inha University. “Although it is difficult to be certain at this moment about how the international cooperation will affect the U.S. policy, it is reasonable for Korea to join hands with other countries to cope with the IRA because the U.S. definitely needs support from its allies.”