Minister of Foreign Affairs Park Jin said that he was conveying the concerns of the automobile industry to the US side, saying that the US 'Inflation Reduction Act' may violate the principles of the Korea-US Free Trade Agreement and FTA, as well as the rules of the World Trade Organization and WTO.
The National Assembly Foreign Affairs and Unification Committee is also pushing for a resolution at the standing committee level that addresses concerns about the US discriminatory measures.
Minister Park said at a plenary meeting of the Foreign Affairs Committee held at the National Assembly today (19th) about the US excluding Korean-made vehicles from subsidies for electric vehicles through the Inflation Reduction Act, saying, "The Korea-US FTA has the principle of national treatment, and the WTO norms include the most-favored country. “There is a treatment principle,” he said.
Minister Park said, "It is true that there are concerns in our industry about the electric vehicle subsidy reform plan."
"In addition to us, we plan to discuss countermeasures with other countries that export electric vehicles to the US," he added.
Rep. Lee Won-wook, a member of the Foreign Affairs Committee of the National Assembly, proposed the adoption of the resolution, saying, "There is a possibility that the Korean automobile industry will become very difficult due to the inflation reduction law."
The resolution proposed by Rep. Lee is a 'Resolution urging the US to prohibit discrimination in tax support for imported electric vehicles and batteries'.
The resolution stipulates that the U.S. Inflation Reduction Act “is clearly discriminatory against companies that are trying to respond to climate change, a global problem, based on their nationality.” It is determined to be in violation of the agreement, expresses strong concern, and urges the U.S. government to express the Korea-U.S. partnership by adhering to the norms of international agreements.”
In addition, "The National Assembly of the Republic of Korea urges the Korean government to engage in active negotiations with the U.S. government so that Korean companies do not receive unfair treatment or damage in the process of exporting electric vehicles and batteries to the United States."
After discussing the adoption of the resolution with secretaries of the ruling and opposition parties, Chairman Yoon Jae-ok said, "There is no disagreement on the overall purpose, but there is a limit to sorting it out today." said.
(Photo = National Assembly Photo Reporters, Yonhap News)