European Union (EU), Will Protectionism Strengthen After COVID-19?

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] Since the outbreak of COVID-19, there have been forecasts that protectionist policies will strengthen in countries including the European Union (EU).

The Korea International Trade Association recently held an online seminar to support Korean companies in establishing response strategies to the global trade environment, providing information on major countries' import regulations trends, changes in the EU's trade policies, and response strategies.

At the event, Professor Lee Hye-min of Seoul National University Graduate School of International Studies stated, “The COVID-19 crisis has confirmed the weakening of international cooperation,” adding, “While the multilateral cooperation system is weakening worldwide, protectionism and bilateralism are gradually strengthening in each country.”

She continued, “As the US-China conflict intensifies, the current global supply chain's dependence on China will also change,” urging, “Our companies must actively respond to the changing trade environment and the emerging digital economy era, while also preparing for the increasingly stringent climate change policies.”

Je Hyeon-jeong, Director of the Trade Support Center at the Korea International Trade Association, analyzed, “During the first half of the year, new import regulation investigations against Korea by major countries totaled 23 cases, an increase of 4 compared to the same period last year,” noting, “Despite the spread of COVID-19, import regulation measures have significantly increased, especially centered on the United States and India.” She emphasized, “As economic recovery delays, global import regulations are likely to strengthen, making preemptive inspections and risk management at the corporate level more important than ever.”

Kim Jeong-gyun, Manager at the Trade Support Center of the Korea International Trade Association, forecasted, “The EU is also strengthening demands for fair competition against trading partners to protect its domestic industry competitiveness,” adding, “In particular, EU protectionist measures targeting China are expected to intensify.” He stressed, “Our companies should continuously monitor EU policies on issues such as carbon border adjustment and digital taxes, while closely observing the impact of self-sufficiency policies in future industries like batteries on our industry.”

This content was produced with the assistance of AI translation services.