KAMA Holds Video Conference with US and EU Auto Associations to Establish Joint Response System for Future Car Policies

[Asia Economy Reporter Suyeon Woo] The Korea Automobile Manufacturers Association (KAMA) held video conferences with automobile associations from the United States and Europe and agreed to establish a joint response system related to future car policies.

KAMA announced on the 7th that it held bilateral video conferences with the U.S. and European automobile associations on the 28th of last month and the 6th of this month, respectively. During the two meetings, extensive discussions were held on market trends in both countries and cooperation measures regarding environmental and safety issues.

First, in the meeting with the American Automotive Policy Council (AAPC) held on the 28th of last month, the issue of tariffs on Korean-made vehicles under Section 232 of the U.S. Trade Expansion Act was raised. Matt Blunt, chairman of AAPC, stated, "AAPC also shares a negative stance on Section 232 of the Trade Expansion Act," adding, "The possibility of imposing tariffs on Korea is expected to be very low."

He continued, "Especially if candidate Biden wins the presidential election this year, the possibility of imposing tariffs will disappear altogether, and even if Trump is re-elected, the current U.S. administration is using Section 232 as a strategic tool, so the likelihood of tariff imposition is slim."

Additionally, regarding environmental regulations, concerns were expressed that the Korean Ministry of Environment's new strengthened fuel efficiency standards could act as trade barriers for U.S. automobile companies entering the Korean market. Regarding autonomous vehicle safety standards, the U.S. National Highway Traffic Safety Administration (NHTSA) is preparing autonomous vehicle guidelines similar to those of Korea and Japan and maintains a cautious stance on regulatory implementation.

Meanwhile, in the video conference with the European Automobile Manufacturers Association (ACEA) held on the 6th, information was shared about the European market outlook and environmental regulatory trends following the COVID-19 pandemic. ACEA forecasted that automobile sales in the European Union (EU) market would decrease by 25% compared to the previous year, noting that full resumption of automakers' operations has not been achieved and expressing concerns about a second wave due to recent COVID-19 re-infections in Europe.

Regarding the 2030 environmental standards in Europe, Dr. Paul Greening of ACEA evaluated them as "unrealistically excessive levels," stating, "The European automobile industry plans to establish strategies to respond to the 2030 regulations based on the achievement trends of the 2020 standards."

Furthermore, AAPC requested that the Korean Ministry of Environment relax the fuel efficiency and greenhouse gas regulations to the same level as the first preliminary announcement made in January of this year. In particular, for sport utility vehicles (SUVs), they requested the application of separate relaxed standards similar to those in the U.S. and a 35% relaxation of fuel efficiency standards for small-scale manufacturers compared to general standards.

Jung Manki, chairman of KAMA, said, "The 2030 regulatory levels in the Ministry of Environment's administrative notice are realistically difficult for the domestic industry to achieve," adding, "They should be reset to levels that the industry can achieve with effort."

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