Automotive Industry "Welcomes RCEP Signing... Expanding Economic Territory of the Car Industry"
"Export Diversification through Opening Trade Routes in the New Southern Region"
Hyundai Motor Ulsan Plant export loading dock nearby storage yard (Photo by Yonhap News)
View original image[Asia Economy Reporter Kim Ji-hee] The domestic automotive industry has welcomed the conclusion of the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade agreement, stating that "the economic territory of our automotive industry will expand."
On the 17th, the Korea Automobile Manufacturers Association said, "Through the signing of RCEP, tariff concessions on finished vehicles and auto parts are expected in the majority of the 15 participating countries," adding, "After eight years of negotiations since May 2013, the efforts of the Ministry of Trade, Industry and Energy in leading the RCEP signing have borne fruit, and we expect the economic territory of our automotive industry to expand."
According to the Ministry of Trade, Industry and Energy, with this signing, tariffs on cargo vehicles centered on ASEAN countries will be gradually reduced by 30-40%, and tariffs on auto parts by 10-40%. In response, the association stated, "As trade routes to the New Southern region, where our automotive companies' expansion has been sluggish, are opened, export diversification for our industry is expected," and "With increased investment attraction from our companies in the ASEAN region, the regional value chain is expected to improve, thereby enhancing the competitiveness of the automotive industry."
They also positively evaluated the fact that domestic industry opinions were actively reflected, such as maintaining tariffs on Japanese-made vehicles.
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The association expressed its welcoming stance on the signing, saying, "Our industry will take RCEP as an opportunity for the automotive industry to make a leap forward, including strengthening global competitiveness."
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