Yoo Myung-hee "Will Propose Expanding Consultations on Carbon Border Tax at WTO"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kwon Haeyoung] Yoo Myung-hee, the head of the Trade Negotiations Department at the Ministry of Trade, Industry and Energy, announced that she will propose strengthening consultations at the World Trade Organization (WTO) regarding environmental measures such as the Carbon Border Adjustment Mechanism.

On the 17th, Yoo attended the Trade Strategy Forum for 2050 Carbon Neutrality held at the Korea International Trade Association and emphasized, "The multilateral trading system centered on the WTO must play a more active role concerning climate change and environmental issues."

Yoo evaluated that the COVID-19 crisis has maximized uncertainty in the international trade environment and increased interest in environmental issues. She diagnosed that climate change and environmental issues are emerging due to ▲ successive carbon neutrality declarations by major countries ▲ accelerated competition to secure green markets ▲ the full-scale operation of the new climate regime following the Biden administration's return to the Paris Agreement in the United States.

She further stated that at the upcoming WTO 'Trade and Environment Sub-Committee (TESSD)' scheduled for next month, she will propose ▲ tariff reductions on environmental goods ▲ promotion of further opening of environmental services markets ▲ strengthening WTO-level review and consultations on environmental measures such as the Carbon Border Adjustment Mechanism. Through this proposal, the plan is to ▲ support overseas market entry and strengthen competitiveness of Korean companies in the environmental sector ▲ promote the development of environmentally friendly technologies and transition to eco-friendly systems ▲ induce increased transparency and predictability of environmental measures such as carbon border taxes.

Yoo also emphasized the necessity to lead trade and environment discussions not only at the WTO level but also in other international organizations such as the Asia-Pacific Economic Cooperation (APEC) and the G20, contributing to global efforts to achieve the 2050 carbon neutrality goal.

An official from the Ministry of Trade, Industry and Energy stated, "We plan to fully collect stakeholders' opinions during future WTO-level discussions on environmental issues," adding, "We will continue to strengthen communication with experts from academia and industry."

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