Ministry of Trade, Industry and Energy: "We will respond to ensure the EU Carbon Border Adjustment Mechanism does not become 'Green Protectionism'"

Discussion on 'Trends and Response Directions of Carbon Border Adjustment Mechanisms in Major Countries' at Public-Private Meeting

[Sejong=Asia Economy Reporter Joo Sang-don] The government has decided to actively respond to ensure that the European Union (EU)'s introduction of the Carbon Border Adjustment Mechanism (CBAM) does not become green protectionism.

On the 9th, the Ministry of Trade, Industry and Energy held a 'Public-Private Meeting for Responding to Trade and Environmental Issues' at the Korea International Trade Association, chaired by Kim Jeong-il, Director of the New Trade Order Strategy Office. The meeting brought together major economic organizations, industry representatives, and experts to discuss the trends, impacts, and response directions regarding the introduction of CBAMs, which have become a global new trade issue.

This meeting follows the 1st Trade Law Forum held on the 11th of last month, also chaired by Director Kim, where the trade law issues of CBAM were intensively reviewed. The purpose is to share the legal issues of CBAM with the industry, gather opinions on the impact of related systems introduced by major countries on our industry's exports, and the difficulties faced by companies, to reflect our position in responding to the mechanism.

At this meeting, particular focus was placed on the impact and response to trade with the EU, where the introduction of CBAM is becoming more tangible, including the announcement that related bills are scheduled to be submitted by June this year, aiming for the implementation of CBAM in 2023.

Participants agreed on concerns that the EU's introduction of CBAM, a major trading partner, could negatively affect our exports to the EU. They requested the government to take proactive measures before the full implementation of the EU's mechanism, ensuring that the system is non-discriminatory and compliant with World Trade Organization (WTO) rules, minimizing the impact on our exports.

Director Kim, who chaired the meeting, stated, "Measures for the environment should not become a means to restrict trade," adding, "The government will respond bilaterally and multilaterally to ensure that such measures by major countries do not become green protectionism."

The Ministry of Trade, Industry and Energy plans to share major trends and issues with economic organizations and industry in responding to new trade issues including trade and environment, while listening to industry positions and suggestions to reflect them in external responses.

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