25 Countries Including Korea and EU Send Letter to US Congress Claiming Unfair Electric Vehicle Tax Support

[Asia Economy Reporter Yujin Cho] Major automobile manufacturing countries including South Korea, the European Union (EU), Germany, France, and Japan have sent a letter stating that the electric vehicle tax credit bill promoted by the United States violates international trade rules.

According to major foreign media on the 30th (local time), ambassadors from 25 countries to the United States jointly sent a letter that night to the U.S. Congress and the Joe Biden administration, requesting that foreign automobile industries not be discriminated against.

The letter stated that the "Electric Vehicle Tax Credit Amendment Bill" being promoted by the U.S. House of Representatives conflicts with the multilateral trade agreements of the World Trade Organization (WTO).

This bill, promoted by the U.S. Democratic Party, primarily provides an additional tax credit of $4,500 for electric vehicles produced at U.S. factories with unionized labor.

Unlike the U.S. 'Big Three' automakers GM, Ford, and Stellantis, which have unions at their U.S. plants, foreign companies and importers without unions at their U.S. factories do not receive additional tax benefits.

In response, ambassadors from South Korea and other countries pointed out that the discriminatory tax credit provisions between imported and U.S.-made electric vehicles, as well as between unionized and non-unionized factory-produced vehicles, conflict with WTO agreements prohibiting import substitution subsidies.

Earlier, 12 automobile companies including Hyundai, Kia, Toyota, and Mercedes-Benz also sent a protest letter to the U.S. House of Representatives urging the withdrawal of the bill.

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