Industry Ministry Expresses Concern Over Possible Violation of Korea-US FTA by US Inflation Reduction Act

[Asia Economy Sejong=Reporter Dongwoo Lee] Our government has conveyed concerns to the United States that the preferential treatment for American-made electric vehicles in the Inflation Reduction Act, which is about to be voted on in the U.S. House of Representatives, may violate trade agreements.

On the 11th, Andeok Geun, Director General of Trade Negotiations at the Ministry of Trade, Industry and Energy, stated at a private meeting with Hyundai Motor Company and the three major battery manufacturers, "We conveyed to the U.S. side concerns that the bill may violate trade norms such as the Korea-U.S. Free Trade Agreement (FTA) and WTO agreements, and requested the U.S. trade authorities to relax the requirements for final assembly of electric vehicles and battery components defined within North America."

According to this bill, subsidies are provided only if electric vehicles finally assembled in North America meet certain battery-related percentage requirements.

Industry representatives from the automobile and battery sectors who attended the meeting requested the government to actively support so that domestically manufactured electric vehicles are not placed at a disadvantage in competition within the U.S. market due to this bill.

The Ministry of Trade, Industry and Energy stated that it will closely monitor the bill’s developments, maintain constant communication with our industry to alleviate concerns, and ensure close cooperation between the public and private sectors, while continuing consultations with the U.S. government.

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