Andeokgeun, Head of Trade Headquarters, "Korea-US 'Electric Vehicle Subsidy' Consultative Body Formation"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Dongwoo Lee] To resolve the issue of discrimination against Korean electric vehicles due to the implementation of the U.S. Inflation Reduction Act, South Korea and the United States have agreed to form a consultative body.

On the 7th (local time), the Ministry of Trade, Industry and Energy announced that Trade Negotiations Director Andeok Geun and Katherine Tai, U.S. Trade Representative (USTR), met in Washington D.C. and reached this agreement.

Director Ahn stated, "I conveyed the serious domestic situation, including the passage of a National Assembly resolution, regarding the electric vehicle tax credit under the U.S. Inflation Reduction Act (IRA), and emphasized that both countries must cooperate early to resolve this issue."

Both sides agreed to further discuss the formation of consultation channels and specific discussion agendas. The exact timing for activating the consultative body has not yet been determined. The Ministry of Trade, Industry and Energy plans to actively promote Korea-U.S. consultations after sharing the results of Director Ahn’s visit to the U.S. with related ministries through a government joint task force.

During his visit to Washington, Director Ahn met with the White House, members of the U.S. Congress, and think tank experts to discuss multifaceted solutions related to the IRA. The day before, Brian Deese, Chair of the White House National Economic Council (NEC), met with Director Ahn and said, "We understand our serious concerns regarding the discriminatory electric vehicle tax credit provisions of the IRA, and the White House is also interested and will seek systematic cooperation measures."

At the Korea-U.S. trade ministerial meeting, both sides discussed Korea’s concerns about the IRA electric vehicle tax credit issue and exchanged views on cooperation measures related to the Indo-Pacific Economic Framework (IPEF) and the implementation of the Korea-U.S. FTA.

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