Minister Lee Chang-yang Heads to Washington... Conveys IRA Concerns to US Secretary of Commerce

Lummondo Meets with U.S. Commerce Secretary... Urges Solutions for IRA
High-Level Talks Continue... Plans to Contact U.S. Congress Also Underway

Minister Lee Chang-yang Meets with U.S. House of Representatives Delegation
(Seoul=Yonhap News) Lee Chang-yang, Minister of Trade, Industry and Energy, is meeting with a delegation of U.S. House Representatives on September 5th at the conference room of the Four Seasons Hotel in Gwanghwamun, Jongno-gu, Seoul. 2022.9.5 [Provided by Ministry of Trade, Industry and Energy. Redistribution and DB reproduction prohibited]
Photo by Yonhap News
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＜Copyright(c) Yonhap News Agency, Unauthorized reproduction and redistribution prohibited＞

[Asia Economy Sejong=Reporter Lee Jun-hyung] Lee Chang-yang, Minister of Trade, Industry and Energy, will visit Washington DC, USA on the 20th for high-level talks related to the Inflation Reduction Act (IRA).

The Ministry of Trade, Industry and Energy announced that Minister Lee will visit Washington DC for a 1-night, 2-day schedule from the 20th to the 21st. Minister Lee’s visit to Washington DC is to discuss major Korea-US issues including the IRA, the Chips and Science Act, and the Bio Executive Order. Following the joint delegations and Ahn Duk-geun, Director-General for Trade Negotiations, who visited the US from late last month to early this month, the government plans to continue high-level consultations with the US through Minister Lee’s visit.

Minister Lee will first meet with US Secretary of Commerce Gina Raimondo to convey concerns regarding the IRA. The IRA, enacted last month, includes a provision that subsidies are only given to electric vehicles finally assembled in North America, including the US. This means that Korean electric vehicles such as those from Hyundai Motor Company are excluded from the US government’s subsidy program. The industry expects that the subsidy provision of the IRA will disrupt exports of about 100,000 Korean electric vehicles annually.

Andukgeun Ahn, Chief Negotiator for Trade, Arrives in Washington DC
(Washington=Yonhap News) Andukgeun Ahn, Chief Negotiator for Trade, visited Washington DC, USA on September 5 (local time) to discuss resolving the issue of discrimination against Korean electric vehicles under the US Inflation Reduction Act (IRA). He is seen interviewing with reporters at the airport. 2022.9.5 [Resale and DB prohibited] Photo by honeybee@yna.co.kr
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The government holds the position that the IRA is highly likely to violate international trade rules such as those of the World Trade Organization (WTO). Accordingly, Minister Lee plans to urge Secretary Raimondo to find ways to resolve the potential violations of international trade rules posed by the IRA. In addition to Secretary Raimondo, Minister Lee plans to hold discussions related to the IRA with key US senators and representatives, including Senator Tommy Tuberville.

Minister Lee also intends to emphasize the need for close consultations between the Korean government and companies when the US introduces laws or administrative measures. This is based on the judgment that to strengthen Korea-US industrial and supply chain cooperation and expand trade and investment between the two countries, it is necessary to minimize laws and administrative measures such as the IRA that could negatively affect Korean companies.

The Semiconductor and Science Act and the Bio Executive Order recently signed by US President Joe Biden are also expected to be on the discussion table. Both the Semiconductor and Science Act and the Bio Executive Order focus on restructuring advanced industry supply chains centered on the US. A Ministry of Trade, Industry and Energy official said, "We plan to hold consultations to ensure that our companies’ business activities are not restricted," adding, "We will also emphasize that if solutions are found between the two countries, Korea-US cooperation can be further expanded in the future."

Meanwhile, Minister Lee will also visit New York during this US trip. He plans to engage in investment attraction activities in the advanced industry and supply chain sectors in New York. After completing his schedule in New York, Minister Lee will visit Canada to discuss ways to increase trade and investment between the two countries and strengthen cooperation in resource supply chains.

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