Martial Arts Genre Submits 'Trade Industry Statement on IRA' to the United States

▲Temporary Exemption of 'North America Assembly Requirement' Only for Companies Investing in Production Facilities in the U.S.
▲Clear Definition of 'Extraction or Processing' of Critical Minerals
▲Request for Exemption from Domestic Component Usage Requirement When Constructing Clean Energy Facilities

Chairman Gu Ja-yeol

[Asia Economy Reporter Park Sunmi] The Korea International Trade Association (KITA) announced on the 4th that it has submitted a statement consolidating the opinions of the Korean trade industry regarding the implementation of the United States' Inflation Reduction Act (IRA).

Koo Ja-yeol, Chairman of KITA, expressed concern that “the domestic preference requirements under the IRA may violate international trade norms,” and requested that “Korean companies be guaranteed equal opportunities and benefits as U.S. companies.”

In the statement, Chairman Koo submitted opinions on three areas of the electric vehicle tax credit regulations: ▲ the North American assembly requirement, ▲ the critical minerals requirement, and on the clean energy production and investment tax credit regulations: ▲ the domestic component usage requirement.

The statement included the opinion that products manufactured and exported from Korea before the operation of production facilities in the U.S. should be exempted from the ‘North American assembly requirement’ only for companies currently investing in production facilities within the U.S. It also requested clearer definitions of the ‘extraction or processing’ of critical minerals and more flexible application of the law and exemption clauses regarding the ‘domestic component usage requirement’ necessary for additional tax credits when constructing clean energy power generation facilities.

Along with submitting the statement, KITA stated, “We hope that the IRA, which aims to reduce inflation and address climate change, will be achieved without harming Korea, a key U.S. ally and a country making large-scale investments.” It added, “We will actively voice our opinions to minimize damage to our companies whenever there are opportunities to submit additional feedback in the future.”

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