"IRA Joint Response" Korea-Japan Automobile Associations Hold Virtual Exchange Meeting

"Discussion on Cooperation Starting from Next Year's U.S. Treasury Battery-Related Regulation Announcement"

The Korea Automobile Manufacturers Association (KAMA) held a video conference with the Japan Automobile Manufacturers Association (JAMA) on the afternoon of the 20th to discuss various issues. Photo by Korea Automobile Manufacturers Association

[Asia Economy Reporter Oh Gyumin] The Korea Automobile Manufacturers Association (KAMA) held a video conference with the Japan Automobile Manufacturers Association (JAMA) on the afternoon of the 20th to discuss various current issues.

During the exchange between the two associations, discussions focused primarily on environmental regulations and trade issues. In particular, they exchanged opinions on the U.S. Inflation Reduction Act (IRA). Both sides agreed that the IRA could negatively impact the automotive industries of both countries and decided to actively consult if any cooperative matters arise in the future.

Specifically, they agreed to discuss possible cooperation measures after the U.S. Department of the Treasury announces the battery components and minerals origin regulations in March next year.

KAMA expressed concerns that “the IRA may violate the Korea-U.S. FTA and WTO regulations and also contradict the spirit of the economic security alliance between Korea and the U.S.” In response, Yasuo Aoki, Vice Chairman of JAMA, stated, “With the implementation of the IRA, the range of choices available to U.S. consumers when purchasing electric vehicles will be reduced, which could negatively affect American consumers as well.”

Additionally, they discussed ▲exchange of information and opinions on each country’s carbon neutrality roadmaps and fuel efficiency regulations ▲encouraging participation of member companies from both sides in next year’s exhibition plans.

Kang Nam-hoon, Chairman of KAMA, emphasized, “It is important for the Korean and Japanese automotive industries to develop economic cooperation well at the private sector level regardless of the political situations between the two countries.”

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