Ministry of Industry Discusses Economic Cooperation Plans with EU and US (Comprehensive)

Discussion on Follow-up Measures after Korea-EU Summit
Need to Expand US FTA Recognized Countries Raised

The Ministry of Trade, Industry and Energy discussed ways to strengthen economic cooperation with the EU (European Union) and the United States, including economic security and supply chain collaboration.

According to the Ministry, on the 29th, Ahn Deok-geun, the Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, met with Thierry Breton, the European Commissioner for the Internal Market, to discuss follow-up measures from the Korea-EU summit held in May. On the same day, Joo Young-joon, Director-General of Industrial Policy, also held talks with Sarah Bianchi, Deputy USTR Representative of the United States, to discuss ways to strengthen Korea-US battery supply chain cooperation.

During the meeting in Seoul, Director-General Ahn and Commissioner Breton discussed follow-up measures from the Korea-EU summit, including the EU economic legislation such as the Critical Raw Materials Act and the Carbon Neutral Industry Act, economic security, advanced industrial policies, and economic cooperation measures. Director-General Ahn explained Korea’s early warning system and emphasized the necessity of cooperation with friendly countries in the event of global supply chain disruptions, highlighting the need for collaboration in the supply chain sector.

Additionally, taking this meeting as an opportunity, they agreed to continue discussions on the following items agreed upon at last month’s Korea-EU summit: holding the Korea-EU Supply Chain Industrial Policy Dialogue, initiating negotiations for a binding Korea-EU Digital Trade Agreement, and cooperation in semiconductor supply chains, technology, and policy fields.

Director-General Joo discussed ways to expand the list of Free Trade Agreement (FTA) recognized countries concerning the critical minerals requirements under the Inflation Reduction Act (IRA). He stated that the Korean government submitted a position paper to the U.S. government regarding some concerns of Korean companies, including the establishment of Foreign Entity of Concern (FEOC) regulations considering the impact on the global supply chain and the expansion of the scope of FTA recognized countries, and requested a review of these issues.

He particularly emphasized the need to further expand the scope of FTA recognized countries, as it is difficult to meet the IRA’s clean vehicle benefit requirements solely with the critical mineral supply chain composed of the United States and countries that have FTAs with the U.S.

Deputy Representative Bianchi responded by emphasizing, "Korea is one of the most important partners in the United States’ battery supply chain restructuring policy," and stated that she would maintain continuous communication with Korea throughout the IRA implementation process. She also expressed gratitude for Korea hosting the 4th meeting of the Indo-Pacific Economic Framework (IPEF) in Busan and requested that Korea continue to play a leading role in IPEF going forward.

Anduk Geun, Head of Trade Negotiations at the Ministry of Trade, Industry and Energy, is having a meeting with Thierry Breton, European Commissioner for Internal Market, on the 29th at Lotte Hotel in Jung-gu, Seoul. Photo by Ministry of Trade, Industry and Energy

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