The European Union (EU) is accelerating legislation for its Industrial Acceleration Act (IAA) aimed at protecting domestic industries, prompting the South Korean government to engage in trade diplomacy to prevent discrimination against its companies. Officials met with 24 members of the European Parliament to request flexible application of regional production requirements and to express concerns over key trade issues such as the hybrid vehicle safeguard and the Carbon Border Adjustment Mechanism (CBAM).
The Ministry of Trade, Industry and Energy announced that Park Jeong-seong, head of the Trade Negotiation Headquarters, visited Brussels, Belgium, from November 10 to 12 to discuss major trade issues with senior officials from the European Parliament and the European Commission.
This visit marks the first on-site joint response of the 'Public-Private Task Force for Responding to the EU Industrial Acceleration Act,' which was launched on October 15. Senior officials from the automotive, battery, nuclear power, and steel industries accompanied Park to explain the contributions of South Korean companies to investment, employment, and supply chains in the EU, and to directly convey industry concerns.
The EU's Industrial Acceleration Act aims to enhance the competitiveness of strategic industries by providing benefits for domestically produced products during public procurement and support processes. Following the announcement of the bill by the European Commission in March, discussions have continued in the Council and the European Parliament, which aims to finalize amendments by December.
According to explanatory materials from the European Commission regarding the Industrial Acceleration Act, the EU aims to increase the share of manufacturing in its regional GDP from 14.3% in 2024 to 20% by 2035. To achieve this, it plans to utilize public procurement and support for strategic industries such as steel, cement, aluminum, and automotive parts, while also imposing regional employment and local production requirements on foreign investments above a certain scale.
During the meetings, Park emphasized that South Korean companies have contributed to investment, employment, and supply chain development in the EU's strategic industries. He requested that South Korea be recognized as a reliable partner in public procurement and support.
In particular, he called for a flexible application of regional production requirements in the automotive sector and for South Korean steel and nuclear power equipment to be recognized as EU products under the Industrial Acceleration Act.
Accompanying industry representatives also conveyed specific concerns to the European Parliament members, urging that access for South Korean companies to the European market not be restricted.
On November 12, Park met with Maros Sefcovic, the EU Commissioner for Trade and Economic Security, to discuss the Industrial Acceleration Act and key trade regulatory issues. Regarding the recently initiated EU safeguard investigation into hybrid vehicles, he emphasized the need for an objective investigation in accordance with World Trade Organization (WTO) norms. He also requested that if import quotas are introduced, sufficient quantities be allocated based on recent export trends and local market demand.
On CBAM, he called for the swift and non-discriminatory recognition of domestic verification bodies, minimizing the scope of applicable items for downstream steel and aluminum products, and providing adequate transition periods.
As the Korea-EU Free Trade Agreement (FTA) marks its 15th anniversary, discussions also included ways to expand cooperation in supply chains and economic security. On November 10, a policy meeting was held with over 40 officials from the European Parliament and the European Commission, and on November 11, a networking event for businesses was co-hosted with KOTRA and the Korea International Trade Association.
Park Jeong-seong stated, "Korea and the EU have established a close industrial and supply chain cooperation relationship over the past 15 years based on the FTA. We will actively respond to ensure that the positions of our companies are adequately reflected in the EU legislative process through the public-private task force."
* This article has been translated by AI.
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