Intensive outreach planned targeting EU Council, European Parliament

Park Jeong-seong (first from right), chief trade negotiator at the Ministry of Trade, Industry and Energy, presides over the inaugural meeting of the public-private joint TF on responding to the EU's Industrial Acceleration Act at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, on Thursday. [Yonhap]
Park Jeong-seong (first from right), chief trade negotiator at the Ministry of Trade, Industry and Energy, presides over the inaugural meeting of the public-private joint TF on responding to the EU's Industrial Acceleration Act at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, on Thursday. [Yonhap]

As the European Union moves to accelerate implementation of its Industrial Acceleration Act (IAA) to strengthen the bloc's manufacturing competitiveness, South Korea's government has launched a joint public-private task force and plans to step up outreach efforts.

The IAA centers on expanding domestic production in strategic industries by applying European-origin and low-carbon requirements to public procurement, subsidies and other forms of public support. Concerns are growing that Korean companies could face discrimination as a result.

The Ministry of Trade, Industry and Energy said Thursday it held the inaugural meeting of the "EU IAA Response Public-Private Joint TF" at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, bringing together major industry players in automobiles, batteries, steel and nuclear power, along with trade associations and related ministries.

The TF was formed as legislative discussions on the IAA intensify in Europe, with the government, industry, the Korea International Trade Association (KITA) and KOTRA joining forces to share information on EU legislative developments, sector-specific impacts and local outreach activities, and to coordinate public-private cooperation.

With the EU Council and European Parliament expected to finalize the legislation by year's end, the TF plans to mount an intensive joint outreach campaign by leveraging a broad network of European industry contacts and local subsidiaries.

The IAA has drawn criticism for its protectionist bent, particularly its tightened preferences for domestically produced goods. Since the European Commission unveiled the bill, the South Korean government has submitted its position four times and conveyed Korea's stance to top EU officials, the governments of all 27 member states and members of the European Parliament.

"Korea is a key free trade agreement partner of the EU and a trusted ally that has contributed to investment, employment and supply chain development in Europe," said Park Jeong-seong, the ministry's chief trade negotiator. "Through this TF, we will pool the capabilities and networks of the public and private sectors and actively engage in the EU legislative process to ensure our companies are not subjected to discrimination."


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