"Emphasizing to Key Member States 'Do Not Discriminate Against Korean Companies'"
Citizens supporting the EU march in the streets [Image source=Yonhap News]
[Asia Economy Reporter Jang Hee-jun] The government has expressed the view that the so-called 'Critical Raw Materials Act' being promoted by the European Union (EU) is unlikely to include trade discriminatory elements against Korean companies.
On the 29th, a Foreign Ministry official told reporters that regarding the EU Critical Raw Materials Act, "Considering the EU's emphasis on compliance with multilateral trade rules such as those of the World Trade Organization (WTO) and the transparent intra-regional legislative process, it is unlikely that measures containing trade discriminatory elements will be introduced."
However, the official emphasized, "We will remain vigilant and closely monitor the situation, and respond swiftly if necessary."
The official explained, "Our government has consistently emphasized through high-level contacts not only with the EU Commission but also with major EU member states such as France and the Netherlands that discriminatory elements in EU supply chain-related legislation, including the Critical Raw Materials Act, should not affect our companies," adding, "Last week, our government directly participated in a raw materials-related meeting hosted by the EU Commission, where we held bilateral consultations and discussed response measures with government officials from countries with similar positions such as Australia and Japan."
The EU Critical Raw Materials Act is currently undergoing impact assessment work, including gathering opinions from key stakeholders, and the specific contents of the bill are expected to be disclosed early next year. The act aims to independently select strategic critical raw materials, strengthen intra-regional raw material supply chains, and diversify supply chains. It is analyzed as an effort to reduce dependence on raw materials from China. Because of this, concerns have been raised that the EU Critical Raw Materials Act could become a 'second US Inflation Reduction Act (IRA)' and discriminate against Korean companies.
Meanwhile, the official dismissed recent remarks by French President Emmanuel Macron that Europe needs a Buy European Act (BEA) similar to the US, stating that "this is a statement at the individual member state level" and "it is not seen as an EU-level response direction."
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