Korea Forms Public-Private Task Force to Counter EU Industrial Accelerator Act

The industry ministry said Thursday it launched a public-private task force to respond to the European Union's Industrial Accelerator Act, as protectionist language in the draft law raises the risk that Korean manufacturers will be treated less favourably than European rivals.

Trade Minister Park Jung-sung led the kickoff meeting at the Korea Chamber of Commerce and Industry, with automakers, battery, steel and nuclear power companies and their trade associations joined by government agencies, the Korea International Trade Association and KOTRA.

The task force will pool information on EU legislative developments, the impact on each industry and local outreach. With the European Council and European Parliament expected to finalise their versions of the bill within the year, the group plans a concentrated joint outreach campaign during that window.

The European Commission published its proposal in March, the Council followed with its position in July and the Parliament in September. In the process, local-content preferences have been strengthened and the recognition of equivalence for trusted partners narrowed.

Seoul has already made four submissions of its position since the Commission's proposal, and has raised the issue with senior EU officials including the executive vice president for prosperity and the commissioner for trade. The government has also relayed its position to the governments of the EU's 27 member states and to key members of the European Parliament.

At the meeting, participants shared the likely effects on their sectors and their concerns, and agreed to work together to explain Korean companies' contribution to EU investment, employment and supply chains through European subsidiaries, suppliers and industry networks.

"Korea is a core FTA partner of the EU and a reliable partner that has contributed to building investment, employment and supply chains in Europe," Park said, according to the ministry. "Through this task force we will pool the capabilities and networks of the public and private sectors and respond actively in the EU legislative process so that our companies are not discriminated against."