Industry ministry widens EU outreach against industrial acceleration act

South Korea's industry ministry said Wednesday it will send its top trade negotiator to Brussels next month as part of an expanding campaign to keep Korean manufacturers from being discriminated against under a proposed European Union industrial law.

The Ministry of Trade, Industry and Energy held the second meeting of a joint public-private task force on the EU's Industrial Acceleration Act (IAA) in Seoul, chaired by Trade Minister Park Jung-sung and attended by companies and associations from the automotive, battery, steel and nuclear sectors along with other government agencies.

Park told the meeting that the government would pursue outreach to the EU's key legislative bodies so that Korean companies are not treated unfairly in the legislative process. "In particular, we will strengthen the organic cooperation system between the government, industry, local diplomatic missions and corporate offices centered on the public-private task force, and respond with all our strength so that our industry's position can be substantially reflected in the EU legislative process," he said.

The task force was launched on Oct. 15. The ministry is concerned that the IAA could favor local content within the EU, and it is pressing for recognition of trusted partner countries and workable rules for the automotive sector.

On Oct. 20 and 21, a senior trade strategy official visited the European Parliament in Strasbourg and met eight lawmakers from major political groups and relevant standing committees, asking them to prevent discrimination against Korean companies and to grant trusted-partner countries equal treatment. The same concerns were presented to the European Commission at the 14th Korea-EU Free Trade Agreement goods trade committee meeting on Oct. 21, where Seoul urged equal treatment for Korean-made parts and final assembly and called for reasonable rules of origin within the bloc.

Since the first task force meeting, Seoul has strengthened information-sharing on EU legislation and local outreach through organizations including the Korea International Trade Association and KOTRA, and it is working on ways for Korean companies operating in Europe to deliver joint positions using their local networks. At Wednesday's meeting, participants reviewed legislative trends and the main sticking points in light of the recent European Parliament visits, and the ministry said it would focus its persuasion on Korean companies' investment, employment and supply chain contributions in Europe.

Park's visit to Brussels in November will be the highest-level step in the campaign so far. The ministry said he plans to meet key European Parliament figures to explain Korean industry's contribution to the EU economy and to argue that the industry's concerns should be reflected as the IAA is drafted.