EU Industrial Accelerator Act to Strengthen Protectionism... Government and Industry Launch Joint Response

Ministry launches public-private task force to respond to the Industrial Accelerator Act
Intensive outreach ahead of expected finalization of EU Council and European Parliament proposals by year-end

Yonhap News

The European Union (EU) is accelerating legislation on the Industrial Accelerator Act (IAA), which would tighten preferential requirements for products made within the bloc. In response, the Korean government and the automotive, battery, steel and nuclear power industries have launched a joint effort. To prepare for the possibility that the scope of equal treatment for “trusted partners” may be narrowed during the EU legislative process, they plan to step up outreach in Europe to ensure Korean companies are not discriminated against.

On October 15, the Ministry of Trade, Industry and Energy held a kickoff meeting of the “Public-Private Task Force on the EU Industrial Accelerator Act (IAA)” at the Korea Chamber of Commerce and Industry. The meeting was chaired by Park Jeongseong, head of the Office of Trade Negotiations, and attended by major industries, including automotive, batteries, steel and nuclear power, as well as relevant associations and organizations and government ministries.

The EU Industrial Accelerator Act is a bill announced by the European Commission in March to boost Europe’s industrial competitiveness and strengthen its manufacturing base within the bloc. Legislative discussions gathered pace after the EU Council released its proposal in July and the European Parliament followed with its proposal in September. As measures are being discussed to tighten preferential requirements for products made within the bloc while reducing the scope of equal treatment for reliable partners outside the bloc, concerns are growing that Korean companies could face unfavorable treatment.

Since the Commission released its proposal in March, the Korean government has submitted a total of four position papers to the EU. High-level contacts have also continued: on September 9, Minister of Trade, Industry and Energy Kim Jeonggwan met with the EU executive vice-president responsible for growth, and on September 30, Park, head of the Office of Trade Negotiations, met with the EU trade commissioner.

The government has also conducted outreach to the governments of all 27 EU member states and members of the European Parliament. It has conveyed Korea’s position to the European Parliament’s Committee on International Trade, Delegation for Relations with the Korean Peninsula and Committee on the Internal Market, among others.

The task force was established to expand the responses that had been conducted separately into a joint public-private system. The government, the Korea International Trade Association, the Korea Trade-Investment Promotion Agency, industry associations and organizations, and companies will share information on EU legislative developments, industry-specific impacts and local outreach.

With the positions of the EU Council and European Parliament expected to be finalized by the end of this year, the task force plans to focus on persuasion efforts in Europe. It will draw on Korean companies’ local subsidiaries and partner companies in the EU, as well as networks across European industries, to explain how Korean companies contribute to investment, employment and supply-chain development in Europe.

The task force will also assess the impact of the IAA and industry-specific concerns in sectors including automotive, batteries, steel and nuclear power. Based on this assessment, it plans to develop joint arguments to prevent discrimination against trusted partners and conduct intensive outreach to the EU Council and European Parliament.

“Korea is a key FTA partner of the EU and a trusted partner that has contributed to investment, employment and supply-chain development in Europe,” Park said. “Through this task force, 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 discriminated against.”

This content was produced with the assistance of AI translation services.