[KITA News] KITA Chairman asked for “a three-year delay in implementing the IRA”

               

ITA Chairman asked for “a three-year delay in implementing the IRA”

 

KITA Chairman met with key figures in the U.S. and asked for “a three-year delay in implementing the IRA”

Christopher Koo, the Chairman of Korea International Trade Association (KITA) visited the U.S. state of Georgia on October 11^th (local time) and expressed concerns raised by Korean businesses to members of Congress on the implementation of the Inflation Reduction Act (IRA). Chairman Koo met Senator Jon Ossoff (D-Georgia) and Pat Wilson, the Commissioner of the Georgia Department of Economic Development that day.

During a meeting with Senator Ossoff, Chairman Koo stressed the U.S. as “Korea’s largest overseas investment destination.” He also asked the Senator “to put special attention to prevent Korean companies that are performing business in the U.S. from being victims of unfair discrimination as they are playing a key role in the cooperation with the U.S. to ensure resilience of the supply chain of cutting-edge industries.” Chairman Koo also mentioned, “As Korean companies, including Hyundai Motors, are contributing to production activities and job creation by making large-scale investment in the U.S., including Georgia” he highlighted, “measures to suspend the implementation of the IRA by at least three years should be discussed.”

Chairman Koo also pointed out that the IRA can run counter to Korea - U.S. FTA and WTO’s trade practices as the IRA limits tax breaks to EVs only produced in North America. “As Korea and the U.S. have concluded a bilateral free trade agreement, Korean-made EVs, batteries and battery materials need to be treated the same as those made in the U.S.” the chairman said. He met Pat Wilson, the Commissioner of the Georgia Department of Economic Development the same day and highlighted the need of flexibility in implementing the IRA.

“Well-established infrastructures as well as a stable supply of skilled laborers are key factors required for a successful U.S.-bound investment by Korean companies,” Chairman Koo mentioned during his meeting with Commissioner Wilson. He added, “We ask for your continuous support with policies to ensure Hyundai Motor’s new EV production facility be completed in the near future.” On October 12^th (local time), Chairman Koo paid a visit to a Kia production facility in West Point, Georgia and held a meeting with local automobile parts producing companies. At the meeting, he mentioned, “We will engage in research by taking various types of scenarios into account to have issues raised by Korean businesses reflected when the U.S. Department of Treasury enters the process of designing specific guidelines.”

[This news is provided by Newsis]

By - KITA.Net (http://kita.org/about/newsView.do?id=&no=2742&searchWrd=&pageIndex=1)