US, South Korea Agree To Work On Balancing Out Inflation Reduction Act - Reports

MOSCOW (Pakistan Point News / Sputnik - 23rd September, 2022) The United States and South Korea have agreed to make joint efforts to balance out the impact of the US Inflation Reduction Act that provides tax credits for the purchase of electric vehicles assembled in North America, South Korean news agency Yonhap reported on Friday, citing the Ministry of Trade, Industry and Energy.

The Inflation Reduction Act, which US President Joe Biden signed in August, provides tax credits worth $7,500 to consumers for the purchase of electric vehicles assembled solely in North America, which has caused distress of major South Korea automakers, putting them at a disadvantage. The South Korean Trade Ministry said in late August that it would work with the EU on a joint response to what Korean lawmakers referred to as discrimination.

The US and South Korea have agreed to launch a consultation channel on the matter to come up with some tangible solutions, according to the report. The decision was made following the meeting between South Korea Minister for Trade Ahn Duk-geun and US Trade Representative Katherine Tai in Bali on the sidelines of G20 trade, investment and industry ministerial meeting.

Earlier in the week, South Korean Trade, Industry and Energy Minister, Lee Chang-yang, visited Washington to discuss the matter with US Secretary of Commerce Gina Raimondo and other officials. The counterparts agreed that South Korean concerns were valid and decided to seek solution for the issue. Lee stated that his government will consider all legislative and executive countermeasures in tackling the situation if it does not change.