Chairman Yoon Jin-sik of Korea International Trade Association (KITA) met with European Commission officials and business leaders to discuss trade regulations for two days from Sept. 23.
Chmn. Yoon was accompanied by KITA leader companies, including Meta Biomed, Hanyoung Nux, Exicon and Daejoo Autotec.
The delegation expressed European-based Korean companies’ concerns over new trade regulations.
The delegation met with Patrick Anthony Child, Deputy Director-General of the European Commission’s Directorate-General for Environment on Sept. 23.
Delegates expressed Korean companies’ views over the EU Deforestation Regulation (EUDR), being enforced by EU, as well as regulations on carbon footprints, due diligence of supply chains and reusing waste batteries.
Concerns by Korean tire makers and automobile export industries are rising that, even with three years left for the EUDR to take effect, the European Commission has not disclosed information necessary for companies’ compliance regulations.
The EUDR is a legislative step enforcing supply chain due diligence obligations on companies within the EU that produce, distribute or import products linked to deforestation.
The regulation applies to businesses and distributors handling products or raw materials such as cattle, cocoa, coffee, rubber, processed wood products, paper and tires, and those companies must prove through due diligence that their goods or raw materials have not been produced in areas where forests were destroyed after Dec. 31, 2020.
Deputy Director-General Child said Korea is a friendly country which greatly contributes to securing industry capability for green transition within the EU.
If Korean companies’ grievances are conveyed, he said that the EU will make efforts to reflect them in the upcoming policymaking process and the designing of detailed guidelines.
Chairman Yoon had a meeting with Marie-Pierre Vedrenne, a French member of the European Parliament, and asked for the EU to be watchful when it comes to policy design and enforcement, so as not to have trade regulations that effectively protect industries within the EU and unintentionally harm key partners such as Korea.
Yoon urged everyone to share the administrative burden of the new EU regulations.
Following the meetings, Yoon said, “So far, we’ve focused on reaching out to the United States, it is very meaningful for us to expand trade response activities to Europe.”
He trade re expressed his commitment to supporting Korean businesses in navigating international challenges.
“Expanding our outreach to Europe, following similar efforts in the US, is crucial. Wherever our companies encounter difficulties, we will continue to provide support,” he said.
“Wherever Korean companies do business, we will continue to make efforts to proactively solve difficulties they face.”
Meanwhile, KITA opened a new office in Warsaw, Poland. It is designed to expand support for Korean companies who enter Europe.
Export Outlook in Q4 Bright, Continued Strength Predicted
Despite fears over a global economic recession, it is predicted that Korea will continue to demonstrate strength in the fourth quarter of 2024.
The Export Business Survey Index (EBSI) for the fourth quarter of the year, issued by KITA International Trade and Commerce Research Institute on Sept. 29, showed that the EBSI stands at 103.4, surpassing 100 for the third consecutive quarter, and exports are forecast to maintain positive movement until the end of the year.
Eight out of the 15 survey products are forecast to see their export conditions improve. Shipbuilding, semiconductor and daily necessities were measured at 146.7, 135.2 and 114.6, respectively.
Expectations for shipbuilding exports stood at 146.7, the highest one, due to rising demand on ship replacements in the wake of environment restrictions and expanding delivery of backlog orders.
The semiconductor segment showed 135.2, indicating an expectation for improved export conditions, influenced by rising sales on AI-related semiconductors and a solid rise in demand for the existing IT items.
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