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During a public hearing of the US International Trade Commission (ITC)

South Korea and the European Union (EU) have agreed to take joint action against the US’s protectionist trade policy. More specifically, they decided to explore ways to cooperate on the US’s safeguards on solar cells and modules.

South Korea’s Ministry of Trade, Industry and Energy announced that South Korea and the EU had discussed a joint response to protectionism, the implementation of the EU-South Korea Free Trade Agreement and ways to increase commercial cooperation during the 7th meeting of a South Korea-EU trade committee in Brussels on Jan. 19. South Korea’s team of negotiators was led by Trade Minister Kim Hyun-jong, and the EU’s team by European Trade Commissioner Cecilia Malmström.

“South Korea and the EU have grown through free trade in Eurasia, and they have continued to defend free trade in the multilateral sphere as well. South Korea and the EU need to work closely together to send a strong message about the importance of free trade to the whole world,” Kim said during his opening address at the meeting.

Significantly, the two sides agreed to look for ways to cooperate against American safeguards on solar panels. In Oct. 2017, the US International Trade Commission (USITC) unanimously concluded that photovoltaic cells imported from South Korea, Malaysia, China and other countries at a tariff of 0% are causing severe harm to American industries and submitted three recommendations to US President Donald Trump, including a safeguard. Trump is supposed to make a decision by Jan. 26.

According to the Ministry of Trade, Industry and Energy, the US imported a total of US$8.3 billion worth of photovoltaic cells and modules in 2016. About US$1.3 billion of this was exported by South Korea, accounting for 15.6% of the US solar import market in terms of value.

South Korea and the EU also concluded that their FTA, which took effect in July 2011, is “a model agreement that achieves a high level of comprehensive market liberalization and serves as a useful platform for bilateral commerce and investment.” Last year, the Ministry said, South Korea and the EU conducted US$111.3 billion in trade, which was 20.7% higher than before the FTA took effect. The Ministry said that the FTA had buoyed bilateral trade during a period of stagnation and shrinking consumption in the global economy.

Other matters discussed during the meeting were trade relief, tariffs, intellectual property rights, sustainable development in labor and the environment and ways to implement the FTA in the areas of hygiene and inspections. South Korea asked the EU to quickly complete the establishment of a hygiene inspection process to enable exports of samgyetang (ginseng chicken soup) to the EU. It also asked the EU for its cooperation in enhancing the performance of a mutual recognition agreement (MRA) on services by professionals such as architect and technicians and in easing the non-tariff barriers to trade in the areas of automobiles and pharmaceuticals.

The next meeting of the South Korea-EU trade committee will be held in Seoul. Until that time, the two sides agreed to keep track of supplementary measures.　

By Choi Ha-yan, staff reporter

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