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Korean and American businessmen issue joint statement against IRA

Korean and American businessmen issue joint statement against IRA

Posted October. 21, 2022 07:44,   

Updated October. 21, 2022 07:44


U.S. Republican Senator Lindsey Graham said Wednesday (local time) that he would hold an IRA hearing once the Republican Party wins the majority in the midterm election slated for next month.

“The IRA needs to be revised, and going hand-in-hand with China can be a win-win for both of us,” said Senator Graham during a BMW event in his constituency in South Carolina announcing investment plans for electric vehicles. He said if his party takes control after the midterm elections, he will hold a hearing where automakers can have a say about what they need to hone their competitive edge. The senator stressed the need to revise the IRA amid the voiced concerns among American and European carmakers about the difficulties of complying with the IRA EV battery regulations. When the bill was passed in the Senate in August, Senator Graham voted against it. In a press conference, he even said the IRA is a nightmare for South Carolina.

Businessmen from Korea and the U.S. are also calling for revision. During a plenary session hosted by the Federation of Korean Industries and the American Chamber of Commerce on Thursday, the businessmen from both countries declared a joint statement to bring up their concerns about the discrimination against Korean EVs by the IRA enforcement and to establish a stable supply chain for core industries. The joint statement included an urge to scrap regulations that impede bilateral trade between Korea and the U.S., such as Section 232 of the Trade Expansion Act of 1962, which restricts imports for U.S. national security. Some of the participants from the American side chimed in, saying the IRA’s effective discriminations against Korean products are not aligned with the spirit of the alliance and free trade agreement between the two allies.

The businessmen from both countries also shared their will to push for a currency swap or come up with other measures whose effect is equivalent to currency swaps to stabilize the foreign currencies market of South Korea.