S Korean firms-EU materials act
S. Korean firms request EU's proposed raw materials act support free trade rules
BRUSSELS, Nov. 26 (Yonhap) -- South Korean companies have called for the European Union to ensure its new legislative proposal on critical raw materials supports the principle of free trade and international standards.
The Korea Business Association Europe (KBA Europe) said Saturday it has submitted its opinion in response to the European Commission's request for feedback regarding the Critical Raw Materials Act (CRMA).
The envisioned act, announced in September, aims to boost supplies of critical minerals such as lithium and rare earths and reduce dependency for them on countries including China.
"The CRMA needs to support the principles of free trade -- EU's fundamental trade rules -- and be consistent with international standards and obligations," the KBA Europe said in the statement, also signed by the Europe Center of the Korea International Trade Association.
The KBA Europe, representing over 380 South Korean companies in Europe, expressed concern about rising trade protectionism, saying some countries introduced discriminatory regulations favoring domestic companies.
"The proposed CRMA should ensure that both EU and non-EU companies are not unduly affected, with the minimum administrative burden and non-excessive requests of data," the group said.
It also called for the CRMA to maintain regulatory consistency and avoid potential duplication of the EU's supply chain-related rules, including those on batteries and corporate sustainability due diligence.
The initiative was unveiled by EC President Ursula von der Leyen in September as part of the annual State of the Union address.
The initiative aims to reinforce EU monitoring capacities and strengthen the EU value chain through the identification of mineral resources and raw materials projects in the EU's strategic interest, with strong environmental protection, the EC said.
The EC is expected to unveil the proposal early next year after considering feedback from other countries.
The move follows the U.S. Inflation Reduction Act, which was signed into law by U.S. President Joe Biden in August and sparked widespread concerns of protectionism.
The law gives tax credits only to electric vehicles (EV) assembled in North America and requires EV batteries to be made with a certain portion of minerals mined or processed in the U.S. or countries or regions that have free trade agreements (FTA) with Washington.
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