The International Trade Council commends South Korea for its proactive engagement in international talks and the signing of multiple agreements related to minerals and electric vehicles (EVs). These agreements align with South Korea's ambitious goals for EV battery manufacturing and underscore the nation's commitment to pursuing strategic initiatives despite challenges in its manufacturing sector.
At recent international talks, South Korea has forged significant agreements, highlighting its determination to achieve its economic objectives. These agreements reflect the country's steadfast commitment to advancing its EV battery manufacturing ambitions and fostering global trade relations.
Free Trade Agreement with the Philippines:
South Korea has inked a free trade agreement (FTA) with the Philippines, marking the fifth such agreement with an ASEAN country. The FTA was signed during the 43rd ASEAN Summit held in Jakarta last week. This agreement is poised to significantly benefit South Korean automobile and car part exports to the Philippines by eliminating tariffs. Over the next five years, the current tariff rates of 3-30% for automobile and car part exports and the 5% tariffs for eco-friendly cars like EVs and hybrids will be reduced to zero. The FTA is expected to come into effect in the first half of 2024 upon ratification by South Korea's National Assembly.
Bilateral Agreements with Indonesia:
South Korea and Indonesia have entered into 16 agreements during the summit, including two pertaining to the establishment of joint research and development centers for the critical minerals supply chain. Additionally, agreements on two-wheeler EVs and integrated parking solutions have been signed. An agreement focused on nurturing a nuclear energy industrial base, along with five agreements related to electric power and clean energy for eco-friendly equipment, green ammonia, and carbon capture and storage, were also executed. Specific details of these agreements have not been disclosed.
Moreover, during the Korea-Indonesia summit talks, South Korea and Indonesia signed two agreements concerning EV ecosystem cooperation and "future industries." Under the EV ecosystem agreement, both nations will expand collaboration in four critical areas: infrastructure expansion, personnel training, joint international research and development projects, and government policies and systems.
Exploring Lithium-Ion Battery Production in Argentina:
South Korean President Yoon Suk Yeol met with Argentine President Alberto Fernandez during the G20 summit in New Delhi. President Yoon proposed exploring joint lithium-ion battery production in Argentina, leveraging Argentina's status as a major player in lithium production. Argentina, the world's fourth-largest producer of lithium, produced 6,200 tons of lithium last year, positioning it as a key player in the global supply chain.
The International Trade Council recognizes South Korea's commitment to driving economic growth, fostering international cooperation, and expanding its presence in the global EV and minerals markets. These agreements reflect a forward-thinking approach that aligns with the Council's mission of advancing international trade and economic development.
