[ti:South Korea Angry Over New U.S. Trade Policy]
[al:As It Is]
[ar:VOA]
[dt:2022-09-15]
[by:www.voase.cn]
[00:00.00]South Korea says a new American tax law discriminates against South Korean electric vehicle (EV) makers.
[00:11.80]The issue may be a threat to relations between the long-time allies.
[00:17.94]The United States Inflation Reduction Act passed last month. 
[00:24.39]It offers tax credits worth as much as $7,500 to buyers of electric vehicles assembled in North America.
[00:34.80]Experts say the measure was designed to assist EV manufacturing in North America and block China from supply chains.
[00:45.55]The bill also cancelled tax credits for some electric vehicles made overseas.
[00:52.17]Among the most affected are the South Korean carmakers Hyundai and Kia. 
[00:58.78]Together, they are in second place for most sales in the U.S. electric vehicle market.
[01:05.25]Only EV maker Tesla sells more.
[01:09.29]South Korean business officials called the new law a betrayal of World Trade Organization principles.
[01:17.41]They also said that the U.S.-South Korea free trade agreement bans such discrimination against each other's imported products.
[01:27.68]In the press, both conservative and liberal opinion writers criticized the policy. 
[01:34.79]Some questioned if the South Korean government should end its part in several U.S.-led economic programs in the country.
[01:43.47]Some of those projects are considered critical to U.S. efforts in Asia.
[01:50.05]South Korean Trade Minister Ahn Duk-geun spoke of the trade dispute at a press conference Tuesday.
[01:58.25]It should be treated separately from those programs, he said. 
[02:02.20]But, the issue could, he said, "shake the trust in the trade relationship itself."
[02:09.52]Keeping good relations with both China and the U.S. is difficult for South Korea. 
[02:16.13]It is home to about 28,000 American troops. It also depends on trade with China more than any other country.
[02:26.38]South Korea's conservative president, Yoon Suk Yeol took office in May. 
[02:32.17]He has moved to expand his country's economic and security relationship with the United States.
[02:40.03]The United States has agreed to talks with South Korea to reduce the effect of the recent U.S. legislation.
[02:47.92]But there has still been much criticism in South Korea directed at both Yoon and American President Joe Biden.
[02:55.98]So far, the reaction has mainly been limited to published opinion pieces and statements from business and government officials.
[03:05.43]Jeongmeen Suh is an economics professor at Seoul's Soongsil University.
[03:11.69]He says the U.S. policy only affects a limited number of South Korean companies and might not be felt by the average citizen.
[03:21.59]So, he thinks it unlikely that South Koreans will hold any major protests over the trade law.
[03:29.04]But if not settled quickly, the disagreement could result in diplomatic problems, such as Seoul taking the issue to the World Trade Organization.
[03:39.30]Some voices have called for South Korea to take a stronger position in line with its growing economic and diplomatic influence.
[03:49.42]"If Korea remains passive, it could once again become the victim of the great powers," says a recent opinion writer in Hankyoreh.
[04:01.23]"Korea needs to get over its 'small country' mentality and adopt an active posture."
[04:07.69]I'm Jill Robbins.
