Shipping containers are stacked at a pier in the southeastern port city of Busan in this Aug. 1, 2024, file photo. (Image courtesy of Yonhap)
SEOUL, Dec. 18 (Korea Bizwire) — The European Union (EU) has signaled a shift in its trade policy to strengthen its own industries, similar to that of the incoming U.S. administration under President-elect Donald Trump, posing challenges for export-oriented South Korean businesses, an industry report projected Wednesday.
According to the report by the Korea International Trade Association (KITA), the new European Commission (EC) leadership under reelected President Ursula von der Leyen is expected to prioritize industrial competitiveness and economic security, signaling a strategic shift from the first term’s values-based trade policies centered around environmental and human rights initiatives.
The association noted that the EC is expected to prioritize the buying of local products in public procurements and pursue China-focused regulations, such as anti-dumping duties and export control measures, to protect European industries.
KITA noted that South Korean businesses could face indirect risks stemming from EU actions targeting Chinese businesses, such as in anti-dumping cases.
In contrast, EU investments in green industries could present opportunities for Korean companies, particularly in electric vehicle battery production, KITA said.
The association stressed the EU’s emphasis on local sourcing requirements for raw materials and components, however, could pose challenges, requiring companies to adopt cautious and strategic approaches.
(Yonhap)
