EU begins hybrid vehicle safeguard investigation... Government “Check domestic impact”

(Seoul = Yonhap News) Reporter Jang Bo-in = The European Union (EU) Commission has begun a global safeguard (emergency import restriction) investigation targeting hybrid cars imported from around the world.

The Ministry of Trade, Industry and Energy announced on the 30th that the European Commission announced the start of a safeguard investigation under the World Trade Organization (WTO) safeguard agreement.

The subjects of this survey are new hybrid vehicles imported from around the world, such as hybrid (HEV) and plug-in hybrid (PHEV).

Safeguard measures are a system that allows the domestic industry to be temporarily protected through increased tariffs or restrictions on import volume when there is a risk or risk of serious damage to the domestic industry due to an increase in imports of a specific product.

In order to invoke safeguard measures according to the WTO agreement, an increase in imports, serious damage or concern about damage to the domestic industry, and a causal relationship between increased imports and industrial damage must be proven.

The Ministry of Trade, Industry and Energy explained that the EU appears to have launched this investigation to determine the impact on the region's automobile industry as imports of foreign hybrid vehicles have recently increased significantly.

According to the European Commission, imports of hybrid vehicles within the EU increased from approximately 960,000 units in 2023 to approximately 1.42 million units between July of last year and June of this year.

The European Commission plans to investigate whether there will be an increase in imports, damage to industries in the region, and causal relationships, and decide whether to invoke safeguard measures and their specific contents after collecting opinions from stakeholders and consulting with relevant countries.

Under EU regulations, a safeguard investigation is, in principle, completed within 9 months, but in exceptional cases it can be extended up to 11 months, and in urgent situations, interim measures can be implemented before a final decision.

The Ministry of Trade, Industry and Energy announced that it would closely examine the impact on the domestic industry.

The Ministry of Trade, Industry and Energy explained, "We plan to closely communicate with our automobile industry and closely examine the impact this investigation and future measures will have on our companies' exports to the EU."

He added, "During the EU investigation process, we will actively communicate our position through various channels, including submission of official opinions and bilateral consultations, and continue to consult with the EU to ensure that our automobile industry's access to the EU market is guaranteed as much as possible."