France Wants EU To Probe Increased South Korean Auto Imports
France is asking the EU to look into an uptick in South Korean car imports, which could possibly result in tarrifs being slapped on the vehicles, despite an EU-South Korean free trade agreement.
The AFP reports that the request, made by Arnaud Montebourg, France’s Minister for Industrial Recovery
“…is being made under the terms of an EU-South Korea free trade agreement which allows for safeguard measures to be implemented in response to a sudden spike in imports in certain “sensitive” sectors. Montebourg said France was justified in asking for the move after registering a 50 percent increase in South Korean car imports in January and February of this year. The monitoring process will require importers to seek prior authorisation from the Commission before bringing any cars into France, he added.”
The rhetoric regarding the “dumping” of South Korean cars has been heating up slowly; sales of domestic brands like Renault, Peugeot and Citroen have been in the dumps, while “low-cost” brands like Dacia, as well as Hyundai and Kia, have been doing well, with sales in Europe increasing while everyone else is sliding backwards. In a poor economy, the low-end and the high-end retain their position, but the middle is always hollowed out. The backlash against Korean cars isn’t exclusive to France either – the country seems to be a favorite scapegoat whenever uncompetitive vehicles or labor unions are suffering.
More by Derek Kreindler
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Anybody in France working a 40-hour week yet? (crickets chirping) Thought so.
The French should follow the Obama gameplan. 1) Accuse the Korean's of making cars subject to sudden unintended acceleration. 2) Scare the public by telling them to "Stop Driving Your Hyundai". 3) Force the Korean's to recall every vehicle ever sold in France in order to install a piece of tinfoil in the gas pedal. 4) Have the top French scientists look for a gremlin in the Korean's engine control software, 5) Quietly let the issue die off before the public realizes the whole SUA issue is being fabricated by the government on behalf of the unions.
I'm sure this has nothing to do with French consumers choosing to buy a car from a company that might still exist when it's paid off.
The best part of this is that a tariff against imports from South Korea would also hurt Renault. Ironically, Renault's compact SUV is built by Samsung in Korea, whereas the offerings from Hyundai and Kia are built in Slovakia (which happens to be a EU country).