RCEP will open new markets for Korean automakers: KAMA

The Regional Comprehensive Economic Partnership (RCEP) will benefit Korea’s auto industry by opening new markets in the Asia-Pacific region amid intensifying competition in Europe and North America, according to the Korea Automobile Manufacturers Association (KAMA).

KAMA on Tuesday said that the latest RCEP will curb taxes levied on automobiles and parts exported to 15 countries which are members of the trade pact.

“According to the Ministry of Industry, tax levied on commercial vehicles [exported to member states] will be cut by 30 to 40 percent gradually and those on auto parts will be cut by 10 to 40 percent,” the association said in a release Tuesday.

KAMA said the latest agreement will help the Korean auto business advance into Southeast Asian countries where they lack a presence and create investment opportunities.

It added that taxes levied on Japanese cars imported to Korea will not be exempted, acknowledging that sales of Japanese cars here is a sensitive issue for Korean consumers.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]