World Bulletin/News Desk
France called on the European Commission on Friday to monitor imports of South Korean-made cars, taking the first step towards triggering a safeguard clause in a free-trade deal that could lead to duties being reimposed.
Since the trade pact came into force in July 2011, France has seen imports of South Korean cars surge while its own carmakers have lost domestic market share to the likes of Hyundai and affiliate Kia, leaving them saddled with massive overcapacity.
France's biggest carmaker, PSA Peugeot Citroen announced plans to close a plant near Paris and cut 8,000 jobs, leaving outspoken Industry Minister Arnaud Montebourg battling to limit the damage and avoid further closures.
Montebourg, who has in the past openly supported protectionism, said last week that imports of small diesel cars had risen 1,000 percent in a year, which he said warranted monitoring and possibly restrictions.
"The surveillance of vehicle trade flows aims to shed light on the extent of bilateral imbalances," the industry ministry said in a statement.
"It makes importers have to obtain a permit from the European Commission before all imports," he added. That allows the European Union's executive arm to determine if imports are indeed strong enough to trigger the safeguard clause.
One of the most ambitious trade pacts the EU has negotiated, the agreement with South Korea includes a safeguard clause which allows the EU to re-impose duties if producers in sensitive industries such as cars are hit by a particularly strong surge in imports.
The pact has long been a major source of concern for European carmakers, with the ACEA industry lobby sounding the alarm about "asymmetrical trade flow relations".
EU Trade Commissioner Karel De Gucht says trade with South Korea benefits Europe overall, pointing to data showing EU exports to the country climbing 16 percent in 2011 from 2010 to 32.4 billion euros ($39.40 billion). That compares to 24.7 billion euros in 2007.
According to the ratings agency Moody’s, Iran is fiscally and structurally well placed to come back into the global economic scene
PM Davutoglu meets the heads of the world's largest companies as he promotes Turkish economic interests at World Economic Forum
Fund cuts global growth forecasts for both 2016 and 2017 by 0.2 percentage points
'Runaway inequality has created a world where 62 people own as much wealth as the poorest half of the world’s population'
At a meeting in Vienna on Friday, the Organization of the Petroleum Exporting Countries decided against cutting output to raise prices
OPEC has agreed to raise its output ceiling to 31.5 million barrels per day
OPEC's poorer nations, led by Venezuela, want a cut to help boost prices
Move gives international recognition to renminbi, fund's Christine Lagarde says
Summit is expected to provide member states with opportunity to consult, exchange views on the most important issues concerning them in the framework of the Gas Exporting Countries Forum
Slowdown in Chinese economy, rising oil stocks in US, and oversupply from OPEC are all factors making price of oil lower
'World is more connected than ever before. More and more developing countries are seeking to join global trade networks,' WTO director-general says
European Central Bank is ready to use ‘all instruments available’ to stimulate the eurozone economy, Draghi says
Kazakhstan has overtaken Australia as the lead supplier of uranium for US reactors.
Depreciation of emerging market currencies, combined with low commodities prices, have made investors around the globe nervous