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South Korean car manufacturers seek to reduce US port fees for vehicle carriers

South Korea's auto industry and its association asked for relief on Monday from the U.S. plan that would levy port charges on all foreign-built vehicles carriers. They said it would be a burden on an automobile industry which has made large investments in the United States. The U.S. trade representative announced the fees on 17 April as part of a continuing effort to penalise certain China-linked vessels calling at U.S. port with fees in order to fund a domestic vessel building revival and counter China’s dominance on high seas.

These fees are not just aimed at Chinese-owned and Chinese-built ships, but have a wide impact on the entire vehicle carrier industry.

According to comments made to the USTR, the Korea Automobile & Mobility Association represents Hyundai Motors, Kia, and the South Korean subsidiaries of General Motors, and Renault. It also expressed concern that the fees imposed "additional burdens" on automobiles imported that already face 25% tariffs.

Separate comments from the South Korean trade ministry and maritime minister stated that "such a measure could impose undue costs to companies, workers and customers in both countries."

The association also highlighted Hyundai Motor Group’s $21 billion investment plans announced by its chairman at the White House and U.S. president Donald Trump in March.

It said that the rule "may adversely affect the contributions made by Korean firms to U.S. trade." Reporting by Hyunjoo Ji Editing by Ed Davies

(source: Reuters)