South Korea has expressed concerns over Chile’s ongoing consideration to impose an environment tax on diesel cars, a move that could hurt the nation’s vehicle exports to the Latin American country, a government official in Seoul said Friday.
South Korea’s concerns were conveyed in a recent letter to the Chilean government, according to the official from the Ministry of Trade, Industry and Energy, who spoke on condition of anonymity.
It also noted such a tax may violate the countries’ bilateral free trade agreement signed in February 2003, he added.
The South Korea-Chile FTA was South Korea’s first-ever free trade pact. It went into effect in April 2004.
The move to impose a new environment tax on diesel cars was endorsed by Chile’s House of Deputies, the lower house of Chile’s bicameral Congress, in May. The legislation is now being considered by the Senate.
About 22 percent of South Korean car exports to Chile last year, or 23,882 vehicles, were diesel cars. (Yonhap)
