Merz to raise Asian objections to European car subsidy plan
The Franco-German proposal would limit subsidies to cars manufactured in the EU, Switzerland and the UK.
German Chancellor Friedrich Merz said the strength of East Asian opposition to proposed European car subsidy restrictions had surprised him. He pledged to take the concerns seriously and discuss them with EU leaders, whose next informal summit is scheduled for 13 November in Dublin.
Under the plan agreed by Merz and French President Emmanuel Macron, cars would qualify for subsidies only if they were made within the EU, Switzerland or the UK. South Korea and Japan objected. South Korean President Lee Jae Myung said he had sought Merz’s backing for Korea to receive the same treatment as EU countries.
Speaking to reporters before leaving a five-day East Asian tour, Merz acknowledged that the proposal had caused concern in Singapore, Japan and Korea. He said those countries feared Europe was becoming more protectionist and less open to other economies.
In speeches in Seoul and Tokyo, Merz also advocated an alliance among middle powers to defend rules-based trade. He called for coordination between the EU, Asian countries, Canada, Australia, New Zealand and the South American Mercosur trade bloc when international rules were challenged or economic pressure was applied.
