Latest news with #AmericanChamberof
Korea Herald
8 hours ago
- Business
- Korea Herald
'Yellow Envelope Law' will repel investment, foreign biz groups warn
US chamber raises 'deep concern,' says legislation may deter future American investment A controversial pro-labor union bill advancing through Korea's National Assembly is drawing a rare, unified backlash from both foreign business chambers and local industry groups, who warn it could erode legal predictability and diminish the country's investment competitiveness. The proposed legislation, commonly referred to as the 'Yellow Envelope Law,' would amend the Trade Union and Labor Relations Adjustment Act. If passed, the bill would expand the definition of 'employer' to include main contractors in subcontracting chains, giving bargaining power to workers in indirect or outsourced jobs. It would also limit companies from demanding compensation from unions for strike-related losses and hold executives liable if they refuse to negotiate with unions. The American Chamber of Commerce in Korea, the country's largest foreign business chamber with over 800 member companies, on Wednesday expressed 'deep concern' after the bill passed the parliamentary Environment and Labor Committee last week. 'If enacted in its current form, this legislation could influence future investment decisions by American companies considering Korea,' said AmCham Chairman and CEO James Kim in a statement. 'A flexible labor environment is essential to strengthening Korea's competitiveness as a business hub in the Asia-Pacific region,' he said, adding that the bill had progressed 'without sufficient input from industrial stakeholders.' Backed by President Lee Jae Myung's resolve to protect vulnerable workers, the ruling Democratic Party of Korea has been pushing to pass the bill in a move that conservative People Power Party lawmakers have denounced as 'anti-business." The European Chamber of Commerce in Korea echoed those concerns a day earlier, warning that vague and expanded liability could expose companies to unclear criminal risk. 'If a company faces legal exposure simply for failing to respond to unclear bargaining requests, it could result in withdrawal from the Korean market,' the chamber said in a statement. Pushing back against the criticism from the ECCK, Korea's Labor Minister Kim Young-hoon argued on Tuesday that the bill aims to align Korean labor regulations with global standards. Speaking at a government briefing, Kim cited Europe's supply chain due diligence laws as an example of international norms demanding 'responsible corporate behavior' and shared liability between parent and subcontractor firms. 'Meeting international standards is increasingly essential not just for labor rights, but also for global trade and competitiveness,' Kim said. He added that the OECD has repeatedly pointed to Korea's dual labor market structure, marked by a stark divide between large corporations and small- and medium-sized enterprises, as a key factor limiting long-term growth, calling the bill a necessary step for sustainable development. First proposed in 2015, the bill has long faced resistance from conservative parties and business lobbies. Now one of Korea's most polarizing bills, its fate could reshape labor governance and signal how the country balances worker rights with business interests. A renewed political showdown appears imminent as the revised bill is scheduled for a potential floor vote on Aug. 4. Korean industry groups are alarmed by the bill's potential fallout for subcontracting-heavy sectors such as automotive, shipbuilding and construction. On Wednesday, major Korean business associations, including the Korea Enterprises Federation, Korea Automobile & Mobility Association, Korea Offshore & Shipbuilding Association, and Construction Association of Korea, issued a joint statement urging lawmakers to halt the legislation. KEF Vice Chairman Lee Dong-geun warned that the amendment would destabilize Korea's complex, multi-tiered subcontracting system, which is foundational to its manufacturing and industrial competitiveness. 'It will inevitably trigger disputes targeting prime contractors, fracturing supply chains and damaging Korea's global competitiveness,' he said. Lee added that the proposed legislation could paralyze executive decision-making by exposing business leaders to 'indiscriminate criminal liability.' He also cautioned that limiting damage claims against unions could lead to a 'culture of strike absolutism,' normalize illegal workplace disruptions and weaken productivity across sectors. 'These sectors are already under pressure from global market shifts and sensitive trade negotiations. This bill could tip them into deeper instability,' he said.
Korea Herald
22-07-2025
- Business
- Korea Herald
'Make KorUS Great Again': PM urges deeper Seoul-Washington ties
"Make KorUS Great Again," declared South Korean Prime Minister Kim Min-seok on Tuesday, as he called for a renewed Korea-US alliance grounded in shared democratic values and future industries in the face of shifting global economic and security dynamics. Speaking at a policy seminar hosted by the American Chamber of Commerce in Korea, Kim emphasized the Lee Jae Myung administration's commitment to a deeper strategic alignment with the US. 'I understand the efforts of the US to pursue a stronger nation, a stronger economy and a better treatment of American workers, regardless of whether it's under President Trump's term or not,' Kim said in his keynote speech, titled "Make KorUS Great Again." 'But I can say with conviction that the US will become even stronger when it works with Korea, when it works with Korea efficiently and maintains a proper partnership with Korea that is in line with the realities of the 2020s.' Reflecting on his past as a student activist during the 1980 Gwangju Democratic Uprising and his education in the US, Kim said the two countries are bound by a shared democratic foundation, constitutional values, people-to-people exchanges and future technologies. 'What we have in common is the shared experience of people who understand the importance of a constitution. A country that values its constitution is one that shares the value of democracy,' he said. Kim also stressed long-standing cultural and human exchanges between the two countries, saying they are "deeply rooted to the level of assimilation.' Going forward, Kim laid out key industries for bilateral cooperation under the government's ABCDE strategy ― artificial intelligence, biotechnology, cultural content, defense and energy ― which Kim said he coined during the presidential campaign. 'Across all of these sectors, we are confident that we can develop a complementary relationship with the US together as we navigate the changing landscape of global economics and security.' Kim also raised the hope that US President Donald Trump could play a role in bringing North Korea back to the negotiating table and for peace on the Korean Peninsula, beyond resolving ongoing tariff issues. On tariffs, however, Kim remained optimistic, saying that "there is still a lot of time left" to find a resolution. 'There is a lot to do and a lot of issues," he said. "All will be sorted out when we look at the essence and the future of the issue." At the seminar, Joseph Yun, charge d'affaires at the US Embassy in Seoul, reiterated Washington's commitment to an 'ironclad alliance' with Seoul, grounded in defense, shared value and deep economic ties. Still, Yun pointed to the US' $1.2 trillion trade deficit last year and a projected $1.8 trillion fiscal deficit as reasons it seeks to see its allies take on greater responsibilities. 'These are enormous amounts and they must be reduced if we are to have balanced economic relations,' Yun said on the US trade deficits. The US is spending about $1 trillion in defense annually, and the deficit is not sustainable, added Yun. 'So the US is asking our allies to do more. This is a request to all NATO partners in Europe and also to all our allies in Asia, of course that includes South Korea, Japan and Australia.' In his opening remarks, James Kim, chair and CEO of AmCham, also touched on the ongoing tariff negotiations and the ways that the two countries can cooperate. 'As we navigate ongoing tariff negotiations between our two nations, we see tremendous opportunities to deepen bilateral cooperation and advance shared economic goals,' said Kim, noting that member companies in shipbuilding, aerospace, energy and technology are leading the way in strengthening strategic partnership. 'At the same time we recognize the importance of addressing Korea's unique regulations in order to foster a more balanced and a sustainable trade dynamic industry,' he said. "As a result, we launched the AmCham 'Buy America' campaign in partnership with our member companies to enhance visibility and accessibility of US products.'
RTÉ News
17-07-2025
- Business
- RTÉ News
Bank of Ireland revises economic forecasts upwards
Bank of Ireland has revised upwards its economic forecasts for the year, if US tariffs remain at 10%. It predicts GDP growth of 8.5%, higher that the 3.5% growth previously forecast. The bank says modified domestic demand will grow to 2.9% (previously 2.8%) and employment will grow to 2.6% (1.8%) in 2025. There is one significant caveat; the forecasts assume US tariffs on Irish exports remain at 10%, with pharmaceuticals exempt. Bank of Ireland says any change to current US policy from August 1, or thereafter, would lead to a revision downwards for Irish GDP projections. It says its revisions reflect surging exports and multinational output, but also Ireland's rapid pace of job creation, consumer spending and public expenditure. The bank says investment spending is expected to bounce back in 2025, as a partial rebound in construction activity takes place. Bank of Ireland Chief Economist, Conall Mac Coille said, "The Irish economy has significantly outperformed expectations in the first half of 2025, prompting us to revise our GDP growth forecast to 8.1%, up from 3.5%. "This reflects an exceptional surge in multinational output and exports early in 2025, as well as strong momentum in consumer and public spending. Some of this growth reflects firms front-running expecting tariffs, but also new pharmaceutical production facilities coming online." Mr Mac Coille said the upwardly revised forecasts also reflect the strong performance of the domestic economy early this year. "We now expect Modified Domestic Demand to grow 2.9% in 2025. Revisions to CSO data show consumer spending growing at a substantially faster pace (3%) than first thought. Also, public spending in H1 2025 was up 8%, adding to demand. The 3.3% pace of job creation is also ahead of expectations. The big picture is that the economy has so far weathered the uncertainty posed by President Trump's tariffs and EU-US trade negotiations." The chief economist agrees that the outlook is especially uncertain currently. He said any escalation in tariffs above 10% would necessitate a downward revision. The report says Ireland's direct exposure to US tariffs is limited. Goods trade with the US accounted for 9% of Irish exports in 2024, of which three-quarters were pharmaceuticals. The report finds, however, that ongoing uncertainty could have a slow-burn negative impact on FDI. "Our Irish economic forecasts embody only a gradual pick-up in investment spending from current subdued levels," Mr Mac Coille said. "We are encouraged by the recent American Chamber of Commerce survey – indicating 60% of respondents still expected to expand employment." The fall in Irish housing completions to 30,300 in 2024 has been well flagged, but the bank's report raises the 5% contraction in non-residential construction, down for a 5th consecutive year, as a concern. It reflects the negative impact of build cost inflation, planning delays and other rigidities on the construction sector, holding back delivery of key infrastructure projects and the National Development Plan. The CSO estimated consumer spending grew by 3% in the year to Q1 2025. Bank of Ireland says credit-debit card spending in June was up 6% on the year. "Again, there is no sign of the fall in Irish consumer confidence to a 2-year low in April, affecting actual spending decisions," Mr Mac Coille said. "Hence, we are now forecasting a stronger pace of consumer spending growth in 2025, at 2.7%. Notably, Irish households continue to accumulate savings rapidly. Household deposits grew by 6.5% in the year to May to €165bn."
Edmonton Journal
15-07-2025
- Business
- Edmonton Journal
EU vows 'robust' countermeasures if Trump enacts 'unacceptable' 30% tariffs
Article content 'I'm absolutely 100% sure that a negotiated solution is much better than the tension which we might have after the 1st of August,' he told reporters in Brussels on Monday. But he added that 'we must be prepared for all outcomes.' Article content 'I cannot imagine walking away without genuine effort. Having said that, the current uncertainty caused by unjustified tariffs cannot persist indefinitely and therefore we must prepare for all outcomes, including, if necessary, well-considered proportionate countermeasures to restore the balance in our transit static relationship.' Article content The letters to the EU and others come in the midst of an on-and-off Trump threat to impose tariffs on countries and right an imbalance in trade. Article content Trump imposed tariffs in April on dozens of countries, before pausing them for 90 days to negotiate individual deals. As the three-month grace period ended this week, he began sending tariff letters to leaders, but again has pushed back the implementation day for what he says will be just a few more weeks. Article content Article content If he moves forward with the tariffs, it could have ramifications for nearly every aspect of the global economy. The American Chamber of Commerce in the European Union, an influential industry group representing major American corporations in Europe, said the tariffs could 'generate damaging ripple effects across all sectors of the EU and U.S. economies' and praised the EU's delay of countermeasures. Article content In the wake of the new tariffs, European leaders largely closed ranks, calling for unity but also a steady hand to not provoke further acrimony. Article content Just last week, Europe was cautiously optimistic. Article content Officials told reporters on Friday they weren't expecting a letter like the one sent Saturday and that a trade deal was to be inked in 'the coming days.' For months, the EU has broadcast that it has strong retaliatory measures ready if talks fail. Article content Article content Reeling from successive rebukes from Washington, Šefčovič said Monday the EU is 'doubling down on efforts to open new markets' and pointed to a new economic agreement with Indonesia as one. Article content The EU top brass will visit Beijing fora summit later this month while courting other Pacific nations like South Korea, Japan, Vietnam, Singapore, the Philippines, and Indonesia, whose prime minister visited Brussels over the weekend to sign a new economic partnership with the EU. It also has mega-deals in the works with Mexico and a trading bloc of South American nations known as Mercosur, and Šefčovič will meet with his counterpart from the United Arab Emirates next week. Article content While meeting with Indonesia's president on Sunday, Von der Leyen said that 'when economic uncertainty meets geopolitical volatility, partners like us must come closer together.'
African Manager
10-07-2025
- Business
- African Manager
Tunisia and U.S. negotiating 10% tariff reduction
President of the American Chamber of Commerce in Tunisia (AMCHAM Tunisia), Marouane Ben Jemaa, stated that the letter from former President Trump received by Tunisia had also been sent to 12 other countries, including Japan and South Korea. Speaking to Expresso on Tuesday, July 8, 2025, he noted that the United States has given Tunisia a negotiation window from July 8 to August 1, during which both sides aim to reach an agreement on a 10% tariff rate, similar to deals already finalized with other countries. He expressed hope for constructive negotiations that would maintain cooperation with the U.S. while boosting bilateral trade to the benefit of both nations. He also shared optimism, citing positive feedback received so far. Ben Jemaa clarified that negotiations have been underway for some time, though they remain challenging. However, the dialogue is ongoing, with the goal of reaching a win-win solution for both countries. He emphasized the potential to double Tunisian olive oil exports to the U.S. market, urging efforts in that direction while also targeting new markets. He stressed that upcoming decisions will prioritize Tunisia's interests and those of its exporters. Finally, he noted that Tunisia has enjoyed a trade surplus with the United States in recent years, although a recent rise in olive oil prices has led to a growing trade deficit.
