If France has its way, Korea would need to give prior warning before exporting automobiles to the European Union. Analysts say the move is a first step toward a re-introduction of tariffs cut when the Korea-EU free trade pact took effect last July.
Sales of Korean cars in France surged by over 28 percent this year, but sales of French cars dropped by over 14 percent. France's biggest carmaker, PSA Peugeot Citroën, announced plans last month to close one of its plants and cut 8,000 jobs.
The Korean government responded by saying that France has no substantial evidence to back up its claim that the French auto market has suffered directly because of the spike in Korean imports. The number of Korean auto exports to the EU was actually substantially lower in 2011 compared to 2007, dropping from 640,000 to 350,000.