South Korea and the United States have agreed to work together to swiftly resolve grievances against a new U.S. law that excludes South Korean-made electric vehicles(EVs) from a U.S. tax credit.

Trade minister Ahn Duk-geun informed correspondents of the development following a meeting with White House's Director of the National Economic Council, Brian Deese, in Washington on Tuesday.

Ahn said the two sides agreed on the need for a practical resolution to the issue surrounding the Inflation Reduction Act(IRA).

Signed into law last month, the IRA restricts eligibility for subsidies to EVs assembled in North America or those equipped with batteries or battery components made exclusively from minerals sourced from the continent.

Seoul has raised the possibility that the law violates the two nations’ bilateral free trade pact and World Trade Organization rules.

Ahn is also scheduled to meet U.S. Trade Representative Katherine Tai on Wednesday.