South Korea Asks EU for Favorable Treatment on Steel Safeguard Measures
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- South Korean Trade Minister Yeo Han-koo urged the EU to grant favorable treatment to Korean firms under its new, stricter steel safeguard measures set to be implemented next month.
- The EU's new system will halve tariff-free steel import quotas and double tariffs on excess imports, potentially impacting Korean steel, automotive, and home appliance sectors.
KI-generierte Zusammenfassung
SEOUL, June 4 (Yonhap) -- Trade Minister Yeo Han-koo has called on the European Union to give favorable treatment to South Korean firms under its planned implementation of stronger steel safeguard measures, his office said Thursday.
Yeo made the call in a meeting with Maros Sefcovic, commissioner for trade and economic security at the European Commission, held in Brussels earlier this week, highlighting that South Korea and the EU have maintained trade relations and mutual trust based on the bilateral free trade agreement, according to the Ministry of Trade, Industry and Resources.
Yeo's visit to Europe comes as the EU is scheduled to implement a new steel tariff rate quota (TRQ) system, which is stronger than the current steel safeguard system, starting next month.
The new system is expected to have adverse effects on Korean companies, with the quota for EU's tariff-free steel imports nearly halved to 18.3 million tons from the current 35 million tons. The tariff rate for imports exceeding the threshold will be doubled to 50 percent from the current 25 percent.
In 2024, South Korea exported some US$4.48 billion worth of steel to the EU, accounting for 13.5 percent of the country's total steel exports, according to the data compiled by the Korea International Trade Association.
The ministry said Yeo also met with lawmakers of the European Parliament in an effort to expand Seoul's outreach in connection to the issue and address Korean companies' concerns.
In the meetings, the Seoul minister stressed that such EU trade protectionist measures could raise criticism from the international community and affect the activities of Korean companies operating in Europe, not only in the steel sector but also automotive and home appliances, the ministry added.
"As there is not much time left until the planned implementation of (the new EU steel safeguard scheme) on July 1, the government will closely communicate with related industries and work to secure maximum quota for Korean companies through high-level and working-level consultations with the EU," Yeo said in a press release.
