South Korea Vows to Protect Steel Firms Ahead of New EU Policy
Quick Look
- South Korea's trade ministry pledged to protect its steel companies' interests as the EU implements a new policy on July 1 to address global overcapacity.
- The policy will halve tariff-free steel import quotas to 18.3 million tons, impacting Korean exports.
AI-generated summary
Why It Matters
The EU is implementing a new steel policy to address global overcapacity, which involves reducing tariff-free quotas and increasing tariffs on imports exceeding those quotas. This policy is set to take effect on July 1.
SEOUL, June 16 (Yonhap) -- South Korea will make all necessary efforts to protect the interests of its steel companies ahead of the implementation of a new European Union (EU) steel policy aimed at addressing global overcapacity, the trade ministry said Tuesday.
"The new EU steel policy is a crucial matter that could have a direct impact on the steel industry's exports, investment and employment," Trade Minister Yeo Han-koo said during a meeting with representatives of Korean steel companies.
The remarks came as the EU plans to sharply reduce tariff-free quotas on 30 steel products and raise the tariff rate to 50 percent on imports exceeding the quotas, effective July 1, as part of efforts to address "global overcapacity."
The new system is expected to have adverse effects on South Korean companies, with the quota for the EU's tariff-free steel imports nearly halved to 18.3 million tons from the current 33.8 million tons.
South Korea and the EU have been negotiating details of the steel quotas since April.
"With the negotiations entering the final stage, the government will make all necessary efforts to protect South Korean steel companies' legitimate interests and market access," Yeo added.
The trade minister also noted South Korean companies may face other trade measures around the world, including tariff hikes, safeguards and anti-dumping duties.
"We need to strengthen our fair trade practices and transparency in order to avoid unnecessary hurdles to exports."
What to Watch
AI outlook — possibilities, not facts
EU may adjust quotas based on final negotiations with South Korea.
Possible · Within days
Open Questions
- Will negotiations between South Korea and the EU lead to revised quotas?
- What specific measures will South Korea take to protect its companies?
- How will other countries react to the EU's new steel policy?
