Brussels: Trade Minister Yeo Han-koo has called on the European Union to provide favorable treatment to South Korean firms under its impending implementation of stronger steel safeguard measures, his office announced Thursday. Yeo emphasized the need for continued cooperation during a meeting with Maros Sefcovic, the commissioner for trade and economic security at the European Commission, held earlier this week.
According to Yonhap News Agency, Yeo highlighted the longstanding trade relations and mutual trust between South Korea and the EU, grounded in their bilateral free trade agreement. His visit to Europe coincides with the EU's scheduled implementation of a new steel tariff rate quota (TRQ) system, set to commence next month. This system is intended to be more stringent than the current steel safeguard measures and is expected to negatively impact Korean companies.
The planned changes will see a significant reduction in the quota for the EU's tariff-free steel imports, from the current 35 million tons to 18.3 million tons. Additionally, the tariff rate for imports exceeding this threshold will increase from 25 percent to 50 percent. In the previous year, South Korea exported steel worth approximately US$4.48 billion to the EU, representing 13.5 percent of the nation's total steel exports, as per data from the Korea International Trade Association.
The Ministry of Trade, Industry and Resources reported that Yeo also engaged with European Parliament lawmakers to extend Seoul's diplomatic efforts and address the concerns of Korean companies. During these discussions, Yeo expressed that the EU's protectionist trade measures could attract international criticism and adversely impact Korean businesses in Europe, not only in the steel industry but also in sectors like automotive and home appliances.
Yeo emphasized the urgency of the situation, stating, "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 quotas for Korean companies through high-level and working-level consultations with the EU," according to a press release.