South Korea, EU reach consensus on steel import policy

Key facts

• South Korea and the EU have reached a broad consensus on the EU's new steel import quota system.
• The EU plans to reduce tariff-free quotas on 30 steel products and increase tariffs on imports exceeding quotas.
• The agreed quota volume will not be reduced by as much as initially feared, according to Industry Minister Kim Jung-kwan.
• South Korea argued the EU measure violates the free trade agreement and indicated potential retaliatory measures.
• Support measures for South Korean steelmakers will be implemented once the quota is finalized.

South Korea has achieved a broad consensus with the European Union concerning the bloc's forthcoming steel import quota system, which had raised concerns among South Korean steel manufacturers. Industry Minister Kim Jung-kwan stated that the agreed-upon quota volume would not see the significant reduction previously feared.

Kim indicated that while the EU plans to reduce tariff-free quotas on 30 steel products and impose a 50 percent tariff on imports exceeding these quotas starting July 1, the consensus reached would prevent a drastic cut. The EU's measures are intended to address global overcapacity in the steel industry.

South Korea had previously argued that the EU's planned policy violates the free trade agreement and had not ruled out retaliatory measures. The government is also preparing support measures for its domestic steel industry once the final quota is confirmed. The minister's remarks followed his recent trips to the Middle East, Europe, and Kazakhstan.