Korea looks for exemption from Chinese definitive measures

Korea looks for exemption from Chinese definitive measures

Korean officials are in talks with China in order to secure their exemption from the definitive safeguard measures that will come into effect as from November 20, 2002. Chinese definitive measures are intended cover hot rolled, cold rolled, pre-painted galvanized, electrical steel and cold rolled stainless steel. A delegation representing the Ministry of Commerce, Industry and Energy is holding bilateral talks with the Chinese counterparts with this regard. The delegation is aiming to get the Chinese officials grant any type of concession from the definitive measures. Korean authorities comment that although the tariff rates to apply in case the quotas are exceed are heavy, they are in any case better than the conditions of provisional measures implemented on May 24, 2002. Korea believes that the contradicting point with Chinese measures is that they cover component products imported by joint venture companies, such as hot rolled products that are not finished products but rather components that the joint ventures produce cold rolled products with, creating jobs and revenue in China. POSCO officials express that the allocated quota amounts are not so small and that they would look into ways to maximize the value of such quota. Last year Korea exported 2.74 million tons of steel worth $1.45 billion. The five products included in the definitive safeguards totaled to 1.3million tons of this amount equaling to a $518 million.