South Korea has reached a broad consensus with the European Union regarding the bloc’s planned revision of its steel import quota system, which is expected to place additional pressure on Korean steelmakers, according to South Korean industry minister Kim Jung-kwan.
Speaking at a press briefing, Kim stated that South Korea’s steel quota currently stands at around 2.58 million mt and that there was a consensus with the EU that the volume would not be reduced by as much as 46 percent. He added that Seoul did not make any specific offer to the EU, while stressing that the planned measure could violate the existing free trade agreement and that South Korea could consider retaliatory measures if necessary.
The EU is preparing to sharply reduce tariff-free quotas for 30 steel products and raise the tariff on imports exceeding the quotas to 50 percent, as part of its efforts to address global steel overcapacity. The measures are expected to enter into force on July 1. Under the new system, South Korea’s tariff-free steel import quota is reportedly set to fall by 46 percent, to 18.3 million mt from the current 33.8 million mt.
Kim also noted that the South Korean government will introduce support measures for domestic steelmakers once the final quota level is confirmed.