201 Series: Korea

201 Series: Korea

U.S. Section 201 (S201) protectionist measures are taking a major toll on Korea's steel industry. Steel insiders report the value of South Korean steel exports dropped significantly this year due to the measures. Korean officials add that a glut of safeguard measures in Korea's major export markets - Japan, China and the U.S. are blocking sales of its goods. The export sector saw a 42% plunge across the board in the first half of 2002. It is this major factor that spurred Korea into the midst of a lawsuit against the U.S. on 201 tariffs. In addition, Korea has also requested a WTO panel to quicken the process. Sources report Korea filed the suit in response to negotiations which ended in a deadlock. Korea's Trade and Economics Minister was in the U.S. through May 17 with the primary goal of convincing the U.S. to pay compensation for damage done to its steel industry and to seek exemptions if possible. Meanwhile, negotiations between Korea and the EU were underway in April, regarding EU tariffs on steel. Korean officials indicate that EU safeguards will not have a major impact on their steel exports and that they are working with the EU against the U.S. on its steel tariffs.