South Korea’s trade minister has expressed concern over Ottawa’s plan to implement stronger safeguard measures for its steel industry, warning the decision could adversely affect businesses in both countries, Seoul’s ministry said on Sunday.
Trade Minister Yeo Han-koo met with Canadian Trade Minister Maninder Sidhu in Toronto last Thursday to convey concerns from South Korean steelmakers over the upcoming policy, according to the Ministry of Trade, Industry and Resources, reports Yonhap news agency.
Canada recently announced plans to reduce current tariff rate quotas (TRQs) for steel imports starting Friday to protect its steel industry amid a global oversupply.
Under the plan, Canada’s steel TRQs for countries with a free trade agreement (FTA), including South Korea, will be cut from 100 percent to 75 percent of 2024 levels.
As a result, South Korean exporters will face a 50 percent tariff on steel shipments that exceed the quota ceiling.
During the meeting, Yeo said many South Korean companies are making large-scale investments in Canada and urged his counterpart to consider favorable measures, such as granting exemptions or expanding quotas.
Yeo said the new measure could also hurt Canadian industries, noting that South Korean steel products are used in pipelines in Canada’s oil industry.
The two ministers agreed to establish a dialogue channel for strategic areas under the bilateral FTA framework.
Meanwhile, South Korea’s exports jumped 17.3 per cent from a year earlier in the first 10 days of December, bolstered by robust global demand for semiconductors and an increase in working days, data showed.
Outbound shipments reached $20.58 billion in the December 1-10 period, compared with $17.54 billion tallied a year earlier, according to the data from the Korea Customs Service. It marked the largest figure ever for any 10-day period, reports Yonhap news agency.
Average daily exports climbed 3.5 percent on-year to $2.42 billion, according to the customs office. The number of working days during the period came to 8.5 days, compared with 7.5 days a year earlier.
Imports rose 8 percent on-year to $20.65 billion over the period, resulting in a trade deficit of $70 million, the data showed.
