On July 1, the Korea Iron and Steel Association released a statement saying, "We sincerely thank the government authorities for their efforts to defend the export base of South Korean steel to the EU, utilizing all diplomatic channels, even as the overall tariff-free import quota for the EU was nearly halved."
The association added, "We will closely examine our export strategies by item to ensure that the opportunities for accessing the EU market translate into actual export results, and we will actively seek ways to efficiently utilize the secured quotas."
Starting today, the EU will increase tariffs on excess quantities for 30 steel products to 50%, while implementing a TRQ that allows for tariff-free imports of up to 18.35 million tons annually.
A significant feature of this new system is the substantial reduction in tariff-free import volumes. The total tariff-free quota for the EU has decreased from 33.82 million tons to 18.35 million tons, a reduction of approximately 46%, with other quotas to be allocated based on a 5% market share.
As a result, major steel-exporting countries have engaged in intense negotiations over the limited quotas. South Korea, as a signatory of the Korea-EU Free Trade Agreement (FTA) and a strategic partner, actively emphasized the need for fair consideration of South Korean steel during the negotiations. Consequently, South Korea secured a dedicated quota of 2.073 million tons that can be used without competition from other countries.
The association assessed that this negotiation outcome allows the domestic steel industry to maintain stable trading relationships in the EU market and secure a predictable export base amid rapidly changing trade environments.
The association stated, "The EU is one of our key export markets, and the operation of the steel TRQ directly impacts the export stability and production and sales plans of domestic steel companies. In this context, the results of this negotiation are evaluated as having minimized the reduction of our quotas while securing a favorable level of tariff-free volume compared to major competing countries."
Finally, the association pledged, "We will make every effort to maintain our export competitiveness in the EU market by efficiently utilizing the secured quotas, while also expanding cooperation with upstream industries such as automotive, shipbuilding, and defense to respond to external uncertainties. We also look forward to the government’s continued interest and support."
* This article has been translated by AI.
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