S. Korea vows all-out response to EU's plan to cut steel import quotas

Seoul, Oct 10 (IANS) The South Korean government on Friday pledged to take all available steps in response to the European Union (EU)'s proposal to sharply reduce tariff-free steel import quotas and increase duties on out-of-quota shipments.

Possible measures were discussed during an emergency meeting presided over by Vice Trade Minister Park Jong-won, the Ministry of Trade and Industry said, following the announcement by the European Commission, which handles trade matters for the EU. The EU is South Korea's second-largest export market for steel products.

The ministry said domestic steelmakers, who took part in Friday's meeting, called for a swift and robust government-level response to the EU's move, reports Yonhap news agency.

Participants also urged the government to expand support for the industry's transition toward low-carbon and high value-added products, calling it essential for the long-term structural improvement amid heightened global competition.

Under its proposal, the EU plans to cut its annual tariff-free steel import quota by 47 percent to 18.3 million tons. In addition, the out-of-quota tariff rate will be doubled from the current 25 percent to 50 percent.

The EU currently operates a safeguard mechanism that imposes a 25 percent tariff on steel imports exceeding established quotas. The system is set to expire in June 2026, and the new proposal would effectively replace it, pending approval by EU member states.

Meanwhile, Industry Minister Kim Jung-kwan met with the heads of key industry ministry-affiliated agencies on Friday and asked for their cooperation to thoroughly implement the government's key policy priorities.

"Close cooperation with affiliated agencies is crucial for the Ministry of Trade and Industry to successfully accomplish the government's five policy priorities," Kim said during the meeting held in central Seoul, as he noted changes following the government's reorganization that took effect on Oct. 1.

Under the reorganization, the energy departments of the industry ministry, as well as 21 government-affiliated agencies, have been transferred to the new energy ministry for the first time in 32 years.

Its name also changed from the Ministry of Trade, Industry and Energy to the Ministry of Trade and Industry.

--IANS

na/