en.Wedoany.com Reported - The South Korean government has initiated an export impact assessment of the European Union's new steel trade measures. On July 13, Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Energy (MOTIE) visited Hyundai Steel's Dangjin steelworks in South Chungcheong Province.
This visit aimed to evaluate the impact of the EU's new steel measures on South Korean exports and discuss response strategies with industry representatives. The meeting focused on reviewing how the quota arrangements secured through consultations with the EU are being implemented, ensuring these quotas translate into actual export opportunities. Officials and industry participants discussed the utilization of South Korea's country-specific quotas and global residual quotas, export conditions for various steel products, operational difficulties, and responses to steel import restrictions from the United States, the United Kingdom, and Canada, as well as the EU's Carbon Border Adjustment Mechanism (CBAM).
The EU's new steel safeguard regime took effect on July 1, replacing the previous global safeguard system. Under the new framework, imports exceeding quota allocations will be subject to a 50% tariff, and the total annual duty-free import volume has been reduced by approximately 46%, from 33.82 million tons to 18.35 million tons. The South Korean government stated that it has secured a country-specific quota of 2.073 million tons through negotiations with the EU. Although this amount is about 19.7% lower than South Korea's previous national quota of 2.58 million tons, it retains most of South Korea's market access given the EU's overall reduction of duty-free quotas by approximately 46%. In addition to the country-specific quota, South Korean exporters can also utilize up to 1.736 million tons of global residual quotas, making product-specific export strategies and customs clearance timing management more critical.
During the meeting, industry representatives discussed how to more effectively utilize country-specific quotas and global residual quotas, product-level export strategies, customs procedures, and changes in European demand. They outlined the practical difficulties arising from the implementation of the EU's new measures and called for continued government support. Participants agreed on the need for close cooperation and regular information sharing between the government and industry to respond to tightening steel import restrictions in major markets and changes in the global trade environment, including CBAM. Trade Minister Yeo Han-koo stated that the EU's new steel measures have significantly altered the export environment, emphasizing the importance of close collaboration between the government and industry to maximize quota utilization and quickly address operational challenges. He added that the government will closely monitor the implementation of the EU's new steel regime and continue consultations with the industry, while providing necessary support in response to steel import restrictions in major markets and trade measures such as CBAM.
