S. Korea's steel producers caught in middle of U.S. trade wars
- 6 years ago
미국에 이어 EU까지…보호주의 물결에 멍 드는 한국 철강
The European Union's safeguard measures on steel bad news to Korea, which is already hit by quota limits to the U.S. market.
Kim Hyesung reports.
Korea's steel industry is caught in the middle of an ongoing global trade war.
The European Union's announcement to impose provisional safeguard measures on imported steel products Thursday could particularly have an impact on Korea.
Korea is the number four steel exporter to the EU, as well as the third largest steel exporter to the United States.
But its steel exports already face quota limits from the U.S.
As part of an agreement to the amendment of the Korea-U.S. free trade agreement, Korea's steel has received a quota of about 2-point-68 million tonnes of steel exports, or 70 percent of the annual average Korean steel exports to the United States between 2015 and 2017.
Other steel exporters to the U.S. like the EU, Mexico and Canada are facing 25 percent tariffs, which went into effect in June.
The EU's retaliatory tariffs which aims to prevent a sudden increase of steel imports diverted from the U.S. is expected to further squeeze Korean steel producers.
"Korean steel exports to Europe are mainly steel sheets and steel plates, which are produced by big steelmakers, whereas export items to the U.S. are mainly steel pipes that are produced by small and mid-sized companies. So the EU's safeguard measure could be a double squeeze on Korean steel exporters."
Korea's trade ministry held a meeting with local steelmakers Thursday morning to draw up measures aimed at minimizing possible negative effects on steel exports. The government also said it will help local manufacturers secure as much quota as possible.
The EU investigation into a number of steel imports is set to last until the end of this year before it makes its final decision on safeguard measures.
Kim Hyesung, Arirang News.
The European Union's safeguard measures on steel bad news to Korea, which is already hit by quota limits to the U.S. market.
Kim Hyesung reports.
Korea's steel industry is caught in the middle of an ongoing global trade war.
The European Union's announcement to impose provisional safeguard measures on imported steel products Thursday could particularly have an impact on Korea.
Korea is the number four steel exporter to the EU, as well as the third largest steel exporter to the United States.
But its steel exports already face quota limits from the U.S.
As part of an agreement to the amendment of the Korea-U.S. free trade agreement, Korea's steel has received a quota of about 2-point-68 million tonnes of steel exports, or 70 percent of the annual average Korean steel exports to the United States between 2015 and 2017.
Other steel exporters to the U.S. like the EU, Mexico and Canada are facing 25 percent tariffs, which went into effect in June.
The EU's retaliatory tariffs which aims to prevent a sudden increase of steel imports diverted from the U.S. is expected to further squeeze Korean steel producers.
"Korean steel exports to Europe are mainly steel sheets and steel plates, which are produced by big steelmakers, whereas export items to the U.S. are mainly steel pipes that are produced by small and mid-sized companies. So the EU's safeguard measure could be a double squeeze on Korean steel exporters."
Korea's trade ministry held a meeting with local steelmakers Thursday morning to draw up measures aimed at minimizing possible negative effects on steel exports. The government also said it will help local manufacturers secure as much quota as possible.
The EU investigation into a number of steel imports is set to last until the end of this year before it makes its final decision on safeguard measures.
Kim Hyesung, Arirang News.