Trade minister voices concern over new Canadian steel import policy
Trade Minister Yeo Han-koo, left, poses for a photo with his Canadian counterpart, Maninder Sidhu, in Toronto, Thursday. Courtesy of the Ministry of Trade, Industry and Resources
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 Sunday.
Trade Minister Yeo Han-koo met with Canadian Trade Minister Maninder Sidhu in Toronto last Thursday to convey concerns from Korean steelmakers over the upcoming policy, according to the Ministry of Trade, Industry and Resources.
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 Korea, will be cut from 100 percent to 75 percent of 2024 levels.
As a result, Korean exporters will face a 50 percent tariff on steel shipments that exceed the quota ceiling.
During the meeting, Yeo said many 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 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.