Korea seeks expanded naphtha supplies from India amid Mideast disruptions: minister
Trade Minister Yeo Han-koo speaks during a World Trade Organization (WTO) ministerial conference in Cameroon, Friday (local time). Courtesy of Ministry of Trade,Industry and Resource
Trade Minister Yeo Han-koo said Tuesday he has asked India to expand naphtha exports to Korea as supply disruptions of the key industrial material tied to the Middle East crisis continue to affect the country.
Yeo said he made the request during a meeting with his Indian counterpart, Piyush Goyal, during this week's World Trade Organization (WTO) ministerial conference in Cameroon.
"We made the emergency request as our biggest import item from India is naphtha, accounting for around 20 to 21 percent of Korea's overall imports from the country," Yeo said at a press briefing after returning from the trip.
The Seoul government will push for working-level consultations with India to move forward the discussion, he said.
Korea has been facing difficulties in supplying naphtha, an industrial feedstock widely used in the petrochemical and other industries, as it relies heavily on imports. About half of its supply comes from overseas, with roughly 70 percent sourced from the Middle East.
Last year, Korea imported about 26.84 million tons of naphtha, shipping the biggest portion from the United Arab Emirates, followed by Algeria, Qatar, Kuwait and India, according to data compiled by the Korea International Trade Association.
During the WTO conference week, Yeo also met with U.S. Trade Representative (USTR) Jamieson Greer to discuss pending issues related to non-tariff trade barriers between the two countries.
"We reached a consensus to closely cooperate to stabilize and facilitate digital trade and e-commerce, in particular," the minister said.
Regarding the imminent release of the USTR's annual report on foreign trade barriers, Yeo said there is no need to be "much anxious," noting that the government will work to resolve any misunderstandings with the U.S. side and continue consultations with Washington to safeguard South Korea's national interests.
He also noted that the two countries are expected to hold their delayed joint free trade agreement committee meeting soon, saying non-tariff barrier issues are making progress.
In addition, the Korean trade chief held bilateral meetings with his counterparts from some 20 economies, including the European Union, Britain, Canada, Singapore and Mexico.