South Korean Trade Minister Yeo Han-koo expressed concerns over the Canadian government’s plan to strengthen protective measures for its steel industry, which could negatively affect South Korea’s steel product exports, according to officials.
During an online meeting with Canadian Trade Minister Mary Ng, Yeo conveyed his “deep concern” regarding Canada’s decision to implement the new measures starting December 26, and requested preferential treatment for Korean industrial products in light of the longstanding trade relations between the two countries, the Ministry of Trade, Industry and Energy said.
Canada’s plan includes reducing current tariff-rate quotas on steel imports in an effort to safeguard its domestic steel industry amid a global supply glut. Under the new measure, tariff-rate quotas for countries that have free trade agreements with Canada — including South Korea — will be cut from 100% to 75% of 2024 levels.
The ministry noted that Yeo pointed out that Canada’s quota system violates the principles of free trade under the World Trade Organization and also breaches the bilateral free trade agreement between the two nations.