This file photo, taken October 1, shows Vice Trade Minister Park Jung-sung. (NEWSIS)
Vice Trade Minister Park Jung-sung expressed regret Monday over Canada’s recent announcement of stronger steel safeguard measures, calling for a swift withdrawal of the plan that he said may place an additional burden on South Korea’s steel industry, already struggling with global oversupply and trade protectionism, Park’s office said.
Park made the call in a meeting with Alexandra Dostal, senior assistant deputy minister at Canada’s Innovation, Science and Economic Development, held just days after the Canadian government unveiled its plan to reduce the current tariff rate quotas for steel imports, according to the Ministry of Trade, Industry and Resources.
Under the plan, Canada’s steel TRQs for countries that have a free trade agreement with Canada, including South Korea, will be decreased from 100 percent to 75 percent of 2024 levels starting Dec. 26.
Those that do not have a free trade agreement with Canada, such as China, will face steel TRQs reduced from 50 percent to 20 percent of 2024 levels.
Canada will also apply a 25 percent tariff on all steel derivative imports from Dec. 26.
“Canada’s measures are highly likely to violate trade law and run counter not only to the rules-based multilateral trading system symbolized by the World Trade Organization but also to the spirit of the Ottawa Group, led by Canada,” Park said. Ottawa Group refers to a coalition of 13 WTO member nations, established to promote a rules-based multilateral trading system.
Park emphasized concerns that Canada’s new steel safeguard plan may negatively affect Korean companies’ ongoing and planned investment in the North American country, calling for Canada’s efforts to prevent potential damage to economic cooperation between the two countries.
The two sides have recently been pushing to expand cooperation in strategic industries, such as defense, artificial intelligence, battery and critical minerals, with Canada recently short-listing Korea’s major shipbuilder Hanwha Ocean Co. as one of the final two contenders for its patrol submarine project. (Yonhap)