By Lee Yoonseo and Hahm Hee-eun

The European Union (EU) started to implement preliminary action to safeguard its steel industries on July 19, and the Korean government is working with domestic steel companies to respond to the global crisis.

Due to the protectionist economic policies carried out by U.S., steel exports to U.S. market were redirected to EU markets, causing economic damage to the steel industries in Europe. Hence, the European Commission began investigating its own safeguard measures on March 26. 

The European Commission announced on July 18 that it will embark on preliminary action that will allow customs-free entry for steel up to a company's average volume of imports over the past three years (2015-2017), and then levy a 25 percent tariff on anything above that amount. Preliminary action is a temporary measure that is carried out before the finalization of safeguard investigations that are allowed when it is considered urgent. 

According to the Ministry of Foreign Affairs, steel products exported by Korea to the EU amount to 3.3 million tons, which is priced at around USD 2.9 billion.

The Korean government noted the unfairness of Europe’s emergency restrictions on imports, and delivered its opinion through ministerial-level dialogue. 

The Ministry of Trade, Industry and Energy (MOTIE) invited 14 steel companies and steel industry representatives, including POSCO and Hyundai Steel, to discuss the impact on the industry and future economic plans on July 19.

A government official said, "We will continue to use the opportunity to demonstrate our situation to the European Commission and its member states, and strive to minimize economic damage by cooperating with the domestic steel industry."


clo1120@korea.kr