Securing a Korea-specific quota despite the EU steel duty-free volume reduction
As the EU eases steel tariffs and Korea's export quota decreases, the impact is limited. Use dedicated and shared quotas to reduce losses and expand your response to the EU market.
As the European Union (EU) decided to reduce the dutyfree import volume for steel products starting July 1, the Korean steel industry will also be affected. However, through negotiations, South Korea secured a dedicated quota and avoided a relatively limited reduction compared with the overall scale of the cut.
According to the Ministry of Trade, Industry and Energy, South Korea secured 2,073,000 tons based on its country quota. This is a 19.7% decrease from the previous 2,581,000 tons. Considering that the EU’s overall dutyfree volume was reduced by 46%, South Korea is being assessed as having held up relatively well.
In addition, South Korea can also use the shared quota and countrytocountry competitive volume under its free trade agreement (FTA) with the EU. Including these, the total volume the Korean steel industry can use dutyfree could expand from at least 2,073,000 tons to as much as 3,548,000 tons. The ministry said it plans to continue consulting with the industry to reduce export damage in the EU market.