This could harm Korean investment in the country, said the deputy minister of trade
South Korean Deputy Trade Minister Park Jeong-seon expressed concern over Canada’s recent announcement of tougher protective measures on steel, according to The Korea Times.
At a meeting in Seoul with Alexandra Dostal, senior assistant to the deputy minister of Canada’s Ministry of Innovation, Science and Economic Development, Park called for the plan to be scrapped quickly. According to him, this could create an additional burden on the Korean steel industry, which is already struggling with global oversupply and trade protectionism.
According to Canada’s statement, tariff quotas on steel for countries that have a free trade agreement with it, including South Korea, will be reduced from 100% to 75% of the 2024 level from December 26. Also, from that date, a 25% tariff will be applied to imports of steel derivatives.
As Park noted, Canada’s new protective measures on steel appear to be inconsistent with international trade law. He also expressed concern that these years could negatively affect current and planned investments by Korean companies in Canada and called for efforts to prevent potential damage to economic cooperation between the parties.
According to the Korea International Trade Association, South Korea exported about 620,000 tons of steel products worth $780 million to Canada last year.
Recall that in late November, Canada announced additional protective measures to support steel producers amid trade tensions and US tariffs.
Prime Minister Mark Carney said that these steps are not intended to put pressure on the Trump administration. According to him, they represent a global approach that creates some space for local steelmakers.