According to the World Trade Organization (WTO), the European Commission notified the WTO about the expansion of steel safeguard measures on May 28. Within the scope of these measures, a quota system will be applied to 26 types of steel products and a 25% customs duty will be applied to import amounts exceeding this quota.
Steel safeguard measures first came into force in July 2018 and were extended for three years in June 2021. The EU has the right to extend these measures only twice, and the second extension can last a maximum of two years. Therefore, the EU decided to extend steel safeguard measures until 2026, the maximum period.
This decision poses significant challenges for the Korean steel industry. Korea's steel exports to the EU were already limited due to existing safeguard measures, and this new extension will further reduce the chances of Korean steel producers to compete in the EU market. As the reason for this additional extension, the EU cited the fact that the domestic steel industry is still under a heavy burden due to the continued excessive steel production in the global market.
Korean steel producers stated that the continuation of the EU's safeguard measures would require them to reconsider their export strategies and look for alternative markets. This development represents a significant challenge for the Korean steel industry.
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