S. Korea Imposes Steel Import Restrictions from UK... Government Warns of 'Retaliatory Tariffs' via WTO

Advance Notice of Tariffs on UK Imports... WTO Notified of Possible Reinstatement and Increase of Abolished Tariffs

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government has indicated that it may take retaliatory measures against the UK, which imposed safeguards (emergency import restrictions) on Korean steel. It announced a strong response, stating that it will impose tariffs on goods imported from the UK equivalent to the additional tariffs imposed on Korean steel, thereby fully compensating for the damages.

According to the Ministry of Trade, Industry and Energy on the 29th, a notification reserving the right to suspend concessions regarding the UK steel safeguard measures was submitted to the World Trade Organization (WTO) Goods Council on the 28th. Suspension of concessions means re-imposing tariffs that were previously reduced or eliminated.

The UK has succeeded the European Union's (EU) steel safeguard measures applied since 2018 and has been implementing extended safeguard measures on a total of 15 imported steel items, including those from Korea, since July. For domestic steel, quotas were allocated for five items: cold-rolled steel, galvanized steel sheets, color-coated steel sheets, hot-dip galvanized steel sheets, and large-diameter steel pipes. Currently, Korea exports $170 million worth of steel annually to the UK.

The government conducted several bilateral consultations with the UK, demanding compensation, but no agreement was reached. Through this WTO notification, the government has secured the authority to implement suspension of concessions on UK steel safeguards in the future. The scale and items of suspension were not specified. However, it is expected to take about three years before actual retaliatory measures are implemented.

An official from the Ministry of Trade, Industry and Energy stated, "Since the UK Trade Remedies Authority is currently re-investigating the existing recommendations, there is still room for progress in negotiations with the UK," adding, "The government plans to continue close public-private cooperation with Korean companies and maintain ongoing consultations with the UK government regarding the UK steel safeguards."

This content was produced with the assistance of AI translation services.