Government Considers Participation in 'Anti-China Steel Alliance'

Discussion on New Steel Trade Agreement 'GASS' Beyond US Section 232 Steel Tariffs

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government is considering participating in the U.S.-led 'anti-China steel alliance.' The United States, which is pushing for steel tariff reductions with Japan following the European Union (EU), is demanding allied countries join a new steel trade agreement aimed at countering China. As the impact of U.S.-China conflicts spreads from semiconductors to key industries such as steel, South Korea, caught in the middle of this power struggle, is facing increasing pressure to choose sides.

According to the government and related industries on the 15th, the Ministry of Trade, Industry and Energy is currently discussing easing steel export restrictions based on Section 232 of the Trade Expansion Act with the U.S., along with participation in a new steel and aluminum trade agreement called 'GASS.'

GASS stands for the 'Global Arrangement on Sustainable Steel and Aluminum,' a cooperative framework the U.S. decided to pursue in response to 'non-market' practices after reaching an agreement with the EU on the steel dispute last October. Its purpose is to prevent overproduction and enhance the sustainability of the steel industry through carbon reduction efforts, but it is widely interpreted as a measure targeting China. The U.S. and EU plan to form a working group to draft the agreement by 2024. They have also opened the door for other countries to join the agreement.

The government is weighing the possibility of joining the steel alliance. The steel industry also supports participation, making it difficult for the government to ignore. An industry official said, "The U.S. intends to form an anti-China tariff alliance with allied countries and provide benefits or impose disadvantages on steel exports depending on participation. Since Japan and the UK, which are close to concluding steel negotiations with the U.S., are expected to officially join the new steel trade agreement, our government should proactively participate and lead the rule-setting."

A government official stated, "There are no concrete details yet regarding the U.S.-EU steel trade agreement, so we are closely monitoring the situation," adding, "We are keeping the possibility of participation open and are considering whether to join early or after the outline is somewhat finalized."

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