Government Expresses "Strong Regret" Over Canada’s Strengthened Steel Import Regulations... Urges Prompt Withdrawal

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The government has officially expressed strong regret over Canada's strengthened steel import regulations.

On December 1, the Ministry of Trade, Industry and Energy announced that Deputy Minister for Trade Park Jeongseong held talks in Seoul with Alexandra Dostal, Senior Assistant Deputy Minister at Innovation, Science and Economic Development Canada, who is visiting Korea, to discuss economic and trade issues between the two countries.

Deputy Minister Park conveyed his concerns regarding the Canadian government's steel tariff rate quota (TRQ) tightening measures announced on November 26, stating that "there is a high possibility of violating trade laws." Under the new measures, Canada will reduce the steel import quota for free trade agreement (FTA) partner countries, including Korea, from 100% of last year's import volume to 75%, and will newly impose a high tariff rate of 25% on steel derivatives.

Deputy Minister Park emphasized, "Canada's policy not only runs counter to the rules-based trade order established by the World Trade Organization (WTO), but also conflicts with the spirit of the 'Ottawa Group,' which Canada has led." He further stated, "These measures could have a serious impact on Korean companies that have invested in Canada or are planning to do so," urging for their prompt withdrawal and careful reconsideration. He also pointed out that the measures could negatively affect the potential for expanding economic and strategic cooperation between the two countries.

Both sides agreed that there is significant potential for cooperation in various fields, including defense, artificial intelligence, automobiles, batteries, critical minerals, and energy. Deputy Minister Park specifically mentioned the possibility of defense industry cooperation between Korea and Canada, including the Canadian submarine procurement project, for which Korean companies are currently shortlisted. He assessed, "Korea and Canada are exemplary partners that have long upheld a rules-based trade order." He added, "I hope that we will continue to strengthen a mutually beneficial industrial supply chain based on trust in the future."

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