Seoul, Oct 11 (IANS) South Korea’s trade minister has urged the European Union (EU) to seek a friendly and constructive solution regarding the bloc’s recently announced measures to replace existing steel safeguard rules, warning the new system could negatively impact Korean steelmakers, his office said on Saturday.

Trade Minister Yeo Han-koo delivered such a message during a bilateral meeting with Maros Sefcovic, the European Commission’s commissioner for trade and economic security, held Friday (local time) in Gqeberha, South Africa, on the sidelines of the Group of 20 (G20) Trade and Investment Ministers’ Meeting and the Global Forum on Steel Excess Capacity (GFSEC), reports Yonhap news agency.

Yeo expressed concerns that the EU’s proposed tariff-rate quota system, which would effectively reduce import quotas and raise tariffs, would create greater uncertainty for Korean steel exporters.

“South Korea shares the values of a multilateral free trade system and has been working closely with the EU to address global steel excess capacity through mechanisms, such as the GFSEC,” Yeo said. “It is important that the new measures do not undermine free and fair trade between Korea and the EU, and that we work together to find an amicable solution.”

He added that South Korea, as a free trade agreement (FTA) partner with the EU since 2011, should be given differentiated consideration compared with non-FTA countries, calling for sufficient quota allocations to maintain current trade levels.

The two sides agreed to continue close discussions on the matter.

During the GFSEC meeting, Yeo raised concerns over the challenges facing the global steel industry while pledging South Korea’s continued cooperation through fair trade and low-carbon initiatives. At the G20 meeting, he also called for expanded plurilateral cooperation amid challenges facing multilateral trade schemes.

Meanwhile, Yeo Han-koo met European Trade and Economic Security Commissioner Maros Sefcovic on the margins of the Group of 20 ministerial meeting in South Africa and the Global Forum on Steel Excess Capacity.

It was their first meeting since the European Union (EU) announced on Tuesday plans to cut its annual tariff-free steel import quota by 47 percent to 18.3 million tons and to double the tariff rate on imports exceeding the quota to 50 percent.

—IANS

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