Canada's New Steel Safeguard Measures Spark Concern for South Korea's Vice Trade Minister
Canada's recent announcement of stricter steel safeguard measures has caused a stir in South Korea's trade sector. Vice Trade Minister Park Jung-sung expressed deep regret over the plan, warning of potential adverse effects on South Korea's steel industry, which is already grappling with global oversupply and trade protectionism. The announcement came just days after a meeting between Park and Alexandra Dostal, senior assistant deputy minister at Canada's Innovation, Science and Economic Development.
The Canadian government's plan involves reducing steel tariff rate quotas (TRQs) for countries with free trade agreements, including South Korea, from 100% to 75% of 2024 levels, effective December 26. For countries without such agreements, like China, the reduction is from 50% to 20% of 2024 levels. Additionally, Canada will impose a 25% tariff on all steel derivative imports from December 26.
Park's office stated that these measures could violate trade law and undermine the rules-based multilateral trading system, which Canada itself is a part of. He emphasized the potential negative impact on Korean companies' investments in Canada, urging the Canadian government to take steps to prevent any harm to economic cooperation between the two nations.
The two countries have been actively expanding cooperation in strategic industries, including defense, artificial intelligence, battery technology, and critical minerals. Canada's recent decision to shortlist Hanwha Ocean Co., a major South Korean shipbuilder, for its patrol submarine project further highlights the importance of these economic ties.
The situation raises questions about the future of trade relations between South Korea and Canada, and the potential consequences for both countries' industries. As Park's concerns suggest, the new steel safeguard measures could significantly impact South Korea's steel sector and its ongoing investments in Canada.
