South Korean government, steel industry leaders considering response to possible US trade restrictions

Posted on : 2017-08-31 16:56 KST Modified on : 2017-08-31 16:56 KST
Range of measures, including WTO complaint, are being actively considered
Minister of Trade
Minister of Trade

Minister of Trade, Industry and Energy Paik Un-gyu said at an Aug. 30 steel industry round table on shared growth and cooperation that Seoul plans to “respond resolutely to unreasonable import regulations” and “consider all available means in accordance with international norms,” including a possible World Trade Organization complaint. Paik’s comments came in response to the looming threat of steel quotas being imposed by the Trump administration.

Speaking at the round table at Lotte Hotel in Seoul that morning, Paik stressed that the private sector and government “need to coordinate closely on trade issues, including increased import regulations in major steel-importing nations and research on the security impact of Section 232 in the US.”

Paik also said Seoul would “take advantage of bilateral and multilateral channels with other nations to actively explain our position.”

Section 232 is an item in the US Trade Expansion Act that enables the US government to restrict imports of particular items if it deems them a threat to security. In April, President Donald Trump sent shock waves through the South Korean steel industry when he invoked the provision to issue an executive order demanding an investigation into the effects of imported steel products on South Korean national security.

While the US Commerce Department sent a draft of its investigation report to the White House in June, its announcement has been postponed after objections within the US that additional tariffs on South Korean and other imported steel could lead to rising intermediate goods prices and the loss of American jobs. Paik’s mention of possibly taking the case before the WTO was seen as intended to show both Washington and the domestic steel industry that Seoul is committed to a stern response.

POSCO chairman Kwon Oh-joon, who attended the round table, told reporters afterwards that steel companies had “already been working on countermeasures” in response to the US trade restrictions, adding that the round table had seen “even the [steel] demand companies” agreeing to join in the discussions.

“We intend to develop a far-reaching response plan as more and more stakeholders are brought on board,” Kwon said.

By Choi Ha-yan, staff reporter

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