Trade Minister, Consecutive Visits to EU and Mexico…Addressing Issues such as Steel and Tariffs

Trade Minister, Consecutive Visits to EU and Mexico…Addressing Issues such as Steel and Tariffs

Concerns about steel import regulations conveyed during meeting with EU Trade Commissioner

Meeting with Mexican Minister of Economy to discuss Korea-Mexico FTA and other matters

The government has engaged in trade diplomacy to minimize damage to Korean companies caused by the European Union's (EU) strengthened steel import regulations and Mexico's tariff increases.

According to the Ministry of Trade, Industry and Energy on the 14th, Trade Minister Yeo Han-koo met with Maroš Šefčovič, European Union (EU) Executive Vice-President for Trade and Economic Security, in Brussels, Belgium, on the 11th to convey concerns from Korean industries regarding the EU's steel import restriction measures.

Minister Yeo requested the EU's careful approach and cooperation to ensure that Korean steel products do not face unreasonable restrictions due to the EU's 'Steel Overcapacity Response Act', which is expected to be implemented in the second half of this year.

He particularly emphasized that the EU is Korea's second-largest steel export market, expressing concerns that this measure would not only affect the steel industry but also harm the supply chain stability of Korean investing companies that produce finished products such as automobiles and home appliances locally.

In response, the EU side expressed empathy for the strategic importance of the steel industry and stated that they would continue to seek mutually beneficial solutions through high-level and working-level consultations in the future.

Concrete achievements were also confirmed during this visit.

As the EU Commission has finally decided to include the battery industry in the 'energy-intensive industry' support target, a reduction in electricity costs and manufacturing cost savings are expected for Korean battery companies operating in countries such as Poland.

This measure is evaluated as the fruit of close cooperation between the Korean government, the EU Commission, and the Polish government.

Minister Yeo stated, "The government will mobilize all its trade capabilities to support Korean companies operating overseas so that they can invest stably and secure competitiveness."

Subsequently, Minister Yeo, who visited Mexico for two days starting on the 12th, raised the difficulties faced by Korean companies regarding the tariff increase measures implemented by the Mexican government against non-FTA countries and requested their prompt resolution.

Meeting with Mexican Minister of Economy Marcelo Ebrard, Minister Yeo requested ▲ stable operation and improvement of the tariff reduction system ▲ expansion of duty-free quotas in the automobile and home appliance sectors, while also emphasizing the necessity of signing an FTA between the two countries as a fundamental solution to resolve such trade uncertainties.

The two countries agreed to establish a ministerial-level strategic dialogue and a working-level working group for this purpose.

Furthermore, Minister Yeo successively met with key figures from the Mexican Parliament and business circles, asserting that Korea is Mexico's optimal strategic partner and requesting support for FTA promotion.

Minister Yeo stated, "Under an uncertain trade environment, the government is pursuing a full-fledged diversification policy, and will actively support our companies through expanding tariff reduction incentives and promoting an FTA with Mexico, the largest trading partner in Latin America."