The Ministry of Trade, Industry and Energy (Minister Kim Jeong-gwan, hereinafter referred to as the Ministry of Trade) announced on the 7th (local time) that the European Union (EU) has completed collecting stakeholder opinions and announced plans to introduce a new import quota (TRQ) system to replace the existing steel safeguard measures.
According to the draft TRQ proposed by the EU, the new annual steel quota total amount will be reduced to 18.3 million tons, 47% less than the annual steel quota total under the current safeguard system for 2024. Additionally, the tariff rate applied to quantities exceeding the quota will be increased from the current 25% to 50%.
The EU plans to introduce a melt and pour country criterion for all imported steel products, obliging proof of the country where the steel was actually produced. This is to clearly identify the country where the steel products are physically made.
This new TRQ system is expected to be introduced by member vote no later than the end of June 2026, following the EU’s general legislative implementation process, before the current steel safeguard measures expire.
In Korea’s case, specific impacts have yet to be identified as the country-specific quota allocation has not been announced. However, the Ministry of Trade predicts that the 47% reduction in quota total may significantly impact the EU market, which is the second-largest market for domestic steel exports.
However, the EU has stated that it will consider free trade agreement (FTA) countries when allocating national quotas, and the Korean government plans to negotiate with the EU to protect the interests of the domestic steel industry as much as possible.
The Ministry of Trade announced that Deputy Minister Moon Shin-hak plans to visit steel export sites this week to directly hear the challenges on the ground. Additionally, Deputy Minister for Trade Negotiations Yeo Han-goo is scheduled to meet separately with Maroš Šefčovič, the European Commission’s Executive Vice President for Trade, to convey Korea’s concerns and stance on the new TRQ proposal.
The Ministry plans to hold a public-private joint countermeasure meeting under the supervision of the Industrial Supply Chain Policy Bureau on the 10th to discuss the “Steel Industry Advancement Plan” in response to the EU’s introduction of TRQ. The government intends to establish a response direction through this meeting and cooperate with the industry to minimize export disruptions.