Dec. 21 (Asia Today) -- South Korea's industry ministry said Sunday it has raised concerns with Canada over strengthened tariff-rate quota measures on steel set to take effect Dec. 26 and asked Ottawa to consider steps including an exemption or expanded quota for South Korea.
A tariff-rate quota (TRQ) is a trade system under which a limited volume of steel imports can enter Canada at a lower or zero tariff, while shipments exceeding that quota face much higher duties. Under Canada's revised measures, the amount of South Korean steel that can enter Canada at the lower tariff rate will be reduced, and shipments above that limit would face much higher tariffs.
The Ministry of Trade, Industry and Energy said Trade Negotiations Director General Yeo Han-gu met Canadian Minister of International Trade Maninder Sidhu and Canadian Deputy Minister of Foreign Affairs Ali Essassi in Toronto on Dec. 18 local time and conveyed the position of South Korean industry on the measures.
Canada plans to lower the TRQ utilization rate for free trade agreement partners including South Korea from 100% to 75% and for non-FTA countries from 50% to 20%, the ministry said. Imports exceeding the quota would face a 50% tariff and a new 25% tariff would be applied to certain steel derivative products, according to the ministry.
