South Korea's Ministry of Trade, Industry and Resources (MOTIR) has formally called on Canada to lift recent tariffs and quota cuts imposed on imported steel products. MOTIR said the measures are contrary to World Trade Organization (WTO) commitments and undermine bilateral trade.
Canada's sudden decision to impose a 25 percent tariff on certain steel derivatives and reduce tariff rate quotas (TRQs) has sparked a strong reaction, according to an official press release. MOTIR stressed that such restrictions distort fair trade and potentially discourage South Korean investment in Canada's manufacturing and infrastructure sectors.
In addition to a 25 percent tariff on some steel derivatives, Canada reduced quotas for countries without a free trade agreement from 50 percent to 20 percent of 2024 levels, and quotas for countries with free trade agreements, including South Korea. Korea, were cut from 100 percent to 75 percent of 2024 levels. The ministry was warned that the moves disproportionately affected South Korean exporters and "violated the spirit" of free trade agreements and WTO commitments. South Korean officials also noted the risks that such protectionist measures pose to global supply chains, especially in industries such as autos, batteries, construction and infrastructure where South Korean companies have significant investments in Canada. Park Jung-sung, Deputy Minister for MOTIR Affairs, expressed hope that the two countries will continue to develop a reliable and mutually beneficial industrial supply chain, given their long-standing role as leading advocates of the rules-based trading system
.
