EU to impose 25% duty on exceeding quotas on steel imports from February

The European Commission informed the World Trade Organization (WTO) of its decision to impose a 25 percent duty on steel imports into the European Union above a certain level from February 2.

In a WTO notice, the EU said that imports of steel below 105 percent of the volumes recorded in the period 2015-2017 will be exempted from tariffs until 2021. But steel imports in excess of 105 percent will be subject to a 25 percent duty, the statement said. South Korean steelmakers reacted sharply to this decision.

South Korean steel producers such as POSCO will be granted additional quotas on top of their average export volumes to the EU for the 2019-2021 period,

Additional quotas on Korean steel imports will rise to 105 percent from February 2 to June 30, 2019, to 110 percent from July 1, 2019 to June 30, 2020, and to 116 percent from July 1, 2020 and June 30, 2021, the statement said. ...

According to the expanded quota of tariff rates for South Korea), Korean steel producers will be able to continue their exports to the EU without any problems (at current export levels). But if their exports to the EU increase, they could face a whopping 25 percent tariff.

The EU is the fourth largest importer of South Korean metal products. The statement said that Korean steelmakers exported $ 2.9 billion worth of products in 2017.

In March 2018, the EU assessed EU steel imports following restrictions by the United States. In July, he adopted temporary measures in the form of a "tariff quota" that imposes a 25 percent duty on imports that exceed a certain level.