Head of Trade Makes Consecutive Visits to EU and Mexico…Addressing Pending Issues like Steel and Tariffs

Head of Trade Makes Consecutive Visits to EU and Mexico…Addressing Pending Issues like Steel and Tariffs

Delivering concerns regarding steel import regulations during a meeting with the EU Trade Commissioner

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

The government has embarked on 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, Head of Trade Negotiations Yeo Han-koo met with Maroš Šefčovič, European Union (EU) Commissioner for Trade and Economic Security, in Brussels, Belgium, on the 11th, and conveyed concerns from Korean industries regarding the EU's steel import restriction measures.

Head Yeo requested the EU's cautious approach and cooperation to ensure that Korean steel products are not unreasonably restricted by 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 concern that this measure would not only affect the steel industry but also harm the supply chain stability of Korean-invested companies producing finished products such as automobiles and home appliances locally.

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

Concrete achievements were also confirmed during this visit.

As the EU Commission finally decided to include the battery industry in the list of 'energy-intensive industries' eligible for support, it is expected to alleviate electricity bill burdens and reduce manufacturing costs for Korean battery companies operating in countries like Poland.

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

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

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

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

To this end, both countries agreed to establish a ministerial-level strategic dialogue and a working-level Working Group.

Furthermore, Head Yeo met consecutively with key figures from the Mexican Congress and business community, asserting that Korea is Mexico's optimal strategic partner and urging support for FTA promotion.

Head Yeo stated, "Under an uncertain trade environment, the government is actively pursuing a diversification policy and will actively support Korean companies through expanded tariff reduction incentives and FTA promotion with Mexico, the largest trading partner in Latin America."