Eurasian union finalizes safeguard measures on South Korean steel imports
Russia and four other Eurasian nations have decided to impose a 20 percent tariff on South Korean hot-rolled steel products in excess of a yearly no-tariff quota of about 1.33 million tons starting December, South Korea’s trade ministry said.
The Eurasian Economic Union (EAEU), consisting of Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, has also decided to exclude South Korean coated and cold-rolled steel imports from its new safeguard measures, according to Seoul’s Ministry of Trade, Industry and Energy.
The bloc began a safeguard investigation in August last year amid concerns over an influx of steel products into the region after the United States and the European Union raised tariffs on steel imports.
“As coated and cold-rolled coil have been excluded from the EAEU’s safeguard measure, steelmakers won’t have difficulty in exporting their automotive steel products to Russia,” a ministry official said.
The exclusion of cold-rolled coil allows a stable supply of automotive steel crucial to the manufacture of vehicles at Hyundai Motor Co.’s plant in Russia.
The official didn’t expect any big impact on the country’s exports as local steelmakers can export hot-rolled coil products without tariffs unless the amount exceeds the annual quota of 1,327,758 tons — the annual average of 2015-2017 imports.