South Korea – EU Will “Take Strong Measures against the U.S. Ban on Imports of Steel to U.S.“

South Korea, EU, and Japan accused the U.S. International Trade Commission (ITC)`s recommendation which calls for the ban on import of steel to the U.S. (reported in Sunday Dong-a Ilbo).

Each government issued a critical statement regarding this decision, and urged the U.S. President George W. Bush to reject the ITC recommendation.

The Ministry of Commerce, Industry and Energy (MCIE) expressed regret over the ITC recommendation in a statement issued under the name of Minister Jang Jae-Sik on Sunday, saying "the ITC recommendation would be a de facto ban of foreign steel import by imposing high tariffs on steel imports. It will lead to trigger protectionism and aggravate the long term stagnation in the steel industries worldwide."

Minister Jang said, "The recommendation is a measure that seeks to shift the problems of the U.S. steel industry to foreign steel exporters. We will take stern action against any measure that does not correspond to the WTO regulation by cooperating with the major steel export countries, such as EU."

Through multi-consultations, such as OECD high ranking officials` meetings on steel, which are to be held in 17th and 18th, the MCIE and the Ministry of Foreign Affairs and Trade decided to urge the U.S. government not to exercise safeguard.

However, anticipating that the U.S. administration is highly likely to accept the ITC recommendation and to issue the safeguard in the end, the South Korean government plans to take measures which would minimize the adverse effect on the exports of steel to the U.S.

EU executive committee criticized in the statement issud on Sunday, saying "if the U.S. government imposes maximum 40 percent of tariffs on the imports of steel following the ITC recommendation, it indicates that the U.S. will close the door of the steel market."

Japan`s Kyoto Press reported that Japan`s Minister of Economy and Industry Hiranuma Takeo urged the U.S. President Bush not to accept the ITC recommendation, expressing strong regret over the ITC decision.

Prior to this, the U.S. ITC decided to issue a recommendation urging to impose the maximum 40 percent of tariffs on the foreign imported steel to protect the domestic steel businesses on 7th, and to submit the recommendation to President Bush on 19th.

President Bush plans to make the final decision of the U.S. administration next February 17th through the discussion with each related country based on the ITC recommendation.

Sin Yeon-Su ysshin@donga.com