U.S. High Tariff on Steel to be Take to WTO

Korea and U.S. held a conference on U.S.`s safeguard measure on steel import at the United States Trade Representative (USTR) in Washington D.C on the 15th, but wound it up in a day confirming different viewpoints of each other.

Korean representatives reiterated that imposing 30 percent tariff on imported steel is not in conformity with WTO rules, and claimed for the withdrawal of tariff some items, which were not accepted.

U.S. repeatedly insisted that the safeguard measure on steel corresponds to WTO agreements. And it said that it would inform whether the measure changed or not by 14th after completing negotiations by 4th next month.

Ministry of Foreign Affairs and Trade (MOFAT), however, thinks it difficult that the our claims would exert influence on U.S.`s altering the measure, and is likely to introduce measures like taking the dispute to WTO cooperating with EU and Japan as soon as possible.

Along with that, it is preparing counter measures as lots of countries may take measures on the 20th, when U.S.` tariff on imported steel become effective.

Some judge that world steel market might fall into confusion if EU along with U.S. limit steel import worrying about inrush of cheap steel, and Russia and China take counter measures against the limitation.

Due to the U.S. safeguard measure, Korean companies must compete with Japanese and Russian companies, as Russia, whose steel export to U.S. is likely to decrease by 63 percent (yearly 2.1 to 2.7 million ton), is targeting southeastern Asia for substitute market.

There are protests getting tough against U.S.` safeguard measure on steel import that EU and Russia are iterating counter measures, and China and Japan are likely to take the dispute to WTO. U.S. Secretary of Treasury Paul O’Neill said, “U.S.` imposing tariff threatened the interest of U.S. as a leader promoting liberal trade. ”

Ja-Ryong Koo bonhong@donga.com · Ki-Heung Han eligius@donga.com