The European Commission is likely to continue with the current tariffs of 25pc on imported steel products from South Korea once the quota limit is exceeded.
According to media reports, the European Commission is considering extending ots safeguard measures against South Korean steel products for another three years.
The commission believes that considering the negative impact of the pandemic on both countries, these safeguard measures must be maintained to maintain economic balance.
The World Trade Organization (WTO) has received requests from the EU unions to continue charging 25pc duty on imported steel products above its quotas, which was introduced in July 2018. The tariff had been originally planned to end this month.
South Korean Ministry of Trade, Industry and Energy is also working on what should be the volume of quota if revised. South Korea exports steel products to the EU worth at $2.39bn in 2020, down 19.7pc from $2.9bn recorded in 2017.
EU-US trade summit
The protectionism policies rolled out by the United States resulted in steel exporters looking to the European market as an alternative till now, prompting EU commission to impose safeguard measures. On June 15, US President Joe Biden attempted to rebuild the transatlantic ties.
The EU lifted its tariffs on US steel and aluminium for six months in the hope that the Biden will do the same for Europe. The trade dispute is expected to be resolved before the end of 2021.