Canada exempts South Korean steel products from safeguard measures. According to the Ministry of Trade, Industry and Energy((MOTIE), the Korean products were excluded from the results of the investigation into steel safeguard industry damage and recommendations for final action announced by Canada's International Trade Tribunal (CITT). CITT excluded five of the seven items in energy steel pipes, hot-rolled and color steel plates, that were subject to temporary measures that were imposed in October last year from the final measure because they did not meet the requirements for invoking the safety guard.
Two items of stainless steel wires and backboards that were deemed to be seriously damaging to the industry recommended that the final measures be implemented, but the Korea-Canada free trade agreement does not lead to the main cause of damage to the domestic industry, so it is recommended that Korea be excluded from the final measures. Article 7.1 of the Korea-Canada FTA stipulates that products from other countries can be excluded from safeguard measures if imports from other countries are not a real cause of serious damage or threats.
Based on the recommendations, the Canadian government plans to finalize the plan before the end of the provisional measure on May 12 after consulting with relevant countries. If the final decision is made, the provisional measure will be imposed on Korean products.
Canada has previously imposed 25 percent tariffs on seven Korean steel products since Oct 25 last year on goods exceeding 100 percent of the average import volume in the past three years(2015 - 2017).
Korea exported a total of 620,000 tons and $580 million worth of steel to Canada last year, with exports of seven items subject to the safeguard amounting to 255,000 tons and $230 million. Exports to Canada accounted for about 2 percent of all steel exports.