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[ferro-alloys.com]South Korea expects Canada to exempt its steel exports from tariffs on May 12 following a recommendation by the Canadian International Trade Tribunal, the Ministry of Trade, Industry and Energy said late Thursday.

On Wednesday, the tribunal recommended that Canada scale back import tariffs on steel imposed in the wake of the US Section 232 tariffs.

The provisional 25% tariffs were introduced in October 25, 2018, which affected seven imported steel products, namely heavy plate, rebar, energy tubular products, hot-rolled coil, pre-painted steel, stainless steel wire, and wire rod.

The tribunal suggested a tariff-rate quota on imports of heavy plate and stainless steel wire, excluding imports from countries in which it has another trade agreement in place, such as South Korea, Panama, Colombia, Honduras, the US, Israel, Chile, Mexico and countries benefiting from its General Preferential Tariff.

South Korea has a free trade agreement with Canada which states that products can be exempted from safeguard measures when there is an understanding that they pose no significant threat.

"The South Korean government actively responded to (Canada's move) and was able to achieve the satisfactory result by working closely with our companies," the ministry said.

Canada is expected to confirm final measures before May 12 when the current 25% tariffs end following talks with related countries based on the tribunal's recommendation.

In 2018, Canada imported 581,000 mt of steel from South Korea, accounting for about 6% of its overall steel imports of 10.4 million mt, a 53% increase year on year, data from the US International Trade Administration showed.

(S&P Global Platts)

• [Editor:王可]