South Korea has asked Turkey to provide compensation for the European nation's provisional safeguard measures on polyethylene terephthalate (PET) imports, Seoul's trade ministry said Saturday.
The Ministry of Trade, Industry and Energy said that it met with its Turkish counterpart in Ankara, Turkey, on Thursday and discussed compensation plans regarding the bilateral safeguard measures on PET products.
Bilateral safeguard measures linked to a free trade agreement (FTA) between the two sides allow temporary suspension of tariff preferences or imposing most-favored nation (MFN) applied tariff line when an increase in imports of any product is causing damages to domestic industry.
|This composite image shows the national flags of South Korea (L) and Turkey. (Yonhap)hide caption|
Turkey started its safeguard investigation in February and decided to impose safeguards as high as 6.5 percent on South Korean PET imports.
The FTA between South Korea and Turkey mandates that if one country initiates safeguards, it must provide an opportunity to discuss compensation measures regarding losses triggered by additional tariff burden.
The ministry said it discussed compensation scale and method, and even exchanged ideas of withdrawing the safeguards, considering that such trade restraint can have a negative influence on the relationship between the two countries.
The ministry said it will review plans of to impose retaliatory tariffs on imported goods from Turkey if it doesn't come up with appropriate compensation measures. (Yonhap)
Park Ye-seon email@example.com