Trade Cases
WTO Sides with Korea on OCTG Duties
Written by Sandy Williams
November 15, 2017
A dispute over OCTG dumping duties assigned by the U.S. on imports of Korean OCTG drew mixed conclusions from a World Trade Organization dispute panel.
The WTO sided with South Korea on claims that the U.S. violated rules in the Antidumping Agreement regarding the calculation of fair value of OCTG. The panel determined that Commerce did not use data pertaining to sales of a like product from the home market of Korea to determine the value of the product. Commerce excluded line pipe and standard pipe, which Korea claimed is the same like-category as OCTG, and instead made its comparison to profit data from a multinational corporation outside of Korea.
The WTO, however, rejected Korea’s arguments regarding Commerce’s viability test and other procedural and methodology issues.
The WTO recommended that “the United States bring its measures into conformity with its obligations under the Antidumping Agreement.” Both parties have 60 days to appeal the decision.
Korean steel producers are continuing to pursue a suit with the U.S. Court of International Trade after Commerce exercised its authority in April 2017 to address market distortions by employing Section 504 of the Trade Preference Extension Act of 2015. Section 504 allows Commerce to disregard foreign cost of production in calculating antidumping duties if it determines that a “particular market situation” exists that does not reflect the cost of production in ordinary trade. Commerce included electricity subsidies in its evaluation of price distortion.
Duties were raised to a range of 2.76 to 24.92 percent from previously assigned duties of 4.0 to 6.5 percent. Final duties were assigned as follows: 24.92 percent on OCTG imports from Nexteel, 2.76 percent on SeAH Steel, and 13.84 percent on Hyundai Steel and other South Korean steelmakers.
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Commerce says welded line pipe duties should continue
The US Department of Commerce has determined that anti-dumping and countervailing duties (AD/CVDs) on welded line pipe imports from China and Japan should remain in place for five more years.
Leibowitz: Thoughts for the holidays
At holiday time, it’s customary to think about what’s happened during the year gone by and what to hope for (or brace for) in the next.
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Commerce increases import duties on Korean galv, plate
The Commerce Department is raising the import duties on imports of corrosion-resistant sheet and cut-to-length plate from Korea.
Leibowitz on trade: Why is protectionism so popular?
The world has had a few shocks recently. The CEO of a major health insurance company was gunned down in Manhattan. The 50-year Assad dynasty in Syria was pushed out less than two weeks after rebels started an offensive. And President-elect Trump is promising tariffs on everything a month before he takes office. But one shock has been taking place for a lot longer than the last few weeks. The 70-year consensus on trade hasn’t just been challenged. It’s been repudiated.