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
Price on Trade: IEEPA tariffs head to the Supreme Court, DOJ ramps up trade enforcement
International trade law and policy remain a hot topic in Washington and beyond this week. We are paying special attention to the ongoing litigation of the president’s tariff policies and the administration’s efforts to heighten trade enforcement.
Mexico considers stiff tariffs for steel, autos, and other imports
Mexico is considering imposing steep tariffs on imports of steel, automobiles, and over 1,400 other products. Its target? Countries with which it does not have free trade agreements, mainly China, India, Thailand, and other South Asian nations.
Leibowitz: With ‘reciprocal’ tariffs struck down again in court, what happens next?
President Trump’s “reciprocal” tariffs under the International Emergency Economic Policy Act (IEEPA) were struck down again, this time on Aug. 29 by the Court of Appeals for the Federal Circuit (CAFC). The legal and policy mess continues, with the next stop being the US Supreme Court.
Market unfazed by US circuit court’s IEEPA decision
Repealing any reciprocal tariffs placed by President Donald Trump on US imports of direct reduced iron (DRI), iron ore, hot-briquetted iron (HBI), and pig iron would have only a nominal impact on the US steel market, market participants said.
ITC votes to keep HR duties after sunset review
The US government determined this week that hot-rolled steel imports from a handful of countries continue to threaten the domestic steel industry.