The ruling comes nearly three years after the Korean government filed a complaint against the US arguing that its profit data calculations for dumping rate margins, which led to the US levying tariffs on oil country tubular goods imports by Korean companies, were incorrect.
The US Department of Commerce ordered 9.9 percent to 15.8 percent of tariffs on OCTG imported from Korean steelmakers, such as Hyundai Steel, Nexteel and SeAH Steel, starting from July 2014, and raised the dumping rate to 29.8 percent in an annual review in April 2017. Korea filed its dispute with the WTO in December 2014.
Each nation is permitted to appeal the ruling within the next 60 days before the panel decision becomes finalized.
“Should the panel ruling be confirmed and the US is in compliance, the anti-dumping duties on Korean OCTG will be lifted,” said the statement by the Trade Ministry, adding that the removal of the tariff barriers will help boost the business environment for Korean companies in the US.
OCTG are high strength steel pipes used for crude oil and natural gas extraction. Roughly 98 percent of Korean steel pipes are exported to the United States, according to government data.
However, the Trade Ministry added the WTO did not accept Korea’s assertions on several issues regarding the US Department of Commerce’s anti-dumping investigation process, such as affiliate transactions and third-country export price infringement.
The ministry said in its statement that it will decide whether to appeal these matters through judicial review following consultations with industry officials and experts.
By Julie Jackson (email@example.com)