WTO dispute panel upholds Turkey's unfair tariffs claims

Posted on 21 December 2018

Source: Kallanish

An appeal by Turkey initiated early in 2017 disputing countervailing duties (CVD) imposed by the United States on Turkish imports of certain pipes, has been upheld by the World Trade Organization's (WTO) dispute panel.

The dispute concerned duties applied by the US department of Commerce on Turkey's imports of several types of tube and pipe, Kallanish notes. These comprised oil country tubular goods (OCTG), welded pipe line (WLP), heavy walled rectangular welded carbon steel pipes and tubes (HWRP) and circular welded carbon steel pipe and tubes (CWP).

The investigation into Turkey's imports of certain pipe, which was launched in 2013, has concluded that no dumping took place, but a subsidy claim was used to impose CVD measures. The investigation has determined that the state subsidy must have taken place as some of the material was procured from the state-owned steelmaker Erdemir via OYAK, the Turkish Armed Forces' pension fund. OYAK is a shareholder in Erdemir. 

Turkey has claimed in its appeal that the imposition of CVD was a result of unfair practices by the US trade authorities. The claim that has been upheld by WTO dispute panel, which it published on 18 December. As a result, the panel recommended that "… the United States brings its measures into conformity with its obligations under the SCM agreement." 

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