On October 9, 2024, the U.S. Department of Commerce published preliminary findings regarding the countervailing duty administrative review of oil country tubular goods imported from the Republic of Türkiye. This review covers the period from January 1, 2022, to December 31, 2022, and has significant implications for both domestic and international manufacturers in the steel industry. The findings indicate that certain Turkish producers benefited from subsidies that may distort fair competition in the U.S. market.
The Department's review was initiated following a request for an administrative review of the CVD order first established on July 18, 2014. This review process was formally announced in the Federal Register on November 15, 2023. Borusan Mannesmann Boru Sanayi ve Ticaret A.S. and Cayirova Boru Sanayi ve Ticaret A.S. were selected as mandatory respondents for individual examination, representing two of the key players in the Turkish OCTG market.
Preliminary results showed that Borusan received a net countervailable subsidy rate of 1.01%, while Cayirova’s subsidy rate was calculated at 1.55%. These rates indicate the percentage of the subsidy relative to the value of the goods sold, which can affect pricing strategies and market competitiveness for these firms. The implications of these findings could lead to the imposition of duties designed to counteract the financial advantages provided by these subsidies, impacting their sales in the U.S. market.
Additionally, the Department decided to partially rescind the administrative review concerning ten companies that had no entries of subject merchandise during the review period. This decision is grounded in regulatory provisions that allow rescission when there are no reviewable entries to liquidate. This move streamlines the review process and focuses resources on companies that are actively participating in the U.S. market.
Commerce used a detailed methodology to determine the subsidy rates, which involved assessing the financial contributions made by the Turkish government to these companies. This evaluation follows the guidelines established in the Tariff Act of 1930, which aims to ensure fair trade practices. The Department’s thorough analysis is crucial for maintaining competitive integrity within the U.S. market, particularly in the context of ongoing trade disputes.
The findings are now open for public comment, inviting stakeholders, including domestic producers and foreign exporters, to express their views. This engagement is important as it ensures transparency and allows for a more comprehensive understanding of the market dynamics at play. Stakeholders may also provide evidence or arguments that could influence the final determination, which will be made after considering all input.
