In a significant move, the U.S. Department of Commerce announced the rescission of its administrative review of the countervailing duty order on Turkish rebar for the period from January 1, 2023, to December 31, 2023. This review was originally initiated on August 14, 2024, in response to concerns related to the importation of rebar from Turkey, specifically with respect to the Turkish steel producer, Habas. The review sought to evaluate whether subsidies were still being provided to Habas and whether any of their products had entered the U.S. market during the specified review period.
However, after conducting its analysis, the DOC concluded that there were no entries of the subject merchandise, rebar from Turkey, during the review period. This conclusion led to the rescission of the review, meaning that no further action would be taken concerning the countervailing duty order for that period. The decision essentially ends the administrative process for the review, leaving the countervailing duties on Turkish rebar unchanged.
The countervailing duty order on rebar from Turkey was originally imposed to address concerns over the unfair subsidization of Turkish steel producers, which allegedly resulted in rebar being sold in the U.S. at unfairly low prices. The CVD order was aimed at leveling the playing field for U.S. producers by imposing duties on rebar imports that benefited from such subsidies. The administrative review process is a routine procedure in U.S. trade law, designed to ensure that the duties are being properly applied and that the market conditions for such goods remain consistent with the original trade rulings.
For this specific review, the DOC focused on Habas, one of Turkey's major steel producers. The company had been subject to the investigation due to its significant exports of rebar to the U.S. market. The review would have examined whether Habas continued to benefit from any subsidies during the review period, which could have affected the price of the rebar sold in the U.S. market. However, the DOC found that no shipments of rebar from Habas, or any other Turkish producers, were made to the U.S. during the period under review.
This outcome means that the U.S. will not adjust the countervailing duties imposed on Turkish rebar for the 2023 review period. The decision reflects the reality that trade dynamics between Turkey and the U.S. for this specific product may have been impacted by factors such as changes in market demand, competition from other suppliers, or shifts in trade patterns. Without any shipments of rebar from Turkey during the review period, the DOC was unable to justify any modifications to the duties that had previously been imposed.
The rescission of this review does not necessarily signal the end of the trade dispute over Turkish rebar imports. The U.S. continues to impose countervailing duties on Turkish rebar, and future administrative reviews could still take place if shipments resume or if new concerns arise regarding subsidies or unfair trade practices. The U.S. steel industry, particularly domestic rebar manufacturers, remains vigilant about ensuring fair competition and will continue to monitor the situation closely.
