The Turkish Steel Exporters Association released the following news release Tuesday regarding the US Department of Commerce's proposed countervailing duties on imports of steel pipe used in oil and gas pipelines from Turkish steel exporters:
Last week, the US Department of Commerce (DOC) proposed putting countervailing duties (CVD) on imports of steel pipe used in oil and gas pipelines from Turkish steel exporters. The Turkish Steel Exporters Association (CIB) requests that the Department of Commerce consider all of the facts and asks for international fair trade.
One key element in the DOC’s decision is the claim that Erdemir Group, one of Turkey’s most profitable steel companies, is a government controlled entity and has been providing steel coils at subsidized prices to Turkish pipe manufacturers based on suspect pricing data obtained from other countries. The Turkish Steel Exporter’s Association rebuffs this claim, as Erdemir was privatized 10 years ago. The Turkish government exercises no control or governmental functions in its business. However, because Erdemir has a major shareholder which is a military pension fund of Turkey, it has been designated a government entity and therefore cannot “trade fairly.”
In December 2014, the Canada Border Services Agency (CBSA) announced that it had terminated its countervailing duty investigation on oil country tubular goods (OCTG) pipes from Turkey. It found that Turkish integrated steelmaker Erdemir Group operates and functions according to commercial principles consistent with the behavior expected of a profit-driven steel company, responsible to its public shareholders.
“I applaud the Commission and Commissioners for the effort and thought they put into the cases,” said Matt Nolan, spokesperson for the Turkish Steel Exporters Association. “However, when does fair trade become a synonym for protectionism? Turkish steel producers pride themselves on their efficiency, quality, and ability to compete as world-class producers. They must adhere to ECSC rules barring subsidies, and they embrace trade as the key to their success. Additionally, they produce high quality products, and deliver these products all around the world at competitive prices with its advanced logistics infrastructure – shipping steel products to more than 180 countries, including the United States. We ask the Commission and the Commissioners to consider the facts and act in the best interest of fair trade – which will ultimately benefit the American public.”