WTO supports Turkey's claims for unfair tariffs

An appeal by Turkey, initiated in early 2017, challenging countervailing duties (CODs) imposed by the United States on imports of certain pipes from Turkey, was upheld by the World Trade Organization (WTO) Dispute Settlement Commission.

The dispute concerned duties imposed by the US Department of Commerce on Turkish imports of several types of pipes and tubes. These included oil production pipes (OCTG), welded piping (WLP), heavy-walled rectangular welded carbon steel pipes and tubes (HWRP), and round welded carbon steel pipes and tubes (CWP).

An investigation into Turkish imports of some pipes, which began last year, concluded that there was no dumping, but a subsidy requirement was used to implement measures to combat cardiovascular disease. The investigation found that a government subsidy should have taken place as some of the materials were purchased from the state-owned Erdemir steel company through OYAK, the Turkish Armed Forces' pension fund. OYAK is a shareholder in Erdemir.

Turkey argued in its appeal that the imposition of duties was the result of unfair practice by the US trade authorities. The claim was upheld by the WTO Dispute Resolution Panel, which it published on December 18. As a result, the commission recommended: "... the United States is bringing its measures in line with its obligations under the agreement."