Steel Plates Subsidy Storm: POSCO's Predicament

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CTLImage Source: Danieli

Synopsis:

The U.S. Commerce Department found that POSCO, a producer and exporter of certain carbon and alloy steel cut-to-length plate from Korea, received countervailable subsidies during the review from January 1, 2021, to December 31, 2021, pegged at 80.87% ad valorem.

Article:

The U.S. Commerce Department's recent investigation into certain carbon and alloy steel cut-to-length plate production and exportation by POSCO from Korea uncovered the provision of countervailable subsidies during the specified review period of January 1, 2021, to December 31, 2021. The assessment revealed a substantial subsidy rate of 80.87% ad valorem, marking a significant finding in the ongoing scrutiny of trade practices.

This investigation, conducted under the stipulations of the Tariff Act of 1930, delved into the spectrum of subsidies provided to POSCO during the outlined timeframe. The findings underscore the alleged economic advantages and support conferred on the company, potentially distorting fair market competition.

The scope of the inquiry specifically focused on certain carbon and alloy steel cut-to-length plate, elucidating the finer details of the products falling within this domain. The precise delineation of the merchandise under scrutiny was outlined comprehensively in the Issues and Decision Memorandum.

Conclusion:

POSCO's engagement in the production and exportation of certain carbon and alloy steel cut-to-length plate from Korea has come under the U.S. Commerce Department's radar due to countervailable subsidies identified during the review period. The substantial subsidy rate of 80.87% ad valorem highlights a pivotal revelation, impacting fair trade considerations.

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