South Korea is reportedly considering taking action against the recent decision by the USA to impose antidumping duties on imports of oil country tubular goods (OCTG) from India, Korea, Taiwan, Turkey, Ukraine and Vietnam. However, analysts tell Kallanish the country’s response is far from certain because of other ongoing trade issues.

Of the listed countries, South Korea is by far the largest player, exporting 894,300 tonnes of OCTG worth $812 million to the USA on 2013 according to the US Department of Commerce.

The final determination of Korean duties of 9.89-15.75% caused some consternation in the country as the preliminary findings had set dumping margins at 0% for all Korea producers. The USA changed the method of calculation between the preliminary and final rulings.

Analysts say the government is consulting with local steel mills before deciding what action to take.

An official from Hyundai Hysco recently told the Wall Street Journal that the company hopes Korea will take the issue to the World Trade Association.

Analysts note that South Korea is hoping to renegotiate its rice import quota. The country is forced to import a certain volume of rice every year, 409,000 t in 2014, because it has not yet opened the domestic rice market to free trade under WTO rules.

The opening of the market to imports from January 1 will stop the import quota from rising further and allow the country to impose tariffs of 300-500% on imports, it hopes. Protecting local rice farmers is a major political issue in the country.

The WTO will have to decide this fits with its guidelines.

Ukraine was also being investigated but on July 10 Ukraine and the USA signed an agreement to suspend the investigation into dumping. Following requests from US companies the investigation was completed but no duties will be collected as long as the agreement remains in effect, according to the Department of Commerce.