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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] The U.S. Court of International Trade (CIT) has ruled in favor of Korea in a lawsuit challenging a U.S. Department of Commerce decision that imposed countervailing duties on Korean steel imports, citing alleged preferential electricity rates.
According to the Ministry of Trade, Industry and Energy (MOTIE) on August 13, the CIT sided with Korea in the case filed by POSCO, with the Korean government participating as a third party. The case contested the Department of Commerce’s December 2023 decision to impose a 0.87% countervailing duty on POSCO.
The Commerce Department had argued that steel (including carbon alloy and plate products), semiconductors, and petrochemicals—three industries it grouped together—consumed disproportionately high amounts of low-cost industrial electricity, creating “specificity” and effectively constituting a subsidy.
POSCO and the Korean government countered that the grouping lacked consistent and reasonable criteria and that there was insufficient evidence to support claims of disproportionate consumption. The CIT accepted Korea’s arguments and referenced a similar 2023 ruling in favor of Hyundai Steel against the Commerce Department.
If the Commerce Department wishes to contest the decision, it has 60 days to submit revised findings to the CIT. MOTIE stated it will continue to mount a full-scale defense in any additional proceedings related to the case.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
