By Sarah Johnson
A group of three Democratic U.S. senators has called on the Biden administration to reduce the import quota on oil and gas drilling pipes from South Korea. They argue that the current quota is negatively impacting companies with operations in Ohio and Pennsylvania.
Sherrod Brown of Ohio, Bob Casey, and John Fetterman of Pennsylvania expressed concerns that the market for oil country tubular goods (OCTG) has declined, leading to layoffs in companies with U.S. operations. Companies like Tenaris and Vallourec, which have operations in Ohio and Pennsylvania, have been particularly affected.
Luca Zanotti, President of Tenaris USA, fully supports the call to reduce the import quota, emphasizing the importance of protecting American jobs and ensuring a fair competitive landscape for the domestic OCTG industry.
The American Iron and Steel Institute also advocates for lowering the quota to align with the current demand for OCTG products. They stress the significance of domestic production in meeting America’s national and economic-security needs.
In 2018, the U.S. imposed tariffs on steel and aluminum imports, including OCTG, but exempted allies like South Korea. However, the senators urge the administration to take action to prevent further job losses in the industry due to the outdated import quota.
The U.S. Trade Representative and the South Korean embassy in Washington have not yet responded to the senators’ request for comment. The Department of Commerce has assured that they will address the senators’ concerns.
The senators highlight that OCTG companies with U.S. operations have witnessed over 220 layoffs or reductions in workforce across states like Ohio, Pennsylvania, Oklahoma, and Texas.