Senators want Biden to lower South Korean import quota for piping products

By David Shepardson

WASHINGTON (Reuters) -Three Democratic U.S. senators urged the Biden administration on Friday to reduce the import quota on oil and gas drilling pipes from South Korea, saying it has affected companies with operations in Ohio and Pennsylvania.

The senators, Sherrod Brown of Ohio and Bob Casey and John Fetterman of Pennsylvania, said the market for products known as oil country tubular goods, used for drilling, extraction and transport of oil and natural gas, has declined and resulted in layoffs by companies with U.S. operations.

The reduced demand and quota has affected Tenaris, which has operations in Ohio and Pennsylvania, and Vallourec, which has operations in Ohio, the senators said.

Tenaris USA President Luca Zanotti said the company fully supports "the call to reduce this quota, as it is essential to protect American jobs, ensure a fair competitive landscape for our domestic OCTG industry, and secure our nation’s energy security."

The American Iron and Steel Institute said lowering the quota will "reflect current lower demand for the product. Domestic production of steel pipe and tube products remains vital to meeting America’s national and economic-security needs."

In 2018, the United States imposed tariffs on some steel and aluminum imports, including OCTG, covering most U.S. trading partners, but granted exemptions for some allies including South Korea, which includes an annual quota for South Korean OCTG imports.

"We urge the administration to take action to ensure that the industry does not continue to suffer additional job losses because of this outdated quota,” the senators wrote to U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo.

USTR and the South Korean embassy in Washington did not immediately respond to requests for comment. Commerce said it would respond to the senators.

The senators said OCTG companies with U.S. operations have seen more than 220 layoffs or reductions in workforce at plants in Ohio, Pennsylvania, Oklahoma, and Texas.

(Reporting by David Shepardson, Editing by William Maclean and Rod Nickel)