By David Shepardson
WASHINGTON (Reuters) – Three Democratic U.S. senators on Friday urged the Biden administration to reduce import quotas on oil and gas drill pipes from South Korea, saying it has hit 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 oilland tubing products, which are used to drill, extract and transport oil, has declined and led to layoffs by companies with American activities. .
The reduced demand and quotas have 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 because it is essential to protect American jobs, ensure a fair competitive landscape for our domestic OCTG industry, and secure our nation’s energy security to establish.”
The American Iron and Steel Institute said the quota reduction “will reflect current lower demand for the product. Domestic production of steel tubes and pipes remains critical to meeting America’s national and economic security needs .”
In 2018, the United States imposed tariffs on certain steel and aluminum imports, including OCTG, which applied to most U.S. trading partners, but granted waivers to some allies, including South Korea, which includes an annual quota for the South -Korean OCTG import.
“We urge the administration to take action to ensure that the industry does not continue to suffer additional job losses as a result of these outdated quotas,” the senators wrote to U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo.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 workforce reductions at plants in Ohio, Pennsylvania, Oklahoma and Texas.
