Spokesman of the Saudi Export Development Authority (SEDA) Feras Abal-Khail said Monday the US imposition of anti-dumping and countervailing duties on Saudi steel pipes exports will weaken the competitive edge of the Saudi products on the US markets.
"The US move will result in a direct rise in the customs tariffs on the Saudi steel pipes exports to the US," Abal-Khail told reporters.
He affirmed that the Kingdom of Saudi Arabia works constantly to protect its interests whether on the bilateral level or the multi-lateral one through the World Trade Organization (WTO).
"Investigations are underway in the US to verify whether the new duties are in consistency with the US laws and the WTO regulations," he noted.
"The WTO regulations entitle a member state of the organization the right to adopt precautionary measures to protect their respective markets in case of suspicion about possible dumping or unfair subsidies from governments to the exports.
"SEDA, as representative of the Saudi Ministry of Trade and Industry, and the Saudi mission to the Geneva-based WTO are in contact with the US side to resolve this problem," he went on.
The spokesman was commenting on the decision of the US Department of Commerce last week to impose anti-dumping duties on imports of steel pipes and tubes, used in the oil and gas industry, from Saudi Arabia, South Korea, India, the Philippines, Taiwan, Thailand, Turkey and Vietnam.
The US regulates anti-dumping and countervailing duties in accordance with the Tariff Act of 1930. In accordance with this law, when the Secretary of Commerce determines that a product is being sold, or likely to be sold, at less than fair value, or is being subsidized, he is to advise the International Trade Commission.
The WTO probed 283 dumping cases last year with only five of which involving Saudi Arabia.