WTO backs Korea’s dumping duties on Japan

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WTO backs Korea’s dumping duties on Japan

The World Trade Organization (WTO) ruled in favor of Korea in a dispute with Japan over antidumping duties.

Korea’s Ministry of Trade, Industry and Energy said Friday that a WTO panel distributed a decision in a case involving antidumping duties by Korea on Japanese pneumatic valves, which is used in automobiles to control air pressure to create mechanical motion.

Out of 13 claims by Japan, the panel ruled in favor of Korea in 10, either dismissing them or declaring Japan failed to demonstrate that Korea acted inconsistently with the rules of global trade.

The Ministry of Strategy & Finance imposed antidumping duties of 11.66 percent to 22.77 percent on pneumatic valve imports from Japan in August 2015.

On March 2016, the Japanese government filed a petition to the WTO on the duties and three months later they asked for a WTO panel to investigate.

Japan asked the WTO Panel to find the “measures inconsistent with Korea’s obligations” under certain provisions of the Antidumping Agreement, officially known as the “Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994.”

According to the Korean Trade Ministry, the focus of the panel’s investigation was whether Korean authorities used a valid method to prove injury to domestic industry caused by the imports from Japan.

The WTO decided to dismiss seven claims because Japan failed “to provide a brief summary of the legal basis of the complaint which is sufficient to present the problem clearly.”

Among six claims found to be within its terms of reference, the panel decided three claims in favor of Korea and the remainder in favor of Japan.

Both Korea and Japan have 60 days to make an appeal after the panel’s report was distributed on April 12.

BY CHOI HYUNG-JO [choi.hyungjo@joongang.co.kr]
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