WTO to Probe S. Korea Computer Chip Dispute With U.S. 4/25/00 10:39:00 AM
Source: Bloomberg News
Geneva, April 25 (Bloomberg) -- The World Trade Organization said it will investigate a complaint that the U.S. failed to comply with an earlier ruling ordering it to remove duties on Korean computer chips.
The WTO ruled in December 1998 that anti-dumping duties the U.S. imposed on dynamic random-access memory, or DRAM, chips made by Hyundai Electronics Industries Co. and LG Semicon Co. break international trade rules. The penalties, which apply to the most common chips found in personal computers and other electronic devices, were first levied in 1993 to retaliate against what the U.S. called unfairly priced imports.
''Korea firmly believes that the U.S. has not taken measures to comply with the rulings of the dispute settlement body,'' said Man Soon Chang, Korea's ambassador to the WTO, adding that the arbitration panel should ''suggest how the U.S. might implement its rulings.''
At the center of the dispute are U.S. Commerce Department procedures for reviewing anti-dumping orders. That process, which the WTO judged unfair, requires foreign companies to prove they aren't likely to dump or sell their products in the U.S. below cost in the future.
''The U.S. continued to apply the anti-dumping order on DRAMs from Korea,'' Korea's complaint said. ''The amended regulation does not impose on the U.S. the burden to establish that continued imposition of the duty is illegal.''
The dispute marked the first time a WTO member had asked for a panel to probe an alleged failure by the U.S. to comply with a WTO decision.
The U.S. said it's ''confident'' that the panel will rule in its favor. If the panel upholds the complaint, Korea can seek sanctions against the U.S. or compensation.
LG Semicon was acquired by Hyundai, part of South Korea's largest conglomerate, for $2.2 billion last year.
Earlier this month, the Geneva-based trade body rejected a U.S. complaint that Korea illegally blocked foreign competition in awarding government contracts for a $5.5 billion airport project near Seoul. |
