EU Announces Gradual Reintroduction of
Minimum Prices on Computer Chips
Source: PR Newswire
WASHINGTON, March 10 /PRNewswire/ via Individual Inc. -- The European Commission
announced today that it will gradually reintroduce minimum prices for D-RAMs (dynamic
random access memory chips) originating in Japan and Korea and sold in the European
Union. The move follows a dramatic drop in prices to below production cost, causing injury
to EU producers.
Today's decision marks the end of a 21-month suspension of the minimum prices which were
first introduced in January 1990 because of dumping by Japanese and later by Korean
exporters. The suspension occurred in June 1995 due to a rise in D-RAM prices.
Following consultations with European business, the European Commission has decided to
reintroduce the measures gradually to avoid disruption on the EU market. This flexible
approach will apply from March 10 to June 30, by which time the results of an overall review
of the anti-dumping measures are expected. If measures continue after the review, new
minimum prices would apply from July 1, 1997.
Today's decision has been communicated to Japanese and Korean exporters in the form of a
memorandum of understanding. Japanese and Korean companies are not obliged to raise
their prices during March.
Background:
In January 1990, the EU Council of Ministers imposed anti-dumping duties of 60 percent on
D-RAMs from Japan. In parallel, the Commission offered the Japanese companies the option
of respecting certain minimum prices and subsequently accepted price undertakings from 12
companies. In March 1993, the Council imposed duties of 24.7 percent on Korean D-RAM
producers as well, and accepted price undertakings from 3 companies.
In June 1995, the Commission suspended the measures because of the high level of prices on
the EU market, and the following month opened a review investigation. The suspension was
prolonged until today in March 1996. SOURCE European Commission Delegation
/CONTACT: Ella Krucoff, 202-862-9540, or Maeve O'Beirne, 202-862-9549, both of the
European Commission Delegation/ CO: European Commission Delegation ST: District of
Columbia IN: SU: JN -- DCM039 -- 3326 03/10/97 14:40 EST prnewswire.com
[03-10-97 at 12:00 EST, PR Newswire] |
