WTO Rules In Favor Of Seoul In Tariff Dispute With Washington

The World Trade Organization has ruled in favor of South Korea in Seoul's dispute with the United States over high tariffs imposed on local steel and power transformer products.

In February 2018, South Korea filed a lawsuit with the WTO concerning some anti-dumping and countervailing duties imposed by Washington on South Korean steel and power transformer products, claiming US measures are inconsistent with certain provisions of the Anti-Dumping as well as Subsidies and Countervailing Measures (SCM) agreements. To settle the issue, the organization set up a panel, chaired by economist Marta Calmon Lemme. Several third parties, including the European Union and Russia, expressed their interest in participating in the panel.

"Pursuant to Article19.1 of the DSU [the Dispute Settlement Understanding agreement], having found that the United States has acted inconsistently with the Anti-Dumping and the SCM Agreements, we recommend that the United States bring the measures at issue into conformity with these Agreements," the panel concluded in its report.

According to the WTO requirements, to impose countervailing measures, a country must first determine the existence of subsidized imports, economic damage to a domestic industry, as well as a causal link between the two.

Source: Urdupoint