South Korea has effectively won its battle with Japan over its anti-dumping duties on Japanese pneumatic valves at the World Trade Organization (WTO).
According to the Ministry of Trade, Industry and Energy on Wednesday, the WTO’s appellate body said in a report released on Tuesday (local time) that there is no evidence proving Korea is in violation with WTO rules regarding its anti-dumping tariff imposition.
A pneumatic valve is a core component responsible for controlling air pressure to create mechanical movement in machines such as electronics and automobiles.
South Korea imposed an 11.66 percent anti-dumping levy on pneumatic valves of SMC Corp. and 22.77 percent on Toyooki in August 2015, citing potential injury to the domestic industry. Japan filed a petition with the WTO in March 2016, and the organization ruled in favor of Korea on eight substantive issues in its first ruling last year.
The latest decision by the WTO appeals panel upheld the initial ruling on seven points, excluding one regarding the effect of pricing. The WTO, however, overturned its first ruling that was in favor of Japan on one issue related to causality of the Japanese dumping practices, delivering an overall win on total eight points out of nine to Korea.
Regarding four procedural issues, the WTO upheld its first decision that took sides with Japan on two issues.
The latest victory came after Korea’s winning of a battle in April over the import ban on 28 kinds of seafood caught from Fukushima and seven nearby prefectures hit by the 2011 nuclear disaster. The WTO ruled in favor of Korea in its final ruling that the import restriction is legitimate.
By Lim Sung-hyun and Choi Mira
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