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  • June 2016
  • Japan Requested the Establishment of a Panel under the WTO Agreement Regarding the Republic of Korea’s Measure Imposing Anti-Dumping Duties on Valves for Pneumatic Transmission from Japan

Joint Press Release with the Ministry of Foreign Affairs Japan Requested the Establishment of a Panel under the WTO Agreement Regarding the Republic of Korea’s Measure Imposing Anti-Dumping Duties on Valves for Pneumatic Transmission from Japan

On June 9, 2016, Japan requested the establishment of a panel under the WTO Agreement regarding the measure by the Republic of Korea (“Korea”) of imposing anti-dumping duties on valves for pneumatic transmission from Japan that Korea began to impose on August 19, 2015.

1. Background

  1. Korea initiated an anti-dumping investigation against imports of valves for pneumatic transmission from Japan on February 21, 2014.
  2. On January 20, 2015, Korea made a final determination that the dumped imports of valves for pneumatic transmission from Japan had caused material injury to the domestic industry, and it began to impose anti-dumping duties on these valves on August 19, 2015.
  3. Japan considers Korea’s imposition of anti-dumping duties to be inconsistent with the WTO Anti-dumping Agreement (Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994) because of flaws in Korea’s determination of an injury and a causal relationship as well as flaws in its investigation procedure.
  4. Therefore, in order to resolve this issue, Japan made this request for consultations with Korea under the WTO Agreement on March 15, 2016, and the consultations were held on April 28, 2016.
  5. Based on the results of the discussion with Korea, on June 9, 2016, Japan requested the establishment of a panel under the WTO Agreement regarding Korea’s measure of imposing anti-dumping duties on valves for pneumatic transmission from Japan.

2. Future actions

Japan will seek an appropriate solution to this issue in accordance with the WTO Agreements.

References

  1. Valves for pneumatic transmission
    Valves for pneumatic transmission are parts (valves) which control the flow of compressed air in extending, retracting, and rotating pneumatic cylinders, which are applied to assembly or conveyor equipment in semiconductor or automobile manufacturing plants.
  2. Anti-dumping duty
    An anti-dumping duty is a customs duty imposed on a certain product by an importing country where it is demonstrated that the export price of the product is less than its selling price destined for consumption in the exporting country and the dumped imports are causing injury to the competing industry in the importing country. The amount of anti-dumping duty cannot exceed the difference between the export price of the product and the domestic selling price of the like product in the exporting country.
  3. Outline of the imposition of anti-dumping duties on the product in question
    Korea decided to impose anti-dumping duties of 11.66% to 22.77% on Japanese companies concerning their valves for pneumatic transmission exported from Japan to Korea for five years from August 19, 2015.
  4. Japan’s exports of the product in question to Korea
    Japan’s exports of valves for pneumatic transmission to Korea amounted to approximately 6.3 billion yen in 2014.
  5. A panel under the WTO Agreement
    If consultations fail to settle a dispute, based on the request from the complaining party, the WTO panel examines the matter and makes rulings regarding consistency with the WTO Agreement. A party that is not satisfied with the panel rulings may appeal to the WTO Appellate Body.

Release date

June 9, 2016

Division in Charge

  • Information on the WTO dispute in general
    Multilateral Trade System Department (in charge of related rules) & Office for WTO Compliance and Dispute Settlement, Trade Policy Bureau
  • Information on the pneumatic valves industry
    Industrial Machinery Division, Manufacturing Industries Bureau
  • Information on Japan-ROK economic relationship
    Korea Office, Trade Policy Bureau

Related Information

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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