Japan Requests Consultation with the Republic of Korea under the WTO Agreement Regarding the ROK’s Measure Imposing Anti-dumping Duties on Stainless Steel Bars Originating from Japan
June 18, 2018
Joint Press Release with the Ministry of Foreign Affairs
On June 18, 2018, Japan requested a consultation with the Republic of Korea (ROK) under the WTO Agreement regarding the ROK’s measure imposing anti-dumping duties on stainless steel bars originating from Japan, which it has been continuing for nearly 14 years since the ROK imposed the measure in July 2004.
In July 2004, the ROK started the measures imposing anti-dumping duties on stainless steel bars originating from Japan.
In February 2010, the ROK conducted a sunset review, which is a review of the need for the continued imposition of the duties, on the subject products and decided to continue the imposition of the duties because they determined the expiration of the duties would likely lead to continuation or recurrence of domestic injury to the ROK. This was the first extension of the imposition and it was to be executed for three years. Following this, the ROK further determined another three-year extension of the duties in October 2013.
In June 2016, the ROK initiated a review for the third extension of the imposition. During the review processes, Japan repeatedly requested that ROK carry out appropriate procedures and stated Japan’s concern over these reviews. However, the ROK never terminated the imposition and imposed its third, three-year extension of the duties in June 2017.
Japan considers the ROK’s decision to extend the anti-dumping duties to be inconsistent with the General Agreement on Tariffs and Trade (GATT) and the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (WTO Anti-dumping Agreement) due to flaws in both the determination of injury by the authorities of the ROK and in its review procedures.
Therefore, Japan made this request for consultations with the ROK under the WTO Agreement to find a solution to this issue.
2. Future schedule
Japan will coordinate specific schedules of this consultation with the ROK.
- Stainless steel bars
Stainless steel bars are excellent in corrosive resistance, oxidation resistance and heat resistance, mainly molded into and used as bolts, nuts, valves for machine tools or industrial machinery, turbine blades and parts of automobile valves and shafts, etc.
- 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 value 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.
- Sunset review
A sunset review is a review initiated before the date of the imposition of anti-dumping duties on subject products. In principle, the imposition of anti-dumping duties must be terminated within five years from their imposition, but as an exceptional rule, the duties can be continued if the imposing country determines that the expiration of the duty would likely lead to continuation or recurrence of the dumping practice and injury to the domestic industry.
- Outline of the ROK’s determination of extending the imposition of anti-dumping duties
In July 2004, the ROK initiated the imposition of anti-dumping duties on stainless steel bars originating from Japan and in June 2017 decided to extend the duties. The ROK is set to impose the duties at the rate of 15.39% on stainless steel bars exported from Japan to the country for three years from June 2, 2017.
- Total export value of the products in question from Japan to the ROK
The total export value of stainless steel bars from Japan to the ROK in 2016 was approximately 2.8 billion yen.
- Consultation under the WTO Agreement
Under the WTO Agreement, in determining an inconsistency with the WTO Agreement in measures for imposing anti-dumping duties, the concerned parties are initially recommended to settle the dispute through reaching an agreement. Specifically, such parties are required to hold a consultation meeting prior to the submission of a request for establishment of a panel (corresponding to the first trial) under the WTO Agreement.
Division in Charge
- Information on the WTO dispute settlement in general:
WTO Compliance and Dispute Settlement, Multilateral Trade System Department, Trade Policy Bureau
- Information on the steel industry
Metal Industries Division, Manufacturing Industries Bureau
- Information on Japan-ROK economic relationship
Korea Office, Trade Policy Bureau