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  5. Japan Requests the Establishment of a Panel under the WTO Agreement Regarding the Republic of Korea’s Measure Imposing Anti-dumping Duties on Stainless Steel Bars Originating from Japan

Japan Requests the Establishment of a Panel under the WTO Agreement Regarding the Republic of Korea’s Measure Imposing Anti-dumping Duties on Stainless Steel Bars Originating from Japan

September 13, 2018

On September 13, 2018, Japan requested the establishment of a panel under the WTO Agreement regarding the measure by the Republic of Korea (ROK) of imposing anti-dumping duties on stainless steel bars originating from Japan, on which the ROK started imposing such duties from July 30, 2004.

On September 13, 2018, Japan requested the establishment of a panel under the WTO Agreement regarding the measure by the ROK of imposing anti-dumping duties on stainless steel bars originating from Japan.

On July 30, 2004, the ROK started imposing anti-dumping duties on stainless steel bars originating from Japan. After deciding to extend the anti-dumping duties a second time, the ROK then decided on a third extension of three additional years based on the third sunset review conducted from July 2016 to June 2017.

Japan considers the ROK’s decision to extend the anti-dumping duties to be inconsistent with the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (WTO Anti-dumping Agreement) due to flaws in the determination that the expiry of the duty would be likely to lead to continuation or recurrence of dumping and injury, as well as flaws in its review procedures.

Japan will move forward with the procedures in order for this matter to be appropriately solved in accordance with the WTO Agreements.

Reference 1: Request of the establishment of a panel under the WTO Agreement

Reference 2: 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.

Reference 3: 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.

Reference 4: Sunset review

A sunset review is a review initiated before the date of expiry 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 the initiation of their imposition, but as an exceptional rule, the duties can be continued if the imposing country determines that the expiration of the duty would be likely lead to continuation or recurrence of dumping and injury to the domestic industry.

Reference 5: Background and outline of the imposition of anti-dumping duties on the product in question

Reference 6: Japan’s exports of the product in question to the ROK

The export volume of stainless steel bars from Japan to the ROK has decreased by approximately 40% since starting the imposition of anti-dumping duties by the ROK on the product in question (from 9,269 tons in 2002, before the duties, to 5,349 tons in 2016).

Divisions in Charge

Information on WTO dispute in general:
Office for WTO Compliance and Dispute Settlement, Multilateral Trade System Department, Trade Policy Bureau
Information on the stainless steel bar industry:
Metal Industries Division, Manufacturing Industries Bureau
Information on Japan-ROK economic relationship:
Korea Office, Trade Policy Bureau
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