Korea — Anti-Dumping Duties on Pneumatic Valves from Japan

 

Short title:	Korea — Pneumatic Valves
Complainant:	Japan
Respondent:	Korea, Republic of
Third Parties (original proceedings):	Brazil; China; Ecuador; European Union; Norway; Singapore; Turkey; United States; Viet Nam
Agreements cited: (as cited in request for consultations)	Art. 1, 3.1, 3.2, 3.4, 3.5, 6.5, 6.5.1, 6.9, 12.2, 12.2.2  Anti-dumping Art. VI  GATT 1994
Agreements cited: (as cited in panel request)	Art. 3.1  Anti-dumping Art. VI  GATT 1994 Art. 3.2, 3.4, 3.5, 4.1, 6.5, 6.5.1, 6.9, 12.2, 12.2.2, 1  Anti-dumping
Consultations requested:	15 March 2016
Panel requested:	9 June 2016
Panel established:	4 July 2016
Panel composed:	29 August 2016
Panel report circulated:	12 April 2018 (adopted on 30 September 2019 )
Appellate Body report circulated:	10 September 2019 (adopted on 30 September 2019)

 

Summary of the dispute to date

 

The summary below was up-to-date at 19 June 2020 

 

Consultations

 

Complaint by Japan

 

On 15 March 2016, Japan requested consultations with Korea regarding measures imposing anti-dumping duties on valves for pneumatic transmission from Japan and the documents and factual information underlying the imposition of those duties.

 

Japan claims that the measures are inconsistent with:

 

- Articles 1, 3.1,3.2,3.4, 3.5, 4.1, 6.5, 6.5.1, 6.9, 12.2 and 12.2.2 of the Anti-Dumping Agreement; and

 

- Article VI of the GATT 1994.

 

On 9 June 2016, Japan requested the establishment of a panel. At its meeting on 22 June 2016, the DSB deferred the establishment of a panel.

 

Panel and Appellate Body proceedings

 

At its meeting on 4 July 2016, the DSB established a panel. Brazil, Canada, China, Ecuador, the European Union, Norway, Singapore, Turkey, the United States and Viet Nam reserved their third-party rights. On 22 August 2016, Japan requested the Director-General to compose the panel. On 29 August 2016, the Director-General composed the panel.

 

On 7 March 2017, the Chair of the panel informed the DSB that, after consultation with the parties, the panel expected to issue its final report to the parties in the second half of 2017.

 

On 12 April 2018, the panel report was circulated to Members.

 

On 28 May 2018, Japan notified the DSB of its decision to appeal to the Appellate Body certain issues of law and legal interpretations in the panel report. On 4 June 2018, Korea notified the DSB of its decision to cross-appeal.

 

On 9 July 2019, the Chair of the Appellate Body notified the Chair of the DSB that the Appellate Body Report in these proceedings would be circulated to WTO Members no later than 10 September 2019. In an earlier communication, the Chair of the Appellate Body had explained that this was due to a number of factors, including the backlog of appeals pending with the Appellate Body at present and the overlap in the composition of all divisions resulting in part from the reduced number of Appellate Body Members.

 

On 10 September 2019, the Appellate Body report was circulated to Members.

 

At its meeting on 30 September 2019, the DSB adopted the Appellate Body report and panel report, as modified by the Appellate Body report.

 

Reasonable period of time

 

At the DSB meetings on 30 September 2019 and 28 October 2019, Korea informed the DSB that it intended to implement the DSB's recommendations and rulings in this dispute but that it would need a reasonable period of time to do so. On 14 November 2019, Korea and Japan informed the DSB that they had agreed that the reasonable period of time for Korea to implement the DSB's recommendations and rulings would be eight months. Accordingly, the reasonable period of time was set to expire on 30 May 2020.

 

On 15 June 2020, Korea and Japan informed the DSB of Agreed Procedures under Articles 21 and 22 of the DSU (sequencing agreement).

 

Implementation of adopted reports

 

On 28 May 2020, Korea informed the DSB of its compliance in this dispute. In this respect, Korea explained that the Korea Trade Commission (KTC) had issued the final resolution of the re-investigation into imports of valves for pneumatic transmissions originating in Japan. Following its review of the KTC’s final resolution, the Ministry of Economy and Finance of Korea made its final re-determination, which was published in the Official Gazette on 29 May 2020. Korea submitted that it had therefore fully implemented the DSB's recommendations in this dispute.