Japan on March 15, 2016, filed a complaint with the World Trade Organization (WTO) over anti-dumping duties imposed by South Korea on pneumatic valves.

An investigation conducted by South Korea in 2014 determined that pneumatic valves from Japanese companies were being dumped – i.e. sold at prices below market value – in South Korea. The South Korean Government began imposing anti-dumping duties on the valves on August 19, 2015, at rates of between 11.66 percent and 22.77 percent. The duties are valid for five years.

Japan said it considers South 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 South Korea's determination of injury and a causal relationship, as well as flaws in its investigation procedure.

The two parties will now attempt to resolve the dispute through bilateral consultations. If a resolution is not reached in 60 days, South Korea may request adjudication by a WTO panel.

Pneumatic valves are used to control the flow of compressed air in extending, retracting, and rotating pneumatic cylinders, according to Japan's Ministry of Economy, Trade and Industry, which said the nation's exports to South Korea amounted to approximately JPY6.3bn (USD55.5m) in 2014.

Source: tax-news.com