S. Korea files WTO petition over U.S. dumping calculation

SEOUL, Nov. 25 (Yonhap) -- South Korea's trade ministry said Wednesday that it
has petitioned the World Trade Organization (WTO) to set up a dispute settlement
panel to address the U.S. method of determining antidumping duties.
The complaint covers antidumping duties determined by the U.S. calculation, known
as "zeroing," between 1999 and 2006. Washington has not used the antidumping
calculation since February 2007 because it was found to be inconsistent with WTO
rules.
Zeroing almost always increases the amount of duties imposed for "dumping," or
selling an exported good at a price lower than in its home market, and can
sometimes create a duty where none would otherwise have been imposed.
The ministry said it has taken the case to the global trade governing body at the
request of POSCO, South Korea's top steel maker, and domestic cutting tool
manufacturers.
"POSCO and some local firms have asked us to raise the issue as the U.S. did not
take action on any previous cases (of zeroing)," said a ministry official said.
POSCO claims that the U.S. still has no intention of changing antidumping duties
assessed in earlier investigations conducted before February 2007.
The ministry said its action will not have any impact on a bilateral free trade
deal.
"We don't expect any negative impact on the free trade agreement because it is
not a trade issue between countries, but a matter related to individual
companies," the official said.
South Korea and the U.S. signed the free trade agreement in 2007, but the
ratification of the trade accord by both countries' legislatures has been stymied
by disagreements on auto and beef trade.
The U.S., the world's largest economy and South Korea's second-largest trading
partner, conducted US$84.7 billion in two-way trade last year.
sam@yna.co.kr
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