Responding to US Safeguard Measures: S. Korean Gov’t Requested Negotiations on U.S. Import Restrictions | BusinessKorea

Sunday, February 25, 2018

The South Korean government is planning to seek an adequate compensation in conformity to Article 8.1 of the WTO agreement for the loss from the Trump government’s safeguards on Korean Washing machines.
The South Korean government is planning to seek an adequate compensation in conformity to Article 8.1 of the WTO agreement for the loss from the Trump government’s safeguards on Korean Washing machines.
Seoul, Korea
25 January 2018 - 10:00am
Jung Suk-yee

On January 24, the South Korean government made an official request for negotiations with the United States Trade Representative (USTR) with regard to the recent U.S. safeguard measures against washing machines and photovoltaic cells and modules imported from South Korea.

The government explained that the request is based on Article 12.3 of the WTO Agreement on Safeguards, which stipulates that any country applying a safeguard measure must provide an adequate opportunity for consultations before doing so. The South Korean government is going to point out that the safeguard measures are in violation of the WTO agreement at the negotiations that can be held next week or later.

It is also planning to seek an adequate compensation in conformity to Article 8.1 of the agreement. According to the article, any country applying a safeguard measure must provide the other party with a concession equivalent to the losses of companies in the latter that are attributable to the safeguard measure. In other words, the South Korean government is going to demand a cut in import duty for products other than washing machines.

It also said that it would implement a suspension of concession in accordance with Article 8.2 of the agreement unless the U.S. agrees on the compensation. Namely, it is going to offset the losses attributable to the safeguards by a higher import duty in that case. 

Categories: 

Copyright 2013 BusinessKorea Co., Ltd.
301 Samdo Building, 12-1
Yeoido-dong, Yeongdeungpo-gu
Seoul, Korea 150-010
Tel: +82-2-578-3220
Fax: +82-2-578-3224
Email: contact@businesskorea.co.kr

 
 

Web design by: