The Korean government announced that it has notified April 6 to the WTO Commodities Council of its decision to reverse tariffs worth about $480 million(510 billion Wons) because the U.S. safeguards on solar panel and residential washers are not consistent with the Safeguard Agreement.
The WTO Safeguard Agreement is the international discipline which allows the member states to take a safeguard measure counter any sudden increase of imports into the member state to cause or threaten to cause serious injury to the domestic industry, but the exporting member countries can also have the right of trade suspension for the adverse effects of the safeguard measures provided that the safeguard measures in question do not conform to the provisions of the Safeguard Agreement.
The Korean government pointed that the U.S. safeguard measures in question are not consistent with the WTO rules through the bilateral consultation held on February 1 with the U.S. government, and requested to agree on any adequate means of trade compensation for the adverse effects on the Korean trade. But the U.S. is known to refuse to accept the Korean government’s requirements.
However, in accordance with the Safeguard Agreement, the Korean government is said to have filed its written notice to the WTO that Korea will withdraw its tariff concessions on imports from the U.S. The Korean government estimates that the trade suspension for the adverse effect caused by the U.S. safeguard measures on washers and solar panels, totaling about $480 million a year, comprising $150 million to be damaged by the one and $330 million by the other, respectively.
Such standstill of tariff concession as will be possibly imposed on the U.S.-made goods cannot be allowed, however, immediately, but applicable only after the Dispute Settlement Body of the WTO approves finally under the decision that the U.S. safeguard measures are violating the Safeguard Agreement. It means that Korea cannot impose any retaliatory actions on the U.S. for the next three years at minimum unless the safeguard measures in question can be consistent with the WTO rules.
The Korean government has many times expressed its intention to file an appeal before the WTO in respect of the U.S. safeguard measures on residential washing machines as well as solar panels earlier. However, it is known that such counteractions have passed through March because of many issues at stake like the KORUS revisions, and steel tariffs. Given such matters have been apparently resolved by large at the present time, the Korean government is expected to actively pursue the trade suspension pertinent to the U.S. safeguard measures after a full deliberation on all the circumstances to come both at home and abroad while discussing which products pertinent to such suspension will be best appropriate to produce effectiveness and convenience as well.
swkim
