S. Korea warns of WTO petition against U.S. safeguard measures

By Lim Chang-won Posted : January 23, 2018, 13:14 Updated : January 23, 2018, 13:14

[Yonhap Photo]


SEOUL, Jan. 23 (Aju News) -- South Korea's top trade official slammed U.S. safeguard measures on imports of washing machines and solar panels as unfair and vowed to file a petition with the World Trade Organization.

Trade Minister Kim Hyun-chong accused Washington of took unfair measures out of political considerations that violated international rules and the WTO agreement. "The government will actively respond to the proliferation of protectionism to protect our national interests and plan to actively exercise the rights guaranteed by the WTO agreement," he said.

Kim warned that American products would lose customs benefit in South Korea unless Washington takes corrective measures through bilateral trade talks.

U.S. measures include a 20 percent tariff on the first 1.2 million units of imported large residential washers and a 50 percent tariff on units exceeding the quota. The below-quota rate goes down to 18 percent and 16 percent in the second and third years, respectively. For units exceeding the quota, the rate goes down to 45 percent and 40 percent.

On imported solar cells and modules, the tariff rate will range from 30-15 percent over the next four years after the first 2.5 gigawatts.

In 2016, Samsung and LG shipped large residential washing machines worth one billion US dollars to the U.S. in 2016, cornering nearly 30 percent of the U.S. market led by U.S. rival Whirlpool, while South Korean solar cell exports stood at $1.3 billion.

Protectionism will hurt the U.S. economy because South Korean companies have created factories there, Kim said, calling for joint action with other countries. "If we appeal this case, we can win," he said, adding South Korea has won many times against "excessive" U.S. measures in the past.
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