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South Korea won a World Trade Organization (WTO) dispute over the United States' safeguard measures on large-sized residential washers and parts, Seoul's trade ministry said Wednesday.
In May 2018, the Seoul government lodged the complaint, three months after the Donald Trump administration began imposing a 20 percent tariff on the yearly quota of 1.2 million imported units and a 50 percent tariff on washing machines beyond the number.
The measure was extended in 2021 for another two years, with the tariffs on up to 1.2 million units standing at 14 percent and on the excess amount 30 percent. For components of washing machines, the figure came to 30 percent.
In a newly published report, a WTO appeals panel said that it could not see any violation of WTO rules by South Korea in all of the five core issues surrounding the matter, according to the Ministry of Trade, Industry and Energy.
Washington failed to clearly demonstrate any links between increased imports of South Korean products and serious harm to the US industry, the ministry said, citing the report. A safeguard action can be taken to protect a domestic industry from a sudden surge in imports causing damage to domestic production.
The US also inappropriately added American parts production companies to its list of the affected industries, though they are not in competition with South Korean makers, it added.
The US can file an appeal against the decision within 60 days. If not, the case will be closed within 12 months following relevant procedures.
"We will try to put an early end to the safeguard measures upon the WTO panel judgment," ministry official Yun Chang-hyeon said. (Yonhap)
