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South Korea seeks trade sanctions on U.S. as disputes pile up

Published 01/12/2018, 12:38 PM
© Reuters. A Samsung front-loading washing machine with an AddWash feature is shown at the Samsung Electronics booth during the 2016 CES trade show in Las Vegas

By Tom Miles

GENEVA (Reuters) - South Korea has asked the World Trade Organization for authorization to impose annual trade sanctions worth at least $711 million on the United States, a filing published by the World Trade Organization showed on Friday.

As well as those sanctions, arising from a dispute over trade in washing machines, Seoul also asked for permission to impose an open-ended amount of trade sanctions if Washington broke the same rules again with regard to other products.

The demand adds to a growing list of reproaches of U.S. trade policy, especially the punitive duties with which it often targets allegedly unfair trade.

In the past week alone, the WTO has published a broad Canadian complaint about the U.S. trade rulebook and a WTO filing on Friday showed Vietnam has complained about U.S. tariffs on fish.

India has also re-opened a U.S. dispute, alleging Washington has failed to comply with a ruling on solar power.

Trade tension is rising because of U.S. demands to renegotiate the North American Free Trade Agreement and virtual paralysis in the WTO dispute system, caused by a U.S. veto on new judges at what is effectively the world trade supreme court.

South Korea said it was demanding compensation because the United States had failed to meet a Dec. 26 deadline to comply with a ruling against duties of up to 82 percent it had imposed on appliances made by Samsung Electronics Co (KS:005930), LG Electronics Inc (KS:066570) and Daewoo Electronics Co.

Earlier on Friday, the United States and South Korea formally accepted a WTO ruling in a separate dispute over U.S. duties on South Korean steel pipe used in oil drilling, according to transcripts of statements at the WTO's dispute settlement meeting.

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South Korea's representative expressed disappointment that the ruling had not recognized "the magnitude of U.S. political pressure" - including letters from over 50 senators and 150 members of the House of Representatives - that prompted the U.S. Department of Commerce to drastically beef up its claim against South Korea.

South Korea's Trade Ministry is also considering filing a WTO complaint over U.S. restrictions on solar panel imports, it said in November.

Latest comments

south korea: amusing. all talk. usa is their trade lifeline. and we keep buying asian goods. we like 'em. can't get enough.
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