Issues and Arguments in Trade Dispute Cases against Korean Industries on Countervailing Measures

Abstract

Korean industries have been targets of complaints involving charges of unfair subsidies on steel and chemical products by the Korean government filed in the USA and the EU, Koreas two largest trading partners. A recent addition to these series of complaints is the complaint filed with the EU Commission against DRAM Industry in Korea, a Korean shipbuilding industry. These countervailing duties complaints, however, helped Korea identify and modify its problematic practices. Although subsidies and countervailing duties are less frequently used than are anti-dumping duties, their coverage spans over, inter alia, the industrial policies, and the tax system of each country, wielding significant influence thereupon. In particular, restructuring issues have an impact on the economy and the

society at large and therefore should not be neglected. This paper will first offer an explanation of the ASCM and a review of operation of the current system and other general matters, and then will discuss a few cases that have identified potential flaws in the current system. Finally it will examine the DDA scene to anticipate possible future developments and propose certain means of preparation.