Thursday, March 17, 2005
The World Trade Organization (WTO) is expected to rule that South Korea's Hynix Semiconductor Inc. was unfairly penalized by European Union (EU) tariffs in the DRAM market, according to reports from Bloomberg and others on Wednesday (March 16).
The WTO (Geneva) is expected to uphold a complaint by South Korea against the EU's levy on DRAMs made by Hynix (Seoul). The 25-nation bloc within the WTO failed to prove Hynix received an illegal state subsidy when Korean banks gave it loan guarantees, according to the report.
The ruling has been expected The ruling would echo a similar WTO ruling against a U.S. countervailing duty of 44.7 percent on Hynix DRAMs imported into the U.S., handed down last month.
The U.S. imposed a 44.7 percent countervailing duty on Hynix DRAM imports in 2003, claiming the bailout package whereby government-owned banks led a consortium that exchanged debt for equity in Hynix amounted to illegal state subsidy. Europe followed in July 2003 with its 33 percent tariff using the same argument.
By: DocMemory
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