Hynix Semiconductor is facing successive unfavorable turns in trade disputes.

the World Trade Organization (WTO) has ruled in favor of the U.S, which is trying to impose a punitive tariff on the Korean chipmaker, while Japan actively considers imposing countervailing duties on Hynix. Countervailing duties are a punitive tariff that an importing country imposes on an exporter that receives government subsidies.

The WTO’s appellate panel released a report Monday (Swiss time) overturning last year’s WTO dispute settlement panel ruling that the U.S. imposition of countervailing duties had violated WTO rules.

The trade dispute began when the U.S government reached a final decision to slap a punitive tariff of 44.29 percent on Hynix in July 2003, arguing that the write-off of debts for the Korean chipmaker as it was restructuring by Korean financial institutes was tantamount to government subsidies.

Japanese Economic Minister Shoichi Nakagawa told reporters on Tuesday that the country had no objection to the WTO appellate panel’s decision and hinted that it might impose a punitive tariff on Hynix. At the request of Japanese chipmaker Elpida, the Japanese government has been considering the imposition of countervailing duties on the Korean company since last August and will soon deliver a preliminary ruling.

Hynix appears flustered in the face of successive bad news, but says that the ruling will have little negative influence on the company. It has prepared for potential unfavorable rulings by building a global production base linking Korea, the U.S, China and Taiwan. A Hynix official said that a punitive tariff would not be a problem for the company once plants in Taiwan and China go into operation late this year and early next year.

By: DocMemory
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