TOKYO — The World Trade Organization’s dispute settlement panel ruled against South Korea’s levying of antidumping duties on Japan-made industry-use valves and called on Seoul to take remedial measures in its report dated Thursday.
The panel upheld Japan’s claims that South Korea’s antidumping duties ranging from 11.66 to 22.77 percent for five years from August 2015 on Japanese pneumatic transmission valves used to control the flow of compressed air are inconsistent with WTO rules on antidumping duties.
South Korea may appeal the decision to the WTO’s Appellate Body within 60 days.
The panel said South Korea did not sufficiently demonstrate how high-priced imported Japanese products are lowering the prices of South Korean products, although Seoul said the Japanese products have hurt local companies.
Japan exported pneumatic transmission valves worth 9.1 billion yen ($85 million) to South Korea last year, according to the Japanese Ministry of Economy, Trade and Industry.
The ministry estimated the additional tariffs will raise the tax burden on valves supplied by Japanese companies like SMC Corp. by 3.7 billion yen during the five-year period, according to a ministry official.
The panel decision came after Tokyo asked the WTO to establish the dispute settlement panel in March 2016 following the failure of consultations with Seoul over the issue.