Tariffs too slow to come off
South Korea has ordered Japan to scrap punitive tariffs on RAM made by Hynix
Japan said that it would reduce the 27.2 per cent tariff it
imposed on Hynix DRAM chips in 2006 to 9.1 per cent, after the World Trade
Organisation ordered the duty be recalculated by September 1. However Hynix
said the Japanese decision called for the lower tariff to remain in place until
the end of 2010.
Jim Wan-joong, director of the East Asian Trade Division
at the Ministry of Foreign Affairs and Trade, said Tokyo's decision was "unacceptable and unfair" and South Korea was looking at retaliatory measures
against Japan. The Koreans are also expected to ask the WTO to look into the
The United States, the EU and Japan have imposed duties on Hynix
DRAM chips because of what they called unfair South Korean government support
for the company when it nearly collapsed twice under debt in 2001 and 2002.
South Korea almost won the battle, the WTO upheld Washington's 44.71 per cent
tariff, but called for the EU and Japan to recalculate theirs.
The EU said in
April it was repealing duties of more than 30 per cent effective as of the end
of last year.