Skip to main content
×
×
Home

Japan – Countervailing Duties on Dynamic Random Access Memories from Korea (DS 336 and Corr.1, adopted 17 December 2007)*

  • MEREDITH A. CROWLEY (a1) and DAVID PALMETER (a2)
Abstract
Abstract

This article analyzes the decision of the WTO's Appellate Body in the dispute between Japan and Korea over Japan's imposition of countervailing duties on DRAMs imported from Korea. The legal analysis comments on the analysis of evidence, the lack of remand authority in the WTO system, and the meaning of a ‘direct transfer of funds’. The economic analysis discusses several issues related to determining the magnitude of the benefit to a firm of a financial bailout and the appropriate duration of a countervailing duty to offset the injury caused by a non-recurrent subsidy. We offer legal and economic criticisms of the Appellate Body's conclusion regarding the relationship between subsidies and injury to the domestic import-competing industry. We conclude that the Appellate Body's decision weakens the requirement of a causal link between subsidies and injury and, consequently, may open the door to protectionist abuse of the Subsidies and Countervailing Measures Agreement.

Copyright
References
Hide All
Akerlof George A. (1970), ‘The Market for “Lemons”: Quality Uncertainty and the Market Mechanism’, The Quarterly Journal of Economics, 84: 488500.
Bagwell Kyle and Robert W. Staiger (2006), ‘Will International Rules on Subsidies Disrupt the World Trading System?’, The American Economic Review, 96: 877895.
Conconi Paola (2008), ‘Comment on “Japan – Countervailing Duties on Dynamic Random Access Memories from Korea”, by Crowley and Palmeter’, forthcoming in World Trade Review 2009:1, and in Horn Henrik and Mavroidis Petros (eds.), The American Law Institute – The WTO Case Law of 2006–2007: Legal and Economic Analysis, Cambridge: Cambridge University Press.
François Joseph F. and David Palmeter (January 2008), ‘US – Countervailing Duty Investigation of DRAMS’, World Trade Review, 7: 219229.
Grossman Gene M. and Mavroidis Petros C. (2003), ‘United States – Imposition of Countervailing Duties on Certain Hot-Rolled Lead and Bismuth Carbon Steel Products Originating in the United Kingdom: Here Today, Gone Tomorrow? Privatization and the Injury Caused by Non-Recurring Subsidies’, in Horn Henrik and Mavroidis Petros (eds.), The WTO Case Law of 2001 – The American Law Institute Reporters' Studies, Cambridge: Cambridge University Press, pp. 170200.
Grossman Gene M. and Petros C. Mavroidis (2005), ‘United States – Countervailing Measures Concerning Certain Products from the European Communities: Recurring Misunderstanding of Non-Recurring Subsidies’, in Horn Henrik and Mavroidis Petros (eds.), The WTO Case Law of 2002 – The American Law Institute Reporters' Studies, Cambridge: Cambridge University Press, pp. 7887.
Palmeter David and Petros C. Mavroidis (2004), Dispute Settlement in the World Trade Organization: Practice and Procedure, 2nd Edition, Cambridge: Cambridge University Press.
Prusa Thomas J. (January 2008), ‘Comment on “US – Countervailing Duty Investigation of DRAMS”, by Francois and Palmeter’, World Trade Review, 7: 231234.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

World Trade Review
  • ISSN: 1474-7456
  • EISSN: 1475-3138
  • URL: /core/journals/world-trade-review
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Full text views

Total number of HTML views: 1
Total number of PDF views: 16 *
Loading metrics...

Abstract views

Total abstract views: 303 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 15th December 2017. This data will be updated every 24 hours.