Look for certain memory prices to shoot up soon.
SWB
---------- Forwarded message ----------
Message-ID: <Qus-trade-asiaURbUB_DlN.X.X@clari.net>
Date: Wed, 23 Jul 2003 22:15:52 PDT
From: AFP / David Williams <C-afp@clari.net>
Subject: US slaps tariffs on Asian fish and microchips
WASHINGTON, July 23 (AFP) - The United States took a swipe Wednesday
against Asian fish and microchip exporters, deciding to slap high tariffs on
Vietnamese-style catfish and South Korean semiconductors.
The barriers were erected in the face of fierce opposition in both Hanoi
and Seoul.
The quasi-judicial International Trade Commission (ITC) voted to support a
finding that the disputed imports from both countries were harming US
industries.
It was the final step required before tariffs are imposed by the Commerce
Department.
On Vietnam, the ITC voted four-to-zero that the whiskered fish were hurting
the US catfish industry, meaning they will now face import tariffs of up to 64
percent.
The Commerce Department found last month that the Vietnamese fillets were
being dumped on US markets, setting the import tariffs at a range of 36.84-63.
88 percent.
The department will formally order the duties after receiving the written
ITC decision on August 6.
The dispute is the first major test of a US-Vietnam trade pact, which
prised open the communist country's markets and slashed tariffs on its exports
to the United States in December 2001.
Vietnam has vehemently denied the dumping charges and accused the United
States of protectionism.
It says its exports to the US catfish market are low priced because
Vietnamese producers are able to breed the fish far more cheaply than US
farmers.
The United States, responding to US fisheries' complaints, has deemed that
the Vietnamese fish are not proper catfish. It refers to the Vietnamese
produce instead as frozen "basa" and "tra" fillets.
Easing the pain a little, the ITC members also unanimously rejected a
finding that there were "critical circumstances", which could have led to the
duties being made retroactive.
On South Korea, the ITC voted three-to-zero for a finding that the
semiconductor imports from major manufacturer Hynix Semicondcutor were
damaging to US industry.
One of the four ITC members did not take part in the vote. No reason was
given for his recusal.
The ITC decision will lead the Commerce Department to impose duties of 44.
71 percent on the Hynix Semiconductor chips, once it receives the formal ITC
report August 4.
The Commerce Department found last month that Hynix dynamic random access
memory semiconductors (DRAMS) were unfairly subsidised.
Hynix Semiconductor was rescued in December by a multi billion-dollar
bailout arranged by its local creditor banks, which the United States and the
European Union see as illegal government subsidies.
Its main lender, Korea Exchange Bank, and other creditors say the
government played no role in the rescue package, which was aimed at recovering
as much of their loans as possible from Hynix.
Hynix argues that the bailout -- worth 3.25 trillion won (2.7 billion
dollars) -- was made on a purely commercial basis and involved foreign banks,
including Citibank.
US semiconductor maker Micron Technology welcomed the ITC and Commerce
Department decisions.
"These actions validate that Hynix received billions of dollars in illegal
subsidies, reaffirms that free trade must also be fair trade, and demonstrates
our government's commitment to enforce trade laws," said Micron Technology
chairman, chief executive and president Steve Appleton.
The South Korean government filed a formal complaint last month with the
World Trade Organization against the US findings.
But South Korea also faces a similar threat from Europe.
The European Commission has called for imposing 34.9 percent countervailing
tariffs on Hynix chips, accusing the firm of receiving illegal subsidies from
the South Korean government.
EU members were due to vote on the proposal by August 25.
djw/ga
US-trade-Asia
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