WTO Overturns Decision on DRAM Dispute, Hangs Hynix
Online Staff -- EDN, June 28, 2005
The World Trade Organization (WTO) on Monday reversed a previous decision exonerating Korea’s Hynix Semiconductor Inc. from U.S. claims of engagement in unlawful DRAM subsidies.
Previously, the WTO found fault with the U.S. Department of Commerce’s findings that the Korean government directed Korean banks to provide unlawful subsidies to the DRAM manufacturer. The subsidies were part of a massive 2000 and 2001 bailout that resulted in the imposition of 44 percent duties on Hynix DRAMs sold in the United States.
A WTO dispute settlement panel upheld a similar case against Hynix in Europe two weeks ago. That case resulted in duties of 35 percent in the European Community.
Micron Technology Inc., which in 2002 filed complaints to the U.S. Department of Commerce claiming unfair DRAM subsidies for South Korean suppliers, has been among the first to speak out on the WTO’s ruling. "We are gratified that the WTO appellate body has agreed with the U.S. position on these unlawful subsidies," Steve Appleton, Micron chairman, CEO and president, said in a statement. "I would like to thank the Idaho, Utah and Virginia congressional delegations for their strong support and advocacy throughout this process.
Additionally, the Bush Administration, Ambassador Portman, Secretary Gutierrez, and the Department of Commerce and U.S. Trade Representative staff deserve recognition for tireless work on this important case. Today's decision represents a tremendous victory for U.S. free trade laws," Appleton said.
According to Rod Lewis, Micron’s VP of legal affairs and general counsel, "The world's free trade system will continue to work only if competition occurs on a level playing field with markets rather than governments driving investment decisions."
Hynix had received some good news for its financial woes earlier this month, including a WTO ruling against some of the European claims against the Korean chipmaker.
