Japan – Countervailing Duties on Dynamic Random Access Memories from Korea (WT/DS336): Report of the Panel

Summary

INTRODUCTION

On 14 March 2006, the Government of Korea (“Korea”) requested consultations with the Government of Japan (“Japan”) pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the “DSU”), Article 30 of the Agreement on Subsidies and Countervailing Measures (the “SCM Agreement”), and Article XXII of the General Agreement on Tariffs and Trade 1994 (the “GATT 1994”) regarding the imposition of countervailing duties by Japan on imports of certain Dynamic Random Access Memories (“DRAMS”) from Korea, and certain aspects of the investigation and determination that led to the imposition of such duties.

On 27 March 2006, the United States requested to be joined in these consultations pursuant to Article 4.11 of the DSU. The European Communities made a similar request on 29 March 2006. Japan accepted these requests. Consultations were held on 25 April 2006, but failed to settle the dispute.

On 18 May 2006, Korea requested the Dispute Settlement Body (the “DSB”) to establish a panel pursuant to Article 6 of the DSU, Article XXIII of the GATT 1994, and Article 30 of the SCM Agreement.

At its meeting on 19 June 2006, the DSB established a Panel pursuant to the request by Korea in document WT/DS336/5, in accordance with Article 6 of the DSU. At that meeting, the parties to the dispute also agreed that the Panel should have standard terms of reference. The terms of reference are, therefore, the following:

“To examine, in the light of the relevant provisions of the covered agreements cited by Korea in document WT/DS336/5, the matter referred to the DSB by Korea in that document, and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in those agreements.”

On 24 August 2006, the parties agreed to compose the Panel as follows:

Chairman: Mr. Daniel Moulis

Members: Dr. Faizullah Khilji

Mr. José Luis Santiago Pérez Gabilondo

China, the European Communities and the United States reserved their third party rights.