ID :
190249
Wed, 06/22/2011 - 05:41
Auther :
Shortlink :
https://oananews.org//node/190249
The shortlink copeid
U.S. countervailing duties on fridges unlikely: Korean firms
SEOUL (Yonhap) - South Korean refrigerator manufacturers do not expect the United States to levy punitive countervailing duties on their products, local industrial and government sources said Wednesday.
Citing Samsung Electronics Co. and LG Electronics Inc. insiders, the sources said both companies have made clear to U.S. authorities that any subsidies they received from the Korean government were industry-wide and of an unspecified nature.
The ongoing probe was initiated when Whirlpool Corp., the world's largest home appliance manufacturer, filed a petition in March claiming that the South Korean companies had received "countervailable subsidies" from Seoul that distorted the high-end, bottom-mount refrigerator market.
Countervailable subsidies cited for hurting Whirlpool include low-interest loans from state-run financial institutions such as the Export-Import Bank of Korea, the Korea Development Bank and Korea Trade Insurance Corp.
"Companies believe that since support provided in the past was not aimed at helping any particular product, there is little real concern of countervailing duties being slapped on home appliances," an official at the Ministry of Knowledge Economy said.
Along with the ministry, Samsung and LG are carefully examining a 500-page questionnaire sent by the U.S. Commerce Department and compiling detailed answers aimed at alleviating any misunderstandings, he said.
The questionnaire will be sent back in July so it can be used as a reference when Washington is expected to make a preliminary ruling on its countervailing duty probe, the official added.
A preliminary ruling is slated for late August, followed by a final verdict in November, although this date may be pushed back by a maximum three months.
The combined U.S. market share of large, bottom-mount refrigerators made by the two Korean companies reached 58.7 percent as of last year, compared with 8.5 percent for Whirlpool.
Samsung and LG make refrigerators in South Korea and Mexico.
In addition to the government subsidies probe, the U.S. is conducting an independent review to see if South Korean companies have unfairly undercut prices to hurt rivals that can result in anti-dumping actions.
Government and industry insiders hinted that while the two local electronic giants are not overly worried about being slapped with countervailing duties, they are more concerned in regard to the ongoing anti-dumping probe.
A preliminary ruling is scheduled for September with a definitive ruling to be made in January.
Citing Samsung Electronics Co. and LG Electronics Inc. insiders, the sources said both companies have made clear to U.S. authorities that any subsidies they received from the Korean government were industry-wide and of an unspecified nature.
The ongoing probe was initiated when Whirlpool Corp., the world's largest home appliance manufacturer, filed a petition in March claiming that the South Korean companies had received "countervailable subsidies" from Seoul that distorted the high-end, bottom-mount refrigerator market.
Countervailable subsidies cited for hurting Whirlpool include low-interest loans from state-run financial institutions such as the Export-Import Bank of Korea, the Korea Development Bank and Korea Trade Insurance Corp.
"Companies believe that since support provided in the past was not aimed at helping any particular product, there is little real concern of countervailing duties being slapped on home appliances," an official at the Ministry of Knowledge Economy said.
Along with the ministry, Samsung and LG are carefully examining a 500-page questionnaire sent by the U.S. Commerce Department and compiling detailed answers aimed at alleviating any misunderstandings, he said.
The questionnaire will be sent back in July so it can be used as a reference when Washington is expected to make a preliminary ruling on its countervailing duty probe, the official added.
A preliminary ruling is slated for late August, followed by a final verdict in November, although this date may be pushed back by a maximum three months.
The combined U.S. market share of large, bottom-mount refrigerators made by the two Korean companies reached 58.7 percent as of last year, compared with 8.5 percent for Whirlpool.
Samsung and LG make refrigerators in South Korea and Mexico.
In addition to the government subsidies probe, the U.S. is conducting an independent review to see if South Korean companies have unfairly undercut prices to hurt rivals that can result in anti-dumping actions.
Government and industry insiders hinted that while the two local electronic giants are not overly worried about being slapped with countervailing duties, they are more concerned in regard to the ongoing anti-dumping probe.
A preliminary ruling is scheduled for September with a definitive ruling to be made in January.
