Monday, August 27, 2012

France Accuses South Korea's Hyundai, Kia of Dumping s

This sounds serious -- dumping is a grave charge that a company is trying to flood a market with goods being sold AT A LOSS (i.e., not merely at a lower price) -- but this may simply be a routine mechanism triggered by Hyundai's and Kia's dramatic rise following the start of the EU-Korea FTA.

From the article:

The EU-South Korea free-trade treaty was signed in July 2011 and took effect in May. Mr. Montebourg issued a statement earlier this month declaring South Korean car exports to the EU had jumped 50% in January and February compared to a year before. He said the increase was mainly in the segment of small, diesel-engine cars, a niche where French makers were traditionally strong.

He noted that the treaty provides for the EU to urgently look into any sudden rise in imports to one or several member states of products belonging to a sensitive sector, such as cars. Mr. Montebourg wants the EU to look into the trade imbalance and to come up with a plan of "new action" if it turns out that there is a deep trade imbalance in France's disfavor.

According to European automobile manufacturers' association ACEA, Hyundai and Kia together sold 391,511 cars in the European Union in the first half of this year, up 17% from the first six months of 2011. The two brands together increased their market share to 5.9% in the first half of this year, from 4.7% a year.

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