politics

Japan takes second complaint to WTO over South Korean shipbuilding

6 Comments

Japan launched a second complaint at the World Trade Organization on Monday over support South Korea gives its shipbuilding industry, intensifying a wider dispute between the two Asian countries.

Japan said in its filing that it had complained to South Korea on Jan 31 over measures related to the development, production, marketing and sales of commercial vessels. Japan circulated it to other WTO members on Monday.

Washington's two biggest Asian allies are embroiled in a widening political and economic dispute which erupted over forced labour in World War Two.

South Korea's shipbuilding and shipping companies have undergone massive restructuring in recent years amid a slowdown in global demand and rising competition from China.

Japan said the contested measures include loans below market cost and equity infusions, loans and refund guarantees on terms that are not commercially reasonable and unfair subsidies for vessels complying with environmental standards.

The complaint mirrors Japan's filing with the WTO in November 2018, which also took aim at Korean measures to help shipbuilders, including financing to enable them to stay in business in prolonged periods of low prices.

Japan and South Korea have 60 days of "consultations" to settle the dispute, after which Japan can ask the WTO to adjudicate. The two are technically still in consultations over the 2018 complaint.

In the wider dispute, Japan has enraged South Korea with a plan to "normalise" trade procedures, effectively curbing exports to South Korea and erecting a barrier that could disrupt the global supply of semiconductors.

That followed a ruling in 2018 by a South Korean court that Japanese companies had to pay compensation to South Koreans forced to work in Japanese factories during Japan's occupation of the Korean peninsula from 1910 to 1945.

© (c) Copyright Thomson Reuters 2020.

©2020 GPlusMedia Inc.

6 Comments
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Just when you thought it was safe to.go back into the water.

Get ready for Moon and company to flame the rhetoric.

All yours Samit

0 ( +9 / -9 )

Lol,

Pot calling kettle black

2 ( +8 / -6 )

Gotta love the timing... tourism, international relations and business with SK in dolldrums for the past year or so, said tourism and business with China spiralling downhill due to the coronovirus.....what can we do to bring at least a little bit of positivity into the market , economy and international relations J govt?

I know my fellow LDP aparatchicks ...lets bring another complaint to WHO..that will do wonders for us. Now off to the Ginza clubs , kampai.

-1 ( +6 / -7 )

In the wider dispute, Japan has enraged South Korea with a plan to "normalise" trade procedures, effectively curbing exports to South Korea and erecting a barrier that could disrupt the global supply of semiconductors.

The pro-Korean sentiment in this paragraph speaks volumes about the "normalised" anti-Japan propaganda which is seemingly accepted as part of journalism these days. Well let's break it down shall we....

"Japan has enraged South Korea" - This is an embellisment of the situation, no doubt to try and paint Japan as the 'bad guy'. If Souht Korea is enraged, it's only because Japan had the audacity to call them out on their defying of sanctions with North Korea. Japan is supposed to just shut up and let South Korea do anything it wants, right?

"a plan to "normalise" procedures" - Indeed, they used the right word to describe it this time, but they added the quotation marks to make it appear that what Japan is doing is morally wrong in the least, and illegal at worst. The lack of candor is telling.

"effectively curbing exports" - Curbing, as in, slowing down? That would entirely be up to South Korea's own doing, not providing the documents Japan requires for export to occur in due time. Again, the disingenuous sentiment is telling.

"erecting a barrier" - A final jab to Japan's stomach, in text form. The only "barriers" erected are the sactions against North Korea. Trade between Japan and South Korea has no barriers at all. This is clear anti-Japan propaganda.

The real situation is this: Japan regularly exported sensitive materials that could be used in weapons manufacture to South Korea on a FAST TRACKED basis. Meaning, South Korea could skip the normal export procedures so they could receive the cargo faster. They are the only country in Asia that has this arrangement with Japan (all others are Europen is the US). For 3 years Japan requested from South Korea more information about where sensitive materials that could be used in weapons manufacturer ended up. All it took was for South Korea to provide more information on the end user of those materials. South Korea ignored the requests from Japan for 3 years. Finally Japan removed South Korea from the list of countries on the FAST TRACKED export procedures list. What this means is that South Korea now has to go through NORMAL procedues to obtain that same sensitive materials. In real terms - and if South Korea doesn't comply - it could add up to 90 days to obtain those materials, whereas in Fast tracked form they could be had in a week.

So there it is.... big bad Japan "normalisation" of exports to South Korea is literally like going through the normal checkout at a supermarket instead of the 8 items or less checkout. They can still go through the checkout with their items. They just have to wait a little longer.

4 ( +10 / -6 )

This really has nothing to do with the WWII related issues between Japan and SKorea. It is a legitimate WTO issue and it's the proper forum to seek resolution. The media of course do their best to tie it all into the never-ending -story although they failed to insert the words "brutal occupation" into this article. But it does beg the question as to whether both Japan and SKorea are taking China to the WTO over the same issue as China dwarfs both countries' shipbuilding capacity.

4 ( +10 / -6 )

The pro-Korean sentiment in this paragraph speaks volumes about the "normalised" anti-Japan propaganda which is seemingly accepted as part of journalism these days. Well let's break it down shall we....

Thank you for putting it straight. Saves me some time to do it, great detailed job!

Please also contact other international news agencies to inform them about their misstatements, which are taken over unchanged by many newspapers unaware of the wrong content. Often They don't even realize they're wrong.

I had success with a couple of papers already to not just copying SK views anymore but e.g. to actually call the Sea of Japan by its name instead of East Sea and Liancourt Rocks instead of Dokdo. Sometimes you can't blame the agencies for making mistakes since SK net activists are very industrious to use any kind of publication possibility to change the view. For example in public map services like OSM, which is used as a basis for many international free map products, the Liancourt Rocks and Sea of Japan are altered to Korean names only in any language, to not even allow the Japanese name for explicitly marked Japanese textfields.

Unfortunately Japan ist too decent in this matter for decades, not able to fight back as sneaky since it simply is sincere.

3 ( +6 / -3 )

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