Trade rows between Japan and S. Korea are negotiated in Geneva. Can it be resolved? (Image via Pulse)

Japan, S. Korea discuss trade row on Friday

Alfonsus Adi Putra
Market & Investment
Export Import
Oct 11, 2019
2616
On Friday, Japan and South Korea (S. Korea) are going to hold bilateral consultations in Geneva over the trade dispute between the two Asian countries. The talks came after S. Korea’s decision in September to file a complaint to the World Trade Organization (WTO) against Tokyo’s export curb.

The bilateral consultations are held according to the WTO’s settlement framework. Should no agreement be reached during the talks within 60 days, WTO is going to form a settlement panel for the trade row between Japan and S. Korea, functioning as a lower court, as early as November to arbitrate the case.

Japan and S. Korea had been looking for a date and venue for the bilateral consultations since both countries agreed to hold one on 20 September over S. Korea’s request.

Japan will be represented by the Multilateral Trade System Department at Japan’s Ministry of Trade, Junichiro Kuroda, and S. Korea will be represented by the Director-General for Trade Legal Affairs and Public at South Korea's Ministry of Trade, Industry and Energy, Chung Hae-kwan.

The trade rows began when S. Korean Supreme Court ruled Japanese companies in S. Korea to compensate for wartime labor during WWII in 2018. In July, Tokyo tightened its export screening. The S. Korean government accused the export curbs as politically motivated; hence, violating WTO’s regulations.

Following the trade curbs, the Japanese government removed S. Korea from its preferential trade treatment list in late August. S. Korea also did the same against Japan in mid-September.

Tokyo denied the accusations by stating that the export curbs were only meant to ensure more proper export management. By the tighter export screening, the Japanese companies need approval before exporting their materials to S. Korea. By October, the S. Korean Ministry of Trade revealed that Japan had granted seven shipments so far.

Source: https://bit.ly/2ox1BDN

Politics , Economy , Export-Import , Asia , Japan , S.Korea , Trading