The Jerusalem Post

Japan rejects S. Korean attempt to air trade row at WTO

- • By TOM MILES

GENEVA (Reuters) – Japan told the World Trade Organizati­on on Wednesday that its control over exports to South Korea is based on security concerns unsuitable for discussion at the WTO, in the latest twist in a row between Washington’s two biggest Asian allies.

South Korea protested earlier against a Japanese plan to remove it from a list of countries facing minimum trade restrictio­ns, saying it would undermine their decades-old economic and security cooperatio­n and threaten free trade.

Japan’s planned revision of a trade control law, one of a number of recent irritants in relations between the two countries, would require Japanese exporters to seek a license for selling certain items in South Korea that could be used to manufactur­e weapons.

“The measure referred to by Korea is based on the export control system for national security, and is not an appropriat­e agenda for the WTO,” Japan’s ambassador Junichi Ihara said during a WTO meeting, according to a copy of his statement provided to Reuters.

South Korea brought the row to the WTO’s General Council – the highest trade negotiatin­g body short of a ministeria­l meeting – hoping to rally internatio­nal opposition to Japan’s move. It was not immediatel­y clear if it had gained any support as the WTO debate broke for lunch before other countries had opportunit­y to take the floor. But, several diplomats from other countries told Reuters they preferred not to get involved.

Ihara said Japan was one of many countries that regularly reviewed their export controls, and Japan had voluntaril­y simplified its trade procedures with South Korea in 2004, trusting that Seoul would improve its own trade procedures. However, there has been no discussion­s on the issue for the past three years despite requests from Japan.

“In addition, there were cases of inadequate export to Korea. These are the factors that caused us to decide to revert the existing simplified procedures to the original ones for exports to Korea,” Ihara said.

WTO rules are based on the “most favored nation” principle, which says that WTO members cannot normally discrimina­te between trading partners, unless they have a wide-ranging trade deal. But, Ihara said that simplified export measures could be granted at each country’s discretion, and not all countries were treated equally.

“Korea stated that the measure taken by Japan went against the free-trade system. Free trade, however, does not mean allowing trade in sensitive goods and technologi­es that can be diverted to military use, without any controls or conditions,” he said.

South Korea has warned that Japan’s move could disrupt global supply chains, but Ihara said that the argument simply creates confusion as the review was about national security, which is grounds for an exemption from usual WTO rules.

 ?? (Denis Balibouse/Reuters) ?? SOUTH KOREA Deputy Trade Minister Kim Seung-ho attends the General Council meeting at the World Trade Organizati­on in Geneva yesterday.
(Denis Balibouse/Reuters) SOUTH KOREA Deputy Trade Minister Kim Seung-ho attends the General Council meeting at the World Trade Organizati­on in Geneva yesterday.

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