The Hindu Business Line
South Korea to remove Japan from preferred trade list
South Korea said on Monday that it has decided to remove Japan from a list of nations receiving preferential treatment in trade in a tit-fortat move following Tokyo’s recent decision to downgrade Seoul’s trade status amid a diplomatic row.
It wasn’t immediately clear how South Korea’s tightened export controls would impact bilateral trade. Seoul said that some South Korean companies exporting to Japan will receive exceptions from case-by-case inspections that are normally applied on sensitive shipments to nations with lower trade status and go through the same fasttrack approval process that they currently enjoy.
Masahisa Sato, Japan’s Vice Minister for foreign affairs, said that the impact of Seoul’s move would likely be limited as Japan doesn’t import much sensitive materials from South Korea.
Japan provided similar exceptions while removing South Korea as a favoured trade partner, which eased some of the fears in Seoul about a possible blow to its exportdependent economy, where many manufacturers heavily rely on parts and materials imported from Japan.