Japan off South Korea’s preferred trade list
SEOUL, South Korea — South Korea said Monday that it has decided to remove Japan from a list of nations receiving preferential treatment in trade in what was seen as a tit-for-tat move following Tokyo’s recent decision to downgrade Seoul’s trade status amid a diplomatic row.
It wasn’t clear how South Korea’s tightened export controls would affect bilateral trade. Seoul said some South Korean companies exporting to Japan will be able to 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 enjoy.
Masahisa Sato, Japan’s vice minister for foreign affairs, said he believes the effect of Seoul’s move would likely be limited as Japan doesn’t import much sensitive material from South Korea.
Japan provided similar exceptions while removing South Korea as a favored trade partner, which eased some of the fears in Seoul about a blow to its exportdependent economy, where many manufacturers rely on parts and materials imported from Japan.
After spending weeks berating Tokyo for allegedly weaponizing trade and vowing retaliation, South Korean President Moon Jae-in struck a more conciliatory tone on Monday, saying that his government will refrain from “emotional” reactions to Japan over the trade dispute.
“We need a long-term approach to look for fundamental countermeasures,” Moon said in a meeting with senior aides.
South Korea’s trade minister, Sung Yun-mo, said Seoul decided to remove Japan from a list of countries that enjoy minimum restrictions in trade because it has failed to uphold international principles while managing its export controls on sensitive materials.