ZCZC
BCN-29
S.KOREA-WTO
S. Korea airs concern over Japan’s curbs on exports of tech-related
material at WTO
GENEVA, July 10, 2019 (BSS/Xinhua) – South Korea on Tuesday expressed
concern over export control measures imposed lately by Japan on material
inputs for semiconductors and displays, in a meeting at the World Trade
Organization (WTO).
During the meeting of the WTO’s Council for Trade in Goods, South Korea
said Japan has only been citing “damage of trust” as the reason behind its
tightening export control measures without elaborating on what basis they
have in WTO rules.
Japan imposed stricter regulations on exports to South Korea last week of
materials vital to the South Korean tech industry. The materials, including
fluorine polyimide, photoresist and etching gas, are used to produce
semiconductors and display panels that inevitably influence the manufacturing
of smartphones, TVs and other tech products.
In addition, Japan is also reviewing whether to change the “white list
status” of South Korea, which will result in even more tightening trade
measures, recalled South Korea in the meeting.
For South Korea, there are no provisions in the WTO agreements which allow
a member country to take export control due to a “damage of trust” between
countries. South Korea said it worries this matter might end up jeopardizing
the spirit of free and fair trade which WTO members endeavor to protect.
South Korea further noted that Japan, at the G20 summit in Osaka, had
called for free, fair, non-discriminatory and predictable trading environment
but that it has failed to do so in this matter.
South Korea warned that the tightening export control measures will
disrupt the global value chain for electronic products and affect companies
worldwide, requesting Japan to withdraw its measures.
In response, Japan said the measures are not a trade embargo but an
operational review necessary for proper implementation of Japan’s export
control system based on its security concerns. It said a review of export
controls is conducted by every country including South Korea, adding that it
is pointless to say such a review goes against free trade or principles
adopted in G20 summit in Osaka.
Japan explained that the measures taken by Japan simply revert the
existing simplified procedures applied to South Korea to usual procedures,
which are fully consistent with WTO agreement.
BSS/XINHUA/HR/1505