TOKYO, Aug 13, 2019 (BSS/AFP) – Japan is “in the dark” as to why South
Korea has downgraded Tokyo’s trading status, its trade minister said Tuesday,
amid an intensifying trade war between the two neighbours and US allies.
South Korea on Monday created a new category of trading status for Japan,
with Trade Minister Sung Yun-mo saying it was “hard to work closely with a
country that frequently violates the basic rules.”
South Korea’s list of trade partners was divided into two groups, those who
are members of the world’s top four export control agreements and those who
are not.
But Seoul said Monday it had created a new category for countries that had
signed the four pacts “but operate an export control system that violates
international norms”.
Japan is the only country in the new category.
The move left officials in Tokyo bemused.
“After watching the South Korean press conference, we remain completely in
the dark as to the grounds on which it claims that Japan’s export control
system fails to comply with (international) principles,” tweeted Trade
Minister Hiroshige Seko on Tuesday.
Monday’s move is the latest in a series of tit-for-tat measures between the
two neighbours.
On July 4, Japan tightened its rules on awarding official export permits
for South Korea, meaning that screening applications could take up to 90
days.
Japan has also announced it will remove South Korea from a list of favoured
export partners from August 28.
South Korea quickly fired back, rescinding Japan’s favoured export partner
status and saying it would also review a military information agreement.
The dispute has raised concerns over the potential implications for their
security cooperation in the face of North Korean missile tests, and the
possible impact on global supply chains.
Despite mutual criticism over policies linked to wartime history, both
Japan and South Korea insist these measures have been introduced on national
security grounds.
South Korea is the fifth-largest importer of Japanese goods, while
petroleum products, iron and steel products, and electrical machinery
including semiconductors are the major South Korean imports to Japan,
according to finance ministry trade data.
“Although the de-listing does not come as a surprise, it nevertheless
illustrates that the bilateral tensions between Japan and South Korea show no
sign of abating,” said Tobias Harris, an expert at Teneo consultants, in a
note on Tuesday.