Japan Files WTO Petition over S. Korean Shipbuilding Aid

Politics

Tokyo, Feb. 1 (Jiji Press)--Japan has filed a petition against South Korea with the World Trade Organization accusing Seoul of providing excessive aid to the domestic shipbuilding industry, informed sources said Saturday.

On Friday, Japan asked South Korea to hold bilateral talks on the matter based on WTO rules, the sources said. If the talks fail, Japan will seek to establish a dispute settlement panel.

Japan filed a similar petition in November 2018 claiming that financial assistance worth 1.2 trillion yen that the South Korean government provided to a major domestic shipbuilder undermines fair competition and violates WTO rules.

But the dispute settlement procedures fell apart, and Tokyo concluded that Seoul has no plan to take corrective steps.

Relations between Japan and South Korea have already been strained due to disputes over wartime labor and Tokyo's strict controls on exports to South Korea.

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Jiji Press