Japan and South Korea are once again at odds over Japan's tightening of its export controls. With Seoul filing a complaint with the World Trade Organization (WTO) against Tokyo, discussions on how to settle the dispute are expected to begin at the world body as early as this month.
It will take more than a year for the WTO to reach a conclusion, making it more likely that the confrontation will become prolonged.
"A unilateral response [by seeking WTO involvement] could undermine an agreement to resolve the issue through dialogue. It is extremely regrettable," Economy, Trade and Industry Minister Hiroshi Kajiyama said at a press conference after Friday's Cabinet meeting.
Kajiyama criticized Seoul's recent move to request to set up a WTO settlement dispute panel. The minister then reiterated his point that the basic policy is to resolve the issue through bilateral talks.
In July last year, the Japanese government made it obligatory for exporters to apply to the Japanese government when exporting three semiconductor-related items, including hydrogen fluoride, citing "an inappropriate case in the export controls of South Korea." In response, the South Korean side filed a complaint with the WTO over the case, but suspended the process and had been engaged in a bilateral policy dialogue since December last year.
However, earlier this month, Seoul announced its intention to resume WTO procedures, saying that Japan "has not shown the willingness to solve the problem." South Korea emphasized it has been working to improve its management system. It apparently has become increasingly irritated by Japan not easing its export controls.
In response to Seoul filing the complaint, the WTO will discuss South Korea's request to set up a panel at a dispute settlement meeting slated for as early as June 29. A panel is expected to be set up as early as this summer, and experts will likely start interviewing officials of the Japanese and South Korean governments.
Japan will maintain its stance on the tightening of its export controls on the ground that it is related to security, and "the measures are in line with WTO rules." Regarding the easing of the controls, Japan is expected to say, "It is necessary to comprehensively evaluate the response by the South Korean side."
It takes about one to 1-1/2 years from the establishment of a panel to the submission of a report, or a ruling on a dispute. As the WTO's Appellate Body, equivalent to an appeals court, has been understaffed, if either Japan or South Korea disagrees with the ruling, the talks could be left up in the air.
Read more from The Japan News at https://japannews.yomiuri.co.jp/
