WTO agrees to mediate electronics dispute between Japan and South Korea
- Organisation will ask experts to determine if Japan violated WTO rules when it imposed restrictions on chemicals used in the production of items like TV screens
- Japan says South Korea’s decision to pursue the matter at the WTO instead of resolving it through diplomatic channels is ‘regrettable’
South Korea alleged Japan’s measures “constitute a politically motivated, disguised restriction on trade” that disrupted global value chains for South Korean manufacturers like Samsung Electronics and SK Hynix, according to a statement seen by Bloomberg.
Japan on Thursday said it was disappointed by the decision.
“We think it is extremely regrettable that South Korea has not honoured our agreement to resolve the matter through dialogue and communication,” said Mitsuhiro Fukuyama, director of the International Legal Affairs Office at Japan’s trade ministry. “Under present situation, it is difficult to have policy dialogue with South Korea.”
Following the ruling, the Japanese government said in July last year it would stop preferential treatment for shipments to South Korea of three materials whose production it dominates and which are used by firms such as Samsung Electronics.