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Thursday, 17 June 2021

S.Korea to drop Japan from its fast-track trade 'white list'

Duration: 01:09s 0 shares 1 views
S.Korea to drop Japan from its fast-track trade 'white list'
S.Korea to drop Japan from its fast-track trade 'white list'

South Korea said on Monday it plans to drop Japan from its "white list" of countries with fast-track trade status from September, a tit-for-tat move that deepens a diplomatic and trade rift between the two countries.

Ciara Lee reports

It's one thing to be blacklisted but South Korea is using a "white list" against Japan dropping it from its list of countries with fast-track trade status from September.

Seoul says the move is a result of inappropriate trade practices but did not provide details.

It's seen as something of a tit-for-tat move that deepens the diplomatic and trade rift between the two countries.

(SOUNDBITE) (Korean) SOUTH KOREA'S MINISTER OF TRADE, INDUSTRY AND ENERGY, SUNG YUN-MO, SAYING: "If the Japanese government requests consultation during the comment period, the South Korean government is ready for discussion anytime and anywhere." The tighter regulations will likely make it harder for Japanese firms to buy from South Korean suppliers.

Relations between the two countries have soured since a ruling by Seoul's Supreme Court last year that Japanese companies should compensate South Koreans who were used as forced labourers during World War Two.

Tokyo announced earlier this month that it was removing South Korea from its own "white list", because of an erosion of trust.

In July, Japan imposed tighter curbs on exports to South Korea of materials used to make smartphone chips - South Korea's top export item.

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