Japan to reinstate S Korea as preferred trading nation starting Jul 21

The decision will end a four-year trade dispute that started in July 2019 when Japan removed South Korea from its ‘white list’ of countries offered fast-track approvals in trade as ties deteriorated.

Japan also tightened export controls on key chemicals used by South Korean firms to make semiconductors and displays, after which South Korea filed a complaint with the World Trade Organisation and removed Japan from its own list of countries with preferred trade status.

The ties showed signs of rapid improvement following a March 2023 initiative by Seoul to resolve disputes. Yoon travelled to Tokyo to discuss the issue with Prime Minister Fumio Kishida.

South Korea later withdrew its WTO complaint following talks, removed the key chemicals export controls and reinstated Japan’s preferential trade status, global newswires reported.

Terming Japan’s decision ‘a symbolic measure’ that underscores the countries’ fully restored bilateral trust and the removal of uncertainty in trade, Lee Do Woon, spokesperson of South Korean President Yoon Suk Yeol, said: “With import and export procedures getting simplified, we expect exchanges and cooperation between the countries’ companies to accelerate.”

ALCHEMPro News Desk (DS)