S Korea to remove Japan from preferred trade list

13 Aug '19

1 min read

Pic: Shutterstock

South Korea has removed Japan from a list of nations receiving preferential treatment in trade. South Korean trade minister Sung Yun-mo said on August 12 that the government is removing Japan from the 29-country ‘white list’ because it has failed to uphold international principles while managing its export controls on sensitive materials.

Sung said the changes are expected to be effective in September.

The move is being perceived as a tit-for-tat response to Tokyo’s decision to downgrade Seoul’s trade status.

South Korean officials said they would work to minimise the adverse impact on their exporters and bilateral trade, according to a news agency report.

Bilateral ties were stirred up last year by South Korean court rulings ordering Japanese firms to pay compensation to Koreans over forced labour during World War II. Japan condemned the decisions, saying the dispute was settled in 1965 when diplomatic ties were normalised between the two nations.

Japan colonised Korea from 1910 until the defeat of Japan in 1945. The spat, which includes curbs on tech supplies, has reportedly sparked fears over risks to the global electronics sector. (DS)

Fibre2Fashion News Desk – India

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