Japan files WTO complaint on Korean shipbuilding subsidies

NOVEMBER 14, 2018 — As South Korea continues to struggle to find ways to help its battered shipbuilding industry, Japan has now formally complained to the World Trade Organization (WTO) asserting that measures already taken by Korea are in violation of WTO rules.

On November 6, Japan requested consultations with Korea concerning the following measures allegedly affecting trade in commercial vessels: (1) corporate restructuring measures to allegedly support Korean shipbuilders; (2) guarantees and other insurance for financing related to commercial vessel orders placed with Korean shipbuilders; (3) pre-shipment loans, measures part of the new shipbuilding program, and other financing for commercial vessel orders placed with Korean shipbuilders; (4) alleged eco-ship replacement subsidies; (5) other measures imposed by Korea to allegedly support commercial vessel purchases; and (6) amendments and other measures.

Yesterday, Japan filed a formal complaint with the WTO that sets out in detail the specifics of the subsidies on which it seeks consultation, lists the evidence available to it at this time on their existence and nature and on the damage eing caused to the Japanese domestic shipbuilding industry. Read the filing HERE.