EU set to join Japan’s WTO complaint against Korean yards

EU set to join Japan’s WTO complaint against Korean yards

The European Union may well join Japan’s campaign against state aid being dished out by Seoul to Korean shipbuilders. Japan filed a complaint at the World Trade Organization (WTO) earlier this month after months of complaining about how its neighbour is propping up struggling shipbuilders with hundreds of millions of dollars of government cash.

“The EU notes that the request for consultations relates to a number of alleged export and local content subsidies provided by Korea directly, or through public or private institutions, to Korean shipbuilders or their customers,” the EU said in a statement delivered to the WTO over the weekend.

“The EU is a major global producer and exporter of both ships and maritime equipment, such as ship engines and navigational equipment,” the EU added.

“The measures referred to in the consultation request may have a substantial impact on the price of ships, including ship engines and other maritime equipment, and affect trade flows in these products,” it said.

In October 2002, the EU sued South Korea over a similar matter.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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