DISPUTE SETTLEMENT

DS: Korea — Measures Affecting Trade in Commercial Vessels (Japan)

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.

  

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Summary of the dispute to date

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Consultations

Complaint by Japan

On 6 November 2018, 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.

Japan claimed that measures (1) to (6) appear to be inconsistent with:

  • Articles 1.1, 2, 3.1(a), 3.2, 5(a), 5(c), 6.3(a), 6.3(b), 6.3(c) of the SCM Agreement; and
  • Article VI of the GATT 1994.

Japan claimed that measures (3) to (6) appear to be inconsistent with:

  • Articles 3.1(b) and 3.2 of the SCM Agreement; and
  • Article III:4 of the GATT 1994.

On 20 November 2018, the European Union requested to join the consultations. On 21 November 2018, Chinese Taipei requested to join the consultations. Subsequently, Korea informed the DSB that it had accepted the European Union's request to join the consultations.

 

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