DS: Korea — Measures Affecting Trade in Commercial Vessels (second complaint) (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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Complaint by Japan (See also DS571)

On 31 January 2020, 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. This is the second request for consultations by Japan with Korea concerning measures allegedly affecting trade in commercial vessels.

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

  • Articles 1.1, 2, 3.1(a), 3.1(b), 3.2, 5(a), 5(c), 6.3(a), 6.3(b), and 6.3(c) of the SCM Agreement; and
  • Articles I:1 and III:4 of the GATT 1994.

Japan submitted, together with its consultations request, a statement of available evidence pursuant to Articles 4.2 and 7.2 of the SCM Agreement.

On 14 February 2020, the European Union 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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