Korea — Measures Affecting Trade in Commercial Vessels (second complaint) (Japan)

 

Complainant:	Japan
Respondent:	Korea, Republic of
Agreements cited: (as cited in request for consultations)	Art. I:1, III:4  GATT 1994 Art. 1.1, 2, 3.1(a), 3.1(b), 3.2, 5(a), 5(b), 5(c), 6.3(a), 6.3(b), 6.3(c)  Subsidies and Countervailing Measures (SCM)
Consultations requested:	31 January 2020

 

Summary of the dispute to date

 

The summary below was up-to-date at 3 April 2020 

 

Consultations

 

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.