According to the website of nihon keizai shimbun on November 21, the October trade statistics released by Japan's Ministry of Finance on November 20 (quick report value) showed that exports to South Korea fell by 23.1% year on year, with negative growth for 12 consecutive months. Japan and South Korea failed to reach an agreement in talks at the world trade organization (WTO) on Monday over Japan's efforts to tighten export controls. The rivalry between Japan and South Korea is casting a shadow over the flow of goods and people.


Japan's exports to South Korea fell into double-digit negative growth in several sectors, including chemicals and general machinery, in October, the report said. Imports from South Korea fell 12 percent, the 10th straight month of decline.


In July, the Japanese government tightened export inspections of three materials, including hydrogen fluoride, used in semiconductor manufacturing. The Japanese government argued that the move was to properly manage the types of weapons that could be diverted, but South Korea objected and filed a complaint with the WTO on September 11th. The WTO dispute settlement procedure stipulates that the first step is to explore a solution between the two countries.

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Minister of trade affairs of Japan's ministry of economy, trade and industry junichiro kuroda and others, and cooperation officer of new trade and business order of ministry of industry and trade of South Korea ding haiguan and others attended the second consultation held on 19th. Japan and South Korea have reiterated previous claims.


"The move is aimed at properly managing trade in goods and technology that could be diverted to military use," the report said, stressing that it did not violate WTO agreements. South Korea called for "arbitrary discrimination" and demanded that Japan withdraw the measure. There was no discussion of scrapping the military intelligence protection agreement (GSOMIA), which expires on the 23rd.


In the future, South Korea could ask Japan for a third round of consultations or the WTO to set up a dispute settlement committee (expert group) that is equivalent to a first instance, the report said. At the press conference after the japan-rok consultation, ding haiguan expressed on the establishment of the expert group that "is an option". On that basis, he said, "if there is a possibility to resolve the issue, consultations will continue, but we do not want to discuss it for the sake of discussion."


According to the website of nihon keizai shimbun, the trade antagonism between Japan and South Korea may become permanent.