To outdo each other! The second round of negotiations on the Korea-Japan WTO dispute failed, and Japan may become a "defendant"

WTO。 (Source: Reuters)
Overseas Network, November 19th In July this year, Japan announced that it would restrict the export of three materials mainly used in semiconductor and other industries to South Korea, and in August, it removed South Korea from the "white list" where it can enjoy trade convenience. South Korea also immediately "blacked out" Japan and filed a complaint with the WTO against Japan’s control over the export of some materials to South Korea. On 19th, Japan and South Korea held the second round of bilateral consultations in Switzerland based on the dispute settlement procedures stipulated by the World Trade Organization (WTO), but the results were not satisfactory.
According to a report by Japan Broadcasting Association (NHK) on the 19th, according to the relevant regulations of the WTO, as the first step of trade litigation, the parties to the dispute need to hold bilateral consultations. To this end, Japan and South Korea held the first bilateral consultation in October, but failed to reach an agreement.
During this consultation, the representatives of the two sides were Junichiro Kuroda, Minister of Trade and Industry of Japan, and Ding Haiguan, Cooperation Officer of New Trade Order of Korea Ministry of Industry, Trade and Resources. The talks lasted about six hours. The two sides still adhere to their previous positions. The Japanese side said that its purpose was "to better manage goods that may be used for military purposes", while the South Korean side retorted that the move violated WTO principles and demanded that the Japanese side cancel it.
At the subsequent press conference, Haruhiro Kuroda continued to reiterate the previous position of the Japanese government, while South Korean representative Ding Haiguan criticized Japan’s measures as "discriminatory trade restrictions", and the two sides still refused to give way to each other. Ding Haiguan also said, "The possibility of a third bilateral consultation is not high. According to the results of the consultation, including the establishment of the small Committee, future countermeasures will be discussed, which is expected to include filing a lawsuit with the WTO.
After the meeting, Junichiro Kuroda said that the two sides had a deeper understanding of the factual relationship and each other through this consultation, but the existing opinions of both sides have not changed, and the future direction of promotion will be decided by the ROK.
On the other hand, neither Japan nor South Korea mentioned the Japan-South Korea military intelligence protection agreement that will expire on the 23rd. According to the provisions of the WTO, if the agreement between the countries concerned cannot be resolved within 60 days from the request for agreement, they can request a small Committee equivalent to the WTO court to try it.
Japanese media pointed out that since the two sides did not reach a consensus in the consultations, it is expected that the ROK will apply to the WTO Dispute Settlement Body for the establishment of an expert group. It is expected that the corresponding Subcommittee of the WTO will begin to hear this lawsuit. The South Korean side will hold consultations on seeking the trial of the WTO court, and whether to prosecute will become the focus.
According to Yonhap News Agency’s previous report, Ding Haiguan also said recently that if the Japanese side continues to passively cope with the negotiations and fails to see the possibility of progress, it will actively consider the application. If it decides to apply for the establishment of a team, it will confirm the application time in a timely and rapid manner.
Recently, affected by trade friction, the relationship between South Korea and Japan was once deadlocked. The South Korean government has repeatedly stated that it will not renew the Korea-Japan Military Intelligence Protection Agreement. According to Korean media reports, the United States expressed dissatisfaction with the South Korean move. South Korean Foreign Minister Kang Jinghe also said that if Japan withdraws its trade restrictions on South Korea, South Korea can "reconsider" the renewal of the Korea-Japan Military Intelligence Protection Agreement.
To this end, on October 11 this year, South Korea and Japan held the first round of consultations, but the differences were obvious. At the beginning of November, the leaders of South Korea and Japan held a brief meeting for only 11 minutes, and public opinion generally expected that this move would restart the dialogue between South Korea and Japan. However, at the meeting of the two defense chiefs held on the 17th, Japan and South Korea did not make significant progress on the renewal of the military intelligence agreement. (Janice)