Japan decides to revoke S. Korea’s preferential trade status

Japan decides to revoke S. Korea’s preferential trade status

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From left, Japan's Land, Infrastructure and Transport Minister Keiichi Ishii, Prime Minister Shinzo Abe and Finance Minister Taro Aso attend a Cabinet meeting in Tokyo Friday, Aug. 2, 2019. Japan has approved the removal of South Korea from a "whitelist" of countries with preferential trade status, escalating tensions between the neighbors. (Yoshitaka Sugawara/Kyodo News via AP=Newsis)
From left, Japan’s Land, Infrastructure and Transport Minister Keiichi Ishii, Prime Minister Shinzo Abe and Finance Minister Taro Aso attend a Cabinet meeting in Tokyo Friday, Aug. 2, 2019. Japan has approved the removal of South Korea from a “whitelist” of countries with preferential trade status, escalating tensions between the neighbors. (Yoshitaka Sugawara/Kyodo News via AP=Newsis)

Japan on Friday decided to remove South Korea from a list of nations entitled to simplified export control procedures.

The cabinet of Prime Minister Shinzo Abe approved plans to remove South Korea from a “white list” of countries, raising the stakes in a bitter diplomatic row between the neighbors.

The removal of South Korea from the list will take effect on Aug. 28 after going through necessary domestic procedures, Japanese Minister of Economy, Trade and Industry Hiroshige Seko said at a press conference.

Japan has already tightened regulations early last month on its export to South Korea of three materials vital to make memory chips and display panels, which are the mainstay of the South Korean export.

Under the preferential deals which also simplified procedures, Japanese exporters can ship products and technology to 27 whitelisted countries including Argentina, Australia, Britain, Germany, New Zealand and the United States, among others.

South Korea is the first country to be excluded on Japan’s white list after gaining the status in 2004. Now Japanese companies will need to obtain case-by-case approval from Japan’s trade ministry to be able to export to South Korea.

The announcement came a day after Japanese and South Korean foreign ministers did not manage to reduce tensions between the two countries in a meeting in Bangkok, Thailand. (Xinhua=Newsis)