Trade War Between Japan and South Korea

TRADE WAR BETWEEN
JAPAN AND SOUTH KOREA

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BACKGROUND.............................................................................................................................1
ASSIGNMENT................................................................................................................................2
REFERENCES................................................................................................................................6

INTRODUCTION
Trade refers to economic conflicts that results from high protectionism where states
creates or raise tariffs or trade barrier against other countries and states for responding to barrier
of trade created by other parties. Trade affects the global market as well as the whole economy of
the country. When trade barrier are created these raise various arguments on which discussions
are done by the countries. The discussions sometimes resolve the conflicts and sometimes no
outcomes are reached. When a trade war is raised economies of conflicting countries are
affected. Trade war between Japan and South Korea is an economic conflict in between 3rd and
11th world's largest economies.
Legacy that continued from world war II fuelled the conflict. Also after ruling from
South Korea Supreme Court in 2018 October and November about claiming compensation for
forced labour from Japanese companies. Reason behind trade was cited officially by Japanese
government because government of South Korea alleged it will not comply with security
regulation for export control and avoiding the request of Japanese government in having 3 years
bilateral trade dialogues (New York Times. 2019). Trade dispute caused deterioration to relations
between Japan and South Korea to least point after the diplomatic relation between the two
countries normalized in 1965.
BACKGROUND
The main issues that lead to conflicts between japan and south Korea is related to comfort
women. The issues related that Japanese companies forced Korean women to work even in brutal
conditions. Countries normalized the relations in 1965. Second issue is regarding the decision of
court ordering Japanese companies to compensate South Korean families who were treated
unfairly and were forced illegally for supplying labour in World War II. These issues infuriated
government of Japan the issues were settled in 1965 treaty for normalization of Diplomatic
relation between 2 countries.
Japan announced on July 1, that chemical export that is essential for the Semi conductor
of South Korea. The decision made effective on July 4 that imposed new restrictions over the
industry inclusive of processes for licensing that forced exporters for seeking approval for every
shipment for 90 days (Lau, 2018). Deputy chief reflected that restrictions were related to the
security concerns of the nation. Japan's allegation were denied by government of South Korea.
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On September 11, 2019 Korea requests consultation with Japan with regards to certain measures,
related to licensing procedures and policies adopted by Japan. It alleged restriction over exports
of resist polymers, fluorinated polyimide, and hydrogen fluoride and related technologies which
were destined for Korea. Products were primarily used in production of TV displays,
smartphones and semiconductors. Japan removed South Korea from the white list (Kim and Cha,
2016).
ASSIGNMENT
In response of the trade barriers by Japan, Korean government stated control procedure
for the export are unfair and groundless. It is also stated that export controls are made in
violation of international laws and is harmful and disruptive for economies of both the countries
and global market. It is urged by South Korean government to Japan for withdrawal of export
control procedures as their relations would be further damaged by them.
It is argued by the Korean officials that restriction over export of chemical materials on
the national security base are purely absurd. The move is to avoid compensation payment to the
wartime victims for the atrocities faced by them for which Japan is still liable (Japan Times.
2019).
Seeing the trade wars it is seen that South Koreans have adopted move for boycotting
Japanese products. The restriction imposed by japan led Koreans to stop buying beers, cars,
cosmetics and anything else that labelled made in Japan. Protest in south Korea have always
been properly organised but they pass more quickly. The boycott of Japanese products are tied
with emotional issues of the war time and also the sense that most successful companies of
Korea are under threat. The market share of Japan in the banned chemicals amounts for 90%.
The major problems will be faced by companies like Samsung, SK Hynix. This will affect the
economy of whole country (Bouët and Laborde, 2018). Removal of whitelist status will require
Japanese companies to take prior approval of government while exporting sensitive material to
South Korea.
US also trying to ease the tensions between South Korea and Japan that are biggest Asian
Allies. The UN commission over human rights supported the view of Korea that claims of
individuals were not settled under bilateral treaties. International labour organisations also
requested Japan for responding to claims raised by forced labour victims. Also it is seen that
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