KIEP releases report outlining possible countermeasures to Japan's export curbs

日 수출규제, ‘다자외교+WTO 제소+상응조치’가 해법Korea's state-run think tank outlined the country's possible countermeasures against Japanese export curbs.Kim Hyesung sheds light on the Korea Institute for International Economic Policy report.Diplomatic outreach efforts, filing a complaint to the WTO, and imposing tariff or non-tariff barriers on Japanese exports to Korea.These are some of the measures outlined by the Korea Institute for International Economic Policy to counter Japan's export curbs.On July 4th, Tokyo imposed export restrictions on key high-tech materials to South Korea, including photoresist, fluorine polyimide and etching gas, that are used to produce chips and displays.This means Japanese exporters need permission... to clear each individual shipment to South Korea, which takes around 90 days.Tokyo is also looking to remove Seoul from its 'white list' of countries with minimum trade restrictions,... which would impact a wider range of goods... and is set to be announced as early as August.The KIEP says Korea must present its case to the international community,... and let the world know that Japan's move is unfair and detrimental to the global supply chain of chips and electronics goods.Korea's move to take the case to the WTO General Council next week is one example of such diplomatic measures."South Korea can also file a complaint to the WTO that Japan does not have a clear reason to impose the restrictions. And if the restrictions result in a delay or a cut in exports to South Korea, Seoul can point out that Japan has violated GATT, the General Agreement on Tariffs and Trade, that prohibits quantitative restrictions on the import and export of goods and distort the free flow of trade."But it would take around two years for the WTO to come up with a ruling to settle the dispute.Imposing tariffs and similar trade restrictions on Japan would be a last resort,... but the report warned it could result in an escalation of tensions... and give Japan room to file a complaint of its own to the WTO.Kim Hyesung, Arirang News.