Trade War Between Japan, South Korea Escalates
As Connecting the Dots reported a few weeks ago, the Japanese government has dropped South Korea from its list of preferential trading partners. CNN reported early last week that the South Korean government has decided to respond in kind.
According to CNN, the decision means “means South Korean companies exporting to Japan will have to complete more documents, allow more time for approvals and get used to shorter lifespans for permits.”
South Korea is Japan’s third-largest trading partner. Its consumers purchase $54 billion worth of Japanese goods, including industrial machines, chemicals and cars, CNN said.
South Korean President Moon Jae-in reacted to the news by saying “[T]his economic retaliation is in itself unjustifiable and also has its roots in historical issues … While maintaining unwavering resolve and calmness, we need a long-term approach to look for the fundamental countermeasures.”