Shipbuilding Dispute Goes to WTO
 
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Shipbuilding Dispute Goes to WTO

      10/3/2002

European Union foreign ministers decided on 30th September to take a long-standing dispute over South Korean shipbuilding subsidies to the World Trade Organization. The EU decided on the move after high-level talks between South Korean President Kim Dae-jung and top EU officials failed to reach agreement. In recommending to the foreign ministers that the EU take the case to the WTO, EU Trade Commissioner Pascal Lamy added that further talks last week also failed to reach a deal.

Mr. Lamy added, “there was lack of support of the Korean industry for such an agreement”. South Korea has already threatened to countersue if the EU takes the issue to the WTO. The EU decision follows a long-running dispute over alleged unfair shipbuilding subsidies.In recent years, EU shipyards have been losing market share to the Southeast Asian nation. As part of the WTO case, the EU foreign ministers also approved plans to restart their own aid to European shipyards, which were abolished at the end of 2000.


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