5
Business Organizations Sent Opinion to Japanese Government Calling for Withdrawal
of Export Trade Control Order
- Jointly delivered to Japan’s Ministry
of Economy, Trade and Industry on 23rd -
Five Korean business organizations, including the Korea
International Trade Association, Korea Chamber of Commerce and Industry, Korea
Employers Federation, KBIZ Korea Federation of SMEs, and the Federation of
Middle Market Enterprises of Korea delivered an official opinion to Japan’s
Ministry of Economy, Trade and Industry on July 23rd, calling for
withdrawal of the revised bill of the Export
Trade Control Order.
The organizations stressed in the opinion, “If Japan’s ‘Export Trade Control Order’ is implemented, it will hurt
the ties between Korea and Japan and cause uncertainties in trade and
industrial relations of the two countries, and bring significantly negative
impact on the global economy through disruption in the value chain. Therefore,
the order must be withdrawn.”
The five economic bodies pointed out that the principle of free
trade order, which Korea and Japan have been championing, could be hindered by
the restriction. They argued that the two countries have effectively operated
export controls and management systems making sure that they do not undermine
the foundation of free trade, and in the same context, this control order must
be reconsidered.
In addition, they indicate clearly, “The Japanese government announced the revised ‘Control Order’ on the
grounds that the trust relations between the two countries were severely
damaged. However, the Japanese government did not provide specific grounds for
damage to the trust relationship, nor did it proactively communicate or
negotiate with the Korean government in advance. It’s a matter of formality.”
They also expressed their concerns that since Korea and Japan have
formed a complementary industry and trade structure through division and
specialization for over 60 years and have grown into key countries in the
global value chain, the negative impact will spread to third-party companies.
The opinion stressed, “In
the midst of fierce competition between regions to secure the leadership of the
future new industry and service industry, the friendly cooperation and
specialization between Korea and Japan are becoming more important. Therefore,
the revised control order must be withdrawn in order to build a favorable
relationship between the two countries.”
Finally, the five business organizations stated, “We urge the Japanese government to withdraw the revised ‘Export
Trade Control Order’ so as not to undermine the valuable relationship of trust
that the two countries have built over a long time. Moreover, businesses in
Korea and Japan need to make this event as an opportunity to cooperate and
prosper together.”
< Reasons for urging Japan to
withdraw its ‘Export Trade Control Order’>
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1
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The need for protection of free
trade
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2
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Bilateral dialogue and cooperation
on export control policies first
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3
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Damage to companies in the two
countries and negative impact on the global economy
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4
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Build developmental relationship
between the two countries
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