OFFICIAL REMOVAL OF TRADE PARTNERS

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The Japanese government has made it official today to remove South Korea from the list of trustworthy trade partners. Now, Japanese exporters must obtain individual approvals for Korea-bound materials that may be used for military purposes.

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In its official newsletter, the Japanese government proclaimed that Korea will now be excluded from its list of nations with trade privileges. The revision of Japan's trade oversight act will go into effect on August 28th, 21 days after the public proclamation. Tokyo explained some changes have been made to its law regarding security-guaranteed trade management. Now export approvals will be needed when there are concerns that materials bound for South Korea may be used for the development or production of nuclear weapons. Also, exports to the nation will be made even tougher as the comprehensive approval system with a three-year duration of effect has been terminated. However, Japanese goods can still be exported to Korea under a special comprehensive approval system. This system exempts export approvals and licenses for nations not on the whitelist. It is a type of comprehensive approval that is awarded every three years to Japanese exporters that are recognized by their government for solid management of outbound shipments. Under this system, Korean businesses will have an easier time importing Japanese goods than obtaining individual approvals. When export items are subject to individual approval, the Japanese government will have greater control over bilateral trade as Japan's trade ministry can decide on whether to approve or disapprove the export within 90 days.