JAPAN ASKS SOKOR: SCRAP TARIFFS ON STEEL BARS AFTER WTO RULING

Japan urged South Korea to immediately remove its anti-dumping tariff on Japan-made stainless steel bars after a World Trade Organization (WTO) dispute settlement panel decision said an extension of the protections would be a contravention of WTO rules, Kyodo news agency reported.

In a report dated Monday, the panel said Japanese-made bars are priced higher than those made by South Korean companies, siding with the Japanese claim that imported products cause no damage to the domestic industry. The report also pointed out that there is a "large volume" of Chinese products already on the market at a "low price." It called on South Korea to take remedial measures based on the decision.

"We strongly urge South Korea to abolish the tariff, recognized as against the WTO agreement, in accordance with the decision," Chief Cabinet Secretary Katsunobu Kato said at a news conference in Tokyo.

The panel's ruling could add fuel to tensions between Japan and South Korea, worsening a relationship that has seen the neighbors at odds over wartime labor compensation and Tokyo's imposition of tighter export controls. South Korea began imposing a 15.39 percent tariff on Japan-made stainless steel bars in July 2004 and decided to extend the measure for the third time in June 2017, prompting Tokyo to lodge a complaint with the WTO in June 2018. The panel was set up four months later as bilateral consultations failed.