Korea shipbuilding industry might be sued at WTO

A press conference regarding trade issues was held in the Shilla Hotel in downtown Seoul March 9, 2001, hosting for the EUCCK (The European Union Chamber of Commerce in Korea). The conference was held with the purpose of explaining trade issues and recommendations to the Korea government from 18 committees in the EUCCK.

The Head of the European Commission Delegation, Frank H. Hesske, said, "The European Union (EU) welcomed the commitment to an open, free and fair, market oriented system in recent years. This has contributed to the openness of the economy by successfully reducing average tariff and non-tariff barriers and reducing institutional obstacles faced by foreign investors". He especially stressed that ratification of the Framework Agreement on Trade and Co-operation, which should come into force in April, will help promote bilateral common interests across a range of political, economic and social areas, including trade, science, technology, and education.

Mr. Hesske did not specifically mention shipbuilding industry issues, taking into consideration those delicate matters. However, he referred to "European shipbuilders are concerned that they are placed at a disadvantage in the global market due to particular practices in the Korean shipbuilding industry. Without indirect public intervention in the Korean shipbuilding industry, excess capacity will be unwound to reflect actual conditions in the global market. We believe that if the present arrangements remain, they will lead to a downward spiral in global ship prices."

He also added, "The EU probe team is in Korea now and has investigated practices in the Korean shipbuilding industry. The output of this investigation will come out this April. We hope it will be amicable, however, the possibility of it look dim." Mr. Hesske didn't explicitly address the possibility of suing the Korean shipbuilding industry at the WTO.