EU suing Korean Shipbuilding at WTO

European Union delegates agreed to sue the Korean shipbuilding industry at the World Trade Organization (WTO), September 30.
Bent Brentsen, Danish Economic minister and Chairman of the EU revealed that EU economic ministers agreed to resolve the a shipbuilding conflict between EU and South Korea through litigation. A spokesman from the EU said that the suit will be file at the WTO around October 20
As the EU decided to sue, EU member countries will be permitted to subsidize their own shipbuilding companies to compensate for unfair Korean subsidies, said the spokesman.
Though the EU and Korea tried to negotiate this conflict in Brussels on September 25 and 26, they failed to reach a conclusion, and instead the matter will be resolved through the WTO courts.
The EU argued that Korean shipbuilders, including the largest shipbuilding company, Hyundai Heavy Industry, have been selling vessels for less than construction costs thanks to Korean government subsidies. Korean ship builders denied the accusation responding that the low prices are due to the won’s depreciation and an efficient steel industry.
When the EU brings the case to the WTO, the two parties will hold bilateral talks for 60 days to settle the differences with the WTO mediating, and if they still fail to reach an accord, a WTO dispute settlement panel will be instituted.
Roughly 9-12 months are required from the filing of the suit to the final ruling, and if one of the parties appeals the WTO’s ruling, it would take another 12-15 months. In all, it could take 21-24 months for the case to be completed.