Korea – Measures affecting Trade in Commercial Vessels
(Second Complaint) (Japan)

Request to Join Consultations

Communication from the European Union

The following communication, dated 14 February 2020, from the delegation of the European Union to the delegation of Korea, and the delegation of Japan, is circulated to the Dispute Settlement Body in accordance with Article 4.11 of the DSU.

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Pursuant to Article 4.11 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), the European Union (EU) hereby notifies the Government of the Republic of Korea, the Government of Japan, and the Dispute Settlement Body that, in the light of its substantial trade interest, it desires to be joined in the consultations requested by Japan in a communication circulated to WTO Members on 10 February 2020 (WT/DS594/1, G/SCM/D129/1, G/L/1354), entitled "Korea - Measures affecting Trade in Commercial Vessels (Second complaint) (Japan)".

The EU notes that the request for consultations relates to a number of alleged export and local content subsidies provided by Korea directly, or through public or private institutions, to Korean shipbuilders or their customers.

The EU is a major global producer and exporter of both ships and maritime equipment such as ship engines and navigational equipment. EU shipbuilders generate approximately 43 billion EUR of production value, directly employ 285 000 people and are successful in very complex, technologically advanced markets. EU maritime equipment manufacturers and suppliers number some 28 000 firms, generate a total production value of 71.5 billion EUR, and directly employ 324 000 people. With a calculated total value of approximately 114.8 billion EUR, the EU maritime technology industry (namely shipbuilders and maritime equipment manufacturers) is the global leader in terms of aggregated production value.