Tuesday June 23, 2009

TOKYO: Japan said Monday it would complain to the WTO this week over a South Korean plan to tighten safety regulations on lithium-ion batteries, accusing Seoul of protectionism. "We fear that if the new regulations are introduced, a trade barrier would be created against foreign companies," Economy, Trade and Industry Minister Toshihiro Nikai told reporters.

Nikai added that "the government of Japan plans to express its concern" at a World Trade Organisation committee meeting on technical barriers to trade scheduled for Thursday and Friday in Geneva. The fresh trade row came as Japanese Prime Minister Taro Aso and South Korean President Lee Myung-Bak prepared for a summit in Japan Sunday.

Japanese companies hold a 60 percent share in the global market of lithium-ion batteries, which are used in electronics including cellphones, digital cameras and laptops. The new regulations on the production and sale of products using lithium-ion batteries will require certificates from designated South Korean inspectors, according to reports.

South Korea is ready to introduce the rules on July 1, an official at the Korean Agency for Technology and Standards told AFP in Seoul. Violators of the regulations would face up to a one year in jail or a fine of up to 10 million won (7,874 dollars).

The South Korean official, requesting anonymity, dismissed allegations that Japanese producers would face discrimination. "Approval from state inspectors is required for the safety of products," he said, adding that the regulations were simply designed to prevent explosions involving lithium-ion batteries.

Foreign manufacturers fear the new regulatory process, which comes after some batteries have overheated or exploded in recent years, could significantly delay the launch of their products in South Korea. "The criteria for obtaining certification aren't particularly clear," a Japanese government official was quoted as saying by the Yomiuri Shimbun daily. "We're worried that Japanese products are basically being kicked out of the South Korean market."


(AFP)

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