Consultation Organization for Settlemnet of Dispute on Shipbuilding Constructed

Korea and the EU agreed to construct the consultation organization to solve the dispute on shipbuilding, announced Hwang Do-Yun, Minister for Trade on 14th. Minister Hwang is on a visit to Brussels, Belgium.

After meeting with EU Trade Commissioner Pascal Lamy, Minister Hwang told that Korea and the EU had decided to make a consultation organization in order to settle the dispute on shipbuilding without filing a lawsuit to the World Trade Organization (WTO). The consultation organization will be comprised of the officials from Korean and the EU, and officials of shipbuilding companies.

The EU Executive Commission recently decided to recommend to bring South Korea to the WTO, by June 30, at meeting scheduled for 14th and 15th of May with the EU Board of Commission. Korea is to be charged with the Korea government`s grant of subsidies and unfair price practices of Korean Shipbuilders.

But the EU`s decision to file a suit will be maintained regardless of the agreement on the construction of consultation organization. If both sides cannot reach at a agreement on the solution of the dispute, the EU will file a suit to the WTO at the end of next month as planned.