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South Korea and Japan Launch Trade Dialogue to Secure Supply Chains

South Korea and Japan have agreed to establish a regular policy dialogue between their industry ministries to manage trade and economic security issues. The agreement, reached at a meeting in Tokyo, includes a new bilateral Supply Chain Partnership Arrangement (SCPA) to boost resilience against disruptions. The partnership will also foster joint exploration and investment in critical minerals and resources. Additionally, energy firms from both countries signed an LNG swap agreement to ensure stable supplies amidst global market volatility.

Key Points: S. Korea, Japan Establish Regular Trade & Supply Chain Dialogue

  • New ministerial dialogue channel
  • Bilateral supply chain partnership signed
  • Focus on critical minerals & energy security
  • Cooperation amid global geopolitical shifts
2 min read

S. Korea, Japan to hold regular policy dialogue on trade, supply chain

South Korea and Japan agree to a new policy dialogue and partnership to manage trade, economic security, and critical mineral supply chains.

"work to continuously develop the mutually beneficial industrial and trade cooperation - Kim Jung-kwan"

Seoul, March 14

South Korea and Japan agreed on Saturday to establish a regular communication channel between their industry ministries to better manage various trade, economic security and supply chain issues, Seoul's industry ministry said.

The agreement was made at a meeting between South Korean Industry Minister Kim Jung-kwan and his Japanese counterpart, Ryosei Akazawa, held on the sidelines of the inaugural Indo-Pacific energy security ministerial meeting in Tokyo, according to the Ministry of Trade, Industry and Resources.

The two countries will comprehensively monitor and manage various economic issues, including trade cooperation, economic security, supply chains and mineral resources, through the envisioned policy dialogue amid a rapidly shifting global trade and geopolitical environment, the ministry explained.

The ministry said the two sides also signed a bilateral supply chain partnership arrangement (SCPA) to up their readiness to possible supply chain disruptions while boosting their joint response capacity by working to minimize unnecessary restrictions to trade affecting supply chain resilience.

The SCPA will also help Seoul and Tokyo expand their cooperation in joint exploration, investment and technology development in the critical minerals and resources sector, it added.

On Saturday, Korea Gas Corp. and Japanese energy firm JERA Co. also signed an operation cooperation agreement, which includes a liquefied natural gas (LNG) swap arrangement between the two companies, as the two countries agreed to bolster cooperation for stable LNG supplies amid volatility in the global energy market stemming from the ongoing turmoil in the Middle East.

The Seoul government will work to continuously develop the mutually beneficial industrial and trade cooperation between Korea and Japan, building on the 60th anniversary of the normalisation of bilateral diplomatic relations, Kim said in a press release, said the report.

- IANS

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Reader Comments

P
Priya S
Interesting development. While cooperation is good, I hope India is also actively building its own resilient supply chains and not becoming overly dependent on any single bloc. Our 'Make in India' and PLI schemes are crucial in this regard.
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Rohit P
The focus on critical minerals is key. India has vast resources but needs technology and investment. Perhaps we can learn from their SCPA model to forge similar partnerships, maybe with Australia or even with Japan and Korea separately. Jai Hind!
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Sarah B
As someone working in manufacturing, supply chain disruptions have been a nightmare. Any move towards more cooperation and stability is welcome news globally. Hope it leads to more predictable trade flows.
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Vikram M
Good to see diplomacy working. Their historical tensions make this agreement even more significant. It shows that when there's a common economic goal, nations can move forward. India should take note and strengthen its own economic diplomacy.
K
Karthik V
The LNG swap arrangement is smart, especially with Middle East volatility. Energy security is national security. India must also diversify its energy partnerships and storage capabilities. Our strategic reserves need constant upgrading.
M
Michael C
While this is a bilateral agreement, its effects will be multilateral. It will likely put pressure on China's dominance in certain supply chains. A more balanced

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