EU Agrees To WTO Action

European Union member governments agreed on Tuesday that the EU should launch World Trade Organization (WTO) action against South Korea unless Seoul changes the way it funds its shipbuilders within months.

The EU has accused South Korea of paying its shipbuilders illegal subsidies, which are threatening the existence of European competitors and it set a deadline of next May to get satisfaction from Seoul before triggering a WTO case.

It was reported that French Energy Secretary Christian Pierret, who chaired the meeting of EU industry and energy ministers, said they were sending a strong message to South Korea that it had just a few months to act before facing a WTO challenge.