Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

Study on the WTO Disputes over the Korean Shipbuilding Industry in Relation to Export Credit

수출신용과 관련하여 우리나라 조선산업에 대한 WTO 무역분쟁 연구

  • Received : 2019.01.17
  • Accepted : 2019.02.24
  • Published : 2019.02.28
Download PDF
⟨ Previous Next ⟩

Abstract

This paper draws implications on the ship finance of the Korean ECAs for shipbuilding industry from the perspective of WTO ASCM through studying the trade disputes on export credits. In consideration of the underwriting practice on the case-by-case basis, the ECAs' law regimes and their ship finance programs as such would be judged not conferring a benefit. The ship finance of international commercial banks could be treated as a market benchmark for the purpose of determining the existence of benefit in the ECA ship finance. The ECAs share securities with international commercial banks for the same exposure to the risks in a syndicate. Therefore, WTO DSB would rule that the ECA ship finance confers no benefit for individual transactions. The items (j) and (k-1) of ASCM Annex I are not allowed to interpret a contrario.

Keywords

References

  1. Alexopoulos, I. and N. Stratis (2016), "Structured Finance in Shipping". In M. G. Kavussanos and I. D. Visvikis (Eds.), The International Handbook of Shipping Finance(Theory and Practice), London: Springer Nature, 191-211.
  2. Back, Y. M. (2015), "A Study on the Financing Support Policy for Small-medium Sized Liner Shipping Firms", Korea Trade Review, 40(1), 133-160.
  3. Bae, Y. J.(2018), "A Study on the Protection System of Lenders in Ship Financing, The Journal of the Korean Maritime Law Association, 40(1), 187-221.
  4. Brun, L. and S. Frederick (2017), Korea and the Shipbuilding Global Value Chain Korea in Global Value Chains: Pathways for Industrial Transformation, Dunham, NC: Duke GVC Center.
  5. Bruno, L. and S. Tenold (2011), "The Basis for South Korea's Ascent in the Shipbuilding Industry", The Mariner's Mirror, 97(3), 201-217. https://doi.org/10.1080/00253359.2011.10708948
  6. Burgers, J. (2014), "Brazil/United States Dispute over Export Credit Guarantees", Transnational Law and Contemporary Problems, 23(2), 425-452.
  7. Clarksons Research (2004-2018), World Shipyard Monitor (Log-in Online Database). Available from https://www.crsl.com/acatalog/world-shipyard-monitor.html
  8. Clarksons Research (2018), Shipping Intelligence Network Timeseries (Log-in Online Database). Available from https://sin.clarksons.net/
  9. Coppens, D. (2009), "How Much Credit for Export Credit Support under the SCM Agreement", Journal of International Economic Law, 12(1), 63-113. https://doi.org/10.1093/jiel/jgn041
  10. Crichton, M. (2016, July 25), "Frontline Closes $328m CHEXIM Loan for Newbuilds", Trade Finance. Available from https://tradefinanceanalytics.com/news?page=150
  11. Ecorys (2009), Study on Competitiveness of the European Shipbuilding Industry (Webpage). Available from http://ec.europa.eu/enterprise/sectors/maritime/files/fn97616_ecorys_final_repo
  12. Evensen, P. (2016, June 21), The Future of Shipping and Shipping Finance/Interviewer: N. Lying-Olsen, New York, NY: Marine Money Week.
  13. JBIC (2015), JBIC Annual Report 2015 (JBIC Database), Tokyo: 95.
  14. JCR (2015), Aviation Finance, Japan Credit Rating Agency (Webpage). Available from https://www.jcr.co.jp/en/pdf/dm28/Aviation_Finance20150601.pdf
  15. Jeong, S. C. (2012), "A Study on the Security System and Collect Loan of Ship Financing in Law", The Journal of the Korean Maritime Law Association, 34(2), 201-234.
  16. Jiang, L., E. Bastiansen and S. P. Strandenes (2013), "The International Competitiveness of China's Shipbuilding Industry", Transportation Research Part E: Logistics and Transportation Review, 60, 39-48. https://doi.org/10.1016/j.tre.2013.10.001
  17. K-SURE (2017), Understanding Trade Laws in Relation to Official Export Credit, Seoul: Korea Trade Insurance Corporation.
  18. Kalouptsidi, M.(2018), "Detection and Impact of Industrial Subsidies: The Case of Chinese Shipbuilding", Review of Economic Studies, 85(2), 1111-1158. https://doi.org/10.1093/restud/rdx050
  19. Kim, D. S. (2005), "An Analysis of Certain Issues Regarding Export Subsidies and Restructuring Subsidies in the Context of Korea -Ec Wto Disputes on Shipbuilding Subsidies (DS 273)", Korean Forum on International Trade and Business Law, 14(1), 127-153.
  20. Koenig, P. C. (2016), "On the Prospects for International Commercial Shipbuilding Competiveness in Developed Countries", Journal of Ship Production and Design, 32(2), 124-129. https://doi.org/10.5957/jspd.2016.32.2.124
  21. Kum, T. H. (2009), "The WTO Case against U.S.- Subsidies on Upland Cotton", Administrative Law Journal, 25, 411-433.
  22. Lee, J. (2010), "Principles of International Law as Discussed in Recent WTO Dispute Settlement Proceedings", The Korean Journal of International Law, 55(4), 183-211.
  23. Lee, K. R. (2017), "A Comparative Study on Shipping Finance in Korea for Availability Expansion", The Journal of Shipping and Logistics, 96, 599-622.
  24. Lee, K. R. and M. S. Pak (2015), "A Study on Decision Making Factors in Shipping Finance of Korean Commercial Banks", The Journal of Maritime Business, 31, 93-119.
  25. Lee, K. R. and M. S. Pak (2018), "Multi-criteria Analysis of Decision-making by International Commercial Banks for Providing Shipping Loans", Maritime Policy and Management, 45(7), 850-862. https://doi.org/10.1080/03088839.2018.1448476
  26. Lew, J. (2018, November 1), "Retrofit Financing by K-SURE for Scrubber", Paper presented at the 12th Korea Ship Finance Forum, Busan, Korea.
  27. Li, X. (2015, March 4), "ECA's Role in Shipping Finance", Paper Presented at the Gulf Ship Finance Forum, Dubai, UAE.
  28. MARAD (2019), Federal Ship Financing Program (Title xi) (Webpage). Available from https://www.maritime.dot.gov/grants/title-xi/federal-ship-financing-program-title-xi
  29. Nielsen, A. G.(2018, November 1), "Norwegian ECA Finance", Paper presented at the Korea Ship Finance Forum, Busan, Korea.
  30. OECD (2007), Report on Ship Financing, Working Party on Shipbuilding, Paris.
  31. OECD (2017), Imbalances in the Shipbuilding Industry and Assessment of Policy Responses, Working Party on Shipbuilding, C/WP6(2016)6/FINAL (Webpage). Available from https://www.oecd.org/industry/ind/Imbalances_Shipbuilding_Industry.pdf
  32. OECD (2018), Export Credits Notifications 1998-2018 (Webpage). Available from https://community.oecd.org/streamPage.jspa?cwsDb=Xparticipants%20CWSandcommunity=2234andlink=/1252943/1308475/html/statistics-databases.htm
  33. OECD (2019), Arrangement on Officially Supported Export Credits (Webpage). Available from http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?doclanguage=enandcote=tad/pg(2019)
  34. Paleokrassas, G. (2016), "Debt Financing in Shipping". In M. G. Kavussanos and I. D. Visvikis (Eds.), The International Handbook of Shipping Finance (Theory and Practice), London: Springer Nature, 125-146.
  35. Park, Y. G. (2016), "What Really Happened in the Beginning of Korean Modern Shipbuilding Industry in 1971?", Journal of Koreanology, 61, 431-462. https://doi.org/10.15299/jk.2016.11.61.431
  36. Ray, J. E. (1995), Managing Official Export Credits: the Quest for a Global Regime, Washington DC: Institute for International Economics.
  37. Sea Europe (2018), "Sea Europe Shipbuilding Market Monitoring", Shipyard's and Maritime Equipment Association, 44. Available from https://maritimetechnology.nl/media/SEA-MM-REPORT-No-44-2017-FY_-FINAL-140318.pdf
  38. Shin, J. and Y. M. Lim (2013), "An Empirical Model of Changing Global Competition in the Shipbuilding Industry", Maritime Policy and Management, 41(6), 515-527. https://doi.org/10.1080/03088839.2013.856522
  39. Son, I. S. and S. H. Kim (2018), "The Relationship between Capital Composition and Market Share in the Global Shipping Market", Korea Trade Review, 43(6), 51-70.
  40. Stopford, M. (2009a, January 20), Challenges for Global Shipping (Webpage). Available from http://www.eskema.eu/DownloadFile.aspx?tableName=tblSubjectArticles&field=PDF%20Filename&idField=subjectArticleID&id=271
  41. Stopford, M. (2009b), Maritime Economics (3rd ed.), New York, NY: Routledge.
  42. Torquato, J. (2016, March 7), "Gener8 Maritime Signs $256.9m Shipping Loan", Trade Finance.
  43. UNCTAD (2004-2018), Review of Maritime Transport, Geneva, Switzerland: United Nations Publication.
  44. US Congress (1997), Congressional Record (Senate) -105th Congress, 1st Session, Jan 21, 141-143.
  45. Weltman, G. (2018, April/May), "Still a Slog", Marine Money, 34(3), 1-9.
  46. WTO (1999a), Brazil - Export Financing Programme for Aircraft (Report of the Appellate Body) (WT/DS46/AB/R), Geneva, Switzerland.
  47. WTO (1999b), Canada - Measures Affecting the Export of Civilian Aircraft (Report of the Panel) (WT/DS70/R), Geneva, Switzerland.
  48. WTO (2000a), Brazil - Export Financing Programme for Aircraft Recourse by Canada to Article 21.5 of the DSU (WT/DS46/AB/RW), Geneva, Switzerland.
  49. WTO (2000b), Canada - Measures Affecting the Export of Civilian Aircraft (Recourse by Brazil to Article 21.5 of the DSU, Report of the Panel) (WT/DS70/RW), Geneva, Switzerland.
  50. WTO (2002a), Canada - Export Credits and Loan Guarantees for Regional Aircraft (Report of the Panel) (WT/DS222/R), Geneva, Switzerland.
  51. WTO (2002b), Request for Consultations by the European Communities : Korea - Measures Affecting Trade in Commercial Vessels (EC) (WT/DS273/1), Geneva, Switzerland.
  52. WTO (2004), United States - Subsidies on Upland Cotton (Report of the Panel) (WT/DS267/R), Geneva, Switzerland.
  53. WTO (2005a), European Communities: Countervailing Measures on Dynamic Random Access Memory Chips from Korea (Report of the Panel) (WT/DS299/R), Geneva, Switzerland.
  54. WTO (2005b), Korea - Measures Affecting Trade in Commercial Vessels (Report of the Panel) (WT/DS273/R), Geneva, Switzerland.
  55. WTO (2018), Request for Consultations by Japan: Korea - Measures Affecting Trade in Commercial Vessels (Japan) (WT/DS571/1), Geneva, Switzerland.
  56. Yeo, H. J.(2018), "Target Leverage and Determinants of Leverage in Shipping Companies", Korea Trade Review, 43(2), 181-204. https://doi.org/10.22659/KTRA.2018.43.2.181
  57. Yoo, K. H. (2013), "New Challenges for International Subsidy Rule: Introducing Elaborate Definition of Relevant Market", The Korean Journal of International Law, 58(2), 243-288.
  58. Zhang, Q. (2017, May 9-10), "Ship Finance from an ECA Perspective", Paper Presented at the China Ship Finance and Offshore Summit, Shanghai, China.