Tokyo-Seoul trade spat adds uncertainty to global economy

Japan and the Republic of Korea, two major economies in Northeast Asia, are locked in a trade conflict. Just one month after the G20 Summit in Osaka, which laid emphasis on global economic development and free trade, the Japanese government announced the removal of the ROK from its "white list" that accords trading partners preferential exports treatment.

In a tit-for-tat, Seoul said on Monday it has decided to remove Tokyo from its own "white list", further straining the already faltering Japan-ROK relations.

In some sense, postwar Japan has always held dear free trade, which is critical to a country built upon trade. Japan and the ROK, both key allies of the United States in East Asia, have similar or the same security interests. Thus despite the frequent discords over history between the two neighbors, they have largely maintained close economic ties and cooperation.