By Kim Hwaya

Bloomberg News on July 22 blasted Japan's trade restrictions on Korea in an editorial titled "Abe's Trade War With South Korea Is Hopeless."

"Victory in Japan's upper house elections over the weekend gives Prime Minister Shinzo Abe the political clout to do many things. The first should be to extricate Japan from the foolish trade war he's launched against neighboring South Korea," the piece said.

On Tokyo's export restrictions, the editorial said, "Japanese officials have claimed that the measure was intended to prevent high-tech exports from being illegally transferred to North Korea. But the move was clearly intended as retaliation for recent South Korean court decisions awarding damages to laborers forced to work for Japanese companies during the colonial period."

"Abe is abusing trade measures to resolve a political dispute," it added. "It's especially hypocritical for a leader who had, till now, won well-deserved plaudits for strengthening the global trading order."

The damage to Japan from this trade war could go beyond Abe's reputation, Bloomberg warned, saying, "South Korea will no doubt seek to retaliate if Japan proceeds with its 'white list' threat; boycotts of Japanese goods are already spreading."

The editorial said Japan also risked its ties with the U.S. through this row. "The spat could needlessly complicate relations with the Trump administration, even as Abe seeks to finalize a limited trade agreement with the U.S.," it said.

"Having started this fight, and having safely survived the elections, Abe should make the first move."

Bloomberg also urged reconciliation between Seoul and Tokyo, saying, "Both sides should commit to exploring more creative solutions to their lingering historical disputes."

fayastory@korea.kr