Japan is blaming South Korea for the collapse of talks to draw up an international agreement on shipbuilding competition at the Organisation for Economic Co-operation and Development (OECD).

The government-level talks were aimed at creating a legally binding agreement on a dispute resolution process which would address excess capacity, low pricing and subsidies among OECD member states.

However, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) said the negotiations collapsed because South Korea would not accept the inclusion of subsidies and pricing in the agreement.