Japan urged South Korea on Tuesday to immediately remove its anti-dumping tariff on Japan-made stainless steel bars after a World Trade Organization dispute settlement panel decision said an extension of the protections would be a contravention of WTO rules.

In a report dated Monday, the panel said Japanese-made bars are priced higher than those made by South Korean companies, siding with the Japanese claim that imported products cause no damage to the domestic industry.

The report also pointed out that there is a "large volume" of Chinese products already on the market at a "low price."