U.S. Seeks WTO Authorization to Impose Sanctions Against Japan Over Apple Dispute
The Office of the U.S. Trade Representative (USTR) has issued a press release announcing that the U.S. has asked the World Trade Organization (WTO) Dispute Settlement Body (DSB) to review whether Japan has complied with earlier DSB recommendations and rulings against its restrictions on imported U.S. apples, as the U.S. does not believe Japan has complied with these recommendations and rulings in a reasonable period of time.
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U.S. Proposes to Impose Sanctions Totaling $143.4 Million Annually
In addition to asking the DSB to review Japan's compliance, the U.S. is seeking authorization to impose trade sanctions against Japan totaling $143.4 million on an annual basis, the approximate amount of annual harm to the U.S. economy caused by Japan's measure concerning imported U.S. apples. The U.S. may also opt to suspend obligations to Japan under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and the WTO Agriculture Agreement in order to achieve this annual value.
The U.S.' request for authorization to suspend trade concessions includes a list of potential HTS Chapters from which the U.S. could select specific products for increased duties. These HTS Chapters include: Chapters 1-24, 33, 35, 38, 41-46, and 50-52.
The USTR notes that under an agreement with Japan, the U.S. would not suspend trade concessions until an arbitrator has confirmed the level of trade harm suffered by the U.S. The USTR adds that, at this time, it is not publishing in the Federal Register a list of the specific products that may be subject to increased duties. However, at a later date it will publish, as appropriate, a Federal Register notice seeking public comment on a specific list of products.
(In December 2003, the WTO Dispute Settlement Body (DSB) adopted the panel and Appellate Body reports in this case, which concerns Japan's quarantine restrictions on the importation of U.S. apples to protect against the introduction of fire blight (Erwinia amylovora).
These reports found that Japan's restrictions on imported U.S. apples are scientifically unfounded and inconsistent SPS Agreement obligations. Moreover, the U.S. successfully argued that mature symptomless apples, the only apples exported, are not vectors for the fire blight bacteria.)
(See ITT's Online Archives or 06/17/02 news, 02061730, for BP summary of Japan's restrictions on imported U.S. apples.)
USTR Press Release (Press Release No. 2004-61, dated 07/19/04) available at http://www.ustr.gov/releases/2004/07/04-61.pdf
USTR List of Product Categories available at http://www.ustr.gov/releases/2004/07/04-61-table.pdf