Dispute Settlement Body 30 July 2004

The DSB establishes compliance panel to examine Japan's measures concerning apples and refers US request for sanctions to arbitration

At the DSB meeting on 30 July 2004, the US requested the establishment of a compliance panel to examine the WTO-consistency of the newly revised phytosanitary measures. Simultaneously, the US requested the authorization to suspend concessions.

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This summary has been prepared by the WTO Secretariat’s Information and Media Relations Division to help public understanding about developments in WTO disputes. It is not a legal interpretation of the issues, and it is not intended as a complete account of the issues. These can be found in the reports themselves and in the minutes of the Dispute Settlement Body’s meetings.

DS245: Japan — measures affecting the importation of apples

At this DSB meeting, the US requested (WT/DS245/11) a compliance panel to be established. The US considered that Japan had failed to bring the new phytosanitary measures on imported US apples into compliance with its obligations under the SPS Agreement after the expiration of the reasonable period of time (30 June 2004). Japan said it was disappointed that the US did not recognize the amended measures taken by Japan as fully complying with the DSB rulings. However, Japan recognized US' right to ask for a compliance panel. Pursuant to the agreement between the two parties on procedures (WT/DS245/10), the panel was established at this DSB meeting.

Simultaneously, the US requested authorization to suspend concessions at a level of US$ 143.4 million on an annual basis (WT/DS245/12). The US said that this level of suspension is equivalent to the level of nullification accruing to the US as a consequence of Japan's failure to bring its phytosanitary measures concerning apples into compliance by 30 June 2004. Japan objected to this level and requested for an arbitration on the level of retaliation in a letter dated 29 July 2004 (WT/DS245/13). Furthermore, the two parties asked, once the arbitrator is constituted, for the suspension of his arbitration work until the adoption of compliance panel report.


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