G/L/1240  
G/SG/N/12/JPN/4  
 
22 May 2018 
(18-3000) Page: 1/2 
Council for Trade in Goods  
Committee on Safeguards  Original: English  
 
IMMEDIATE NOTIFICATI ON UNDE R ARTICLE 12.5 OF TH E AGREEMENT  
ON SAFEGUARDS TO TH E COUNCIL FOR TRADE IN GOODS OF  
PROPOSED SUSP ENSION OF CONCESSION S AND OTHER  
OBLIGATIONS  REFERRED TO IN PARAGRAPH 2  
OF ARTICLE 8 OF THE AGREEMENT  
ON SAFEGUARDS  
JAPAN 
The following communication, dated 18 May  2018, is being circulated at the reque st of the 
Delegation of Japan . 
 
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In accordance with the agreed format for notifications (G/SG/1, 1 July 1996; amended 19 October 
2009, G/SG/1/Rev.1, G/SG/N/6/Re v.1, G/SG/89), Japan notifies the Council for Trade in Goods of 
the proposed suspension of concessions and other obligations referred to in paragraph 2 of 
Article  8 of the Agreement on Safeguards , in respect of which it reserves its rights.  
 
1. Which Memb er is proposing suspension of concessions and other obligations referred 
to in Article 8.2  
 
Japan.  
 
2. Specify the measure, the product subject to the measure, the WTO document that 
notified the safeguard measure, and the Member imposing the measure in rel ation to 
which the Member is proposing suspension of concessions and other obligations referred 
to in Article 8.2  
 
The measure s in question are tariff increases and other import adjustment measures imposed by 
the United States on the imports of steel and alumin ium from  certain WTO members including  
Japan under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. § 1862) 
("Section 232 ").  
 
These measures have been applied by the United States since 23 March 2018.  
 
Although the United States  has not notified these measures under the Agreement on Safeguards, 
Japan notes that these measures appear to have the characteristics of the measure s to which 
Article XIX of GATT 1994 and the Agreement on Safeguards are applicable.  
 
3. Describe the propo sed suspension of concessions and other obligations referred to in 
Article 8.2 and the proposed date from which it will come into effect  
The proposed suspension of concessions referred to in Article 8.2  of the Agreement on Safeguards  
will take the form of an equivalent increase in duties on selected products originating in the United 
States. In this respect, Japan notes that application by the United States of the increased duty of 
25 per cent on the imports of steel from Japan would result in $414,820,277 of duty collection by 
the United States with regard to Japanese exports (based on the export value in 2017 
($1,659,281,106), as may need to be updated with most recent export data), and the increased 
duty of 10 per cent on the imports of alumin ium from Jap an would result in $2 5,122,737 of duty G/L/1240 • G/SG/N/12/JPN/4  
 
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  collection by the United States with regard to Japanese exports (based on the export value in 2017 
($251,227,373), as may need to be updated with most recent export data). Details of the said 
suspension of concessions  based on an equivalent increase in duties based on the most recent 
export data, including the proposed date from which it will come into effect,  will be  provided to the 
Council for Trade in Goods before the suspension of concessions is actually applied.  
The suspension will continue to apply until the United States ' measure s are lifted.  
 
Japan notes that its right of suspension under Articles 8.2 and 12.5 of the Agreement on 
Safeguards will  not be exercised for the first three years that the measures are in effect, provided 
that the measures have been taken as a result of an absolute increase in imports and that such 
measures conform to the provisions of the Agreement on Safeguards. The Unit ed States has not 
notified the relevant data concerning the alleged increase in imports of the products covered by 
the measures. However, based on available statistical information, Japan estimates that, among 
the aforementioned duty collection by the Unit ed States, at least $264,354,296 of duty collection 
is with regard to products the imports of which have not increased in absolute terms. With respect 
to this amount, therefore, Japan considers that it is free to suspend substantially equivalent 
concession s immediately upon the expiration of the 30 days from the day on which the written 
notice of such suspension is received by the Council for Trade in Goods, as per Article 8.2 of the 
Agreement on Safeguards. Japan reserves its rights accordingly.  
 
Without prejudice to the effective exercise of its right to suspend substantially equivalent 
concessions or other obligations referred to in Article 8.2  of the Agreement on Safeguards , and to 
the extent that the measures have been taken as a result of an absolute increase in imports, 
Japan also reserves its right to implement the proposed suspension not earlier than 
23 March  2021, or the fifth day following the date of a decision from the WTO Dispute Settlement 
Body that the measures imposed by the United States are not in conformity with the 
WTO Agreement, whichever is earlier.  
 
 
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