. /.  WORLD TRADE  
ORGANIZATION  WT/GC/W/580 
23 November 2007 
 (07-5171) 
General Council 
18-19 December 2007 Original:   English 
 
 
 
REVIEW OF THE EXEMPTION PROVIDED 
UNDER PARAGRAPH 3 OF GATT 1994 
 
Questionnaire to the United States from Japan  
 
 
 The following communication, dated 21 November 2007, is being circulated at the request of 
the Delegation of Japan.  
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  The exemption stipulated in paragraph 3 is a serious deviation from the fundamental principles of the GATT, especially Part II, Article  3 (National Treatment on Internal Taxation and 
Regulation) and Article 11 (General Elimination of  Quantitative Restrictions).  The exemption was 
established for only one Member due to its internal political reasons  and has been maintained for 
years.  The continuation of this exemption damag es the consistency of WTO rules as a whole.  We 
believe that it is necessary to have a serious discussi on with a view to correcting the present situation.  
  Japan appreciates the report presented by the US  pursuant to GATT paragraph 3(c), which is 
contained in WT/L/680. 
  Based on this information, as well as the results  of previous reviews, Japan wishes to further 
contribute to the review process at this time through raising relevant questions and comments to the 
US.  Japan would like to ask the US to respond to the following points in the form of a WTO official 
document within a reasonable amount of time so that  all Members can share the explanation for their 
consideration before the review at the General Council in December 2007.  Japan reserves its right to 
further present additional questions and clarificati ons on the responses to be provided by the US. 
 Question 1
 
 
 Japan would like to point out that some data contained in the tables regarding US shipyard 
deliveries from 2001 to 2005 on pages 2 and 3 of th e report (WT/L/680) seem to be inconsistent, 
although these tables are based on the same sources (see the following examples).  The relationship 
between the data of the two tables should be clar ified and corrected data should be provided if 
necessary. 
 
 For example:  (1) With regard to merchant vessels of US ship yard deliveries, the figure "407,795" total gross 
tonnage (GT) from 2001 to 2005 in the table on page 2 seems to be inconsistent with the figure 
"266,607" total GT by 5 year average in the table on page 3.  
 WT/GC/W/580 
Page 2  
 
  (2) With regard to the US shipyard orderbook,  the figure "640" average GT from 2001 to 2005 on 
page 2 seems to be inconsistent with the fi gure "3599" average GT per year on page 3. 
 Question 2
 
 
 The US puts notes in the report that "Cance lled or delayed vessel orders may not be 
accurately reflected in the report".  However, we  believe that the US should provide relevant 
information that accurately reflects the current circum stances of US shipyards.  Therefore, we request 
the US to provide more accurate information based on sources other than Lloyd's Maritime 
Information Services if the Lloyd's information is insufficient.   
 
Question 3  
  According to the US's response, it does not ha ve a specific quantitative threshold or criteria 
for shipbuilding or maintenance capacity for nationa l security.  Without such threshold or criteria, 
how can the US assess its shipbuilding or maintenan ce capacity?  We are concerned that lack of the 
threshold and criteria would allow the US to make arbitrary decisions and that the exemption would 
be permitted forever.   Question 4
 
 
 "Pontoon" is listed in the repor t. According to the US's response, Pontoon is considered a 
vessel and registered in US Coast Guard vessel documen tation.  Since it is used at a fixed point, we 
believe that Pontoon should not be  covered by "vessels in commercial applications between points in 
national waters or the waters of an exclusive econom ic zone" in the context of GATT paragraph 3(a).  
Could the US elaborate on this? 
 
Question 5  
  According to the US's response, the additi onal information on the use, sale, lease and the 
repairing of relevant vessels stipulated in paragra ph 3(c) of GATT 1994 is not available.  We request 
the US to provide this information shortly, since the US has an obligation to submit this annually 
pursuant to the paragraph.  
 
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