[Federal Register Volume 62, Number 198 (Tuesday, October 14, 1997)]
[Notices]
[Pages 53378-53379]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27067]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. WTO/D-20]


WTO Dispute Settlement Proceeding Regarding Japanese Varietal 
Testing and Quarantine Requirements

AGENCY: Office of the United States Trade Representative.

ACTION: Notice; request for comments.

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SUMMARY: The Office of the United States Trade Representative (USTR) is 
providing notice that the United States has requested establishment of 
a dispute settlement panel under the Marrakesh Agreement Establishing 
the World Trade Organization (WTO), to examine Japan's prohibition on 
imports of certain agricultural products. Specifically, for each 
agricultural product for which Japan requires quarantine treatment, 
Japan prohibits the importation of each variety of that product until 
the quarantine treatment has been tested for that variety even though 
the treatment has proven effective with respect to other varieties of 
the same product. This redundant testing requirement has no apparent 
scientific basis but serves as a significant barrier to market access. 
In this dispute the United States alleges that these Japanese measures 
are inconsistent with the obligations of Japan under the Agreement on 
the Application of Sanitary and Phytosanitary Measures, the General 
Agreement on Tariffs and Trade 1994 (``GATT 1994''), and the Agreement 
on Agriculture. USTR also invites written comments from the public 
concerning the issues raised in the dispute.

DATES: Although USTR will accept any comments received during the 
course of the dispute settlement proceedings, comments should be 
submitted on or before November 10, 1997 to be assured of timely 
consideration by USTR in preparing its first written submission to the 
panel.

ADDRESSES: Comments may be submitted by Ileana Falticeni, Litigation 
Assistant, Office of Monitoring and Enforcement, Room 501, Attn: Japan 
Fruit Quarantine Dispute, Office of the U.S. Trade Representative, 600 
17th Street, N.W., Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: Daniel Brinza, Senior Advisor and 
Special Counsel for Natural Resources, (202) 395-7305, Audrae Erickson, 
Office of Agricultural Affairs, (202) 395-6127, or Elizabeth Hyman, 
Office of the General Counsel, (202) 395-3150.

SUPPLEMENTARY INFORMATION: Pursuant to section 127(b)(1) of the Uruguay 
Round Agreements Act (URAA) (19 U.S.C. 3537(b)(1)), the USTR is 
providing notice that on October 3, 1997, the United States requested 
the establishment of a WTO dispute settlement panel to examine whether 
the import prohibition on agricultural products, in particular the 
varietal testing requirements, maintained by Japan are inconsistent 
with Japan's obligations under the Agreement on the Application of 
Sanitary and Phytosanitary Measures, the GATT 1994, and the Agreement 
on Agriculture. The WTO Dispute Settlement Body is likely to establish 
the panel no later than mid-November, 1997. Under normal circumstances, 
the panel, which will hold its meetings in Geneva, Switzerland, would 
be expected to issue a report detailing its findings and 
recommendations within nine months after it is established.

Major Issues Raised by the United States and Legal Basis of Complaint

    For each agricultural product for which Japan requires quarantine 
treatment, Japan prohibits the importation of each variety of that 
product until the quarantine treatment has been tested for that 
variety, even though the treatment has proven effective with respect to 
other varieties of the same product. The relevant provisions of 
Japanese laws include the Plant Protection Law (Law No. 151) enacted 
May 4, 1950, as amended, and the Plant Protection Law Enforcement 
Regulation (Ministry of Agriculture, Forestry and Fisheries Ordinance 
No. 73) of June 30, 1950, as amended.
    For example, after years of effort by the United States, in January 
1995 Japan agreed to permit imports of U.S. Red Delicious and Golden 
Delicious apples based on Japan's determination that treatment of fruit 
from inspected orchards both with methyl bromide fumigation and a cold 
storage treatment would be effective against codling moth, a plant 
pest. However, Japan has refused

[[Page 53379]]

to allow other varieties of apples, such as Gala, Fuji, Braeburn, 
Jonagold and Granny Smith, to be imported into Japan unless lengthy and 
expensive tests are performed on each variety to prove the efficacy of 
the same methyl bromide/cold storage treatment at killing codling 
moths. There is no scientific basis for distinguishing between 
different varieties of fruit in this respect.
    The USTR believes that these measures are inconsistent with the 
obligations of Japan under several provisions of the WTO Agreements, 
including Articles 2, 3, 4, 5, 7 and 8 of the Agreement on the 
Application of Sanitary and Phytosanitary Measures; Article XI of the 
General Agreement on Tariffs and Trade 1994; and Article 4 of the 
Agreement on Agriculture.

Public Comment: Requirements for Submissions

    Interested persons are invited to submit written comments 
concerning the issues raised in the dispute. Comments must be in 
English and provided in fifteen copies. A person requesting that 
information contained in a comment submitted by that person be treated 
as confidential business information must certify that such information 
is business confidential and would not customarily be released to the 
public by the commenter. Confidential business information must be 
clearly marked ``BUSINESS CONFIDENTIAL'' in a contrasting color ink at 
the top of each page of each copy.
    Information or advice contained in a comment submitted, other than 
business confidential information, may be determined by USTR to be 
confidential in accordance with section 135(g)(2) of the Trade Act of 
1974 (19 U.S.C. 2155(g)(2)). If the submitter believes that information 
or advice may qualify as such, the submitter--
    (1) Must so designate that information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
in a contrasting color ink at the top of each page of each copy; and
    (3) Is encouraged to provide a non-confidential summary of the 
information or advice.
    Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), USTR 
will maintain a file on this dispute settlement proceeding, accessible 
to the public, in the USTR Reading Room: Room 101, Office of the United 
States Trade Representative, 600 17th Street, N.W., Washington, DC 
20508. The public file will include a listing of any comments received 
by USTR from the public with respect to the proceeding; the U.S. 
submissions to the panel in the proceeding; the submissions, or non-
confidential summaries of submissions, to the panel received from other 
participants in the dispute, as well as the report of the dispute 
settlement panel and, if applicable, the report of the Appellate Body. 
An appointment to review the public file (Docket WTO/D-20, ``U.S.-Japan 
Fruit Quarantine Dispute'') may be made by calling Brenda Webb, (202) 
395-6186. The USTR Reading Room is open to the public from 9:30 a.m. to 
12 noon and 1 p.m. to 4 p.m., Monday through Friday.
A. Jane Bradley,
Assistant U.S. Trade Representative for Monitoring and Enforcement.
[FR Doc. 97-27067 Filed 10-10-97; 8:45 am]
BILLING CODE 3190-01-M