JAPAN – IMPORT QUOTAS ON DRIED LAVER AND SEASONED LAVER
Document: Request for the Establishment of a Panel by Korea
Date: 7 February 2005
Document codes: WT/DS323/2
Complainant: South Korea
Respondent: Japan
Third parties: China, EU, New Zealand, U.S.
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. XI  GATT 1994Art. 4.2  AgricultureArt. X:3(a)  GATT 1994Art. 1.2, 1.6  Import Licensing

JAPAN – IMPORT QUOTAS ON DRIED LAVER AND SEASONED LAVER

Request for the Establishment of a Panel by Korea

 The following communication, dated 4 February 2005, from the delegation of Korea to the
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

 On 1 December 2004, the Government of the Re public of Korea requested consultations with
the Government of Japan pursuant to Article 4 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes (DSU), Artic le XXIII:1 of the General Agreement on Tariffs
and Trade 1994 (GATT 1994), Article 19 of the Agre ement on Agriculture, and Article 6 of the
Agreement on Import Licensing Procedures (Licensing Agreement) regarding Japan's import quotas
on dried laver (1212.20-1-(1)) and seasoned laver ( 2106.90-2-(2)-E-(b)). Korea and Japan held
consultations on 23 December 2004 and 21 January 2005, but these consultations have failed to
resolve the dispute.

 Japan's import restrictions on dried laver a nd seasoned laver pre-date Japan's accession to the
GATT almost 50 years ago. The Republic of Korea believes that these measures are inconsistent with
Japan's obligations under Article XI of the GATT 1994, as the quotas constitute restrictions other than
duties, taxes or other charges on the importation of laver. Korea also believes that these measures are
inconsistent with Article 4.2 of the Agre ement on Agriculture, as the quotas constitute the
maintenance of measures of the kind which have been required to be converted into ordinary customs
duties.

 Korea also believes that the manner of administration of these quotas is partial and
unreasonable, and thus is inconsistent with Japan 's obligations under Article X:3(a) of the GATT
1994, as significant portions of quotas that consid erably restrict market access for imports are
allocated to associations of domestic producers.

 Finally, these quotas are also inconsistent with Articles 1.2 of the Licensing Agreement,
because they are import licensing regimes that are not in conformity with the provisions of the
GATT 1994 cited above, and are not applied with a view to preventing trade distortions. Specifically,
given the special characteristics of laver productio n, Japan's annual announcement of allocations
under the quotas is issued at a time that preven ts Korean producers from taking advantage of the
limited market access allowed under the quota regime . Similarly, these quotas are inconsistent with
Article 1.6 of the Licensing Agreement, because th e application procedures and periods are not
reasonable.

 Accordingly, Korea respectfu lly asks the Dispute Settlement Body to establish a panel
pursuant to Article 6 of the DSU, Article XXIII:2 of the GATT 1994, Article 19 of the Agreement on
Agriculture, and Article 6 of the Licensing Agreement, with standard terms of reference as set out in
Article 7.1 of the DSU. Korea further requests th at this request be placed on the agenda for the
meeting of the Dispute Settlement Body on 17 February 2005.