Statement by the Press Secretary/Director-General for Press and Public Relations, Ministry of Foreign Affairs, on the WTO Arbitration on Japan's Retaliatory Measures against the U.S. Byrd Amendment

September 1, 2004

On August 31 (local time: 4p.m.) in Geneva, the WTO (World Trade Organization) arbitrators, who had examined the permissible scale of retaliatory measures whose approval Japan and seven other WTO Members had requested against the U.S. Byrd Amendment, announced their decision. Japan appreciates the decision because it gave the green light for Japan to take retaliatory measures of up to $78 million (about 8,600 million yen) per annum in accordance with the amount of payments disbursed by the U.S. Government to domestic companies under the Amendment in FY2002.
This arbitral decision clearly indicates that any WTO Member who fails to bring its measures into conformity with WTO rules within a given period is not exempt from these rules and inevitably comes under substantive sanctions. Japan recognizes that this decision was significant in that it demonstrates the effectiveness and reliability of WTO's dispute-settlement system.
Now this ruling has been given, Japan may exercise its retaliatory rights in accordance with the decision and the requirements of the WTO rules at any time deemed appropriate. In case the U.S. does not repeal the Byrd Amendment, Japan, in cooperation with the co-complainants, will again lodge with the WTO an application for retaliatory measures in accordance with the decision as early as this autumn. This application will be automatically approved, pursuant to the WTO Agreement, and after that the retaliatory measures will be taken at any time.
Japan strongly hopes that the U.S. Congress will accept this arbitration ruling sincerely and repeal he Byrd Amendment as early as possible in response to the WTO recommendation.

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