12:17 PM Oct 16, 1996

KODAK-FUJI DISPUTE GOES TO PANEL

Geneva 16 Oct (TWN) -- The Dispute Settlement Body of the WTO referred Wednesday to a panel the complaint brought by the United States against Japan in what has come to be known as the Kodak-Fuji dispute, and Kodak's efforts to garner a higher share of the Japanese market in photo-film, blaming Fuji practices and Japanese government measures, regulations and administrative guidance.

While the dispute that went to the panel is in terms of alleged violation by Japan of its GATT obligations, a dispute over its alleged violation of the GATS obligation is still in the 'consultation stage'.

The US has also sought separately consultations, in terms of a decision of 1960s of the GATT, for consultations on restrictive business practices of Fuji in Japan. Japan has come up with its request for similar consultations in respect of the RBPs of Kodak in the US.

Japan however objected today to the US setting out of its complaint of Japanese violations of its GATT obligations, and said that there was a reference to an administrative guidance of the 1960s, and Japan was not even aware of any such guidance issued.

The two parties have about 20 days to agree on the terms of reference of the panel and choice of panellists.

At the DSB, the EU expressed its interest in the dispute.

Another dispute that went to a panel was a Canadian complaint over the EU ban on hormone-treated beef. A similar US complaint is already before a panel, but given the time already elapsed, the Canadian complaint may or may not end before the same panel and within the same time-frame.

A Canadian complaint against Brazil over subsidies to aircraft, and a US complaint against Pakistan over failure to provide intellectual property protection (under the TRIPs pipeline protection) which had been both been set for a panel establishment were withdrawn.

Both complainants said they were pursuing bilateral consultations to find a solution, but reserved their right to come back.

The EU complaint against the US over the Helms Burton law relating to trade and investments in Cuba came before for a panel request, but being the first time, the US able to block it.

The EU served notice that it would be brought up at the next meeting on 20 November.

The US explained the circumstances in which the law had been enacted (the Cuban shooting down of US planes flown by anti-Castro Cubans), but regretted that the EU had chosen to bring up the issue in the trade forum. The EU had earlier explained that the extra-territoriality of the US action was of concern to it.

Australia, Bolivia on behalf of the Rio group of countries, Canada, Mexico, India and Switzerland expressed their concern over the US law. Cuba also supported the EU complaint, making clear that it would deal with the political issues raised by the US would be taken in another forum.

Under any other business, the US said that it had been able to settle its complaint relating to the TRIPs implementation by Portugal, and that the issue had been settled in consultations as notified by the two countries in the notification to the DSB.

India referred to a secretariat paper about notifications by countries on agreed solutions in dispute settlement cases and said it had some reservations over the secretariat draft and would make a more detailed statement, after discussions with the secretariat after 7 November (till when everyone is too busy with preparations for Singapore).

Thailand notified the DSB about the joint complaint by Thailand, India, Pakistan and Malaysia over the US trade restrictions on shrimp imports, and about the consultations they had sought with the United States.