EEC BLOCKS ACTION ON JAPANESE COMPLAINT IN CODE COMMITTEE.

Oct 27, 1988

EEC BLOCKS ACTION ON JAPANESE COMPLAINT IN CODE COMMITTEE.

GENEVA, OCTOBER 25 (IFDA)—Japan’s efforts to set in motion the conciliation and dispute settlement procedures of the Tokyo round anti-dumping code in regard to its dispute with the EEC over the so-called "screw-driver plants" were blocked tuesday by the European community.

The EEC has imposed heavy anti-dumping duties on a range of products assembled from imported components in the EEC by Japanese owned or related enterprises.

The EEC characterises such plants as "screwdriver assembly" operations.

The EEC commission, on some products, terminated the antidumping duties, after the enterprises had given an undertaking touse 40 percent of parts of EC origin.

On the same issue, but in relation to the GATT articles, the EEC has agreed last week to have the matter referred to a GATT panel.

While Japan also invoked the provisions of the code and its self-contained procedures for conciliation and adjudication, the EEC refused this, arguing against the parallel track approach.

Japan however contended in the code committee that the EEC had not complied with the mandatory procedures required under the code, and thus it was entitled to invoke the code committee.

The EEC rejected this. But, Japan found strong support within the code committee from a number of participants including Canada, South Korea, and Singapore among others.