9:15 AM Sep 27, 1995

PANEL NAMED IN DISPUTE AGAINST JAPAN...

Geneva 27 Sep (Chakravarthi Raghavan) - The Dispute Settlement Body (DSB) of the World Trade Organization agreed to set up a single panel to hear the complaints from the European Union, the United States and Canada against Japan over its taxes on alcoholic beverages..

All the complaints involved the charge that the taxation system in Japan discriminated between domestic liquor like shochu and imported liquors like whisky, cognac and white spirits.

A previous GATT panel had found against Japan in a similar complaint -- that shochu and vodka and other liquors are 'like products', entitled in all respect to like treatment and thus taxed alike.

Thereafter, Japan undertook a revision of its liquor tax system and made changes in 1989 and further in 1994.

But the three complainants argue that this is not enough and have sought further changes to end any discrimination.

Consultations between Japan and each of the parties having failed, they have sought establishment of a panel, to which Japan agreed and also for a single panel to hear all the cases together.

In other complaints, the request for a panel from Canada over the duties on imports of cereals, in particular the way the EU fixes a reference price, was held over to the next meeting.

The EU said that it needed further time to consider the Canadian request for a panel, and this being the first time the request came up before the DSB it was unable to join the consensus.

The US, which has also complaints against the EU system (and his holding consultations) supported Canada. Australia, Argentina and Uruguay expressed their own substantial interest in the dispute.

Under the DSU rules, the establishment of a panel is automatic, the next time the issue comes before the DSB.

The requests of Peru and Chile for naming a panel to into their complaints against the EU's "trade description of scallops" -- a description said to be discriminating between scallops of EU (French origin) and imported ones had also to be put off till the next meeting.

The EU had objected even to the items being on the DSB agenda on the ground that the stipulated time periods -- 60 days for consultations and thereafter ten days notice for the panel request to be brought on the DSB agenda had not been fulfilled.

But Peru and Chile countered by offering to amend the wording of their request -- from a request for panel, to a request for convening a special meeting of the DSB in 15 days to consider the request (as provided for under Art. VI of the DSU).

This was accepted, and the next meeting of the DSB was fixed for Oct 11, with the Peruvian and Chilean requests on the agenda.

A WTO panel has already been named in a similar dispute between Canada and France.

Earlier, the DSB Chair, Amb. D. Kenyon of Australia, who is the Chair of the selection committee to propose seven names for the Standing Appellate Body, reported "progress" in the consultations, but that more time was needed to get a consensus.

The subject had come up before the DSB in July last.

Kenyon reported Wednesday that "significant progress" had been made since then in resolving the 'outstanding problems' and that he had been 'encouraged' by this and that he believed "very soon" the selection committee would be in a position to make a recommendation for the DSB.

New Zealand Ambassador, Wade Armstrong, who is holding consultations on Rules of Conduct for panelists, Appellate body members and secretariat officials dealing with disputes, reported that he was almost near consensus on these and that a package of proposals would soon be put forward by him.

The WTO spokesman announced the appointment as head of the WTO's legal division, Mr. William Davey, Prof of Law, and specializing in trade law, at the University of Illinois in the US and of Ms. Delere Steger of Canada to head the Standing Appellate Body's secretariat.

The spokesman said that the two appointments had been made out of a list of candidates, but could not spell out how the candidacies were invited, whether by open advertisements or any other process. The DSB added a further list of 115 names of individuals, governmental or non-governmental, to be added to the roster of nongovernmental panelists established by the old GATT in Nov 1984.

Panelists for various panels are to be drawn from this list.

The 115 added today comprise, 17 from Australia, one from Belize, five from Brazil, four from Colombia, two from the Czech Republic, 37 from the EU member-states, one from Hong Kong, five from Israel, eight from Korea, two from Mauritius, five from New Zealand, three from Norway, two from the Philippines, one from Sri Lanka, 11 from Switzerland and 15 from the United States.