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| Horticultural & Tropical Products Division | Return to the H&TP Home Page |
May 17, 2002
U.S. Requests WTO Dispute Settlement Panel to Review Japan’s Import Restrictions on Apples.
On May 7, the United States
formally requested the WTO’s Dispute Settlement Body to establish a panel to
consider Japan's fire blight import restrictions on U.S. apples.
The U.S. request follows a round of bilateral WTO consultations, which
took place in Geneva on April 18. Under
the WTO dispute settlement process, the United States has requested the
formation of a panel to review evidence and, ultimately, issue a final report on
the consistency of Japan’s restrictions with its WTO obligations.
The United States has been seeking since 1994 modifications to the
U.S./Japan apple export program relative to fire blight.
Joint U.S./Japanese scientific research has demonstrated that mature,
symptomless apples are not carriers of fire blight.
Still, the Japanese insist on a restrictive and costly work plan for fire
blight that is effectively hampering U.S. apple sales to Japan.
In marketing year (MY) 2000/01, U.S. apple to Japan totaled just 790
tons, valued at $740,000. These
figures contrast with the 10,450 tons, valued at nearly $11 million, which were
sold to Japan when the market first opened in MY 1994/95.
EU Formally Sends WTO Lists
of Goods Targeted for Sanctions:
On May 14, 2002, the EU formally sent to the WTO lists of goods it might target with sanctions in possible retaliation for U.S. duties on steel. This step was necessary in order for the EU to have the option to impose the sanctions at a later date. The EU has stated that the sanctions could come as early as June 18, 2002, if the United States does not offer compensation for the steel duties. There are two lists. The first list could be applied from June 18 and includes dried onions, apples, and orange juices. The duties would be 100 percent on this first list. The second longer list will apply if the WTO rules against the United States on the steel duties and the United States does not halt the tariffs on steel. In addition to the first list, the second list includes many additional horticultural products; frozen sweet corn, other dried vegetables, kidney beans, lentils, shelled walnuts, guavas, mangoes and mangosteens, grapefruit, grapes, pears and quinces, cherries, prepared sweet corn, and grapefruit juice. For the horticultural products on the second list the additional duties range from 13-15 percent. According to the documents that the EU submitted, all of the commodities on the first list could collect an additional $601.9 million in revenue. The second list could generate an additional $585.5 million. The United States exported $2.0 billion of horticultural products to the EU in calendar year 2001.
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