OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C.
June 23, 2005

United States Wins WTO Challenge Against Japanese Restrictions on U.S.
Apples

WASHINGTON - U.S. Trade Representative Rob Portman applauded a World
Trade Organization (WTO) panel decision issued today siding with the
United States in its dispute against Japanese restrictions on U.S.
apples. The United States estimates that U.S. apple exports to Japan
would be $143.4 million in the absence of Japan's restrictions.

"This is a solid victory for the U.S. apple industry," said Ambassador
Portman. "The WTO panel's clear and well-reasoned decision sets a
scientifically-based standard to be used by Japan and other countries.
Japan has unfairly used unscientific restrictions to block U.S. apple
exports for years. This is a great example of how the Administration is
actively enforcing our trade agreements."

"This is an important result for the U.S. apple industry and all
exporters, as it advances the adoption of science-based regulations as
the international language for the safe trade of agriculture products,"
said Agriculture Secretary Mike Johanns. "We look forward to working
with our trading partners around the world to ensure that our producers
have an opportunity to trade without artificial barriers. When American
producers have a level playing field, the high quality and reliability
of their products sell themselves."

Today's panel report makes very clear findings in favor of the United
States that Japan's revised restrictions are still inconsistent with its
WTO obligations. The panel sided with the United States on all of the
major issues in dispute. The panel agreed with the United States that
Japan failed to conform its restrictions on apples to previous WTO panel
and Appellate Body findings. The panel found against the majority of
the revised elements of Japan's import regime for apples, most notably
the prohibition of shipping healthy fruit from orchards with any fire
blight at all, and mandatory orchard inspections, orchard buffer zones,
and various packing facility requirements. The panel concluded that
these restrictions were maintained without sufficient scientific
evidence, not based on a risk assessment and more trade restrictive than
necessary. Further, the panel endorsed the U.S. argument that any
hypothetical concerns regarding the spread of fire blight disease could
be addressed by restricting exports of apple fruit to mature,
symptomless fruit.

Background

Japan provides important export opportunities for U.S. apples. However,
U.S. apples have effectively been banned from the Japanese market for
over twenty years in large part due to Japan's unscientific fire blight
restrictions. Fire blight is a disease unique to certain fruit trees,
causing flowers, shoots, twigs and sometimes the host plant itself to
wither and die.

The United States won earlier WTO proceedings against the Japanese
restrictions, and in this most recent proceeding challenged Japan's
attempts to bring its restrictions into conformity with the WTO
Agreement on the Application of Sanitary and Phytosanitary Measures (the
SPS Agreement). Japan's restrictions on exported U.S. apples included a
10-meter orchard buffer zone, orchard inspections, and chlorine
treatment of exported fruit. The United States argued that these
restrictions were not based on sufficient scientific evidence or on a
risk assessment, and were therefore inconsistent with Japan's
obligations under the SPS Agreement. The panel agreed with the U.S.
position, and affirmed a U.S. argument that any hypothetical concerns
regarding the spread of fire blight disease could be addressed by
restricting exports of apple fruit to mature, symptomless fruit.

In the event that Japan fails to comply with the ultimate
recommendations and rulings of the WTO, the United States would move
forward with its request for WTO authorization to impose $143.4 million
dollars a year in trade sanctions. This figure would be subject to
arbitration at the WTO.


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