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US Byrd Amendment: Japan Decides to Start Retaliation

Press Release
August 1, 2005

Japan determined today that it would implement retaliatory measures against the United States in connection with the Continued Dumping and Subsidy Offset Act of 2000, commonly known as the Byrd Amendment, starting September 1, 2005, because the United States has failed to repeal the Byrd Amendment even though it was found to be illegal under the WTO Agreements.
We strongly hope that the United States will view our decision with the utmost seriousness, and immediately repeal the Byrd Amendment.

1. Background

  • The Byrd Amendment, which came into force in October 2000, provides that assessed anti-dumping and countervailing duties be disbursed to U.S. producers, etc. who petitioned, or supported petitions of, those trade remedy actions.

  • In December 2000, Japan and eight other WTO members - Australia, Brazil, Chile, the EU, India, Korea, Thailand and Indonesia - challenged the Byrd Amendment at the WTO. Canada and Mexico joined the co-complaints in May 2001. (A single panel was established to examine the case.)

  • The WTO ruled in January 2003 that the Byrd Amendment is illegal under the WTO Agreements, and recommended that the United States repeal the Amendment in order to comply with its obligations under the WTO. December 31, 2003 was determined as the deadline for the United States to repeal the illegal provisions, but the United States did not meet this deadline.

  • Therefore, Japan, together with seven other WTO members comprising the EU, Canada, Korea, Brazil, Mexico, India, and Chile, filed a request with the WTO to authorize retaliation in January 2004. This request was subsequently authorized in November after the arbitratorfs decision on the level of retaliation.

  • Canada and the EU started retaliation on May 1, 2005.

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2. Retaliation by Japan

  • Japan determined today that it will implement retaliatory measures against the United States in connection with the Byrd Amendment, through the required domestic procedures.

  • From September 1, 2005, Japan will impose an additional 15-percent duty on the following 15 products imported from the United States.

  • Product

    No.HS Code
    Bearings 7848210000
    848220000
    848240000
    848250000
    848280000
    848291000
    848299000
    Steel Products 3721090010
    722012000
    722699010
    Navigational Instruments1 901480000
    Machinery Accessories1 846610010
    Printing Machines1 844330000
    Forklift Trucks1 842720000
    Industrial Belts1 591000020

    Total

    15
  • The level of the retaliation does not exceed 52 million dollars (56.8 billion yen), the amount authorized by the WTO (based on the amount of disbursement in 2004 US fiscal year).

Contact
Mr. Etsuo Sato, Director for WTO Compliance and Dispute Settlement
Mr. Hideki Makihara, Deputy-Director
Ms. Ikuyo Katsuta, Assistant Director

Multilateral Trade System Dept., METI
Tel: +81-3-3580-6596