1. Today, the decision of WTO arbitrators regarding the level of countermeasures applicable in retaliation for the U.S. Byrd Amendment was circulated to WTO member countries.

2. The WTO ruled the Byrd Amendment illegal in January 2003. The U.S. was obligated to repeal the illegal provisions by December 27, 2003, but missed the deadline. Therefore, eight WTO members – Japan, the EU, Canada, Korea, Brazil, Mexico, India, and Chile – filed a request with the WTO for authorization of countermeasures against the U.S. in January 2004.

3. According to the decision of the arbitrators, Japan was authorized to implement countermeasures in the amount of 78 million dollars (8,600 million yen)*. We welcome this amount of countermeasures, as it reflects the claims of the co-complaining member countries.
   *A provisional calculation, based on disbursements performed in accordance with the Byrd Amendment in FY 2002.

4. If the U.S. does not eliminate its WTO-incompatible measures, Japan, in conjunction with its co-complainants, is prepared to apply to the WTO as early as this fall for authorization of specific countermeasures in accordance with the arbitration award. WTO rules stipulate that this application shall automatically be approved, and Japan will subsequently have the right to implement countermeasures. Actual implementation of countermeasures by Japan, however, will be determined at an appropriate date, taking into account whether or not the U.S. complies with WTO rules.

5. We strongly urge the U.S. to immediately act to repeal Byrd Amendment, and avoid the situation where Japan is forced to actually exercise countermeasures.

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