Statement of Shoichi Nakagawa
Minister of Economy, Trade and Industry

On the Report of the WTO Appellate Body on United States - Definitive Safeguard Measures on Imports of Certain Steel Products

November 10, 2003

1. Today, the WTO Appellate Body Report on United States - Definitive Safeguard Measures on Imports of Certain Steel Products was circulated to all WTO Members and made publicly available.
   
   
2. We highly appreciate this Report, which largely upheld the findings of the WTO Panel Report released in July 2003, where the Panel agreed with the arguments of Japan and the other complaining parties regarding the U.S. steel safeguard measures under Section 201 of the U.S. Trade Act of 1974. The Panel found, for example, that there had been an inadequate factual determination regarding the increase in imports, which is a condition for the use of safeguards.
   
   
3. The Report is going to be officially adopted in the near future. Government of Japan will notify the WTO by the end of this month of re-balancing measures equivalent to the adverse effects imposed on it by the U.S. steel safeguard measures, unless the United States terminates the measures deemed inconsistent with the relevant WTO agreements. We fully expect the U.S. to immediately terminate its steel safeguard measures, in accordance with the recommendations of the Panel, and as upheld by the Appellate Body.