RESTRICTED
WORLD TRADE WT/DS11/2
15September 1995
ORGANIZATION(95-2707)
Original: English
JAPAN -TAXES ONALCOHOLIC BEVERAGES
Request fortheEstablishment ofaPanel byCanada
Thefollowing communication, dated 14September 1995, fromtheOffice oftheUnited States
Trade Representative totheChairman oftheDispute Settlement Body iscirculated attherequest of
thatdelegation.
_______________
On7July1995, theUnited States Government requested consultations withtheGovernment
ofJapan under Article XXIII:1 oftheGATT 1994 andArticle 4oftheUnderstanding onRules and
Procedures Governing theSettlement ofDisputes (DSU) regarding internal taxes imposed byJapan
onshochu andallother distilled spirits andliqueurs falling within HSheading 2208, pursuant tothe
Liquor TaxLaw. Inaccordance withArticle 4oftheDSU, thatrequest wascirculated totheMembers
on17July1995 (WT/DS11/1).
TheUnited States andJapan heldconsultations on21July1995 inGeneva withaview to
reaching asatisfactory solution ofthematter. These consultations failed toresolve thedispute. Pursuant
toArticle XXIII:2 ofGATT 1994andArticles 4and6oftheDSU, theUnited States hereby requests
thatapanel beestablished atthenextmeeting oftheDispute Settlement Body.
IntheviewoftheUnited States, theinternal taxes imposed byJapan onthese beverages, and
inparticular thepreferential taxtreatment accorded toshochu, areinconsistent withArticle IIIofGATT
1994, andotherwise nullify andimpair benefits accruing totheUnited States under theGATT 1994.
TheUnited States requests thatthepanel beestablished withstandard terms ofreference assetout
inArticle 7oftheDSU.