INTRODUCTION

In a communication dated 1 March 2002, the United States requested consultations with Japan pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”), Article XXIII of the General Agreement on Tariffs and Trade 1994 (“GATT 1994”), Article 11 of the Agreement on the Application of Sanitary and Phytosanitary Measures (“SPS Agreement”) and Article 19 of the Agreement on Agriculture, with respect to restrictions imposed by Japan on imports of apples from the United States.

The United States stated that since 1994, Japan had applied quarantine restrictions on US apples imported into Japan to protect against the introduction of fire blight (Erwinia amylovora). These restrictions included, inter alia, the prohibition of imported apples from orchards in which any fire blight is detected, the requirement that export orchards be inspected three times yearly for the presence of fire blight, the disqualification of any orchard from exporting to Japan should fire blight be detected within a 500-metre buffer zone surrounding such orchard, and a post-harvest treatment of exported apples with chlorine. The United States alleged that Japan's measures were inconsistent with Article XI of GATT 1994; Articles 2.2, 2.3, 5.1, 5.2, 5.3, 5.6, 6.1, 6.2 and 7 and Annex B of the SPS Agreement; and Article 14 of the Agreement on Agriculture. Consultations were held on 18 April 2002, but failed to settle the dispute.

In a communication dated 7 May 2002, the United States requested the Dispute Settlement Body (“DSB”) to establish a panel pursuant to Article 6 of the DSU, with standard terms of reference as set out in Article 7.1 of the DSU. The US claims of inconsistency in their Request for the Establishment of a Panel were identical to those set out in their request for consultations, except for additional claims of inconsistency under Article 5.5 of the SPS Agreement and Article 4.2 of the Agreement on Agriculture, and omission of the previous claim under Article 14 of the Agreement on Agriculture.