GD/138

Panel on Japanese Measures on Imports of Leather

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Other titles

Japan Leather II (US) (Source: GATT Analytical Index)

Parties

Complainant
United States
Respondent
Japan
Third Parties
Australia
India
New Zealand
Pakistan
EEC
EEC-10

Products at Issue

Products at issue
Leather
Type of product
Non-agricultural
Product sub-type
Leather and footwear

Related disputes

GATT
Related GD
GD/101
GD/107
GD/112
GD/156
WTO

Key legal aspects

Legal basis
  • GATT Article XXIII:1
Claims raised
  • GATT Article II
  • GATT Article X:1
  • GATT Article X:3
  • GATT Article XI
  • GATT Article XIII:3
  • Japan's Schedule XXVIII [XXVII] appended to the GATT
Defences raised
  • Understanding of the Chairman of the Ministerial Meeting November 1982 (SR.38/9 page 2) in the Ministerial Declaration para. 7(i) (BISD 29S/11)

Adjudicators

Type Panel
Chairperson Martin Huslid (Norway)
Other members Douglas Jayasekera (Sri Lanka), Harry Reed (United Kingdom)

Report

Type Panel
Legal basis at issue
  • GATT Article XXIII:1
Claims at issue
  • GATT Article II
  • GATT Article X:1
  • GATT Article X:3
  • GATT Article XI
  • GATT Article XIII:3
  • Japan's Schedule XXVIII [XXVII] appended to the GATT
Defences at issue
  • Understanding of the Chairman of the Ministerial Meeting November 1982 (SR.38/9 page 2) in the Ministerial Declaration para. 7(i) (BISD 29S/11)
No of Pages (total / legal reasoning) 17
  • -
  • Judicial economy exercised
  • Judicial economy exercised
  • Judicial economy exercised
  • Inconsistency found
  • Judicial economy exercised
  • Not in report conclusions
  • Not in report conclusions

Timeline

Request for consultations
Request for establishment
Establishment
Composition
Report
Adoption of report

Outcome

Outcome of the proceedings
Report adopted
Additional Info L/5623 (02/03/1984) Panel on Japanese Measures on Imports of Leather – Report of the Panel: The panel considered the United States' complaint that quantitative restrictions maintained by Japan on the leather in question were inconsistent with Article XI of the GATT. The Panel noted that Article XI:1 prohibits the use of quantitative restrictions. It recognized that situations might exist in which the maintenance of such restrictions would be justified under the relevant GATT provisions. It noted, however, that Japan had not invoked any provision of the General Agreement to justify the maintenance of the import restrictions on leather. The Panel decided that in such circumstances it was not for it to establish whether the present measures would be justified under any GATT provision or provisions. The Panel considered that the special historical, cultural and socio-economic circumstances referred to by Japan could not be taken into account by it in this context since its terms of reference were to examine the matter "in the light of the relevant GATT provisions" and these provisions did not provide such a justification for import restrictions. The Panel therefore found that the Japanese import restrictions at issue, made effective through quotas and import licenses, contravened Article XI:1. Accordingly, the Panel further found that the Japanese restrictions on the products under consideration constituted a prima facie case of nullification or impairment of benefits which the United States was entitled to expect under the General Agreement, and that the arguments advanced by Japan were not sufficient to rebut that presumption. In view of these findings, the Panel considered it unnecessary to evaluate the United States' subsidiary claims that Japan had also nullified or impaired benefits under Articles II, X:l, X:3 and XIII:3 of the GATT. The Panel suggested to the contracting parties that they recommend that Japan eliminate its quantitative restrictions maintained on the import of the products subject of the United States' complaint and thus conform with the GATT provisions, but that the Council might wish to consider whether or not Japan should be given a certain amount of time progressively to eliminate the import restrictions in question.