WORLD TRADE
ORGANIZATIONG/L/249
2 July 1998
(98-2626)
Original:  English
JAPAN – MEASURES CONCERNING HARBOUR TRANSPORT
Communication from the European Communities
The following communication, dated 2 June 1998 addressed to the Chairman of the Council
for Trade in Goods, has been received from th e Permanent Delegation of the European Commission
with the request that it be circulated to WTO Members.
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On 15 October 1996, the European Communities requested consultations with Japan pursuant
to Article VIII of GATT 1994 concerning the operation of Japan's laws and regulations (including
administrative guidance and practices) in respect of the so-called "prior consultation" system of the
Japan Harbour Transportation Association (JHTA).
On 31 January 1997, the European Communities formally requested Japan under
Article VIII:2 of GATT 1994 to review the operation of its laws and regulations (including
administrative guidance and practices) in the light of the provisions of Article VIII of GATT 1994
with a view to minimising the incidence and comp lexity of import formalities imposed through the
"prior consultation" system.
Since then, several rounds of consultations have taken place between the EC and Japan on
this issue, with the Japanese side maintaining that those consultations did not take place within the
framework of Article VIII of GATT 1994.
On 28 and 30 October 1997, two agreements were concluded between the parties directly
concerned in Japan.  The first agreement is intended to reform the "prior consultation" system, while
the other one offers an alternative to it.  At this point in time, however, these agreements have only
been partially implemented.  The EC also understands that licences will be granted on a non-
discriminatory basis to foreign companies wishing to operate port transportation businesses in Japan.
On 11 May 1998, an official exchange of letters between the European Commission and the
Government of Japan confirmed these steps and provided for a review of their implementation at the
request of either side.
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