RESTRICTED
WORLD TRADE WT/DS10/5
15September 1995
ORGANIZATION(95-2704)
Original: English
JAPAN -TAXES ONALCOHOLIC BEVERAGES
Request fortheEstablishment ofaPanel byCanada
Thefollowingcommunication,dated14September1995,fromthePermanentMissionofCanada
totheChairman oftheDispute Settlement Body iscirculated attherequest ofthatdelegation.
_______________
On7July1995 theGovernment ofCanada requested consultations withtheGovernment of
Japan concerning taxrateslevied pursuant totheJapanese Liquor TaxLawoncertain domestic and
imported alcoholic beverages. Inaccordance withArticle 4oftheUnderstanding onRules and
Procedures Governing theSettlement ofDisputes (DSU), thatrequest wascirculated tomembers of
theWorld Trade Organization on17July1995 (WT/DS10/1).
TheGovernment ofCanada requested consultations withaviewtogaining thefullbenefit of
theconditions ofcompetition thattheJapanese Liquor TaxLawnullifies andimpairs byimposing higher
ratesoftaxation onimported alcoholic beverages including whiskies, brandies, other distilled alcoholic
beverages andliqueurs thanonJapanese shochu. Theproducts concerned fallwithin HS2208.30
("whiskies"), HS2208.40 (""rum andtafia"), HS2208.90 ("other" including fruitbrandies, vodka,
ouzo, korn, cream liqueurs and"classic" liqueurs).
Canada andJapan heldconsultations inGeneva on20July1995 withaview toreaching a
satisfactory resolution ofthematter. Unfortunately, theconsultations failed tosettle thedispute and
further consultations arenotlikely toresolve thematter.
Pursuant toArticle XXIII ofGATT 1994andArticles 4and6oftheUnderstanding onRules
andProcedures Governing theSettlement ofDisputes (DSU), Canada hereby requests thatapanel be
established atthenextmeeting oftheDispute Settlement Body scheduled for27September 1995.
Canada requests thatthePanel consider andfindthattheratesoftaxation imposed pursuant
totheJapanese Liquor TaxLaware:
a) inconsistent withArticle III:1andIII:2ofGATT 1994;
b) nullifying andimpairing thebenefits accruing toCanada pursuant totheWTO.
Canada requests thatthePanel beestablished withthestandard terms ofreference assetout
inArticle 7oftheDSU. Canada further requests thatthisrequest fortheestablishment ofaPanel
beinscribed ontheagenda ofthemeeting oftheDSBon27September 1995.