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Japan's Discriminatory Curbs Oppose WTO Rules
An official with the Ministry of Foreign Trade and Economic Cooperation said on June 26 that Japan slapping temporary curbs on Chinese leeks, shiitake mushrooms and tatami rushes is discriminatory and violates WTO rules.
The official said that non-discrimination is one of the basic principles of WTO. Japan has undoubtedly used discriminatory measures to deal with different countries in its restrictive imports against China since 90 percent of these were from China. Meanwhile, it turns a blind eye to a wide range of other products that have shown sharp increases from WTO member countries. Japan's Agriculture Ministry had at first proposed to restrict on tomato, green pepper and onion too. From 1996 to 2000, Japan's tomato imports grew by 26 percent, green peppers 307 percent and onion 65 percent. Despite their evident influence on domestic prices in Japan, the Government so far has made no investigation of these, indicating its discriminatory treatment against Chinese agricultural products.
This official pointed out the recession of Japan's industries of the three products is the result of its unreasonable industrial structure and lack of competition power. It is by no means an individual case but the necessary result of a lack of comparative advantage of Japanese agriculture. Consequently, Japan's protective measures don't match the very basic conditions set by WTO at all.
So far, Japan gives the Chinese side only statistics about its import growth and industrial depression short of objective, just and convincing results of investigation nor explanations on the cause or effect for import growth and damages incurred. It goes without saying all of these are absolutely necessary for adopting protective measures in accordance with provisions of the Agreement on Safeguards ("SG Agreement") of WTO.
The official told that during bilateral negotiations the Japanese side repeatedly said that it would impose temporary protective curbs as formal measures but made no mention about compensation plans on possible costs to China. Besides, Japan even asked China to restrict its export of these three agricultural products and deliver written suggestion. The Chinese side naturally turned the request down for it belongs to a "gray area" measure strictly banned by WTO rules.
All things as have been said show that Japan's temporary protective measures are seriously contradictory with WTO rules in terms of procedure as well as content, said the official. As one of the major WTO members, Japan has for long reaped most benefits from the free trade system. So a change of policy from its ever-boosted free trade to trade protection will not only damage its international image but will also bring harm to its long-range economic interest. Trade protection will offer nothing good to solve its industrial structure and sharpen its competition edge but aggravate the contradiction and leave endless trouble in the future.
The official finally stressed that it is Japan that must be held to blame for bilateral trade dispute rises. The only way out rests with Japan to remove its discriminatory import curbs and conducting negotiations with China.
By PD Online Staff Deng Gang
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