JAPAN – Trade In

Semiconductors
L/6309 (1988)

INTL. LAW & THE GLOBAL ECONOMY DANIEL MORALES M.

 Predatory prices, semiconductors.
US v. Asian producers.
Threats: retaliations, tariffs.
Negotiations. European Community:

JAPAN – Trade In
domestic market share, international prices. US preferential treatment.

Semiconductors
Distort sector market ().

"Japan-US Arrangement in Semiconductor trade” 1986. Consultations ⇢ Panel

A. Fixed* for-export prices + licensing procedures. EC v. Japan*

B. Governmental monitoring + data reporting scheme*.L/6309 (1988)

C. Domestic promotion of foreign goods.

JAPAN – TRADE IN SEMICONDUCTORS ARRANGEMENT DANIEL MORALES M.

 EC
Panel
A. Violation Art. XI (QR) - prices = production
Monitoring system & scheme of fixed prices, de facto Governmental request.
binding. Implementation administrative guidelines.
Sanction system non-compliance.
B. Violation Art. I (MFN) - promote US industry Violation Article XI (QR)

JAPAN – Trade In
A.
Monitoring system, for benefit of US goods. “Applied to all measures”, “other measures”.
Governmental pressure (licensing, monitoring,
sanctions) = de facto binding.

Semiconductors
Japan B. No violation Article I (MFN)
Wording of Arrangement.
A. No violation Art. XI (QR) Not against or in favor specific nations.
Monitoring = supervision duties
fixed prices = suggested to producers L/6309 (1988)

B. No violation Art. I (MFN)

Arrangement not specifically aimed.
No promises of domestic market share.

JAPAN – TRADE IN SEMICONDUCTORS PANEL DANIEL MORALES M.

 Article XI*: General Elimination of Quantitative
Restrictions
1. No prohibitions or restrictions other than duties, taxes or
other charges, whether made effective through quotas, import
or export licences or other measures, shall be instituted or
maintained by any contracting party on the importation of any
product of the territory of any other contracting party or on
Article XI*: the
General Elimination exportation
of Quantitative or sale for export of any product destined for
Restrictions
1.
the territory of any other contracting party.
No prohibitions or restrictions other than duties, taxes or other charges, whether made effective through quotas, import or export licences or other measures, shall be instituted or maintained by any
contracting party on the importation of any product of the territory of any other contracting party or on the exportation or sale for export of any product destined for the territory of any other contracting
party.

2.
2. The provisions of paragraph 1 of this Article shall not
The provisions of paragraph 1 of this Article shall not extend to the following:
extend to the following: (…)

REFLECTIONS