INTRODUCTION

Japan and the United States appeal certain issues of law and legal interpretations in the Panel Report, Japan – Measures Affecting the Importation of Apples (the “Panel Report”). The Panel was established to consider a complaint by the United States concerning certain requirements and prohibitions imposed by Japan with respect to the importation of apple fruit from the United States.

Following consultations that failed to resolve the dispute, the United States requested on 7 May 2002 that a panel be established to examine the matter on the basis of “measures” maintained by Japan that “restrict[] the importation of US apples in connection with fire blight or the fire blight disease-causing organism, Erwinia amylovora.” 2 On 3 June 2002, the Dispute Settlement Body (the “DSB”) established the Panel with the following terms of reference, in accordance with Article 7.1 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the “DSU”):

Australia, Brazil, the European Communities, New Zealand, and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu reserved their right to participate before the Panel as third parties.

Before the Panel, the United States claimed that Japan was acting inconsistently with Articles 2.2, 5.1, 5.2, 5.6, 5.7, and 7 of the Agreement on the Application of Sanitary and Phytosanitary Measures (the “SPS Agreement”) and Annex B thereto; Article 4.2 of the Agreement on Agriculture; and Article XI of the General Agreement on Tariffs and Trade 1994 (the “GATT 1994”).