ABSTRACT
UHVWUDLQ-DSDQHVHH[SRUWVDQGWKHQDOVRZHQWRQWRDFWLYHO\DQGVXFFHVVIXOO\VHHN DQRUJDQL]DWLRQDOGHYLDWLRQIURPWKH*$77UXOHVIRUJOREDOWUDGHLQWH[WLOHVWKDW HYHQWXDOO\UHVXOWHGLQWKH0XOWL)LEHU$JUHHPHQW
7KHWH[WLOHZUDQJOHZKLFKFRQWLQXHGZHOOLQWRWKHODWHVVHWWKHVXEVWDQFH DQGVW\OHRIWKHWZLQOLEHUDOL]DWLRQFRQFHUQVWKDWZHUHWRPDUN-DSDQ·VUHODWLRQV ZLWKLWVWUDGHSDUWQHUVDFFHVVDOORZHGWR-DSDQHVHH[SRUWVLQIRUHLJQPDUNHWVDQG HYHQPRUH FRQWURYHUVLDO DV WKH SULQFLSDO VXEMHFW RI WKLV FKDSWHU VKRZV DFFHVV DOORZHGWRIRUHLJQH[SRUWVLQ-DSDQHVHPDUNHWV$VDUHVXOWRIWKHGHYHORSPHQWVLQ WKHHDUO\SRVWZDUSHULRGWKHUHZDVLQFUHDVLQJIRFXVRQ-DSDQ·VWUDGHOLEHUDOL]DWLRQSROLWLFVPHDQLQJH[SRUWVDQG LPSRUWVDVZHOODV LQYHVWPHQW6LQFH6ROLV·V FKDSWHULQWKLVYROXPHIRFXVHVRQLQYHVWPHQWLVVXHV,ZLOOFRQFHQWUDWHRQWKHHYROXWLRQRIWKH-DSDQHVHJRYHUQPHQW·VWUHDWPHQWRIH[SRUWVDEURDGDQGHVSHFLDOO\ LPSRUWVDWKRPH&HQWUDOWRWKHORQJUXQQLQJGHEDWHVKDVEHHQWKHEHKDYLRURIWKH -DSDQHVHJRYHUQPHQW LQ WKHSURFHVVHVRI WUDGH OLEHUDOL]DWLRQZKLFKZDVPDGH FRQWURYHUVLDOJLYHQZLGHVSUHDGSHUFHSWLRQVWKDWLWSURPRWHGH[SRUWVEXWWKZDUWHG LPSRUWV/LQFROQ²
/LNHWKHRWKHU-DSDQFRQWULEXWRUVWRWKLVYROXPHDQGDVDUWLFXODWHGE\3HPSHO LQKLVFKDSWHU,WRRÀQGWKDWWKH-DSDQHVHJRYHUQPHQW·VPRYHVWRZDUGODWHOLEHUDOL]DWLRQRUQHROLEHUDOLVPDWWKLVKLVWRULFDOMXQFWXUHLQFOXGHVWURQJUHVLGXHVRI ´GHYHORSPHQWDOLVPµ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
:KLOH WKH UHFHVVLRQ LQ -DSDQ DQG WKH UHYLYDORI WKH86HFRQRP\KDVPDGH FRQFHUQVDERXW-DSDQHVHOLEHUDOL]DWLRQOHVVYLVLEOHRYHUWKHVDQGWKHHDUO\ VWKH\KDYHQHYHUWKHOHVVFRQWLQXHGWREHIDLUO\DFULPRQLRXVLQVSHFLÀFFDVHV RIPDUNHWDFFHVVZKHWKHUDWKRPHRUDEURDG ,QFRPSDULVRQZLWK WKHSDVW WKH FULWLFDOGLIIHUHQFHLVWKHSUHVHQFHRIWKH:72UXOHVWKDWJLYHQWKHLUSXEOLFLQWHUQDWLRQDOODZFKDUDFWHUUHLQIRUFHWKHJDWHNHHSHUUROHRIVRYHUHLJQVWDWHVZKHQVXFK FRQFHUQVDUHUDLVHG7KLVLVEHFDXVHRQO\VWDWHVKDYHVWDQGLQJLQWKH:72V\VWHP DWSUHVHQW$OWKRXJKREVHUYHUVQRZWHQGWRRYHUORRNWKHUROHRIWKH-DSDQHVHJRYHUQPHQWVRPHWLPHVHYHQGLVPLVVLQJLWRXWRIKDQGWKHUHDOLW\LVWKDWLWKDVQRW EHHQGZDUIHGUHODWLYHWRRWKHUGRPHVWLFDQGIRUHLJQDFWRUVPXFKPRUHYLVLEOHLQ WUDGHOLEHUDOL]DWLRQSROLWLFV,QP\MXGJPHQWWKHHIIHFWRIWKHOHJDOV\VWHPRIWKH :72LQ-DSDQPD\ZHOOKDYHEHHQWRUHVXUUHFWPRUHIRUFHIXOO\WKDQHYHUEHIRUH WKH-DSDQHVHVWDWHDSSDUDWXVLQWUDGHOLEHUDOL]DWLRQSROLWLFV$VVXJJHVWHGLQWKH RSHQLQJFKDSWHUWRWKLVYROXPHWKH-DSDQHVHJRYHUQPHQWKDVadaptedWRWKHQHZ
LQVWLWXWLRQDODQGOHJDOG\QDPLFVLQWKH:72FHQWHUHGV\VWHPWRHQVXUHQRWRQO\ WKHFRQWLQXDWLRQRI LWVRZQYLWDO UROHEXWDOVR WKHSURPRWLRQDQGSURWHFWLRQRI NH\VHFWRUVWKDWDUHVWLOORIFRQFHUQLQGHEDWHVRYHU-DSDQHVHWUDGHOLEHUDOL]DWLRQ ,QDQXWVKHOOWKHFHQWUDODUJXPHQWRIWKLVFKDSWHULVWKDWDVDODWHOLEHUDOL]HUWKH -DSDQHVHJRYHUQPHQWKDVDGDSWHGWRWKH:72WUDGHUHJLPHE\HPSKDVL]LQJlegal processes LQ LWVSROLF\DUVHQDO$VDFORVHU ORRNDWVHYHUDO LPSRUW OLEHUDOL]DWLRQ FDVHVLQWKLVFKDSWHUVXJJHVWVWKHFDWFKLVWKDWDOWKRXJKVXFKDQHPSKDVLVPD\RU PD\QRWVHUYHWKHJRDOVRIPDUNHWRULHQWHGOLEHUDOL]DWLRQLQ-DSDQLPPHGLDWHO\LW GRHVDOHUWXVWRWKHZD\VLQZKLFKVXFKJRDOVDQGSURFHVVHVVWDQGWREHOHJDOL]HG LQWKHQHDUIXWXUH
7KLVFKDSWHUDVVHVVHVWKHZD\VLQZKLFKWKHUROHRIWKH-DSDQHVHJRYHUQPHQW KDVSHUVLVWHGDQGHYROYHGLQ WKHUHDOPRI LPSRUW WUDGH OLEHUDOL]DWLRQZKLFK LQ NHHSLQJZLWKWKHGHÀ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
7RHODERUDWH WKHVHSRLQWV WKH UHPDLQGHURI WKHFKDSWHU LV LQ IRXUSDUWV7KH ÀUVWSDUWSURYLGHVDEULHIRYHUYLHZRIWKHEDFNJURXQGRI86²-DSDQWUDGHUHODWLRQV UHODWHGWRPDUNHWDFFHVVLQ-DSDQDVLWIRUPVDFULWLFDOEHQFKPDUNIRUDVVHVVLQJ WKHUROHRIWKH-DSDQHVHJRYHUQPHQWLQVXFFHVVLYHVWDJHVRILPSRUWOLEHUDOL]DWLRQ 7KHVHFRQGSDUWZKLFKIRUPVWKHEXONRIWKLVFKDSWHUIRFXVHVRQWKUHHGLVSXWH VHWWOHPHQWFDVHVWKDWSURYLGHDVREHULQJSHUVSHFWLYHRQWKHZD\WKHODQJXDJHRI :72 ODZKDVEHFRPHFHQWUDO WR FRQWLQXHGGHEDWHVDERXW LPSRUW OLEHUDOL]DWLRQ LQ-DSDQ7KHFDVHVDUHJapan – Alcoholic BeveragesJapan – FilmDQGJapan – ApplesDOORIZKLFKDUHRIPRUHUHFHQWYLQWDJHDQGFXWDFURVVWKHPDQXIDFWXULQJ DQGDJULFXOWXUDOGRPDLQV7RJHWKHU WKHVHFDVHV LOOXVWUDWH WKHZD\V LQZKLFK WKH -DSDQHVHJRYHUQPHQWFDQGHIHQGUHVLVWRUSURORQJWKHSURVSHFWVIRUKRPHPDUNHW OLEHUDOL]DWLRQZLWKYDU\LQJGHJUHHVRI VXFFHVV LQD:72ZRUOG 7KH WKLUGSDUW FRQFOXGHVJHQHUDOO\DVVHVVLQJWKHLGHDWKDWWKH:72KDVKDGWKHHIIHFWRIHPEHGGLQJ WKH -DSDQHVHJRYHUQPHQW LQ OHJDOSURFHVVHVEHKLQG OLEHUDOL]DWLRQ LQZD\V WKDWVSHDNWRLWVFRQWLQXHGGRPLQDQWUROHLQWKHOLEHUDOL]DWLRQRIWUDGHSROLWLFV
Background ,W LVYLUWXDOO\LPSRVVLEOHWRWDONDERXW WKH-DSDQHVHJRYHUQPHQW·V WUDGHSROLWLFV ZLWKRXWWDONLQJDERXWLWVFRQWURYHUVLHVRYHUWUDGHOLEHUDOL]DWLRQZLWKWKH8QLWHG 6WDWHVVSHFLÀFDOO\UHODWHGWRPDUNHWDFFHVVLQ-DSDQ)RUWKHSRVWZDUSHULRGWKH 8QLWHG6WDWHVZDVWKHELJJHVWWUDGHSDUWQHUIRU-DSDQGZDUÀQJLWVUHODWLRQVKLSV
ZLWKRWKHUFRXQWULHVVXFKDVWKH(8PHPEHUVWDWHVDQGRWKHU(DVW$VLDQFRXQWULHV OLNH&KLQD,Q-DSDQHVHH[SRUWVWRWKH8QLWHG6WDWHVFRQVWLWXWHGSHUFHQWRI WRWDOH[SRUWV$GHFDGHODWHUWKDWÀJXUHLQFUHDVHGWRDVWDUWOLQJSHUFHQW,Q WKHÀJXUHZDVSHUFHQWDQGFOHDUO\VKRZHG-DSDQ·VFRQWLQXHGGHSHQGHQFHRQ WKH8QLWHG6WDWHVDVDQH[SRUWPDUNHW7KHVWRU\RQWKHLPSRUWVLGHLVDOLWWOHOHVV GUDPDWLFVKRZLQJWKDW WKH8QLWHG6WDWHVDFFRXQWHGIRUDERXW²SHUFHQWRI WRWDOLPSRUWVLQ-DSDQ*LYHQWKHQXPEHUVLWLVQRWDVXUSULVHWKDWWKH86²-DSDQ WUDGLQJUHODWLRQVHWWKHVXEVWDQFHDQGVW\OHRI-DSDQ·VWUDGHGLSORPDF\IRUPRVWRI WKHSRVWZDUSHULRG'HFDGHE\GHFDGHEHJLQQLQJLQWKHODWHVWKLVELODWHUDO UHODWLRQVKLSEHFDPHLQFUHDVLQJO\YRODWLOHDQGUHVXOWVRULHQWHGDVWKHLPEDODQFHV LQWUDGHEHWZHHQWKHWZRFRXQWULHVEHFDPHIRGGHUIRU-DSDQEDVKLQJHIIRUWVLQWKH 86SROLWLFDODUHQD
6WDUWLQJZLWKWKHWH[WLOHVGLVSXWHVLQWKHODWHVDVXFFHVVLRQRIELODWHUDO DUUDQJHPHQWV EHWZHHQ WKH 8QLWHG 6WDWHV DQG -DSDQ ZRXOG IROORZ WKH SDWWHUQ ZKHUHE\ WKH 8QLWHG 6WDWHV ZRXOG ´GHPDQGµ DQG WKH -DSDQHVH ´DFTXLHVFHµ WR OLPLWLQJWUDGHFRPSHWLWLRQLQWKHLQWHUHVWRIWKHODUJHU86²-DSDQDOOLDQFH.RPL\D DQG,WRK²)RUHOHFWRUDOUHDVRQVLQWKH8QLWHG6WDWHVWKH-DSDQHVH WH[WLOHVVWHHODQGDXWRPRELOHLQGXVWULHVZHUHVXEMHFWWRELODWHUDOGHDOVWKDWSXW DUWLÀFLDO FRQVWUDLQWV RQ 86ERXQG H[SRUWV WKURXJK YROXQWDU\ H[SRUW UHVWUDLQWV 9(5VZHOOLQWKHV6RLQJUDLQHGZDVWKLVIHDWXUHRI-DSDQ·VWUDGHGLSORPDF\WKDWWKH-DSDQHVHVWDWHHDUQHGLWVHOIWKHODEHORIWKH´UHDFWLYHVWDWHµVLQFHQR SROLF\LQQRYDWLRQVEDVHGRQWKH*$77RURWKHUZLVHZHUHIRUWKFRPLQJLQWHUPV RIPDQDJLQJLWVWUDGHUHODWLRQVZLWKWKH8QLWHG6WDWHV&DOGHU
1RUGLGWKLQJVFKDQJHPXFKLQWKHVDV-DSDQURVHLQHFRQRPLFSURPLQHQFHLQWKHZRUOGSROLWLFDOHFRQRP\DQGWKH8QLWHG6WDWHVDSSHDUHGWRGHFOLQH 0RUHSHUWLQHQWO\IRUDQXPEHURI\HDUVLQWKHPLGVWKHWZRFRXQWULHV·WUDGH LPEDODQFHVDYHUDJHGFORVHWR86ELOOLRQD\HDU$VDNH\H[DPSOHLQWKH 8QLWHG6WDWHVUDQDWUDGHGHÀFLWWRWKHWXQHRIDERXW86ELOOLRQSHU\HDUMXVW DV-DSDQUHJLVWHUHGDWUDGHVXUSOXVRIDERXW86ELOOLRQ6FKRSSD *LYHQWKHLPEDODQFHVRIWKHVDNH\VRXUFHRI$PHULFDQFRQFHUQZDVPDUNHW DFFHVVLQ-DSDQHVSHFLDOO\DVWKHQXPEHUVVHHPHGWRLQGLFDWHWKDWWKHUHZDVVRPHWKLQJ´XQHTXDOµRU´XQIDLUµDERXW-DSDQHVHWUDGHSUDFWLFHV(-/LQFROQ ²+HUHDJDLQDVHULHVRI86²-DSDQWUDGHFRQÁLFWVFRPPDQGHHUHGWKHFRQWHQWVDQGGLUHFWLRQVRI-DSDQHVHWUDGHSROLF\%HJLQQLQJZLWKWKH0DUNHW RULHQWHG6HFWRUVSHFLÀF7DONV0266WDONVFRQWLQXLQJZLWKWKH6WUXFWXUDO ,PSHGLPHQWV,QLWLDWLYH6,,DQGVXEVHTXHQWO\PRYLQJRQWRWKH)UDPHZRUN $JUHHPHQWWKHRYHUDOOJRDOIRUWKH86VLGHZDVWRIRFXVRQDVHWRISUREOHPVLQ -DSDQWKDWLPSHGHGWKHÁRZRIIUHHDQGIDLUWUDGH3RUJHV6FKRSSD /LQFROQ
7KURXJKRXWWKHVDVWKHVRFDOOHG-DSDQSUREOHPFRQWLQXHGWRFRORUWKH SHUFHSWLRQVRIWKH86JRYHUQPHQWDQGSXEOLFWKHUHZDVDZLGHVSUHDGVHQVHWKDW PDQDJHG WUDGHZDV WKHZD\ WRJRZLWK-DSDQ7KLQJVFDPH WRDKHDG LQ ZKHQWKHWZRVLGHVFRQFOXGHGWKHFRQWURYHUVLDO6HPLFRQGXFWRU$JUHHPHQWZKLFK ZDVFRQFHUQHGZLWK´YROXQWDU\LPSRUWH[SDQVLRQµ9,(LQ-DSDQ7KLVUHVXOWV RULHQWHGUDWKHUWKDQUXOHRULHQWHGDJUHHPHQWZDVFRQVLGHUHGWREHDPRGHOIRU
PDQDJLQJWUDGHUHODWLRQVDQGDFKLHYLQJOLEHUDOL]DWLRQLQ-DSDQHVSHFLDOO\VLQFH -DSDQ UHDFKHG WKHSHUFHQW IRUHLJQPDUNHW VKDUHFULWHULDDJUHHG WR LQD VLGH OHWWHU,UZLQ²%XWRYHUDOOWKLQJVGLGQRWDSSHDUWRLPSURYHIRUWKH IRUWXQHVRI86LQGXVWULHVLQWHUHVWHGLQ-DSDQDQGLQWKH8QLWHG6WDWHVQDPHG -DSDQDVDQXQIDLUWUDGHUXVLQJ6HFWLRQ
$SDUWIURPYHQWLQJWKHLUIUXVWUDWLRQZLWKWKHZD\LQZKLFK-DSDQZDVUHOHJDWHG WRUHDFWLQJWRVXFFHVVLYH86GHPDQGVWRSRIÀ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
$V D VWUDWHJ\ WKLV EHFDPH FOHDUHU LQ MXVW DV WKH 8UXJXD\ 5RXQG $JUHHPHQWVZHUHWREHVLJQHGIRUPDOO\7KHQ3ULPH0LQLVWHU+RVRNDZDVDLGD GHÀQLWLYH´QRµWRWKH&OLQWRQDGPLQLVWUDWLRQ·VGHPDQGIRUQXPHULFDOWDUJHWVDVD PHDQVRIFUDFNLQJRSHQWKH-DSDQHVHPDUNHWHVSHFLDOO\LQDXWRPRELOHVDQGDXWR SDUWVJRYHUQPHQWSURFXUHPHQWLQVXUDQFHDQGPHGLFDOHTXLSPHQWSDUWVNihon Keizai Shimbun )HEUXDU\ $OWKRXJK WKH8QLWHG6WDWHV VXEVHTXHQWO\ IRUFHG-DSDQ·VKDQGRQDQXPEHURIWUDGHLVVXHVZLWKELODWHUDOSUHVVXUHVODWHUWKDW \HDUWKH-DSDQHVHVDLGQRDQGPHDQWLW-DSDQDVOHDGLQJRIÀFLDOVSRLQWRXWYHU\ PXFKZDQWHGWROHYHOWKHSOD\LQJÀHOGZLWKWKHPRUHSRZHUIXO8QLWHG6WDWHVE\ UHO\LQJRQWKH:72UXOHV
2YHUWKHQH[WIHZ\HDUV-DSDQUHOLHGGHWHUPLQHGO\RQWKHIRUPDOGLVSXWHVHWWOHPHQWSURFHVVRIWKH:72WRUHVROYHLWVWUDGHFRQÁLFWVHVSHFLDOO\WKRVHUHODWHGWR ZKDWLWSHUFHLYHGWREHPDUNHWDFFHVVSUREOHPVDEURDG²DSURFHVV,FDOO-DSDQ·V DJJUHVVLYHOHJDOLVP3HNNDQHQE$V,KDYHGLVFXVVHGDWOHQJWKHOVHZKHUH WKHEDVLFPRWLYDWLRQIRUWKH-DSDQHVHJRYHUQPHQWZDVWKDWLWFRXOGREWDLQPRUH SRVLWLYHDQG IDYRUDEOHRXWFRPHV LQ WHUPVRIPDUNHWDFFHVVDEURDG WKURXJK WKH OHJDOL]HG:72GLVSXWHVHWWOHPHQWSURFHVVHVWKDQLWFRXOGWKURXJKDGKRFEDUJDLQLQJZLWKDPRUHSRZHUIXO8QLWHG6WDWHV$V7DEOHLQGLFDWHV-DSDQ·VFRPSODLQ-
DQWÀUHSRZHUKDVWKXVIDUEHHQDLPHGDOPRVWH[FOXVLYHO\DWWKH8QLWHG6WDWHVLQ WKHDUHDRIDQWLGXPSLQJDQGDOVRFRQFHQWUDWHGLQWZRNH\VHFWRUVWKDWKDYHORQJ EHHQ RI LQWHUHVW WR WKH0(7, 0LQLVWU\ RI(FRQRP\7UDGH DQG ,QGXVWU\ DQG LWV SUHGHFHVVRU0,7, 0LQLVWU\ RI ,QWHUQDWLRQDO7UDGH DQG ,QGXVWU\ ² QDPHO\ DXWRPRELOHVDQGVWHHO²ERWKRIZKLFKZHUHDPDMRUERQHRIFRQWHQWLRQDPRQJWKH WZRFRXQWULHV3HNNDQHQ
7DEOHDOVRVKRZVWKDW-DSDQKDVGHIHQGHGFDVHVLQWKH:72VRIDUEURXJKW PDLQO\E\WKH(8DQGWKH8QLWHG6WDWHVDJDLQVWLWVLPSRUWPHDVXUHV)RUWKLVUHDVRQ-DSDQ·VDJJUHVVLYHOHJDOLVPLQWKHLQWHUQDWLRQDODUHQDKDVDQHTXDOO\VWURQJ FRXQWHUSDUWLQWKHGRPHVWLFDUHQDDQGWKLVKDVGLUHFWLPSOLFDWLRQVIRUWKHSURVSHFWV RILPSRUWWUDGHOLEHUDOL]DWLRQLQWKHIXWXUH$VEDFNJURXQGWRWKHGLVFXVVLRQRIWKH OHJDOFDVHVLWLVKHOSIXOWREHJLQE\RXWOLQLQJWKH-DSDQHVHJRYHUQPHQW·VRIÀFLDO SRVLWLRQLQWKH:72RQWKHDFWXDOVWDWHRI-DSDQ·VRYHUDOOLPSRUWUHJLPH
-DSDQ·VDYHUDJHDSSOLHG0)1WDULIIVWDQGVDWDURXQGSHUFHQWIRUPDQXIDFWXULQJZKLFKDFFRXQWVIRUSHUFHQWRI-DSDQHVH*'3LWVWDQGVDWSHUFHQW IRUDJULFXOWXUHZKLFKDFFRXQWV IRUDPHUHSHUFHQWRI WRWDO*'3:KLOH WRWDO JRYHUQPHQWWUDQVIHUVWRWKHDJULFXOWXUDOVHFWRUDUHUHFRUGHGDWSHUFHQWRI*'3 H[FHHGLQJLWVDFWXDOVKDUHRI*'3LWLVDOVRWKHRQHVHFWRUWKDWKDVDQXPEHU RIRWKHUUHVWULFWLRQVLQSODFHQDPHO\WDULIITXRWDVDQGVSHFLDOVDIHJXDUGDFWLRQV 7KH-DSDQHVHJRYHUQPHQWPDLQWDLQVWKDWWKHUHDUHIHZÀQDQFLDOVXSSRUWVRURWKHU QRQWDULIIEDUULHUVLQWKHPDQXIDFWXULQJVHFWRU(YHQLQDJULFXOWXUH WKHJRYHUQPHQWSRLQWVRXWWKDW-DSDQKDVORQJEHHQWKHZRUOG·VODUJHVWDJULFXOWXUDOLPSRUWHU 7KXVWKH-DSDQHVHJRYHUQPHQWFODLPVWKDWLWVKRPHPDUNHWVDUHJHQHUDOO\RSHQ WRIRUHLJQLPSRUWVDFURVVWKHHQWLUHVSHFWUXPRIWKH-DSDQHVHHFRQRP\7KHUHLV OLWWOHGLVSXWHWKDW-DSDQ·VIRUPDOLPSRUWUHJLPHLVLQOLQHZLWKWKDWIRXQGLQWKH 8QLWHG6WDWHVDQGDOVR WKH(8ZLWKPDQXIDFWXULQJHQMR\LQJRYHUDOOPXFKOHVV SURWHFWLRQLVPWKDQDJULFXOWXUH
%XWWKHUHDUHVWLOOVLJQLÀFDQWSRFNHWVRILPSRUWOLEHUDOL]DWLRQUHVLVWDQFH7KH IRUPDO FRQFOXGLQJ UHPDUNV E\ WKH FKDLUSHUVRQ WR -DSDQ·V ODWHVW 7UDGH 3ROLF\ 5HYLHZLQWKH:72GUHZDWWHQWLRQWR-DSDQ·VFRPSOH[WDULIIVWUXFWXUHZLWKVLJQLÀFDQWWDULIISHDNVRIWHQZLWKQRQad valoremUDWHVWDULIISHDNVDQGLQWULFDWH WDULIITXRWDVDVZHOODVD UDQJHRIRWKHUPHDVXUHVDIIHFWLQJ LPSRUWVDFURVV WKH ERDUG7KHVHFRQYHQWLRQDOWUDGHSROLF\PHDVXUHVFRQWLQXHWRGUDZDWWHQWLRQGXH WRWKHLUYLVLELOLW\EXWWKH\DUHQRORQJHUDORQHLQWHUPVRIDIIHFWLQJWKHSURVSHFWV IRU LPSRUW OLEHUDOL]DWLRQ LQ WKH IXWXUH7KHPDLQ SRLQW LQ OLQHZLWKP\RYHUDOO DUJXPHQWLQ WKLVFKDSWHU LV WKDW WKH-DSDQHVHJRYHUQPHQWLVQRZDOVRHTXLSSHG ZLWKlegalDPPXQLWLRQ²WKHSURFHGXUDODQGVXEVWDQWLYHUXOHVRIWKH:72²WR FRXQWHUDQGWKZDUWIRUHLJQSUHVVXUHVZLWKUHVSHFWWRLWVLPSRUWUHJLPHDOWKRXJK WKHVXFFHVVRIWKRVHOHJDOVWUDWHJLHVKDVYDULHGWKXVIDU,WLVSULPDULO\WKH-DSDQ UHODWHGFDVHV²VSHFLÀFDOO\WKHOHJDOVWUDWDJHPVDQGUHDVRQLQJZLWKLQWKHP²WKDW RIIHUWUHPHQGRXVLQVLJKWVLQWRWKHSURVSHFWVRIKRPHPDUNHWOLEHUDOL]DWLRQLQNH\ -DSDQHVH VHFWRUV LQ WKH QHDU IXWXUH ,Q WKHPDQXIDFWXULQJ VHFWRU IRU H[DPSOH PDUNHWDFFHVVFRQFHUQVDUHLPSOLFDWHGQRWVRPXFKLQWKHFRQWH[WRIWKHUXOHVWKDW H[LVWEXWUDWKHULQWKRVHVXFKDVLQFRPSHWLWLRQSROLF\WKDWUDQJHIURPUXGLPHQWDU\WRQRQH[LVWHQW0DWXVKLWD,QWKHDJULFXOWXUDOVHFWRUOLEHUDOL]DWLRQLV
LQFUHDVLQJO\FRQGLWLRQHGRQGRPHVWLFFRQFHUQVDERXWHQYLURQPHQWDODQGKHDOWK FRQFHUQV FRGLÀHG LQ WKH:72$JUHHPHQW RQ WKH$SSOLFDWLRQ RI 6DQLWDU\ DQG 3K\WRVDQLWDU\6360HDVXUHVDQGWKH\DUHRQO\OLNHO\WRPXOWLSO\LQWKHIXWXUH JLYHQWKHSRWHQWLDORIWUDYHOLQJIRRGGLVHDVHVVXFKDV%6(,QVKRUWWKHODQJXDJH RIH[LVWLQJ:72UXOHVDQGODZKDVKDGDQGZLOOFRQWLQXHWRKDYHYHU\LPSRUWDQWLPSOLFDWLRQVIRU-DSDQ·VLPSRUWOLEHUDOL]DWLRQ,WLVWKLVVLGHRIWKHVWRU\WKDW DOVRSRWHQWLDOO\VWDQGVWRH[SDQGLQWKHQHDUIXWXUHDVWKHLQFUHDVLQJQXPEHURI FDVHVQRZHYHQIURP$VLDQFRXQWULHVVXFKDV.RUHDGHPRQVWUDWH7KHJRDOLQ WKHUHPDLQGHURIWKHFKDSWHULVWRVKRZKRZWKHODQJXDJHRI:72ODZKDVEHHQ EURXJKWWREHDURQWKHVSHHGDQGVFRSHRILPSRUWOLEHUDOL]DWLRQRUPDUNHWDFFHVV LQ-DSDQ
Japan’s import liberalization cases in the WTO 7KHIROORZLQJVHFWLRQFRQFHQWUDWHVRQWKUHHFDVHVLQWKH:72GLVSXWHVHWWOHPHQW V\VWHPWKDWKDYHEURXJKWWKHLVVXHRI-DSDQ·VLPSRUWOLEHUDOL]DWLRQWRFHQWHUVWDJH LQWKHFRQWH[WRIWKHQHZ:72OHJDOV\VWHP,QWKHVDPHZD\WKDWWKH8QLWHG 6WDWHVZDVWKHPDMRUVRXUFHRIIULFWLRQLQWKHELODWHUDOWUDGHUHODWLRQVKLSEHWZHHQ WKHWZRFRXQWULHVWKHPDLQDQWDJRQLVWWKDW-DSDQKDVWKXVIDUGHDOWZLWKXQGHUWKH UXEULFRIWKH:72KDVEHHQWKH8QLWHG6WDWHVDVZHOO$VWKHLPSRUWOLEHUDOL]DWLRQ FROXPQLQ7DEOHVKRZVDVXEVWDQWLDOQXPEHURIFDVHVLQYROYHG86FRPSODLQWV DERXW-DSDQ·VODFNRIPDUNHWDFFHVVDQGLWLVJHQHUDOO\WKH86DQG(8FDVHVWKDW KDYHJRQHWKURXJKIXOOEORZQSDQHOSURFHVVHV
7DNHQWRJHWKHUDVWKHUHPDLQGHURIWKLVVHFWLRQVKRZVWKH\JLYHDFULWLFDODQG FOHDUSLFWXUHRIWKH-DSDQHVHJRYHUQPHQW·VOHJDOWDFWLFVLQWKHFRQWH[WRIFRQWLQXHG IRUHLJQZRUULHVDERXWPDUNHWDFFHVVLQWKH-DSDQ·VKRPHPDUNHW,QNHHSLQJZLWK WKHPDLQWKHPHRIWKHYROXPHWKH\DOVRGHPRQVWUDWHKRZHIIHFWLYHO\WKH-DSDQHVH JRYHUQPHQWKDVDGDSWHGWRWKHOHJDOSURFHVVHVWKDWDUHFHQWUDOWRSUHVVXUHVIRUWUDGH OLEHUDOL]DWLRQ²DSURFHVVWKDWJXDUDQWHHVLWVFHQWUDOLW\WRPDUNHWDFFHVVFRQFHUQV ZUDSSHGLQWKHODQJXDJHRI:72ODZLQWKHIXWXUH7KUHHFDVHVQDPHO\Japan – Alcoholic BeveragesJapan – FilmDQGJapan – ApplesDUHFKRVHQIRUGLVFXVVLRQEHORZDVWKH\KDYHEHHQWKURXJKIRUPDOIXOOEORZQ:72GLVSXWHVHWWOHPHQW SURFHVVHVDQGWKH\DOVRDOORZXVWRGUDZJHQHUDOL]DWLRQVDERXWWKHDGDSWLYHUROH RIWKH-DSDQHVHJRYHUQPHQWLQDGGUHVVLQJIRUHLJQOLEHUDOL]DWLRQSUHVVXUHVDFURVV WKHPDQXIDFWXULQJDQGDJULFXOWXUDOKRPHPDUNHWVLQWKHQHDUIXWXUH7KHUHPDLQGHURIWKLVVHFWLRQIRFXVHVVROHO\RQSUHVHQWLQJWKHIDFWVDQGOHJDOVWUDWDJHPVLQ WKH WKUHHFDVHV7KHVXEVHTXHQWFRQFOXGLQJVHFWLRQ WKHQKLJKOLJKWV WKHSDWWHUQV DFURVVWKHPLQOLQHZLWKWKLVYROXPH·VWKHPHV
Japan – Alcoholic Beverages 2QHRIWKHORQJHVWUXQQLQJGLVSXWHVFRQFHUQHGDFFHVVWRWKH-DSDQHVHDOFRKROLF EHYHUDJHVPDUNHW DQG LW SDVVHG IURP WKH*$77 WR WKH:72 WDNLQJDGHFDGH DQGDKDOIWREHFRQFOXGHG7KLVZDVDOVRDGLVSXWHWKDWZDVVWDUWHGQRWE\WKH 8QLWHG6WDWHVEXWUDWKHUE\WKH(&ZKLFKUHPDLQHGWKHFHQWUDOOLWLJDQWWKURXJKRXW
&RPSDUHG ZLWK WKH RWKHU WZR FDVHV DQDO\]HG EHORZ WKLV ZDV D UHODWLYHO\ VWUDLJKWIRUZDUGFDVHLQWKDWWKHRIIHQGLQJ-DSDQHVH´ PHDVXUHµDWLVVXHZDVUHDGLO\ SLQSRLQWHGDQGLWVGLIIHUHQWLDOHIIHFWVFOHDUZLWKUHVSHFWWRIRUHLJQDQGGRPHVWLF SURGXFWV
,QWKH(&UHTXHVWHGFRQVXOWDWLRQVZLWK-DSDQUHJDUGLQJ-DSDQHVHFXVWRPV GXWLHVWD[HVDQGODEHOLQJSUDFWLFHVRQLPSRUWHGZLQHVDQGDOFRKROLFEHYHUDJHV 1LQHRWKHUFRXQWULHVLQFOXGLQJWKH8QLWHG6WDWHVDQG&DQDGDUHVHUYHGWKHLUULJKW WRWKHGLVSXWHSURFHHGLQJV$OWKRXJK-DSDQGLGQRWLQLWLDOO\DFFHSWWKHHVWDEOLVKPHQWRIDSDQHODQGIXUWKHUDUJXHGWKDWFRQVXOWDWLRQVKDGQRWEHHQH[KDXVWHGD SDQHOZDVQHYHUWKHOHVVHVWDEOLVKHGLQ
7KHUHZHUHWZRNH\HOHPHQWVRIWKH(&·VFDVHDJDLQVW-DSDQ7KHÀ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·VOLTXRUWD[GLGQRWGLVFULPLQDWHEHWZHHQIRUHLJQDQGKRPHSURGXFWVWKDWZHUHQRWQHFHVVDULO\GLUHFWO\ FRPSHWLWLYH RU VXEVWLWXWDEOH ZDV FHUWDLQO\ QRW DSSOLHG WR DIIRUG SURWHFWLRQ WR GRPHVWLFSURGXFHUVDQGPRUHRYHUGLGQRWYLRODWHWKHLQWHOOHFWXDOSURSHUW\SURYLVLRQVDVYRLFHGE\WKH(&
:KLOHWKHSDQHOGLGQRWXSKROGWKH(&·VFODLPVZLWKUHVSHFWWRPDUNVRIRULJLQ LWZDVPRUHV\PSDWKHWLFWRWKHQDWLRQDOWUHDWPHQWFODLP7KHSDQHOSURFHHGHG E\HVWDEOLVKLQJ WKDWD UDQJHRI LPSRUWHGDQG-DSDQHVHDOFRKROLFSURGXFWVZHUH LQGHHG´OLNHµSURGXFWVWKDWWKHUHZHUHRWKHUVWKDWZHUHGLUHFWO\FRPSHWLWLYHDQG VXEVWLWXWDEOHDQG WKDW WKHUHZDVDGLIIHUHQFH LQ WKHZD\WKH\ZHUHDOO WD[HG WR WKH GLVDGYDQWDJH RI LPSRUWHG EHYHUDJHV 0RUHRYHU WKH SDQHO FRQFOXGHG WKDW HYHQWKRXJKQDWLRQDOJRYHUQPHQWVKDGDJUHDWGHDORIEURDGGLVFUHWLRQDVWRWKHLU LQWHUQDOWD[DXWKRULW\WKHLQWURGXFWLRQRIWKHEDVLF-DSDQHVHSROLF\REMHFWLYHRI ´WD[DWLRQDFFRUGLQJWRWD[EHDULQJDELOLW\µRIFRQVXPHUVRILPSRUWHGDQGGRPHVWLFDOFRKROLFSURGXFWVZDVLQFRQVLVWHQWZLWK$UWLFOH,,,
$OWKRXJKWKHGHÀQLWLYHUXOLQJZDVDJDLQVW-DSDQWKH(&PRQLWRUHGDQGZDV XQKDSS\ZLWK -DSDQ·V LPSOHPHQWDWLRQ RI WKLV GHFLVLRQ XQWLO -DSDQ KDG WROGWKH*$77SDQHOWKDWLWZRXOGLPSOHPHQWWKHUXOLQJWKURXJKPHDVXUHVVXFK DVHOLPLQDWLQJWKHad valoremWD[HVDQGWKHJUDGLQJV\VWHPDVZHOODVDWWHPSWLQJ WRHTXDOL]HVSHFLÀFWD[UDWHVRQZKLVN\EUDQGLHVDQGGRPHVWLFshochu%XW WKH (&VWLOO IRXQG WKDW-DSDQKDGIDLOHG WR LPSOHPHQW WKHHDUOLHU UXOLQJIXOO\6L[ PRQWKVDIWHUWKH:72ZDVERUQWKH(&MRLQHGE\&DQDGDDQGWKH8QLWHG6WDWHV PRYHGWRHVWDEOLVKDMRLQWSDQHOXQGHUWKHQHZO\PLQWHG:72GLVSXWHVHWWOHPHQW V\VWHP
7KHWDUJHWRIFRPSODLQWZDVDJDLQWKH-DSDQHVH/LTXRU7D[/DZ/DZ1RRI ZKLFKLGHQWLÀHGLQWHUQDOWD[HVDSSOLFDEOHWRDOOOLTXRUV7KHFHQWUDOFODLPV
RIWKHFRPSODLQDQWVFHQWHULQJRQ$UWLFOH,,,SURYLVLRQVUHODWHGWRQDWLRQDOWUHDWPHQWZDVWKDWWKH-DSDQHVHJRYHUQPHQWKDGDSSOLHGKLJKHUWD[UDWHVRQWKHFDWHJRULHVRIVSLULWVZKLVN\EUDQG\DQGOLTXHXUVWKDQRQVXEFDWHJRULHVRIshochu ,UULWDWHGDWWKHWLPHWKDWKDGODSVHGDGHFDGHDQGWKHODFNRIVXIÀFLHQWUHJXODWRU\ FKDQJHVLPSOHPHQWHGLQWKHPHDQWLPHWKH(&DVWKHRULJLQDOFRPSODLQDQWXQGHU WKH*$77ZDVSDUWLFXODUO\GHWHUPLQHGLQLWVDUJXPHQWVWRKDYH-DSDQ·VWD[ODZ WULHGDJDLQ7KHJRDOZDVWRÀQDOO\DVWKH8QLWHG6WDWHVSXWLWFRPSOHWHWKHMRERI WKHSDQHO²WKDWLVWRÀQG-DSDQHVHWD[HVGLVFULPLQDWRU\DQGLQYLRODWLRQRI $UWLFOH,,,SURYLVLRQV²DQGDOVRWRUHFRPPHQGWKHIXOOUHPRYDORIWKHGLVFULPLQDWLRQDJDLQVWIRUHLJQSURGXFWV
7KH(& VWUHVVHG QRW RQO\ WKDW ´VSLULWVµ DQG shochuZHUH OLNH SURGXFWV EXW LIQRW WKHQDW WKHYHU\ OHDVW WKHSDQHOQHHGHG WRFRQFOXGH WKDW WKH/LTXRU7D[ /DZDSSOLHGGLIIHUHQWLDOWD[UDWHVWRVLPLODUO\FDWHJRUL]HGOLNHSURGXFWV/LNHZLVH &DQDGDVWUHVVHGWKDWZKLVN\DQGshochuZHUH´GLUHFWO\FRPSHWLWLYHDQGVXEVWLWXWDEOHµSURGXFWVWKDWZHUHWD[HGGLVVLPLODUO\E\WKH-DSDQHVHJRYHUQPHQW7KH 8QLWHG6WDWHVXVHGWKHUXOLQJWRDUJXHWKDW´ZKLWHVSLULWVµDQG´EURZQVSLULWVµZHUHLQWKHHQGOLNHSURGXFWVDVWKH\KDGVLPLODUSK\VLFDOFKDUDFWHULVWLFVDQG HQGXVHV0RUHRYHULWDVVHUWHGWKDWWKH-DSDQHVHWD[V\VWHPDIWHUWKH*$77FDVH ZKLFKDSSOLHGWRGLVWLOOHGVSLULWVIURPDEURDGKDGEHHQGHYLVHGWRDIIRUGSURWHFWLRQWR-DSDQHVHSURGXFWLRQRIshochu)DFHGZLWKWKHLPSDFWRIWKHUHGXFWLRQLQ SURWHFWLRQWKURXJKWD[HTXDOL]DWLRQLQWKH-DSDQHVHOHJLVODWLRQZDVLQ IDFWGHVLJQHGWRUHGXFHWKHLPSDFWRIWKHWD[UHGXFWLRQDQGWRFRPSHQVDWHVPDOO GRPHVWLF-DSDQHVHSURGXFHUV,QPDNLQJWKLVSRLQWWKH8QLWHG6WDWHVHYHQSRLQWHG WRDVLPLODUSURYLVLRQWKDWLWKDGLQVWLWXWHGLQWKHUS – Malt Beverages FDVH ZKLFKZDVIRXQGWREHLQFRQVLVWHQWZLWK$UWLFOH,,,SURYLVLRQV
&RQWUDU\WRWKHFRPSODLQDQWV·DVVHUWLRQV-DSDQUHVSRQGHGWKDWWKHIRUHLJQDQG GRPHVWLFDOFRKROLFEHYHUDJHVZHUHQRWVLPLODUZKLFKPHDQWWKDW$UWLFOH,,,SURYLVLRQVZHUHLQDSSOLFDEOH,WDOVRUDLVHGVRPHSURFHGXUDODUJXPHQWVWKDWDWWHPSWHG WRPLQLPL]HWKHSUHFHGHQWLDOHIIHFWRIWKHHDUOLHUUXOLQJ)LUVWLWDVVHUWHGWKDW XQGHU*$77WKHUHZDVOLPLWHGSUHFHGHQWLDOYDOXHDQGLQOLQHZLWKSUHYLRXV SDQHOVWKHSDQHOLQWKLVFDVHKDGWRFRQVLGHULWVRZQWHUPVRIUHIHUHQFHVDQGWR FRQGXFWLWVRZQH[DPLQDWLRQ6HFRQG-DSDQDOVRDUJXHGWKDWWKHVXEVHTXHQWUS – Malt Beverages *$77UHSRUWKDGLQDQ\HYHQWRYHUWXUQHGWKHUHSRUWUS – Malt BeveragesKDGLQWURGXFHGDQHZ´DLPDQGHIIHFWµWHVWLQWKHGHWHUPLQDWLRQ RIOLNHSURGXFWVWKDWZDVGLIIHUHQWWKDQWKHSDQHOUHSRUWZKLFKKDGIRFXVHG RQSK\VLFDOVLPLODULWLHVDQGWKHHQGXVHRISURGXFWV6RPHZKDWLQFRQVLVWHQWO\RQ WKHRQHKDQG-DSDQZDVUDLVLQJWKHLVVXHRIDODFNRISUHFHGHQWLDOHIIHFWRYHUDOO LQSDQHOGHOLEHUDWLRQVRQWKHRWKHUKRZHYHULWZDVVWLOOUDLVLQJWKHLVVXHRIWKH VXEVHTXHQWUS – Malt Beverages PHWKRGRORJ\IRUOLNHSURGXFWVFRPSDUHGZLWK WKHHDUOLHU UHSRUW LQZKLFK LWVPHDVXUHVKDGEHHQ LQGLFWHG ,QDGGLWLRQ WR WKHVHDUJXPHQWV-DSDQDOVRDVVHUWHGWKDWWKHSUHVHQWPHDVXUHXQGHUGLVSXWHWKH /LTXRU7D[/DZKDGEHHQDPHQGHGDIWHUDQGLWZDVIXQGDPHQWDOO\GLIIHUHQW LQWHUPVRILWVOHJLVODWLYHVWUXFWXUH7RWKHH[WHQWWKDWWKH8QLWHG6WDWHVKDGUDLVHG WKH VSHFLÀFPHDVXUH RI FRPSHQVDWLRQ IRU VPDOOYROXPHSURGXFHUV LQ WKH OHJLVODWLRQ-DSDQDWWHPSWHGWRVKRZQRWRQO\WKDWLWZDVRXWVLGHWKHSDQHO·VWHUPV
RIUHIHUHQFHDVWKH8QLWHG6WDWHVKDGQRWUDLVHGLWLQWKHFRXUVHRIELODWHUDOFRQVXOWDWLRQVEXWDOVRWKDWLWZDVDWHPSRUDU\PHDVXUHGHVLJQHGWRHQVXUHFRPSOLDQFH ZLWKWKHSDQHOUHSRUW
:KHQWKHSDQHOUHVSRQGHGLWGLGÀQGWKH-DSDQHVH7D[DWLRQ6SHFLDO0HDVXUHV /DZ WR EH RXWVLGH LWV WHUPV RI UHIHUHQFH %XW WKURXJK OHQJWK\ DQG GHWDLOHG H[DPLQDWLRQRIWKHFODLPVUDLVHGE\ERWKWKHFRPSODLQDQWVDQG-DSDQLWFDPHWR DVFOHDUDFRQFOXVLRQDVWKHHDUOLHUSDQHOUHSRUW,WFRQFOXGHGWKDWshochu DQGYRGNDZHUH OLNHSURGXFWVDQG WKDWE\ WD[LQJ WKH ODWWHUPRUH WKDQ WKH IRUPHU WKH -DSDQHVHJRYHUQPHQW YLRODWHGSURYLVLRQV RI*$77$UWLFOH ,,, ,W DOVR FRQFOXGHGWKDWshochuDQGDUDQJHRIRWKHULPSRUWHGDOFRKROLFEHYHUDJHVVXFK DVZKLVN\EUDQG\DQGOLTXHXUVZHUHGLUHFWO\FRPSHWLWLYHDQGVXEVWLWXWDEOHSURGXFWVDQGWKHLUGLVVLPLODUWD[DWLRQE\WKH-DSDQHVHJRYHUQPHQWDOVRPHDQWYLRODWLRQVRI*$77$UWLFOH,,,:KHQ-DSDQDSSHDOHGWKHSDQHOUHSRUWWKH$SSHOODWH %RG\PRGLÀHGVRPHRIWKHSDQHO·VOHJDOÀQGLQJVVXFKDVWKRVHFRQFHUQHGZLWK WKH OHJDO VWDWXVRI DGRSWHG*$77DQG:72 UHSRUWV%XWZLWK UHVSHFW WR WKH LPSRUWOLEHUDOL]DWLRQFRQFHUQVRIWKHFRPSODLQDQWVZKDWZDVFULWLFDOZDVWKDWWKH $SSHOODWH%RG\ODUJHO\XSKHOGWKHSDQHOUXOLQJZLWKUHVSHFWWRERWKYRGNDDQGWKH RWKHUGLVWLOOHGVSLULWVDQGOLTXHXUVWKDWZHUHWKHVXEMHFWRIGLVSXWH&LWLQJWKHSDQHO RQWKLVSRLQWWKH$SSHOODWH%RG\DOVRFRQFOXGHGWKDWWKURXJKDFRPELQDWLRQRI KLJKLPSRUWGXWLHVDQGGLIIHUHQWLDWHGLQWHUQDOWD[HV-DSDQPDQDJHGWR´LVRODWHµ GRPHVWLFDOO\SURGXFHGshochuIURPWKHIRUFHVRIIRUHLJQFRPSHWLWLRQDOWRJHWKHU
-DSDQZDV WKXVDVNHG WREULQJ WKH/LTXRU7D[/DZ LQWRFRQIRUPLW\ZLWK LWV *$77REOLJDWLRQV-DSDQFRXOGQRWFRPHXSZLWKD´UHDVRQDEOHSHULRGRIWLPHµ IRUWKHLPSOHPHQWDWLRQRIWKHUXOLQJWKDWVDWLVÀHGWKHFRPSODLQDQWVDQGWKH8QLWHG 6WDWHVPRYHGWRUHTXHVWWKDWWKLVWLPHSHULRGEHGHWHUPLQHGWKURXJKELQGLQJDUELWUDWLRQ%\WKHPLGGOHRI'HFHPEHU-DSDQKDGIRUPDOO\DGRSWHGDSURSRVDO WRDPHQGWKH/LTXRU7D[/DZZKLFKZDVVXEPLWWHGWRWKH'LHWIRUDSSURYDORQ -DQXDU\-DSDQSURSRVHGWKDWWKHLPSOHPHQWDWLRQZRXOGEHVSUHDGRYHU WKUHHVWDJHVLQDQGÀQDOO\WKDWZRXOGHYHQWXDOO\HTXDOL]HWD[ UDWHVRQWKHUDQJHRILPSRUWHGDOFRKROLFEHYHUDJHVDQGGRPHVWLFshochu
7R -DSDQ·V SURSRVDO RI D ÀYH\HDU SHULRG IRU LPSOHPHQWDWLRQ ² ZKLFK WKH 8QLWHG6WDWHVFRQVLGHUHGWREHDSRWHQWLDOO\GHYDVWDWLQJIRUWKHHIIHFWLYHQHVVRI WKH:72GLVSXWH VHWWOHPHQW V\VWHP² WKH8QLWHG6WDWHV VXJJHVWHG DPHUHÀYH PRQWKVDV-DSDQKDGGHPRQVWUDWHGWKDWLWFRXOGLPSOHPHQWFKDQJHVWRWKH/LTXRU 7D[ /DZ VSHHGLO\ VXFK DV LW GLGZLWK DPHQGPHQWV -DSDQ SOHDGHG ´SDUWLFXODU FLUFXPVWDQFHVµ WKDW DOORZHG IRU ÁH[LELOLW\ XQGHU WKH '68 8QGHUVWDQGLQJ RQ 5XOHVDQG3URFHGXUHV*RYHUQLQJWKH6HWWOHPHQWRI'LVSXWHV²OLPLWHGH[HFXWLYH SRZHUVRYHUWD[DWLRQDQGWKHQHHGIRUIRUPDO'LHWOHJLVODWLRQIRULPSOHPHQWDWLRQ DGYHUVH HIIHFWVRI WD[ LQFUHDVHVRQ -DSDQHVH FRQVXPHUV DQG shochu SURGXFHUV SROLWLFDOSUREOHPVZLWKLQFUHDVLQJERWKWKHFRQVXPSWLRQWD[GHFLGHGSUHYLRXVO\ LQ1RYHPEHUDQGWKHOLTXRUWD[DWWKHVDPHWLPHDQGÀQDOO\DGPLQLVWUDWLYHFRQVWUDLQWVRQWKHH[HFXWLRQRIWD[DWLRQ-DSDQDOVRWULHGWRRIIHUDFFHOHUDWHG UHGXFWLRQRIWKHWDULIIUDWHVWKDWLWKDGQHJRWLDWHGLQWKH8UXJXD\5RXQGZKLFK WKH(8DFFHSWHGEXWERWKWKH8QLWHG6WDWHVDQG&DQDGDUHMHFWHG7KHDUELWUDWRU
GLGQRWÀQG-DSDQ·VDVVHUWLRQRISDUWLFXODUFLUFXPVWDQFHVWREHSHUVXDVLYHDQGVR DZDUGHGDQLPSOHPHQWDWLRQSHULRGRIÀIWHHQPRQWKV
Japan – Measures Affecting Consumer Photographic Film and Paper 7KH FRQVXPHU SKRWRJUDSKLF ÀOP FDVH ZDV DOVRPRUH SRSXODUO\ NQRZQ DV WKH )XML².RGDN GLVSXWH DV LW SLWWHG -DSDQ·V )XML 3KRWR )LOP DJDLQVW WKH$PHULFDQ (DVWPDQ.RGDNFRPSDQ\7KHHVVHQFHRIWKLVGLVSXWHFRQFHUQHGWKHGLVWULEXWLRQ RI LPSRUWHG FRQVXPHU SKRWRJUDSKLF ÀOP DQG SDSHU LQ -DSDQ 8QOLNH Japan – Alcoholic Beverages ZKLFKZDVFRQFHUQHGZLWKFRPSOLDQFH LQ WKH IDFHRID FOHDUYLRODWLRQWKHJapan – FilmFDVHKLJKOLJKWHGWKHIXQGDPHQWDOLPSRUWDQFHRI HVWDEOLVKLQJDYLRODWLRQWREHJLQZLWK7KLVYHU\IDFWKDGDLPSRUWDQWLPSDFWRQ WKHZD\LQZKLFKGLVSXWHVDQGGLVSXWHUHVROXWLRQZRXOGSURFHHGEHWZHHQWKHWZR FRXQWULHV8QOLNHLQWKHSDVWZKHQWKH8QLWHG6WDWHVFRXOGUDQGRPO\VLQJOHRXW P\ULDGVWUXFWXUDOSUREOHPVLQ-DSDQXQGHUDELODWHUDOQHJRWLDWLQJSDUDGLJPWKLV FDVHGHPRQVWUDWHGKRZWKHYHU\VFRSHRIFRPSODLQWVEHWZHHQWKHWZRFRXQWULHV FRXOGEHVLJQLÀFDQWO\QDUURZHGWRWKDWIRXQGLQWKHVXEVWDQWLYHUXOHVRIWKH:72 LQDPXOWLODWHUDOIUDPHZRUN,WZDVDOVRDQH[WUHPHO\LPSRUWDQWFDVHIRUVKRZLQJ WKHZD\VLQZKLFKGRPHVWLF-DSDQHVHLQVWLWXWLRQVDQGSUDFWLFHVFRXOGEHVKLHOGHG LQWKHFRQWH[WRIWKHH[LVWLQJ:72UXOHVSDUWLFXODUO\LQDUHDVVXFKDVFRPSHWLWLRQ SROLF\ZKHUHWKH\WHQGWREHUXGLPHQWDU\
,Q-XQHWKH8QLWHG6WDWHVUHTXHVWHGFRQVXOWDWLRQVZLWKWKH-DSDQHVHJRYHUQPHQWUHJDUGLQJVRPHRILWVODZVUHJXODWLRQVDQGUHTXLUHPHQWVWKDWDIIHFWHG WKH GLVWULEXWLRQ DQG VDOH RI LPSRUWHG FRQVXPHU SKRWRJUDSKLF ÀOP DQG SDSHU &RQVXPHUSKRWRJUDSKLFÀOPUHIHUUHGWRERWKFRORUDQGEODFNDQGZKLWHÀOPXVHG E\FRQVXPHUVIRUFDSWXULQJSHUVRQDOLPDJHV3UHFHGLQJWKH:72FRQVXOWDWLRQV WKH8QLWHG6WDWHVKDGDWWHPSWHGWRQHJRWLDWHGLUHFWO\ZLWKWKH-DSDQHVHJRYHUQPHQW DERXW (DVWPDQ .RGDN·V PDUNHW DFFHVV SUREOHP LQ -DSDQ %XW -DSDQHVH RIÀ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
$V WKH :72 FRQVXOWDWLRQV DOVR GLG QRW OHDG WR DQ\ PXWXDOO\ VDWLVIDFWRU\ UHVROXWLRQ WKH 8QLWHG 6WDWHV WKHQ UHTXHVWHG WKH HVWDEOLVKPHQW RI D SDQHO LQ 6HSWHPEHU$FFRUGLQJWRWKH8QLWHG6WDWHV-DSDQKDGIDLOHGWRFDUU\RXWLWV REOLJDWLRQVXQGHU$UWLFOH,,,1DWLRQDO7UHDWPHQWDQG$UWLFOH;3XEOLFDWLRQDQG $GPLQLVWUDWLRQRI7UDGH5HJXODWLRQVRIWKH*$77:LWKUHVSHFWWRWKH$UWLFOH ,,,YLRODWLRQWKH8QLWHG6WDWHVFODLPHGWKDWWKH-DSDQHVHJRYHUQPHQWPHDVXUHV
ZHUHGHVLJQHGWRSURWHFWGRPHVWLFSURGXFWLRQDQGWKDWWKH\DIIHFWHGWKHFRPSHWLWLYHFRQGLWLRQVIRUGLVWULEXWLRQDQGVDOHLQDPDQQHUWKDWDFFRUGHGOHVVIDYRUDEOH WUHDWPHQW WR LPSRUWHG ÀOP DQG SDSHU WKDQ WR FRPSDUDEOH SURGXFWV RI QDWLRQDO RULJLQ:LWKUHVSHFWWRWKH$UWLFOH;YLRODWLRQWKH8QLWHG6WDWHVFODLPHGWKDWWKH -DSDQHVHPHDVXUHVODFNHGWUDQVSDUHQF\DVWKH\ZHUHQRWSURPSWO\SXEOLVKHGDQG ZHUHPRUHRYHUDGPLQLVWHUHGLQDGLVFULPLQDWRU\PDQQHUDJDLQVWIRUHLJQSURGXFWV'LUHFWO\EHFDXVHRIWKHVHPHDVXUHVWKH-DSDQHVHJRYHUQPHQWQHJDWHGWDULII FRQFHVVLRQVPDGHE\-DSDQRQERWKFRORUDQGEODFNDQGZKLWHFRQVXPHUÀOPGXULQJPXOWLODWHUDOWDULIIQHJRWLDWLRQVZKLFKWKH8QLWHG6WDWHVKDGDULJKWWRH[SHFW DQGWKLVUHVXOWHGLQWKHQXOOLÀFDWLRQRIEHQHÀWVDFFUXLQJWRWKH8QLWHG6WDWHV
7KH FULWLFDO LVVXH IRU WKH 8QLWHG 6WDWHV LQ WKLV FDVH ZDV HVWDEOLVKLQJ WKH -DSDQHVH JRYHUQPHQW PHDVXUHV WKDW GLUHFWO\ FDXVDOO\ DQG DGYHUVHO\ DIIHFWHG PDUNHWDFFHVVIRU$PHULFDQSURGXFWVLQWKH-DSDQHVHKRPHPDUNHWIRUFRQVXPHU SKRWRJUDSKLFÀOPDQGSDSHU,QSLQSRLQWLQJWKHVHYLRODWLQJPHDVXUHVWKH8QLWHG 6WDWHVLGHQWLÀHGWKUHHVHWVRIPHDVXUHVWKDWZHUHFROOHFWLYHO\WHUPHG´OLEHUDOL]DWLRQFRXQWHUPHDVXUHVµ7KHVHFRXQWHUPHDVXUHVZHUHODUJHO\DWWKHKHDUWRIWKH GLVSXWH7KHYHU\WHUPFRXQWHUPHDVXUH²taisaku LQ-DSDQHVH²LQYRNHGELWWHU WUDQVODWLRQSUREOHPVZLWKWKH8QLWHG6WDWHVLQVLVWHQWWKDW´FRXQWHUPHDVXUHVµZDV FRUUHFW DQG WKH -DSDQHVH DGDPDQW WKDW ´PHDVXUHµ RU ´SROLF\ LQ UHVSRQVHµZDV DFFXUDWH:KDWHYHUWKHSUREOHPVLQWUDQVODWLRQKRZHYHUZKDWZDVFOHDUZDVWKDW WKH8QLWHG6WDWHVXVHGWKHPFROOHFWLYHO\WRUHIHUWRGLVWULEXWLRQFRXQWHUPHDVXUHV WKH/DUJH6WRUHV/DZDQGSURPRWLRQFRXQWHUPHDVXUHV
8QGHU WKH GLVWULEXWLRQ FRXQWHUPHDVXUHV WKH8QLWHG 6WDWHV LGHQWLÀHG HOHYHQ PHDVXUHVUDQJLQJIURPDFDELQHWGHFLVLRQWRLQWHUQDWLRQDOFRQWUDFWQRWLÀFDWLRQ XQGHUWKH$QWLPRQRSRO\/DZDQGHYHQRQWRIXQGLQJIRUSKRWRSURFHVVLQJODERUDWRULHV ,Q WKHFDVHRI WKH/DUJH6WRUHV/DZ WKH8QLWHG6WDWHVZDVFRQFHUQHG ZLWK WKH ODZ LWVHOI LWV UHODWHG UHJXODWLRQVDQGDGPLQLVWUDWLYHPHDVXUHVDVZHOO DV OHJLVODWLYH DPHQGPHQWV )LQDOO\ LQ SURPRWLRQ FRXQWHUPHDVXUHV WKH 8QLWHG 6WDWHVUHIHUUHGWR-)7&QRWLÀFDWLRQVDQGJXLGHOLQHVVHOIUHJXODWLQJUXOHVDQGWKH HVWDEOLVKPHQW RI D )DLU7UDGH3URPRWLRQ&RXQFLO DQG WKH5HWDLOHUV )DLU7UDGH &RXQFLO7KH8QLWHG6WDWHVDVVHUWHGWKDWERWKLQGLYLGXDOO\DQGLQFRPELQDWLRQ WKHVH LQGLYLGXDOPHDVXUHV QXOOLÀHG DQG LPSDLUHGEHQHÀWV WR WKH8QLWHG6WDWHV 7KH8QLWHG6WDWHVIXUWKHUWRRNWKHSRVLWLRQWKDWWKHGLVWULEXWLRQFRXQWHUPHDVXUHV ZRUNLQJWRJHWKHUDVDQRUJDQLFZKROHLQSDUWLFXODUHQFRXUDJHGWKHHVWDEOLVKPHQW RIDQH[FOXVLRQDU\PDUNHWVWUXFWXUHWKDWLPSHGHGPDUNHWDFFHVVIRULPSRUWHGÀOP DQGSDSHU
7KLVZDVDFDVHDERXWGLVFULPLQDWLRQDQGRSDFLW\WKDWZRUNHGDJDLQVWLPSRUWV LQWKH-DSDQHVHPDUNHWFODLPVWKDWWKH8QLWHG6WDWHVKDGDOVREURXJKWWREHDURQ WKH -DSDQHVH JRYHUQPHQW WKURXJKPDQ\ RI WKH QHJRWLDWLQJ ELODWHUDO SDUDGLJPV GLVFXVVHGLQWKHSUHYLRXVVHFWLRQ3ODLQO\SXWWKH8QLWHG6WDWHVZDVVHHNLQJWR H[SRVH D VHULHV RI JRYHUQPHQW DFWLRQV DQG SROLF\ SURFHVVHV ² SULQFLSDOO\ WKH FRXQWHUPHDVXUHV²WKDWHLWKHUHQFRXUDJHGRUIDFLOLWDWHGWKHFUHDWLRQRIDQH[FOXVLRQDU\GRPHVWLFPDUNHW-DSDQQRWVXUSULVLQJO\UHEXWWHGDOORIWKH86FODLPVLQ FRKHUHQWVWHSV5HMHFWLQJWKHURRWRIWKH8QLWHG6WDWHV·FRPSODLQWWKDWWKHYDULRXV SULPDU\ZKROHVDOHUVLQ-DSDQHDFKFDUULHGRQO\DVLQJOHEUDQGRIÀOPDVRUGLQDU\
EXVLQHVVSUDFWLFHLQHYHU\PDMRUPDUNHWLQWKHZRUOGLQFOXGLQJWKH8QLWHG6WDWHV LWDWWULEXWHGDOOFRPSHWLWLYHRXWFRPHVWRPDUNHWIRUFHV0RUHRYHULWKRWO\GHQLHG WKHRYHUDOO86DVVHUWLRQWKDWWKHFXUUHQW-DSDQHVHPDUNHWVWUXFWXUHIRUFRQVXPHU SKRWRJUDSKLF ÀOP DQG SDSHUZDV H[FOXVLRQDU\ DQG FORVHG DQG WKDW WKLV FRXOG VRPHKRZEH WKH UHVXOW RI JRYHUQPHQW LQWHUYHQWLRQ ,Q IDFW QRWKLQJ LQ0,7,·V VRFDOOHG OLEHUDOL]DWLRQ FRXQWHUPHDVXUHV DFWXDOO\ VDLG DQ\WKLQJ DERXW HQFRXUDJLQJVLQJOHEUDQGGLVWULEXWLRQRIÀOPRURYHUDOO IDFLOLWDWHG WKHFUHDWLRQRIDQ H[FOXVLRQDU\PDUNHGVWUXFWXUH7KHFRUHRI-DSDQ·VOHJDOUHEXWWDOWKHUHIRUHWRWKH 86FDVHZDVWKDWWKHDOOHJHGPHDVXUHVGLGQRWLQDQ\ZD\LQGLYLGXDOO\DGYHUVHO\ DIIHFWLPSRUWHGSURGXFWV,WIXUWKHUHPSKDVL]HGWKDWHYHQLIWKHGLVWULEXWLRQSROLFLHV/DUJH6WRUHV/DZDQGWKHSURPRWLRQPHDVXUHVZHUHFRQVLGHUHGVHWVZLWK FRPELQHGHIIHFWVWKH\VWLOOGLGQRWGLVDGYDQWDJHLPSRUWV²EHFDXVHDVLWDVVHUWHG FOHYHUO\HQRXJK´FRPELQLQJQRWKLQJZLWKQRWKLQJVWLOOSURGXFHVQRWKLQJµ
)URPWKHVWDUWRI WKHSURFHGXUDOREMHFWLRQV-DSDQ·V OHJDOÀUHSRZHUFRQFHQWUDWHGRQWKHODFNRIVSHFLÀFLW\LQWHUPVRIWKHPHDVXUHVLGHQWLÀHGE\WKH86VLGH 1RWRQO\GLG-DSDQDWWHPSWWRKDYHVRPHRIWKHPHDVXUHVGLVPLVVHGDVWKH\KDG QRWEHHQUDLVHGSURFHGXUDOO\LQWKHSURFHHGLQJVDWHLWKHUWKHFRQVXOWDWLRQRUSDQHO UHTXHVWVWDJHHDUOLHULWDOVRWRRNLVVXHZLWKWKHYDJXHODQJXDJHXVHGE\WKH8QLWHG 6WDWHVLQLGHQWLI\LQJWKHUDQJHRIPHDVXUHV6LQFH$UWLFOH(VWDEOLVKPHQWRI 3DQHOV UHTXLUHV WKDW WKHFRPSODLQDQW´LGHQWLI\ WKH VSHFLÀFPHDVXUHVDW LVVXHµ UHIHUHQFHVE\WKH8QLWHG6WDWHVVXFKDV´PHDVXUHVVXFKDVEXWQRWOLPLWHGWRµ ´UHODWHGPHDVXUHVµDQG´RWKHUUHODWHGPHDVXUHVLQFOXGLQJJXLGHOLQHVµZHUHIDU WRRYDJXHDQGIDLOHGWKHVSHFLÀFLW\UHTXLUHPHQWV
-DSDQ DOVR SURYLGHG PRUH GHWDLOHG HYLGHQFH WKDW LQ LWV YLHZ VXIÀFLHQWO\ GHPRQVWUDWHG HTXLWDEOH PDUNHW FRQGLWLRQV IRU ERWK KRPH DQG IRUHLJQ SOD\HUV )RULQVWDQFHLIWKHGHJUHHRILPSRUWVPDUNHWSHQHWUDWLRQZDVDNH\IDFWRUWKHQ LQFUHDVHVLQIRUHLJQPDUNHWVKDUHLQIDFWGLVPDQWOHGWKH86FODLPWKDWWKHDOOHJHG PHDVXUHVFUHDWHGDVRFDOOHGERWWOHQHFN,QIDFWDIWHUWKHPDUNHWVKDUHRI IRUHLJQFRORUÀOPUHDFKHGSHUFHQWLQDQGEODFNDQGZKLWHÀOPUHDFKHG SHUFHQWLQ0RUHRYHU-DSDQDVVHUWHGWKDW.RGDN·VVKDUHRIDERXW SHUFHQWRIWKH-DSDQHVHFRORUÀOPPDUNHWZDVVLPLODUWRWKHLUUHODWLYHVKDUHVLQ PDUNHWVRXWVLGHRIWKH8QLWHG6WDWHVDQG-DSDQ:LWKLQWKHLUKRPHPDUNHWVDOVR )XMLDQG.RGDNKDGDOPRVWHTXDODQGODUJHVKDUHVZKLFKDSSURSULDWHO\UHÁHFWHG FRQVXPHUSUHIHUHQFHV
$OWKRXJKWKHSDQHOZDVQRWVRFRQYLQFHGE\-DSDQ·VQDUURZHPSKDVLVRQIRUPDODQGYLVLEOHJRYHUQPHQWUHJXODWLRQVDQGXVLQJDQLQFHQWLYH²GLVLQFHQWLYHWHVW RSWHG IRUDEURDG LQWHUSUHWDWLRQRI WKHZRUG´PHDVXUHµ WKLVGLGQRWXOWLPDWHO\ KHOSWKH8QLWHG6WDWHV·FDVH'HVSLWHWKHH[SDQVLYHLQWHUSUHWDWLRQE\WKHSDQHORI PDQ\RIWKHPHDVXUHVRUSUDFWLFHVSLQSRLQWHGE\WKH8QLWHG6WDWHVWKHUHDOLW\ZDV WKDWWKH\FRXOGQRWEHOHJDOO\DVFHUWDLQHGIRUWKHSXUSRVHVRI$UWLFOH;;,,,7KLV ZDVEHFDXVHVRPHRIWKHPFRXOGEHDWWULEXWHGWRSULYDWHQRWJRYHUQPHQWEHKDYLRU VRPHRIWKHPKDGH[SLUHGDQGRWKHUVZHUHSURFHGXUDOO\EORFNHGDVWKHLUOLQNZLWK WKRVHPHDVXUHVDFWXDOO\LGHQWLÀHGLQWKHSDQHOUHTXHVWZDVDWEHVWWHQXRXV Even PRUHLPSRUWDQWO\QRQHRI WKH WKUHH OLEHUDOL]DWLRQFRXQWHUPHDVXUHVHLWKHU LQGLYLGXDOO\RULQFRPELQDWLRQFRXOGEHVDWLVIDFWRULO\VKRZQWRFDXVHQXOOLÀFDWLRQRU
LPSDLUPHQWRIEHQHÀWVWRWKH8QLWHG6WDWHVZKLFKERUHWKHEXUGHQRISURRI7KH XSVKRWRIWKHOHJDOGHOLEHUDWLRQVZDVWKDWWKHSDQHOGLGQRWÀQGRYHUDOOHYLGHQFH RIOHVVIDYRUDEOHWUHDWPHQWRILPSRUWHGÀOPDQGSDSHUFRPSDUHGZLWKGRPHVWLF SURGXFWVVWHPPLQJIURPWKHOLEHUDOL]DWLRQFRXQWHUPHDVXUHVDQGLWDOVRGLGQRW ÀQGHYLGHQFHRIDODFNRIWUDQVSDUHQF\RQWKHSDUWRIWKH-DSDQHVHJRYHUQPHQW
Japan – Measures Affecting the Importation of Apples 8QGHWHUUHG E\ WKH HPSKDVLV RQ VXIÀFLHQW VFLHQWLÀ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ÀFDQWO\ H[SRVHG WKH ZHDNQHVVHV RI XVLQJ DYDLODEOH VFLHQWLÀF HYLGHQFH WR VXSSRUW SURWHFWLRQLVW PHDVXUHV HYHQ WKRVH RVWHQVLEO\ GHVLJQHG IRU KHDOWK DQG HQYLURQPHQWDO VDIHW\ SXUSRVHVZLWKLQVRYHUHLJQERUGHUV
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ÀF HYLGHQFHEXWDOVRWKHLUQHWHIIHFW²VSHFLÀFDOO\WRZDUG86DSSOHH[SRUWVWR-DSDQ ²ZDVPRUHWUDGHUHVWULFWLYHWKDQUHTXLUHGXQGHU636$UWLFOH
$WWKHKHDUWRIWKLVGLVSXWHZHUHDVWULQJHQWVHWRI-DSDQHVHTXDUDQWLQHUHVWULFWLRQVRQLPSRUWHGDSSOHVWKDWZHUHGHVLJQHGWRSURWHFWDJDLQVWErwina amylovora E. amylovoraPRUHFRPPRQO\NQRZQDVÀUHEOLJKW)LUHEOLJKWFDXVHVERWK SULPDU\DQGVHFRQGDU\LQIHFWLRQV7KHPRVWVHULRXVPDQLIHVWDWLRQRIWKHIRUPHU LV RYHUZLQWHULQJ FDQNHU OHVLRQ FDXVHG RQ WKH EDUN E\ LQIHFWLRQ GHYHORSHG LQ WKHSUHYLRXVVHDVRQWKDWFDQFDXVHSODQWGHDWK7KHODWWHULQIHFWLRQVRFFXUGXULQJ JURZLQJVHDVRQFDXVHGE\EDFWHULDORR]HIURPWKHOHVLRQVDQGFDQEHWUDQVPLWWHG WKURXJKZLQGUDLQLQVHFWVRUELUGVWRRSHQÁRZHURQWKHVDPHRUQHZKRVWSODQWV
$SSOHVDQGIUXLWVDUHLQIHFWHGWKURXJKQDWXUDORSHQLQJVLQWKHVNLQRUE\LQIHFWHG EUDQFKHVDQG WZLJV DQGFDQZLWKHUGLVFRORU DQGPXPPLI\ZLWKRXWGHWDFKLQJ IURPEUDQFKHV)LUHEOLJKWLVWKRXJKWWREHQDWLYHWR1RUWK$PHULFDEXWKDVVSUHDG DFURVVWKHJOREHIURP(XURSHWR$XVWUDOLDZKHUHJRYHUQPHQWVKDYHWDNHQVRPHWLPHVVXFFHVVIXOO\HUDGLFDWLRQHIIRUWV
-DSDQ FODLPHG WR EH IUHH RI ÀUH EOLJKW DQG WKH8QLWHG 6WDWHVZKLOH SRLQWLQJ WRVXEVWDQWLDOHYLGHQFH WR WKHFRQWUDU\ZDVSUHSDUHG WRDVVXPH WKDW LWZDV VR-DSDQ·VDVVHUWLRQVDOVRUHYHDOHGWKHVFRSHRIWKHLPSDFWZLWKLQLWVERUGHUV $OWKRXJK WKHUHZDV QR VXSSRUWLQJ SURRI IRU LWV DVVHUWLRQ -DSDQ VWDWHG WKDW LWV WHPSHUDWHZDUPDQGKXPLGFOLPDWHZDV LGHDO IRU WKHH[WHQVLYH UHFXUUHQW DQG LUUHYHUVLEOHVSUHDGRIÀUHEOLJKW0RUHRYHUWKLVFOLPDWHZDVDOVRULFKLQVXVFHSWLEOHKRVWVRIÀUHEOLJKWVXFKDVGRPHVWLFDOO\SURGXFHGDSSOHVDQGSHDUVZKRVH FRPPHUFLDOYDOXHZDVHVWLPDWHGWREHDVLJQLÀFDQW86PLOOLRQ7KHIDFWRI LPSRUWFRPSHWLWLRQ IRU -DSDQHVHSURGXFHUV IURP86RQHVZDVQDWXUDOO\GRZQSOD\HG E\ -DSDQ LQ IDYRU RI D IRFXV RQ WKH LPSDFW RI WKH GLVHDVH LWVHOI LQ WKH OHJDOGHOLEHUDWLRQV)LUHEOLJKWFDQSURYHIDWDOWRSODQWVDQGIUXLWVLVWUDQVPLWWDEOH DFURVVERUGHUVDQGFDQKDYHFRQVLGHUDEOHLPSDFWRQERWKWKHHQYLURQPHQWDQG FRPPHUFH )RU WKHVH UHDVRQV WKH -DSDQHVH JRYHUQPHQW FRQVWDQWO\ UHSHDWHG LWV LQWHUHVWLQSUHYHQWLQJWKHVSUHDGRIÀUHEOLJKWLQWKHLQWHUHVWRIKHDOWKDQGIRRG VDIHW\7KH8QLWHG6WDWHVZLVHO\DQGUHSHDWHGO\DOVRGLGQRWFRQWHVWWKHVHULRXV ELRORJLFDODQGHFRQRPLFFRQVHTXHQFHVDVVRFLDWHGZLWKÀUHEOLJKWRUHYHQ-DSDQ·V ULJKWWRSURWHFWDJDLQVWWKHULVNVDVVRFLDWHGZLWKWKHGLVHDVH
7KHFHQWUDOFODLPVRIWKH8QLWHG6WDWHVUHYROYHGLQVWHDGDURXQGDVLPSOHDVVHUWLRQGHVSLWHWKHWHFKQLFDOFRPSOH[LWLHVLQWKHFDVHWKHELRORJLFDOUHDOLW\ZDVWKDW PDWXUHDSSOHIUXLWZHUHQRWSDUWRIWKHGLVHDVHF\FOHIRUÀUHEOLJKWEDFWHULDDQG IXUWKHUWKDWWKHUHZDVQRVFLHQWLÀFHYLGHQFHWKDWPDWXUHDSSOHIUXLWVZKLFKZDV WKH LPSRUWHGFRPPRGLW\XQGHU LVVXHKDGHYHU WUDQVPLWWHG LQ WKHSDVWRUFRXOG WUDQVPLW LQ WKH IXWXUH WKH ÀUH EOLJKW GLVHDVH 6SHFLÀFDOO\ WKH 8QLWHG 6WDWHV DVVHUWHGWKDW-DSDQPDLQWDLQHGSK\WRVDQLWDU\PHDVXUHVZLWKRXWVXIÀFLHQWVFLHQWLÀFHYLGHQFHWKDWWKHVHPHDVXUHVZHUHQRWEDVHGRQULVNDVVHVVPHQWLQSURSRUWLRQWRWKHFLUFXPVWDQFHVWKDWWKH\ZHUHQRWWKHOHDVWWUDGHUHVWULFWLYHPHDVXUHV UHTXLUHG WRDFKLHYH OHYHOVRISURWHFWLRQDQG WKDW WKH\ZHUHDOVRQRWDSSOLHG LQ DWUDQVSDUHQWPDQQHU$VDSUDFWLFDOPDWWHURYHUWKHFRXUVHRIWKLUW\ÀYH\HDUV WKH8QLWHG6WDWHVKDGVKLSSHGDERXWELOOLRQDSSOHVDURXQGWKHJOREHZLWKRXW D VLQJOH GRFXPHQWHG FDVHRIÀUH EOLJKW WUDQVPLVVLRQ DWWULEXWHG WR86 DSSOHV 7KXVLQDFFRUGDQFHZLWK$UWLFOHWKHFRQWHQWLRQRIWKH8QLWHG6WDWHVZDVWKDW XQOLNHWKHH[LVWLQJ-DSDQHVHSK\WRVDQLWDU\PHDVXUHVUHVWULFWLQJ-DSDQHVHLPSRUWV WRPDWXUHV\PSWRPOHVVDSSOHZDVDQ´DOWHUQDWLYHPHDVXUHWKDWZDVUHDVRQDEO\ DYDLODEOHDFKLHYHG-DSDQ·VDSSURSULDWHOHYHORISURWHFWLRQ$/23DQGZDVVLJQLÀFDQWO\OHVVUHVWULFWLYHWRWUDGHWKDQ-DSDQ·VÀUHEOLJKWPHDVXUHVµ
-DSDQ KDG IRXU VHWV RI OHJLVODWLYH DFWV UHOHYDQW WR VWRSSLQJ WKH HQWU\ RI WKH ÀUHEOLJKWEDFWHULXPDWWKHWLPHRIWKHGLVSXWHQDPHO\WKH3ODQW3URWHFWLRQ /DZ1RWKH3ODQW3URWHFWLRQ/DZ(QIRUFHPHQW5HJXODWLRQVWKH 0LQLVWU\RI$JULFXOWXUH)RUHVWU\DQG)LVKHULHV0$))1RWLÀFDWLRQ1RDQG WKH0$))·V´'HWDLOHG5XOHV)RU3ODQW4XDUDQWLQH(QIRUFHPHQW5HJXODWLRQ
&RQFHUQLQJ)UHVK)UXLWRI$SSOH3URGXFHG LQ WKH8QLWHG6WDWHVRI$PHULFDµ $OWKRXJKWKH3ODQW3URWHFWLRQ/DZDQGLWV(QIRUFHPHQW5HJXODWLRQVSURKLELWHG ÀIWHHQTXDUDQWLQHSHVWVLQFOXGLQJWKHFDXVDWLYHDJHQWRIÀUHEOLJKWWKHOHJLVODWLRQDOVRSHUPLWWHGFDVHE\FDVHOLIWLQJRILPSRUWSURKLELWLRQVZKHQWKHH[SRUWLQJ QDWLRQFRQIRUPHGWRDVHWRIFHUWDLQFULWHULDVHWE\WKH-DSDQHVHJRYHUQPHQW7KH VDPHUHJXODWLRQVHQDEOHGQLQHUHVWULFWLRQVWKDWDIIHFWHGWKHLPSRUWVRI86DSSOHV LQWR-DSDQ
7KH WKUXVWRI WKHVHFRQGLWLRQVZDV WKDW WKH86JRYHUQPHQW VSHFLÀFDOO\ WKH 'HSDUWPHQWRI$JULFXOWXUHKDGWRFHUWLI\WKHGHVLJQDWLRQRIDEOLJKWIUHHRUFKDUG ZKLFKPHDQWWKHFRPSOHWHDEVHQFHRIWKHGLVHDVHQRWRQO\LQWKHH[SRUWRUFKDUGEXW DOVRDPHWHUEXIIHU]RQH,QDGGLWLRQWKHUHJXODWLRQVVHWRXWWHUPVRIDQQXDO LQVSHFWLRQDWOHDVWWKUHHWLPHVPHWKRGVRIGLVLQIHFWLRQGRZQWRWKHDSSURSULDWH FKHPLFDOVUHTXLUHPHQWVRISRVWKDUYHVWIUXLWVHSDUDWLRQGHVWLQHGIRU-DSDQDQG FRQÀUPDWLRQ E\ -DSDQHVH RIÀFLDOV WKDW86 RIÀFLDOV KDG LQGHHG FRPSOLHGZLWK WKHDIRUHVDLGSURYLVLRQV(DFKRIWKHVHSURYLVLRQVZDVFRQWHVWHGDWOHQJWKE\WKH 86DQGUHEXWWHGE\-DSDQ2YHUDOODVWKH8QLWHG6WDWHVSRLQWHGRXW86DSSOHV ZHUHSURKLELWHGIURPHQWU\LQWRWKH-DSDQHVHPDUNHWVXQOHVVWKH\ZHUHSURGXFHG KDUYHVWHGDQGLPSRUWHGDFFRUGLQJWR-DSDQ·VÀUHEOLJKWUHVWULFWLRQV
6XEVWDQWLYHO\-DSDQWULHGWRMXVWLI\LWVPHDVXUHVE\UHIHUULQJWRLQWHUQDWLRQDO VWDQGDUGVDVZHOO&HQWUDO WR WKHGLVSXWHVZHUH WKRVHGHYHORSHGE\ WKH ,QWHULP &RPPLVVLRQ RQ 3K\WRVDQLWDU\ 0HDVXUHV RI WKH ,QWHUQDWLRQDO 3ODQW 3URWHFWLRQ &RQYHQWLRQ ,33& ZKRVH PHPEHUVKLS LQFOXGHG FRQWUDFWLQJ SDUWLHV DQG ZKRVH SXUSRVH ZDV WR VHFXUH FRPPRQPHDQV DQGPHWKRGV RI SUHYHQWLQJ WKH VSUHDGRISHVWVVXFKDVÀUHEOLJKW7KHVHHIIRUWVZHUHGHYHORSHGDQGLQWHJUDWHG FRXQWU\ XSZDUGV LQWR WKH ,QWHUQDWLRQDO 6WDQGDUGV IRU 3K\WRVDQLWDU\0HDVXUHV ,360-DSDQIRULQVWDQFHDUJXHGWKDWLWVSK\WRVDQLWDU\PHDVXUHVFRQVWLWXWHG D´V\VWHPLFDSSURDFKµZKLFKHQVXUHG WKH ODFNRIÀUHEOLJKWEDFWHULDERWKRXWVLGHDQGLQVLGHDSSOHVVKLSSHGWR-DSDQ0RUHRYHUWKLVDSSURDFKZDVFRQVLVWHQW ZLWK UHOHYDQW LQWHUQDWLRQDO VWDQGDUGV RI WKH ,3&& VXFK DV ,360 1XPEHU 5HTXLUHPHQWVIRUWKH(VWDEOLVKPHQWRI3HVW)UHH3ODFHVRI3URGXFWLRQDQG3HVW )UHH3URGXFWLRQ6LWHVZKLFKMXVWLÀHGWKHPHWHUEXIIHU]RQHDVZHOODVWKH WKUHHDQQXDOLQVSHFWLRQV
3URFHGXUDOO\-DSDQDOVRWULHGRWKHUFOHYHUPDQHXYHUV)RULQVWDQFHUDLVLQJ GXHSURFHVVFRQFHUQVDERXWWKHULJKWWRFURVVH[DPLQHH[SHUWV·RSLQLRQVLQDWLPHO\ PDQQHULWWULHGWRHOLPLQDWHVRPHRIWKHHYLGHQFHE\WKHH[SHUWVGXHWRWKHWLPLQJ RIWKHLUHQWU\LQWKHSURFHHGLQJV,WFRQWHVWHGWKHRSHUDWLRQDOL]DWLRQRI´VXEMHFWLYHµWHUPVVXFKDV´PDWXULW\µ´LPPDWXULW\µDQG´V\PSWRPOHVVQHVVµRIDSSOHV WKDWZDVFHQWUDOWRWKH86FDVH,WWULHGDOVRWRGLVWLQJXLVKEHWZHHQ´ GLUHFWµZKLFK LWGRZQSOD\HGDQG´LQGLUHFWµZKLFKLWHPSKDVL]HGIRUERWKVFLHQWLÀFHYLGHQFH PRUHJHQHUDOO\DQGWKHSDWKZD\VIRUWUDQVPLVVLRQRIWKHGLVHDVHPRUHVSHFLÀFDOO\ 3HUKDSVPRVWLPSRUWDQWRIDOOFRJQL]DQWRIWKHZHDNQHVVRILWVPDLQFRQWHQWLRQ WKDW LW KDG PDLQWDLQHG LWV SK\WRVDQLWDU\ PHDVXUHV ZLWKRXW VXIÀFLHQW VFLHQWLÀF HYLGHQFHDVUHTXLUHGE\636$UWLFOH-DSDQWXUQHGWRUHO\RQWKHWLPHKRQRUHG MXGLFLDOWDFWLFRIDUJXLQJ´LQWKHDOWHUQDWLYHµ7KLVPHDQWWKDWLWVPHDVXUHVFRXOG EHMXVWLÀHGXQGHU636$UWLFOHZKLFKDOORZHGIRUWKHSURYLVLRQDOPDLQWHQDQFH RI WKHPHDVXUHV LQ WKHHYHQW WKDWVFLHQWLÀFHYLGHQFHZDV LQVXIÀFLHQW7KLVZDV
DZHDNHUDQGFRQWUDGLFWRU\FODLPWRLWVPDLQRQHVDQGZDVDVWKHSDQHOQRWHG OXGLFURXVLQOLJKWRIWKHDEXQGDQFHRILQIRUPDWLRQDYDLODEOHRQWKHWRSLF
-DSDQ·V OHJDO WDFWLFVZHUHRI OLWWOHDYDLO$OWKRXJK LW UDLVHGVRPH LQWHUHVWLQJ GHIHQVHVLQFOXGLQJLWVFODLPLQWKHDOWHUQDWLYHWKH8QLWHG6WDWHVZDVDEOHWRUHEXW PRVW RI LWV DVVHUWLRQV TXLWH HIIHFWLYHO\ 7KH XSVKRW RI WKH SDQHO GHOLEHUDWLRQV EDVHGERWKRQWKHDUJXPHQWRIWKHSDUWLHVDVZHOODVRQWKHWHVWLPRQ\RIH[SHUWV ZDV WKDW WKHUHZDVQRUDWLRQDO UHODWLRQVKLSEHWZHHQ WKHVFLHQWLÀFHYLGHQFHDQG -DSDQ·VPHDVXUHVWKDWWKH\ZHUHPDLQWDLQHGZLWKRXWVXIÀFLHQWVFLHQWLÀFHYLGHQFH DVUHTXLUHGWKDWWKH\ZHUHFOHDUO\GLVSURSRUWLRQDWHWRWKHULVNVLGHQWLÀHGDQGWKDW WKH\ZHUHQRWEDVHGRQDULVNDVVHVVPHQWRIWKHHQWU\DQGVSUHDGRIWKHGLVHDVHDQG UHODWHGFRQVHTXHQFHV8SRQDSSHDOE\WKHSDUWLHVWKH$SSHOODWH%RG\XSKHOGDOO RIWKHSDQHO·VÀQGLQJV
Conclusion $V WKH :72 FDVHV LQ WKLV FKDSWHU LPSOLFDWLQJ -DSDQ·V LPSRUW OLEHUDOL]DWLRQ PHDVXUHVVKRZWKH-DSDQHVHVWDWHDSSDUDWXVLVOLNHO\WRUHPDLQFHQWUDOLQFRQWLQXHG GHEDWHVRYHUPDUNHWDFFHVV7KHUHDVRQIRUWKLVFRQWLQXHGFHQWUDOLW\FRPHVIURP WKHHQPHVKPHQWRIQDWLRQDOJRYHUQPHQWV-DSDQ·VLQFOXGHGLQWKHHODERUDWHOHJDO VWUXFWXUHRIWKH:72WUDGLQJUHJLPH,QOLQHZLWKWKLVYROXPH·VHPSKDVLVRQODWH OLEHUDOL]DWLRQSUHVVXUHVWKLVPHDQVWKDWWKH-DSDQHVHJRYHUQPHQWKDVDGDSWHGWR WKHQHZ:72UHDOLWLHVDQG LQ WKHFRQWH[WRI ORQJUXQQLQJFRQFHSWXDOGHEDWHV DERXWPDUNHWDFFHVVLQ-DSDQLWZRXOGEHIXUWKHUDSSURSULDWHWRVD\WKDWLWQRZ QR ORQJHURQO\FRQIURQWVgaiatsu IRUHLJQSUHVVXUHEXWFDQDOVRH[HUW´UHYHUVH gaiatsuµZKHQGHDOLQJZLWKLWVWUDGHSDUWQHUV
-DSDQ·V OHJDOLVP LQ WKH GRPHVWLF DUHQD KDV GLUHFW LPSOLFDWLRQV IRU LPSRUW OLEHUDOL]DWLRQ LQ WKH IXWXUH7KH FDVHV GLVFXVVHG LQ WKLV FKDSWHU DOHUW XV WR WKH PDQ\SLWIDOOV-DSDQ·VWUDGHSDUWQHUVPD\FRQWLQXHWRFRQIURQWLQWKHIXWXUHDQG WKHVRUWVRIGHIHQVHVWKDWWKH-DSDQHVHJRYHUQPHQWPD\OHJLWLPDWHO\UDLVHLQWKH :72GLVSXWHVHWWOHPHQWV\VWHP)URPDPHWKRGRORJLFDOYLHZSRLQWWKHQXPEHURI FDVHVLVVPDOODQGPD\WKHUHIRUHEHWKRXJKWRIDVEHLQJRIGXELRXVJHQHUDOL]DWLRQ HVSHFLDOO\ DV OLWLJDQWV DUH FRQFHUQHGZLWK VSHFLÀF UHPHGLHV LQ WKHLU RZQ LQGLYLGXDOFDVHV%XWWKHUHDOLW\LVWKDWWKHOHJDOLPSRUWRIWKHFDVHVIDURXWZHLJKVWKHLU QXPHUDOFRXQWDQGDGRSWHG:72UHSRUWVGRKDYHVWURQJSHUVXDVLYHDXWKRULW\LQ WKH WZROHYHOKLHUDUFKLFDO:72UHYLHZV\VWHPHYHQLI WKHUH LVQRIRUPDOstare decisis 3DOPHWHUDQG0DYURLGLV²7KHSRLQW WKHUHIRUH LVQRW MXVW DERXWZLQQLQJDQGORVLQJ$VDSUDFWLFDOPDWWHUSDUWLHVSDQHOVDQGWKH$SSHOODWH %RG\ WDNH WKH UHDVRQLQJRI VXFK FDVHV LQWR DFFRXQW7KHYHU\ SUHVHQFHRI WKH DGRSWHGFDVHVFDQWKHUHIRUHKDYHDQHIIHFWRQZKHWKHUGLVSXWHVFDQVWDQGRUIDOORQ OHJDOPHULWVLQDUHDVRIVXEVWDQWLYHLQWHUHVWWRWKRVHFRQFHUQHGZLWKVSHFLÀFLVVXHV RIPDUNHWDFFHVVLQ-DSDQJapan – Alcoholic BeveragesVKRZVKRZDWDQJLEOHWD[ GLIIHUHQWLDOZKLFKGLVFULPLQDWHGDJDLQVWIRUHLJQSURGXFWVFDQEHSLQSRLQWHGZLWK DFFXUDF\EXWFDQWDNHIRUPDO:72DUELWUDWLRQWROD\WRUHVWJapan – FilmVKRZV WKHGLIÀFXOWLHVRISLQSRLQWLQJ-DSDQHVHJRYHUQPHQWLQYROYHPHQWLQFDVHVVXFKDV LQFRPSHWLWLRQSROLF\ZKHUHWKHUXOHVDUHVWLOOUXGLPHQWDU\Japan – ApplesOLNH
DSUHYLRXVUHODWHGDJULFXOWXUHFDVHVKRZVDGDSWLYHOHJDOLQJHQXLW\ZKHQJRYHUQPHQWPHDVXUHVDUHGHIHQGHGRQWKHEDVLVRIHQYLURQPHQWDODQGKHDOWKFRQFHUQV WKDWFDQEHPDLQWDLQHGRQWKHEDVLVRIVXIÀFLHQWVFLHQWLÀFHYLGHQFH
7KHYROXPHRI VXFKFDVHV DJDLQVW -DSDQ LV OLNHO\ WRJURZ HVSHFLDOO\ LQ WKH $VLDQDUHD:LWKWKHULVHRIERWK.RUHDQDQG&KLQHVHGLVSXWHVHWWOHPHQWDFWLYLW\ LQ WKH:72 WKH LVVXHRI -DSDQ·V LPSRUW OLEHUDOL]DWLRQ LQ VHFWRUV UDQJLQJ IURP DJULFXOWXUHWRWH[WLOHVDQGHYHQKLJKWHFKQRORJ\LVOLNHO\WRFRPHXQGHULQFUHDVLQJVFUXWLQ\LQWKHQHDUIXWXUH.RUHDLVDOUHDG\WKHÀUVWWLPH$VLDQFRPSODLQDQW DJDLQVW-DSDQDQGDV7DEOHVKRZVLWKDVUHFHQWO\ÀOHGDQDJULFXOWXUDOUHODWHG FDVHDJDLQVW-DSDQHVHPHDVXUHV&KLQDDQG-DSDQKDYHDOVRDOUHDG\ORFNHGKRUQV RYHUVDIHJXDUGVHYHQEHIRUH&KLQDDFFHGHGWRWKH:720RUHRYHUDV3HDUVRQ DUJXHVLQWKHFRXQWHUSDUWFKDSWHUKHUH&KLQD·VOLEHUDOL]DWLRQKDVEHHQPRUHSURQRXQFHGLQWKHH[SRUWVHFWRU WKDQLQWKHLPSRUWRQHQRQWDULIIEDUULHUV17%V VXFKDVVWDQGDUGVFHUWLÀFDWLRQDQGSURGXFW W\SH WHVWLQJDERXQG WUDGHUHPHGLHV OLNHDQWLGXPSLQJDUHRQ WKH ULVH DQG OHJDO OHYHUDJH LQ WKH:72ZLOOEHFRPH LQFUHDVLQJO\LPSRUWDQWWRWKH&KLQHVHOHDGHUVKLS
7KHVHDUHDOOSRWHQWLDO6LQR-DSDQHVHSDWKZD\VWR:72GLVSXWHVHWWOHPHQWLQ WKH IXWXUH DVERWK VWDWHVJUDSSOHZLWK LQWHJUDWLQJDQGFRPSHQVDWLQJ WKHLU FRQVWLWXHQFLHVLQWKHFRQWH[WRIWKHWUDGHH[SDQGLQJUXOHVWKH\DUHREOLJHGWRXSKROG :KDWHYHUWKHVFRSHRUVXEVWDQFHRI-DSDQ·VWUDGHOLEHUDOL]DWLRQWKHUHDOLW\LVWKDW WKH-DSDQHVHVWDWHZLOO UHPDLQFHQWUDO WR WKHSURFHVVHV LQD:72ZRUOG7UDGH ZLWK-DSDQPD\RUPD\QRWEHRSHQLQWKHQHDUIXWXUHZKHWKHUZLWK$VLDQSDUWQHUV RURWKHUVEXWZKDWLVFOHDULVWKDWLWZLOOEHLQFUHDVLQJO\VXEMHFWHGWRLQWHUQDWLRQDO OHJDOFRQVWUDLQWV
