JAPAN MODIFIES MICROCHIP EXPORT MONITORING.

Mar 10, 1989

JAPAN MODIFIES MICROCHIP EXPORT MONITORING.

GENEVA, MARCH 7 (IFDA/CHAKRAVARTHI RAGHAVAN)— Japan has decided to modify its measures to monitor exports of semi-conductors (microchips) to third countries, in order to ensure compliance with GATT rules and principles.

This information was conveyed by Japan’s ambassador Yoshio Hatano at the GATT Council Monday.

A GATT panel had held that some of the provisions of an U.S.-Japan agreement on export prices of semi-conductors to third markets to be inconsistent with GATT.

The EEC complained in GATT against the pact, and the panel ruled against Japan.

Hatano said Japan hereafter would collect information from industry about export prices, only after and not before export. Thus the monitoring of such prices, would be ex post facto, and not before exports, and there would be no export controls on the basis of price.

The supply and demand forecast committee, which used to provide quarterly estimates of global supply and demand, and on the basis of which Japanese producers adjusted their production, is to be abolished.

The "requests" to Japanese companies not to export semiconductors at prices below costs would be made "in general terms, and clearly separated from any export control".

The EEC welcomed the Japanese statements, but reserved its rights and detailed comments till after study of the measures and how they worked.

Other GATT participants said that they would judge things by the practice. They noted that in an earlier panel ruling against Japan (in agriculture), the GATT panel had noted that in terms of Japanese society and its functioning on the basis of a general consensus even an advice from the government was invariably taken as government instruction and carried out.

In other issues that came up before the Council, the United States continued to withhold its consent to the adoption of the panel report against it over use of section 337 of the U.S. trade and tariff act to deal with imported goods purported to be violating intellectual property rights of U.S. nationals and firms.

The U.S. delegate repeated again in the council that "the U.S. is not prepared to accept an isolated interpretation of GATT articles and obligations of standards set forth in the report".

The issue is to come up at the next meeting of the GATT council set for April 12.

Action on a number of other agenda items were also put off tills the next meeting.

These included the Nigerian proposals for GATT actions to deal with export of domestically prohibited goods, the EEC request for a panel to go into the U.S. agricultural waiver (in force indefinitely since mid 50’s), and with particular reference to the U.S. sugar import regime.