Japan, South Korea Block GATT Review Panels

GENEVA — Japan and South Korea on Friday blocked establishing GATT dispute panels to review U.S. complaints against Tokyo’s import quotas on beef and citrus products and Seoul’s ban on imported beef, GATT spokesman David Woods said.

U.S. Trade Ambassador Michael Samuels told the ruling council of the 96-member General Agreement on Tariffs and Trade that Japan’s restrictions violated free trade rules. He said the quotas meant up to $1 billion in lost trade for the United States.

Japan’s ambassador, Yoshio Hatano, told the council that his government preferred to solve the conflict through high-level bilateral talks, expected next week in Washington.

U.S. Trade Representative Clayton K. Yeutter lost no time in showing his displeasure over the decision. “Their (Japan’s) action is distressing because it keeps the GATT dispute settlement process from moving forward,” he said in a statement released in Washington.