Dáil Éireann debate -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - Japanese Whiskey Tariffs.

Ben Briscoe

Question:

770 Mr. Briscoe asked the Minister for Tourism and Trade if his Department has examined the recent findings of the World Trade Organisation in relation to Japanese import tariffs on Scotch whisky; the beneficial implications, if any, this has for Irish whiskey exports; and if he will make a statement on the matter. [15413/96]

Minister for Tourism and Trade (Mr. E. Kenny)

In September 1995 a World Trade Organisation dispute settlement panel was established to examine claims by the European Community, Canada and US that the Japanese liquor tax system discriminated against imported spirits and liqueurs by applying lower tax rates to domestically produced "Shochu". The European Community argued that the Japanese system contravened Article III.2 of the GATT 1994 by applying higher internal tax rates to imports of "like" or "directly competitive or substitutable products", thus discriminating in favour of, and affording protection to, domestic products.

The panel's report has yet to be adopted by the WTO dispute settlement body and may also be subject to an appeal from Japan. This could delay full implementation of the panel's recommendations. Official adoption by the dispute settlement body of the European Community's arguments and full compliance by Japan would result in a more equitable tax regime for spirits and a more open market which exporters of Irish whiskey should be able to exploit.