Trade Dispute: of Japan - Case Study Example

In the year 2010, Japan filed a complaint to the World Trade Organization (WTO) regarding Canada’s tight measures concerning domestic content requirement in the feed-in tariff program. Japan claimed that this tariff seemed to be laws and regulation that were affecting internal sales. They also claimed that the tariff was inconsistent with Article III: 4 and III: 5 of the GATT 1994. It claimed that these measures were meant for internal qualitative assessments. Japan finally alleged that these measures were like subsidy and that it could lead to price support or financial contribution or a form of income (WTO, 2014).

During the resolution by WTO, USA and European Union requested to be enjoined in the case and on 1 June 2011 Japan requested the establishment of a panel. The panel after various meetings upheld Japan’s complaint under article 2.1 of WTO. Then later they found out that Canada had not implemented one of the international trade agreement (WTO, 2014).On June 2013 Canada informed that the panel that it will implement the new rulings in a manner that respects WTO agreement but, it needed a reasonable amount of time to do so (WTO, 2014).