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(Provisional Translation)

5th Report of Market Access Ombudsman Council (March 17, 1998)

1-(3) Improve procedures for importing laver

1. Complainant: Korean Embassy in Japan

2. Ministry concerned: Ministry of Agriculture, Forestry and Fisheries, Ministry of International Trade and Industry

3. Complaint:

Japan Laver Importers Association has a monopolistic hold on the work related to dry laver imports, and the complicated import procedures, expensive commissions, etc., have a restrictive effect on actual imports. In keeping, the following improved measures should be considered. The task of submitting to the ministries concerned the original and copy of the basic agreement concluded with the Association on the buying and selling of imported laver should be abolished.

The governments of both countries involved should determine import quantities, and trade should be conducted without specific conditions, within the same range by both countries' import and export firms. The Association should solely confirm the quantities imported.

4. Corresponding Policy of the Ministries concerned:

For laver sheet, domestic production has been amounting to 10 billions of sheet in terms of quality and 100 billion yen in terms of value, annually, and is holding an important position in Japan's fishery. In this regard, laver sheet is subject to import quota system in order to prevent upset of the demand and supply balance in Japan. In this system, actual import as a commercial business of laver sheet to Japan is conducted at the industry level, according to the outcome of consultation conducted between industry sectors of Japan and the Republic of Korea, including importers, traders, processors, etc. for the Japanese side and exporters for the Republic of Korea side, taking into account market situation, quality, price, etc.

Therefore, under these circumstances, for ensuring smooth import of laver sheet, high respect should be had for the outcome of consultation conducted at industry level between Japan and the Republic of Korea in the future.

In addition, ways of purchase and sale are solely subject to trade practice.

The issues including the points raised the Korean Embassy in Japan and the points presented thereafter were addressed and discussed in depth in the latest governmental consultations at working level on trade of fishery products between Japan and the Republic of Korea held on January 15 and 16, 1998 and both sides shared the views that further discussion would be made in the same consultations to follows.