CASE 7-2 Japan - Taxes on Alcoholic Beverages:

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Tribunal- Who decided the case.
WTO APPELLATE BODY.

Parties- Japan v Taxes on Alcoholic Beverages

Issues- Define the relevant facts and legal elements of this case.
Once a dispute is mutually agreed on, the countries should undertake prompt settlement of the situation.
If there is a lack of mutually agreed solution, the objective of the settlement mechanism is usually to secure the withdrawal of those measures that are inconsistent with the provisions of the covered agreements.

Facts- Tell the story of the parties.
There was a dispute with Japan regarding the indirect taxes it imposed on white spirits; the taxes were higher than those imposed on Sochu A and B. These were local spirits. During the tribunal hearing and political settlement, it was decided that a higher tax would be imposed on Sochu and a lower tariff would be imposed on imported white liquor. However, Japan never disclosed when the tariffs would be reduced and continued claiming that the Diet could not pass the law in its current session. The tribunal decided that the implementation needs to be done immediately and set a date for the implementation of the decisions of the tribunal.

Rule- State the rule of law that the court applies to answer the question posed by the issue.
III. The law of Article XXIII: 1 GATT 1994
Article XXIII: 1 GATT 1994 provides that if any Member should consider that any benefit accruing to it directly or indirectly under this agreement is being nullified or impaired or the attainment of any objective of the Agreement is being impeded as a result of (a) the failure of another Member to carry out its obligations under this Agreement...the Member may, with a view to the satisfactory adjustment of the matter, make written representations or proposals to the other Members or Members which it considers to be concerned. Any Member thus approached shall give consideration to the representations or proposals made to it.
If no satisfactory adjustment is made within a reasonable period of time, the matter may be referred to the Dispute Settlement Body of the WTO which, pursuant to Article XXIII GATT 1994 is under an obligation to make appropriate recommendations to the alleged offending Member.
IV. The law of Article III: 2 GATT 1994

The obligation that requires WTO Members not to impose on imported products discriminatory or protective taxes is ...