INTRODUCTION

Background

Complaint of Japan

On 4 October 1996, Japan requested consultations with Indonesia pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (“GATT 1994”) and Article 8 of the Agreement on Trade-Related Investment Measures (the “TRIMs Agreement”) regarding certain measures affecting the automotive industry of Indonesia (WT/DS55/1).

On 29 November 1996, Japan requested additional consultations with Indonesia regarding the National Car Programme under Articles 1 and 4 of the DSU, Article XXII:1 of GATT 1994 and Articles 7 and 30 of the Agreement on Subsidies and Countervailing Measures (the “SCM Agreement”) (WT/DS64/1).

On 5 November and 3 December 1996, Japan and Indonesia held the consultations requested on 4 October 1996. On 3 December 1996, also in Geneva, Japan and Indonesia held the consultations requested on 29 November 1996. No mutually satisfactory solution was reached.

On 17 April 1997, Japan requested the establishment of a panel, pursuant to Articles 4.7 and 6.1 of the DSU, Article XXIII:2 of GATT 1994, Article 8 of the TRIMs Agreement, and Article 30 of the SCM Agreement. Japan requested the panel to examine the consistency of various measures under the National Car Programme with Articles I:1, III:2, III:4, X:1 and X:3(a) of GATT 1994, Article 2 of the TRIMS Agreement, and Articles 3.1(b) and 28.2 of the SCM Agreement.

Complaint of the European Communities

On 3 October 1996, the European Communities requested consultations with Indonesia pursuant to Article 4 of the DSU, Article XXII of GATT 1994, Article 8 of the TRIMs Agreement and Articles 7 and 30 of the SCM Agreement, with respect to certain measures affecting the automobile industry (WT/DS54/1).

The European Communities and Indonesia held consultations on 6 November 1996 and on 5 December 1996. No mutually satisfactory solution was reached.

On 12 May 1997, the European Communities requested the establishment of a panel pursuant to Article XXIII:2 of GATT, Article 6 of the DSU, Article 8 of the TRIMs Agreement (to the extent that it incorporates by reference Article XXIII of GATT) and Articles 7.4 and 30 of the SCM Agreement (to the extent that Article 30 incorporates by reference Article XXIII of GATT).