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Japan To Sue Massachusetts



Japan seeks WTO panel to repeal Massachusetts law


 .c Kyodo News Service    

World Trade Organization (09/09/98-WTO) on Tuesday to set up a dispute
settlement panel to review a law passed by the U.S. state of Massachusetts
that bars from state contracts with firms that do business with Myanmar,
Japanese government sources said. 

Tokyo argues that the state law is not consistent with the government
procurement agreement of the WTO -- in which the United States is a
participating nation -- that among other things mandates nondiscriminatory
treatment of companies in government procurement. 

This is the first Japanese request to set up such a panel with the WTO
targeting U.S. trade practices. On the same day, the European Union (EU) also
filed a request for a dispute settlement panel on the same matter. 

After the EU filed a complaint June 20, 1997 with the WTO against the U.S. on
the matter, Japan participated in consultations between the EU and the U.S. as
a third party. 

Along with the EU, Japan requested that Washington act to eliminate the Act
Regulating State Contracts with Companies Doing Business with Burma (Myanmar).

But because Washington did not eliminate the act, Japan decided to seek the
judgment of a multilateral trade panel, the sources said. 

Massachusetts enacted the law June 25, 1996, as a protest against the
crackdown on democratic movements by Myanmar's military government. 

In conformity with the law, the Commonwealth of Massachusetts lists firms that
do business with Myanmar and bans them from participating in bids for state
contracts. Some 50 Japanese companies from trading houses, construction
companies and travel agencies are on the list, the sources said. 

AP-NY-09-08-98 1950EDT