JAPAN - PROCUREMENT OF A NAVIGATION SATELLITE

Request for Consultations by the European Communities

        The following communication, dated 26 March 1997, from the Permanent Delegation of the European Commission to the Permanent Mission of Japan and to the Dispute Settlement Body, is circulated in accordance with Article 4.4 of the DSU.

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        My authorities have instructed me to request consultations with Japan pursuant to Article XXII of the Government Procurement Agreement and Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes regarding a recent procurement tender published by the Ministry of Transportation (MoT) of Japan to purchase a multi-functional satellite for the installation of a Global Navigation Satellite System (MSAS) for Air Traffic Management.

        Following the publication by the MoT of MSAS specifications in August 1996, the European Commission raised the concern on several occasions that these specifications refer explicitly to those of the US WAAS and that a more neutral formulation was requested allowing for extended interoperability.  This would prevent European companies from being discriminated against and allow them to participate in the tender, if they wanted to do so.