JAPAN - MEASURES AFFECTING DISTRIBUTION SERVICES

                                        Request for Consultations by the United States

        The following communication, dated 13 June 1996, from the Permanent Mission of the United States to the Permanent Mission of Japan and to the Dispute Settlement Body, is circulated in accordance with Article 4.4 of the DSU.

                                                            _______________

        My authorities have instructed me to request consultations with the Government of Japan pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) and Article XXIII:1 of the General Agreement on Trade in Services (GATS) regarding measures affecting distribution services, applied by the Government of Japan pursuant to or in connection with the Law Pertaining to Adjustment of Business Activities of the Retail Industry for Large Scale Retail Stores, and related legislation, regulations, and administrative measures.

        The United States considers that, through these measures, the Government of Japan fails to carry out its obligations and specific commitments under Article III and Article XVI of the GATS.  The United States also considers that these measures nullify or impair benefits accruing to the United States directly or indirectly under the GATS, within the meaning of Article XXIII:3.  The United States reserves the right to raise additional factual claims and legal matters during the course of the consultations.

        We look forward to receiving your reply to this request and to fixing a mutually convenient date for consultations.