1.                  On 1 December 2004, Korea requested consultations with Japan pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), Article XXIII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994), Article 19 of the Agreement on Agriculture, and Article 6 of the Agreement on Import Licensing Procedures (Licensing Agreement) regarding Japan's import quotas on dried laver (1212.20-1-(1)) and seasoned laver (2106.90-2-(2)-E-(b)).  The request was circulated to Members on 3 December 2004.[1]

2.                  Consultations were held on 23 December 2004 and 21 January 2005, but these did not lead to a mutually satisfactory resolution of the matter.

3.                  On 4 February 2005, Korea requested the Dispute Settlement Body (DSB) to establish a panel pursuant to Article 6 of the DSU, Article XXIII:2 of the GATT 1994, Article 19 of the Agreement on Agriculture, and Article 6 of the Licensing Agreement.[2]

4.                  At issue were the import quotas imposed by Japan on dried laver (classified in Japan's customs tariff schedule under line 1212.20-1-(1)) and seasoned laver (classified in Japan's customs tariff schedule under line 2106.90-2-(2)-E-(b)) and the administration of these quotas by Japan.  Korea claimed that the import quotas on dried and seasoned laver are inconsistent with Japan's obligations under Article XI of the GATT 1994 and Article 4.2 of the Agreement on Agriculture and that the administration of these quotas is inconsistent with Article X:3(a) of the GATT 1994.[3]