Resolution of the U.S.- Japan Apple Dispute: New Opportunities for Trade

Overview

The World Trade Organization (WTO) ruled in June 2005 that Japan's phytosanitary protocol related to fire blight for imports of U.S. apples was not justified and was in breach of Japan's WTO commitments. In August 2005, Japan issued a new phytosanitary protocol that complies with the WTO ruling. With the elimination of the restrictive fire-blight protocol, U.S. producers have a new opportunity to export apples to a high-quality export market, at a significantly lower cost than before. This analysis estimates that over the long run, Japanese apple imports will increase by an average of $144 million per year but that substantial variation from the average import estimate would be likely because of fluctuating market conditions from season to season.