On January 30, 1998, the World Trade Organization (WTO) panel issued a final report rejecting all 21 points in a complaint brought by the U. S. Trade Representative (USTR) regarding alleged Japanese government actions restricting imports to Japan's consumer film market.

     The originator of the case was Eastman Kodak, which on May 18, 1995 filed a complaint under Section 301 of the U. S. Trade Act.   Kodak charged that anti-competitive practices by Fujifilm have blocked Kodak's access to the photographic paper and film markets in Japan.

     Fujifilm's 595-page report, Rewriting History, rebutted each of Kodak's charges and showed them to be largely based on distortions of fact.

     In mid-1996, USTR, having failed to make a case under Section 301, decided to submit its claims to WTO.

     Kodak called the film case one of the best-documented ever.   But as the Asian Wall Street Journal reported on December 8, 1997:

     "many trade experts, including some U. S. officials, had viewed the case as weak, partly because it relied on old evidence and attacked vertical distribution alliances common in many countries."

     On February 3, 1998, USTR announced that it would not appeal the WTO panel ruling.   Instead, USTR said it would establish an interagency committee to monitor Japan's film market.

     USTR's action ignores the WTO panel's report, which stated that no government regulations, administrative guidance or other measures in the Japanese film market either restrain competition or limit sales of imported film.

     In July, 1997, the Japan Fair Trade Commission study also stated that there are no barriers to market entry or business practices in the Japanese film market which violate Japanese anti-monopoly law.

    "Focus on Film" is the latest update, summarizing key background facts related to the WTO decision in favor of Fujifilm in the film case.
     "Know the Facts" explains in further detail why Kodak lost the WTO case. "Kodak Mistakes in Japan" details Kodak's mismanagement in Japan, while Hidden Facts exposes distortions in Kodak's charges about Japan's film market.