In the 3 year history of the World Trade Organization, the United States has used the dispute resolution system as a market-opening wedge for American business.

      The U.S. has won or settled all 15 of its complaints ruled on as of January 1998, because it has brought strong cases supported by clear evidence of foreign government intervention in the marketplace.

Until now.

      The WTO considered arguments presented in 20,000 pages of documentation submitted by the U.S. and Japan in their dispute over Japan's film market.

      The U.S. failed to present clear evidence of government interference in the Japanese film market.

      Why couldn't the U.S. present clear evidence?   Because there are no facts supporting Kodak's claims in this case.

      In fact, it was only aggressive lobbying pressure by Kodak which led the U.S. to open this case. Earlier, the U.S. government failed to find enough evidence to pursue unilateral sanctions under domestic trade legislation known as Section 301.

      The real story behind this case is one of intense global competition between two giants of film:

Kodak and Fujifilm.

      It is a story of two corporations, each of which holds a similar share of the world film market, and each of which dominates its home market.

      It is a story of the rewards of innovation and risk-taking, and the penalties of unimaginative corporate policies.

      Most importantly, it is a story of two companies, not two countries.

The following pages reveal why the WTO turned aside the U.S. complaint.