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Japan
Japan believes that Canada should take all necessary steps to implement all of the recommendations of the DSB within 90 days of the date of the adoption of the Panel and Appellate Body reports.
Japan notes that Canada has accepted that the measures found to be inconsistent with the Agreement on Subsidies and Countervailing Measures (“SCM Agreement”) will be brought into conformity within such a 90-day period, and emphasizes that all measures addressed by the Panel and the Appellate Body are administrative rather than legislative measures. For these reasons,Japan considers that all DSB recommendations and rulings should be implemented “immediately” by Canada, unless Canada can demonstrate that immediate implementation is impracticable. In Japan's view, the reference to “prompt compliance” in Article 21.1 of the DSU and previous arbitration awards establish that an implementing Member bears the burden of proving that immediate compliance is impracticable, and that the “reasonable period of time” it proposes for implementation is appropriate.