The United States says it will consider the use of trade sanctions against Japan following a World Trade Organisation ruling in a dispute over the sale of American photographic products.

In its interim report, the WTO rejected claims by the Kodak company that the Japanese government had conspired with Japan's Fuji film company to keep Kodak products off the shelves in Japanese shops. Fuji dominates the Japanese market, but the company denies any conspiracy.

Responding to the ruling, the US Trade Representative, Charlene Barshefsky, said America would continue to press vigorously for meaningful access to the Japanese market, and would consider using sections of the Trade Act that relate to sanctions to pursue its case.

The Chairman of Kodak, George Fisher, is describing the ruling as a complete loss for America.

He said it defied the principles of free trade and open markets. Mr Fisher added that while the world's financial markets have recognised that America is open to foreign competition but Japan is not. The WTO had failed to accept that fact, he said.
 

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