1. Management of the three tariff quotas opened for imports of leather into Japan and the effects on Community interests of the subsidies granted to the Japanese leather industry by the Japanese Government constitute 'obstacles to trade` within the meaning of Article 2 of Regulation (EC) No 3286/94.
2. The European Community takes action against Japan pursuant to the Understanding on Rules and Procedures Governing the Settlement of Disputes and any other relevant provision of the Marrakech Agreement Establishing the World Trade Organisation with regard to the obstacles to trade identified in Article 1(1).