RESTRICTED
WORLD TRADE G/SCM/Q2/JPN/11
14May1997
ORGANIZATION(97-2024)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Replies toQuestions posed bytheUNITED STATES1,
theEUROPEAN COMMUNITY2,KOREA3,CANADA4,ARGENTINA5
andTHAILAND6Regarding theNewandFullNotification ofJAPAN7
Thefollowing communication, dated 29April 1997, hasbeenreceived from thePermanent
Mission ofJapan.
_______________
REPLIES TOQUESTIONS FROM THE UNITED STATES
Q1. Please provide information concerning thefollowing programmes which didnotappear tobe
included within Japan ’snotification, yetmaymeetthenotification requirements ofGATT 1994and/or
theSCMAgreement. Please include information relevant totheelements requested inthenotification
format,orexplainthebasisonwhichJapandeterminedthateachprogrammedidnotmeetthenotification
requirements referenced above.
- Subsidy ofsupplying overseas economic information
- Subsidy ofoverseas public relations exhibits
- Subsidy oftheassociation topromote trade withdeveloping nations
- Subsidy forpromotion ofspecial types ofindustrial trade
- Subsidy foroperating overseas business office
- Subsidy ofdomestic management expenses
- Subsidies toJETRO (Japan External Trade Organization)
Answer
The"SubsidiestoJETRO(JapanExternalTradeOrganization)"includethe"Subsidyofsupplying
overseas economic information", the"Subsidy ofoverseas public relations exhibits", the"Subsidy of
theassociation topromote tradewithdeveloping nations", the"Subsidy forpromotion ofspecial types
ofindustrial trade", the"Subsidy foroperating overseas business office", the"Subsidy ofdomestic
management expenses" andtwomoresubsidies which arethe"Subsidy ofOverseas Economic Research"
andthe"Subsidy forImport Promotion andIndustrial Cooperation".
Japan didnotnotify these subsidies because theyaredesigned forJETRO, which isapublic
body, andnofinancial support isprovided foranyindustries orenterprises through JETRO.
1G/SCM/Q2/JPN/7,2G/SCM/Q2/JPN/4 &G/SCM/Q2/JPN/10,3G/SCM/Q2/JPN/1,
4G/SCM/Q2/JPN/2,5G/SCM/Q2/JPN/6 &G/SCM/Q2/JPN/9,6G/SCM/Q2/JPN/3,
7G/SCM/N/3/JPN +Rev.1, Corr.1 +Suppl.1.G/SCM/Q2/JPN/11
Page2
Thepolicy objectives ofthesubsidies areasfollows:
TheSubsidy ofSupplying Overseas Economic Information
Toprovide information onJapanese andoverseas economic trends, trade, industry, technology,
market developments, andbusiness practices.
TheSubsidy ofOverseas Public Relations andExhibits
Topromotemutualunderstandingamongcompanies,industries,andnationsthroughpublications,
seminars andexhibitions.
TheSubsidy oftheAssociation toPromote Trade withDeveloping Nations
Toassist developing countries bysupporting theirtradepromotion activities, promoting inward
andoutward investment, andother cooperating activities.
TheSubsidy forPromotion ofSpecial Types ofIndustrial Trade
Tosupport tradepromotion andindustrial cooperation activities byJETRO 'soverseas offices.
TheSubsidy forOperating Overseas Business Office
Tosubsidize thebasiccostsforoperating theoverseas offices ofJETRO, which include sending
stafffrom Japan, employing localstaff, office rent,etc.
Inaddition, thecorrect titleofthesubsidy isthe"Subsidy forOperating Overseas Office".
TheSubsidy ofDomestic Management Expenses
Tosubsidize personnel expenses ofJETRO staffinJapan.
TheSubsidy forOverseas Economic Research
Tocollect general information onoverseas economic trends, trade, industry, technology, market
developments andbusiness.
TheSubsidy forImport Promotion andIndustrial Cooperation
Toimplementavarietyofprojectsaimedatexpandingthevolumeandvarietyofimportsentering
Japan andtofoster industrial cooperation through technology transfers andmanufacturing investment
toandfrom Japan.
Q. Subsidy ofoperating expense forinvestigation ofoverseas market
Answer
Japan didnotnotify thesubsidy, because itisdesigned forthe"Japan-China Association on
Economy andTrade", the"Interchange Association", the"Japan Association forTrade withRussia
&Central-Eastern Europe" andthe"Japan Consulting Institute" which arenon-profit organizations,
andnofinancial support isprovided foranyindustries orenterprises through theorganizations. TheG/SCM/Q2/JPN/11
Page3
policy objective ofthesubsidy istoassist suchactivities asinvestigation ofoverseas markets bythe
organizations.
Q. Subsidy ofoperating expenses forimproving product quality anddesign
Answer
Japandidnotnotifythesubsidy,becauseitisdesignedforthe"JapanIndustrialDesignPromotion
Organization (JIDPO)" which isanon-profit organization, andnofinancial support isprovided for
anyindustries orenterprises through theJIDPO. Thepolicy objective ofthesubsidy istoimprove
thedesign ofindustrial goods bysupporting information services andtheindustrial design promotion
activitiessuchasexhibitionsofwell-designedproducts,internationaldesignexchange,etc.bytheJIDPO.
Q. Subsidies ofoperating expenses forurgent maintenance ofspecial facilities usedintheprivate
sector
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istoimprove industrial infrastructure byfacilitating projects to
construct public facilities forinternational trade fairs, international business exchange, promotion of
imports, research anddevelopment, etc.,which arecarried outbyprivate enterprises. Thesubsidy
isopentoprivate enterprises thatconstruct thepublic facilities above-mentioned.
Q. Subsidy ofoperating expenses topromote special exhibitions
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istopromote theholding ofunique andcreative expositions based
oninitiative andoriginality inregions. Thesubsidy isopentoorganizations thatareestablished by
localgovernments andeconomic organizations oftheregions, andholdsuchexpositions.
Q. Subsidy oftheexpenses forrecycling oldpaper
Answer
Japan didnotnotify thesubsidy because itisdesigned forthe"Paper Recycling Promotion
Centre Foundation" which isanon-profit organization, andnofinancial support isprovided forany
industries orenterprises through thefoundation. Thepolicy objective ofthesubsidy istopromote
paper recycling.
Q. Subsidy ofexpenses toprevent contamination fromnolonger usedoremines
Answer
Japan didnotnotify thesubsidy because itisdesigned forlocalgovernments andnofinancial
support isprovided foranyindustries orenterprises through thelocalgovernments. Thepolicy objective
ofthesubsidy istoassist theactivities oflocalgovernments forpreventing thepollution caused by
disused orabandoned mines. Inaddition, thecorrect titleofthesubsidy isthe"Subsidy forPreventing
Pollution from Disused andAbandoned Mines".G/SCM/Q2/JPN/11
Page4
Q. Subsidy ofexpenses tooperate themetal orebusiness group
Answer
Japan didnotnotify thesubsidy because itisdesigned forthe"Metal Mining Agency ofJapan"
which isapublic body, andnofinancial support isprovided foranyindustries orenterprises through
theagency. Thepolicy objective ofthesubsidy istoassist withtheactivities oftheorganization for
preventing pollution caused bymining. Inaddition, thecorrect titleofthesubsidy isthe"Subsidy
forOperating Expenses oftheMetal Mining Agency ofJapan".
Q. Subsidy ofexpenses forsafety strategies ofchemical materials
Answer
Japan didnotnotify thesubsidy because itisdesigned forthe"Chemicals Inspection &Testing
Institute,Japan"whichisanon-profitorganization,andnofinancialsupportisprovidedforanyindustries
orenterprises through theInstitute. Thepolicy objective ofthesubsidy istoassist theactivities for
ensuring public health andsafety from harmful effects onchemical substances.
Although the"Law concerning Examination andRegulation ofManufacture, etc.ofChemical
Substances"obligesmanufacturersandimporterstocertifythesafetyofchemicalsubstancesmanufactured
orimported commercially, itisthegovernment 'sdutytoexamine thesafety ofchemical substances
which were manufactured orimported commercially before enforcement oftheLaw.
Accordingly, onbehalf oftheJapanese Government, theInstitute isexamining safety ofexisting
chemical substances manufactured orimported commercially before theenforcement oftheLaw. In
addition, thecorrect titleofthesubsidy isthe"Subsidy onSafety Measures forChemical Substances".
Q. Subsidy ofexpenses toinvestigate thedevelopment ofnextgeneration aeroplanes
Answer
Japan isgoing tonotify thesubsidy. Thepolicy objective ofthesubsidy istofoster theglobal
project formation capability oftheJapanese aircraft industry through development ofasmall (90-120
seatclass) civilairplane.
Q. Subsidies ofexpenses formeasures toprevent pollution fromleather manufacturers
Answer
Japan isgoing tonotify thesubsidy. Thepolicy objective ofthesubsidy istoassist thesound
developmentofSmallandMedium-sizedEnterprises(SMEs)intheLeatherandLeatherGoodsIndustries.
Inaddition, thecorrect titleofthesubsidy isthe"Subsidy forLeather andLeather Goods Industries".
Q. Subsidy tosmooth outreforms ofspecial businesses
Answer
Japan didnotnotify thesubsidy because itisdesigned forthe"Industrial Structure Improvement
Fund(ISIF)"whichisapublicbody,andnofinancialsupportisprovidedforanyindustriesorenterprises
through ISIF. Thepolicy objective ofthesubsidy istosupport ISIFactivities inproviding informationG/SCM/Q2/JPN/11
Page5
concerning business innovation. Inaddition, thecorrect titleofthesubsidy isthe"Subsidy toFacilitate
Business Innovation".
Q. Subsidy todevelop newmaterial technology
Answer
Japan isgoing tonotify thesubsidy. Thesubsidy wasterminated inMarch 1996anditspolicy
objective wastoassist withtechnological development forNewIndustrialized Houses. Inaddition,
thecorrect titleofthesubsidy was"Assistance forTechnology Development ofNewMaterials for
Apartment Complexes".
Q. Subsidy ofrelief strategies fortortoise shellindustry
Answer
Japan isgoing tonotify thesubsidy. Thepolicy objective ofthesubsidy istoprovide relief
totheBekko andIvory Industries injured duetotheprohibition oftrade bytheConvention on
International Trade inEndangered Species ofWildFauna andFlora (CITES). Inaddition, thecorrect
titleofthesubsidy isthe"Subsidy forBekko andIvory Industries".
Q. Capital interest subsidy forequipment thatusedrecycled resources
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istopromote recycling ofresources byfacilitating theinstallation
ofequipment usedforrecycling ofresources. Thesubsidy isopentoenterprises thatinstall equipment
mentioned above.
Q. Subsidy ofoverseas economic cooperative fee
Answer
Japan didnotnotify thesubsidy because itisdesigned forpublic bodies andnon-profit
organizations,andnofinancialsupportisprovidedforanyindustriesorenterprises.Thepolicyobjective
ofthesubsidy istoassist theactivities forimproving industrial skills ofdeveloping countries andto
facilitate economic growth ofdeveloping countries. Inaddition, thecorrect titleofthesubsidy isthe
"Subsidy forOverseas Economic Cooperation Cost".
Q. Subsidy ofcooperative business research anddevelopment expenses
Answer
Thesubsidy isapartofthe"Subsidy forOverseas Economic Cooperation Cost" explained
intheprevious question. Thepolicy objective ofthesubsidy istosupport theresearch anddevelopment
activities indeveloping countries through research cooperation withJapanese institutions. Inaddition,
thecorrect titleofthesubsidy isthe"Subsidy forExpenses ofResearch Cooperation".G/SCM/Q2/JPN/11
Page6
Q. Subsidy expenses ofAsiaResearch Institute
Answer
Japan didnotnotify thesubsidy because itisdesigned forthe"Institute ofDeveloping
Economies"whichisapublicbody,andnofinancialsupportisprovidedforanyindustriesorenterprises.
Theobjective oftheInstitute istoconduct basic andcomprehensive studies oneconomic andrelated
affairs ofAsiaanddeveloping countries. Inaddition, thecorrect titleofthesubsidy isthe"Subsidy
totheInstitute ofDeveloping Economies".
Q. Subsidy forpromotion ofenvironment forindustrial redeployment
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istosolvetheproblem ofovercrowding inlargecities andtopromote
therelocation offactories from overcrowded districts inlarge cities tolocaldistricts, aimed atwell-
balanced development ofthenational land.
Thesubsidy isopentolocalgovernments thataccept therelocation offactories andprovide
facilities topreserve theenvironment inthedistricts where factories arerelocated, andtomanufacturing
enterprises thatrelocate theirfactories fromovercrowded districts tolocaldistricts andprovide facilities
foremployees neartherelocated factories.
Q. Subsidy forpromotion offacilities forindustrial re-deployment
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istosolvetheproblem ofovercrowding inlargecities andtopromote
therelocation offactories from overcrowded districts inlarge cities tolocaldistricts, aimed atwell-
balanced development ofthenational land. Thesubsidy isopentolocalgovernments andnon-profit
organizations (established bylocalgovernments andprivate enterprises) thataccept therelocation of
factories from overcrowded districts andprovide facilities foreducation, culture, orsports, etc.in
thedistricts where factories arerelocated, inorder toharmonize thefactories withlocalcommunities.
Q. Subsidy fortheimplementation andmaintenance ofadvanced applications
Answer
Japan didnotnotify thesubsidy because itisdesigned forlocalgovernments, andnofinancial
support isprovided foranyindustries orenterprises.
Thesubsidyprovidesfinancialassistancetolocalgovernmentsforconstructingfacilitiesnecessary
forimplementation ofthemodel projects ofadvanced information systems inthepublic sector, using
advanced information processing technologies suchasmultimedia.G/SCM/Q2/JPN/11
Page7
Q. Subsidies ofexpenses forindustrial usewaterways
Answer
Japan didnotnotify thesubsidy because itisforageneral infrastructure andhasapplied to
localgovernments andnofinancial support isprovided foranycertain industries orenterprises. The
policy objective ofthesubsidy istopromote theconstruction ofindustrial waterworks asindustrial
infrastructure forpreventing theground subsidence caused byexcess drawing ofground water, orfor
well-balanced industrial allocation, etc.
Q. Subsidy ofexpenses forinternational jointresearch anddevelopment
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istocontribute toenhancement oftheinternational levelofindustrial
technology aswellasadvancement ofinternational exchange. Thesubsidy isopentojointresearch
teams thatareorganized byindividual researchers andtoconduct basic research. Thefields ofthe
basic research areextensive, andthesubsidy isopentoforeign researchers too.
Q. Subsidy ofnewenergy andmanufacturing technology research organization
Answer
Japan didnotnotify thesubsidy because itisdesigned forthe"New Energy andIndustrial
Technology Development Organization (NEDO)" which isapublic body, andnofinancial support
isprovided foranyindustries orenterprises. Thepolicy objective ofthesubsidy istoassist with
personnel andmanagement expenses ofNEDO.
Q. Subsidy ofUnderground Deep OreNatural Resource
Answer
Japan isgoing tonotify thesubsidy. Thepolicy objective ofthesubsidy istocontribute to
thestable supply ofnonferrous metal resources inJapan bysupporting exploration forthose resources
athome andabroad bytheMetal Mining Agency ofJapan. Inaddition, thecorrect titleofthesubsidy
isthe"Subsidy forExploration ofUnderground Nonferrous Metal Resources".
Q. Subsidy ofraremetal stockpiling policy
Answer
Japan didnotnotify thesubsidy because itisdesigned forthe"Metal Mining Agency ofJapan"
which isapublic body, andnofinancial support isprovided foranyindustries orenterprises. The
policy objective ofthesubsidy istoprovide thefunds forthenational stockpile ofraremetals bythe
Agency. Inaddition, thecorrect titleofthesubsidy isthe"Subsidy fortheNational Stockpile ofRare
Metals".G/SCM/Q2/JPN/11
Page8
Q. Subsidy ofguidance formedium andsmall sized companies
Answer
Japan didnotnotify thesubsidy because itisdesigned forlocalgovernments, andnofinancial
support isprovided foranyindustries orenterprises. Thepolicy objective ofthesubsidy istoassist
consultation activities forSMEs bylocalgovernments.
Q. Subsidy topromote dataofmedium andsmall businesses
Answer
Japandidnotnotifythesubsidybecauseitisdesignedforthe"Information-TechnologyPromotion
Agency, Japan" which isapublic body, andnofinancial support isprovided foranyindustries or
enterprises. Thepolicy objective ofthesubsidy istopromote information technology useamong SMEs
through providing policy-related information viainternet aswellascarrying outresearch onhowto
promote information technology useamong SMEs.
Q. Subsidy topromote energy/environment compatibility ofmedium andsmall businesses
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istopromote R&D activities forsaving energy andprotection of
theenvironment. Thesubsidy isopentotheassociations thatareorganized bySMEs andconduct
theactivities mentioned above.
Q. Subsidy oftechnical guidance facilities
Answer
Japan didnotnotify thesubsidy because itisdesigned forlocalgovernments, andnofinancial
support isprovided foranyindustries orenterprises. Thepolicy objective ofthesubsidy istoassist
theconstruction offacilities providing technical training withSMEs bylocalgovernments.
Q. Subsidy oftechnical research anddevelopment
Answer
Japan didnotnotify thesubsidy because itisdesigned forlocalgovernments, andnofinancial
support isprovided foranyindustries orenterprises. Thepolicy objective ofthesubsidy istoassist
R&D projects forresolving common technical problems ofSMEs bylocalgovernments.
Q. Subsidy fortechnological improvements
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istoimprove technological capabilities ofSMEs through assisting
R&D activities fornewproducts etc.bySMEs.G/SCM/Q2/JPN/11
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Thesubsidy isopen toSMEs thatconduct theactivities mentioned above. Inaddition, the
correct titleofthesubsidy isthe"Subsidy forUpgrading Technologies forSMEs".
Q. Subsidy torevitalize regional technology
Answer
Japan didnotnotify thesubsidy because itisdesigned forlocalgovernments andnofinancial
support isprovided foranyindustries orenterprises. Thepolicy objective ofthesubsidy istoassist
R&D projects ortraining programmes bylocalgovernments formodernizing technological abilities
ofSMEs. Inaddition, thecorrect titleofthesubsidy isthe"Subsidy forRegional Technology
Development".
Q. Subsidy forpromoting themanufacture oftraditional craftproducts
Answer
Japan isgoing tonotify thesubsidy. Thepolicy objective ofthesubsidy istopromote Japanese
traditional craftproducts made bytraditional skills orways.
Q. Subsidy ofsmall scale business guidance expenses
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istoassist activities forimproving themanagement ofsmall-scale
enterprises. Thesubsidy isopentotheassociations thatareorganized bysmall-scale enterprises and
conduct theactivities mentioned above. Small-scale enterprises aredefined bytheLawonSupporting
Small Industries asfollows:
Thenumber offull-time employees total20orless,andforcommercial andservice business,
fiveorless.
Q. Subsidy oforganizational guidance fee
Answer
Japan didnotnotify thesubsidy because itisdesigned fortheunion ofassociations organized
bySMEs, andnofinancial support isprovided forcertain industries orenterprises. Thepolicy objective
ofthesubsidy istopromote organizing associations inSMEs andtofoster associations ofSMEs, etc.
Q. Subsidy ofmodernization offacilities formedium andsmall-sized businesses
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istofacilitate equipment modernization ofSMEs. Thesubsidy
isopentoSMEs thataredefined asfollows:
- Asformining andmanufacturing industries, full-time employees total1,000 orless,
orcapitalization ¥100 million orless.G/SCM/Q2/JPN/11
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- Asforwholesale industries, full-time employees total100orless,orcapitalization
¥30million orless.
- Asforretail orservice industries, full-time employees total50orless,orcapitalization
¥10million orless.
- Asformanufacturing andtheother industries, full-time employees total300orless,
orcapitalization ¥100 million orless.
Q. Subsidy forpromotion ofassociated businesses
Answer
Japan could notidentify whattheUSindicated.
Q. Subsidy ofmedium andsmall sized commerce promotion policies
Answer
Japan didnotnotify thesubsidy, because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istosupport suchprojects asconstructing facilities suchasstreet
lamps inshopping areas andconducting research onshopping areas oronnewtypes ofbusinesses in
theretail commerce sector. Thesubsidy isopentotheassociations thatareorganized byretail shops
andconduct theprojects mentioned above.
Q. Subsidy ofbasic business facilities andmaintenance
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istosupport theconstruction offacilities suchasparking lots,
community hallsandarcades, etc.inandaround shopping areas. Thesubsidy isopentotheassociations
thatareorganized byretailers andconduct theconstruction mentioned above.
Q. Subsidy ofmedium andsmall sized business groups
Answer
Japan didnotnotify thesubsidy because itisdesigned forthe"Japan Small Business Corporation
(JSBC)" which isapublic body, andnofinancial support isprovided foranyindustries orenterprises.
Thepolicyobjectiveofthesubsidyistoassisttheactivitiesofthecorporationsuchasguidance,personnel
training, information service, etc.forSMEs.
Q. Subsidy oftrustguarantee association fund
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istoassist thefunds ofthe"Credit Guarantee Corporation", which
isapublic body thatprovides loanguarantees forSMEs. Theloanguarantees areopentoSMEs.G/SCM/Q2/JPN/11
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Q. Subsidy ofinterest onregional medium andsmall sized businesses revitalization funds
Answer
Japan didnotnotify thesubsidy because itexpired inMarch 1994.
Q. Subsidy forthepromotion ofjointinternational aeroplane development
Answer
Japan isgoing tonotify thesubsidy. Thepolicy objective ofthesubsidy istopromote the
international cooperative R&D activities ofaircraft andaeroengines. Inaddition, thecorrect title
ofthesubsidyisthe"AssistanceforPromotingInternationalCooperativeDevelopmentofCivilAircraft".
Q. Interest subsidy offundfinancing forconstruction toprevent orepollution
Answer
Japan isgoing tonotify thesubsidy. Thepolicy objective ofthesubsidy istoprevent the
pollution caused bymetal mines.
Q. Industrial housing development interest subsidy
Answer
Japan didnotnotify thesubsidy because itisdesigned forlocalgovernments orlocalpublic
bodies andnofinancial support isprovided foranyindustries orenterprises. Thepolicy objective
ofthesubsidy istoassist thedevelopment ofindustrial sitesasgeneral infrastructure, bylocal
government orlocalpublic body. Inaddition, thecorrect titleofthesubsidy isthe"Interest Subsidy
forIndustrial SitesDevelopment".
Q. Subsidy ofmedium andsmall sized company operations improvement fund
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istoassist withthefinancing ofthe"People 'sFinance Corporation"
formanagerial improvement ofsmall-scale enterprises. Thefinancing isopentosmall-scale enterprises.
Small-scale enterprises aredefined bytheLawonSupporting Small Industries asfollows:
Thenumber offull-time employees total20orless,andforcommercial andservice
business, fiveorless.
Q. Medium andsmall sized company finance corporation subsidy
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istoassist thefinancing ofthe"Japan Finance Corporation for
Small Business" which isapublic bodyforproviding business funds toSMEs. Thefinancing isopen
toallSMEs.G/SCM/Q2/JPN/11
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Q. Programmes oftheMinistry ofInternational Trade &Industry
Sophisticated Information Network Project
Multimedia Information Centre
Education Software Development andUtilization Centre
Model Electronic Library Project
High Speed Network Research
Answer
1. TheSophisticated Information Network Project
Japan could notidentify whattheUSindicated.
2. TheMultimedia Information Centre
These arethefacilities established byoneoftheprojects under the"Subsidy forPromotion
ofEnvironment forIndustrial Redeployment", explained inanother answer.
Japan didnotnotify thesubsidy fortheCentre because thesubsidy wasdesigned forlocal
governments, andnofinancial support wasprovided foranyindustries orenterprises. Inaddition it
hadalready beenimplemented andwasterminated in1993.
3. TheEducation Software Development andUtilization Centre
Thisisthefacility established within theAgency byoneoftheprojects under the"Subsidy
forActivities oftheInformation-Technology Promotion Agency".
Japandidnotnotifythesubsidybecauseitisdesignedforthe"Information-TechnologyPromotion
Agency" which isapublic body, andnofinancial support isprovided foranyindustries orenterprises.
Thepolicy objective ofthesubsidy isthepromotion ofinformation technology andtheutilization of
computer programmes without discrimination between domestic andforeign. Inaddition, thecorrect
name oftheCentre isthe"Educational Software Development andPromotion Centre".
4. TheModel Electronic Library Project
Thiswasoneoftheprojects under the"Subsidy forActivities oftheInformation-Technology
Promotion Agency". Japan didnotnotify thesubsidy fortheProject because thesubsidy wasdesigned
forthe"Information-Technology Promotion Agency" which isapublic body, andnofinancial support
wasprovided foranyindustries orenterprises. Thepolicy objective ofthesubsidy wastobuild up
thebasictechnologies forthefuture electronic library inorder tomodernize public libraries. Inaddition,
ithadalready beenimplemented andwasterminated in1993. Furthermore, thecorrect titleofthe
project isthe"Pilot Electronic Library Project".
5. TheHigh Speed Network Research
Japan could notidentify whattheUSindicated.G/SCM/Q2/JPN/11
Page13
Q. Geothermal Energy Programme
Answer
Theprogrammeseemstocorrespondtothe"SubsidyfortheGeothermalDevelopmentPromotion
Survey", the"Subsidy fortheDrilling CostofanExploratory WellforGeothermal Power Plants",
andthe"Subsidy fortheCostofDevelopment ofGeothermal Power Generations". Japan isgoing
tonotify thesubsidies. Geothermal energy isclean, renewable andanalternative tooil,andemits
fewCO2.Thepolicy objective ofthisprogramme istopromote theuseofsuchgeothermal energy
andtofacilitate geothermal power generation.
Q. Subsidies toForeign Access Zones (FAZs)
Answer
Japan didnotnotify thesubsidies because theyaredesigned forlocal governments, andno
financial support isprovided foranyindustries orenterprises through thelocal governments. The
policy objective ofthesubsides istosupport import-promoting measures implemented bylocal
governments asFreeAccess Zone-related activities, suchastheexhibition ofimport products andthe
supply ofimport-related information. FreeAccess Zones (FAZs) aredesignated areas inandaround
aportorairport inwhich import related facilities suchasexhibition centres areconcentrated topromote
imports. There arenosupporting measures forthepromotion ofexports. Twenty-one areas have
already been designated asFAZs. Inaddition, thecorrect titleofthesubsidy isthe"Subsidy to
Encourage Activities toPromote theCongregation ofImport-Related Businesses".
Q. Subsidies tothepetrochemical sector (anestimated ¥36billion) tofacilitate "structural
adjustment" plans, including theformation ofjointventures andalliances.
Answer
Japan could notidentify what theUSindicated. Japan would appreciate itiftheUScould
clarify orsupply further information toidentify thesubsidies.
Q. LawonExtraordinaryMeasuresforStructuralImprovementoftheTextileIndustries-Introduced
in1989, theprogramme administered bytheTextile Industry
TheRationalization Agency hasaided small tomedium textile producers tomodernize their
facilities toupgrade quality andproductivity (35projects werefinanced atacostof¥11.7 billion).
Theprogramme wasreportedly settoexpire in1994 -isthatthecase?
Answer
Theprogramme thattheUSisindicating seems tobethe"Loan Guarantee fortheStructural
AdjustmentofTextileIndustrybytheTextileIndustryRestructuringAgency".Japanhasalreadynotified
theloanguarantee, andithasnotbeenterminated.G/SCM/Q2/JPN/11
Page14
Q. Subsidy toMitsubishi Heavy Industries forbuilding Bombardier 'sGlobal Express Business
Jet
Answer
Japan doesnothavethissubsidy. What theUSpoints outmight beaprivate jointventure
between private companies ofMitsubishi Heavy Industries andBombardier.
Q. Subsidy toJapan Aircraft Development Corporation of$133.2 million forstart-up ofBoeing 767
co-production incooperation withMitsubishi, Kawasaki andFuji(International Aircraft
Development Fund -IADF)
Answer
Japan didnotnotify thesubsidy because itexpired inJune1986. Inaddition, thecorrect title
ofthissubsidy isthe"Subsidy fortheDevelopment ofaMid-Sized Civil Aircraft (YX/767)".
Q. Support forflatpanel display
Answer
Japan could notidentify whattheUSindicated.
REPLIES TOQUESTIONS FROM THE EUROPEAN COMMUNITY
I(b) Grants forthecoalmining industry
- Canacompany benefit cumulatively fromthedifferent subsidy programmes forthe
coalmining industry?
- Arethebenefits under these programmes available torelated activities suchassteel
production?
- Could Japan elaborate onthecriteria foreligibility? Isthere aceiling tothe
benefits?
Answer
Itispossible thatacompany benefits cumulatively fromthedifferent subsidy programmes for
thecoalmining industry. Thebenefits under thegrants areavailable onlytothecoalmining industry.
Concerning thecriteria foreligibility, thegrants areavailable tocoalmining enterprises engaged in
mining inashaft where income isbelow acertain level. Theamount ofthegrants which isgiven
tocoalmining enterprises isdetermined considering annual production output, decreased production
rateandother factors. There isaceiling tothebenefits, andtheceiling ofthesubsidy toeachcompany
isdecided onthebasis oftheleastannual production output ofthecompany inandafter1986.
I(c) Subsidy andloanguarantee forthepromotion oftextiles
- Could Japan givethecriteria foreligibility?G/SCM/Q2/JPN/11
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- Arethesebenefits equally available toimported textiles, domestically produced textiles
andexported textiles (assuggested inthestatistical data)?
- Canthese programmes becumulated withthetaxincentive "additional depreciation
onmachinery"?
- According toapublication oftheMinistry ofFinance (Hojyokin Soran), theTextile
Industry Rationalization Agency operates twodifferent programmes e.g.projects for
promotion ofthetextile industry (senisangyo shinko suishinhi hojyokin) andguidance
onpromotion ofthetextile industry (senisangyo shinko shidohi hojyokin). Could Japan
explain whether bothprogrammes arecovered bythenotification?
- According toapublication oftheMinistry ofFinance (Hojyokin Soran), thetotalbudget
forbothprogrammesisaround¥507,000,000.CouldJapanexplainwhythenotification
listsafigure of¥72million?
Answer
The"Subsidy forpromotion ofthetextile andapparel industries" isavailable tothegroups
ofenterprises intextile andapparel industry whose structural adjustment plansconcerning rationalization
ofsalesand/or inventory management wereapproved under the"Law onExtraordinary Measures for
Structural Improvement oftheTextile Industry".
The"Loan Guarantees forPromotion oftheTextile andApparel Industries" areavailable to
thegroup ofenterprises intextile andapparel industry whose structural adjustment plans wereapproved
under the"Law onExtraordinary Measures forStructural Improvement oftheTextile Industry".
Thegroups ofenterprises intextile andapparel industries undertaking oneofthefollowing
terms areeligible forapproval under theLaw.
1. Development ofnewproducts ornewtechnologies
2. Modernization ofequipment
3. Adjustment inproduction scale andproduction method
4. Rationalization ofsalesand/or inventory management
5. Adjustment ofmanagement scale
Textile andapparel enterprises inJapan, including importers, exporters andmanufacturers
located inJapan areeligible fortheprogrammes. Itispossible thattheprogrammes arecumulated
withthetaxincentive "additional depreciation onmachinery".
Concerning the"Subsidy forPromotion ofTextile andApparel Industry", Japan hasalready
notified it.
Concerning the"Subsidy forGuidance onPromotion ofTextile andApparel Industry", Japan
isgoing tonotify it.
Thefigure of¥72million inthenotification means thattheamount ofthesubsidy fortheTextile
Industry Restructuring Agency, apublic body, andthatofthesubsidy forGuidance onPromotion of
Textile andApparel Industry areexcluded from thetotalbudget.G/SCM/Q2/JPN/11
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QII-1. Equity capital under theLawofExtraordinary Measures fortheStructural Improvement of
theTextile Industry
AlthoughJapannotifiedtheLoanGuaranteeprogrammeforstructuralimprovementoftheTextile
Industry,theCommunityfoundthattheIndustrialStructureImprovementFund(ISIF)administersanother
programme providing capital infusion totextile companies.
Under thisprogramme, aneligible company could obtain upto2/3oftheauthorized capital
fromtheISIF. Thelegislation provides thatnospecific rateofreturn isrequired.
TheCommunity requests Japan tonotify thisprogramme under Article 25.
Answer
Japan isgoing tonotify theprogramme.
QII-2. Assistance fortheestablishment ofChemical Uranium Concentration Technologies
TheMinistry ofInternational Trade andIndustry (MITI) gives grants toprivate enterprises
which areinvolved inthedevelopment ofchemical methods foruranium enrichment. Theprogramme
isestablished bytheLawonspecial accounts forelectric power development acceleration measures.
Thegrants cover upto1/3oftheexpenses.
TheCommunity requests Japan tonotify thisprogramme under Article 25.
Answer
Japan didnotnotify theassistance because itexpired inMarch 1991. Inaddition, thecorrect
titleoftheassistance wasthe"Subsidy forResearch andDevelopment ofChemical Uranium
Concentration Technologies".
QII-3. Assistance forthePromotion ofInternational Cooperative Development ofCivilAircraft
TheInternational Aircraft Development Fund issues grants toprivate (andpublic institutions)
topromote theinternational development ofcivilaircraft. Theprogramme isestablished bytheAircraft
Industry Promotion Lawandthegrants cover upto50percentoftheexpenses.
TheCommunity requests Japan tonotify thisprogramme under Article 25.
Answer
Japan isgoing tonotify theprogramme. Inaddition, thecorrect titleoftheassistance isthe
"Assistance forPromoting International Cooperative Development ofCivil Aircraft".
QII-6. Japan Finance Corporation
TheJapan Finance Corporation provides general andspecial purpose loans toSMEs inJapan
(Japan Finance Corporation forSmall Business Law). SMEmeeting thegovernment 'spolicy criteria
areeligible forloans atpreferential rates. Anequipment loancanbeaslarge as¥600 million.
TheCommunity requests Japan tonotify thisprogramme under Article 25.G/SCM/Q2/JPN/11
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Answer
Japandidnotnotifytheprogrammebecauseitisnotdesignedforcertainindustriesorenterprises.
Thepolicy objective oftheprogramme istoprovide business funds toSMEs. Thefundisopento
allSMEs defined intheSmall andMedium Enterprise Basic Law.
QII-7. Japan Small Business Credit Insurance Corporation
Under theSmall Business Credit Insurance Corporation LawandtheSmall Business Credit
Insurance Law, thesmall business credit insurance corporation issues credit insurance toSMEs at
preferential rates. Thecredit guarantees canbeupto¥220 million.
TheCommunity requests Japan tonotify thisprogramme under Article 25.
Answer
Japandidnotnotifytheprogrammebecauseitisnotdesignedforcertainindustriesorenterprises.
TheJapan Small Business Credit Insurance Corporation, which isapublic body, issues insurance for
theCredit Guarantee Corporation inprefectures, which arepublic bodies toissueloanguarantees for
SMEs.
QII-8. Assistance forOpen Fundamental Software Technology Project
TheMinistry ofInternational Trade andIndustry developed asubsidy scheme forthepromotion
anddevelopment ofsoftware projects. TheInformation Technology Promotion Agency isresponsible
forselecting eligible projects. Grants cover upto67percentoftheproject costs.
TheCommunity requests Japan tonotify thisprogramme under Article 25.
Answer
Japan didnotnotify theassistance because itisdesigned fortheInformation-Technology
Promotion Agency which isapublic body, andnofinancial support isprovided foranyindustries or
enterprises. Thepolicy objective ofthisassistance isthepromotion ofinformation technology and
evolution andadvancement ofopen systems through research, development andevaluation ofthe
technologies forfundamental software bytheInformation-Technology Promotion Agency.
QII-10. Subsidies fortechnological improvement ofSMEs
MITI provides grants tocover expenses forinvestments innewtechnology, newproduction,
pollution prevention. Theprogramme foresees adirect subsidization byMITI orajointsubsidization
byMITI andalocal government.
TheCommunity requests Japan tonotify thisprogramme under Article 25.
Answer
Japan didnotnotify thesubsidy because itisnotdesigned forcertain industries orenterprises.
Thepolicy objective ofthesubsidy istoimprove technological capabilities ofSMEs through assisting
R&D activities fornewproducts, etc.bySMEs.G/SCM/Q2/JPN/11
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Thesubsidy isopen toSMEs thatconduct theactivities mentioned above. Inaddition, the
correct titleofthesubsidy isthe"Subsidy forUpgrading Technology forSMEs".
QII-13. Subsidy formeasures tocopewithpollution intheleather shoes industries
(Seikagyo Kogai Taisakuhi Hojyokin)
Thisprogramme operated byMITI, aimstoimprove technology intheleather industry. The
Community considers thatthetitleoftheprogramme ismisleading since itimplies environmental
assistance while theprogramme aimstoprovide benefits totheproduction ofleather.
TheCommunity requests afullnotification ofthisprogramme under Article 25.Could Japan
clarify inparticular thepurpose oftheprogramme?
Answer
Japan isgoing tonotify thesubsidy. Thepolicy objective ofthesubsidy istoassist thesound
development ofSMEs intheLeather andLeather Goods Industries. Inaddition, thecorrect titleof
thesubsidy isthe"Subsidy forLeather andLeather Goods Industries".
QII-14. Fund ofguarantee andobligations
Thisprogramme provides forfinancial assistance tocompanies fortechnical research and
collection ofdata.
- TheCommunity requests afullnotification ofthisprogramme under Article 25.
- Could Japan clarify whatindustries mainly benefit fromthisfund?
- Could Japan explain howthefundisfinanced and,inparticular, whatamount is
provided bytheJapan Leather Industry Association?
Answer
The"Fund ofGuarantee andObligations" seems tocorrespond tothe"Fund forLoanGuarantee
forLeather andLeather Goods Industries". ThisFund isdesigned forleather andleather goods
manufacturing enterprises, andoperated by"Japan Leather andLeather Goods Industries Association"
andthe"Tanners 'Council ofJapan". Todate, however, theloanguarantee based ontheFund has
notbeenutilized. Thefinancial contribution oftheGovernment totheFundasaformofcapital infusion
wasmade before thenewAgreement came intoeffect.
REPLIES TOFOLLOW-UP QUESTIONS FROM THE EUROPEAN COMMUNITY
D. SUBSIDIES PAID VIAPUBLIC BODIES
WillJapan notify allsubsidies paidviapublic bodies? During thereview, Japan frequently
denied theexistence ofasubsidy, claiming thatthemoney hadbeentransferred fromtheGovernment
toanother public body. Anexample istheInformation Technology Promotion Agency (Question 8,
page4ofdocument G/SCM/Q2/JPN/4).G/SCM/Q2/JPN/11
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E. SUBSIDIES PAID VIALOCAL GOVERNMENT
WillJapan notify allsubsidies paidvialocalgovernment? During thereview, Japan frequently
denied theexistence ofasubsidy onthegrounds thatthemoney hadbeentransferred fromcentral to
local government. Anexample isthesubsidy torevitalize regional technology (MITI).
Intheopinion oftheCommunity, Japan should notify suchsubsidies paidvialocalgovernment
inJapan.
Answer
Ifasubsidy provides afinancial contribution tocertain industries orenterprises through public
bodies orlocal governments, andabenefit isthereby conferred, Japan willnotify suchasubsidy.
Thesubsidies, however, mentioned intheabove questions donotcorrespond totheabove mentioned
case.
Concerning theexample oftheInformation-Technology Promotion Agency, Japan didnotnotify
theassistance because nofinancial support isprovided foranyindustries orenterprises. Thepolicy
objectiveofthisassistanceisthepromotionofinformationtechnologyandtheevolutionandadvancement
ofopen systems through research, development andevaluation ofthetechnologies forfundamental
software bytheAgency.
Concerning theexample ofthesubsidy torevitalize regional technology, Japan didnotnotify
thesubsidy because itisdesigned forlocalgovernments andnofinancial support isprovided forany
industries orenterprises. Thepolicy objective ofthesubsidy istoassist R&D projects ortraining
programmes bylocalgovernments formodernizing technological abilities ofSMEs.
F. SMEs
Could Japan provide thevarious definitions ofsmall andmedium-sized enterprises initssubsidy
programmes?
Answer
Ingeneral, thefollowing definition provided bytheSmall andMedium Enterprise Basic Law
isusedforsubsidies toSMEs.
Applicable law Industries Employees andcapital size
Small andMedium
Enterprise Basic LawMining, manufacturing and
other industries
Wholesaling
Retailing andservices300orlessemployees, or
¥100 million orless.
100orlessemployees, or
¥30million orless.
50orlessemployees, or
¥10million orless.
SomesubsidyprogrammesapplyslightlydifferentdefinitionsofSMEsinresponsetothepurpose
oftheprogramme andthedefinition provided inthespecific lawwhich theprogramme isbased on.G/SCM/Q2/JPN/11
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Forexample, theLawonFinancial andOther Assistance forSmall Business Modernization
provides thefollowing definitions ofSMEs.
Applicable law Industries Employees andcapital size
LawonFinancial andOther
Assistance forSmall Business
ModernizationManufacturing andother
industries
Wholesaling
Mining
Retailing andservices300orlessemployees, or
¥100 million orless.
100orlessemployees,or
¥30million orless.
1,000 orlessemployees, or
¥100 million orless.
50orlessemployees, or
¥10million orless.
REPLIES TOQUESTIONS FROM KOREA
Q6. Subsidy forpromotion oftextile andapparel industry
Q7. Loan guarantee forpromotion oftextile andapparel industry
Initsnotification, Japan indicated thatthesetwosubsidies (grants andloanguarantees) which
promote thetextile andapparel industry areprovided tothegroups ofenterprises approved under the
LawonExtraordinary Measures fortheStructural Improvement oftheTextile Industry.
Could Japan provide amore detailed explanation ofthecriteria usedforapproval andthe
conditions ofthesubsidy inconnection withtheproduction, export/import andstructural adjustment
cost,etc?
Inaddition tothat,cangrants andloanguarantees bothbegiven toanenterprise atthesame
time?
Answer
The"Subsidy forpromotion ofthetextile andapparel industries" isavailable tothegroups
ofenterprises intextile andapparel industry whose structural adjustment plansconcerning rationalization
ofsalesand/or inventory management wereapproved under the"Law onExtraordinary Measures for
Structural Improvement oftheTextile Industry".
The"Loan Guarantees forPromotion oftheTextile andApparel Industries" areavailable to
thegroup ofenterprises intextile andapparel industry whose structural adjustment plans wereapproved
under the"Law onExtraordinary Measures forStructural Improvement oftheTextile Industry".
Thegroups ofenterprises intextile andapparel industries undertaking oneofthefollowing
items areeligible forapproval under theLaw.
1. Development ofnewproducts ornewtechnologies
2. Modernization ofequipment
3. Adjustment inproduction scale andproduction method
4. Rationalization ofsalesand/or inventory managementG/SCM/Q2/JPN/11
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5. Adjustment ofmanagement scale
These programmes arenotcontingent onproduction, export orimport performance.
Furthermore, itispossible thatbothgrants andloanguarantees aregiven toanenterprise atthesame
time.
REPLIES TOQUESTIONS FROM CANADA
Q1. Thenotification indicates thatbudgeted grants forthesecurity ofmines amounted tosome
¥4,290 million. Could Japan provide further information onwhatismeant by“security formines ”;
i.e.whattypes ofactivities doesthisprogramme encompass? CanJapan clarify whatproportion of
thebudgeted funding hasactually beendisbursed?
Answer
Thisprogramme subsidizes thefollowing projects tosecure thesafety ofcoalmines.
1. Safety instruments andequipment
2. Drilling formethane gasdrainage andfore-most boring
3. Sealing (shutting-off ofshafts andlevels toprevent spontaneous combustion)
4. Packing (filling toprevent wind leakage ortocontrol ground pressure)
5. Repair andenlargement oflevels andshafts
6. Water-proofing
7. Prevention ofspontaneous combustion inlevels
In1994, grants of¥4,290 million werebudgeted, andtheamount ofthegrantactually disbursed
was¥2,533 million. So,thegrant proportion actually disbursed was59%in1994.
Q5. ThenotificationofJapandoesnotappeartomakeanyparticularreferencetoassistanceprovided
totheautomotive orcivilaircraft sectors. Does Japan offerassistance within themeaning ofthe
Subsidies Agreement tothese sectors?
Answer
Japan hasthefollowing twoprogrammes which Japan isgoing tonotify intheaircraft sector.
1. TheSubsidy ofExpenses toInvestigate theDevelopment ofNext Generation Aeroplanes
Thepolicy objective ofthesubsidy istofoster theability forglobal project formation inthe
aircraft industry through development ofasmall (90-120 seatclass) civilaeroplane.
2. TheAssistance forPromoting International Cooperative Development ofCivil Aircraft
Thepolicy objective oftheassistance istopromote theinternational cooperative R&D activities
ofaircraft andaeroengines.
Japan doesnotmaintain anysubsidy which isdesigned fortheenterprises intheautomotive
sector.G/SCM/Q2/JPN/11
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REPLIES TOQUESTIONS FROM ARGENTINA
Q1. Withregard totheSubsidy Programme forModernizing CoalPits,could youspecify thenumber
ofcompanies receiving suchaidswithin themeaning ofArticle 2.1(c) oftheSubsidies Agreement, in
order tobeabletodetermine whether ornottheyarespecific?
Answer
Thenumber ofcompanies granted wasthree in1995.
REPLIES TOFOLLOW-UP QUESTIONS FROM ARGENTINA
Q. Regarding Question No.1fromArgentina, could Japan inform whatwasthecriteria usedto
choose thethree enterprises thatbenefitted fromthesubsidy formodernization ofcoalfields inorder
toanalyze whether thatmeets theobjective criteria establishing Article 2oftheAgreement onSubsidies
andCountervailing Measures?
Answer
Inorder tousethegrants oftheprogramme, itisnecessary tosatisfy allthefollowing criteria.
1. Having mining rights
2. Producing coalbyunderground mining
3. Having anappropriate planthatexcavates shafts incoalmines
4. Having sufficient financial fundamental andtechnological capabilities toimplement theplan,
and
5. Being twoyears ormore concerning theperiod ofcoalmining using shafts, orhaving shafts
thatareusedonlyfortransportation andthathavetheextension of100m ormore intheplan.
Q2. Withregard totheProgramme forthePromotion oftheTextile andApparel Industry, could
Japan specify therequirements tobefulfilled bycompanies inorder toqualify foraidunder these
programmes?
Answer
The"Subsidy forPromotion oftheTextile andApparel Industries" isavailable tothegroups
ofenterprises intextile andapparel industry whose structural adjustment plansconcerning rationalization
ofsalesand/or inventory management wereapproved under the"Law onExtraordinary Measures for
Structural Improvement oftheTextile Industry".
Thegroups ofenterprises inthetextile andapparel industries undertaking oneofthefollowing
items areeligible forapproval under theLaw.
1. Development ofnewproducts ornewtechnologies
2. Modernization ofequipment
3. Adjustment inproduction scale andproduction method
4. Rationalization ofsalesand/or inventory management
5. Adjustment ofmanagement scaleG/SCM/Q2/JPN/11
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Q3. Programme ofLoan Guarantees forthePromotion oftheTextile Apparel Industry
Could Japan statewhether theloanguarantees provided under thisProgramme include export
credit guarantees asspecified inAnnex I,paragraph (j),oftheSubsidies Agreement.
Answer
Theprogramme does notinclude anyexport credit guarantees asspecified inAnnex I,
paragraph (j),oftheSubsidies Agreement.
Q7. Willthenotified programmes bemaintained inthefuture oncetheyhavecome toanend(cases
ofcoal, textile industry, shipbuilding andsalmon)?
Q7.1 What arethestatistical dataforcalculating thetrade effects andmargin ofsubsidy?
Answer
(Coal, textile industry)
Thenotified programme forcoalwillnotbemaintained afterFY2001. Ithasnotyetbeen
decided whether thenotified programme fortextiles willbeextended ornot.
Thestatistical datausedinthenotification arethelatest available fordomestic production,
imports, exports anddomestic consumption obtained intheIndustrial Statistics, andtheExport and
Import Statistics.
REPLIES TOQUESTIONS FROM THAILAND
Subsidy programmes notnotified totheWTO
1. DoesJapan maintain anyexport incentive scheme, i.e.dutyandtaxconcession, export refund,
freezones, during thenotification period? Ifyes,please givedetails according tothenotification format.
Answer
Japan doesnotmaintain anyexport incentive schemes suchasthose prohibited intheSubsidies
Agreement.