WORLD TRADE  
ORGANIZATION  G/SCM/Q2/JPN/36 
16 March 2004 
 (04-1159) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Questions Posed by the UNITED STATES  
Regarding the New and Full Notification of JAPAN1 
 
  The following communication, dated 15 March 2004, is being circulated at the request of the Permanent Delegation of the United States.  
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I. INDUSTRY 
Programme to Promote Research and Development of Regional Technology
 
 
1. It is our understanding that Japan has four pr iority areas for R&D: biotechnology, information 
technology (IT), environment-related, and nano-tec hnology and materials.  Could you please explain 
whether the approval of funds under this programme is based upon whether the application relates to 
these four priority areas?  
Subsidy for Japan Small and Medium Enterprise Corporation  
 
1. According to Japan’s notification, this progra mme provides grants to promote “the electronic 
commerce of the small enterprises of the textile in dustry, the support for educational training, the 
promotion of the silk goods.”  Could you please provid e more details regarding the specific types of 
products that can be funded through grants from this  programme?  What percentage of funds goes to 
textile companies?  
2. Could you please provide more information as to  the eligibility criteria for a company to 
receive a grant through this programme?   
Subsidy for the Development of Information Technology which Create New Industries  
 1. Is the programme available only to small- or me dium-sized enterprises, or to all companies? 
2. Could you please provide more information as to  the eligibility criteria for a company to 
receive a grant through this programme?     
3. During the April 2001-March 2002 reporting peri od, how many companies received grants 
under this programme? 
                                                     
 
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Real World Computing (RWC) Programme
 
 1. Could you please provide further information rega rding the type of subsidy that is provided 
for under this programme ( i.e., grant, tax concession, loan, etc.)? 
2. Could Japan please explain who are the members of The Real World Computing Partnership?  
3. Could you also explain who receives the prope rty rights to any new technology developed 
under this programme? 
Contract for Development of Information Processing System and for Related Purposes
 
 
1. Could you please provide further information on th e type of subsidy that is provided for under 
this programme ( i.e., grant, tax concession, loan, etc.)? 
2. Could Japan please explain who are the members of the Japan Information Processing 
Development Corporation, Central Academy of Information Technology and New Media 
Development Association? 
Contract for Technology Developmen t of Mineral Resource Exploration  
System Development of Energy Saving Mines  
Support to Structural Adjustment of the Coal Mining Industry  
Subsidy for Overseas Coal De velopment Feasibility Survey  
Subsidy for Promotion of Coal Production and Utilization Technology  
Subsidy for Promotion of Mine Enterprises  
 
1. For the above programmes, do any Japanese steel  companies, including companies affiliated 
with the steel industry, receive assistance under any of these programmes? 
Special Deduction for Expenditure on Prospec ting for Domestic or Overseas Mineral Deposit  
 
1. Have any Japanese steel companies or th eir affiliates used this tax deduction?  
 Special Depreciation on Certain Machinery Used for Advanced Technology Industries in Certain 
Advance Technology Industry Group Sites Areas  
 1. Could Japan please provide a list of the advan ce technology industries that qualify for this 
programme?   
 
II. FINANCE 
Special Depreciation on Certain Machinery Used for Advanced Technology Industries in Certain 
Advanced Technology Industry Group-Site Areas  
 
1. Could you please explain in more detail wh ich companies qualify as “corporations engaging 
in the qualified advanced technology industries?”  Special Depreciation on Machinery (Related to th e Law of Special Measure to Revitalize Industry)
 
 
1. Please define more clearly how it is eval uated whether an enterprise’s productivity has 
decreased “in response to diverse and structural changes in the domestic a nd international economic 
environment.”    G/SCM/Q2/JPN/36 
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Additional Depreciation on Fishing Boat (Related to  the Plan for Structural Improvement of Small-  
and Medium-sized Fishing Enterprises Under the Scheme of Extraordinary Law on the 
Reconstruction of Fishing Industry)  
 
1. Could you please explain whethe r this programme takes into consideration overcapacity in a 
fishery when providing tax benefits under this programme?  2. Could you please provide more information regarding the eligibility criteria used by the 
Minister of Agriculture, Forestry and Fisheries in approving plans for structural improvements by 
small- and medium-sized fishing enterprises? 
 3. Is the assistance under this programme gear ed towards coastal or deep-sea fishing? 
 
III. AGRICULTURE, FORESTRY AND FISHERIES 
Measures for Sugar
 
 1. It is noted that the Sugar Price Adjustme nt Law and the Selling and Purchasing Scheme by 
the ALIC have been abolished.  Have either of  these programmes been replaced by other programmes 
that provide similar benefits?  If so, please explain.  
Farming Modernization Fund Interest Subsidy
 
 1. To what extent do the subsidized interest  rates differ from the normal commercial interest 
rates?  
2. Can you please provide the gene ral terms and conditions of the loans that are being extended? 
 3. What percentage of the expenses does the central government provide to the prefectural 
governments to fund this programme?    4. Please explain the extent to which the fishing industry benefits from th is programme.  Is the 
assistance under this programme geared to wards coastal or deep-sea fishing?  
 Agriculture, Forestry and Fisheries Finance Corporation Subsidy
 
 1. To what extent do the subsidized interest  rates differ from the normal commercial interest 
rates? 
 2. Is ¥25,536 million the total amount of the s ubsidy or total amount of loans given under the 
programme in fiscal year 2000?  Is the assistance under this programme geared towards coastal or 
deep-sea fishing?  
Fisheries Modernization Fund Interest Subsidy
 
 1. Please describe in greater detail the meaning of the phrase “advanced fisheries- management for structural adjustment.”  
2. Could Japan please explain whether the assist ance under this programme is geared towards 
the coastal or deep-sea fishing?   G/SCM/Q2/JPN/36 
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Fund for the Projects Implemented by the Regional Governments for Promoting Sustainable Fisheries
 
 1. Is the support for this programme provided through loans or grants?    
2. How are sustainable fisheri es promoted under this programme? 
 3. Could Japan please explain whether the assist ance under this programme is geared towards 
the coastal or deep-sea fishing?  
Fisheries-General
 
 1. Please explain why several of the fishery subs idy programmes relate to fiscal year 2001, 
while subsidy information for most other programm es is for fiscal year 2002.  Please provide fiscal 
year 2002 information for all programmes. 
 
2. Please explain the legal basis for those progr ammes for which there is no legislation yet 
"assistance is provided by [the] budget".  3. Does Japan maintain any subsidy programmes,  not fully described in its notification, 
administered by either the central or sub-nationa l governments, for any of the types of assistance 
listed below?  If so, please provide all the relevant  information in accordance with Article 25 of the 
Subsidies Agreement.  
• Fishing port infrastructure enhancement (i ncluding, but not limited to, support for 
construction of fishing ports, landing/ware house/distribution facilities, artificial reefs 
and aquaculture);   
• Restructuring/improvement/consolidation of  specific fisheries or regional fishing 
industries;  
• Fishery development grants (including, but  limited to: support for the introduction of 
new vessels and gear; and, production, distribution, processing and marketing improvement);  
• Fishing vessel and reinsurance programmes; 
• Price stabilization for fish products;  
• Exemption from fuel taxes for the fishing industry; 
• Fishery research and development (including , but limited to, pr ogrammes to develop 
new fishery technologies and fishing gear); 
• Fishing vessel buyback programmes (including , but not limited to, payments for fleet 
reduction); 
• Construction, repair or rehab ilitation of fishing vessels; or 
• Assistance to fishing villages and communities. 
  
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