RESTRICTED
WORLD TRADE G/SCM/Q2/JPN/13
13August 1997
ORGANIZATION(97-3394)
Original: English Committee onSubsidies
andCountervailing Measures
SUBSIDIES
Request from theEUROPEAN COMMUNITY
toJAPAN Pursuant toArticle 25.8oftheAgreement
Thefollowing communication, dated 7August 1997, hasbeenreceived from thePermanent
Delegation oftheEuropean Community.
_______________
Paragraph 8ofArticle 25oftheAgreement onSubsidies andCountervailing Measures (the
SCM Agreement) states that"anyMember may, atanytime, make awritten request forinformation
onthenature andextent ofanysubsidy granted ormaintained byanother Member ...orforan
explanation ofthereasons forwhich aspecific measure hasbeenconsidered asnotsubject tothe
requirement ofnotification."
Onthisbasis, theEuropean Community formally requests thatJapan provide information on
thenature andextent oftheLawconcerning Special Fiscal Measures Related totheSpecific Programmes
fortheDowa Regional Improvement. TheEuropean Community requests anotification ofall
programmes under thislegislation using thestandard questionnaire format (document G/SCM/6). In
theevent Japan should consider thatthisprogramme doesnotconstitute anotifiable subsidy under
Article 25oftheSCM Agreement, theEuropean Community respectfully requests thatJapan provides
theinformation listed below forreasons oftransparency.
Thiscurrent legislation entered intoforce in1987andwasscheduled toexpire inMarch 1997.
Outofthe45specific programmes under thislegislation, 15havebeenextended forafurther five-year
period. Thedraftbudget requested forthese 15programmes amounted toYen62billion forfiscal
year1997.
TheEuropean Community hasreason tobelieve thatthisprogramme mayconstitute asubsidy
meeting thenotification requirements under Article 25.2oftheSCM Agreement. Inparticular, the
European Community considers thatthisprogramme constitutes aspecific subsidy inthesense of
Article 2.1oftheSCM Agreement since theprogramme appears tobelimited tocertain regions and
thesubsidy ispredominantly usedbyenterprises intheleather industry.
Inthisrespect, theEuropean Community would likethefollowing clarification:
1. Please provide anoverview ofallspecific programmes which areinoperation under thislaw.
2. Please attach acopyofthislegislation (ifavailable, inEnglish).
./.G/SCM/Q2/JPN/13
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3. Listallindustry sectors which areeligible toobtain asubsidy from these programmes.
4. Please provide thetotalbudget forthisprogramme aswellasthebudget foreachindividual
programme forthelastthreeyears. Provide theexpenditure perindustry sector forthelastthreeyears.
5. Listforeachindividual programme theadministering authority.
6. Describe foreachindividual programme:
- thecriteria foreligibility;
- explain howsubsidies aregiven;
- specify whether thesubsidy isintheform ofagrant, loan, taxexemption etc.
- howtheadministering authority selects projects.
7. Please explain howthebudget forthisprogramme isestablished. Howisthisamount financed?
8. Indicate whether anychanges inthecurrent legislation areforeseen. Howwillthese changes
affect thecurrent legislation? Attach acopyofanydraftlegislation.
Pursuant toArticle 25.9oftheSCM Agreement "Members shallprovide suchinformation
asquickly aspossible andinacomprehensive manner ....Inparticular, theyshallprovide sufficient
details toenable other Members toassess thecompliance withtheterms ofthisAgreement." Inthis
respect, theEuropean Community requests Japan tocomply withthese provisions. TheEuropean
Community considers that30daysconstitutes areasonable delay andrequests theinformation within
thistime-frame.