WORLD TRADE
ORGANIZATIONG/TMB/N/404
8 August 2001
(01-3928)
Textiles Monitoring Body Original:  English
AGREEMENT ON TEXTILES AND CLOTHING
Communication from Japan
The Textiles Monitoring Body has received a communication from Japan in reply to its
request for additional information in the context of the preparation of the Body's Comprehensive
Report on the implementation of the ATC during its second stage, in accordance with Article 8.11.
The TMB is circulating this communication to WTO Members for their information.G/TMB/N/404
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Permanent Mission of Japan
Geneva
Geneva, 17 April 2001
Dear Ambassador Szepesi,
Attached is a notification from my government pursuant to Article 8.11 and the request from
the TMB seeking notifications and information in preparation of a comprehensive report on the
implementation of the ATC during the second stage (G/TMB/24).
This notification replies to specific requests rega rding the first, the third and the fifth  tirets of
the third paragraph of the above WTO document.  There are no measures regarding the second and
the fourth tirets in Japan.
Yours faithfully,
(Signed)
Osamu Moriya
Counsellor
H. E. Mr. András Szepesi
Chairman
Textiles Monitoring Body
World Trade Organization
Rue de Lausanne 1541211 Geneva 21G/TMB/N/404
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Notification from Japan Relating to the Preparation of the
TMB's Comprehensive Report
Small suppliers, new entrants and least-developed country Members (Article 1.2 and related
provisions)
In accordance with the commitment of the Uruguay Round notification, Japan is
implementing tariff reductions on textile and clothing products in ten years, from FY 1995 to FY 2004
(average rate of tariff will be reduced from 11.5 per cent in FY 1994 to 7.8 per cent in FY 2004).
About 340 items of textile and clothing products, which have formerly been exemptions to the
GSP system, is duty free and quota free for LDCs.  By this measure, all the textile and clothing
products from LDCs are duty free and quota free from 1 April 2001.
All 48 LDCs are able to benefit from this system, while so far the coverage was 42 LDCs.
Developments in allowing for continuous autonomous industrial adjustment and increased
competition in the Members' markets (Article 1.5)
The textile and clothing industry, which creates about 2 million employment, is one of the key
industries in Japan.  But in recent years, the situation surrounding the industry is facing difficultiescaused by the contraction of economic growth rate, maturity of domestic market and an ailing
Japanese domestic market.  Under the severe circumstances mentioned above, the "Vision of Japan's
Textile Industry and Ideal Policies for the Industry" was made public in December 1998.  The goal of
the new textile policy is to promote the reforms for the development of the Japanese textile and
clothing industry.  To achieve this goal, the Japanese government is making use of the generalindustrial policy measures, not targeted specifically at the textile and clothing industry as it used to be.
Following the principle, the Law for the Structural Improvement of the Textile Industry, which had
been the legal basis in supporting textile and clothing industry, was abolished in June  1999.  At the
same time, the Textile Industry Restructuring Agency, which had been operating various measures
based on the Law, was also abolished.
Article 7.1, with special regard to Article 7.2 which provides that "Members shall notify to the
TMB the actions referred to (in Article 7.1) whic h have a bearing on the implementation of this
Agreement.  To the extent that these have been  notified to other WTO bodies, a summary, with
reference to the original notifi cation, shall be sufficient to fulfil the requirements under this
paragraph."
Japan levied definitive duties on Pakistani cotton yarn of 20-21 count in August 1995:
several duty rates for new suppliers were conducted in March 1996, May 1998, and new dumping
margins have been notified to the WTO.  The measures were revoked in July 2000
(G/ADP/N/72/JPN).
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