WT/REG441/1 /Rev.1  
21 April 2023 
(23-2876) Page: 1/75 
Committee on Regional Trade Agreements    
 
FACTUAL PRESENTATION  
COMPREHENSIVE ECONOMIC  PARTNERSHIP AGREEMENT  BETWEEN  
THE UNITED KINGDOM  AND JAPAN  
(GOODS AND SERVICES ) 
Report by the Secretariat  
Revision  
This report, prepared for the consideration of the Comprehensive  Economic  Partnership 
Agreement between the United Kingdom  and Japan , has been drawn up by the WTO 
Secretariat on its own responsibility and in full consultation with the Parties. The factual 
presentation reproduces as closely as possible the terminology used in the Agreement 
and in the comments provided and does not imply official endorsement or acceptance 
by the Secretariat of such terminology. The report has been drawn up in accordance 
with the rules and procedures contained in the Decision for a Transparency Mechanism 
for Regional Trade Agreements (WT/L/671) and thus does not imply any value 
judgement by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising  from this report may be addressed to Ms. Alena 
Fiorentino  (tel: +41 22 739 6405) . Any statistical questions arising from this report may 
be addressed to  Ms. Rowena Cabos (tel: +41 22 739 5185) and Mr. Thakur Parajuli 
(tel: +41 22 739 5473).  
 
 
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  Table o f Contents  
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1   Merchandise trade  ................................ ................................ ................................ ..... 5 
1.2   Trade in services and investment  ................................ ................................ .................  7 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ....................  11 
2.1   Background information  ................................ ................................ ............................  11 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  13 
3.1   Import duties and charges, and quantitative restrictions  ................................ ................  13 
3.1.1   General provisions  ................................ ................................ ................................ . 13 
3.1.2   Liberalization of trade and tariff lines  ................................ ................................ ........  14 
3.1.3   Liberalization schedule ................................ ................................ ............................  14 
3.1.3.1    The United Kingdom  ................................ ................................ ............................  15 
3.1.3.2    Japan  ................................ ................................ ................................ ................  17 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ... 20 
3.2   Rules of origin  ................................ ................................ ................................ ..........  20 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................  22 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ....... 23 
3.4.1   Standards  ................................ ................................ ................................ .............  23 
3.4.1.1   Sanitary and phytosanitary measures  ................................ ................................ .... 23 
3.4.1.2    Technical barriers to trade  ................................ ................................ ....................  23 
3.4.2   Safeguard mechanisms  ................................ ................................ ...........................  24 
3.4.2.1    Global safeguards  ................................ ................................ ...............................  24 
3.4.2.2    Bilateral safeguards  ................................ ................................ .............................  24 
3.4.2.3    Special safeguards  ................................ ................................ ..............................  25 
3.4.2.4    Balance of payments safeguards  ................................ ................................ ...........  27 
3.4.2.5    Other safeguard measures  ................................ ................................ ...................  28 
3.4.3   Anti-dumping and countervailin g measures  ................................ ...............................  28 
3.4.4   Subsidies and state -aid ................................ ................................ ...........................  28 
3.4.5   Customs -related procedures  ................................ ................................ ....................  31 
3.4.6   Other regulations  ................................ ................................ ................................ ... 31 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ . 31 
3.5.1   Agriculture  ................................ ................................ ................................ ............  31 
3.5.2   Wine and Shochu  ................................ ................................ ................................ ... 32 
3.5.3   Motor vehicles  ................................ ................................ ................................ ....... 32 
4   PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  ................................ .........  33 
4.1   Scope and definitions  ................................ ................................ ................................  33 
4.2   Denial of benefits  ................................ ................................ ................................ ..... 34 
4.3   General provisions on trade in services and investment  ................................ ..................  34 
4.3.1   Market access  ................................ ................................ ................................ ....... 35 
4.3.2   National treatment and MFN  ................................ ................................ ....................  35 WT/REG441/1 /Rev.1  
 
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  4.3.3   Commercial presence  ................................ ................................ .............................  35 
4.3.4   Performance requirements  ................................ ................................ ......................  35 
4.3.5   Senior Management and Boards of Directors  ................................ ..............................  35 
4.3.6   Movement of natural persons  ................................ ................................ ..................  35 
4.4   Liberalization commitments  ................................ ................................ ........................  38 
4.4.1   The United Kingdom  ................................ ................................ ...............................  38 
4.4.1. 1   MFN and horizontal commitments  ................................ ................................ ..........  38 
4.4.1.2    Sector specific commitments  ................................ ................................ ................  38 
4.4.2   Japan  ................................ ................................ ................................ ...................  43 
4.4.2.1    MFN and horizontal commitments  ................................ ................................ ..........  43 
4.4.2.2    Sector specific commitments  ................................ ................................ ................  43 
4.5   Regulatory provisions  ................................ ................................ ................................  49 
4.5.1   Domestic regulation  ................................ ................................ ...............................  49 
4.5.2   Recognition  ................................ ................................ ................................ ...........  50 
4.5.3   Subsidies  ................................ ................................ ................................ ..............  50 
4.5.4   Safeguards  ................................ ................................ ................................ ...........  51 
4.5.5   Other  ................................ ................................ ................................ ...................  51 
4.5.5.1    Investment  ................................ ................................ ................................ ........  51 
4.6   Sector specific provisions on trade in services  ................................ ...............................  51 
4.6.1   Financial Services  ................................ ................................ ................................ .. 51 
4.6.2   Postal and courier services  ................................ ................................ ......................  52 
4.6.3   Telecommunications  ................................ ................................ ...............................  53 
4.6.4   Maritime Transport ................................ ................................ ................................ . 54 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  54 
5.1   Transparency  ................................ ................................ ................................ ...........  54 
5.2   Current payments and capital movements  ................................ ................................ .... 54 
5.3   Exceptions  ................................ ................................ ................................ ...............  55 
5.3.1   General exceptions  ................................ ................................ ................................  55 
5.3.2   Security exceptions  ................................ ................................ ................................  55 
5.4   Accession and withdrawal  ................................ ................................ ..........................  55 
5.5   Institutional framework  ................................ ................................ .............................  55 
5.6   Dispute settlement  ................................ ................................ ................................ ... 56 
5.7   Relationship with other agreements concluded by the Parties  ................................ ..........  58 
5.8   Government procurement  ................................ ................................ ..........................  60 
5.9   Intellectual property rights  ................................ ................................ .........................  62 
5.10   Competition  ................................ ................................ ................................ ...........  64 
5.11   Environment and labour  ................................ ................................ ...........................  65 
5.12   Electronic commerce  ................................ ................................ ...............................  65 
5.13   Small and medium -sized enterprises  ................................ ................................ .........  66 
5.14   Other  ................................ ................................ ................................ ....................  67 WT/RE G441/1 /Rev.1  
 
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  5.14.1    Corporate Governance  ................................ ................................ ..........................  67 
5.14.1. 1   Good regulatory practices and regulatory cooperation  ................................ .............  67 
5.14.2    Trade and Women's E conomic Empowerment  ................................ ...........................  68 
ANNEX 1  ................................ ................................ ................................ ........................  69 
ANNEX 2  ................................ ................................ ................................ ........................  74 
 
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Key Facts  
 
Parties to the Agreement:  United Kingdom and Japan  
 
Date of Signature:    23 October 2020  
 
Date of Entry into Force:  01 January 2021  
 
Date of Notification:   31 December 2020  
 
Full implementation:   1 April 2038  
 
 
1  TRADE ENVIRONMENT  
1.1.  The Agreement between the United Kingdom  and Japan for a  Comprehensive  Economic 
Partnership (hereinafter referred to as "the Agreement"  or the "UK-Japan CEPA" ) is one of the UK's 
38 RTAs and Japan's 1 8 RTAs as notified  to the WTO .1  
1.2.  In 2021, the UK's  GDP was estimated at USD 3.18 trillion, while that of Japan  was USD 4.93 
trillion .2 Averaged over the period 201 9-2021, the Parties' trade (goods and services) to GDP ratio3 
was 17. 4 for Japan and 28.9 for the U K.  
1.1  Merchandise trade  
1.3.  In 2021, the U K's merchandise exports amounted to USD 468.17  billion (2.1% of global exports 
and 14th largest exporter to the world). Imports amounted to  USD 693.77  billion (3.07% of global 
imports and 8th largest importer). In the same year Japan's merchandise exports amounted to USD 
756.03  billion (3.39% of global exports, 5th largest global exporter) and imports amounted to USD 
768.97  billion, (3.4% of global imports, 4th largest global importer). For bo th Parties, manufactures 
represent ed the main commodity group traded : 68.4% of UK exports and 6 3.7% of imports; and 
86.1% of Japan's exports and 62.2% of imports.  
1.4.  Based on 2020 trade data, the UK was Japan 's 21st largest source of imports4 (representing 
1% of Japan's  total imports) and 12th largest destination for exports5 (representing 1.7% of Japan 's 
total exports) .6 Japan  was the U K's 10th largest source of imports7 and 8th largest destination for 
exports8 (representing 1.7% and 1.8% of the U K's total imports and exports) .9 
1.5.  Chart 1.1 summarizes the trends in global and bilateral trade of the Parties for the period 201 8-
2020. The U K experienced a trade deficit  with the world during the surveyed period, while the 
evolution of Japan's global trade shows a trade deficit for 2018 -2019 and a trade surplus for 2020. 
On bilateral trade the data appear to indicate a steady trade deficit for the UK .  
 
1 RTAs in goods and services counted as one and only agreements in force, notified to the WTO.  
2 Source: WTO Trade Profiles 202 2. 
3 The GDP ratio indicates the percentage of the GDP represented by trade. The value of trade corresponds 
to the total of trade in goods and services (exports plus imports), on a BOP basis.  
4 The five top sources of imports for Japan were: China (25.8%); the  EU(27) (11.4%); the US (11.3%); 
Australia (5.6%); and other Asia, n .e.s. (4.2%).  
5 The five top destination of exports from Japan were: China (22%); the US (18.5%); the EU(27) (9.2%); 
Rep. of Korea (7%); and other Asia, n .e.s. (6.9%).  
6 Source: UNSD  Comtrade for Japan, excluding intra -EU trade.  
7 The five top sources of imports for the UK were: the EU(27) (45.8%); China (10.8%); the US (9.2%); 
Russia (3.9%); and Hong , Kong, China  (3.3%).  
8 The five top destination of exports from the UK were: the EU(27) (46.1%); the US (14.2%); Switzerland 
(4.8%); China (4.6%); and Hong , Kong, China  (2.6%).  
9 Source: Data provided by the UK, excluding intra -EU trade.  WT/RE G441/1 /Rev.1  
 
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  Chart 1.1 United Kingdom -Japan:  Merchandise bilateral and global trade, 2018 -2020  
 
Source:  Based on data provided by the Parties and UNSD, Comtrade database.  
 
1.6.  The commodity structure of trade between the U K and Japan, as well as both Parties' global 
trade during the period 201 8-2020 are shown in Chart 1.2 on the basis of Harmonized System (HS) 
sections using the same statistics as shown in the previous Chart.  
1.7.  The majority of the U K's imports from Japan were  machinery and mechanical appliances 
(35.2%); vehicles, and aircraft and vessels (24. 2%); both were also Japan's largest global exports, 
accounting for 34.6% and 22.9% respectively. In addition,  natural and cultured pearls  accounted 
for a significant share  of the UK's imports from Japan (14.4%).  
1.8.  Of the UK's largest export categories ( machinery and mechanical appliances , products of 
chemical or allied industries  and vehicles, aircraft and vessels ) which together accounted for almost 
50% of its global export s, machinery and vehicles, aircraft and vessels accounted for around 45% 
of Japan's imports from the UK; in addition,  around 24% of Japan's imports from the UK were in 
minerals  which accounted for only 9% of Japan's global exports .  
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  Chart 1.2 United Kingdom -Japan: Product composition of merchandise trade by HS 
Section, annual average (2018 -2020)  
 
Source:  Based on data provided by the Parties and UNSD, Comtrade database.  
1.2  Trade in services and investment  
1.9.  In 2021, the UK's shares of total commercial services exports and imports were 6.92% and 
4.31% respectively, while Japan's respective  shares were 2.74% and 3. 7%. With total commercial 
services exports of USD 415.07  billion and imports of USD 238.52 billion, the U K was ranked 2nd and 
6th largest exporter and import er of commercial services. In the same year Japan was ranked 10th 
and 9th respectively  with total commercial services exports of US D 163.99  billion and imports of US D 
205.2  billion. For both Parties, other commercial services represented the main category traded: 
87% of UK exports and 7 6% of imports; 80% of Japan's exports and 7 7.4% of imports.  
1.10.  Chart s 1.3 and 1.4 below show  global and bilateral trade in commercial services for the U K 
and Japan  for the period 2018 -2020 (as reported by the Parties ).10 For the U K, exports were 
dominated by other business services, financial services and telecommunications, computer, and 
information services, while imports were led by other business serv ices, travel and financial services.  
In terms of bilateral trade in commercial services, the UK's exports to Japan were represented by 
financial services, other business services, and insurance and pension services , while imports were 
 
10 The national statistics of the Parties may slightly differ from the, also official, sources systematical ly 
used in the preparation of factual presentations . 
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  dominated by c harges for the use of intellectual property n.i.e. , other business services, and financial 
services. The data show an overall surplus in trade in commercial services with the rest of the world 
and with Japan.  
1.11.  For Japan , during the same period, global exports  in commercial services were represented  
by other business services, charges for the use of intellectual property n.i.e., and transport, while 
imports  were led by other business services, charges for the use of intell ectual property  and 
transport. The c omposition of bilateral trade in commercial services with the UK remained  largely  
unchanged: financial services, other business services, and charges for the use of intellectual 
property n.i.e. accounted for most of Japa n's exports to the UK, while its imports from the UK were 
led by other business services, financial services, and insurance and pension services. Japan  
maintained an overall trade deficit with the rest of the world and a trade surplus with the UK during 
the surveyed  period.   
Chart 1.3 United Kingdom: Trade in commercial services with world and Japan (2018 -
2020)  
 
Note:  Exchange rates from GBP to USD: 0.7495 (2018), 0.7834 (2019) and 0.7800 (2020) . 
 No exports to Japan on Manufacturing services and Maintenance and repair services for 2018 -2019; 
Construction for 2019 -2020.  
Source:  UK authorities.  
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  Chart 1.4 Japan: Trade in commercial services with world and t he United Kingdom 
(2018 -2020)  
 
Note:  Exchange rates from Japanese yen to USD: 110.4 (2018), 109.0 (2019), 106.8 (2020) . 
Source:  Japanese authorities.  
 
1.12.  Chart 1. 5 below shows the UK's foreign direct investment stocks and flows with the world and 
with Japa n during 201 8-2020, while Chart 1. 6 depicts the data for Japan.11 While data on both FDI 
stock and flow for the UK with the world depicts a net surplus , with both inward and outward flows 
falling during this period , with the latter falling quite sharply , Japan maintains a net deficit in its FDI 
stock and flow  with the world. Over the surveyed period,  data suggest that Japan  was a net investor 
in the UK in terms of FDI stocks , while inward flows from the UK rose sharply between 2019 and 
2020.  
 
11 The national statistics of the Parties may differ slightly from other official sources systematically used 
in the preparation of factual presentations . 
WT/RE G441/1 /Rev.1  
 
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  Char t 1.5 United Kingdom: FDI stock and flow with Japan and world, 2018 -2020  
 
Note:  FDI presented on a directional basis.  
 No data on bilateral outward flow for 2020.  
 Exchange rate GBP per USD are: 0.75 (2018), 0.78 (2019) and 0.78 (2020)  
 Please note that FDI data for 2020 has been affected by changes in sampling methodology. Therefore, 
while this will mean 2020 data are more representative of UK FDI with overseas partners, some caution 
should be taken when comparing 2020 data to pr evious years. Methodology changes have led to an 
increase in reported FDI, particularly inward FDI, in 2020. The effect of this methodology change will 
vary between partners, although it is not possible to quantify the specific impact for individual 
partne rs. 
Source:  UK authorities.  
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  Chart 1.6 Japan: FDI stock and flow with the United Kingdom and world, 2018 -2020  
 
Note:  Exchange rates from Japanese yen to USD: 110.4 (2018), 109.0 (2019), 106.8 (2020) . 
Source:  Japanese authorities.  
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement was signed on 23 October  2020 and notified to the WTO on 31 December  2020 
under Article XXIV:7(a) of the GATT 1994 and Article V:7(a) of the GATS (see document 
WT/REG 441/N/1 - S/C/N/ 1036). Until the Agreement entered into force the Parties' trade 
relationship was governed by the EU -Japan Economic Partnership Agreement  (hereinaf ter referred 
to as "the EU -Japan EPA")12 which ceased to apply to the UK when it left the European Union.  
2.2.  Article 2 4.3 governs the entry into force of the Agreement. Both Parties notified to each other 
the completion of their respective applicable legal re quirements and procedures for  entry into force 
of the Agreement in January  2021. 
2.3.  The text of the Agreement, together with its Annexes, is available on the Parties' official 
websites:  
United Kingdom : UK/Japan: Agreement for a Comprehensive Economic Partnership [CS Japan 
No.1/2020] - GOV.UK (www.gov.uk)  
Japan:  Japan-UK Comprehensive Economic Partnership Agreement | Ministry of Foreign Affairs of 
Japan (mofa.go.jp)  
 
12 For further details, please refer to document WT/REG396/1.  
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  2.4.  The objectives of the Agreement are to liberalise and facilitate trade and investment, as well 
as to promote a closer economic relationship between the  Parties  (Article 1.1) . 
2.5.  Article 1.3 specifies the territorial application of the Agreement. In respect of the UK, the 
provisions of the Agreement concerning customs matters , and the Protocol on Mutual Recognition,  
are applied to the territories of the United Kingdom, the Bailiwicks of Guernsey and Jersey and the 
Isle of Man. In addition, a mechanism is envisaged to allow for extension of the Agreement, o r its 
specific provisions, to the territories for whose intern ational relations the Government of the UK is 
responsible, inter alia  Gibraltar.  
2.6.  The Agreement has 2 4 Chapters , 21 Annexes  and 1 Protocol , all of which form an integral part 
of the Agreement (Table 2.1 ). The UK -Japan CEPA basically maintains the content o f the EU -Japan 
EPA but establishes more advanced disciplines in areas such as electronic commerce and financial 
services, and has a new chapter on trade and women 's economic empowerment.  
Table  2.1 Structure of the Agreement  
Chapters  Title 
Preamble   
Chapter 1  General Provisions  
Chapter 2  Trade in Goods 
Chapter 3  Rules of Origin and Origin Procedures  
Chapter 4  Customs Matters and Trade Facilitation  
Chapter 5  Trade Remedies  
Chapter 6  Sanitary and Phytosanitary Measures  
Chapter 7  Technical Barriers to Trade  
Chapter 8  Trade in Services, Investment Liberalization and Electronic Commerce  
Chapter 9  Capital Movements, Payments and Transfers and Temporary Safeguard Measures  
Chapter 10  Government Procurement  
Chapter 11  Competition Pol icy 
Chapter 12  Subsidies  
Chapter 13  State -Owned Enterprises, Enterprises granted special rights or privileges and designated 
monopolies  
Chapter 14  Intellectual Property  
Chapter 15  Corporate Governance  
Chapter 16  Trade and Sustainable Development  
Chapter 17  Transparency  
Chapter 18  Good Regulatory Practices and Regulatory Cooperation  
Chapter 19  Cooperation in the field of Agriculture  
Chapter 20  Small and Medium -sized Enterprises  
Chapter 21  Trade and Women's Economic Empowerment  
Chapter 22  Dispute Settlement  
Chapter 23  Institutional Provisions  
Chapter 24  Final Provisions  
Annexes   
Annex 2 -A Tariff Elimination and Reduction  
Annex 2 -B  List of Goods referred to in Articles 2.15 and 2.17  
Annex 2 -C  Motor Vehicles and Parts  
Appendix 2 -C-1  UN Regulations Applied by Both Parties  
Appendix 2 -C-2 UN Regulations Applied by one of the Parties and not yet considered by the other Party  
Annex 2 -D Facilitation of Shochu Export  
Annex 2 -E Facilitation of Wine Product Export  
Annex 3 -A  Introductory Notes to Product Specific Rules of Origin  
Annex 3 -B Product Specific Rules of Origin  
Appendix 3 -B-1 Provisions Related to Certain Vehicles and Parts of Vehicles  
Annex 3 -C Products referred to in Article 3.5  
Annex 3 -D Information referred to in Article 3.5  
Annex 3 -E Text of the Statement on Origin  
Annex 6  Food Additives  
Annex 8 -A  Regulatory Cooperation in Financial Services  
Annex 8 -B Schedules for Chapter 8  
Annex I  Reservations for Existing Measures  
Annex II  Reservations for Future Measures  
Annex III  Business Visitors for Establishing Purposes, Intra -Corporate Transferees, Investors and 
Short -Term Business Visitors  
Annex IV  Contractual Services Suppliers and Inde pendent Professionals  
Appendix IV  Limitations of Business Activities of Contractual Services Suppliers and Independent 
Professionals in Japan  WT/REG441/1 /Rev.1  
 
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  Chapters  Title 
Annex 8 -C Understanding on Movement of Natural Persons for Business Purposes  
Annex 10  Government Procurement  
Annex 14 -A Laws and Regulations of the Parties related to Geographical Indications  
Annex 14 -B  List of Geographical indications  
Protocol s  
Protocol  On Mutual Recognition  
Source:  WTO Secretariat based on the Agreement.  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  Chapter 2, sections A -D of the Agreement  specifically  concern s trade in goods , while  other 
Chapters apply horizontally to trade in goods.  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.2.  Under Section B ( national treatment and market access for goods) of Chapter 2, the Agreement 
follows the EU -Japan EPA  with the Parties agree ing to give national treatment to each other's  goods 
and incorporating Article III of the GATT 1994 into the Agreement , mutatis mutandis  (Article 2.7) . 
3.3.  The Parties' tariff elimination schedules are in  Annex 2 -A to the Agreement. As in the EU -Japan 
EPA the lower  of the preferential or MFN duty is to  be applied to originating goods of the other Party  
if a Party reduces its MFN applie d rate below the preferential rate in Annex 2 -A. Treatment of  certain  
originating goods including agricultural products,  are to be reviewed in 2026, unless otherwise 
agreed  by the Parties , or in a year which the Parties otherwise agree, whichever comes fir st, with 
the aim of improv ing market access conditions.  In case a Party grants a more favourable tariff rate, 
higher quota volume or any other more favourable treatment than that provided under the 
Agreement to a third country in a manner that affects the balance of either Party's market for such 
goods, the Parties shall undertake a review with a view to ensure the other Party obtains at least 
the same preference  (Article 2.8) . 
3.4.  Article 2.9 contains provisions on goods re -entered after repair and alteration  while Article 2.10  
permit s duty free temporary admission of goods, such as goods for display or use at exhibitions, 
professional equipment, commercial samples and containers and pallets  in use or to be used in the 
shipment of goods in international traffic .  
3.5.  As in the EU -Japan EPA s tandstill provisions ensure no increase in customs dut ies applied in 
accordance with Annex 2 -A to the Agreement.13  
3.6.  The Parties agree not to adopt or maintain  non-automatic import licensing procedures and shall 
adopt or maintain import licensing procedures only when other appropriate procedures to achieve 
an administrative purpose are not reasonably available (Article 2.17). Further transparency and 
notificatio n requirements are also outlined in Article 2.17. Non-tariff measure (NTM) provisions are 
set out in Article 2.19 and Annexes 2 -C14 and 2 -D15 to the Agreement  and are subject to the same  
evaluat ion commitments as in the EU -Japan EPA.16  
 
13 Customs dut ies may be raised  to the level in the Parties' schedules for the respective year, following a 
unilateral reduction of the customs duty  (Article 2.13.2) . 
14 Annex 2 -C applies to all products of motor vehicles, their parts and equipment with some exceptions.  
15 Annex 2 -D (one paragraph) concerns the facilitation of Shochu Exports.  
16 The evaluation is to take place  10 years from the date of entry into force of the Agreement  (i.e. in 
2031) , or on request of a Party, on whether issues resulting from NTMs on goods can be addressed effectively 
within the framework of the Agreement. As a result of this evaluation, the Parties shall enter into consultations, 
and subse quently negotiations, to consider broadening the scope of existing commitments of mutual interest on 
NTMs on goods, including on cooperation.  WT/RE G441/1 /Rev.1  
 
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  3.1.2   Liberalization of t rade and tariff lines  
3.7.  The Parties agree to  reduce or eliminate customs duties on originating goods in accordance 
with Annex 2 –A to the Agreement (Article 2. 8).17  
3.1.3   Liberalization schedule  
3.8.  For the purposes of  Article 2.8, the Parties agree to entirely eliminate customs duties on 
originating goods from each other in accordance with Annex 2 -A (Part 2 for the UK and Part 3 for 
Japan) on the date of entry into force of the Agreement, unless provided otherwise  (para 1, Part 1 
of Annex 2 -A). 
3.9.  The equal annual instalments under the Annex are to start on the date of entry into force of 
the Agreement (i.e. 1 January 2021), with subsequent annual reductions taking place on 1  February 
2021 for the UK, and on 1 April 2021 f or Japan.  
3.10.  Annex 2 -A provides for ten staging categories  according to which customs duties : 
• for goods in category "A" are eliminated upon entry into force of the Agreement;  
• for categor ies "X", "Xq1", "Xq2"  are not reduced or eliminated ;  
• for category "Xb" are not reduced or eliminated  and remain at the base rate;  
• for category "B" (B3 -B20) are phased out  with specified base rate reductions on the date of 
entry into force of the Agreement and a subsequent  elimination of customs duties in equal 
annual instalments detailed for each sub -category ; 
• for category "R" (R1-R23, including the agricultural element marked as "EA"18) are to be 
reduced  within 14 years, depending on the sub -category;  
• for category "EU10" remain at the base rate from year 1 to year 6 and are to be  eliminated in 
four equal instalments from the first day of year 7 up to 1 February of year 10; 
• for goods in category "S" are subject to review pursuant to subparagraph 3(a) and paragraph 
4 of Article 2.8 of the Agreement ; 
• for category "PIC" are governed by the terms set out in Section B19 of the Schedule of Japan ;  
• in category "SG -n" are subject to the provisions of Section C of  the Schedule of Japan 
(Agricultural safeguard measures) ;  
3.11.  Only t he ad valorem  component of customs duties on  tariff lines under the entry price system 
to be eliminated upon the date of entry into force of the Agreement.20  
 
17 Customs duties are defined as any duty or charge of any kind imposed on or in connection with the 
importation of  a good including any form of surtax or surcharge imposed on or in connection with importation, 
with exclusions set out in Article 2.4.  
18 The legal reference for "EA" means any law or regulation of the UK that applies an agricultural element 
of duty to cer tain goods in accordance with Part I, Section I -A (including Annex 1) of Schedule XIX (United 
Kingdom) to the GATT 1994 adopted by the United Kingdom on or after the date of entry into force of the 
Agreement  (1.h(i) of Part 2 Section A of the UK's Schedule ). 
19 Goods covered by the provisions of Section B of Part 3 of Annex 2 -A are: w heat products ; mixes and 
doughs and cake mixes ; food preparations made primarily of wheat ; food preparations of barley ; coffee, tea 
mixes, food preparations and doughs ; food pre parations ; food preparations containing more than 50 per cent of 
sucrose, and cocoa powder ; food preparations containing cocoa ; food preparations containing cocoa (for the 
preparation of chocolate) ; cheeses . 
20 The legal reference for EA means any law or regulation of the UK that applies an agricultural element 
of duty to certain goods in accordance with Part I, Section I -A (including Annex 1) of Schedule XIX (United 
Kingdom) to the GATT 1994 adopted by the Unit ed Kingdom on or after the date of entry into force of the 
Agreement (1.l of Part 2 Section A of the UK's Schedule).  WT/REG441/1 /Rev.1  
 
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  3.1.3.1   The United  Kingdom  
3.12.   The U K's applied tariff in 20 21 comprised 9,494  lines at the HS eight -digit level (HS 2017) : 
90.7% (8,613  lines) were ad valorem  and 9.28% of lines ( 881 lines) were non -ad valorem.21 
3.13.  Table 3.1 below shows tariff elimination by the UK under the Agreement. In 2021, 4 ,462 of 
the UK's tariff lines were duty free on an MFN basis, representing 47% of the UK's tariff, and 
corresponding to almost 60% of the UK's imports from Japan during the period 2018 -2020. 
Immediately following the entry into force of the Agreement, a fu rther 4,711 lines (49.6% of the 
UK's tariff) also became duty -free for imports from Japan. This resulted in 96.6% of the UK's tariff 
becoming duty -free, corresponding to 81.1% of the UK's total imports from Japan during 2018 -
2020. At the end of 10 years of  implementation 9,370 lines will be duty free for imports from Japan. 
By 2034, following thirteen years of implementation, a further 263 tariff lines will be liberalized.  
3.14.  At the end of the implementation period 58 lines will remain dutiable, representing 0.6% of 
the UK's tariff and corresponding to a negligible part of the U K's value of imports from Japan during 
2018-2020.22  
Table 3.1: United Kingdom : Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Tariff lines in UK's tariff schedule  UK's imports from Japan  (2018 -
20)a 
Number  % Value  
(USD million)c % 
2021 (MFN)  4,462  47.0  7298.5  59.9  
2021 (JAN)  4,711  49.6  2580.6  21.2  
2022  51 0.5 199.5  1.6 
2024  40 0.4 145.4  1.2 
2026 87 0.9 1866.5  15.3 
2029 19 0.2 91.4 0.8 
2031 17 0.2 4.9 0.0 
2034 49 0.5 0.0 0.0 
Remain dutiable  58 0.6 2.4 0.0 
TOTAL  9,494  100.0  12189.4  100.0  
a Import coverage is from HS chapters 1 -97. 
b According to the preferential tariffs schedule provided by UK, the first tariffs reduction occurred on 1st 
January 2021, and the second on 2nd February 2021, for the subsequent years, reductions shall be 
made on 2nd February each year until 2034.  
c Imports values were reported in GBP and converted into USD using the exchange rates of 
0.749531540259847(2018), 0.783445110011929 (2019) and 0.779999576697153 (2020) . 
Note:  Tariff lines subject to in -quota rates are exclu ded in the computation .  
 Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by UK.  
 
3.15.  Table 3.2 shows the U K's tariff elimination by HS section. The 58 lines excluded  from tariff 
elimination are found in HS Sections I ( live an imals), II ( vegetable products) and IV ( prepared food). 
These Sections (I, II, and IV) correspond to HS Chapters 01, 02, 0 5, 10, 11, 12 and 19. Average 
tariffs on the lines remaining subject to duties range from 4. 8% for HS  Section IV  (prepared food)  
to 9.3% for HS Section I  (live animals) . 
 
21 647 lines specific, 230 compound, and 4  mixed.  
22 The EU -Japan EPA which applied to the UK before it left the EU, envisages 87 lines remai ning dutiable 
for imports from Japan at the end of implementation in 2034, or 0.9% of the EU's tariff schedule (see 
WT/REG396/1).  The difference in the number of tariff lines remaining dutiable in the EU and UK is mainly due to 
the products that are subjec t to entry prices in the EU and are therefore treated as not liberalized in the factual 
presentation.  WT/RE G441/1 /Rev.1  
 
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  Table 3. 2 United Kingdom : Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Lines  under the Agreement  
Avg. 
Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  
Remain 
Dutiable  2021 
(JAN)  
2022  
2024  
2026  
2029  
2031  
2034  
I 8.9 956 109 782   18   44 3 9.3 
II 4.4 554 213 307       34 6.0 
III 4.8 129 30 99         
IV 12.9 869 119 722   2   5 21 4.8 
V 0.4 231 202 29         
VI 2.7 1,226  550 672 3  1      
VII 3.7 301 86 208 3  1 3     
VIII 1.4 130 73 57         
IX 1.1 235 189 46         
X 0.0 195 195          
XI 7.0 1,149  243 906         
XII 7.3 106 17 75    14     
XIII 2.0 234 162 70 1 1       
XIV 0.5 58 47 11         
XV 0.6 955 804 143  8       
XVI 0.7 1,338  981 303 28 15 9 2     
XVII 3.7 286 121 60 16 16 56  17    
XVIII 0.6 299 218 81         
XIX 1.4 22 7 15         
XX 1.4 214 89 125         
XXI 0.0 7 7          
Total  3.8 9,494  4,462  4,711  51 40 87 19 17 49 58 5.4 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of averages, 
specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties23, the average r ate for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff rates 
are averaged to the 8 -digit level.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data pro vided by the UK.  
 
3.16.  Tariff liberalization by HS Chapter set out in Chart 3.1 shows that preferential duties for 
imports on lines remaining dutiable are lower than the corresponding MFN average duties  in: 
i. Chapter 18  (Cocoa and cocoa preparations): average pre ferential duty of 6% compared to 
the average MFN rate of 8% ;  
ii. Chapter 19 (Preparations of cereals, flour, starch or milk): av erage  preferential duty of 
4.8% compared to the average MFN rate of 5.8% ; and  
iii. Chapter 21 (Miscellaneous edible preparations ): average preferential duty of 3.8% 
compared to the average MFN rate of 7.7%.  
3.17.  Chapters 7 (Edible vegetables and certain roots and tubers),  8 (Edible fruit and nuts; peel of 
citrus fruit or melons ), 20 (P reparations of vegetables, fruit, nuts or other parts of plants  and part 
of) 22 ( Beverages, spirits and vinegar)  contain tariff lines under the entry price system, while 
 
23 Tariff lines 0302.41.00, 0302.43.90, 0302.44.00, 0303.51.00, 0303.53.90, 0303.54.10, 0303.89.40, 
0304.59.50, 0304.99.23, 0702.00.00, 0708.10.00, 0805.10 .22, 0805.10.24, 0805.10.28, 0808.10.80, 
0808.30.90, 0809.29.00 and 0809.40.05 are subject to MFN seasonal duties . WT/REG441/1 /Rev.1  
 
- 17 - 
 
  Chapter 11 (Products of the milling industry; malt; starches; inulin; wheat gluten) contain specific 
duties.   
Chart 3.1 United Kingdom : Average of dutiable rates, by HS Chapter  
 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rat e for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff 
rates are averaged to the 8 -digit level.  
Source:  WTO estimates based on data provided by the UK.  
 
3.1.3.2   Japan  
3.18.  Japan's applie d tariff in 20 21 consisted of 9,211  lines at the HS nine -digit level (HS 2017) . 
92.94% (8,561 lines)  were ad valorem  and 7.06%  (650 lines) were non -ad valorem .24 
3.19.  Table 3.3 below shows tariff elimination commitments by Japan under the Agreement. In 
2021, 3,729 lines were duty free on an MFN basis (40. 5% of Japan's total tariff), corresponding to 
89.9% of Japan's imports from the UK during the period 201 8-2020. Immediately following the entry 
into force of the Agreement, an additional 4,141  lines (4 5% of Ja pan's tariff) also became duty free 
for imports from the UK. This resulted in 85.5% of Japan's tariff becoming duty free for imports from 
the UK, corresponding to 99% of Japan's imports from the UK, by the end of 2021 . Following 10 
years of implementation , a total of 8,765 lines  are to become duty free  for imports from the UK . 
3.20.  At the end of the implementation period  in 2038 , 343 lines will remain dutiable,  which  
correspond s to 3.7% of Japan's tariff and 0. 1% of Japan's imports from the UK during 2018-2020.25  
 
24 229 lines specific, 75 compound, 316 mixed and 30 "other" duties.  
25 The EU -Japan EPA which applied to the UK before it left the EU, envisag es 390 lines (4.2% of the tariff) 
remaining dutiable for imports from the EU at the end of implementation in 2034, or 0.9% of the EU's tariff 
schedule (see WT/REG396/1).  
WT/RE G441/1 /Rev.1  
 
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  Table  3.3 Japan: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Japan's tariff 
schedule  Value of Japan's 
imports from UK  
(2018 -2020) a 
USD million  % of Japan's total 
imports from  
UK 
(2018 -2020)  
2021 (MFN)  3,729  40.5 6,560.0  89.9 
2021 4,141  45.0 665.9  9.1 
2022 243 2.6 15.5 0.2 
2023 17 0.2 0.0 0.0 
2025 80 0.9 5.2 0.1 
2026 45 0.5 0.1 0.0 
2027 8 0.1 0.8 0.0 
2028 495 5.4 29.7 0.4 
2030 7 0.1 0.3 0.0 
2031 3 0.0 0.0 0.0 
2033* 100 1.1 16.8 0.2 
Remain dutiable  343 3.7 4.5 0.1 
TOTAL  9,211 100.0  7,298.7  100.0  
Note:  Tariff lines subject to in -quota rates  (both MFN and under Agreement)  are excluded in the 
computation . For the calculation of averages, specific rates are excluded, and the ad valorem  parts of 
alternate rates are included .  
 Based on the HS 2017 nomenclature.  
a Import coverage is from HS chapters 1 -97 and imports under the  in-quota tariff lines are excluded.  
* The last year of implementation period is 2038 for one tariff line which is (210690122), part of the 
MFN in -quota tariff line and also part of the tariff liberalization under the Agreement. Since all the in -
quota tari ff line are excluded in the computation, it is not reflected in the tariff related tables.  
Source:  WTO estimates based on data provided by Japan and the IDB -WTO.  
 
3.21.  Table 3.4 shows Japan's tariff elimination under the Agreement by HS Section s. The 343 lines 
excluded from tariff elimination once implementation is completed are found in  HS Sections I ( live 
animals, II ( vegetable products) and IV ( prepared food).  A large number of the lines remaining 
dutiable are subject to non -ad valorem  rates of duty. These Sections correspond to HS  Chapters 01, 
02, 04, 05, 07, 10, 11, 12, 17, 18, 19, 2 1 and 2 3. Average tariffs on the lines remaining subject to 
duties range from 20% for HS Section II  (Vegetable products)  to 23.3% for HS Section IV  (Prepared 
food) . 
  
   WT/REG441/1 /Rev.1  
 
 
 
- 19 - Table 3.4 Japan: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
MFN 20 21 Number of duty -free lines under the Agreement  Remaining 
dutiable 
lines  Avg. Final 
Tariff  
(Dutiable)  2021  2022  2023  2025  2026  2027  2028  2030  2031  2033  
I 9.2 765 118 300 13 8 2 30 8 119 6 3 34 124 22.2 
II 6.0 592 184 229 56 1 10   24    88 20.0 
III 3.6 89 22 33 21 2 1 1  9      
IV 16.1 814 73 256 149 6 25 5  150   19 131 23.3 
V 0.7 249 168 80      1      
VI 1.9 1,137  412 716 4     3   2   
VII 2.2 307 115 192            
VIII 10.5 193 65 3    9  90   26   
IX 3.2 322 121 129   42   30      
X 0.0 167 167             
XI 6.2 1,847  88 1,754       4 1     
XII 16.6 104 5 23      57   19   
XIII 1.2 165 99 64      2      
XIV 1.4 75 53 22            
XV 0.9 847 609 238            
XVI 0.0 923 916 7            
XVII 0.1 162 161 1            
XVIII 0.2 258 249 6      3      
XIX 6.9 22  22            
XX 1.7 166 97 66      3      
XXI 0.0 7 7             
Total  4.8 9,211  3,729  4,141  243 17 80 45 8 495 7 3 100 343 22.3 
Note:  Tariff lines subject to in -quota rates (both MFN and under the Agreement)  are excluded in the computation . For the calculation of averages, specific rates are excluded, 
and the ad valorem  parts of alternate rates are included .  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates b ased on data provided by Japan and IDB -WTO.  WT/REG441/1 /Rev.1  
 
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  3.22.  As set out in Chart  3.2 average tariffs for most  HS Chapters where tariffs remain at the end 
of implementation are lower than their corresponding MFN duties. The biggest  differences are found 
in: 
i. Chapter 2 ( Meat and edible meat offal) : average preferential rate of 8.5% compared to the 
MFN average of 37.7% ;  
ii. Chapter 18 (Cocoa and cocoa preparations) : average preferential rate of 14.9% compared 
to the MFN average of 24.4%; and 
iii. Chapter 2 1 (Miscellaneous edible preparations) where the average preferential rate is 20.7% 
compared to the MFN average of 27.7% . 
Chart 3.2 Japan: Average of dutiable rates, by HS Chapter  
 
Note:  Tariff lines subject to in -quota rates (both MFN and under Agreement) are excluded in the 
computation. For the calculation of averages, specific rates are excluded, and the ad valorem  parts 
of alternate rates are included.  
Source:  WTO estimates based on d ata provided by Japan and the WTO -IDB. 
 
3.1.4   Tariff rate quotas  
3.23.  There are no tariff rate quotas under the Agreement.  
3.2  Rules of origin  
3.24.  The provisions on rules of origin are contained in Chapter 3 of the Agreement. Section A sets 
general provisions, such as defini tions; Section B specifies  the general requirements applicable for 
the determination of origin under the Agreement ; and Section C contains miscellaneous provisions . 
In addition, Chapter 3 has five Annexes  that clarify and complement the provisions of this Chapter . 
3.25.  According to Article 3.2, a product qualifies as originating when it  is: 
(a)  wholly obtained or produced in the Party  as defined in Article 3.326; 
(b)  produced exclusively from materials origin ating in that Party ; or 
 
26 With regards to fish, shellfish or other marine life taken by a Party's vessel, a "Party's vessel" includes, 
inter alia , a vessel or a factory ship in part ownersh ip with a member of the European Union ( subparagraph 2(c) 
of Article 3.3).  
WT/REG441/1 /Rev.1  
 
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  (c)  produced using non -originating materials provided they satisfy all applicable 
requirements of product specific rules of origin as contained in Annex 3 -B.  
3.26.  Annex 3 -A contains the applicable requirements for the product specific rules of origin as set 
out in Annex 3 -B. To qualify as originating, a product that is produced using non -originating materials 
must satisfy a change in tariff classification  (CTC) , a production process, a maximum value of non -
originating materials, a minim um regional value content27 or any other requirement specified in 
Annexes 3 -A and 3 -B. Generally, the requirement is a  CTC either at the sub-heading, heading or 
chapter level ; a maximum value of  non-originating  materials used in the ex -works price of the 
product (between 40% and 70%); a minimum regional value content used in the free -on-board price 
of the product (between 35% and 70%); or based on a specific process in certain  HS Chapters. 
Alternative rules of origin are also provided for in certain HS Chapters usually limiting the maximum 
value of non-originating materials used.  
3.27.  Appendix 1 to Annex 3 -B of the Agreement concerns determination of origin in relation to 
certain vehi cles and parts of vehicles . It includes  interim threshold s for non-originating materials 
and regional value content (RVC) for vehicles and parts of vehicles, and for vehicles of heading 
87.03, 84.07, 84.08, 87.06, 87.07 and 87.08.28 Section 3 applies to product specific rules of origin 
for certain motor vehicles through production process related to certain parts, implementation of 
which is subject to review upon request from either Party seven years after entry into force of the 
Agreement  (i.e. in 2028)  (Section 4).  
3.28.  Accumulation of origin is applicable as governed by the provisions of Article 3.5, 
complemented by the provisions of Annexes 3 -A through 3 -D to the Agreement. Where a product 
qualifies as originating in a Party  or in the EU29, subject to the provisions of Annex 3 -C30 and 3 -D31, 
it shall be considered as originating in the other Party if used in the production of another product 
in the other Party. Production carried out in a Party , or in the EU,  using  non-originating material s 
may be taken into account for the purpose s of determini ng the origin of a product , provided that the 
production goes beyond one or more of the insufficient working or processing operations referred to 
in Article  3.4. 
3.29.  Further conditions and additional products qualifying for diagonal cumulation with the EU may 
be negotiated, with the results to be incorporated into the Agreement in accordance with Article 
24.2. 
3.30.  A de minimis  tolerance rule permits the use of non -originating  materials that do not meet the 
conditions in Annex 3 -B to qualify as originating as long a s their total value does not exceed 10% of 
 
27 Calculation of a maximum value of non -originating materials and of a minimum regional value content 
is set out in Note 4 of Annex 3 -A. 
28 For motor vehicles under HS 87.03, the max imum non -originating materials used declines from 55% 
(year 1 -2) to 50% (year 3 -5) and 45% (year 6 onwards) while the RVC increases from 50% to 55% and 60% 
during this period. For vehicle parts the norms are maximum non -originating materials of 60% (or RVC  45%) 
(year 1 -3) to 50% (or RVC 55%) (from year 3 onwards) for HS 84.07 and 84.08; and 55% (or RVC 50%) (year 
1-4) to 50% (or RVC 55%) (year 5 onwards) for HS 87.06. For vehicle parts the norms are maximum non -
originating materials of 55% (or RVC 50%) (yea r 1-4) to 45% (or RVC 60%) (year 5 onwards) for HS 87.07. For 
parts of vehicles under HS 87.08 the requirements are either a  change in heading  (CTH) or maximum non -
originating materials of 60% or RVC 45% during year 1 -2 and CTH or maximum non -originating m aterials of 
50% or RVC 55% as of year 3 onwards.   
29 Including products  originating in the Principality of Andorra under Chapters 25 to 97 of the Harmonized 
System; and products originating in the Republic of San Marino. The rules of origin under Chapter 3  shall apply, 
mutatis mutandis , for the purpose of determining whether products are originating in the Principality of Andorra 
or the Republic of San Marino.  
30 Annex 3 -C specifies the list of the EU -originating products covered by the diagonal cumulation 
arrangement and includes, inter alia , meat, fish, dairy products, edible fruits and vegetables, prepared plant 
foodstuffs and beverages, mineral products, products of the chemical or allied industries, plastics and rubber, 
leather, furskins and articles thereof, cork, palp of wood, paper and arti cles thereof, textiles, footware, articles 
of stone, glass and ceramic, precious and semi -precious stones and metals, base metals, machinery, electrical 
equipment, transport equipment, instruments, arms and ammunition, furniture and toys, works of art and 
antiques.   
31 Annex 3 -D sets out the information required from the supplier for the exporter to complete the 
statement on origin of products .  WT/REG441/1 /Rev.1  
 
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  the ex -works or free on board (FOB) price of the product. Tolerance for textiles and apparel 
products32 shall be determined in accordance with Notes 6 to 8 of Annex 3 -A.  
3.31.  Origin procedures are set out in Section B of Chapter 3. The importing Party shall grant 
preferential tariff treatment to a product originating in the other Party on the basis of a claim for 
preferential tariff treatment based on a statement on the origin of the product by the exporter or  on 
the basis of the importer's knowledge that the product is originating. The claim shall be contained 
in the customs import declaration (Article  3.16).  
3.32.  The period of validity for a statement of origin shall not exceed 12 months, except for a single 
shipm ent (Article 3.17) . The customs authorities of the importing Party may conduct a verification 
of origin based on risk assessment methods, including random selection, through a request to the 
importer claiming preferential treatment. If a decision  is taken to suspend preferential treatment 
while awaiting the results of verification, release of the product concerned shall be offered to the 
importer subject to appropriate precautionary measures including  guarantees. The suspension shall 
be terminated as soon a s possible after determining the origin of the product  or the fulfilment of the 
other requirements of Chapter 3 (Article 3.21 ).  
3.33.  Article 3.22 provides for administrative cooperation between the Parties . A customs authority 
may, either by the end of two yea rs after the date of importation of the products or by the end of 
38 months after the date of the making out of that statement on origin, whichever is earlier, request 
for a verification from the other Party's customs authorities. Article 3.23 requires the  Parties to 
provide mutual assistance in cases of suspected breach of provisions of Chapter  3, in accordance 
with an agreement on cooperation and mutual administrative assistance (CMAA)  in customs matters 
to be concluded between the Governments of the Part ies. As reported by the Parties, an A greement 
between the Government s of Japan and the United Kingdom of Great Britain and Northern Ireland 
on co -operation and mutual administrative assistance in customs matters was signed and entered 
into force in January  2021. 
3.34.  Denial of preferential tariff treatment is permitted under the conditions set out in Article 3.24 . 
Article 3.25 requires each Party to maintain in accordance with their laws and regulations the 
confidentiality of any information provided to it by the other Party under Chapter 3. Article 3.26 
requires the Parties to establish administrative measures and  sanctions in accordance with their laws 
and regulations for persons who provide incorrect information for the purposes of obtaining 
preferential tariff treatment.  
3.35.  A Committee on Rules of Origin and Customs Related Matters is established pursuant to Artic le 
23.3 with its functions set out in Article 3.27.  
3.3  Export duties and charges, and quantitative restrictions  
3.36.  Article 2.12 concerns export duties. The Parties agree to neither adopt nor maintain any 
duties, taxes, fees or other charges of any kind  or any in ternal taxes or charges  on goods exported 
to the other Party  that are in excess of those that would be imposed on like goods destined for 
domestic consumption.  
3.37.  In Article 2.15 , the Parties agree to not adopt or maintain any prohibition or restriction on t he 
export  (or import)  or sale for export of any good except in accordance with Article XI of the GATT 
1994, which is incorporated into and made part of the Agreement , mutatis mutandis . If a Party 
intends to adopt a prohibition on the exportation or sale fo r export of a good listed in Annex 2 -B33, 
it shall seek to limit the prohibition or restriction, provide the other Party with written notice (in 
 
32 Applicable to textile and apparel products of HS Chapters 50 through 63.  
33 The goods listed in Annex 2 -B are as follows:  Chapter 25 (Salt; sulphur; earths and stone; plastering 
materials, lime and cement ), Chapter 26 (Ores, slag and ash ), Chapter 27 (Mineral fuels, mineral oils and 
products of their distillation; bituminous substances; mineral waxes ), Chapter 28 (Inorganic chemicals; organic 
or inorganic compounds of precious metals, of rare -earth metals, of radioactive elements or of isotopes ), Chapter 
71 (Natural or cultured pearls, precious or semi -precious stones, precious metals, metals clad with precious 
metal , and articles thereof; imitation jewellery; coin ), Chapter 72 (Iron and steel ), Chapter  73 (Articles of iron 
or steel ), Chapter 74 (Copper and articles thereof ), Chapter 75 (Nickel and articles thereof ), Chapter 76 
(Aluminium and articles thereof ), Chapte r 78 (Lead and articles thereof ), Chapter 79 (Zinc and articles thereof ), 
Chapter 80 (Tin and articles thereof ), Chapter 81 (Other base metals; cermets; a rticles thereof ). WT/REG441/1 /Rev.1  
 
- 23 - 
 
  advance,  if possible, in any case within 15 days) and give an opportunity for consultations 
(Article  2.15.2).  
3.38.  Article 2.16 requires that fees and formalities connected with exportation  (or importation)  be 
imposed in accordance with Article VIII and III of the GATT 1994.  
3.39.  On export (and import) licensing procedures, t he Parties restate their existing rights and 
obligations under the Agreement on Import Licensing and incorporate its general provisions  
(partially), automatic and non -automatic import licensing  provisions, mutatis mutandis . Such 
provisions also apply to any good listed in Annex 2 -B to the Agreement (Article 2.17).  
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.40.  Issues related to  SPS measures are set out in Chapter 6 of the Agreement, w hich applies to 
all SPS measures of the Parties under the WTO SPS Agreement that may, directly or indirectly, affect 
trade between the m (Article 6.2). The objectives include , inter alia , promoting cooperation between 
the Parties on the implementation of th e WTO SPS Agreement  (Article 6.1) . The Parties  also affirm 
their rights and obligations relating to SPS measures under the WTO SPS Agreement  (Article 6.4) .  
3.41.  Article 6.5 requires the mutual notification of the competent authorities and contact points for 
the matters covered by Chapter  6. As reported by the Parties, u pon entry into force of the Agreement 
they designated contact points and exchanged information on contact points and competent 
authorities.  
3.42.  Articles 6.6 -6.14 contain provisions on risk assessment ; import conditions, import procedures 
and trade facilitation ; audit; procedures for listing of establishments or facilities ; adaptation to 
regional conditions, transparency and exchange of information ; technical consultations ; emergency 
measures and the equivalence of measures in the context of the other Party's appropriate level of 
protection.  
3.43.  A Committee on Sanitary and Phytosanitary Measures is established by Article 23.3 of the 
Agreement. The objectives and functions of the  SPS Committee are set out in Article 6.15 . As 
reported by the Parties, a meeting of the Committee was held  on 27 April 2022 via videoconference .  
3.44.  The provisions of Chapter 6 are not subject to dispute settlement under Chapter 22 of the 
Agreement (Article 6.16).  
3.45.  Annex 6 to the Agreement covers food additives. The Parties recognize the importance of 
transparency and predictability with respect to the application and approval procedures for food 
additives.  
3.4.1.2   Technical barriers to trade  
3.46.  Provisi ons on technical barriers to trade (TBT) are set out  in Chapter 7 of the Agreement, and 
apply to the preparation, adoption and application of technical regulations, standards and conformity 
assessment procedures of central government bodies, as defined in the WTO TBT Agreement, that 
may affect trade in goods between the Parties. Purchasing specifications prepared by a governmental 
body for its production or consumption requirements, or sanitary and phytosanitary measures as 
defined in Annex A to the WTO SPS Agreement are excluded from the application of Chapter 7 
(Article 7.2).  The Parties reaffirm their rights and obligations under the WTO TBT Agreement and 
incorporate Articles 2 -9 and Annexes 1 and 3 of the  WTO TBT Agreement into the Agreement , 
mutatis mut andis  (Article 7.3). If a dispute arises where one Party alleges exclusive breach of one 
of these provisions in the WTO  TBT Agreement, only the WTO dispute settlement mechanism may 
be invoked. Articles 7.5 to 7.1 1 contain provisions on technical regulations, international standards, 
standards, conformity assessment procedures, transparency, market surveillance, marking and 
labelling . The recognition of technical regulations that are equivalent between the Parties s hall be 
considered positively, upon request. Article 7.8 envisages cooperation on mutual recognition in WT/REG441/1 /Rev.1  
 
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  accordance with the Protocol on Mutual Recognition and the Parties may decide to extend the 
coverage of products, the applicable regulatory requirements  and the recognized conformity 
assessment bodies.   
3.47.  Under the Agreement, a  Party may impose  penalties  or take other appropriate measures  
against the removal or deliberate defacement of any lot identification code for wines and spirits that 
is provided by th e supplier and placed on the container, as well as to exchange of information, 
experiences and best practices on this matter (Article 7.12). Cooperation between the Parties on 
technical regulations, standards and conformity assessment procedures is set out in Article 7.13.  
3.48.  The Parties also agree to cooperate in the field of mutual recognition in accordance with the 
Protocol on Mutual Recognition34 (MRA Protocol, Article 7.8 ). The MRA Protocol lists sectors for which  
each Party accepts the results of conform ity assessment procedures required by its applicable laws, 
regulations and administrative provisions, including certificates and marks of conformity, that are 
conducted by the registered conformity assessment bodies of the other Party.  It covers 
telecommun ications terminal equipment  and radio equipment , electrical products, good laboratory 
practice (GLP) for chemicals, and good manufacturing practice  (GMP) for medicinal products 
(human). The MRA Protocol is not subject to the following provisions: security exceptions (Article 
1.5); confidential information (Article 1.6); transparency (Chapter 17); information sharing (Article 
20.3); dispute settlement (Chapter 22); institutional provisions (Chapter 23); amendments (Article 
24.2); and Article 18.1 of Annex 2 -C (Motor vehicles and parts).  As reported by the Parties, the 
Protocol has not been applied in accordance with Article 15 of the Protocol.  
3.49.  A Joint Committee on Mutual Recognition is established by Article 8 of the MRA Protocol.  As 
reported by the Parties, the Committee is not established yet.  
3.50.  A Committee on Technical Barriers to Trade is established by Article 23.3 of the Agreement. 
The objec tives and functions of the TBT Committee are set out in Article 7.14.  As reported by the 
Parties, t he first meeting of the UK -Japan Committee on Technical Barriers to Trade (TBT) was held 
on 29 June 2022 via videoconference.  
3.51.  As reported by the Parties, i n accordance with Article 7.15, the International Economy 
Division, Economic Affairs Bureau, MOFA is the contact point for Japan and the Department for 
International Trade (DIT), UK Government is the contact point for the UK.  Both Contact Points are 
already exchang ing information on TBT with each other.  
3.4.2   Safeguard mechanisms  
3.52.  The rules governing trade remedies in Sections B and C of Chapter 5 of the Agreement include 
disciplines on safeguard measures.  
3.4.2.1   Global safeguards  
3.53.  There are no significant changes in the pr ovisions on global safeguards under the EU -Japan 
EPA. The Parties affirm their right to apply safeguard measures to an originating good of the other 
Party in accordance with Article XIX of GATT 1994 and the WTO Agreement on Safeguards  
(Article  5.9). The Pa rties also agree not to apply or maintain with respect to the same good at the 
same time (a) a bilateral safeguard measure set out in Section B of Chapter  5, (b) a measure under 
Article XIX of the GATT 1994 and the Agreement on Safeguards, or (c) a safeguard measure set out 
in Section C of Part 3 of Annex 2 -A (Agricultural safeguard measures) .  
3.54.  The provisions o n global safeguards are not subject to dispute settlement under Chapter 22  
of the Agreement (Article 5.9) .  
3.4.2.2   Bilateral safeguards  
3.55.  Section B of Chapter 5 concerns bilateral safeguard measures. Article 5. 2 provides that if as 
a result of the elimination or reduction of a customs duty in accordance with Article 2.8, an 
 
34 For the UK, the MRA Protocol applies to its customs territory, i.e. the territories of the United 
Kingdom, the Bailiwicks of Guernsey and Jersey and the Isle of Man (Article 1.3(4)).  WT/REG441/1 /Rev.1  
 
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  originating good from a Party is being imported into the other Party in such incr eased quantities in 
absolute terms or relative to domestic production and under such conditions as to cause or threaten 
to cause serious injury to a domestic industry of the importing Party may adopt specified measures 
to the extent necessary to prevent or  remedy the serious injury to the domestic industry of the 
importing Party and to facilitate the adjustment of the domestic industry. Such measure may consist 
of either the suspension of any further duty reduction provided for in Chapter 2  (trade in goods)  of 
the Agreement, or the increase of the rate of customs duty on the originating good to a level not 
exceeding the lesser of (i) the MFN applied rate of customs duty in effect on the day of application 
of the bilateral safeguard  measure , and (ii) the MFN applied rate of customs duty in effect on 31 
January 2019 .  
3.56.  Under Article 5.3  (conditions and limitations) , no bilateral safeguard measure shall be adopted 
for a period of more than two years  with a possible extension,  so the overall period does not exceed  
four years . Bilateral safeguards may only be applied during the transition period.35  
3.57.  Article 5.4 requires an investigation prior to  the imposition of a bilateral safeguard measure 
which must be completed within one year following its date of initiation.  Article 5.5 sets out 
notification obligations for the Party seeking to impose a measure. Consultations on and possible 
compensation for a  bilateral safeguard are provided for in Article 5.6.  
3.58.  Provisional bilateral safeguard s may be taken in critical circumstances , the duration of which 
shall not exceed 200 days  as in Article 6 of the WTO Agreement on Safeguards.  
3.4.2.3   Special safeguards   
3.59.  There a re no changes to provisions, products or triggers on special safeguards. In Article 2.5 
of the Agreement  the Parties agree that  originating agricultural goods36 shall not be subject to any 
duties applied by the other Party pursuant to a special safeguard m easure taken under the WTO 
Agreement on Agriculture.  Agricultural safeguard measures  (ASMs)  under the UK-Japan CEPA  may 
be taken  by Japan  for the following goods: beef, pork, processed pork, whey protein concentrate, 
whey powder, fresh oranges, and race ho rses ( Section C of Part 3 to Annex 2 -A). As reported by the 
Parties, 13 agricultural safeguard measures for race horses have been applied by Japan after the 
Agreement entered into force.  
3.60.  Section C of Part 3 to Annex 2 -A specifies  (a) the originating agricultural goods that may be 
subject to ASMs ; (b) the trigger levels for applying such measures; and (c) the maximum rate of 
customs duty that may be applied in each year for each such good  (please, see Table 3.5 below for 
more detai led information).  
3.61.  If the conditions set out in Section C are satisfied, Japan has the right to increase the rate of 
customs duty on an originating agricultural good to a level not exceeding the lesser of (a) the MFN 
applied rate of customs duty in effect a t the time of the application of the ASM; (b) the MFN applied 
rate of customs duty in effect on the day immediately preceding the date of entry into force of the 
Agreement ; and (c) the rate of customs duty set out in Section C . No measure may be applied or  
maintained on or after the date on which the rate of customs duty  referred to in subparagraph 3(c) 
of Sub -section 1 of Section C  is zero.  
3.62.  For beef, pork, processe d pork, WPC, whey powder and fresh oranges, Japan reserves the 
right to  apply an ASM only if the aggregate volume of imports of originating agricultural goods from 
the UK, and from the EU37, for a particular year exceeds the trigger level as set out in Sub -Sections 
2 to 7 of Section C of Part 3 of Annex 2 -A of the UK -Japan CEPA .  
 
35 The transition period is the period beginning on the date of entry into force of the Agreement and 
ending ten years after the date of completion of tariff reduction or elimination on that particular good in 
accordance with the Party's schedule in Annex 2 -A. 
36 Originating agricultural goods mean agricultural goods qualifying as originating goods of a Party 
(Article 2.5).  
37 As defined in Article 2.5.1 of the EU -Japan EPA and classified under the Schedule of Japan referred to 
in respective sub -sections of Sec tion C of Part 3 of Annex 2 -A to the EU -Japan EPA . WT/REG441/1 /Rev.1  
 
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  Table 3.5: Japan quantity and price -based agricultural safeguards  (ASM)  
HS line number  
(Product description)  Timeframe  Trigger  (metric 
tonnes per year, 
MT/Y)  Safeguard  
(customs duty)  
Beef     
020110.000, 020120.000, 
020130.010, 020130.020, 
020130.030, 020130.090, 
020210.000, 020220.000, 
020230.010, 020230.020,  
020230.030, 020230.090  14 years 
ASM ceases 
to be applied 
in 
accordance 
with the EU -
Japan EPA38 From 4 5,056 MT  
(Y1) to 50,500 MT  
(Y8); 
additional 385 MT 
per previous year 
(Y9-Y13). 
From Y14: 
additional 770  MT 
per previous year . 38.5% (Y1); 30% (Y2 -Y8); 20% (Y9 -Y12); 
18% (Y13). From Y14:  1% less of the 
previous year or the same rate depending on 
whether ASM was applied in previous year.  
 
020610.020, 020629 .020 38.5% (Y1); 32.7% (Y2); 30.6% (Y3); 30% 
(Y4-Y8); 20% (Y9 -Y12); 18% (Y13). From 
Y14: 1% less of the previous year or the 
same rate depending on whether ASM was 
applied in previous year.  
Pork     
020311.040, 020312.022, 
020319.022, 020321.040, 
020322.022, 020329.022, 
020630.099, 020649.099  9 years  The level is decided 
under the 
conditions set out 
in Sub -Section 3.1.  4% (Y1); 3.4% (Y2 -Y4); 2.8% (Y5 -Y7); 
2.2% (Y8 -Y9).  
020312.021, 020312.023, 
020319.021, 020319.023, 
020322.021, 020322.023, 
020329.021, 020329.023, 
020630.092, 020630.093, 
020649.092, 020649.093  (i) the difference between CIF import price 
per kilogramme and the First Safeguard 
Standard Import Price39; and  
(ii) the first alternative rate40. 
020311.020, 020311.030, 
020321.020, 020321.030  (i) the difference between CIF import 
price/kg and the Second Safeguard Standard 
Import Price41; and  
(ii) the second alternative rate42 
Processed pork     
021011.010, 021011.020, 
021012.010, 021012.020,  
021019.010, 021019.020, 
021099.011, 021099.019, 
160241.011, 160241.019, 
160242.011, 160242.019, 
160249.210, 160249.220.  9 years  Y1-Y4: aggregate 
imports from the 
UK and the EU43 for 
the respective year 
exceeds 118% of 
the largest annual 
aggregate volume 
of imports during 
any of the 
preceding 3 fiscal 
years.  
Y5-Y9: aggregate 
imports from the 
UK and the EU44 
exceeds 121 % of 
the largest annual 
aggregate volume 
of imports during 85% of base rate45 (Y1-Y2); 60% of b ase rate 
(Y3-Y7); 45% of base rate (Y8 -Y9). 
 
38 If during any four consecutive years after the 15th year, Japan does not apply an agricultural safeguard 
measure under th e Sub-Section  2 on SG1* goods, it shall not apply any further agricultural safegua rd measures 
under this Sub -Section on such goods. The same applies to SG1** goods. (Paragraph 6, Sub -Section 2 of Section 
C of Part 3 of Annex 2 - A to the EU -Japan EPA).  
39 For details , please refer to paragraph 3.2(b) of Sub -Section 3, Section C, Part 3 to  Annex 2 -A. 
40 Ibid. 
41 For details , please refer to paragraph 3.2(c) of Sub -Section 3, Section C, Part 3 to Annex 2 -A. 
42 Ibid. 
43 For originating agricultural goods as defined in paragraph 1 of Article 2.5 of the EU -Japan EPA and 
classified under the SG3 safeguard in the Note in the Schedule of Japan referred to in paragraph 1 of Sub -Section 
4 of Section C of Part 3 of Annex 2 -A to the EU -Japan EPA.  
44 Ibid. 
45 For the purposes of subparagraph (a), the base rate is comprised of an ad valorem  duty component 
and a specific duty component, each of which is reduced to the percentages identified in subparagraph (a) of 
Sub-Section 4 to determine the rate of customs duty referred to in subparagraph 3(c) of Sub -Section 1. The 
ad valorem duty componen t of the base rate is 8.5 %, and the specific duty component is equal to 614.85 yen 
per kilogramme minus 60% of the CIF import price per kilogramme.  WT/REG441/1 /Rev.1  
 
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  HS line number  
(Product description)  Timeframe  Trigger  (metric 
tonnes per year, 
MT/Y)  Safeguard  
(customs duty)  
any of the 
preceding 3 fiscal 
years.  
Whey protein 
concentrate (WPC)     
040410.129, 040410.139, 
040410.149, 040410.169, 
040410.179, 040410.189  19 years 
ASM ceases 
to be applied 
in 
accordance 
with the EU -
Japan EPA . From 2,267 MT 
(Y1) to 7,438 MT 
(Y18).  
From Y19: 
additional 573 MT 
per previous year.  29.8%+120 yen/kg (Y1 -Y3); 23.8%+105 
yen/kg (Y4 -Y8); 19.4%+90 yen/kg (Y9 -
Y13); 13.4%+75 yen/kg (Y14 -Y18).  
From Y19:  the ad valorem  duty component 
of the customs duty reduced by 1.9% and the 
specific duty component by 10.70 yen/kg  (if 
no ASM was applied in the previous year ); or 
reduced by 1% and 5 yen/kg, respectively , if 
ASM was applied.  
Whey powder     
040410.129, 040410.139, 
040410.149, 040410.169, 
040410.179, 040410.189  14 years  
ASM ceases 
to be applied 
in 
accordance 
with the EU -
Japan EPA.  From 2,611 MT 
(Y1) to 5,190 MT 
(Y13).  
From Y14: 
additional 458 MT 
per previous year.  29.8%+75 yen/kg (Y1 -Y3); 23.8%+45 
yen/kg (Y4 -Y8); 13.4%+30 yen/kg (Y9 -
Y13).  
From Y14: the ad valorem  duty component 
of the rate of customs duty reduced by 2% 
and the specific duty component by 4 yen/kg 
(if no ASM was applied in the previous year) ; 
or reduced by 1% and 2 yen/kg, respectively, 
if ASM was applied.  
Fresh oranges     
080510.000  5 years  If aggregated 
imports from the 
UK and the EU 
exceed 2000 MT  (1 
December - 31 
March).  28% (Y1 -Y2); 20% (Y3-Y5). 
Race horses     
010129.290  13 years  If the CIF import 
price per good is 
less than 90% of 
the trigger price 
(the trigger price 
shall be agreed 
under paragraph 4 
of Sub -Section 8, 
or 10.7 million yen 
if no specific 
agreement.)  30% of the difference between the MFN duty 
and the duty under the Agreement , if the 
difference between the CIF import price and 
the trigger price > 10%, but <= 40% of the 
trigger price . 
50% of the difference between the MFN duty 
and the duty under the Agreement , if the 
difference between the CIF import price and 
the trig ger price > 40%, but <= 60% of the 
trigger price . 
70% of the difference between the MFN duty 
and the duty under the Agreement , if the 
difference between the CIF import price and 
the trigger price > 60%, but <= 75% of the 
trigger price . 
The difference between the MFN duty and the 
duty under the Agreement , if the difference 
between the CIF import price and the trigger 
price > 75%. 
Source:  WTO Secretariat on the basis of the Agreement.  
3.4.2.4   Balance of payments safeguards  
3.63.  Provisions on balance of payments safeguards are unchanged and include  that nothing in the 
Agreement shall be construed as preventing a Party from taking any measures for  balance -of-
payments purposes. If a Party takes such measures,  it shall do so in accordance with Article XII of 
the GATT 1994 and the Understanding on the Balance -of-Payments Provisions of the General 
Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement. In addition , it is stated 
that nothing in th e Agreement shall preclude the use by a Party of exchange controls or exchange 
restrictions in accordance with the Articles of Agreement of the International Monetary Fund  (Article 
2.20) . WT/REG441/1 /Rev.1  
 
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  3.4.2.5   Other saf eguard  measures  
3.64.  As in the EU -Japan EPA s afeguard provisions related to motor vehicles and parts are in 
Article  18 of Annex 2 -C. The Parties agree that d uring the 10 years following the entry into force of 
the Agreement , each of the Parties  reserves the right  to suspend equivalent concessions or other 
equivalent obligations if the other Party does not apply or ceases to apply a UN Regulation as 
specified in Appendix 2 -C-1. 
3.65.  The suspension  remains in place until the complet ion of an expedited dispute settlement 
procedure under Article 19 of Annex 2-C (see Section 3.5.3 below) , or a mutually acceptable solution 
is found, including through consultations under Article 19 (b) of Annex  2-C, whichever is earlier.  
3.4.3   Anti-dumping and countervailing measures  
3.66.  Under Section D of Chapter 5  the Parties maintain  their rights and obligations under the WTO 
Agreement s on Anti -Dumping (AD) and Subsidies and Countervailing Measures (SCM).  
3.67.  The provisions largely follow those in the EU -Japan EPA. In Article 5.12 the Part ies agree to 
conduct anti -dumping and countervailing duty investigations in a fair and transparent manner and 
based on the WTO Agreement s on AD and SCM . Prior to application of provisional measures under 
the WTO AD and SCM Agreement s and in any case prior to the making of a final determination, each 
Party shall ensure full disclosure of the essential facts which form the basis for the decision on 
whether to apply provisional or definitive measures. Such disclosure shall be made in wr iting and 
take place in sufficient time for interested parties to defend their interests.  Where an investigating 
authority of a Party intends to make use of the facts available pursuant to Article 6.8 of the  WTO AD 
Agreement, it shall inform the interested  party of its intentions to do so and give a clear indication 
of the reasons it seeks to use the facts available.  
3.68.  Article 5.13  requires the investigating authority of the importing Party to provide opportunities 
for producers in the importing Party, importers and industrial users of the good and representative 
consumer organizations to submit their views in writing in relation to the antidumping  or 
countervailing duty investigation including concerning the potential impact of a duty on their 
situation.  
3.69.  Under Article 5.14 the investigating authority of the importing Party, upon receipt of a written 
application for the initiation of  an anti -dumping investigation, is required to  notify, at least 10 days 
in advance of the initiation of such investigation, the exporting Party of such application.  
3.70.  The Parties also agree on  a "lesser duty rule", which provides for the investigating author ity 
of the importing Party to consider whether the amount of the anti -dumping duty or the countervailing 
duty to be imposed shall be the full margin of dumping or subsidy or less , in accordance with the 
importing Party's laws and regulations (Article 5.15) . 
3.71.  Chapter 3 (Rules of Origin and Origin Procedures) of the Agreement does not apply to anti -
dumping and countervailing measures under the Agreement (Article 5.11).  
3.72.  The provisions of Section D of Chapter 5 are not subject to dispute settlement under 
Chapter  22 (Article 5.11) . 
3.4.4   Subsidies and state -aid 
3.73.  The provisions on subsidies follow those in the EU -Japan EPA and are set out in Chapter 12 
of the Agreement.  The Chapter applies to specific subsidies46 to the extent they are related to 
economic activities47 (Article 12.3).  Exceptions to the application of Chapter 12 are listed in 
Article  12.3 and include, inter alia , subsidies granted to enterprises entrusted by the government 
with the provision of services to the general public for public policy objectives; to compensate the 
 
46 Further to Article 12.2 of the Agreement  which sets out definitions of economic activities and 
subsidies , specific subsidy means a subsidy which is determined mutatis mutandis  to be specific in accordance 
with Article 2 of the WTO SCM Agreement.  
47 For greater certainty, education provided under the domestic educational system of each Party shall 
be considered  as a non -economic activity  (footnote to Article 12.3.1) .  WT/REG441/1 /Rev.1  
 
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  damage caused by natural disasters or other exceptional occurrences; and to audio -visual ser vices.  
Other e xceptions to the application of Chapter 12 are : 
i. Article s 12.5 ( notification) and 12.6 ( consultations) do not apply to subsidies, the 
cumulative amounts or budgets of which are less than 450,000 special drawing rights (SDR) 
per beneficiary for  a period of three consecutive years . 
ii. Articles 12.6 ( consultations) and 12.7  (prohibited subsidies) do not apply to subsidies 
related to trade in goods covered by Annex 1 to the WTO Agreement on Agriculture  and 
subsidies  to trade in fish and fish products.  
iii. Article 12.7 in addition  does not apply to subsidies granted temporarily to respond to a 
national or global economic emergency .48 Such subsidies shall be targeted, economical, 
effective and efficient in order to remedy the identified temporary national or  global 
economic emergency.  
iv. Article 12.7 also does not apply to subsidies granted by sub -central levels of government 
of each Party.  
3.74.  The Parties agree that nothing in Chapter 12 affects the rights and obligations of either Party 
under the WTO SCM Agreement , Article XVI of the GATT 1994 and Article XV of GATS (Article  12.4).  
3.75.  Notification requirements applicable to subsidies are stipulated in Article 12.5 and shall be 
made every two years, with the first notification no later than three years from the date of entry 
into force of the Agreement. If a Party makes publicly available on an official website or notifies 
subsidies pursuant to Article 25.2 of the WTO SCM Agreement,  it shall be considered to have met 
the requirement s under the Agr eement .49,50  
3.76.  Consultations may be held between the Parties if one Party considers that a subsidy of the 
other Party has , or could have , a significant negative effect on its trade or investment interests 
under Chapter  12 (Article 12.6) . The Party may submi t a request for consultation in writing 
(Article  12.6) . The Parties shall enter into consultations with a view to resolving the matter, provided 
that the request includes an explanation of how the subsidy has or could have a significant negative 
effect on trade or investment between the Parties. The Party receiving a request for consultations 
on its subsidy shall consider providing information about the subsidy, if requested. In the event that  
any information is not provided by the requested Party, that Par ty shall explain the absence of such 
information in its written response  (Article 12.6.4).  If after consultations the requesting Party still 
considers that the subsidy has or could have a negative effect on its trade or investment interests, 
under Chapter 12, the requested Party shall accord sympathetic consideration to the concerns of the 
requesting Part y.  
3.77.  Articles 12.7 prohibits subsidies of a Party that have or could have a significant negative effect 
on trade or investment between Parties.  Each Party shall ensure that enterprises use subsidies only 
for the specific purpose for which the subsidies were granted  (Article 12.8) . Article  12.9 states  that 
Article XX of the GATT 1994 and Article XIV of the GATS are incorporated into and made part of the 
Agreement, mutatis mutandis .  
3.78.  Paragraph 5 of Article 12.6 ( consultations) is not subject to dispute settlement under Chapter 
22 of the Agreement (Article 12.10).  
3.79.  In Article 2.14 on export competition, the Parties affirm their commitment under WTO 
Ministerial Decisions of 19 December 2015 on Export Competition, (WT/MIN(15)/45 and WT/L/980), 
 
48 For greater certainty, an economic emergency shall be understood as one that affects the whole 
economy of a Party (Article 12.3.6).  
49 As clarified in footnote 3 to Article 12.5(1) , in the case of  subsidies which have previously been  notified, 
the information provided in updated notifications may be limited to indicating any  modifications, or the absence 
thereof, from the previous notification.  
50 On subsidies in services , please,  see also Section  4.6.4 of this factual presentation.  WT/REG441/1 /Rev.1  
 
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  to exercise utmost restraint with regard to export subsidie s51 and export measures with equivalent 
effect. Japan and the UK d o not have export subsidy reduction commitments in Section II of Part IV 
of their respective goods  schedules under the WTO . 
3.80.  Chapter 13 of the Agreement concerns state -owned enterprises  (SOEs ), enterprises granted 
special rights or privileges and designated monopolies , engaged in commercial activities. Where they 
engage both in commercial and non -commercial activities, only the commercial activities are covered 
by Chapter 13 (Article 13.2). Definitions used in Chapter 13 are set out in Article 13.1.  
3.81.  Exclusions to the application of Chapter 13 include, (a) situations where covered enterprises 
act as procuring entities covered either under each Party's Annexes to Appendix I to the GPA or 
under Pa rt 2 of Annex 10 to the Agreement conducting procurement for governmental purposes and 
not with a view to commercial resale or with a view to use in the production of a good or in supply 
of a service for commercial sale; (b) any service supplied in the exe rcise of governmental authority; 
and (c) covered enterprises if in any one of the 3 previous consecutive fiscal years the annual 
revenue derived from the commercial activities was less than 200 million SDR (Article  13.2.5). The 
provisions on non -discrimina tory treatment and commercial considerations (Article 13.5) do not 
apply to : 
i. Supply of financial services by  SOEs pursuant to a government mandate which supports 
exports or imports or private investment outside the territory of the Party and is offered on 
terms consistent with the Arrangement52 (Article 13.2.6) .  
ii. Cabotage in maritime transport services, air services or related services in support of air 
services53 (with exceptions54) and audio -visual services (Article 13. 2.7). 
iii. A covered enterprise to the extent it makes purchases and sales of a good or a service 
pursuant to any existing non -conforming measure s in accordance with  paragraph s 1 and 2  
of Article 8.12 and  paragraph s 1 and 2 of Article 8.18  as set out in the Parties' Schedule s in 
Annex I and Annex II to Annex 8 -B (Article 13.2.8).  
3.82.  The Parties affirm their rights and obligations under paragraphs 1 t o 3 of Article  XVII of GATT 
1994, the Understanding on the Interpretation of Article XVII of the GATT  1994 as well as under 
paragraphs 1, 2 and 5 of Article VIII of GATS  (Article 13.3) .  
3.83.  The Parties agree to respect and make best use of relevant internatio nal standards including, 
inter alia , the OECD Guidelines on Corporate Governance of State -Owned Enterprises . The Parties 
shall also ensure that any regulatory body or any other body exercising a regulatory function is 
independent from , and not accountable to any of the enterprises regulated by it , and acts impartially 
in like circumstances with respect to all enterprises it regulates including SOEs, enterprises granted 
special rights or privileges and designated monopolies (Article 13.6 ). 
3.84.  Article  13.7 defines an information exchange process if a Party has reason to believe that its 
interests under Chapter 13 are being adversely affected by the commercial activities of a covered 
enterprise of the other Party. The Parties also agree to sha re or otherwise make publicly available 
on an official website a list of state -owned enterprises  for the central level  of government and the 
designation of a monopoly.  
 
51 "Export subsidies" means subsidies referred to in subparagraph (e) of Article 1 of the Agreement on 
Agriculture and other subsidies listed in Annex I to the SCM Agreement that may be applied to agricultural 
goods which are listed in Annex 1 to the Agreeme nt on Agriculture (Article 2.14).  
52 The Arrangement on Officially Supported Export Credits, developed within the framework of the 
Organisation for Economic Co -operation and Development (OECD) or a successor undertaking, whether 
developed within or outside of the OECD framework, that has been adopted by at least 12 original WTO Members 
that were Participants to the Arrangement as of 1 January 1979 (Article 13.1).  
53 The Parties clarify in the footnote that Section B "does not apply to a service using an aircr aft whose 
primary purpose is not the transportation of goods or passengers, such as aerial fire -fighting, flight training, 
sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towing, helicopter -lift for 
logging and constructio n, and other airborne agricultural, industrial and inspection services.".  
54 Section B of Chapter 8 applies to (i) aircraft repair and maintenance services during which an aircraft 
is withdrawn from service; (ii) the selling and marketing of air transport services; (iii) computer reservation 
system (CRS) services; and (iv) ground handling services.  WT/REG441/1 /Rev.1  
 
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  3.85.  The general exceptions of Article XX of GATT 1994 and Article XIV of GATS are incorpora ted 
into and made part of the Agreement, mutatis mutandis  (Article 13.8).  
3.4.5   Customs -related procedures  
3.86.  Chapter 4 applies to matters relating to each Party's customs legislation, other trade -related 
laws and regulations and general administrative procedures r elated to trade, including their 
application to goods traded between the Parties, as well as cooperation between the Parties (Article 
4.2). Nothing in Chapter 4 affect s the Parties' rights and obligations under Chapters 6 (SPS) and 7 
(TBT) of the Agreement  and in the case of any inconsistency, the provisions in these chapters prevail 
to the extent of the inconsistency. Objectives of Chapter 4 are set out in Article  4.1.  
3.87.  Transparency provisions (Article 4.3) require the Parties to publish their customs legi slation 
and other trade related laws and regulations as well as general administrative procedures and 
relevant information of general application related to trade, including as appropriate on the Internet. 
Customs legislation, other trade -related laws and regulations and general administrative procedures 
related to trade should be made available as early as possible before their entry into force except in 
certain situations. The Parties also  agree to  designate enquiry points and provide for regular 
consulta tions between their customs authorities and other trade related agencies and traders or 
other stakeholders.  
3.88.  With regard to the procedures for import, export and transit (Article 4.4), the Parties agree 
to adopt or maintain measures granting favourable treatment prior to the release of goods to traders 
or operators fulfilling criteria specified in their laws and regulations , as well as , to promote the use 
of advanced systems including those based on information and communication technology to 
facilitate the exchange of electronic data . They also agree  to work towards further simplification and 
standardi zation of data and documentation required by their customs authority and other trade -
related agencies .  
3.89.  The Parties agree to adopt or maintain c ustoms procedures that provide for the prompt 
release of goods; allow for advance electronic submission and processing of documentation prior to 
the arrival of the goods and allow for the release of goods prior to the final determination of customs 
duties,  taxes, fees and charges (Article 4.5).  Simplification of customs procedures and advance 
rulings are set out in Articles 4.6 and 4.7, accordingly.  
3.90.  The Parties also guarantee the right of appeal or review (administrative and judicial) to any 
person to whom an administrative decision has been addressed by the customs authorities or other 
trade related agencies  (Article 4.8) . The provisions related to risk management, post -clearance 
audit, transit and transhipment , customs cooperation  and temporary admission a re covered in Article 
4.9-13, respectively.  
3.91.  A Committee on Rules of Origin and Customs Related Matters is established pursuant to Article 
23.3 of the Agreement for the effective implementation and operation of Chapter 4 and the customs -
related matters of C hapter 2 ( trade in Goods) and of Article 14.57 ( enforcement – border measures) 
as well as the other responsibilities specified in Article 3.27. Its functions are set out in Article 4.14.  
3.4.6   Other regulations  
3.92.  There are no other regulations specific to trade in  goods in the Agreement.   
3.5  Sector -specific provisions on trade in goods  
3.5.1    Agriculture  
3.93.  As a part of the  tariff elimination and reduction commitments, Japan grants preferential access 
for some goods  originating in the UK in accordance with provisions of Section B of Part 3 of Annex 
2-A (known as the UK -Japan preferential tariff certificate ) covering, product s such as  wheat 
products, mixes and doughs and cake mixes, various food preparations, coffee, tea, and cheeses. 
Certificates for these products are issued by Japan's Ministry of Agriculture, Forestry and Fishing 
annually. An importer making a claim for pre ferential treatment for any of these products must 
submit the certificate to the customs authority. Detailed information on the application and WT/REG441/1 /Rev.1  
 
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  administration of  Japan's preferential treatment under the Agreement are presented in Annex 2 of 
this factual pr esentation .55  
3.94.  Cooperation in the field of agriculture , set out in Chapter 19 , aims at promoting cooperation 
on sustainable agriculture, including rural development and the exchange of technical information 
and best practices for providing safe and high -quality foods for consumers in the UK and Japan  
(Article 19.1) .  
3.95.  A Working Group on Co operation in the Field of Agriculture is established pursuant to 
Article  23.4 of the Agreement; its functions are set out in Article 19.5.  As reported by the Parties, 
the Working Group on Cooperation in the Field of Agriculture has not been held yet. The P arties have 
also agreed to establish contact points to facilitate communications between the Parties on any 
matter relating to Chapter 19 (Article 19.6).  As reported by the Parties, the contact points for the 
UK the DIT agreement managers , and MOFA is the contact point for Japan.  
3.96.  The provisions of Chapter 19 are not subject to dispute settlement under Chapter 2 2 of the 
Agree ment (Article 19.8).  
3.5.2    Wine and Shochu  
3.97.  Facilitation of wine product (classified under HS 22.04) export is covered in Section C of 
Chapter 2  of the Agreement.  
3.98.  The Parties agree on a three -phase a uthorization of oenological practices as set out  in Articles 
2.24-26 and Annex 2 -E (facilitation of wine product export).  The Joint Committee  may adopt 
decisions amending Annex 2 -E, to add, delete or modify references to oenological practices, 
restrictions and other elements (Article 2.30).  As reported by the Parties, the provisions on self -
certification of wine products originating in Japan (Articles 2.27 and  2.28) are no longer relevant in 
the context of wine trade between the UK and Japan, since the requirement for VI -1 certificates on 
all wine imported to the UK was removed from 1st January 2022.  
3.99.  Annex 2 -D (facilitation of Shochu export) permits single dist illed shochu (as defined 
under  Japan's Liquor Tax Law) to be placed in the U K market in bottles of four go (合) (720m l), five 
go (合) (900ml)  and one sho (升) (1,800ml ).  
3.100.   A Working Group on Wine is established pursuant to Article 23.4 of the Agreement; its 
modalities are set out in Article 2.27.  
3.5.3   Motor vehicles  
3.101.   Provisions related to motor vehicles and parts are covered in Annex 2 -C to the Agreement 
and two related Appendixes : Appendix 2 -C-1 lists 85 UN Regulations applied by both Parties 
concerning motor vehicles  and Appendix 2 -C-2 lists 2 UN Regulations concerning motor vehicles 
which are applied by the UK, but not yet considered by Japan . 
3.102.   The Annex applies to all products of  motor vehicles, their parts and equipment regulated by 
two prior UN Agreements, in 1958 and 1998 , and excludes products used exclusively for agriculture 
or forestry  (Article 2) . Its objectives are to promote high levels of safety, environmental protection , 
energy efficiency and anti -theft performance of motor vehicles ; to facilitate trade between the 
Parties through regulatory cooperation and elimination of non-tariff measures ; to enhance the 
international harmonization of requirements and the mutual recog nition of type approvals ; and to 
achieve convergence of regulatory requirements of the Parties through the application of UN 
Regulations and global technical regulations  (Article 3) .  
3.103.   The p rovisions on relevant international standards and standardising bod y, application of, 
amendments to, establishment of and cessation of application of relevant UN Regulations are set 
 
55 For additional details, please also refer to Section 3.1.4 and Annex 2 of the factual presentation for the 
EU-Japan EPA (document WT/REG396/1).  WT/REG441/1 /Rev.1  
 
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  out in Articles 4 -8 of Annex 2 -C. The Parties also agree to amend Appendix 2 -C-1 or 2 -C-2 based 
on an assessment by the Working Group on Motor Vehicles and Parts .  
3.104.   Article 10 concerns international whole vehicle type approvals under UN Regulation No. 0 
which the Parties commit to accept  and cooperate in the implementation of , to facilitate its worldwide 
use and enlarge d coverage . Article 12 includes  disciplines on the introduction of domestic technical 
regulations. Consultation s on the introduction or amendment of domestic technical regulations  are 
foreseen  in Article 13. Regulatory exceptions to the disciplines of Annex 2-C are permitted under 
Article 15, for urgent and compelling risks for human health, safety or the environment. A joint 
cooperation procedure is set out in Article 17 on any matters concerning covered products.  
3.105.   The Parties agree to refrain from amendin g existing domestic technical regulations in a 
manner that renders them more trade -restrictive than necessary to fulfil a legitimate objective for 
the importation and the putting into service on their domestic market of products for which type 
approvals ha ve been granted pursuant to UN Regulations  (Article 11) . They also agree to not prevent 
or unduly delay the placing on their markets of new technologies or features that are not yet 
regulated, unless there are duly substantiated risks  to human health, safe ty or the environment 
(Article 14) . In Article 16, the Parties state their understanding on regulatory measures restricting 
trade.  
3.106.   A safeguard mechanism for motor vehicles under Article 18 of Annex 2 -C permits a Party to 
suspend equivalent concessions or other obligations in the event that the other Party does not apply 
or ceases to apply a UN Regulation that listed in Appendix 2 -C-1. The measure remains in place until 
the completion of an accelerated dispute settlement procedure under Article 19 of Annex  2-C. As 
reported by the Parties, there has been no use of the safeguard mechanism to date.  
3.107.   A Working Group on Motor Vehicles and Parts is established pursuant to Article 23.4 of the 
Agreement; its functions are set out in Article 20.2 of Annex 2 -C. As reported by the Parties,  the 
first meeting of the UK-Japan Working Group on Motor Vehicles and Parts took place on 24 June 
2022 .  
3.108.   Chapter 22 ( dispute settlement) applies to Annex 2 -C as modified by  Article 19 of Annex  2-
C.  
4  PROVISIONS ON TRADE IN SERVICES  AND INVESTMENT  
4.1.  The p rovisions related to trade in services, investment liberalization and electronic commerce 
are covered in Chapter 8 of the Agreement : Section A sets out  general provisions  (Articles 8.1 -5); 
Section B  concerns investment liberalization  (Articles 8.6 -13); Section C  provides for cross border 
trade in services ( Articles 8.14 -19); Section D  sets out provisions for entry and temporary stay of 
natural persons  (Articles 8.20 -28); and Section E concerns regula tory framework (Articles 8.29 -69). 
Section  F covers provisions related to electronic commerce (Articles 8.70 -86).56  
4.2.  Parties have taken a "negative list" approach to scheduling commitments in investment and 
cross border trade in services. Annexes I and II to Annex 8 -B contain reservations for existing 
measures and future measures of the Parties, respectively.  Annex III concerns business visitors for 
establishment purposes, intra -corporate transferees, investors and short -term business visitors, and 
Annex  IV concerns contractual service providers and independent professionals.  
4.3.   A Committee on Trade in Services, Investment Liberalisation and Electronic Commerce is 
established pursuant to Article 23. 3. Its functions are described in Article 8.4 and include, inter alia, 
discussing regulatory matters and enhancing cooperation with regards to trade in audio -visual 
services. As reported by the Parties, t he first meeting of the Committee on Trade in Services, 
Investment Liberalisation and Electronic Commerce took place on 1st November 2021 online .  
4.1  Scope and definitions  
4.4.  There are no changes to the scope of the commitments on services  in comparison with the 
Japan -EU Economic Partnership Agreement . The Parties affirm their commitments under the WTO 
 
56 On electronic  commerce, refer to Section 5.13 of this factual presentation.  WT/REG441/1 /Rev.1  
 
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  Agreement and their pledge  to create a better climate for the development of trade and investment 
between the m and agree to create arrangements for the progressive and reciprocal liberalization of 
trade in services and investment and for cooperation on electronic commerce  (Article 8.1 .1).  
4.5.  The Parties confirm  their right to adopt within their territories  regulatory measures necessary 
to achieve legitimate policy objectives, such as protection of public healt h, safety, the environment 
or public morals, social or consumer protection or the promotion and protection of cultural diversity 
(Article 8.1.2). Chapter  8 does not apply to measures affecting natural persons of a Party seeking 
access to the employment mar ket of the other Party, nor to measures regarding nationality or 
citizenship, residence or employment (Articles 8.1.3). Definitions used in Chapter 8 are set out in 
Article 8.2.  
4.6.  The p rovisions  on cross border trade in services (Section C) and investment li beralization  
(Section B)  do not apply to cabotage in maritime transport services57, air services or related services 
in support of air services58 (with exceptions59) or audio -visual services (Article s 8.6.2 and 8.14.2 ). 
On government procurement and subsidies60, Section C (cross border trade in services) does not 
apply (Article 8.14.2) . Under Section B (investment  liberalization)  provisions on market access, 
national treatment, MFN and senior management and boards of directors  do not apply to any 
meas ure by a Party with respect to government procurement and/or subsidies; in addition, 
Article  8.11 (prohibition of performance requirements) does not apply to government procurement 
(Article 8.12.5 -6).  
4.2  Denial of benefits  
4.7.  As in the EU -Japan EPA a  Party may deny the benefits of Section B to an entrepreneur that is 
a juridical person of the other Party and its covered enterprise if that juridical person is owned or 
controlled by a natural or juridical person of a third country and the denying Party adopts or 
maintains measures in relation to the third country that (a) are related to the maintenance of 
international peace and security, including the protection of human rights, and (b) prohibit 
transactions with that juridical person or its covered enterprise or would be violated or circumvented 
if the benefits of Section B were accorded to them  (Article 8.13) . Identical provisions concern denial 
of benefits in relation to service suppliers and services of that service supplier (Article 8.19) . 
4.3  General provisions o n trade in services  and investment  
4.8.   The p rovisions on trade in services and investment are covered by Chapter 8 and Annexes 8 -
A, 8-B and 8 -C to the Agreement.   
4.9.  Articles 8.12 and 8.18 on non -confirming measures and exceptions clarify that provisions on 
market access, national treatment, MFN,  performance requirements and senior management and 
board of directors  do not apply to existing and future non-confirming measures listed by the Par ties 
in Annex I  and II  to the Agreement,  as well to the continuation, renewal, amendment or modification  
of such measures , as long as it does not decrease the conformity of such measure s with the 
mentioned provisions.  For the UK, such exclusion applies at the level of the central, regional, or local 
government. For Japan  - at the level of the central government, a prefecture and a local government  
other than a prefecture . 
 
57 For the United Kingdom, cabotage in maritime transport services under this Section covers 
transportation of passengers or goods between a port or point located in the United Kingdom and another port 
or point located in the United Kingdom, including on its  continental shelf, as provided for in the United Nations 
Convention on the Law of the Sea and traffic originating and terminating in the same port or point located in the 
United Kingdom.  
58 The Parties clarify in the footnote that Section s B and C of Chapt er 8 do "not apply to a service using 
an aircraft whose primary purpose is not the transportation of goods or passengers, such as aerial fire -fighting, 
flight training, sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towin g, 
helicopter -lift for logging and construction, and other airborne agricultural, industrial and inspection services."  
59 Section s B and C  of Chapter 8 appl y to (i) aircraft repair and maintenance services during which an 
aircraft is withdrawn from service;  (ii) the selling and marketing of air transport services; (iii) computer 
reservation system (CRS) services; and (iv) ground handling services.  
60 As defined in Chapter 12 of the Agreement.  WT/REG441/1 /Rev.1  
 
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  4.3.1   Market access  
4.10.  In respect of services  and investment , market access commitments in Arti cle 8.15 and 8.7 
respectively of the Agreement follow GATS Article XVI provisions .  
4.3.2   National treatment and MFN  
4.11.  National treatment and MFN provisions for trade in services are set out in Articles 8.16 and 
8.17, respectively, of the Agreement. For investment , Articles 8.8 and 8.9 of the Agreement cover 
national treatment and MFN provisions.  
4.12.  On cross border trade in services  and investment , Article s 8.16 and 8.8 respectively require 
each Party to accord to services and service suppliers and entrepreneurs and covered enterprises of 
the other Party treatment no less favourable than that it accords to its own like services and service 
suppliers  and entrepreneurs and enterprises  with respect to establishment in their own territories 
for Article 8.8 . For services t his requirement can be met by providing formally identical or formally 
different treatment to the treatment it provides to like services or suppliers of the other Party. Article 
8.17 and 8.9 furthermore requires  each Party  to accord to services and service suppliers and 
entrepreneurs and covered enterprises of the other Party treatment no less favourable than they 
accord to like services and service suppliers and entrepreneurs and enterprises of a third country.  
4.3.3   Commercial pr esence  
4.13.   Commercial presence is covered by Section B  (Investment liberalisation)  of Chapter 8 of the 
Agreement , which  applies to measures by a Party with regard to the establishment or operation of 
economic activities by entrepreneurs of the other Party and their covered enterprises (Article 8.6.1). 
The provisions of Section B go beyond the GATS definition of mode 3, as they also relate to  the 
establishment of companies producing goods (Article 8.2(f)).   
4.14.  For cross -border trade in services, a Party shall not adopt or maintain measures which require 
a service supplier of the other Party to establish or maintain any form of enterprise o r to be resident 
in the territory of the Party as a condition for the cross -border supply of a service  (footnote to Article 
8.15(a)(i)).  
4.3.4   Performance requirements  
4.15.  The Agreement prohibits the application of performance requirements in connection with the 
establishment or operation of any enterprise in the territory of a Party .61 Detailed provisions and 
applicable exceptions are found in Article 8.11.  
4.3.5   Senior Management and Boards of Directors  
4.16.  The Parties agree to not require a covered enterprise to appoint in dividuals of any particular 
nationality as executives, managers or members of boards of directors (Article 8.10).  
4.3.6   Movement of natural persons  
4.17.  Entry and temporary stay of natural persons are covered in Section D of Chapter 8, and 
Annex  B-III, B -IV and 8 -C to the Agreement .  
4.18.  Section D of Chapter 8 applies to measures affecting the entry and temporary stay for 
business purposes of natural persons, who are business visitors for establishment purposes, intra -
corporate transferees (IC Ts), investors, contractual s ervice suppliers (CSS), independent 
professionals (IPs) and short -term business visitors.62  
 
61 The footnote to Article 8.11.1 clarifies that nothing in paragrap h 1of Article 8.11 prevents the UK from 
enforcing an undertaking voluntarily given by a person in relation to a takeover or merger. An "undertaking 
voluntarily given" means that it is not imposed or required by the United Kingdom as a condition of approval  of 
the takeover or merger.  
62 As defined in Article 8.21.  WT/REG441/1 /Rev.1  
 
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  4.19.  A Party shall grant entry and temporary stay to natural persons of the other Party for business 
purposes, in accordance with Section D of Chapter 8 and Annexes III and IV of Annex 8 -B, provided 
that those natural persons comply with the immigration laws and  regulations of the former Party 
applicable to the entry and temporary stay (Article 8.22). The Parties also agree to make publicly 
available information on categories of visas available, including information on documentary 
requirements, application fees and the maximum length of stay permitted under each type of 
authorization  (Article 8.23) .  
4.20.  Article 8.24 clarifies that the Agreement does not impose any obligation on a Party regarding 
its immigration measures, except as specifically provided for in Sectio n D of Chapter 8. The following 
obligations from other sections of the Agreement are incorporated into Section D of Chapter 8:  
i. Articles 8.7 to 8.1163 of Section B ( investment liberalisation) of Chapter 8  apply to the 
measures affecting treatment of natural  persons for business purposes present in the 
territory of the other Party under the categories of : (i) business visitors for establishment 
purposes, (ii) intra-corporate transferees and (iii) investors ; and 
ii. Articles 8.15 and 8.1664 and 8.17 (MFN) of Secti on C ( cross-border trade in services) of 
Chapter 8  apply to the measures affecting treatment of natural persons for business 
purposes present in the territory of the other Party under the categories of: (i) contractual 
service suppliers and (ii) independen t professionals for all sectors listed in Annex IV to 
Annex   8-B; and (iii) short -term business visitors in accordance with Annex III to Annex 8 -B;  
 
4.21.  For business visitors for establishment purposes, ICTs and investors of the other party, the 
Parties agree to grant entry and temporary stay in accordance with Annex III to Annex 8 -B, and not 
to adopt or maintain  numerical quotas or the economic needs test limitations on the total number 
of natural persons participating in a specific sector or sub -sector  either on the basis of a territorial 
subdivision or on the basis of its entire territory  (Article 8.25) . Annex III of Annex 8 -B to the 
Agreement contains reservations for both Parties  concerning the entry and temporary stay of  
business visitors for  establishment purposes, ICTs, investors and short -term business visitors . 
Paragraph 1 of the Schedule of the UK under Annex III of Annex 8 -B provides that existing non -
conforming measures do not apply to Articles 8.25 ( business visitors for establishment purposes, 
ICTs and investors ) and 8.27 ( short-term business visitors) , to the extent of the non -conformity. 
For short term business visitors  from the UK,  Japan65 agrees to grant entry and temporary stay for 
up to 90 days (Article 8.27).  
4.22.  For CSS and IPs, each Party agree s to grant entry and temporary stay in accordance with 
Annex IV to Annex  8-B (Article 8.26) . Appendix IV lists limitations o n the business activities of CSS 
and IPs in Japan. The UK Schedule allow s the supply of services in its territory by CSS or IPs of 
Japan through the presence of natural persons in accordance with Article 8.26 ( CSS and IPs ) in 
respect only of the sectors listed in the Schedule66, and by reference to the limitations listed in 
 
63 Articles 8.7 to 8.11 of the Agreement cover the provisions on market access, national treatment, MFN, 
senior management and boards of directors, and  prohibition of  performance requirements, respectively. The 
provisions of these articles are incorporated t o Section D subject to the provisions of Articles 8.6 ( scope) and 
8.12 ( non-conforming measures and exceptions), as applicable . 
64 Article 8.15 and 8.16 of the Agreement cover the provisions on market access and national treatment, 
respectively. The provisi ons of these articles are incorporated to Section D subject to the provisions of Articles  
8.14 ( scope) and 8.18 ( non-conforming measures), as applicable.  
65 The Footnote to Article 8.27 clarifies that the United Kingdom does not take commitments in respect of 
short-term business visitors.  
66 Paragraphs 7 and 10 to the UK's Schedule to Annex IV of Annex 8 -B. In addition to the sectors/sub -
sectors listed in the UK's GATS commitments, under the Agreement the category of CSS has been liberalised for 
bookkeeping s ervices; computer and related services; R&D services; market research and opinion polling 
services; related scientific and technical consulting services; related scientific and technical consulting services; 
mining; maintenance and repair of vessels; maint enance and repair of rail transport equipment; maintenance 
and repair of motor vehicles, motorcycles, snowmobiles and road transport equipment; maintenance and repair 
of aircrafts and parts thereof; maintenance and repair of metal products, of (non -office)  machinery, of (non -
transport and non -office) equipment and of personal and household goods; translation and interpretation 
services; telecommunication services; postal and courier services; environmental services; insurance and 
insurance related services advisory and consulting services; other financial services advisory and consulting 
 WT/REG441/1 /Rev.1  
 
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  paragraph 13 of Annex IV. Japan's Schedule to Annex IV specifies the lists of business activities 
allowed for CSS and IPs from the UK, with the limitations further clarified  in Appendix IV. Compared 
to the EU -Japan EPA, apart from technical modifications, the  UK has scheduled commitments on 
temporary stay for accompanying partners and dependent children of ICTs (managers and 
specialists).  
Table 4.1 Comparison of categories and length of stay for temporary entry of business 
visitors in the UK -Japan CEPA and the GATS  
Category  Maximum length of stay  Commitments 
for spouses 
and/or 
dependents 
under the  
UK-Japan CEPA  UK-Japan CEPA  GATS  
United Kingdom     
(i) Business visitors 
for establishment 
purposes  Up to 90 days in any 12 -
month period.  The duration of "temporary stay" 
of business visitors is defined by 
the UK laws and regulations 
regarding entry, stay and work.  --- 
(ii) Intra-corporate 
transferees  
• managers  
• specialists  Up to 3 years, extendable.  The duration of "temporary stay" 
of intra -corporate transfers is 
defined by the UK laws and 
regulations regarding entry, stay 
and work.  Yes 
 
(iii) Investors  Up to 1 year.  No commitments.  --- 
(iv) Contractual 
service suppliers  A cumulative period of not 
more than 6 months in any 
12-month period or for the 
duration of the contract, 
whichever is less.  A period of not more than 3 
months in any 12 -month period 
or for the duration of the 
contract, whichever is less.  --- 
(v) Independent 
professionals  A cumulative period of not 
more than 6 months in any 
12-month period or for the 
duration of the contract, 
whichever is less.  No commitments.  --- 
(vi) Short term 
business visit ors No commitments.  No commitments.  --- 
Japan      
(i) Business visitors 
for establishment 
purposes  Up to 90 days.  Up to 90 days.  --- 
(ii) Intra -corporate 
transferees  Up to 5 years.  Up to 5 years.  Yes 
(iii) Investors  Up to 5 years.  No commitments.  Yes 
(iv) Contractual 
service suppliers  Up to 5 years.  Up to 5 years.  Yes 
(v) Independent 
professionals  Up to 5 years.  Up to 5 years.  Yes 
(vi) Short term 
business visitors  Up to 90 days.  Up to 90 days.  --- 
Source:  WTO Secretariate based on Annex III and IV to the Agreement and the Parties' GATS schedules.  
 
4.23.  Annex 8 -C contains procedural commitments related to entry and temporary stay of natural 
persons for business purposes , as well as the Parties understandings rega rding cooperation on return 
and readmission of natural persons staying in a Party in contravention of its rules for entry and 
temporary stay.  
4.24.  The Parties agree to designate a contact point for the effective implementation and operation 
of Section D of Chap ter 8 and notify the contact details including information regarding the relevant 
officials.  As reported by the Parties, t he contact point for Japan is the European Union Economic 
 
services; transport advisory and consulting services; travel agencies and tour operators' services; tourist guides 
services; and manufacturing advisory and consulting servic es.  WT/REG441/1 /Rev.1  
 
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  Affairs Division, Economic Affairs Bureau , while for the UK it is Bilateral Trade Relations in the 
Department for International Trade.  
4.4  Liberalization commitments  
4.4.1    The United Kingdom  
4.4.1.1   MFN and horizontal commitments  
4.25.  Under the GATS, the UK has a broad reservation for services considered as public utilities at 
a national or local level, and for types of establishment ; other horizontal restrictions apply to mode  4. 
Under the Agreement, as under the GATS, the UK has, inter alia , a horizontal "public utilities carve -
out"67, limitations on the form of certain legal entities, and possib le preferential treatment for the 
right of establishment resulting from existing or future bilateral agreements. Moreover, under the 
Agreement, the U K has a  horizontal reservation concerning services performed in connection with 
defence and national securi ty (including production, distribution and trade in war materials) . 
4.26.  Under the GATS, the UK has a number of MFN exemptions in areas such as audiovisual 
services , a variety of transport services and financial services. A number of MFN exemptions have 
also be en registered for all sectors and with respect to, inter alia , existing and future bilateral 
agreements with third -parties .68 Under the Agreement, MFN treatment commitments for investment 
liberali zation and for cross -border trade in services are referred to in Article s 8.9 and Article 8.17 , 
respectively. In Annex 8 -B-I and 8 -B-II, the UK lists reservations for rental or leasing services and 
other business services related to aviation69, maritime tra nsport and any other commercial activity 
undertaken from a ship (registering a vessel and operating a fleet under the flag of the UK) , inland 
waterways transport and auxiliary services to inland waterways transport , and MFN exemptions for 
road and rail tra nsport, and air transport (services auxiliary to air transport).  The UK has also listed 
a broad reservation with regards to the collection, purification, and distribution of water .70 
4.4.1.2   Sector specific commitments  
4.27.  The following section identifies some of the main differences, by sector, between the UK's 
specific commitments under the GATS and its sector -specific commitments under the Agreement. 
Under the Agreement as in the GATS the UK has made commitments in  eleven  out of twelve  sectors 
identified in the WTO Services Sectoral Classification (W/120).  Under the Agreement, t he UK's 
reservations in the Annexes are without prejudice to the rights and obligations of the Parties under 
the GATS.   
4.28.  Under Annex I to Annex 8 -B on existing measures, measures affecting cabotage in maritime 
transport are not listed in the UK Schedule as they are excluded from the scope of Section B and C 
of Chapter 8 (Articles 8.6 and 8.14, respectively). In total, t he UK  lists 9 reservations  under  Annex 
8-B-I. Annex II to Annex 8 -B contains the UK's  16 future reservations on investment and cross 
border trade in services.71 There are no significant changes compared to the EU -Japan EPA.  
 
67 Public utilities exist in sectors such as related scientific and technical consulting services, research and 
development (R&D) services on social sciences and humanities, technical testing and analysis services, 
environmental services, health servic es, transport services and services auxiliary to all modes of transport. The 
reservation does not apply to telecommunications and to computer and related services.  
68 Document S/C/W/381.  
69 The UK's list of reservations as specified in Annex II to the Agreem ent states that differential treatment 
to a third country can be accorded  pursuant to existing or future bilateral agreements relating to the following 
services: (i) the selling and marketing of air transport services; (ii) computer reservation system (CRS ) services; 
(iii) maintenance and repair of aircrafts and parts; or (iv) rental or leasing of aircraft without crew.  
70 Reservation No. 14 by the UK (Annex 8 -B-II). 
71 They include placement services for domestic help personnel, other commercial or industrial workers, 
nursing and other personnel (CPC 87204, 87205, 87206, 87209); investigation services (CPC 87301); broadcast 
transmission services; publicly funded education, health71 and social71 services; th e supply of library, archive, 
museum and other cultural services; pilotage and berthing services (CPC 7452); inland waterways passenger 
and freight transportation (CPC 722); services auxiliary to inland waterways transportation; railway passenger 
and freig ht transportation (CPC 711); space transport and rental of space craft (CPC 733, part of 734); fishing, 
aquaculture and services incidental to fishing (ISIC Rev. 3.1 0501, 0502, CPC 882); collection, purification and 
distribution of water and "new services ". WT/REG441/1 /Rev.1  
 
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  4.29.  Table 4. 2 provides a comparison  of the UK's GATS specific commit ments in modes 1 -3 with 
those taken under the Agreement. Horizontal limitations and MFN reservations are not taken into 
account in the table which should be read in conjunction with  the respective Annexes of  Annex  8-B 
to the Agreement.  There is, as yet, no certified UK Schedule of Specific Commitments; the proposed 
draft has been circulated in series S/C/W/380 .  
Table 4.2 United Kingdom: Comparison between the GATS and Agreement specific 
commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  Future 
Measures  Existing 
Measures  Future 
Measures  
(Annex I)  (Annex II)  (Annex I)  (Annex II)  
1. Business services              
A. Professional  Services  Partial  Similar  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Full Same  … … … … 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  Partial  … 
D. Real  Estate  Services  Full Same  … … … … 
E. Rental/Leasing  Services  without  
Operators  Partial  Improved  Partial  … Partial  … 
F. Other  Business  Services  Partial  Similar  Partial  Partial  Partial  Partial  
2. Communication services              
A. Postal  services  … New Partial  … Partial  … 
B. Courier  services  …  New Partial  … Partial  … 
C. Telecommunication  services  Partial  Improved  … Partial   …  Partial  
D. Audiovisual services  … Same  Excluded  Excluded  Excluded  Excluded  
E. Other  … Same  … … … … 
3. Construction and related 
engineering services              
A. General  construction  work for buildings  Partial  Improved  … … … … 
B. 
General  construction  work for civil  Engine
ering Partial  Improved  … … … … 
C. Installation  and assembly  work  Partial  Improved  … … … … 
D. Building  completion  and finishing  work  Partial  Improved  … … … … 
E. Other  Partial  Improved  … … … … 
4. Distribution services              
A. Commission  agents'  services  Partial  Improved  … … … … 
B. Wholesale  trade services  Partial  Similar  … Partial  … Partial  
C. Retailing  services  Partial  Improved  … Partial  … Partial  
D. Franchising  Partial  Improved  … … … … 
E. Other  … Same  … … … … 
5. Education services              
A. Primary education services  Partial  Improved  … Partial  … Partial  
B. Secondary education services  Partial  Improved  … Partial  … Partial  
C. Higher education services  Partial  Improved  … Partial  … Partial  
D. Adult education  Partial  Improved  … Partial  … Partial  
E. Other education services  … Same   … Excluded   … Excluded  
6. Environmental services              
A. Sewage services  Partial  Improved  … … … … 
B. Refuse disposal services  Partial  Improved  … … … … 
C. Sanitation and similar services  Partial  Improved  … … … … 
D. Other  Partial  Improved  … … … … 
7. Financial services              
A. All insurance  and insurance -
related  services  Partial  Similar  … Partial  … … WT/REG441/1 /Rev.1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  Future 
Measures  Existing 
Measures  Future 
Measures  
(Annex I)  (Annex II)  (Annex I)  (Annex II)  
B. Banking  and other  financial  services  Partial  Similar  … Partial  … Partial  
8. Health related and social services              
A. Hospital services  Partial  Narrower  … Partial  … Partial  
B. Other Human Health Services  … New … Partial  … Partial  
C. Social Services  Partial  Narrower  … Partial  … Partial  
D. Other  … Same  … … … … 
9. Tourism and travel related services              
A. Hotels  and restaurants (including 
catering)  Partial  Improved  … … … … 
B. Travel agencies  and tour operators   
services  Full Same  … … … … 
C. Tourist  guides  services  Full Same  … … … … 
D. Other  … Same  … … … … 
10. Recreational and cultural and 
sporting services              
A. Entertainment  services  Partial  Narrower  … Excluded  … … 
B. News agency services  Full Same  … … … … 
C. Libraries, archives, museums and other 
cultural services  … Same  …  Excluded   … Excluded  
D. Sporting and other recreational services  Partial  Similar  … Excluded  … Partial  
E. Other  … Same  … … … … 
11. Transport services              
A. Maritime Transport Services  … New Partial  Partial  Partial  Partial  
B. Internal Waterways Transport  … New Partial  Partial  Partial  Partial  
C. Air  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Space  Transport  … Same  …  Excluded   … Excluded  
E. Rail  Transport  Services  Partial  Similar  Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Similar  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  … New  … Partial  …  Partial  
H. 
Services  auxiliary  to all modes  of  Transpo
rt Partial  Similar  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  Partial  Similar  Partial  …  Partial  …  
12. Other services not included 
elsewhere  … Improved  … Partial  … Partial  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . 
Full: Specific commitments not subject to limitation(s) under market access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment.  
… : No specific commitment . No existing or future measures are indicated . 
New: New commitments full or partial, with or wi thout limitations.  
Improved: Overall improved commitments under the Agreement compared to those under the GATS.  
Narrower: Some additional limitations (as compared to GATS commitments).  
Same:  Identical commitments.  
Similar:  Similar liberalization possibly, in individual cases, with limited improvements and/or limited additional 
reservations. The assessment is based on a broad perspective taking into consideration both sectoral 
coverage and the level of specific commitments.  
Excluded: Sector or subsector excluded from the Agreement ; or broad reservation s for future measures apply.  
Source:   The United Kingdom's schedules  annexed to the UK-Japan CEPA and the United Kingdom GATS Specific 
Commitments . 
 
4.4.1.2.1   Business services  
4.30.  In comparison to its GATS commitments, the UK has improved its commitments for taxation 
services , building -cleaning services , photographic services ; packaging services , and has undertaken WT/REG441/1 /Rev.1  
 
- 41 - 
 
  new commitments for research and development (R&D) services (CPC 851, 853), services incidental 
to manufacturing and energy distribution (CPC 887)  and collection agency services and credit 
reporting services .  
4.31.  Unlike its GATS commitments, the UK has introduced new reservation s for legal services (part 
of CPC 861, part of 87902) , R&D services on social sciences and humanities (part of CPC 85201) , 
technical testing and analysis services (part of CPC 86764, CPC 86769, CPC 8868) . 
4.32.  The broad "public utilities" carve -out may also app ly to business services.  
4.4.1.2.2   Communication services72 
4.33.  In comparison to its GATS commitments, the UK has improved commitments for 
telecommunication services and has undertaken new commitments for  postal and courier services 
(part of CPC 71235, part of CPC 73210 , part of CPC 751) . As under the GATS, the UK has reserve d 
the right to adopt or maintain any measure with respect to broadcast transmission service s, and 
audio-visual services are carved -out of the application of Section B (Investment liberalization) and 
C (Cross -border trade in services)  of the Agreement  (Articles 8.6 and 8.14 , respectively ). 
4.4.1.2.3   Construction and related engineering services  
4.34.  The UK has improved its GATS commitments  for construction and related engineering 
services,  as no existing or future measures have been indicated for this sector.  
4.4.1.2.4   Distribution services  
4.35.  In comparison to its GATS commitments, the UK has improved  coverage  and has undertak en 
new commitments for retail sales of pharmaceutical, medical and orthopaedic goods, and other 
services provided by pharmacists (CPC 63211) . A broad reservation for, inter alia , distribution of 
arms, munitions and war material has remain ed in place.   
4.4.1.2.5   Educational services  
4.36.  Similar to t he GATS, the UK has improved the scope of its commitments only for privately 
funded education services. A reservation for future measures has been listed for publicly funded 
education services and for the supply of privately funded other education services, i.e. other than 
those classified as being primary, secondary, higher and adult education services.  
4.37.  The broad public utilities carve -out may also apply to education services.  
4.4.1.2.6   Environmental services  
4.38.  The UK has indicated no existing or future measures for the sector. A broad reservation for 
future measures has been listed for services relating to the collection, purification and distribution 
of water to household, industrial, commercial or other users, including the supply of drinking water, 
and water management.  
4.39.  The broad public utilities carve -out may also apply to environmental services.  
4.4.1.2.7   Financial services73 
4.40.  Building upon its GATS commitments, the UK has listed c ertain reservations for future 
measures for insurance and insurance -related  services  and banking and other financial services . The 
UK has also reserved the right to adopt or maintain any measure requiring a financial institution, 
other than a branch, when establi shing in the U K, to adopt a specific legal form on a non -
discriminatory basis. Under t he Headnotes to Annexes I and II (para. 8) the UK can apply measures 
 
72 Regulatory provisions related to postal and courier, and telecommunication services are further 
described in Sections 4.6.2 and 4.6.3, respectively, of this factual presentation.  
73 Regulatory provisions related to financial services are described in S ection 4.6.1 of this factual 
presentation.  WT/REG441/1 /Rev.1  
 
- 42 - 
 
  to branches established in its territory  by companies incorporated in Japan  for prudential reasons 
(under the prudential carve -out in Article 8.65) . 
4.4.1.2.8   Health related and social services  
4.41.  Unlike its GATS commitments, t he UK has reserve d the right to adopt or maintain any 
measure with regard to the supply of all health and social services which receive public funding or 
State support in any form , as well to require establishment or physical presence of suppliers 
providing health and social services, including pension insurance.  
4.42.  In comparison to its GATS commitments, the UK has broadened the coverage of i ts 
commitments for health services  by undertaking  new commitments  for cross-border trade in 
privately funded ambulance and residential health facilities services other than hospital services 
(CPC 93192, 93193).  As under the GATS, the UK  has maintain ed a broad reservation for the supply 
of privately funded social services other than services relating to convalescent and rest houses , and 
old people's homes.  
4.43.  The broad public utilities carve -out may also apply to health  services.  
4.4.1.2.9   Tourism and travel related serv ices 
4.44.  The UK has improved its GATS commitments  for tourism and travel -related services (in 
particular by fully liberali zing hotels and restaurants  services ), as no existing or future measures 
have been listed  for this sector.  
4.4.1.2.10   Recreational, cultural and spo rting services  
4.45.  The sector is partially covered with limitations under the GATS; these limitations have been  
maintained in the Agreement,  i.e. a broad reservation for the supply of library, archive, museum, 
and other cultural services  (CPC 963) . In addition, the UK has reserve d the right to adopt or maintain 
any measure with respect to the cross -border supply (mode 1 and 2) of entertainment services, 
including theatre,  live bands, circus and discotheque services (CPC 9619, 964 other than 96492). A 
broad reservation has also been made for gambling  and betting services (CPC 96492) .  
4.4.1.2.11   Transport  services74 
4.46.  In comparison to its GATS commitments, the UK has improved  the scope of its commitments 
for air (with exceptions) , rail75 and road transport services  and has undertaken new commitments  
for maritime76 and internal waterways transport services77 and pipeline transport  with specific 
reservations listed in Annexes 8 -B-I and 8 -B-II to the Agreement . As under the GATS, the UK 
maintains a full reservation for s pace transport . 
4.47.  Unlike its GATS commitments, the UK has introduced establishment requirement s for road 
freight tran sportation services (part of CPC 712)78 and for services auxiliary to all modes of supply 
(CPC 742, 748, 749) ; as well as  residency requirement s for customs clearance services (part of CPC 
748).  
 
74 Regulatory provisions related to maritime transport services are described in Section 4.6.4 of this factual 
presentation. The coverage of air transport services is outlined in Section 4.1.  
75 In Annex II (Reserv ation 13), the UK has reserved the right to apply or maintain any future measure 
with respect to railway passenger and freight transportation (CPC 711).  
76 Measures affecting cabotage in maritime transport services are excluded from the scope of Section B 
of Chapter 8, pursuant to subparagraph 2(a) of Article 8.6 and Section C of Chapter 8, pursuant to subparagraph 
2(a) of Article 8.14.  
77 In Annex II (Reservation 13), the UK has listed inland waterways passenger and freight transportation 
(CPC 722); and serv ices auxiliary to inland waterways transportation (including cabotage transport on inland 
waterways (CPC 722)) as sectors reserved for the application of any future measures.  
78 Under the UK's GATS commitments, the supply of passenger (CPC 71213, 7122) and freight 
transportation services is unbound for Mode 1, with no limitations on market access and/or national treatment 
being scheduled for Mode 2 (S/C/W/380 as of December 3, 2018).  WT/REG441/1 /Rev.1  
 
- 43 - 
 
  4.48.  The broad public utilities carve -out may also apply to transp ort services.  
4.4.1.2.12   Other services not included  elsewhere  
4.49.  The UK has reserved the right to adopt or maintain any measure with regards to new services 
other than those classified in the UN CPC 1991 . 
4.4.2    Japan   
4.4.2.1   MFN and horizontal commitments  
4.50.  In terms of horizontal reservations u nder the GATS , Japan has a national treatment 
reservation for research and development  subsidies (Mode 3) ; other horizontal exemptions concern 
Mode 4.  In comparison, u nder the Agreement Japan  has listed  three future horizontal rese rvations  
reserv ing (i) the right to prohibit or impose limitations when transferring or disposing of equity 
interests in, or the assets of a state enterprise or a governmental entity ; (ii) the right to adopt or 
maintain any measure relating to investments in or the supply of telegraph services, betting and 
gambling services, manufacture of tobacco products, manufacture of Bank of Japan notes,  and 
minting and sale of coinage and postal services ; (iii) the right to adopt or maintain any measures 
relating to all unrecognised79 or technically unfeasible services . 
4.51.  Japan has no MFN exemptions under the GATS but under the Agreement it has 10 MFN 
reservations : unrecognised or technically unfeasible services ; the supply of services in the energy 
industry and in fisheries ; the acquisition or lease of land properties (including agricultural  land 
properties) in Japan;  public law enforcement and correctional services and social services ; bilateral 
and multilateral agreements involving aviation relating to the services covered  by the Agreement ; 
water transport ; freight forwarding business (excluding using air transportation) .  
4.52.  In addition, Japan reserves the right to adopt or maintain any m easure that accords less 
favourable  treatment to the UK to any exten t than it accords to a third countr y under any bilateral 
or multilateral agreement in force or signed prior to the Agreement's entry into force  (pre-existing 
agreement80), except for the T PP Agreement .81 With respect to the treatment that is accorded by 
Japan to a CPTPP member pursuant to the CPTPP Agreement, no less favourable treatment shall be 
accorded by Japan to the UK in accordance with MFN obligations under the UK -Japan CEPA. However , 
Japan has clarified that any preferential treatment accorded to a third country under any pre -existing 
agreement, which may be extended to those of a CPTPP member in accordance with the MFN 
obligations in the CPTPP Agreement, is not automatically extende d to the UK.  Japan has also 
reserved the right to adopt or maintain any measure that accord s differential treatment to countries 
under any agreement, other than pre -existing agreement s or the CPTPP Agreement, involving 
fisheries or maritime matters including salvage.  
4.4.2.2   Sector specific commitments  
4.53.  The following section identifies some of the main differences, by sector, between Japan's 
GATS schedule ("positive list") and its sector -specific commitments  under the Agreement ("negative 
list"). In comparison to its GATS schedule, u nder the Agreement Japan has made commitments in 
all the sectors identified in the WTO Services Sectoral Classification (W/120) , except for audio -visual 
services which are include d in Japan's  GATS schedule but excluded under the Agreement.  
 
79 According to the Agreement , any services not classified positively and ex plicitly in Japan's Standard 
Industrial Classification (JSIC) or CP C, at the date of entry into force of the Agreement was considered as an 
unrecognised service by the Government of Japan at that time.  
80 For greater certainty the reservation does not inclu de subsequent reviews, amendments or liberali zation 
under the framework of such pre -existing agreements, to the extent that any treatment to services, service 
suppliers, enterprises or entrepreneurs of a third country under the pre -existing agreement is ne wly accorded as 
a result of those subsequent reviews, amendments or liberali zation. (Reservation No. 15 by Japan, Annex 8 -B-
II). 
81 Trans -Pacific Partnership Agreement, done at Auckland on 4 February 2016 or the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership, done at Santiago on 8 March 2018  (Reservation No. 15 by 
Japan, Annex 8 -B-II). WT/REG441/1 /Rev.1  
 
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  4.54.  Under Annex I to Annex 8 -B on existing measures, Japan, lists 54 reservations. Under the 
Agreement, in comparison to the EU -Japan EPA, market access  reservation for distribution services 
has not been scheduled82, instead there is a national treatment reservation for manufacturing and 
information and communications .83 One broad reservation at the central government level concerns 
application of a prior notification and screening procedure to foreig n investors for investments in 
agriculture, forestry and fisheries and related services84, in order to determine if the investment is 
likely to cause a situation in which there is a significant adverse effect to the smooth operation of 
the Japanese economy . Japan has also listed an existing prior notification requirement and screening 
restriction on investment in a number of sectors including some which go beyond services.85  
4.55.  In Annex II to Annex 8 -B Japan's Schedule sets out 17 future reservations on investment  
liberalization  and cross -border trade in services , among which  investments in space industry; arms 
industry and explosives manufacturing industry; broadcasting; primary  and secondary educational 
services; electricity and gas utility as well as nuclear energy  industry; fisheries; acquisition and lease 
of land properties; public law enforcement and correctional services; security guard services; and 
dairy and beef cattle f arming.  In comparison to the EU -Japan EPA, Japan has no reservations on 
future measures for water transport services under the Agreement .86 
4.56.  Table 4. 3 provides a comparison of the Japan 's GATS specific commitments in modes 1 -3 with 
those taken under the Agr eement. Horizontal limitations and MFN reservations are not taken into 
account in the table which should be read in conjunction with the respective Annexes of Annex 8 -B 
to the Agreement.  
Table 4.3 Japan: Comp arison between the GATS and Agreement specific commitments  
Sector/Sub -sector  GATS  Compared to 
GATS  FTA 
Trade in services  Investment  
Existing 
measures  
(Annex I)  Future 
measures  Existing 
measures  Future 
measures  
(Annex II)  (Annex I)  (Annex II) 
1. BUSINESS SERVICES              
A. Professional services  Partial  Similar  Partial  ... Partial  ... 
B. Computer and related 
services  Full Narrower  ... ... Partial  ... 
C. Research and development  Partial  Improved  ... ... … … 
D. Real estate  Partial  Similar  Partial  Partial  … Partial  
E. Rental/Leasing services 
without operators  Partial  Improved  Partial  ... Partial  ... 
F. Other  Partial  Similar  Partial  Partial  Partial  Partial  
2. COMMUNICATION 
SERVICES        
A. Postal  ... New ... Partial  ... Partial  
B. Courier  ... New ... ... ... ... 
C. Telecommunication  Partial  Improved  ... Partial  Partial  Partial  
D. Audiovisual  Partial  Narrower  Excluded  Excluded  Excluded  Excluded  
E. Other  ... New ... Partial  Partial  Partial  
 
82 Reservation No. 6 by Jap an "Sector: Distribution Services, Sub -Sector: Wholesale Trade Services 
Supplied at Public Wholesale Market" of Annex 8 -B-I to the EU-Japan EPA.  
83 Reservation No. 13  by Japan  "Sector: Manufacturing and Information and Communications, Sub -Sector: 
Manufactur e of Electronic Parts, Devices, and Electronic Circuits and Information Services" of Annex 8 -B-I to the 
UK-Japan CEPA.  
84 The reservation concerns Agriculture, Forestry and Fisheries, and Related Services (except fisheries 
within the territorial sea, intern al waters, exclusive economic zone and continental shelf provided for in 
reservation No. 11 in the Schedule of Japan in Annex II to Annex 8 -B) (Reservation No. 1 by Japan, Annex 8-B-
I). 
85 The sectors are the heat supply industry; telecommunications busines s and internet based services; 
manufacturing industry of electronic parts, devices, and electronic circuits and information services industry; 
drugs, medicines and medical devices manufacturing; leather and leather product manufacturing; security guard 
services sectors; railway, road passenger and water transport; aircraft industry, oil and energy industries, and 
water supply and waterworks industry in Japan.  
86 Reservation No. 18 by Japan "Sector: Transport" of Annex 8 -B-II to the EU -Japan EPA.  WT/REG441/1 /Rev.1  
 
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  Sector/Sub -sector  GATS  Compared to 
GATS  FTA 
Trade in services  Investment  
Existing 
measures  
(Annex I)  Future 
measures  Existing 
measures  Future 
measures  
(Annex II)  (Annex I)  (Annex II) 
3. CONSTRUCTION AND 
RELATED ENGINEERING 
SERVICES        
A. General construction work 
for buildings  Partial  Similar  Partial  ... ... ... 
B. General construction work 
for civil engineering  Partial  Similar  Partial  ... ... ... 
C. Installation and assembly 
work Partial  Similar  Partial  ... ... ... 
D. Building completion and 
finishing work  Partial  Similar  Partial  ... ... ... 
E. Other  Partial  Similar  Partial  ... Partial  ... 
4. DISTRIBUTION SERVICES        
A. Commission agents' services  Partial  Improved  Partial  ... Partial  ... 
B. Wholesale trade services  Partial  Improved  Partial  ... Partial  ... 
C. Retailing services  Partial  Improved  Partial  ... Partial  ... 
D. Franchising  Partial  Improved  Partial  ... Partial  ... 
E. Other  ... New … … … … 
5. EDUCATIONAL SERVICES        
A. Primary education services  Partial  Similar  … Partial  … Partial  
B. Secondary education 
services  Partial  Similar  … Partial  … Partial  
C. Higher education services  Partial  Similar  Partial  ... Partial  ... 
D. Adult education services  Partial  Improved  ... ... ... ... 
E Other education services  ... New ... ... ... ... 
6. ENVIRONMENTAL 
SERVICES        
A. Sewage services  Partial  Improved  ... ... ... ... 
B. Refuse disposal services  Partial  Improved  ... Partial  ... Partial  
C. Sanitation and similar 
services  Partial  Improved  ... ... ... ... 
D. Other  Partial  Improved  … … ... … 
7. FINANCIAL SERVICES        
A. All insurance and insurance -
related services  Partial  Similar  Partial  Partial  ... ... 
B. Banking and other financial 
services  Partial  Similar  ... Partial  Partial  ... 
C. Other  ... New … … … … 
8. HEALTH RELATED AND 
SOCIAL SERVICES        
A. Hospital services  Partial  Improved  ... ... ... ... 
B. Other human health services  ... New ... ... ... ... 
C. Social services  ... New Partial  Partial  Partial  Partial  
D. Other  ... New … … … … 
9. TOURISM AND TRAVEL 
RELATED SERVICES        
A. Hotels and restaurants  Partial  Improved  ... ... ... ... 
B. Travel agencies and tour 
operators  Full Same  ... ... ... ... 
C. Tourist guides  Partial  Improved  ... ... ... ... 
D. Other  ... New … … … … 
10. RECREATIONAL, 
CULTURAL AND SPORTING 
SERVICES        
A. Entertainment services  Partial  Improved  ... ... ... ... WT/REG441/1 /Rev.1  
 
- 46 - 
 
  Sector/Sub -sector  GATS  Compared to 
GATS  FTA 
Trade in services  Investment  
Existing 
measures  
(Annex I)  Future 
measures  Existing 
measures  Future 
measures  
(Annex II)  (Annex I)  (Annex II) 
B. News agency services  Full Same  ... ... ... ... 
C. Libraries, archives, 
museums and other cultural 
services  Partial  Improved  ... ... ... ... 
D. Sporting and other 
recreational services  Partial  Improved  ... Partial  ... Partial  
E. Other  ... New … … … … 
11. TRANSPORT SERVICES        
A. Maritime Transport services  Partial  Improved  Partial  ... Partial  … 
B. Internal waterways transport  Partial  Improved  Partial  … Partial  … 
C. Air transport services  Partial  Improved  Partial  … Partial  … 
D. Space transport services  ... Same  … Excluded  … Excluded  
E. Rail transport services  Partial  Improved  … … Partial  … 
F. Road transport services  Partial  Improved  Partial  Partial  Partial  … 
G. Pipeline transport  Partial  Improved  … … … … 
H. Services auxiliary to all 
modes of transport  Partial  Improved  Partial  ... Partial  ... 
I. Other  ... New ... ... … … 
12. OTHER SERVICES NOT 
INCLUDED ELSEWHERE  ... New ... Partial  … Partial  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment.  
… : No specific commitment . No existing or future measures are indicated.  
New: New commitments full or partial, with or without limitations.  
Improved: Overall improved commitments under the Agreement compared to those under the GATS.  
Narrower: Some additional limitations (as compared to GATS commitments).  
Same:  Identical commitments.  
Similar:  Similar liberalization possibly, in individual cases, with limited improvements and/or limited additional 
reservations. The assessment is based on a broad perspective taking into consideration both sectoral 
coverage and the level of specific commitments.  
Excluded: Sector or subsector excluded from the Agreement ; or broad reservation s for future measures apply . 
Source:  Draft Consolidated GATS Schedule of Specific Commitments of Japan (S/DCS/W/JPN), prepared by 
the Secretariat (in  2003), and  Japan's schedules annexed to the UK -Japan CEPA .  
 
4.4.2.2.1   Business services  
4.57.  In comparison to the GATS, Japan has improved its commitments for  business services  (for 
example, engineering services and research and development  (R&D)  services ), and has made  new 
commi tments  in some sub -sectors in  professional services ( medical and dental services, veterinary 
services, services provided by midwives, nurses and physiotherapists ), rental/leasing services 
without operators (coastline ship leasing and aircraft registration)  and other business services 
(services incidental to mining, manufacturing,  and investigation  services) .  
4.58.  Like its GATS commitments, Japan has retained a market access restriction on investment s 
in and cross -border supply of  legal services (including paten t attorney's office and notarial services), 
accounting and scrivener services, architectural services , employment and credit collection services . 
Unlike its GATS commitments, prior notification requirement  and screening procedures have been 
listed, inter a lia, for computer and related services.   WT/REG441/1 /Rev.1  
 
- 47 - 
 
  4.4.2.2.2   Communication services87 
4.59.  Under the GATS, Japan mostly opened its telecommunications services. Like its GATS 
commitments, Japan retain s a market access restriction on investment s in and cross -border supply 
of postal  services88, telegraph  services and broadcasting. Japan has fully liberalized courier 
services .89 
4.60.  Unlike its GATS commitments,  audio -visual services are carved -out of the appli cation of 
Section s B (investment liberalization) and C ( cross-border trade in services) of the Agreement 
(Articles 8.6 and 8.14).  
4.4.2.2.3   Construction services  
4.61.  Similar  to the GATS, Japan has a partial commitment under  the Agreement listing existing 
restrictions on cross -border trade in services for construction (public and private) , demolition and 
recycling of construction materials.  
4.4.2.2.4   Distribution services  
4.62.  In comparison to  the GATS, Japan has broadened its commitments  in this sector , while 
indicating existing measures for liquors and livestock trading business . 
4.4.2.2.5   Education services  
4.63.  Under the Agreement, Japan has  widened  the scope of its commitments for educational 
services , including full liberalization of adult and othe r educational services.  Japan  has also  noted 
reservations on higher education al services which mirror its GATS requirement to be supplied by 
formal education institutions established by school juridical persons.  Unlike its GATS commitments, 
Japan has reserve d the right to adopt or maintain any measure relating to investment in primary 
and secondary education al services.  
4.4.2.2.6   Environmental services  
4.64.  Under the Agreement, Japan has liberalized environmental services, with  the exception of the 
existing reservation for cross -border supply of environmental surveying certification services , waste 
disposal business, n.e.c ., and the prior notification requirement and screening procedures for foreign 
investors who intend to inves t in the water supply and waterworks industry in Japan.90 
4.4.2.2.7   Financial Services91 
4.65.  The Headnotes to the reservations under Annex 8 -B-I and 8 -B-II, clarif y that w ithin the 
context of Article 8.65 (Prudential carve -out), Japan shall not be prevented from taking measures 
such as non -discriminatory limitations on juridical forms of commercial presence, or apply ing non-
discriminatory limitations concerning the admission to the market of new financial services, 
consistent with a regulatory framework aimed at a chieving those prudential objectives.  Securities 
firms are allowed to deal in securities defined in the relevant laws of Japan, and banks are not 
allowed to d o so unless allowed in accordance with those laws. Services supplied in the territory of 
the UK to the service consumer in Japan without any active marketing by the service supplier are 
 
87 Regulatory  provisions related to postal and courier, and telecommunication services are further 
described in Sections 4.6.2 and 4.6.3, respectively, of this factual presentation.  
88 For the purposes of this reservation, "postal services" means delivery of other perso ns' correspondence 
(tanin -no-shinsho -no-sotatsu) specified in paragraph 2 of Article 4 of Postal Law (Law No. 165 of 1947) and 
correspondence delivery service (shinshobin -no-ekimu) within the meaning of the Law Concerning 
Correspondence Delivery Provided b y Private Operators (Law No. 99 of 2002) (Footnote to Reservation No. 2 by 
Japan, Annex 8 -B-II). 
89 Special correspondence delivery services (tokutei -shinshobin -ekimu), delivery of parcels, packages, 
goods, direct mail and periodicals (Footnote to Reservati on No. 2 by Japan, Annex 8 -B-II). 
90 Japan's r eservations No. 38 (Annex 8 -B-I) and No. 8 (Annex 8 -B-II). 
91 Regulatory provisions related to financial services are described in Section  4.6.1 of this factual 
presentation.   WT/REG441/1 /Rev.1  
 
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  considered as services supplied cross-border, i.e. in the territory of a P arty to the service consumer 
of the other Party (as provided in Article 8.2 (d)(ii) ). 
4.66.  In comparison to the GATS, Japan has generally improved its commitments in insurance and 
insurance -related services, while maintaining a commercial presence requirement fo r insurance 
contracts on and any liability arising from goods being transported within Japan, and ships of 
Japanese registration which are not used for international maritime transport. Japan has also 
reserve d the right to adopt or maintain any measure wit h respect to cross -border trade in financial 
services for insurance and insurance -related services, with certain exceptions92, whether supplied 
by a UK financial service supplier established in the territory of the UK  as a principal, through an 
intermediar y or as an intermediary through Modes 1 and 2.  
4.67.   For banking and other financial services, as under the GATS, Japan has maintain ed its 
reservation for th e deposit insurance system , which  does not cover deposits taken by branches of 
foreign banks.  Japan has also reserve d the right to adopt or maintain any measure with respect to 
cross-border trade in financial services for banking and other financial services  with certain 
exceptions listed in Reservation No. 9 (Annex 8 -B-II).  
4.4.2.2.8   Health related and social servic es 
4.68.  In comparison to the GATS, Japan has improved its commitments in hospital services and has 
undertaken  new commitments for other human health services and social services, except for  labour 
insurance business  and vocational guidance centres . Japan has also listed  a future  reservation  
relating to investment or the supply of services in social services established or maintained for a 
public purpose . 
4.4.2.2.9   Tourism and travel related services  
4.69.  Under the Agreement, Japan has fully liberalized tourism and travel -related  services sector.  
4.4.2.2.10   Recreational, cultural and sporting services  
4.70.  Under the Agreement, Japan has fully liberalized recreational, cultural and sporting services 
sector , with the exception of the future reservati on in relation to the recreational fishing guide 
business . A broad future  reservation has also been included relating to betting and gambling 
services .93 
4.4.2.2.11   Transport services94 
4.71.  In comparison to the GATS, Japan has improved its commitments for the supply of 
international maritime transport services (including passenger and freight transportation) , subject 
to nationality requirement s for the ship . Similar to the GATS, in the Headnotes to Annex 8 -B-I and 
8-B-II, Japan, like the UK, has noted that measures affecting cabotage in maritime transport are not 
listed in the Schedule as they are excluded from the scope of Section B and C of Chapter 8 (Articles 
8.6 and 8.14, respectively).  Japan has also listed a restriction on the entry of foreign fl agged ships 
into its ports that are not open to foreign commerce ; on building and repairing vessels; and on 
conducting freight forwarding business using international shipping . 
4.72.  In comparison to the GATS, Japan has expanded  the scope of its  commitments for air 
transport services by covering  ground handling services. The s pace industry, a s under the GATS, 
has been reserved for any future measures.  
4.73.  Under the Agreement, Japan has also widened the scope of its commitments for rail and road 
transport services , while listing existing restrictions on investment s and cross border -supply of 
certain types of road transport (omnibus, taxicab, trucking, freight, passenger transport).  The scope 
 
92 Reservation No.  10 by Japan, Annex 8 -B-II. 
93 Reservation No. 2 by Japan, Annex 8 -B-II. 
94 Regulatory provisions related to maritime transpor t services are described in Section 4.6.4 of this factual 
presentation. The coverage of air transport services is outlined in Section 4.1.  WT/REG441/1 /Rev.1  
 
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  of services auxiliary to all modes of supply has also been expanded  with liste d reservation for cross -
border supply of customs brokerage business.  
4.74.  As an existing restriction , Japan has listed  a prior notification requirement on , inter alia , water 
transport,  aircraft industry,  road passenger and  railway transport.  
4.4.2.2.12   Other services not included elsewhere  
4.75.  Under the Agreement, Japan has listed a broad reservation for investments or cross -border 
supply of unrecognised or technically unfeasibly services.   
4.5  Regulatory provisions  
4.76.  The r egulatory framework for trade in services, inv estment liberali zation and electronic 
commerce is set out in Section E of Chapter 8 of the Agreement and covers the following: domestic 
regulation (Sub -section 1); provisions of general application (Sub -Section 2); postal and courier 
services (Sub -Section 3); telecommunications services (Sub -Section 4); financial services (Sub -
Section 5); and international maritime transport services (Sub -Section 6).  
4.77.  In Sub-section 2 ( provisions of general application) of Section E the Parties agree to ensure 
that all measu res of general application are administered in a reasonable, objective and impartial 
manner with the exception of the aspects of a measure  listed in Annexes I and II of Annex 8 -B to 
the Agreement (existing and future non -conforming measures) (Article  8.33) .  
4.78.  Article 8.34  (Review procedures for administrative decisions)  requires each Party to maintain 
judicial, arbitral or administrative tribunals or procedures which provide for a prompt review of 
administrative decisions that affect cross border trade in se rvices, establishment or operation or the 
supply of a service through the presence of a natural person.  
4.5.1   Domestic regulation  
4.79.  Domestic regulation provisions are set out in Sub -section 1 of Section E ( regulatory 
provisions ) of Chapter 8 of the Agreement. They apply to measures by a Party relating to licensing 
and qualification requirements and procedures, and technical standards (on services) that affect (a) 
cross border trade in services, (b) establishment or operation95 or (c) the supply of a service through 
the presence of a natural person in the territory of the other Party, in accordance with Article 8.24. 
The sub -section does not apply to such requirements and procedures and technical standards 
pursuant to existing or f uture measure s that do not conform to the market access or national 
treatment obligations.  
4.80.  The conditions for licensing and qualification requirements and procedures shall be based on 
the criteria of clarity, objectivity, transparency, advance public availability and accessibility . If a 
Party adopts or maintains a measure relating to licensing requirements and procedures and 
qualification requirements and procedures, it shall ensure, inter alia , that such a measure does not 
discriminate between men and women96 (Article 8.30) . 
4.81.  Licensing and qualification procedures shall be as clear and as simple  as possible, and not be 
a restriction on the supply of a service or pursuit of economic activity. Any  authori zation fee should  
be reasonable, transparent  and shall not in itself restrict the supply of a service or economic activity. 
Applications shall be processed within a reasonable period of time ; the decision  concerning the 
application  shall be communicated to the applicant . The competent authority of a  Party shall, at the 
request of the applicant and without undue delay, provide information concerning the status of the 
application (Article 8.31) . 
 
95 As defined in Article 8.2(i) or Article 8.2(p), respectively, of the Agreement.  
96 It is further clarified by the Pa rties that for the purposes of Article 8.30(2), differential treatment that 
is reasonable and objective, and aims to achieve a legitimate purpose, and adoption by a Party of temporary 
special measures aimed at accelerating de facto equality between men and  women, shall not be considered as 
discrimination.  WT/REG441/1 /Rev.1  
 
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  4.82.  The Parties agree to encourage their competent authorities, when adopting technical 
standards, to adopt stan dards developed through an open and transparent process (Article 8.3 2). 
4.5.2   Recognition  
4.83.  The p rovisions on mutual recognition are covered in Article 8. 35 of the Agreement.  Nothing 
in Sub -section 2 ( provisions of general application) shall prevent a Party from requiring that natural 
persons must possess the necessary qualifications or professional experience specified in the 
territory where the service is supplied.  
4.84.  Each Party shall encourage  relevant  professional bodies in its territory to provide joint 
recommendations on mutual recognition to the Committee  on Trade in Services, Investment 
Liberalisation and Electronic Commerce (the Committee)  in the field of professional services  sector . 
Any joint rec ommendation provided  shall be reviewed by the Committee, in order to assess the 
extent to which  the standards and criteria applied by each Party for authori zation, licensing, 
operation and certification  are converging and the potential economic value of a mutual recognition 
agreement.  
4.85.  The Committee shall establish the necessary steps for the Parties to negotiate a mutual 
recognition agreemen t (through their competent authorities)  for the authori zation, licensing, 
operation and certification of entrepreneur s and service suppliers, in particular, in the sector of 
professional services .  
4.5.3   Subsidies  
4.86.  Chapter 12 of the Agreement  on subsidies applies to specific subsidies97 to the extent they 
are related to economic activities98 (Article 12.3).  With regard to subsidies in services, Article 12 
only applies to the following sectors: architectural and engineering services, banking services, 
computer services, construction services, energy services, environment services, express delivery 
services, in surance services, telecommunication services and transport services.  
4.87.  Exceptions  to the Chapter are listed in Article 12.3 and include, inter alia , subsidies granted: 
to enterprises entrusted by the government with the provision of services to the general p ublic for 
public policy objectives; to compensate the damage caused by natural disasters or other exceptional 
occurrences; and to audio -visual services  (Article 12.3).  
4.88.  Nothing in Chapter 12 affects the rights and obligations of either Party under the WTO SCM 
Agreement, Article XVI of the GATT 1994 and Article XV of the GATS (Article 12.4).  
4.89.  Notification requirements applicable to subsidies are stipulated in Article 12.5  and are required  
every 2 years, with the first notification no later than 3 years from t he date of entry into force of the 
Agreement. If a Party makes publicly available on an official website the information specified in 
Article 12.5.1, the notification pursuant to Article 12.5.1 shall be deemed to have been made. If a 
Party notifies subsidi es pursuant to Article 25.2 of the SCM Agreement the Party shall be considered 
to have met the requirement of Article 12.5.1 with respect to such subsidies (Article 12.5.2).  
4.90.  Consultations may be held between the Parties if one Party considers that a subsi dy of the 
other Party has or could have a significant negative effect on its trade or investment interests under 
the Chapter (Article 12.6). The Parties shall enter into consultations with a view to resolving the 
matter, provided that the request includes an explanation of how the subsidy has or could have a 
significant negative effect on trade or investment between the Parties. If after consultations the 
requesting Party still considers that the subsidy has or could have a negative effect on its trade or 
investment interests, under Chapter  12, the requested Party shall accord sympathetic consideration 
to the concerns of the requesting Party.  
 
97 Further to Article 12.2 of the Agreement, specific subsidy means a subsidy which is determined mutatis 
mutandis  to be specific in accordance with Article 2 of the WTO SCM Agreement.  
98 For greater certain ty, education provided under the domestic educational system of each Party shall be 
considered a non -economic activity.  WT/REG441/1 /Rev.1  
 
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  4.91.  Article 12.7 prohibits certain kinds of subsidies  of a Party that have or could have a significant 
negative effect o n trade or investment between Parties.  Article XX of the GATT 1994 and Article XIV 
of the GATS are incorporated into and made part of the Agreement, mutatis mutandis  (Article 12.9) .  
4.92.  Paragraph 5 of Article 12.6 ( consultations) is not subject to dispute settlement under Chapter 
22 of the Agreement (Article 12.10).  
4.5.4   Safeguards  
4.93.  Article 9.4 of the Agreement sets out temporary safeguard measures and restrictive measures 
with regard to capital movements, payments or transfers that the Parties may adopt or maintain. In 
the case of trade in services, each Party may adopt restrictive measures in order to safeguard its 
external financial position or balance of payments. Those measures shall be in accordance with the 
conditions set out in Article XII of GATS.  
4.5.5   Other  
4.5.5.1   Investment  
4.94.  Section B of Chapter 8 of the Agreement covers investment liberali zation and applies to the 
establishment or operation of economic activities, including in non -services sectors, which goes 
beyond the GATS definition of mode 3 (Article 8. 6). 
4.95.  Articles 8.7 -13 contain provisions on market access; national treatment; MFN; senior 
management and boards of directors; prohibition of performance requirements; non -conforming 
measures and exceptions; and denial of benefits .99 
4.96.  Article 8.5 ( review) envisages that  if, after the date of entry into force of th e Agreement, a 
Party signs an international agreement with an investment chapter that contains provisions for 
investment protection or provides for investor -to-state dispute settlement proce dures, the other 
Party, after the date of entry into force of that agreement, may request that the Parties review 
Section s A and B  of Chapter 8 .100 As reported by the Parties, no review of Section s A or B of Chapter 
8 has not been carried out so far.  
4.6  Sector  specific provisions on trade in services  
4.6.1    Financial Services  
4.97.  Sub-section 5 of Section E of Chapter 8 and Annex 8 -A to the Agreement set out rules 
governing financial services , which are built upon the respective provisions under the EU -Japan EPA 
and furth er enhance, inter alia , provisions on new financial services, financial information and 
regulatory cooperation . Services supplied or activities performed in the exercise of governmental 
authority are excluded from the application of Sub -section 5 of Sectio n E of Chapter 8 , except for 
activities101 that a Party allows to be conducted by its financial service suppliers in competition with 
a public entity or a financial service supplier  (Article 8.58). Definitions used in Sub-section 5 of 
Chapter 8 are set out in Article 8.59 and  build upon  the definitions in paragraph 5 of the WTO Annex 
on Financial Services.  
4.98.  Under Article 8.60 each Party permits financial services suppliers of the other Party to offer 
any new financial service  that the Party would permit its own financial service suppliers, in like 
situations, to supply without adopting or m odifying a law and subject to each Party's reservations 
as set out in Annexes I and II to Annex 8 -B. A Party may determine the juridical form through which 
 
99 For further details, refer to respective sub -sections of Section 4 of this factual presentation.  
100 The footnote to  paragraph 3 of  Article 8.5 clarifies that for the UK, paragraph 3 of Article 8.5 does not 
cover subsequent reviews, amendments or liberali zation under the framework of any international agreement in 
force for the UK on, or signed by the UK prior to, the date of entry into force of this Agreement, or any 
international agreement between the UK and a third country concluded with the aim of transitioning an existing 
international agreement to which the EU was a party while the UK was a Member State of the EU.  
101 Paragraph 2 of Article 8.58 states that such activities include  (i) the activities forming part of a statutory 
system of social security or public retirement plans; and (ii) other activities conducted by a public entity for the 
account or with the guarantee or using the f inancial resources of a Party or its public entities.  WT/REG441/1 /Rev.1  
 
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  the new financial service may be supplied and may require authori zation for the supply of the servic e. 
If required, a decision to issue the authori zation shall be made within a reasonable period of time 
and may be refused only for prudential reasons.  
4.99.  The Parties shall ensure that they grant to each other's  established financial service suppliers 
access t o payment s and clearing systems, as well as to official funding and refinancing facilities 
available in the normal course of business on a national treatment basis (Article 8.61). If a Party 
requires financial service providers to have membership of or par ticipate in the operations of self -
regulatory organi zations, the Parties will ensure that those organi zations accord national treatment 
to the financial service providers of the other Party  (Article 8.62) .  
4.100.   With regards to financial information, the Partie s agree to not restrict a financial service 
supplier of the other Party from transferring information, including transfers of data into and out of 
the former Party's territory by electronic or other means, where such transfers are relevant for the 
conduct of the ordinary business of the financial service supplier  (Article 8.63) . Article 8.63 also 
cover s issues related  to using or locating  financial service computing facilities ; access to information 
and the right of a Party to protect personal data, personal privacy and the confidentiality of individual 
records and accounts.  
4.101.   Under Article 8.64 the Parties commit to promote regulatory transparency in financial 
services;  make publicly available the information necessary for financial service suppliers t o comply 
with the requirements and procedures for obtaining, maintaining, amending and renewing an 
authori zation for the supply of a financial service; timely notification of any requirements of 
additional information for processing of applications ; inform  the applicant of the reasons for rejection 
of the application; and ensure  publication or dissemination of rules of general application  adopted 
or maintained by self -regulatory organi zations .  
4.102.   Article 8.65 permits the Parties to take measures for prudentia l reasons. Article 8.66 
disciplines apply if a Party allows it s postal insurance entity to underwrite and supply direct insurance 
services to the general public. The services covered do not include the supply of insurance services 
relating to the collectio n, transport and delivery of letters or packages by a Party's postal insurance 
entity.  
4.103.    Regulatory cooperation in financial services is established in Article 8.67 in accordance with 
Annex 8 -A (Regulatory cooperation in financial services) . Further to the provisions agreed by the 
Parties, regulatory cooperation covers all areas of financial services, including emerging issues of 
mutual interest , and is  without prejudice to the distribution and exercise of competences of the 
regulatory or supervisory authori ties of the Parties ; and is based on due consideration of differences 
in market structures and business models that may exist between the Parties. Principles of regulatory 
cooperation and provisions on emerging issues are also covered in  Annex 8 -A to the A greement.  
4.104.   A Joint United Kingdom -Japan financial regulatory forum is established by the Parties on the 
date of entry into force of the Agreement with the aim to take stock of progress and undertake 
forward planning of regulatory cooperation, as well to dev elop and apply a framework for regulatory 
cooperation between the Parties. As reported by the Parties, o n June 9, 2022, the inaugural United 
Kingdom -Japan financial regulatory forum was held in London. At the conclusion of the event, both 
Parties issued  a Joint Statement on the nature and output of discussions.  
4.105.   The provisions of Annex 8 -A are not subject to dispute settlement under Chapter 22 of the 
Agreement  (para. 26 of Annex 8 -A). A process of technical mediation with respect to the principles 
of regulatory cooperation is envisaged in paragraphs 27 -30 of Annex 8 -A. 
4.6.2    Postal and courier services  
4.106.   Provisions on postal and courier services follow those in the EU -Japan EPA , except for 
technical modifications,  and are stipulated  in Sub -section 3 of Sect ion E ( regulatory framework) of 
Chapter 8 and  apply to measures by a Party affecting trade in postal and courier services  
(Article  8.36) .  WT/REG441/1 /Rev.1  
 
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  4.107.   Each arty has the right to define the kind of universal service obligation it wishes to 
maintain .102 That obligation i s not per se  regarded as anti -competitive, provided that it is 
administered in a transparent, non -discriminatory and competitively neutral manner and is not more 
burdensome than necessary for the kind of universal service defined by the Party, with regard to all 
suppliers subject to the obligation. Each Party shall ensure that a supplier of postal and courier 
services in its territory subject to a universal service obligation under its laws and regulations does 
not engage in certain kinds of anti -competitiv e activity, like cross -subsidi zation or unjustifiably 
differentiating among customers , as described in Article 8.37  on universal service obligations .  
4.108.   The Parties agree to enforce border procedures for international postal and courier services 
in accordance with related international agreements and the laws and regulations of each Party . It 
is without prejudice for each Party to not unduly accord less favourable treatment with respe ct to 
border procedures to international courier services103 than it accords to international postal services  
(Article 8.38) .  
4.109.   Under Article 8.39 each Party may require a licence for the supply of a postal or courier 
service and if it does so, it shall make  publicly available the licensing criteria and the period of time 
normally required to reach a decision concerning an application for a licence and the terms and 
conditions of the licence. In the event of a decision to reject a licence application the comp etent 
authority shall , upon request , inform the applicant of the reasons for the rejection. An appeal process 
shall be available to applicants whose licence application has been rejected.  
4.110.   Independence of the regulatory body for postal and courier services  is ensured by the 
provisions of Article 8.40.   
4.6.3   Telecommunications  
4.111.   The provisions on telecommunication services under  Sub-section 4 of Section E ( regulatory 
framework) of Chapter 8 have not significantly changed from the EU -Japan EPA and apply to 
measures by a Party affecting trade in telecommunications services, which consist of the conveyance 
of signals including, inter alia , transmission of video and audio signals (irrespective of  the types of 
protocols and technologies used) through public telecommunications transport networks. Measures 
affecting broadcasting services and services providing, or exercising editorial control over, content 
transmitted using telecommunications transpo rt networks and services are e xcluded fr om the 
application of Sub -section 2 (Article 8.41).  
4.112.   While recogni zing the value of competitive markets to deliver a wide choice in the supply of 
telecommunications services and to enhance consumer welfare, the Parties also recognise in Article 
8.43 that regulatory needs and approaches differ between  market s, and that a P arty may determine 
how to implement its obligations under Sub -Section 2 , including by engag ing in direct regulation , 
either in anticipation of an issue that it expects may arise , or to resolve an issue that has already 
risen in the market ; or, by relying on the role of market forces, particularly with respect to market 
segments that are competitive or that have low barriers to entr y. However,  a Party that refrains 
from regulation remains subject to obligations under the Sub-section  2. 
4.113.    Article 8.44 states  that each Party shall ensure that any service supplier of the other Party 
is accorded access to and use of public telecommunications transport networks and services on 
terms and conditions which are reasonable, non -discriminatory, and no less favourable than those 
which the supplier of those public telecommunications transport networks and services provides for 
its own like services under like circumstances.  Provisions on number portability, resale, enabling use 
of network facilities and interconnection, and  obligations relating to major suppliers are stipulated  
in Articles 8.45 -8.48.  
 
102 Article 8.36 of the Agreement clarifies that universal service means the permanent supply of a postal 
service of specified quality at all points in the territory of a Party at affordable prices for all users.  
103 It is clarified that for the purposes of Art icle 8.38: (a) international postal services means services that 
designated operators referred to in subparagraph 1.12 of Article 1 of the Universal Postal Convention supply in 
accordance with the Acts of the Universal Postal Union; and (b) international c ourier services means services 
consisting of the collection, sorting, transport and delivery of documents, printed matter, parcels and goods for 
foreign destinations, not regulated by the Acts of the Universal Postal Union.  WT/REG441/1 /Rev.1  
 
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  4.114.   The obligations in relation to the structure and functional independence of the Parties 
regulatory authorities are set out in Article 8.49. The provisions on  universal service obligation s, 
authorisation to provide telecommunications networks and services, allocation of and use of scarce 
resources, transparency, resolution of telecommunications disputes, relation to international 
organisations, confidentiality of information104 and international mobile roaming  are covered in 
Articles 8.50 -8.57.  
4.6.4   Maritime Transport105  
4.115.   Sub-section 6 of Section E ( regulatory framework) of Chapter 8 sets out the regulatory 
framework for the provision of international maritime transport services pursuant to Sections B to D 
of Chapter  8 (investment liberalisation; cross-border trade in services; entry and temporary stay of 
natural persons, respectively) , and applies to measures by a Party affecting trade in international 
maritime transport services  (Article 8.68).  
4.116.   Without prejudice to the non-conforming measures referred to in Articles 8.12 (in 
investment) and 8.18 (in cross -border trade in services), each Party shall respect the obligations  set 
out in Article 8.69 , which include, inter alia , the pr inciple of unrestricted access to international 
maritime markets and trades, granting access to ports and use of maritime auxiliary services by the 
ships flying the flag of the other Party, etc .  
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  Rules gover ning general transparency disciplines are contained in Chapter 17. Articles 17.1 
through 17.8 list requirements for transparent regulatory environment; publication; enquiries; 
administration of measures of general application; review and appeal; cooperatio n on the promotion 
of increased transparency; and relation to other Chapters.  
5.2.  In addition,  further to Article 17.9,  the Parties affirm their resolve to eliminate bribery and 
corruption in international trade and investment by adhering to the Convention on Combating Bribery 
of Foreign Public Officials in International Business Transactions, done at Paris on 17 December 
1997, and the United Nations Convention against Corruption, adopted at New York on 31 October 
2003.  
5.2  Current payments and capital movements  
5.3.  Chapter 9 of the Agreement concerns capital movements, payments and transfers and 
temporary safeguard measures. Under Article 9.1, any payments and transfers are to be made in 
freely convertible currency for transactions on the current account of the balanc e of payments which 
fall within the scope of th e Agreement. The Parties also agree to allow the free movement of capital 
for the purpose of liberalisation of investments and other transactions as provided for in Chapter 8 
of the Agreement (Article 9.2.1).  
5.4.  The Parties may adopt or maintain restrictive measures with regard to capital movements, 
payments or transfers  (a) in the event of serious balance of payments or external financial 
difficulties, or threat thereof, or (b) if, in exceptional circumstances, c apital movements, payments 
or transfers cause or threaten to cause serious macroeconomic difficulties related to monetary and 
exchange rate policies  (Article 9.4) . Any such measures  shall be consistent with the Articles of 
Agreement of the International Mo netary Fund ; not exceed those necessary to deal with the 
situations described in (a) and (b);  be temporary and be phased out progressively as the situation 
 
104 Article 8.56 clarifies that th e confidentiality of information shall be insured in accordance with 
domestic laws and regulations.  
105 Article 8.68 defines international maritime transport services as the transport of passengers or cargo 
by sea -going vessels between a port of a Party and a port of the other Party or a third country, and includes 
the direct contracting with suppliers of other transport services, with a view to covering door -to-door or 
multimodal transport operations under a single transport document, but does not include th e right to supply 
such other transport services.  WT/REG441/1 /Rev.1  
 
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  improves ; avoid unnecessary damage to the commercial, economic and financial interests of the 
other Party; and  be non -discriminatory compared to third countries in like situations.  
5.5.  Article 9.4  further  provides that in the case of trade in goods, each Party may adopt restrictive 
measures pursuant to Article 2.20 for balance -of-payments purposes. In the c ase of trade in 
services, each Party may adopt restrictive measures in order to safeguard its external financial 
position or balance -of-payments, in accordance with Article XII of GATS.  
5.6.  Any restrictions adopted pursuant to Article 9.4 shall be the subject  of prompt consultations in 
the Committee on Trade in Services, Investment Liberalization and Electronic Commerce established 
pursuant to Article 22.3, unless consultations are held in other fora.  
5.3  Exceptions  
5.3.1   General exceptions  
5.7.  For the purposes of Chapter  2 (trade in goods ), Article  XX of the GATT 1994 is incorporated 
into and made part of the Agreement, mutatis mutandis  (Article 2.21) . If a Party intends to take any 
measures in accordance with subparagraphs (i) and (j) of Article XX of the GATT 1994, the Party 
shall (a) provide the other Party with all relevant information; and (b) upon request, provide the 
other Party with a reasonable opportunity for consultation with respect to any matter related to such 
measure, with a view to seeking a mutually accept able solution.   
5.8.  For the purposes of Section B ( investment liberalization) and Article 8.86 ( commercial 
information and communication technology products that use cryptography)  of Chapter 8  (trade in 
services, investment liberalization and electronic commerce), Article XX of the GATT 1994 is 
incorporated and made part of the Agreement, mutatis mutandis  (Article 8.3). Article 8.3.2 also sets 
out general exceptions for trade in services or establishment that are similar to the general 
exceptions of Article XIV of the GATS. Measures inconsistent with national treatment on investment 
and services may be permitted provided that the difference in treatment is aimed at ensuring the 
equitable or effective imposition or c ollection of direct taxes in respect of economic activities, 
entrepreneurs, services or service suppliers of the other Party  (Article 8.3.2(d) ).  
5.9.  For the purposes of Chapter s 12 (subsidies)  and Chapter 13 (State -owned enterprises, 
enterprises granted speci al rights or privileges and designated monopolies) , Article XX of the GATT 
1994 and Article XIV of the GATS are incorporated into and made part of the Agreement, mutatis 
mutandis  (Article 12.9) . 
5.3.2   Security exceptions  
5.10.  Security exceptions are covered in Article 1.5 of the Agreement that  mirror the provisions of 
Article XXI of the GATT 1994, and applies, inter alia , to the supply of services . It is also clarified, 
that for the purposes of Chapter 10 (Government procurement), Article  III of the GPA applies;  and 
for the purposes of Chapter 14 ( intellectual property) , Article 14. 62 of the Agreement (incorporating 
Article 73 of the TRIPS Agreement) applies , mutatis mutandis . 
5.4  Accession and withdrawal  
5.11.  The Agreement does not contain any accession provisions. Termination is governed by 
Article  24.4 and takes place six months after the date of receipt by the other Party of the termination 
notification.  
5.5  Institutional framework  
5.12.  Article 23.1 establishes a Joint Committee comprising representatives of b oth Parties, which 
shall meet within one year of the date of entry into force of the Agreement. The meetings of the 
Joint Committee shall take place in the UK or Japan alternately, unless otherwise agreed. As reported 
by the Parties, the first meeting of t he Joint Committee of the UK -Japan CEPA was held in Tokyo on 
24 February 2022. Article 2 3.1.4 sets out the mandated functions of the Joint Committee  which are 
to review and monitor the implementation and operation of the Agreement and if necessary, make 
recommendations to the Parties, supervise the work of all specialised committees, working groups WT/REG441/1 /Rev.1  
 
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  and other bodies under the Agreement, seek to resolve problems that may arise under the 
Agreement or resolve disputes regarding the interpretation or application  of the Agreement and 
consider any other matter of interest under the Agreement. The  Joint Committee is also required to 
adopt its own rules of procedure as well as the rules of procedure of a panel, the code of conduct 
for arbitrators and the mediation pr ocedure at its first meeting.  As reported by the Parties, t he rules 
of procedure were adopted at the first meeting of the Joint Committee on 24 February 2022. The 
Parties have not yet adopted  the rules of procedure of a panel, the code of conduct for arbit rators 
and the mediation procedure.  
5.13.  Article 2 3.1.5 permits the Committee to establish or dissolve specialised committees, working 
groups or other bodies and allocate responsibilities to them, provide information on issues under the 
Agreement to the public,  recommend to the Parties any amendments to the Agreement or adopt 
decisions to amend the Agreement under Article 2 4.2.4, adopt interpretations of the Agreement and 
any other action in the exercise of its functions as may be agreed by the Parties. As repor ted by the 
Parties,  all specialised committees stipulated in Article 23.1 were established.  
5.14.  Article 2 3.3.1 establishes several specialised committees under the auspices of the 
Committee.106 The existence of a specialised committee does not prevent a Party from bringing any 
matter directly to the Joint Committee (Article 2 3.3.8). As reported by the Parties, t he first meeting s 
of the following Committees took place online:  the Committee on Tra de and Sustainable 
Development took place on 13 October 2021 ; the Committee on Trade in Services, Investment 
Liberalisation and Electronic Commerce on 1 November 2021 ; the Committee on Government 
Procurement on 25 November 2021 ; the Committee on Trade in G oods on 6 December 2021 ;f the 
Committee on Regulatory Cooperation on 2 February 2022 ; the Committee on Sanitary and 
Phytosanitary Measures on 27 April 2022 ; and  the UK -Japan Committee on Technical Barriers to 
Trade (TBT) on 29 June 2022.  
5.15.  Under the auspices  of the Joint Committee two working groups are also established ( Article 
23.4.2): on Cooperation in the Field of Agriculture, the responsibilities and functions of which are 
defined in Article 19.5; and on Trade and Women's Economic Empowerment, the respon sibilities of 
which are defined in Article 21.3.  
5.16.  Working Groups on Wine and on Motor Vehicles and Parts are established  in Article 23.4.1 
under the auspices of the Committee on Trade in Goods . The functions of the Groups are set out in 
Article 2.3 4 and Ar ticle 20 of Annex 2 -C. As reported by the Parties, t he first meeting of the Working 
Group on Trade and Women 's Economic Empowerment took place online on 21 October 2021. The 
second meeting is scheduled in January 2023. The first meeting of the Working Grou p on Wine was 
held on 1 January 202 1.The first meeting of the Working Group on Motor Vehicles and Parts was 
held on 24 June 2022 in Geneva and via videoconference.  
5.6  Dispute settlement  
5.17.  The rules governing dispute settlement are set out in Chapter 22 to the A greement containing 
provisions on the objective, scope and definitions (Section A); consultations and mediation (Section 
B); panel procedures (Section C); and general provisions (Section D). The rules in Chapter 22 closely 
follow the structure of the WTO d ispute settlement mechanism at the panel stage.  
5.18.  The Agreement contains a choice of forum provision  (Article 22.27) . Where  a dispute arises 
with regard to the alleged inconsistency of a particular measure with an obligation under the 
Agreement and a substantially equivalent obligation under any other international agreement, 
including the WTO Agreement, the complaining Party may select the for um in which to settle the 
dispute. Once a choice has been made, the complaining Party shall not initiate dispute settlement 
proceedings in another forum  in respect of the measure under challenge  unless the forum selected 
fails to make findings on the issue s in dispute for jurisdictional or procedural reasons. Under  the 
provisions of Article 2 2.27.4, nothing in the Agreement precludes a Party from implementing the 
suspension of concessions or other obligations authorized by the DSB. A Party shall not, howeve r, 
 
106 These are: the Committees on Trade in Goods; on Rules of Origin and Customs -Related matters; on 
Sanitary and Phytosanitary Measures; on Technical Barriers to Trade; on Trade in Services, Investment 
Liberal ization and Electronic Commerce; on Government Procurement; on Intellectual Property; on Trade and 
Sustainable Development; and on Regulatory Cooperation.  WT/REG441/1 /Rev.1  
 
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  invoke the WTO Agreement to preclude the other Party from suspending concessions or other 
obligations under the covered provisions.  
5.19.  Under  Section B of Chapter 22 prior to a request for consultations or mediation, either Party 
may request from the other  Party any relevant information with respect to a measure at issue 
(Article  22.4). Consultations are governed by Article 2 2.5, while  mediation, at any time, is permitted 
under Article 2 2.6. A mediation procedure is to be adopted at the first meeting of the  Joint Committee 
established pursuant to Article 2 3.1.4(f) . Mediation may continue in parallel to a panel procedure. 
As reported by the Parties, the y are currently working to ensure the adoption of mediation procedure, 
Rules of Procedure of a Panel and the  Code of Conduct for Arbitrators at the earliest opportunity.  
5.20.  Under Section C of Chapter 22 the Party that sought  consultations  pursuant to Article 22. 54, 
may, if consultations fail to resolve the dispute,  request the establishment of a panel (Article  22.7) . 
The Panel shall issue an interim report no later than 120 days after the date of its establishment , 
although a delay of up to 30 days is permitted  when this deadline cannot be met (Article 22.18.1). 
In cases of urgency,  it shall make every effort to issue the report no later than  60 days after the 
date of its establishment and in no circumstances later than 75 days  after the date  of its 
establishment (Article 22. 18.3). The final report shall be issued  to the Parties no later than 30 days 
after the  date of  issuance of the interim report  (although a delay of up to 30 days is permitted when 
this deadline cannot be met) , with the panel 's effort to issue no later than 15 days in urgent cases . 
The Parties shall  make the final report public ly available no later than  10 days after the date of its 
issuance  unless they decide, in order to protect  confidential  information , to publish only in parts or 
not to publish the report at all  (Article 22. 19). The complaining Party may request for the original 
Panel to conduct a compliance review  if there is disagreement between the Parties on the existence 
of measures taken to comply with the final report or their consistency with the covered provisions  
(Articl e 22.21); temporary remedies in case of non -compliance are provided for in Article 22.22 
including the suspension of concessions or other obligations until the inconsistency of the measure 
has been removed or until a mutually satisfactory compensation or a lternative arrangement has 
been agreed by the Parties . Further to Article 22.30, the panel proceedings shall be conducted 
pursuant to the Rules of Procedure of a Panel and the Code of Conduct for Arbitrators to be adopted 
by the Joint Committee at its firs t meeting pursuant to Article 2 3.1.4(f).  
5.21.  Annex 2 -C on Motor Vehicles and Parts provides in Article 13 for a consultation procedure in 
relation to amendment or introduction of new domestic technical regulation  or conformity 
assessment . In the event that th e Parties fail to agree a solution the complaining Party may have 
recourse to the dispute settlement procedures under Chapter  22 of the Agreement , if it deems that 
the technical regulation or conformity assessment could adversely affect trade between the P arties . 
Under Article 19 of Annex 2 -C, an accelerated timeline for Chapter 22 dispute settlement procedure 
is created, shortening  period for consultations, for the issuance of the interim report of the panel 
and for the issuance of the final report , and deeming the paragraph of Article 19(e) which states  the 
reasonable period of time for compliance  to be added  in Chapter 22 and providing that disputes in 
relation to the interpretation or application of the Annex are a matter of urgency.  
5.22.  Annex 8 -A (regulatory cooperation in financial services) provides in Articles 2 6-31 for a 
technical mediation process and exclude s application of the dispute settlement procedure under 
Chapter 22 of the Agreement.  
5.23.  Article 12. 6 (subsidies) provides for a consultation process in the event that a Party considers 
a subsidy has or could have a significant negative effect on its trade or investment interests.  If the 
consultations fail to resolve the matter , the Party to whom the consultati on request is made shall 
accord  sympathetic consideration to the concerns of the requesting Party  (Article 12.6.5) . Article 
12.10  provides that Article 12.6.5 is specifically exclude d from  the application of the dispute 
settlement process under Chapter 2 2.  
5.24.  Article 14. 60 (on intellectual property cooperation between the Parties) shall not be subject 
to dispute settlement under Chapter 2 2 (Article 14.63) . 
5.25.  In the event of  disagreement  under  Chapter 16  (trade and sustainable development) , dispute 
settlement provisions under  Chapter 2 2 shall not be applied (Article 16.17.1) and instead , the Parties 
shall use the  procedures in Article s 16.17 which  sets out a consultation process leading to 
consideration of the matter by the Committee on Trade and Sus tainable Development. In case that WT/REG441/1 /Rev.1  
 
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  the Parties do not reach a mutually satisfactory resolutio n, a Party may request to establish a panel 
of experts to examine the matter (Article 16.18).  
5.26.  The p rovisions of Chapter 11 (competition policy) and Chapter 21 ( trade and women's 
economic empowerment)  are not subject to dispute settlement under Chapter 2 2 of the Agreement 
(Article 11.10  and 21.4, respectively ).  
5.7  Relationship with other agreements concluded by the Parties   
5.27.  In addition to the relationship between the Agreement and the EU -Japan EPA, Article 1.9 
provides that the existing agreements between the UK and Japan are not superseded or terminated 
by the Agreement.   
5.28.  The Parties also agree on specific provisions in the event of  an inconsistency between the 
obligations under the Agreement and the Protocol  on Ireland/Northern Ireland to the Agreement on 
the Withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European 
Union and the European Atomic Energy Com munity, signed on 24 January 2020  (hereinafter referred 
to as "Protocol"). Article 1.9(5) establishes that a Party can take a particular measure to address 
the inconsistency, even if such measure is inconsistent with the obligations under the Agreement.  
The measure, however, shall not be applied in a manner that would constitute a means of arbitrary 
or unjustified discrimination against the other Party or a disguised restriction on trade. It shall also 
be notified to the other Party  and consultations, on re quest of either Party, shall be held to seek a 
mutually acceptable solution in relation to the effects of the measure on the Agreement . 
5.29.  Table 5.1 below shows the Parties' RTAs in force, notified and non -notified, other than the 
Agreement.  
Table 5.1 United Kingdom and Japan: participation in other RTAs (notified and non -
notified in force), as of 16 January  2023 
RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
UNITED KINGDOM  
United Kingdom – Iceland, 
Liechtenstein and Norway  01-Dec-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom – Mexico  01-Jun-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Serbia  20-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Albania  03-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Jordan  01-May-21 Goods  2021 GATT Art. XXIV  
United Kingdom - Ghana  05-Mar-21 Goods  2021 GATT Art. XXIV  
EU - United Kingdom  01-Jan-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Cameroon  01-Jan-21 Goods  2020 GATT Art. XXIV 
United Kingdom - Canada  01-Jan-21 
01-Apr-21 Goods  
Services  2020 
2021 GATT Art. XXIV  
GATS Art. V  
United Kingdom - CARIFORUM 
States  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Central America  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Chile 01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Colombia, 
Ecuador an d Peru  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Côte d'Ivoire  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Eastern and 
Southern Africa States  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Egypt  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Faroe Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Georgia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  WT/REG441/1 /Rev.1  
 
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  RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
United Kingdom - Israel  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Kenya  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Kosovob 01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Lebanon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Morocco  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - North Macedonia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Pacific States  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Samoa  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Solomon Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Palestine  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Republic of Korea  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Republic of 
Moldova  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - SACU and 
Mozambique  01-Jan-21 Goods  2021 GATT Art. XXIV  
United Kingdom – Singapore  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Switzerland - 
Liechtenstein  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Tunisia  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Türkiye  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Ukraine  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Viet Nam  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
JAPAN  
EU - Japan  01-Feb-19 Goods & 
Services  2019 GATT Art. XXIV & GATS Art. V  
Comprehensive and Progressive 
Agreement for Trans -Pacific 
Partnership (CPTPP)  30-Dec-18 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
Japan - Mongolia  07-Jun-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Japan - Australia  15-Jan-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Japan - Peru 01-Mar-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
India - Japan  01-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
Japan - Viet Nam  01-Oct-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Japan - Switzerland  01-Sep-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Japan - Philippines  11-Dec-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
ASEAN - Japan  01-Dec-08 
01-Jan-20 Goods  
Services  2009 
2022 GATT Art. XXIV  
GATS Art. V  
Brunei Darussalam - Japan  31-Jul-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
Japan - Indonesia  01-Jul-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
Japan - Thailand  01-Nov-07 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Chile - Japan  03-Sep-07 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Japan - Malaysia  13-Jul-06 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Japan - Mexico  01-Apr-05 Goods & 
Services  2005 GATT Art. XXIV & GATS Art. V  
Japan - Singapore  30-Nov-02 Goods & 
Services  2002 GATT Art. XXIV & GATS Art. V  WT/REG441/1 /Rev.1  
 
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  RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
Regional Comprehensive Economic 
Partnership (RCEP) Agreement  01-Jan-22 Goods & 
Services  Not notified  
United States - Japan  01-Jan-20 Goods  Not notified  
a Dates of the first entry into force/provisional application for at least one of the Parties. Where dates 
of provisional application have been provided by the Parties, further notifications to confirm the dates 
of entry into force are awaited.  
b Reference to Kosovo in this table shall b e understood to be in the context of the United Nations Security 
Council resolution 1244 (1999).  
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Dat abase on RTAs: http://rtais.wto.org .  
 
5.8  Government procurement  
5.30.  Provisions on g overnment procurement  follow those in the EU -Japan EPA  and are covered by 
Chapter 10 . The WTO's Agreement on Government Procurement (GPA , both Parties are party)  is 
incorporated into Chapter  10, mutatis mutandis . Article 10.3 contains additional rules applicable to 
procurement  under the  Parties' Annexes to Appendix I to the GPA and Part 2 of Annex 10 to the 
Agreement.  
5.31.  Article 10.4 requires that notices of intended or planned procurement under Article VII of the 
GPA shall be directly accessible by electronic means, free of charge, through a single point of access 
on the Internet. Article 10.5 lists the conditions for participation by suppliers established in the other 
Party in a tendering procedure , while  Article 10.6 specifies  qualifications for suppliers , including the 
evaluation procedure of the supplier established in the UK and submitting a tender in view of a 
procurement for construction work in Japan (Article 10.6.2) . Article 10.7 permits selective tendering, 
provided that the number of suppliers is sufficient to ensure competition without com promising the 
operational efficiency of the procurement system. Article s 10.8-13 deal with technical specifications, 
test reports, environmental conditions, treatment of tenders and awarding of contracts, domestic 
review procedures , and collection and repo rting of statistics.  
5.32.  A Party may modify or rectify its commitments under Part 2 of Annex 10  (Article 10.14) . If a 
Party modifies or rectifies its Annexes to Appendix I to the GPA, it shall automatically become 
effective for the purposes of this Agreement.  
5.33.  While under the Agreement, the Parties' thresholds are almost the same as those under the 
GPA the scope of the entities subject to commitments is expanded compared to the specific entities 
listed in each Party's commitments under  the GPA.  
5.34.  In comparison to the EU -Japan EPA, t here are no significant changes to UK market access 
commitments, except for technical ame ndments  such as, inter alia , the conversion from euro into 
sterling, where appropriate. The UK expands the  list of sub -central government entities listed in 
Annex 2 to Appendix I of the GPA . Paragraph 1 specifies the addition of procurement of goods and 
services by local administrative units107, while paragraph 2, refers to the inclusion of the bodies 
governed by public law that are hospitals or universities .108  
5.35.  The UK also includes commitments on procurement of railway -related goods and services  
(paragrap h 3).109  
 
107 Local administrative units are "as defined by the UK Statistics Authority in accordance with the St atistics 
and Registration Service Act 2007, with a population of between 200,000 and 499,999 inhabitants".  
108 Such bodies are described for the UK by category in the following indicative list: (1) Universities and 
colleges financed for the most part by othe r contracting authorities; (2) Research Councils; and (3) National 
Health Service Strategic Health Authorities.  
109 With a listing of the products subject to the commitment defined by reference to "CPV", Common 
Procurement Vocabulary of the United Kingdom, a s defined by Regulation (EC) No 2195/2002 of the European 
Parliament and of the Council of 5 November 2002 on the Common Procurement Vocabulary (CPV), last amended 
by Commission Regulation (EC) No 213/2008 of 28 November 2007.  WT/REG441/1 /Rev.1  
 
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  5.36.  For services, in paragraph 4 t he UK adds to the list of services sectors covered under the UK's 
Annex 5 to Appendix I to the GPA:  
i. for central government entities: Food serving services and Beverage serving services 
(CPC 642, 643); Telecommunicati ons related services (CPC 754); Photographic 
services (CPC 87501 to 87503, 87505, 87507, 87509); Packaging services (CPC 876); 
Other business services (CPC 87901, 87903, 87905 to 87907);  
ii. for sub -central government entities: Beverage serving services (CPC 6 43); General 
management consulting services (CPC 86501); Financial management consulting 
services (except business tax) (CPC 86502); Marketing management consulting 
services (CPC 86503); Human resources management consulting services (CPC 
86504); Productio n management consulting services (CPC 86505); Other 
management consulting services (CPC 86509);  
iii. for all covered entities: Real estate services on a fee or contract basis (CPC 8220).  
5.37.  Japan's commitm ents are set out in Section B of Part 2 of Annex 10  and are  substantially the 
same as under the EU -Japan EPA . Chapter 10 applies to procurement covered by Japan's GPA 
commitments , other than procurement set in paragraph 2 of Section B.  
5.38.  Japan has expanded the scope of covered entities  under the Agreement . In addition to 
procurement by sub -central entities listed in Annex 2 to Appendix I of the GPA, Japan includes (a) 
procurement by Kumamoto -shi and (b) procurement by local independent administrative agencies 
of goods and services, as s pecified in Japan's Annexes 4 to 6 to Appendix I of the GPA. In relation 
to (b), Japan also lists 89 entities such as hospitals and universities captured by the new commitment 
as of 1 February 2018 for reference purposes.  
5.39.  In addition to the entities under  its GPA commitments, Japan includes procurement related to 
the production, transport or distribution of electricity by sub -central entities listed in the GPA as well 
as by Kumamoto -shi.110 In paragraph 2, Japan also includes procurement by "Core Cities"111 in which 
suppliers of the UK112 will be accorded treatment no less favourable than that accorded to locally 
established suppliers including, if and where such exist, access to any review procedures available 
to locally established suppliers.113 The procureme nt of construction services (CPC 51) is excluded 
from commitments in paragraph 2 of Section B.  Japan also provides access to procurement related 
to the operational safety of transportation by certain railway companies.114  
5.40.  For services, Japan expands the se rvices listed in Annex 5 of its GPA commitments, with the 
addition of 21 service sectors for procurement by central government entities , 11 service sectors by 
sub-central government entities , and Kumamoto -shi. 
5.41.  Whilst the thresholds for tender remain unchan ged from those under the GPA, with respect 
to other entities  in its GPA commitments  Japan lowers the threshold to 100,000 SDR s for goods and 
services  except for a rchitectural, engineering and other technical services related to construction 
services which remain at  4,500,000 SDR s. In respect of Group B of Japan's Annex 3 to Appendix I 
of the GPA, Japan adds 6 entities whose procurement of goods and services is opened to the UK 
suppliers.  
 
110 A list of 28 covered sub -central government entities that as of 1 February 2018 is contained for 
reference purposes in sub -paragraph (c).  
111 As defined by paragraph 1 of Article 252 -22 of Japan's Local Autonomy Law (Law No. 67 of 1947).  
112 Supplier of the United Kingdom means, in case  of a juridical person, a juridical person of the UK. In 
case the supplier is a juridical person owned or controlled by a natural or juridical person of a third country or 
Japan, and that person would substantively benefit from this paragraph and undermine  the attainment of the 
objectives of Chapter 10, Japan may deny the benefits of this paragraph to that supplier. For the purpose of this 
paragraph, the definitions contained in subparagraphs (l) to (n) of Article 8.2 apply.  
113 Any obligations in Chapter 10  of the Agreement other than that described in the preceding sentence 
do not apply to Core Cities of Japan.  
114 Hokkaido Railway Company, Japan Freight Railway Company, Japan Railway Construction, Transport 
and Technology Agency, Shikoku Railway Company and Tokyo Metro Co., Ltd.  WT/REG441/1 /Rev.1  
 
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  5.42.  A Committee on Government Procurement , established under Article 23.3 , is responsible for 
the effective implementation and operation of Chapter  10. Its functions are set out in Article  10.16.2.  
5.9  Intellectual property rights115 
5.43.  Intellectual property is covered by Chapter 14 of the Agreement.   
5.44.  In Section A ( general provisions) of Chapter 14, the Parties reaffirm their commitment to 
comply with the obligations set out in the international agreements relating to intellectual property  
to which both Parties are party , including the TRIPS Agreement  (Article 14.3) . Provisio ns on national 
treatment (Article 14.4) and most -favoured -nation treatment (Article 14.5) largely mirror the 
respective TRIPS provisions  (Articles 3 and 4) . Procedural matters and transparency  are covered in 
Article 14.6, under which for the purposes of pr omoting transparency in the administration of its 
intellectual property system, each Party shall make all reasonable efforts to take appropriate 
available measures to publish information on applications for and grant of patents, registration of 
industrial designs and trademarks (and applications for trademarks), registration of new varieties of 
plants and registrations of geographical indications. As provided in Article 14.6, the Parties shall 
make all reasonable efforts to make available to the public info rmation on measures taken by the 
competent authorities to suspend the release of goods infringing intellectual property rights as a 
border measure set out in Article 14.5 7 of the Agreement .  
5.45.  Section B of Chapter 14 covers  standards concerning intellectual property. Sub-section 1 
(copyright and related rights ) contains provisions related to authors, performers, producers of 
phonograms, broadcasting organisations, and use of phonograms  (Articles 14. 8 to 14.12) . The term 
of protection of rights for an  author of literary or artistic works  is the life of the author plus 70 years 
after the author 's death , some exceptions  apply ; for performers, it is no less than 50 years after a 
performance ; for producers of phonograms, it is no l ess than 70 years after the phonogram was 
published, some exceptions apply; and in broadcasts, it is no less than 50 years after the first 
transmission of the broadcast  (Article 14.13).   
5.46.  Provisions are also made allowing limitations and exceptions  to the r ights set out in Articles 
14.8 to 14.12 only in certain special cases (Article 14. 14). Legal remedies shall be provided against 
the circumvention of effective technological measures  used by authors, performers or producers of 
phonograms  (Article 14. 18), and also in respect of rights management information where there have 
been other acts to induce, enable, facilitate or conceal an infringement of copyright and related 
rights (Article 14.19).  
5.47.  Sub-section 2 of Section B concerns trademarks. Each Party sha ll ensure that the owner of a 
registered trademark has the exclusive right to prevent all third parties not having the owner's 
consent from using identical or similar signs for goods or services which are identical or similar to 
those in respect of which t he trademark is registered where such use would result in a likelihood of 
confusion  (Article 14.20) . Article 14. 21 requires each Party to provide limited exceptions to the rights 
conferred by a trademark, such as fair use of descriptive terms , provided tha t exceptions  take 
account of the legitimate interest of the owner of the trademark and also third parties. In Article 
14.23 for the purpose of giving effect to the protection of well -known trademarks, as referred to in 
Article 6 bis of the Paris Convention and paragraphs 2 and 3 of Article 16 of the TRIPS Agreement , 
the Parties affirm the importance of the Joint Recommendation Concerning Provisions on the 
Protection of Well -Known Marks.  Other provisions of Sub -section 2 of Section B refer to preparatory 
acts deemed as infringement  (Article 14.22) , bad faith trademarks  (Article 14.24) , and registration 
and renewal process  (Article 14.25) .  
5.48.  Sub-section 3 of Section B concerns geographical indications (GIs). Article 14.26 applies  to 
the recognition and protection of GIs for wines, spirits and other alcoholic beverages as well as 
agricultural products which originate in the Parties.116 The GIs  listed in Annex 14 -B shall be protected 
 
115 Intellectual property means all categories of intellectual property that are covered by Articles 14.8 to 
14.44 of the Chapter or Sections 1 to 7 of Part II of the WTO Agreement on Trade -Related Aspects of Intellectual 
Property Rights (TRIPS Agreement) . The protection of intellectual property includes protection against unfair 
competition as referred to in Article 10bis of the Paris Conventio n (Article 14.1.3 ). 
116 Geographical indications are indications which identify a good as originating in the territory of a Party, 
or a region or locality in that Party's territory, where a given quality, reputation or other characteristic of the 
good is essentially attributable to its geographic origin.  (Article 14.26.1).  WT/REG441/1 /Rev.1  
 
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  by a Party under th e Agreement if they fall within  the types of goods that the other Party protects 
in accordance with its laws and regulations listed in Annex 14 -A. Each Party shall establish or 
maintain a system for the registration and protection of GIs in its territory  (Article 14.27) . The Parties 
must recogni se and protect the GIs set out in the other Party's list  in Annex 14 -B, following the 
completion of an opposition procedure and examination of the GIs concerned (Article 14.28) . 
Article  14.29 sets out the scope of protection of GIs listed in Annex  14-B to the Agreement. Article 
14.32 requires each Party to authori se its competent authorities to take appropriate measures to 
protect GIs ex officio  or on request of an interested Party  in accordance with its laws and regulations . 
Under Article 14. 33, a Party shall prevent the continuation of a  prior use of a GI of the other Party 
listed in Annex 14 -B after a maximum  transitional period of 5 or 7 years, depending on the goods. 
Article 14 .34 covers provisions related to the amendment of the lists of GIs. As reported by the 
Parties, a s of October 2022, there is no update regarding the lists of GIs . 
5.49.  Under Sub-section 4 of Section B the Parties provide for the protection of industrial designs117 
and allow for multiple design applications; the total term of protection is  no less than  25 years from 
the date on which  the application  was made (Article 14.35 - 14.36) . Sub-section 5 of Section B 
provides p rotection for the unregistered appearance of products and stipulates that the protection 
shall amount to at least three years and that Parties shall provide legal means to prevent the use of 
the unregistered appearance of a product if the use results from copying it ( Article 14.37).   
5.50.  Sub-section 6  of Section B sets out provisions related to  patents . As outlined by Article 14.38, 
each Party shall ensure that a patent confers on its owner exclusive rights and each Party may 
provide limited exceptions to the exclusive rights co nferred by a patent (except where exceptions 
unreasonably conflict with a normal exploitation of the patent or unreasonably prejudice the 
legitimate interests of that p atent owner). The Parties shall ensure consistency with the Doha 
Declaration on the TRIP S Agreement and Public Health (Article 14.39). With regard to patent  
protection for pharmaceutical and agricultural chemical products , each Party shall provide for a 
compensatory term of protection of five years to compensate the patent owner for the period during  
which the patented invention cannot be worked due to  the marketing approval process  
(Article  14.40) .  
5.51.  In Sub-section 7 of Section B , the Parties commit to providing protection of trade secrets 
according to Article 39 .2 of the TRIPS Agreement  (Article 14.41) . On undisclosed test or other data , 
Article 14.42 specifies the protection and treatment of test data in the marketing approval procedure.  
5.52.   In Sub -section 8 of Section B, Article 14.43 outlines that the p rotection fo r new varieties of 
plants  is to be provided under  the 1991 UPOV Convention .118 Under Sub -section 9 of Section B, 
Article  14.44 ensures that each Party shall provide for effective protection against unfair competition 
in accordance with the Paris Convention.   
5.53.  Section C of Chapter 14 concerns enforcement. Sub-section 1 of Section C on general 
provisions  requires that in addition to their obligations under the TRIPS Agreement, in particular Part 
III thereof, the Parties shall provide complementary measures, procedures and remedies necessary 
to ensure the enforcement of intellectual property rights.  
5.54.  Sub-section 2 o f Section C covers e nforcement via civil remedies. The Parties shall provide  
that their judicial authorities may, on request of an applicant, issue an interlocutory injunction , for 
the seizure or delivery of goods,  and to prevent the imminent or a continua tion of the alleged 
infringement of an intellectual property right  (Article 14.49) . Other provisions of sub -section 2 
provide for measures for preserving evidence, right to information, corrective measures, injunctions , 
damages , costs , presumption of autho rship or ownership, and access to justice. Enforcement of 
protection against  misappropriation of trade secrets  through civil procedures and remedies  is 
provided for by Sub -section 3 of Section C . Article 14.57 in Sub -section 4 of Section C provides that 
the Parties shall a dopt or  maintain procedures  under which a right holder may submit applications 
requesting its customs authority to suspend the release o r detain goods at the border suspected of 
infringing trademarks, copyright and related rights, g eographical indications, patents, utility models, 
industrial designs, and plant  variety  rights  in its territory . The customs authorities of each Party  shall 
also have the authority to act on its own initiative to suspend the release of, or detain, suspect goods 
 
117 For the purposes of Sub -Section  4 of Section B o f Chapter 14 , for the UK, industrial designs refer to 
registered designs.  
118 The International Union for the Protection of New Varieties of Plants.  WT/REG441/1 /Rev.1  
 
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  in its territory. Criminal procedures and penalties are provided for by Sub-section 5 of the same 
section , as to be applied at least in cases of wilful trademark counterfeiting or copyright or related 
rights piracy on a commercial scale .119 Sub-sectio n 6 covers provisions with respect of the 
enforcement in the digital environment, emphasi zing that the Parties shall ensure that civil (Sub -
Section 2  of Section C ) and criminal (Sub -Section 5  of Section C ) enforcement procedures are 
available under its law  so as to permit effective action against an act of infringement of intellectual 
property rights in the digital environment, including expeditious remedies to prevent infringement 
and remedies which constitute a deterrent to further infringements.  
5.55.  Section  D of Chapter 14 concerns cooperation and institutional arrangements. Article 14. 60 
on cooperation, provides that the Parties shall cooperate on the protection of intellectual property, 
including by exchange of information on relations of a Party with third countries on matters 
concerning intellectual property. Cooperation may include ex change of information, sharing of 
experiences and skills and any other form of cooperation or activities as may be agreed between the 
Parties.  
5.56.  A Committee on Intellectual Property is established by Article 2 3.3 and is responsible for the 
effective impleme ntation and operation of Chapter  14 (Article 14.61) . Its functions are set out in 
Article 14 .61.2.  
5.57.  Article 73 (Security Exceptions) of the TRIPS Agreement is incorporated into and made part 
of the Agreement, mutatis mutandis  (Article 14.6.2) . 
5.58.  The p rovisio ns of Article 14.60 (Cooperation)  are not subject to dispute settlement under 
Chapter 2 2 of the Agreement (Article 1 4.63).  
5.10  Competition  
5.59.  Competition policy is covered by Chapter 11. Article 11.2 provides that each Party shall, in 
accordance with its laws an d regulations, take measures it considers appropriate against 
anticompetitive practices, in order to achieve the objectives of the Agreement. In Article  11.3 the 
Parties agree to maintain their competition law s to address specific anti -competitive behaviou r and 
practices. Each Party shall apply their competition law to all enterprises, private and public, engaged 
in economic activities. A Party may provide exemptions under its competition law provided the 
exemptions are transparent and are based on public p olicy grounds or public interest grounds.  
5.60.  Obligations concerning operational independence, non -discrimination, procedural fairness, 
consumer protection, transparency and enforcement cooperation are set out in Articles 11.4 -11.9.  
5.61.  The p rovisions of Chapter  11 are not subject to dispute settlement under Chapter 2 2 of the 
Agreement (Article 11.10).  
5.62.  Chapter 13, which covers certain State -owned enterprises (SOEs) engaged in commercial 
activities, requires them to act in accordance with commercial consideration s except to fulfil any 
terms of a public service mandate, and to provide non -discriminatory treatment in its purchase or 
sale of a good or service  (Article 13.5 ). The Parties shall also ensure that any regulatory body is 
independent from and not accountable to any of the enterprises regulated by it and acts impartially 
in like circumstances with respect to all enterprises it regulates including SOEs, enterprises gr anted 
special rights or privileges and designated monopolies  (Article 13.6) . The Parties' laws and 
regulations shall be applied to such enterprises in a consistent and non -discriminatory manner  
(Article 13.6) . 
 
119 It is further clarified in the footnote that for the purposes of Sub -Section 5, acts carried out on a 
comme rcial scale include at least those carried out as commercial activities for commercial advantage or 
financial gain.  WT/REG441/1 /Rev.1  
 
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  5.11  Environment  and labour  
5.63.  Trade and sustainable development , covered in Chapter 16 of the Agreement , aims  to 
strengthen the trade relations and cooperation between the Parties in ways that promote sustainable 
development, and not to harmonise environment al or labour standards of the Parties  (Article 16.1) . 
5.64.  While the Parties recognise their sovereign right to establish their own levels of domestic 
environmental and labour protection and priorities, they also recognise that it is inappropriate to 
encourage trade or investment by relaxing  or lowering the level of  protection provided for  in their 
respective environmental or labour laws and regulations, or to use their respective environmental 
or labour laws or regulations  in a manner which would constitute a means of arbitrary or unjustifiable 
discrimination against the other Party, or a disguised restriction on international trade (Article 16.2).  
5.65.  Reaffirm ing their obligations deriving from  the International Labour Organisation (ILO) 
membership and commitments under the multilateral environmental a greements to which they are 
party, the Parties shall respect, promote and realise in their laws, regulations and practices the 
internationally recognised principles concerning the fundamental rights at work , and commit to work 
together to take actions to address climate change towards achieving the ultimate objective of the 
UNFCCC120 and the purpose of the Paris Agreement. It is also recognised  that labour standards 
should not be used for protectionist trade purposes , and that measures to impleme nt the multilateral 
environmental agreements are not to be applied in a manner that would constitute a means of 
arbitrary or unjustifiable discrimination against the other Party or a disguised restriction on trade  
(Articles 16.3 -16.4).  
5.66.  The importance  of en hancing the contribution of trade and investment to the goal of 
sustainable development in its economic, social and environmental dimensions is recognized by the 
Parties via, inter alia , facilitating and promoting trade and investment in environmental good s and 
services, as well as those of particular relevance to climate change mitigation, encouraging corporate 
social responsibility (Article 16.5).  
5.67.  In Articles 16.6 to 16.8 t he importance and the role of trade and investment are recognized 
in ensuring the conservation and sustainable (a) use of biological diversity in accordance with 
relevant international agreements to which they are party; (b) management of forests; (c) use and 
management of fisheries resources, safeguarding marine ecosystems, and promoti ng responsible 
and sustainable aquaculture. Other provisions of Chapter 16 concern issue s related to scientific 
information, transparency, review of sustainability impacts, and cooperation (Articles 16.9 -12). 
5.68.  A Committee on Trade and Sustainable Developmen t is established by Article 23.3 of the 
Agreement  and responsible for the effective implementation of the Chapter 16 (Article 16.13). Its 
functions are set out in Article 16.13. As reported by the Parties, th e first meeting of the Committee 
on Trade and Su stainable Development took place on 13 October 2021 via videoconference. The 
second meeting is scheduled for December 2022.  
5.69.  Chapter 16 also provides for the designation of contact points to facilitate communications 
between the Parties on any matter relati ng to th is Chapter  (Article 16.14)  As reported by the Parties, 
upon entry into force of the Agreement, the Parties designated contact points and exchanged contact 
details.  
5.70.  Other provisions relate to engagement with domestic advisory groups and a joint dialogue 
with civil society (Articles  16.15 -16). This is followed by provisions on government consultations and 
panel of experts121 in the event of any disagreement between Parties (Article s 16.17 -18). 
5.12  Electronic commerce  
5.71.  Electronic commerce is covere d in Section F of Chapter 8 ( trade in services, investment 
liberalization an d electronic commerce) of the Agreement, wh ose objective is to contribute to 
creating an environment of trust and confidence in the use of electronic commerce and to promote 
 
120 United Nations Framework Convention on Climate Change, done at New York on 9 May 1992.  
121 For further description of the dispute settlement  provisions applicable to Chapter 16, please refer to 
Section 5.6 of this factual presentation.  WT/REG441/1 /Rev.1  
 
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  electr onic commerce between the Parties (Article 8.70). Section F applies to measures by a Party 
affecting trade by electronic means; gambling and betting services, broadcasting services, audio -
visual services, services of notaries or equivalent professions, and  legal representation services are 
excluded from the coverage .  
5.72.  In comparison with the  current WTO moratorium on imposing customs duties on electronic 
transmissions, t he Parties  agree to not impose customs duties on electronic transmissions,  including  
content transmitted electronically (Article 8.72).   
5.73.  Under Article 8.73 the transfer of, or access to,  the source code of software owned by a person 
of the other Party, shall not be required as a condition for the import, distribution, sale or use of 
that softw are in its territory. However, a  regulatory body or judicial authority of a Party may request 
the source code (a) to preserve and make it available for an investigation, inspection, examination, 
enforcement action or judicial proceeding, subject to safegua rds against unauthorised disclosure; or 
(b) to transfer or provide access to it for the purpose of imposing or enforcing a remedy granted in 
accordance with that Party's law. The voluntary transfer of, or granting of access to, the source 
code, or an algor ithm expressed in that source code (such as in the context of a freely negotiated 
contract or government procurement) and services supplied,  or activities performed in the exercise 
of governmental authority are excluded from the application of Article 8.73 . 
5.74.  The Parties agree to ensure all their measures of general application affecting electronic 
commerce , including measures related to the collection of information, are administered in a 
reasonable, objective and impartial manner (Article 8.74).  
5.75.  Section F of Chapter 8  also includes provisions on the principle of no prior authori zation; 
conclusion of contracts by electronic means ; electronic authentication and electronic signature ; 
principles on access to and use of the Internet for electronic comm erce; consumer protection ; 
personal information protection; unsolicited commercial electronic messages; and open government 
data ( Articles 8.75 -82).  
5.76.  The Parties agree to maintain a dialogue on regulatory matters relating to electronic 
commerce including , inter alia , consumer protection,  personal information protection,  cybersecurity, 
electronic trust services , treatment of digital products, emerging technology, including artificial 
intelligence and the Internet of Things, intellectual property and electron ic government  
(Article  8.83) .  
5.77.  With the exception of adopting and maintaining measures that are necessary to achieve a 
legitimate public policy objective, the Parties agree not to prohibit or restrict the cross -border 
transfer of information by electronic means, including personal information (Article 8.84); and not 
to require a covered person to use or locate computing facilities in that Party's territory as a condition 
for conducting business in that territory  (Article 8.85) . Provisions on cross -border tr ansfer of 
information by electronic means and location of computer facilities are not applied to g overnment 
procurement and to information held or processed by or on behalf of a Party, including measures 
related to its collection  (Articles 8.84.3 -85.3) . The Part ies also agree on specific provisions related 
to commercial information and communication technology products that use cryptography 
(Article  8.86).  
5.13  Small and medium -sized enterprises  
5.78.  Provisions related to small and medium -sized enterprises (SMEs) are covered in Chapter 20 
of the Agreement. The Parties agreed to undertake and strengthen cooperation activities to (a) 
identify ways to assist  their SMEs to take advantage of the commercial opportunities under the 
Agreement; and ( b) promote and facilitate trade and investment opportunities for their SMEs. 
Cooperation activities include, inter alia , promoting cooperation between their relevant entities 
including non -governmental organisations with a view to assisting SMEs; developin g and promoting 
seminars, workshops or other activities to inform SMEs of the benefits available to them under the 
Agreement; exchanging and discussing their experiences and best practices in supporting and 
assisting SMEs that are exporters  (Article 20.2) . 
5.79.  The Parties agree to share information through publicly accessible websites including on the 
text of the Agreemen t, its Annexes, a summary of the Agreement , and information designed for WT/REG441/1 /Rev.1  
 
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  SMEs that contains provisions and any additional information that a P arty considers to be relevant 
and useful to SMEs . They also agree to provide other relevant information through links on the 
website including on (a) customs legislation and procedures, (b) laws and regulations concerning 
intellectual property rights, (c) technical regulations and conformity assessment procedures, (d) 
sanitary and phytosanitary measures relevant for importation and exportation, (e) publication of 
notices for government procurement, (f) business registration procedures, and (g) import taxes 
collected. The website shall also link to a database that is electronically searchable by tariff 
nomenclature code  and be free of change . (Article 20.3).  
5.80.  Upon entry into force of the Agreement the  Parties  designated and exchanged contact points 
for governm ent-to-government cooperation to ensure that SMEs benefit from all provisions of the 
Agreement  (Article 20.4) .  
5.81.  The provisions  of Chapter 20 are not subject to dispute settlement under  Chapter 2 2 of the 
Agreement . 
5.14  Other  
5.14.1   Corporate Governance  
5.82.  In Chapter 15 the Parties acknowledge the importance of an effective corporate governance 
framework to achieve economic growth through well -functioning markets and sound financial 
systems based on transparency, efficiency, trust and integrity.  
5.83.  The Parties ag ree on g eneral principles, referring to the importance of the role of the corporate 
governance framework in providing timely and accurate disclosure on all material matters regarding 
publicly listed companies within their respective jurisdictions, includin g the financial situation, 
performance, ownership and governance of those companies , as well as providing appropriate 
accountability of the management and the board towards the shareholders, responsible board 
decision -making based on an independent and obj ective standpoint, and equal treatment of 
shareholders of the same class  (Article 15.3) . Other provisions of Chapter 15 include the rights of 
shareholders and ownership functions, roles of the board, and takeovers (Articles  15.4-6). 
5.84.  The p rovisions of Chapt er 15 are not subject to dispute settlement under Chapter 2 2 of the 
Agreement (Article 1 5.7).  
5.14.1.1   Good regulatory practices and regulatory cooperation  
5.85.  Good regulatory practices and regulatory cooperation are covered in Chapter 18 of the 
Agreement . In Section A, the Parties aim to promote cooperation between them to enhanc e bilateral 
trade and investment (Article 18.1). Nevertheless, n othing shall affect the right of a Party to define 
or regulate its own levels of protection in the specified areas (i.e. public health; human, animal and 
plant life and health; occupational health and safety; labour conditions; the environment (including 
climate change); consumer s; social protection ; social security, etc) (Article 18.1.2). The Parties also 
agree that regulatory mea sures shall not constitute a disguised barrier to trade (Article 18.1.4).  
5.86.  In sub -section 2 of Section A, the Parties agree  to make publicly available descriptions of the 
processes and mechanisms used by the regulatory authority to prepare, evaluate and rev iew its 
regulatory measures; make publicly available at least once a year a list of its planned major 
regulatory measures together with a brief description of their scope and objectives; provide for 
public consultation when preparing major regulatory measu res; and endeavour to systematically 
carry out an impact assessment of major regulatory measures under preparation.122 
5.87.  Sub-section 3 of Section A concerns regulatory cooperation and includes provisions on 
regulatory cooperation activities and good practices  to promote regulatory compatibility.  
5.88.  Sub-section 4 of Section A sets out the functions of the Committee on Regulatory Cooperation 
(established pursuant to Article 23.3). As reported by the Parties, t he first meeting of the Committee 
 
122 The regulatory authority shall also maintain processes or mechanisms to promote periodic 
retrospective evaluations of regulatory measures in force.  WT/REG441/1 /Rev.1  
 
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  on Regulatory Cooperation was held in February 2022 via vide oconference . Parties have agreed to 
establish contact points for exchange of information (Article 18.15 -16). 
5.89.  In Section B ( animal welfare) to Chapter 18 the Parties agree to cooperate for their mutual 
benefit on matters of animal welfare with a focus on fa rmed animals with a view to improving mutual 
understanding of their respective laws and regulations (Article 18.17).  
5.90.  The provisions  which are stipulated in Section A  on good regulatory practices and regulatory 
cooperation  do not apply to animal welfare and  to regulatory cooperation in financial services (Article 
18.18).  
5.91.  The provisions of Chapter 18 are not subject to dispute settlement under Chapter 2 2 of the 
Agree ment (Article 18.19).  
5.14.2   Trade and Women's Economic Empowerment  
5.92.  In Chapter 21 the Parties agree  to consider cooperation  aimed at enhancing the ability of 
women, including workers and business owners, to fully access and benefit from the opportunities 
created by the Agreement. Such activities may include providing advice or training, and exchanging 
information and experience  on, inter alia : programmes aimed at improving the access of women to 
markets, technology and financing; development of women's leadership and business networks; 
identification of best practices related to workplace flexibility; an d activities related to the Joint 
Declaration on Trade and Women's Economic Empowerment at the WTO Ministerial Conference in 
Buenos Aires in December 2017.  
5.93.  A Working Group on Trade and Women's Economic Empowerment is established by Article 
21.3 of the Agre ement  which is  responsible for furthering  the shared objectives of enhancing the 
ability of women to fully access and benefit from the opportunities created by trade, for implementing 
cooperation activities, and for providing an opportunity for monitoring and review as may be agreed 
by the Parties. As reported by the Parties, t he W orking Group on Trade and Women 's Economic 
Empowerment met for the first time on 21 October 2021. The next meeting is planned for January 
2023. 
5.94.  The provisions of Chapter 21 are not subject to dispute settlement under Chapter  22 of the 
Agreement (Article 21.4).  WT/REG441/1 /Rev.1  
 
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  ANNEX 1  
1. Table A1.1 shows tariff liberalization by the UK in relation to imports from Japan (by total, 
agricultural and industrial products). In 20 21 the UK's average applied overall MFN rate was 3.8% 
(8.9% for agricultural products and 2.5 % for industrial products). 47% of the  UK's tariff was duty -
free on an MFN basis ( 18.8% for agricultural products and 57.1 % for industri al products).  
2. Under the Agreement in 2021, the UK's preferential tariff for imports from Japan was 0.2% 
overall and 0.4% and 0.2% respectively for agricultural and industrial products. As a result,  Japan's 
exporters enjoyed a  relative  margin of preference  of 94.7% overall vis-à-vis the prevailing MFN tariff  
and 95.5% for agricultural products and 92% for industrial products. The share of duty -free lines 
applicable to imports from Japan in 2021 was 9 6.6% overall (94.9% for agricultural products and 
97.2% for industrial products) , which will further increase to reach 9 9.4% in 20 34 (97.7% for 
agricultural products and 100% for industrial products).  
Table A1. 1 United Kingdom : Indicators of MFN tariff rates and preferential rates for 
imports from Japan  
Origin o f 
goods  Year  ALL PRODUCTS  HS Chapters 01 -24 HS Chapters 25 -97 
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 3.8 7.8 47.0 8.9 12.0 18.8 2.5 5.8 57.1 
Japan  2021 
(JAN)  0.2 7.6 96.6 0.4 10.9 94.9 0.2 6.0 97.2 
 2021 
(FEB)  0.2 6.6 96.6 0.4 10.1 94.9 0.1 5.0 97.2 
 2022 0.2 6.9 97.2 0.4 9.2 94.9 0.1 5.3 98.0 
 2023 0.1 5.8 97.2 0.3 8.4 94.9 0.1 4.2 98.0 
 2024 0.1 5.7 97.6 0.3 7.5 94.9 0.1 4.0 98.5 
 2025 0.1 4.6 97.6 0.3 6.7 94.9 0.041  2.8 98.5 
 2026 0.1 6.4 98.5 0.2 7.5 95.7 0.022  4.3 99.5 
 2027 0.1 5.6 98.5 0.2 6.8 95.7 0.016  3.2 99.5 
 2028 0.1 4.7 98.5 0.2 6.0 95.7 0.010  2.0 99.5 
 2029 0.04 4.6 98.7 0.2 5.3 95.7 0.004  1.8 99.8 
 2030 0.04 3.9 98.7 0.1 4.6 95.7 0.002  0.9 99.8 
 2031 0.03 3.9 98.9 0.1 3.9 95.7 0.0 0.0 100.0  
 2032 0.03 3.2 98.9 0.1 3.2 95.7 0.0 0.0 100.0  
 2033 0.02 2.5 98.9 0.1 2.5 95.7 0.0 0.0 100.0  
 2034  0.01 5.4 99.4 0.1 5.4 97.7 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of averages, 
specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rat e for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff rates 
are averaged to the 8-digit level.  
 Based on the HS 2017 n omenclature.  
Source:  WTO estimates based on data provided by the UK.  
3. Table A1.2 sets out additional market access opportunities resulting from entry into force of 
the Agreement for Japan's top 25 global exports, which represented 32.1% of its global exports in 
2018-2020, corresponding to 81 lines in the UK's tariff at the eight -digit level (using the HS  2017) .  
4. In 20 21, 51 of those lines had duty -free access on an MFN basis  to the UK's market . Under  
the Agreement, a further 18 dutiable items were duty-free for Japanese exporters. The remaining 
lines w ill become duty -free in 2026.  
5. At the end of the implementation period, none of the lines in the UK tariff covering Japan's 
top 25 global exports will be dutiable.  WT/REG441/1 /Rev.1  
 
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  Table A1. 2 Unite Kingdom: Market access opportunities under the agreement for Japan's 
top 2 5 exports to the world   
Japan's top export products in 2018 -20 Access Conditions to UK's markets  
HS number and description  Share in 
global 
exports 
(%) MFN 2021  No. of 
duty-free 
lines 
under the 
agree -
ment  
Remain Dutiable  
Average 
Tariff 
(%) No. of 
duty-
free 
lines  No. of 
duti-
able 
lines  
2021  
(Jan)  
2026  
870323  Motor cars and other motor vehicles  6.6 10.0  3  3  
870324  Motor cars and other motor vehicles  2.6 10.0  2  2  
870840  Gear boxes and parts thereof  2.4 3.0  4 4   
870340  Motor cars and other motor vehicles  2.2 10.0  2  2  
848620  Machines and apparatus for the 
manufacture of semiconductor devices  1.7 0.0 1     
854232  Electronic integrated circuits as 
memories  1.7 0.0 10     
854239  Electronic integrated circuits  1.6 0.0 3     
271019  Medium oils and preparations  1.1 1.2 12 13 13   
844399  Parts and accessories of printers, 
copying machines and facsimile 
machines  1.1 0.0 2     
842952  Self-propelled mechanical shovels, 
excavators and shovel loaders  1.0 0.0 2     
890190  Vessels  1.0 0.0 2     
710812  Gold  0.8 0.0 1     
848690  Parts and accessories for machines and 
apparatus of a kind used solely or 
principally for the manufacture of 
semiconductor boules or wafers, 
semiconductor devices, electronic 
integrated circuits or flat panel displays  0.8 0.0 1     
847989  Machines and mechanical appliances  0.8 0.0 4     
870322  Motor cars and other motor vehicles  0.7 10.0  2  2  
890120  Tankers  0.7 0.0 2     
840991  Parts suitable for use solely or 
principally with spark -ignition internal 
combustion piston engine  0.6 2.0  1 1   
853690  Electrical apparatus for switching 
electrical circuits, or for making 
connections to or in electrical circuits  0.6 0.0 4     
853224  Fixed electrical capacitors, ceramic 
dielectric, multilayer  0.6 0.0 1     
381800  Chemical elements and compounds 
doped for use in electronics  0.6 0.0 2     
330499  Beauty or make -up preparations and 
preparations for the care of the skin  0.6 0.0 1     
848630  Machines and apparatus for the 
manufacture of flat panel displays  0.6 0.0 1     
300490  Medicaments  0.6 0.0 1     
880330  Parts of aeroplanes or helicopters  0.5 0.0 1     
870422  Motor vehicles for the transport of 
goods  0.5 7.3  3  3  
Total of above  32.1 2.1 51 30 18 12 - 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of averages, 
specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rat e for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff rates 
are averaged to the 8 -digit level.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provi ded by the UK.  WT/REG441/1 /Rev.1  
 
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  6. Table A1.3 shows tariff liberalization by Japan in relation to imports from the UK (by total, 
agricultural and industry products). In 20 21 Japan's average applied MFN rate was 4.8% overall 
(10.7% for agricultural products and 3% on industria l products ). 40. 5% of Japan's tariff was duty 
free on an MFN basis ; 17.6% for agricultural products and 47.9% for industrial products.  
7. Under the Agreement, in 2021, the overall preferential tariff for imports from the UK was 1.5% 
overall and respectively 5.2% and 0.3% for agricultural and industrial products. As a result , UK 
exporters enjoyed a relative margin of preference of 68.8% overall  vis-à-vis the prevailing MFN 
tariff; 48.6% for agricultural products  and 90% for industrial products.  The share of duty -free lines 
applicable to imports from the UK in 2021 under the Agreement was overall 85.4% (53.8% for 
agricultural products and 95.7% for industrial products) , which will further increase to reach 96.3% 
in 2033 ( 84.8% for agricultural produ cts and 100% for industrial products).  
Table A1.3 Japan: Indicators of MFN tariff rates and preferential rates for imports from 
the United Kingdom  
Origin 
of 
goods  Year  ALL PRODUCTS  HS chapters 1 -24 HS Chapters 25 -97 
Average applied 
tariff  Share 
of duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of duty -
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 4.8 8.2 40.5 10.7 13.3 17.6 3.0 5.8 47.9 
UK 2021 1.5 11.4 85.4 5.2 12.6 53.8 0.3 8.1 95.7 
2022 1.1 11.0 88.1 4.0 13.2 64.3 0.2 6.0 95.8 
2023 1.1 11.0 88.3 4.0 13.3 65.1 0.2 6.0 95.8 
2024 1.0 10.0 88.3 3.7 12.3 65.1 0.2 5.0 95.8 
2025 0.9 9.8 89.1 3.4 12.0 66.8 0.2 4.6 96.4 
2026 0.8 9.3 89.6 3.1 11.7 68.4 0.1 3.6 96.5 
2027 0.7 8.4 89.7 2.9 10.9 68.7 0.1 2.4 96.5 
2028 0.6 17.6 95.1 2.6 19.5 82.1 0.0 6.5 99.3 
2029 0.6 17.2 95.1 2.5 19.2 82.1 0.0 5.2 99.3 
2030 0.6 17.0 95.2 2.5 19.2 82.3 0.0 3.9 99.3 
2031 0.6 16.7 95.2 2.4 19.2 82.5 0.0 2.6 99.3 
2032 0.6 16.2 95.2 2.4 18.8 82.5 0.0 1.3 99.3 
2033  0.6 22.3 96.3 2.3 22.3 84.8 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates (both MFN and under Agreement) are excluded in the 
computation. For the calculation of averages, specific rates are excluded, and the ad valorem  parts 
of alternate rates are included.  
 Based on the HS 2017 nomenclatu re.  
Source:  WTO estimates based on data provided by Japan and IDB -WTO.  
 
8. Table A1.4 gives an indication of additional market access in Japan for the UK's top 25 global 
exports, which accounted for 34.8% its global exports in 2018 -2020; these corresponded to 82 lines 
in Japan's tariff at the nine-digit level (HS 2017).  
9. In 20 21, 46 of these tariff lines already had (MFN) duty-free access to Japan's market. Under  
the Agreement, the remaining  36 items were duty-free for export from the UK in 2021 . As a result , 
none of the UK's top 25 exports are dutiable in Japan.  WT/REG441/1 /Rev.1  
 
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  Table A1.4 Japan: Market access opportunities under the agreement for UK's top 25 global 
exports   
United Kingdom's top export products  
in 2018 - 2020  Access Conditions to Japan' s import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2021  Duty -
free 
under 
the 
Agree -
ment  
(2021)  
Remain 
dutiable  
Avg. 
MFN 
applied 
rate 
(%) Number of 
lines  
Duty-
free  duti-
able 
710813  Gold, incl. gold plated with platinum, in 
semi-manufactured forms, for non -
monetary purposes  5.6 0.0 2    
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  4.9 0.0 2    
300490  Medicaments consisting of mixed or 
unmixed products for therapeutic or 
prophylactic purposes,  3.2 0.0 4    
880330  Parts of aeroplanes or helicopters, n.e.s.  2.9 0.0 1    
841112  Turbojets of a thrust > 25 kn  2.6 0.0 1    
870323  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, of a cylinder capacity > 1.500 
cm³ but <= 3.000 cm³  2.4 0.0 1    
841191  Parts of turbojets or turbopropellers, n.e.s.  2.1 0.0 1    
870324  Motor cars and other motor vehicles 
principally designed for the transport of<10 
persons, of a cylinder capacity>3.000 cm³  1.7 0.0 1    
220830  Whiskies  1.3 0.0 1    
271012  Light oils and preparations  1.3 1.3 5 11 11  
970110  Paintings, e.g. oil paintings, watercolours 
and pastels, and drawings executed entirely 
by hand  1.3 0.0 1    
870322  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, of a cylinder capacity > 1.000 
cm³ but <= 1.500 cm³  1.2 0.0 1    
711319  Articles of jewellery and parts thereof, of 
precious metal other than silver  1.0 5.3  3 3  
271019  Medium oils and preparations, of petroleum 
or bituminous minerals, not containing 
biodiesel, n.e.s.  1.0 2.2 9 22 22  
870332  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, of a cylinder capacity > 1.500 
cm³ but <= 2.500 cm³  0.7 0.0 1    
300220  Vaccines for human medicine  0.6 0.0 1    
870340  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, of a cylinder capacity > 1.500 
cm³ but <= 2.500 cm³  0.6 0.0 1    
711021  Palladium, unwrought or in powder form  0.6 0.0 1    
300215  Immunological products, for retail sale  0.6 0.0 1    
851762  Machines for the reception, conversion and 
transmission or regeneration of voice, 
images or other data  0.6 0.0 2    
382200  Diagnostic or laboratory reagents on a 
backing, prepared diagnostic or laboratory 
reagents  0.5 0.0 1    
490199  Printed books, brochures and similar printed 
matter  0.5 0.0 1    
870333  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, incl. station wagons and 
racing cars, with only diesel engine of a 
cylinder capacity > 2.500 cm³  0.5 0.0 1    
840890  Compression -ignition internal combustion 
piston engine "diesel or semi -diesel engine"  0.4 0.0 4    WT/REG441/1 /Rev.1  
 
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  United Kingdom's top export products  
in 2018 - 2020  Access Conditions to Japan' s import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2021  Duty -
free 
under 
the 
Agree -
ment  
(2021)  
Remain 
dutiable  
Avg. 
MFN 
applied 
rate 
(%) Number of 
lines  
Duty-
free  duti-
able 
870899  Parts and accessories, for tractors, motor 
vehicles for the transport of ten or more 
persons  0.4 0.0 2    
 
Total of above  38.4  46 36 36 0 
Note:  Tariff lines subject to in -quota rates (both MFN and under Agreement) are excluded in the 
computation. For the calculation of averages, specific rates are excluded, and the ad valorem  parts 
of alternate rates are included.   
 Based on the HS 2017 nome nclature.  
Source:  WTO estimates based on data from Japan and the UK authorities.   WT/REG441/1 /Rev.1  
 
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  ANNEX 2  
SUMMARY OF JAPAN'S SCHEME FOR THE APPLICATION FOR PREFERENTIAL TARIFF TREATMENT 
FOR CERTAIN ORIGINATING GOODS  
1. The table A2.1 below provides detail ed lists of products and tariff rates  of Japan's scheme for 
the application for preferential tariff treatment for certain originating goods indicated as "PIC-n", as 
stipulated in Sub -section 2, Section B or Part 3 of Annex -2. The application of p referential tariff 
treatment those 10 products is condition ed on the submission of the Preferential Import Certificate 
(PIC) prior to requesting import permission for the  originating  goods.  
2. The aggregate quantity of such originating goods for which PICs are made available to the 
importers is calculated as the difference between the aggregate quota quantity of the corresponding 
goods under the EU-Japan EPA  and the confirmed quota quantity that ha s been utilized by the 
importer in that particular year under the EU -Japan EPA .1 In other words, the available  quantity for 
the 10 product s scheduled by Japan is the  surplus TRQ volume not utilised by  importers from  the 
EU in the particular  year.2 If there is no surplus, the available quantity for the PIC will be zero . 
3. With regard to the applied preferential tariff , five categories  of originating products from the 
UK are subject to  duty-free treatment : mixes and doughs and cake mixes; food preparations made 
primarily of wheat; coffee, tea mixes, food preparations and doughs; food preparations; food 
preparations conta ining cocoa for the preparation of chocolate. For the remaining categorie s, Japan  
(i) progressively eliminates customs duties within 9 or 14 years  depending on the category of 
product ; or (ii) eliminate s customs duties retaining the right to apply an impor t mark -up in 
accordance, but not exceeding, the amount specified in  Japan's WTO TRQ Schedule .  
Table A2. 1 Japan : Summary of category "PIC -n" Tariff Rate Quotas under the Agreement  
HS tariff line code (description)  Base rate  Preferential Rate  
1st year Final  
PIC-1, Wheat products3    
190410.221, 190420.221  19.2%  0%a  
190430.010, 190490.210, 210690.214  25% 0%a  
PIC-2, Mixes and doughs and cake mixes     
190120.222, 190120.235  23.8%  0%  
190120.232  24% 0%  
190120.243  16% 0%  
PIC-3, Food preparations made primarily of 
wheat     
190190.242  24% 0%  
190190.247  28% 0%  
190190.252  23.8%  0%  
190190.267  16% 0%  
PIC-4, Food preparations of barley4    
190120.141, 190190.161, 190490.310 and 
210690.216  25% 0%a  
 
1 For further details, please refer to Section 3.1.4 and Annex 2 of the factual presentation for the EU -
Japan EPA (document WT/REG396/1).  
2 In particular, this concerns the following TRQs scheduled by Japan  under the EU -Japan EPA : TRQ -1 
wheat products; TRQ -2 mixes and doughs and cake mixes; TRQ -3 food preparations made primarily of wheat; 
TRQ-8 food preparations of barley; TRQ -11 coffee, tea mixes, food preparations and doughs; TRQ -12 food 
preparations; TRQ -15 food preparations containing more than 50% of su crose and cocoa powder; TRQ -19 food 
preparations containing cocoa; TRQ -20 food preparations containing cocoa (for the preparation of chocolate); 
TRQ-25 cheeses.  
3 PIC-1 is established outside the TRQ set out in Japan's Schedule to the WTO Agreement and administered 
by Japanese authorities as a state trading enterprise using a simultaneous buy -sell (SBS) mechanism. The 
amount of the import mark -up shall not exceed the amount permitted for the goods under Japan's Schedule to 
the WTO Agreement  (note 1(c) of Sub -Section 2 to Section B, Part 3 of Annex 2 -A). 
4 PIC-4 is established outside the TRQ set out in Japan's Schedule to the WTO Agreement and administered 
by Japanese authorities  as a state trading enterprise using a SBS mechanism. The amoun t of the import mark -
 WT/REG441/1 /Rev.1  
 
- 75 - 
 
  HS tariff line code (description)  Base rate  Preferential Rate  
1st year Final  
190420.231,  19.2%  0%a  
PIC-5, Coffee, tea mixes, food preparations 
and doughs     
170290.219  29.8% or 23 yen/kg, 
whichever is the 
greater  0%  
190120.239, 190190.217, 190190.253  23.8%  0%  
190190.248, 210690.251, 210690.271  28% 0%  
210112.110  24% 0%  
210112.246, 210120.246, 210690.281  29.8%  0%  
210690.272  25.5%  0%  
PIC-6, Food preparations     
210690.590  29.8%  0%  
PIC-7, Food preparations containing more 
than 50 per cent of sucrose, and cocoa 
powder     
170113.000, 170114.190,  35.30 yen/kg  0%  
200540.190, 200551.190, 200599.119,  23.8%  0%  
210690.282  76.50yen/kg  0%  
210690.510  29.8%  0%  
190190.219 and 210690.284  29.8%  26.5%  17.9%*  
180610.100  29.8%  25.7%  14.9%*  
PIC-8, Food preparations containing cocoa     
180620.290  21.3% (S)  18.4%  10.7%*  
PIC-9, Food preparations containing cocoa 
(for the preparation of chocolate)     
180620.2905 21.3% (S)  0%  
PIC-10, Cheeses     
040610.020  22.4% (S)  18.2%  0%**  
040610.090, 040640.090 and 040690.090  29.8% (S)  24.2%  0%**  
040620.100 and 040630.000  40% (S)  32.5%  0%**  
Note:  
a:  Duty-free, subject to an import mark -up applied by Japan. The amount of the import mark -up shall 
not exceed the amount permitted for the goods under Japan's Schedule to the WTO Agreement.  
*:  Rate of customs duties at the end of the liberalization period (i.e. from the 9th year and for each 
subsequent year).  
**: Rate of customs duties at the end of the liberalization period (i.e. from the 14th year and for each 
subsequent year).  
(S)  The treatment of originating goods is subject to review by the Parties in the fifth year following the 
date of entry into force of the Agreement or in a year on which the Parties otherwise agree, whichever 
comes first .  
Source:  WTO Secretariat on the basis of the Agreement.  
 
__________  
 
up shall not exceed the amount permitted for the goods under Japan's Schedule to the WTO Agreement  (note 
4(c) of Sub -Section 2 to Section B , Part 3  of Annex 2 -A of the Agreement ). 
5 It is clarified that duty -free treatment is applied, provided that the quantity of such originating goods 
for which the UK -Japan Preferential Import Certificate is issued for each application made by the importer shall 
not exceed the limit of three multiplied by the quantity of the milk powder, specified in the application, produced 
from domestic milk and used by that importer for the production of chocolate in Japan. (Paragraph 9(a) of Sub -
Section 2  to Section B, Part 3, Annex 2 -A).