WT/TPR/M/438/Add.1  
21 June  2023 
(23-4272) Page: 1/249 
Trade Policy Review Body  
1 and 3 March 2023  Original: English/anglais/inglés  
Spanish/espagnol/español  
 
  
TRADE POLICY REVIEW  
JAPAN 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Dr. Athalia Lesiba Molokomme (Botswana)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Japan .1 
 
 
Organe d'examen des politiques commerciales  
1 et 3 mars 2023  
EXAMEN DES POLITIQUES COMMERCIALES  
JAPON 
COMPTE RENDU DE LA RÉUNION  
Addendum  
Présidente : S.E.  Dr. Athalia Lesiba Molokomme (Botswana)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Japon .1 
 
 
Órgano de Examen de las Políticas Comerciales  
1 y 3 de marzo de  2023  
EXAMEN DE LAS POLÍTICAS COMERCIALES  
JAPÓN 
ACTA DE LA REUNIÓN  
Addendum  
Presidenta: Excma.  Dr. Athalia Lesiba Molokomme (Botswana)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los  Miembros de la OMC,  así como las respues tas facilitadas por  Japón .1 
 
 
 
 
 
 
1 In English only ./En anglais seulement./En inglés solamente.  WT/TPR/M/438/Add.1  
 
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Contents  
1  SINGAPORE  ................................ ................................ ................................ ..................  3 
2  CHINA  ................................ ................................ ................................ ..........................  5 
3  PHILIPPINES  ................................ ................................ ................................ .............  31 
4  THAILAND  ................................ ................................ ................................ ..................  46 
5  ISRAEL  ................................ ................................ ................................ .......................  56 
6  UNITED KINGDOM  ................................ ................................ ................................ ...... 57 
7  AUSTRALIA  ................................ ................................ ................................ ................  66 
8  CHILE  ................................ ................................ ................................ .........................  76 
9  ICELAND  ................................ ................................ ................................ ....................  80 
10  SWITZERLAND  ................................ ................................ ................................ .........  81 
11  ARGENTINA  ................................ ................................ ................................ ..............  87 
12  CHINESE TA IPEI................................ ................................ ................................ ....... 90 
13  EUROPEAN UNION ................................ ................................ ................................ .... 98 
14  UNITED STATES  ................................ ................................ ................................ ..... 118  
15  COSTA RICA  ................................ ................................ ................................ ...........  128  
16  SAUDI ARABIA, KINGDOM OF  ................................ ................................ ................  139  
17  BRAZIL  ................................ ................................ ................................ ...................  141  
18  TÜRKIYE  ................................ ................................ ................................ .................  145  
19  NORWAY  ................................ ................................ ................................ ................  151  
20  DOMINICAN REPUBLIC ................................ ................................ ...........................  152  
21  COLOMBIA ................................ ................................ ................................ ..............  153  
22  CANADA  ................................ ................................ ................................ .................  171  
23  UKRAINE  ................................ ................................ ................................ ................  179  
24  NEW ZEALAND  ................................ ................................ ................................ ........  189  
25  HONG KONG, CHINA  ................................ ................................ ...............................  197  
26  BRUNEI DARUSSALAM  ................................ ................................ ............................  201  
27  INDIA  ................................ ................................ ................................ .....................  204  
28  RUSSIAN FEDERATION  ................................ ................................ ...........................  234  
29  REPUBLIC OF KOREA  ................................ ................................ ..............................  246  
30  KAZAKHSTAN  ................................ ................................ ................................ .........  249  
 
  WT/TPR/M/438/Add.1  
 
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  1  SINGAPORE  
QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
6 Japan's Domestic Policies  
Page 15 (Paras 6.1 and 6.2)  
 
We note that Japan is facing a declining and aging population and a low birth rate, stagnant potential 
growth, and frequent and intensified disasters, and the Japanese government has set out the Grand 
Design and Action Plan for a New Form of Capitalism in June 2022. We would like to understand:  
 
• What are the priority areas  or sectors identified under this Action Plan?  
• What are the results of this Action Plan so far?  
• What are the intended results from this Action Plan, and what would be the duration of 
implementation?  
Response  
We set out the Grand Design and Action Plan for  a New Form of Capitalism focusing on investment 
in four pillars: 1) investment in people, 2) investment in science, technology, and innovation, 3) 
investment in startups, and 4) investment in GX and DX. According to this plan, we have been 
specifying poli cies through setting out "Startup Development Five -year Plan" and "Doubling Asset -
based Income Plan" and so on. In addition, we have been implementing comprehensive economic 
measures, which was decided in last October, for acceleration of policies to reali ze the New Form of 
Capitalism. We are going to continue implementing related policies.  
Please check the link below for more information:  
https://www.cas.go.jp/jp/seisaku /atarashii_sihonsyugi/pdf/ap2022en.pdf  
 
QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
1 Economic Environment  
Page 17 (Paras 1.11 to 1.13)  
 
We note that as at 20 October 2022, the yen stood at nearly 150 to the U.S. dollar, its weakest 
position since 1998. The principal reason for the yen's strong recent depreciation is the increasing 
divergence in monetary policies of Japan and the United States, along with the growing expectation 
that the spread in interest rates between the two countries is about to  widen. We would like to 
understand:  
• How has the strong recent depreciation of the yen resulted affected the Japanese economy? 
Could Japan elaborate on the effects and the policy tools used to mitigate negative effects, 
if any?  
 
Response  
Although it is dif ficult to isolate the contribution of the yen depreciation alone, prices in Japan have 
been rising due to yen depreciation and price hikes in international commodity markets.  
Regarding the impact of the price rise on households, this has been pushing down real income and 
has worsened consumer confidence, which partly affects durable goods consumption. However, 
overall household consumption has been moderately increasing.  
 
As for the impact on businesses, corporate profits are under pressure of input cost hi kes and this 
mainly hits SMEs. However, large manufacturing firms have experienced positive effects from an 
increase in export of yen -denominated revenues from overseas business sites. The level of corporate 
profit for the Q3 of 2022 increased in y/y for 7  straight quarters and reached the highest level as 
Q3. 
 
As described above, the yen depreciation has had both positive and negative effects on Japan's 
economy.  
We have taken measures to address price hikes in electricity, gas, gasoline, wheat, with a focu s on 
energy and food, which are the main causes of high prices, and we have taken multi -layered support 
measures, including the provision of benefits to low -income households, which are particularly 
impacted.  
 
In addition to overcoming high prices, while a lso taking advantage of the current weak yen, we are 
also working to strengthen its growth potential through a  revival of inbound tourism, expansion of WT/TPR/M/438/Add.1  
 
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domestic investment, increase  in exports by small and medium -sized enterprises (SMEs) and 
increase in ex ports of agricultural, forestry and fisheries products.  
  WT/TPR/M/438/Add.1  
 
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  2  CHINA  
PART I: QUESTIONS REGARDING THE Secretariat Report   
Page 9, Para. 10  
 
Japan's policy objectives also place great emphasis on national and economic security issues. The 
new Act for the Promotion of Ensuring National Security through Integrated Implementation of 
Economic Measures, adopted in May 2022, provides a framework for ensuring a stable supply of key 
products and essential infrastructure services, enhancing development of advanced critical 
technologies, and preventing disclosure or divulgence of inventions that might be detrimental to 
national security through patent procedures.  
 
Question  
1. Could Japan please elaborate on how Japan defines "key products", " essential infrastructure 
services"  and "advanced critical technologies"?  
Response  
"Specified critical (key) products" are defined as critical products which are vital for the survival of 
the people or on which their daily lives or the economic activities depend, and of which stable supply 
is particularly necessary to prevent a situation in which the security of the nation and its citizens is 
undermined due to outside actions when the critical products or their materials, etc. are excessively 
reliant or are likely to be reliant  on outside sources.  
"Specified essential infrastructure services" means services that form the basis of living conditions 
and economic activities, and which, in the event that the stable service provision is disrupted, may 
cause a "situation that could im pair the security of the nation and its citizens (for example, a situation 
that threatens the lives of citizens or impairs social and economic order (widespread or large -scale 
disruption, etc.))."  
"Specified essential infrastructure business" are specified  by Cabinet Order as those that provide the 
"specified essential infrastructure services", among the 14 businesses that are listed in Article 50, 
paragraph 1 of the Act.  
"Advanced critical technologies" are defined as advanced technologies that could pose  a risk of 
undermining the security of the nation and its citizens if a foreign body were to improperly use such 
technology.  
2.  Could Japan please elaborate on whether the relevant policy provisions of the new framework 
impose restrictions on investors comin g to Japan and even on enterprises from other members 
exporting equipment to Japan? How can it be ensured that the law and its implementing 
regulations will not undermine Japan's trade liberalization commitments under the WTO 
framework?  
Response  
The Econom ic Security Promotion Act does not target any specific countries. Article 90 of the Act 
provides that due attention must be paid to consistency with treaties and other international 
agreements. The same intent as the Article is also stated as a matter of c ourse in the Basic Policies 
of the Act, which was approved by the Cabinet in September 2022. Subordinate laws and regulations 
were/will be established based on the intent.  
3. Could Japan please explain whether this law would constitute an undue trade restrict ion on 
other members on the ground of national security? How can it be ensured that it does not 
result in discriminatory treatment of particular members?  
Response  
The Economic Security Promotion Act does not target any specific countries. Article 90 of the  Act 
provides that due attention must be paid to consistency with treaties and other international 
agreements. The same intent as the Article is also stated as a matter of course in the Basic Policies 
of the Act, which was approved by the Cabinet in Septem ber 2022. Subordinate laws and regulations 
were/will be established based on the intent.  WT/TPR/M/438/Add.1  
 
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Page 9, Para. 11  
To this end, a long -term strategy under the Paris Agreement was elaborated in 2019 and revised in 
2021 to promote green innovations and finance, and a n Environment Innovation Strategy in 2020, 
with action plans for each technology area. Also in 2020, a new Green Growth Strategy was 
published.  
 
Question  
4. Could Japan please describe the implementation of the series of the Green Growth Strategy  and 
the resu lts achieved?  
Response  
In 2020, the "Green Growth Strategy Accompanying Carbon Neutrality in 2050" was formulated, 
and in June 2021, discussions in each field were lowered and fleshed out. In March 2022, the content, 
areas, etc. were reviewed and a follow -up was released in response to social and economic conditions 
and technological progress. We will continue to mobilize all policies, including tax, finance, 
regulation/standardization, and finance, to steadily implement the Green Growth Strategy in order 
to encourage innovation and positive corporate challenges at all costs.  
Page 9, Para. 12  
Japan grants at least MFN treatment to all WTO Members with exception to the Russian Federation 
and a few other countries and territories. MFN treatment to the Russian Federation was suspended 
on 21 April 2022 following the start of the war in Ukraine.  
 
Question  
5. Could Japan please specify the legal basis and factual evidence for its determination of "except 
for several other countries and territories"?  
Response  
Although the Secretariat's report says "with exception to the Russian Federation and a few other 
countries and territories," Japan currently grants MFN treatment to all WTO Members except Russian 
Federation.  
Page 9, Para. 15  
The Foreign Exchange a nd Foreign Trade Act (FEFTA) and its implementing regulations remain the 
main legal instrument that governs foreign investment in Japan. The FDI framework is liberal, with 
only few sectoral restrictions (e.g. broadcasting, radio, and telecommunications), b ut a screening 
requirement for foreign investment is in place. Prior notification is required for industrial sectors in 
national security, public order, or other specifically designated industries. An amendment to the 
FEFTA, which entered into force in 202 0, lowered the screening threshold from 10% in company 
shares to 1%.  
 
Question  
6. In legislation and practice, could Japan please clarify whether the screening requirement for 
FDI are non -discriminatory and whether there are any special requirements for speci fic 
countries?  
Response  
Prior notification system for inward FDI is intended for investment from all countries and is not 
intended to exclude investment from certain countries.  
Page 11, Para. 26  
Although IP revenue, as shown in the balance of payments stat istics, dropped with the emergence 
of the COVID -19 pandemic in 2020, it recovered in 2021, where it stood at over JPY 5.2 trillion. 
During the review period, Japan amended the Science, Technology, and Innovation Basic Law to add 
"innovation" as a key pilla r. The 6th Basic Plan, promulgated under the Act, aims for, inter alia, 
government R&D investments of approximately JPY 30 trillion and public and private R&D investment 
of JPY 120 trillion.  
 
Question  
7.  Please provide the structure and proportion of IP reve nue. 
 WT/TPR/M/438/Add.1  
 
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  Response  
"Charges for the use of intellectual property n.i.e." covers (1) charges for the use of proprietary 
rights arising from research and development as well as from marketing, (2) charges for licenses to 
reproduce or distribute copyrighted mater ials, and (3) charges for screening and broadcasting rights. 
In Japan's BOP statistics, this item is further divided into "charges for the use of industrial property 
n.i.e." and "charges for the use of copyrights n.i.e."  
"Charges for the use of intellectua l property n.i.e.(net)"in 2020 accounted for 10% of the current 
account and 9.5% in 2021."  
8. Please explain the main elements of the revision of the Science, Technology, and Innovation 
Basic Law  and how "' innovation' has become one of the key pillars " is ref lected in the law.  
Response  
The main elements of revision of Basic Act on Science and Technology in 2020 are (1) the addition 
of "innovation creation" and the humanities and social sciences (referred to as the "humanities" in 
the Act) to the scope subject of the Act, (2) the establishment of definition provision of "innovation 
creation" in the Act, (3) the addition of policies that the government will implement for securing and 
training researchers, human resources to create new businesses, etc. to matters of the Science, 
Technology, and Innovation Basic Plan, and (4) the change of the name of the law to the Basic Act 
on Science, Technology and Innovation.  
Due to these revisions of the Act, "innovation" was let a key pillar of the Act.  
Page 12, Para. 30  
In order to secure the stable domestic production of semiconductors in Japan and incentivize such 
investments, on 1 March 2022, the Government implemented a new legal instrument that provided 
grants to advanced chip manufacturers under certain conditions.  
 
Question  
9. Please provide the name and text of "a new legal  instrument ". 
Response  
*In Japan, the Bill for the Act of Partial Revision of the Act on Promotion of Developing/Supplying 
and Introducing Systems Making Use of Specified Advanced Information Communi cation 
Technologies and the Act on the New Energy and Industrial Technology Development Organization 
came into effect on March 31, 2022.  
*The text is open to the public at the following URL (only Japanese)  
• the Act of Partial Revision of the Act on Promotio n of Developing/Supplying and Introducing 
Systems Making Use of Specified Advanced Information Communication Technologies  
https://elaws.e -gov.go.jp/document?lawid=502AC0000000037  
• the Act on the New Energy and Industrial Technology Development Organization  
https://elaws.e -gov.go.jp/document?lawid=414AC0000000145  
Please check the following URL to check the outline o f the bill.  
https://www.meti.go.jp/english/press/2021/1206_001.html  
10.  Please elaborate on the details of the " certain conditions"  and indicate the amount of the 
"grants" and its provisi ons. 
Response  
*The main criteria are,  
- to continue production for 10 years or more  
- to commit to actions which contribute to stable production of advanced semiconductors  (increase 
production on semiconductor shortages investment and R&D to strengthen production capability, 
etc.) WT/TPR/M/438/Add.1  
 
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- to establish a system and organization for technology information management  
*617 billion yen and 450 billion yen was added to the fund at NEDO respectively, in the 
Supplementary Budget for FY2021 and FY2022.  
Page 25, Para. 2.3  
The new Act for the Promotion of Ensuring National Security through Integrated Implementation of 
Economic Measures (Economic Security Promotion Act), adopted in May 2022, provides for a 
framework for ensuring a stable supply of "key products"  and "essential infrastructure services", 
enhancing development of "advanced critical technologies" (Article 2.2), and preventing disclosure 
or divulgence of inventions that might be detrimental to national security through patent procedures. 
As at October  2022, implementing regulations were under preparation.  
 
Question  
11. Could the Japan describe on what basis the determination of " inventions that might be 
detrimental to national security"  referred to in " provides for a framework for preventing 
disclosure or divulgence of inventions that might be detrimental to national security through 
patent procedures"  is made? What areas of technology are likely to be covered by these 
"inventions that might be detrimental to national security" ? What procedures and systems are 
involved?  
Response  
Patent applications that describe inventions in specified technology fields are sent for "security 
review". In the security review, it is individually determined whether or not the invention has a huge 
risk of detrimental impact to the security of the nation and its citizens.  
The specified technology fields will be stipulated by Cabinet Order using the International Patent 
Classification, etc. in the future.  
12. There is a view that the Act will give the Japanese Government mor e power to intervene in the 
conduct of enterprises. Has Japan made an assessment of the impact of the Act on Japanese 
enterprises' foreign trade and investment? Please elaborate on how, during the implementation 
of the Act, Japan will be ensured not to vio late WTO rules on subsidies.  
Response  
The Economic Security Promotion Act does not target any specific countries. Article 90 of the Act 
provides that due attention must be paid to consistency with treaties and other international 
agreements. The same inten t as the Article is also stated as a matter of course in the Basic Policies 
of the Act, which was approved by the Cabinet in September 2022. Subordinate laws and regulations 
were and will be established based on the intent.  
13.  We would like to know whether t he passage of this Act means an increase in transaction costs 
for businesses, a higher threshold for trade, and more barriers to trade, and whether it is 
consistent with the spirit of trade liberalization that Japan has long advocated and held.  
Response  
The Economic Security Promotion Act does not target any specific countries. Article 90 of the Act 
provides that due attention must be paid to consistency with treaties and other international 
agreements. The same intent as the Article is also stated as a mat ter of course in the Basic Policies 
of the Act, which was approved by the Cabinet in September 2022. Subordinate laws and regulations 
were/will be established based on the intent.  
Page 56, Para. 3.82  
In June 2022, the Trade and Investment Insurance Act was  revised to, inter alia, reflect changes in 
the environment surrounding overseas transactions by Japanese companies and to establish new 
insurance products; the revision entered into force in July 2022.  
 
Question  
14.  Please introduce the related content of the revision to the Act of the Nippon Export and 
Investment Insurance (NEXI) Act and the new products.  WT/TPR/M/438/Add.1  
 
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  Response  
The Trade and Investment Insurance Act was revised to reflect changes in the environment 
surrounding ov erseas transactions by Japanese companies, and put into force in July 2022.   
The Act was revised based on the following 3 key points;  
1. Responses reflecting the COVID -19 pandemic  
2. Revisions to strengthen supply chains  
3. Responses to enhance internation al cooperation  
15. We would like to know what specific non -conventional risks NEXI has extended coverage for 
since the outbreak of the pandemic (note: Since the pandemic, NEXI is known to have covered 
some risks beyond traditional business and political risks in its coverage).  
Response  
We would like to correct misidentification regarding the risk coverage. The Act didn't make NEXI 
cover beyond the traditional commercial and political risks, but enabled NEXI to cover expenses 
newly incurred due to infectious dis eases, such as COVID -19, under Export Credit Insurance, etc. 
which covers expenses to be newly borne after the conclusion of the insurance contract.  
(The covered risks are still within the traditional commercial and political risks.)  
Case study  
When a Japanese company is forced to suspend business due to an infectious disease during plant 
construction work in Country A, the company will receive an insurance payment for additional costs 
due to the business suspension, such as costs for the evacuation of the staff.  
Page 57 -58, Para. 3.85  
A small share of the JBIC's total lending and investments is geared towards providing export loans, 
largely bank -to-bank loans and buyer's credits (some JPY 60.9 billion in FY2021, representing 3% 
of all lending, investmen ts, and guarantees committed in that year). According to the authorities, 
export loans are provided based on the conditions of the Organization for Economic Co -operation 
and Development (OECD) Arrangement on Officially Supported Export Credits; export loan s are also 
available from the private sector. Most of the JBIC's lending/investment activity is not trade -related: 
overseas investment loans accounted for 77% of lending and other commitments in FY2021; untied 
loans, 2%; guarantees, 4%; and equity particip ations, 2%.  
 
Question:  
16. We would like to know how much the Japan Bank for International Cooperation (JBIC) and NEXI, 
as officially established institutions in Japan, together support Japanese export buyer's credit 
and also export loans throughout the year. Apart from these institutions, are there any other 
officially established financial institutions in Japan that engage in such support? What is the 
approximate share of the above export credit and also export loans in Japan's overall export 
credit and also export loans? (Is there export financing of a commercial nature/policy support 
not required?)  
Response  
In FY2021, NEXI and JBIC supported about JPY 1.8 billion JPY 60.9 billion respectively in Japanese 
export buyer's credit and export loans.  
No other offic ial institutions than JBIC and NEXI have been established for providing official supports 
including official export credits and loans.  
No export credits and loans have been provided by JBIC nor NEXI which are not based on the 
government's policy.  
17. We would like to know the main differences between JBIC's Overseas Investment Loans and 
Untied Loans.  WT/TPR/M/438/Add.1  
 
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Response  
Overseas investment loans support Japanese foreign direct investments. The loans can be provided 
to Japanese companies (investors), overseas Japanese affi liates (including joint ventures) and 
foreign governments or financial institutions that have equity participations in or provide loans to 
such overseas affiliates.  
Untied loans are intended to finance projects and the import of goods by developing countri es, or 
for such countries to achieve equilibrium in their international balance of payments, or to stabilize 
their currencies.  
Page 81, Para. 3.168  
In May 2022, the Diet passed the Act for the Promotion of Ensuring National Security through 
Integrated Impl ementation of Economic Measures. The Act, to be fully implemented within two 
years, calls for a system to support the development of advanced critical technologies, which may 
include quantum and AI technologies for domains such as maritime and aerospace, a s well as a 
system for "non -disclosure of selected patent applications" akin to those in most other G20 
economies.  
 
Question  
18.  We would like to know whether the Act mentioned in the above paragraphs is currently in force 
and, if so, what the current effect is.  
Response  
Of the measures stipulated in the Act, systems for support for the development of advanced critical 
technologies , etc., have been in effect since August 1, 2022. As of February 2023, we are preparing 
to begin some programs.  
The system for non -disclosure of selected patent applications has not yet come into effect. It will be 
in force within two years from the date of promulgation of the Act (i.e. by May 17, 2024).  
19.  We would like to know whether there is a similar system of non -disclosure or confidential patent 
applications in Japan before the " non-disclosure of selected patent applications " system, 
whether there is a specific scope for " selected  patent applications", and what conditions are met 
before subsequent disclosure is made.  
Response  
Prior to the system for "non -disclosure of selected patent applications," there is no current system 
under which patent applications to Japan are examined to determine whether they should be non -
disclosed for security reasons.  
The specified technology fields will be stipulated by Cabinet Order using the International Patent 
Classification, etc. in the future.  
If it is consi dered that there is no need to continue the security designation, the security designation 
is terminated and the application is published.  
20. Since the disclosure of patent applications is a fundamental rule underpinning the patent system 
in its role of safeg uarding the public interest, we wonder whether the Japanese government has 
measures in place to ensure that the system is implemented in a balanced manner, i.e. that 
national security is not abused to cause systemic damage to the patent system.  
Response  
The specified technology fields will be stipulated in a foreseeable manner by Cabinet Order. Also, 
the Act clearly provides that, when considering whether or not the security designation is necessary, 
in addition to security reasons, the impact on the develo pment of the industry is to be taken into 
account.  
21. We would like to know how the Japanese government ensures the legal rights of foreign 
innovators to apply for, protect and exercise patents in Japan in the course of implementing 
this system, as well as in  the course of implementing other measures under the Economic 
Security Promotion Act . WT/TPR/M/438/Add.1  
 
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  Response  
Under this system, there is no distinction based on whether the applicant is a foreign innovator or 
not. 
Page 83, Para. 3.174  
With standard essential patents (SE Ps) playing an increasing and ever complex role in IoT 
innovation, the JPO developed and compiled relevant resources on a dedicated SEP portal. In 2022, 
it launched a revised second edition of its non -binding Guide to Licensing Negotiations Involving 
SEPs,  incorporating information learned from various studies it undertook of domestic and overseas 
SEP developments. The METI has also developed SEP -related guidance. In 2020, the METI released 
a Guide to Fair Value Calculation of SEPs for Multi -Component Produ cts, and in 2022, Good Faith 
Negotiation Guidelines for SEP Licenses. Reportedly, only a few stakeholders have filed petitions 
seeking an advisory opinion on the essentiality of a patent under the JPO's Hantei for  
essentiality check, and the JPO has yet t o issue any opinions. Relatedly, Japan has not been a major 
destination for global SEP litigation, although this could change as car makers increasingly employ 
mobile technology.  
 
Question:  
22.  We would like to know whether  the Japanese government can confirm  the statement  in the 
Secretariat 's Report that the number of the Japan Patent Office  (JPO) essentiality checks  for 
standard -essential patents is low and that no determination has been made . We also wonder 
whether Japan can  provide the corresponding number of applications for the essentiality checks 
and how long JPO plans to complete the checks.  
Response  
It is true  that "the number of the JPO essentiality checks for standard -essential patents is low and 
no determination has been made".  
In 2022, there were two requests for "Hantei" (Advisory Opinion) for Essentiality Check. In order to 
obtain their results, the conte nt of the requests must meet the requirements for "Hantei" (Advisory 
Opinion) for Essentiality Check, and there is no request that has met the requirements and reached 
a determination at this time (as of the end of January 2023). Therefore, the JPO has no information 
to be able to provide about the processing period.  
23. The Japanese government has developed some guidelines for standard essential patents (SEPs), 
which serve as guidance for companies. However, these guidelines are not rule -based or policy -
based documents. We would like to know whether the Japanese government has any plans to 
develop or revise laws and policies to further strengthen guidance on SEP.  
Response  
There are currently no plans to develop new laws or policies to further strengthen the gui dance for 
SEPs. On the other hand, we will continue to consider appropriate revisions to the guidance based 
on domestic and international trends, while SEPs play an increasingly complex role in IoT innovation.  
24. The Secretariat's Report mentions that Japan i s not a major target country for SEP global 
disputes, we would like to know what the Japanese government believes are the main reasons 
for this, and whether there are any institutional barriers that prevent multinational companies 
from settling SEP dispute s in Japan.  
Response  
We believe that a destination for global SEP litigation should be considered by the parties to the 
dispute depending on their own circumstances.  
We do not believe there are any institutional barriers to resolving SEP disputes in Japan.  
25. The Report mentions that as the smart car market matures, SEP disputes may also increase in 
Japan, and we would like to know if the Japanese government agrees with this judgement. If 
so, given the importance of the Japanese automotive market to the Japane se economy, are 
there any plans to introduce relevant rules or guidelines in this area?  WT/TPR/M/438/Add.1  
 
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Response  
As a result of companies in various industries becoming involved in SEP licensing negotiations, there 
is a possibility to increase the number of cases in which Japanese companies become parties to 
disputes over SEPs. However, it is not possible to predict whether or not the number of SEP lawsuits 
in Japan will increase. Therefore, there are no specific plans to introduce new rules and guidelines, 
including those in the automotive market.  
On the other hand, the Ministry of Economy, Trade and Industry publish ed ""the Good Faith 
Negotiation Guidelines for Standard Essential Patent Licenses."" In addition, the Japan Patent Office 
published ""the Guide to Licensing Negotiations involving Standard Essential Patents."" They are 
formulated with the aim of avoiding d isputes that could lead to lawsuits concerning Standard 
Essential Patents. In addition to working to disseminate and utilize these Guidelines and the Guide 
in various fields, we will continue to consider appropriate revisions in light of domestic and 
international trends.  
Page 86, Para. 3.186  
The process of obtaining a patent remains unchanged since the previous Review. The Examination 
Guidelines for Patent and Utility Models were updated to provide enhanced guidance to applicants. 
Fees for patent registrat ions and annuity payments increased in April 2022 in order to address 
deficits attributed to increasing examination burdens, digitization efforts, and renovation of 
government buildings.  
 
Question  
26.  We would like to know what are the main changes to the Exa mination Guidelines for Patent 
and Utility Models . 
Response  
In 2022, the JPO made revisions regarding the "Multi -Multi Claim Restriction".  
For details, see the JPO website (page of ""Revision History of Examination Guidelines for Patent and 
Utility Model i n Japan"").  
(URL: https://www.jpo.go.jp/e/system/laws/rule/guideline/patent/kaitei/index.html ) 
27. We would like to know exactly which fees for patent registrations and annuity payments  have 
been increased and by how much respectively.  
Response  
Patent fees have been revised as follows.  
From 1st year to 3rd year 
(Before Revision) 2,100 yen per year + (20 0 yen per claim)  
(After Revision) 4,300 yen per year + (300 yen per claim)  
From 4th to 6th year 
(Before Revision) 6,400 yen per year + (500 yen per claim)  
(After Revision) 10,300 yen per year + (800 yen per claim)  
From 7th to 9th year 
(Before Revision) 19, 300 yen per year + (1,500 yen per claim)  
(After Revision) 24,800 yen per year + (1,900 yen per claim)  
From the 10th to the 25th year 
(Before Revision) 55,400 yen per year + (4,300 yen per claim)  WT/TPR/M/438/Add.1  
 
- 13 - 
 
  (After Revision) 59,400 yen per year + (4,600 yen per claim)  
Please see this page for details:  
https://www.jpo.go.jp/system/process/tesuryo/kaisei/2022_ryokinkaitei.html#1 -1 
Page 86, 3.188  
Accelerated and super -accelerated examination reduced average FA pendency for qualifying 
applications.  
 
Question  
28. We would like to know the number of foreign applicants granted accelerated and super -
accelerated examination  programmes each year.  
Response  
Approximately 4,000 patent applications filed annually by foreign applicants are subject to 
Accelerated Examinations. Of these, approximately 60 applications are subject to Super Accelerated 
Examinations annually.  
Page 87, 3.189  
The annual number of patent applications received by the JPO has continued a pattern of either 
negligible growth or decline since 2005. Filings dropped by over 6% in 2020 compared to 2019 and 
remained nearly flat in 2021, due mostly to declines in domestic  filings.  
 
Question  
29. According to the statistical tables, the number of patent applications filed by JPO has been 
decreasing year -on-year in recent years, but the review period  has been gradually increasing, 
we would like to know what are the main reasons f or this.  
Response  
As you pointed out, the number of domestic applications is decreasing, but the number of 
registrations is flat. The JPO understands that this is the result of patent applications carefully 
selected by domestic applicants and the shift fro m quantity to quality.  
Page 90, 3.200  
Applicants who miss designated deadlines or grace periods may also now avail themselves of new 
remedial measures.  
 
Question  
30. We would like to know what remedial measures are available to applicants and whether the 
remed y for missing the specified deadline is the same as the remedy for missing the grace 
period for novelty.  
Response  
The remedial measures available to applicants as a result of the 2019 revisions to the Designs Act, 
which is: (1) a remedial measure for a des ign registration application filed after the expiration of the 
priority period under Article 4C(1) of the Paris Convention, (2) a remedial measure by extending 
period designated by the Patent Office upon request by an applicant, and (3) a remedial measure 
whereby if a person claiming priority under the Paris Convention fails to submit a certificate within 
a certain period of time, the Patent Office will issue a notice and the person receiving the notice may 
submit a certificate only within a certain period of time.  
In addition, the above remedial measures differ from those for the exception to lack of novelty, 
which permits the submission of a certificate for a limited period of time if the applicant has not been 
able to submit the certificate within the time limit due to reasons not attributable to the applicant.  
Page 91, 3.204  
Amendments were made to the Trademark Act during the review period. As of April 2023, certain 
unintentionally forfeited rights due to missed deadlines may be restored with the subm ission of a 
short statement and payment of a fee. For international applications, the time -frame during which 
goods amendments may be submitted by a representative in Japan was extended from three months WT/TPR/M/438/Add.1  
 
- 14 - 
 
after the notice of reasons of refusal was sent to a s long as the case is pending before the JPO. 
Trademark fees were also modified; registration and renewal fees increased by 12% -16% in April 
2022.  
 
Question  
31. We would like to know which rights can be restored in the above way.  
Response  
For patents, procedur es for the restoration of unintentionally forfeited rights due to missed deadlines 
include; submission of translations of applications written in foreign languages, claiming priority 
based on patent applications, etc., claiming priority according to the ex ample of the Paris 
Convention, requesting application examinations, late payment of patent fees and surcharges, 
submission of translations of international patent applications filed in foreign languages.  
For trademarks, such procedures include requests for  renewal registration of trademark rights, late 
payment of divisional registration fees and additional registration fees, etc.  
32. We would like to know what are the main reasons for the Japanese side to adjust the registration 
and renewal fees of trademarks.  
Response  
Under the principle of compensation for income and expenditure, the Patent Special Account is 
designed to cover expenses required for practices of examinations, etc. from income of applicants 
including patent fees and others. As a result, this acc ount is managed by a mechanism that balances 
income and expenditure in the medium to long term. Patent fees, including trademark registration 
fees and renewal fees, have been reduced successively in light of the fact that the Patent Special 
Account is in e xcess of revenue. Because of this, expenditures have increased in recent years due 
to an increase in the examination burden, etc., and the financial situation of the Patent Special 
Account is becoming tighter. In particular, given the outlook for expenditu res and revenues over the 
next five years or so, the JPO has determined that it is essential to raise patent fees and trademark 
registration fees, which account for a large proportion of total revenues.  
For international applications, the time -frame during  which goods amendments may be submitted 
by a representative in Japan was extended from three months after the notice of reasons of refusal 
was sent to as long as the case is pending before the JPO.  
 
Question  
33.  We would like to seek clarification from Japan  on whether such an adjustment would result in 
a situation where different applicants may face different commodity amendment deadlines due 
to changes in the review period , personal reasons of examiners, etc., and how such procedural 
unfairness would be con sidered.  
Response  
This change in the period for which amendments are allowed is intended to enable more appropriate 
amendments to the JPO  in international applications. In other words, it takes into consideration the 
period for the applicant to designate a representative in Japan and the time to consider the contents 
of the amendment, and improves the convenience of applicants of internatio nal applications. The 
period for which amendments are allowed after this change is the same as the period for which 
amendments are allowed provided for domestic applications.  
From April 2023 the method of paying fees for an individual international applica tion under the 
Madrid System will align with most other contracting parties and change from a two -part payment 
to a single lump sum amount due at filing.  
 
Question  
34. We would like to know if the amount of payment for a single international application has 
changed, in addition to the method of payment.  
Response  
There is no change in the individual fee (yen -denominated) to Japan. As before, the amount 
denominated in Swiss francs is subject to change according to the prescribed exchange rate.  WT/TPR/M/438/Add.1  
 
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  Page 91, Para. 3.205  
The April 2020 revision of the Examination Guidelines for Trademarks clarified, inter alia, that 
exterior and interior building designs may be protected as three -dimensional trademarks. This 
coincided with the entry into force of 2019 amendments to t he Design Act, which newly protects 
spatial designs, including interior and exterior building designs.  
 
Question  
35. We would like to know what requirements need to be met for the design of an interior or exterior 
building to be protected as a three -dimensiona l trademark, and whether the distinctiveness 
requirements differ from those for ordinary trademarks.  
Response  
In order to protect the exterior shape of a store, etc. as a three -dimensional trademark, it is required, 
for example, to indicate the overall out line of the three -dimensional shape that constitutes the three -
dimensional trademark in the column of trademark description in the application document.  
In addition, in order to protect the interior of a store, etc. as a three -dimensional trademark, it is 
required, for example, to indicate the internal configuration of the three -dimensional shape in the 
column of trademark description in the application document.  
At this time, if it is unavoidable that the edge of the three -dimensional trademark is cut off by the 
frame of the column of trademark description, it is determined that the configuration and mode of 
the three -dimensional trademark are specified within the scope described in the column of trademark 
description.  
The requirements for distinctiveness a re the same as for ordinary trademarks. However, if the 
trademark in the application is recognized as nothing more than the shape (including the shape of 
the interior) of a store, etc. that handles designated goods or designated services, it will be 
determ ined not to have distinctiveness.  
Question  
36. We would like to know if it is possible to obtain a trademark registration if the interior or exterior 
building  design has a specific architectural function.  
Response  
If a three -dimensional trademark, including th e design of the interior and exterior of a building, is 
deemed to have been adopted for the purpose of contributing to the function or aesthetic appearance 
of a store, etc. that handles designated goods or designated services, it is determined not to have 
distinctiveness and cannot be registered as a trademark.  
Page 92, Para. 3.207  
The JPO continued to offer "Fast Track" and "accelerated" examination under certain conditions. 
Applications eligible for Fast Track examination automatically received a shortene d FA pendency of 
about 6 months, whereas accelerated examination, available on request for those with certain urgent 
needs, provided an average FA pendency of 2.1 months in 2021 (compared to 1.7 months in 2018).  
 
Question  
37. We would like to know what specifi c conditions need to be met for the " Fast Track"  and 
"accelerated" examination.  
Response  
Fast-Track Examination is applicable to applications for trademark registration that specify only 
goods and services listed in the "Examination Guidelines for Similar Goods and Services", the 
"Ordinance for Enforcement of the Trademark Act", or the "International Classification of Goods and 
Services (Nice Classification)" at the time of filing as well as applications for trademark registration 
for which the designated g oods and designated services have not been amended by the time the 
examination is started. See below for details: 
https://www.jpo.go.jp/e/system/trademark/shinsa/shohyo_fast_e.html . 
Accelerated Examination is applicable to the followings; (1) applications in which the applicant 
(licensee) uses the filed trademark for part of the designated goods or designated services , or 
applications for which the applicant (licensee) has made considerable preparations for use, and which WT/TPR/M/438/Add.1  
 
- 16 - 
 
requires urgency to obtain rights; (2) applications in which the applicant (licensee) designates only 
goods and services for which the trademark has already been used or for which preparations for use 
have been made to a considerable extent, and (3) applications in which the applicant (licensee) uses 
the filed trademark for part of the designated goods or designated services, or applications for which 
the applicant (licensee) has made considerable preparations for use, and designates only goods or 
services listed in the "Examination Guidelines for Similar Goods and Services", etc. See below for 
details: https://www.jpo.go.jp/e/system/trademark/shinsa/outline_accelerated_trademark.html . 
Question  
38. We would like to know if applicants from countries other than Japan can apply for the " Fast 
Track"  and " accelerate d" examination.  
Response  
Even applicants from countries other than Japan can be eligible for fast -track examination and 
accelerated examination if they meet the requirements. However, regarding international 
applications (designating Japan as the designated country) for trademark registration under the 
Protocol Relating to the Madrid Agreement, such applicants are not eligible, as the examination 
procedure is different from that of domestic applications.  
Page 92, Para. 3.208  
Japan's Regional Collec tive Trademark System, introduced in 2006 and managed by JPO, co -exists 
with the sui generis system of geographical indication (GI) protection under the authority of the 
MAFF (Section 3.3.7.10). A Regional Collective Trademark Guidebook was published in 20 22 to 
promote awareness of the System and the registered marks. Use of the System continued to grow 
during the review period, with 730 trademarks registered at the end of March 2022, compared to 
645 at the end of 2018. As of 5 August 2022, three overseas t rademarks had been registered: 
Zhenjiang Vinegar, Prosciutto di Parma, and Ceylon Tea.  
 
Question  
39. We would like to know how applications for registration of regional collective trademarks from 
overseas are examined in Japan and what documents are required f rom overseas applicants.  
Response  
When filing applications for regional collective trademarks from overseas, as with domestic 
applications, it is required to satisfy the four main requirements; Registrant, Trademark composition, 
Close relationship with the  region, and Well -known in Japan.  
Applicants are required to submit an application and documents proving that they meet the above 
requirements . 
Page 93, Para. 3.209  
The 2014 Act on Protection of the Names of Specific Agricultural, Forestry and Fishery Prod ucts and 
Foodstuffs (GI Act) continues to provide the framework for Japan's sui generis system of protection 
for GIs of foods, beverages, and agricultural and marine products. No amendments were undertaken 
during the review period.  
 
Question  
40. We would like to know how Japan reconciles the relationship between GI protected by sui 
generis laws and those protected by trademark laws.  
Response  
➢ The right holder of the regional collective trademark cannot exercise of the right under the 
trademark right of th e regional collective trademark against legitimate use as a GI.  
➢ If registered as a GI, even the right holder of the regional collective trademark cannot use the 
registered name under the trademark right on products that do not meet the criteria such as p lace 
of origin, method of production, etc. (In such cases, the GI registration will be revoked).  
Page 93, Para. 3.213  
An amendment in 2018 regarding the use of copyrighted materials by non -profit schools in online 
lessons was also implemented in 2020, a ye ar earlier than initially planned considering the COVID -WT/TPR/M/438/Add.1  
 
- 17 - 
 
  19 pandemic. The amendment established a system permitting teachers to use copyrighted works 
in online lessons without right holder consent. Right holder compensation is coordinated by the newly 
estab lished Society for the Administration of Remuneration for Public Transmission for School 
Lessons (SARTRAS). The obligation to compensate right holders was waived for the first year, April 
2020-March 2021.  
 
Question  
41.  We would like to know if a right holder can refuse to use his copyrighted works for an online 
course by way of an advance notice.  
Response  
It is not denied that the right holder may manifest an intention to the contrary, but this does not 
necessarily guarantee refusal since it is at the decision of a person who exploits a work.  
Question  
42. We would like to know if the exemption from the obligation to pay the right holder in the first 
year (April 2020 to March 2021) is detrimental to the right holder's legitimate interest in being 
paid. 
Respo nse 
This measure is based on the will of the designated association (SARTRAS), which is composed of 
right holders' organizations, considering the urgency and seriousness of the situation due to the 
COVID -19 pandemic. Therefore, it does not prejudice the in terests of right holders to receive their 
rightful payment.  
43. We would like to know how the system protects the interests of foreign right holders.  
Response  
Article 35, paragraph (2) of the Copyright Act provides that the copyright owner may claim a 
reasonab le amount of compensation if the work is transmitted to the public.  
Page 95, Para. 3.220  
Other 2021 amendments improve public access to information. The National Diet Library (NDL) 
collects and stores copies of all media published in Japan. Previously, the  NDL could only send 
digitized versions of out -of-print materials from its collection to public and university libraries. The 
amendments permit the NDL to send such materials directly to preregistered general users, who can 
also copy them for personal use.  When the amendments take effect, the NDL and public and 
university libraries will also be able to provide digital copies – not just physical copies – of materials 
for investigation and research purposes directly to preregistered general users by email, as  long as 
measures are taken to (i) prevent competition with legitimate e -book markets; (ii) avoid the spread 
of unauthorized digital data; and (iii) ensure compliance with legal requirements. The copyright 
holder must also be compensated for these transmis sions.  
 
Question  
44. We would like to know whether this copyright restriction applies to foreign works and whether 
there are any restrictions on the types of works offered.  
Response  
This measure also applies to foreign works under the Copyright Act. This provi sion is limited to 
library materials, although there is no restriction on the type of works.  
45. We would like to know if preregistered general users have to pay for access to digital versions 
of the material and how copyright holders are compensated.  
Response  
The copyright owner may claim a reasonable amount of compensation if the work is transmitted to 
the public. (Article 31, paragraph (5) of the Copyright Act as amended by the Act Partially 
Amendment the Copyright Act (Act No. 52 of 2021))  
Question  
46. We would  like to know what laws or measures are in place to prevent preregistered general WT/TPR/M/438/Add.1  
 
- 18 - 
 
users from making available to the public the digital files they receive.  
Response  
Based on article 31, paragraph (5) of the Copyright Act as amended by the Act Partially Amendment 
the Copyright Act (Act No. 52 of 2021) , the Agency for Cultural Affairs plans to specify by Order of 
the Ministry of Education, Culture, Sports, Science and Technology that library or similar facility 
must take technical measures such as copy protection and adding user information by electronic 
watermark when they transmit a library material to the users.  
47. We would like to know what laws or measures are in place to prevent competition with the legal 
e-book market.  
Response   
This provisio n does not apply if the action by library or similar facility would unreasonably prejudice 
the interests of the copyright owner in light of the public transmission of such works by the copyright 
owner, or a person authorized thereby, or, a pe rson in favor of whom the print rights set forth in 
Article 79 have been established or a person authorized  thereby to transmit that work to the 
public.(Article 31, paragraph (2) of the Copyright Act as amended by the Act Partially Amendment 
the Copyright Act (Act No. 5 2 of 2021))  
Page 113 -114, Para. 4.89  
In FY2020, the METI launched a subsidy programme that aimed at helping manufacturing firms to 
invest domestically in building production bases for critical products and materials. The targeted 
products and materials include those deemed to be largely produced overseas and demonstrate risks 
as a result of the supply chain disruption (Category A), and those considered essential for people's 
wellbeing, such as surgical masks, COVID -19 test kits, vaccination nee dles, and syringes (Category 
B). The METI later added two new categories. One is designed specifically for SMEs that plan to 
produce parts and materials needed to produce products susceptible to global supply chain 
disruptions; the other one aimed to stabi lize the supply of raw materials disrupted by the war in 
Ukraine. The maximum amount of subsidy for a qualified project for the SME -specific category was 
JPY 500 million; for other categories, the maximum amount was JPY 15 billion.  
 
Para. 4.90  
In June 2021 , the METI released an industrial strategy that stressed the significance of 
semiconductors as a foundation of a digital society and for national security. In order to secure the 
stable domestic production of semiconductors in Japan and incentivize such in vestments, on 1 March 
2022, the Government implemented a new legal instrument that provided grants to advanced chip 
manufacturers under certain conditions.  
 
Question  
48. Japan provides subsidies to " critical  products and materials" (including in cases where " those 
deemed to be largely produced overseas and demonstrate risks as a result of the supply chain 
disruption ") and to advanced chip manufacturers that meet certain conditions, and we would 
like to know how to ensure the consistency with WTO rules.  
Response  
There are no local content requirements nor any export contingencies to these subsidies.  
"Program for Promoting Investment in Japan to Strengthen Supply Chains" is designed to minimize 
the risk of disruptions to the supply of essential goods in the event of unanticipated crises, as the 
vulnerability of the Japanese supply chain has become apparent with the spread of the COVID -19 
infection.  
This program aims to support businesses' decisions to strengthen their supply chain by building new 
plants and introdu cing new facilities for these important products and materials in Japan.  
The program will be applied to the suppliers in a non -discriminatory manner, treating domestic and 
foreign businesses equally, and will be consistent with the WTO trade rules.  
With r espect to the subsidies to chip manufactures, the fund's aim is to support stable production 
and the supply of semiconductors, which will also be applied in a non -discriminatory manner, and 
will be consistent with the WTO rules.  WT/TPR/M/438/Add.1  
 
- 19 - 
 
  PART II: QUESTIONS REGARDING THE GOVERNMENT  REPORT  
 
Page 5, Para. 2.5  
Japan is strengthening cooperation with like -minded countries to ensure more diversified and stable 
supply sources including the dimension of economic security, while keeping in mind the maintenance 
and ex pansion of free and fair economic zones and consistency with existing international laws.  
 
Question  
49. Could Japan please elaborate on measures to promote supply chain diversification and the 
effectiveness of their implementation?  
Response  
The COVID -19 pandemic has disrupted the supply chain of goods essential for the welfare of the 
people and economic activities.  
The biggest reason for this was the high degree of concentration of their production bases (i.e., 
manufacturing plants).  
Based on th is experience, it is necessary to introduce production diversification in order to eliminate 
the risk of supply disruption of important materials in the event of an unexpected crisis.  
From this point of view, Japan will start the program for Strengthening  Overseas Supply Chains (a 
budget 35.2 billion yen) from 2020, and has so far made six public offerings and adopted a total of 
109 projects.  
The purpose of this project is to support various initiatives selected by companies in order to 
strengthen supply c hain resilience.  
Page 11, Para. 4.6  
In May 2022, the United States hosted a summit -level meeting on the launch of the Indo -Pacific 
Economic Framework (IPEF ), which Prime Minister Kishida, US President Joseph Biden and Indian 
Prime Minister Narendra Modi attended in person, while summit -level and cabinet -level 
representatives from 10 other countries attended online. Since its launch, Japan has been fully 
comm itted to intensive discussions among the 14 members, which resulted in their consent to 
issuing ministerial statements on trade, supply chains, clean economy, and fair economy. Japan 
welcomes the launch of the IPEF as a powerful demonstration of the United  States' commitment to 
the Indo -Pacific region and will continue to crystallize the initiative.  
 
Question  
50. Could Japan please provide an update on the progress of the IPEF and Japan's advocacy and 
contribution therein?  
Response  
The first round of negotiatio ns on the Indo -Pacific Economic Framework (IPEF) was held in December 
last year, based on the ministerial statement adopted at the ministerial meeting in September last 
year. Japan will work closely with regional partners to achieve concrete and early resu lts toward 
building regional economic order and ensuring prosperity in order to achieve sustainable and 
inclusive economic growth in the Indo -Pacific region.  
51. We would like to know how Japan views the supply chain arrangements in the initiative and the 
potential impact to the stability of global supply chains, and how to ensure that it does not 
result in discriminatory treatment of countries outside the initiative.  
Response  
Japan understands that the supply chain arrangements in the IPEF can improve transpar ency, 
diversity, security, and sustainability in our supply chains to make them more resilient and well -
integrated, and we will be committed to it along with other IPEF partners. Also, we understand that 
the IPEF is an inclusive framework that is open to r egional partners that share our goals, interests, 
and ambitions.  
52. Could Japan please elaborate on whether the Indo -Pacific Economic Framework will disrupt the WT/TPR/M/438/Add.1  
 
- 20 - 
 
current market -based international division of labour system in the Asia -Pacific region and 
affect ing RCEP, CPTPP and other cooperation mechanisms?  
Response  
IPEF is an economic framework for discussing future cooperation in four areas (trade, supply chains, 
clean economy, and fair economy), and it is not intended to disrupt the market -based internation al 
division of labour system or affect other cooperation mechanisms including RCEP and CPTPP. From 
the perspective of realizing a free and open Indo -Pacific region, we will continue our efforts to 
maintain and strengthen the desirable economic order in the  region.  
53. Has Japan assessed the impact of the Indo -Pacific Economic Framework on China -Japan 
economic and trade cooperation?  
Response  
The IPEF does not include market access such as tariff reduction or elimination. The IPEF is not 
intended to affect Japan -China economic and trade cooperation.  
Page 13, Para. 4.14  
In 2020, at the Japan -China Foreign Ministers' telephone talk held in July, the two ministers 
discussed bilateral economic relations including the issue of China's import restrictions on Japanese 
food products. As for economic dialogue between Japan and China, the Japan -China Economic 
Partnership consultations were held online in November 2020, and there was an extensive exchange 
of opinions on future issues and cooperation between Japan and China, i ncluding the current state 
of the economy in Japan and China, travel and tourism, medicine and healthcare, the environment 
and energy conservation, and agricultural trade, as well as on multilateral issues and cooperation, 
including development, financial cooperation and debt issues, and trade and investment -related 
issues at the WTO and RCEP.  
Question  
54. Please explain how Japan ensures a fair and competitive market environment for enterprises 
from WTO members to invest and trade in Japan. We would like to know whether Japan has 
any concrete measures that can be implemented to promote cooperation in areas of common 
interest and direction between China and Japan.  
Response  
Having experienced pandemics and heightened geopolitical tensions, we have reaffirmed the 
importance of a rules -based, free, fair, transparent and open multilateral trade regime. The WTO is 
at its core, and it is the Members themselves who can reform the WTO.  
Japan will work more actively to form an international economic order b ased on free and fair rules. 
As part of this, Japan will promote the conclusion of investment -related agreements, taking into 
account the perspective of sustainable investment, and aims to double direct investment in Japan 
from the current level to 80 tril lion JPY by 2030.  
At the Japan -China Summit Meeting in November 2022, the two leaders shared the view that 
mutually beneficial cooperation is possible in specific areas of economy and people to people 
exchanges of people, and agreed that they will encourag e cooperation in areas such as green 
economy including environment and energy conservation, as well as medical care, nursing care and 
healthcare.  
At the Japan -China Foreign Ministers' Telephone Talk on 2 February 2023, Foreign Minister Hayashi 
stressed the  importance of mutually beneficial cooperation in these areas, over which the leaders of 
the two countries shared their views at the last year's Japan -China Summit Meeting.  
Various business activities in these areas have already been developed between Japa n and China, 
and further cooperation is possible in the future in ways that will benefit both countries.  
As agreed at the last year's Japan -China summit meeting, Japan will encourage the exchanges 
between the two countries in the economic field, including in these specific areas, in an appropriate 
manner. At the same time, to that end, it is necessary for China to guarantee legitimate business WT/TPR/M/438/Add.1  
 
- 21 - 
 
  activities of Japanese companies by ensuring a transparent, predictable, and fair business 
environment, which Prime  Minister Kishida and Foreign Minister Hayashi have clearly pointed it out.  
Page 16, Para. 6.8  
In June 2018, the Intellectual Property Strategy Headquarters established "The Intellectual Property 
Strategy Vision" as a new and mid -to long -term vision until 2030. In this vision, Japan set out a 
"value design society" to be realized in the future, where a variety of values that go beyond economic 
value are subsumed, where various individualities fully demonstrate multifaceted abilities, make 
good use of Japane se characteristics, make new values, and gain empathy of the world. Japan will 
actively and creatively design the concrete systems to achieve the above -mentioned society.  
 
Question  
55. We would like to know how the Japanese government considers opportunities f or foreign 
investment in Japan when designing a specific system to achieve a "value design society".  
Response  
"Intellectual Property Strategy Vision (2018)" aims to make Japan better by using the tool of 
intellectual property, and does not consider foreign  investment individually.  
The Intellectual Property Strategy Vision set the target to become a "value design society" by 
thinking of the ideal society with the period of 2025 to 2030 in mind. Discussions in a layer different 
from the past were placed at th e core by examining specific intellectual properties that contribute to 
the objective by clarifying the objective instead of considering intellectual properties as tools.  
Question  
56. We would like to know whether the Japanese government will propose future ec onomic policies 
to promote the development of industries with local characteristics, and whether such policies 
are open to companies from all countries and regions.  
Response  
In terms of intellectual property policies, they have not been formulated specific ally in relation to 
specific regions.  
57. We would like to know what kinds of values are meant by "various" in this paragraph when it 
says that " a variety of values that go beyond economic value are subsumed" , and in what way 
the Japanese government expects to  achieve the incorporation of values, and what the specific 
meaning is. We would like the Japanese government to elaborate on this.  
Response  
In Japan, people often seek to be "normal" or "average" or are subject to peer pressure. But, a 
mechanism that gene rates diverse personalities and enables their co -existence is necessary to 
enable existence and active participation of various individuals that are capable of creating 
something "new." The individuals that are capable of creating something "new" is expres sed as 
"Various", which is non -average and non -ordinary.  
Question  
58. The Japanese government has been implementing the IP strategy for many years before 2018, 
and we would like to know whether the Japanese government has evaluated the effectiveness 
of the imp lementation of the IP strategy. Along with the implementation of the IP strategy, does 
the Japanese government consider that its innovation capacity has been enhanced in the last 
decade? And we would like to know if corresponding comparative data can be pr ovided for 
reference.  
Response  
Based on the "Intellectual Property Strategy Vision" formulated in 2013, Japan continues to grow.  
In addition, the implementation of intellectual property strategies has enhanced Japan's innovation 
capacity.  WT/TPR/M/438/Add.1  
 
- 22 - 
 
Page 16, Para. 6.9  
The Intellectual Property Strategy Headquarters also finalized "The Intellectual Property Strategic 
Program 2022" in June 2022. At the beginning stage of this Program, we organized the basic 
recognition of the current situation in Japan that shou ld be taken into account concerning IP 
strategies. In the future, important policy issues and measures in promoting IP strategies will be 
summarized in eight priority policies: : (1) Enhancing the IP ecosystem of start -ups and universities; 
(2) Strengtheni ng the investment and utilization promotion mechanism of IP and intangible assets; 
(3) Promoting the utilization of standard strategies; (4) Improving the data distribution and utilizing 
environment for the realization of a digital society; (5) Content str ategies in the digital age; (6)  
Enhancing the IP utilization in SMEs, regional (areas), and agricultural sciences; (7) Strengthening 
systems, operations, and human resource foundations that support the IP utilization; and (8) 
Restarting the Cool Japan ini tiative in anticipation of post -COVID. The steady implementation of 
policies based on this plan is required in the future in order to transform our society into an economic 
society where new players including individuals with a passion for new idea creatio n and innovation 
in Japan can fully utilize society's IP.  
 
Question  
59. Could Japan please elaborate on whether the interests of important trading partners, such as 
China, have been taken into account in the formulation of the "Eight Priority Policies" and the 
contents of " The Intellectual Property Strategic Program 2022" , and whether there are any 
specific targeted policies in this regard.  
Response  
This plan does not consider the benefits to individual countries.  
Question  
60. With regard to the pr iority policy of "e nhancing the IP ecosystem of start -ups and universities" , 
we would like to know if it includes foreign start -ups established in Japan.  
Response  
In the context of that policy, "start -ups" include not only companies that have been working on 
innovative businesses soon after their founding, commonly called as "start -ups", but also SMEs that 
are promoting innovative initiatives (see footnote 1 on p. 14 of the Intellectual Property Strategic 
Program 2022). Based on this, those companies workin g together with other parties including 
universities in the IP ecosystem would be widely included.  
(Reference)  
- Intellectual Property Strategic Program 2022 (provisional translation): 
https://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20221114_e.pdf  
Question  
61. With regard to the priority policy of "s trengthening the investment and utilization promotion 
mechanism of IP and intangible assets" , we would like to know what is the attitude of the 
Japanese government towards the foreign acquisition of Japanese start -ups and their 
intellectual property. Does the Japanese government have any restrictions on foreign 
acquisitions in terms of industry or technology?  
Response  
Japan compiled the "Guidelines for Disclosure and Governance on Intellectual Property & Intangible 
Assets Investment and Utilization Strategies" (The IP and Intangible Assets Governance Guidelines), 
in January 2022, that provide information on how c ompanie s should disclose their strategies for 
investments and utilization of intellectual property and intangible assets and establish governance 
thereof in order that they can be adequately evaluated by investors and financial institutions, aiming 
to faci litate voluntary disclosure by companies, following the revision of the "Corporate Governance 
Code" in June 2021. In this context, "companies" include not only listed ones but also the others 
including startups, and "investors" include both domestic and ov erseas ones without any 
discrimination on their residence. Japan believes that, as a general principle, it is desirable that 
mechanism where startups are adequately evaluated and funded for further investments in 
intellectual property and intangible assets  by both domestic and overseas investors is established.  WT/TPR/M/438/Add.1  
 
- 23 - 
 
  Under the Foreign Exchange and Foreign Trade Act, in principle, prior notification is required when 
a foreign investor's acquisition reach 1% or more of the shares of a listed Japanese company and 
more than one share of an unlisted company operating in designated sectors.  
(Reference)  
Formulation of the "Guidelines for Disclosure and Governance on Intellectual Property & Intangible 
Assets Investment and Utilization Strategies" (The IP & Intangible Asse ts Governance Guidelines) 
Ver. 1 (only the Japanese version is published as of this writing):  
https://www.kantei.go.jp/jp/singi/titeki2/tyousakai/tousi_kentokai/governance_guideline_v1.html  
Question  
62.  Regarding the "p romoting the utilization  of standard strategies" , we would like to know whether 
the Japanese government has identified any key industrial or technological areas; what role the 
Japanese government will play in promoting the use of standards strategies; and whether the 
Japanese gov ernment has dedicated resources to this end, especially when it comes to 
international standards.  
Response  
The Japanese government is providing policy support for promoting the use of standard strategy, 
but key technological areas are still under examinati on. 
63.  Regarding the "c ontent strategies in the digital age" , we would like to know how the Japanese 
government views the protection of intellectual property rights for digital works; whether there 
is a specific strategy for the protection of intellectual pr operty rights; and how the Japanese 
government views the protection of intellectual property rights for works done by artificial 
intelligence.  
Response  
・Taking appropriate measures to combat pirate copies constitutes an important element in efforts 
to build a creation ecosystem, as it enables creators and others employed in the content industry to 
receive remuneration via the consumption of authorized cont ent. As the digitalization of the contents 
is accelerating, addressing piracy in digital space is a issue for the government in order to ensure 
creators and content business operators enjoy the benefits of digitalization to the fullest.  
・If there is a cre ative contribution by AI operators in the production process of creating works, it is 
considered that the operators "used" AI as a "tool" to creatively express their thoughts or feelings. 
In such case it is recognized as the copyrighted  work and protected by copyright law.  
Question  
64. The paragraph refers to "i mproving the data distribution and utilizing environment for the 
realization of a digital society" , and please describe the principles and considerations on which 
improved data distribution is based.  
Response  
To eliminate stakeholder's concerns and anxieties (risks) such as data misappropriation and privacy 
infringement, we have formulated a guidance that shows the perspective and examination 
procedures that should be taken into account when building plat forms and data linkage 
infrastructures (March 2022).  
The examination procedures are as follows; (1) understand stakeholder's concerns and anxieties 
(risks), (2) determine a response policy according to the risk revel, (3) formulate and operate terms 
of use  under to the response policy, and (4) update rules agilely in response to newly identified 
issues.  
Page 20, Para. 6.28  
In June 2022, the Government revealed plans to indicate a roadmap regarding investment in green 
transformation on the scale of JPY 150 t rillion over the next decade under public -private 
partnerships, and according to the Plan, the Japanese Government will embody the vision for "Pro -
Growth Carbon Pricing", which aims to maximize economic growth and GHG emissions WT/TPR/M/438/Add.1  
 
- 24 - 
 
reductions/absorption at the  same time, and also consider raising funds through "GX Economy 
Transition Bonds (tentative name) backed by future financial resources".  
 
Question  
65. Please provide details of the roadmap regarding investment in green transformation  and 
considerations for set ting a vision of " Pro-Growth Carbon Pricing" . 
Response  
Japan has set a goal of reducing greenhouse gas emissions by 46% in 2030 and achieving carbon 
neutrality by 2050. In order to achieve both these international commitments and to strengthen 
industrial competitiveness and economic growth, we have formulated the ""Pro -Growth Carbon 
Pricing Concept"". Through upfront investment support by the government and the introduction of 
carbon pricing in the future, the government and private sector will work together to realize over 
150 trillion yen in GX investment over the next 10 years, and take other necessary actions.  
At the end of last year, the Japanese government announced its ""Basic Policy for the Realization of 
GX,"" which outlines policy issue s and the direction of action to resolve them, including the ""Growth -
Oriented Carbon Pricing Concept. After conducting public comments in January of this year, the 
Cabinet approved the policy on February 10, and submitted a bill for its concrete implement ation to 
the ordinary Diet session currently in session.  
Page 20 -22, Para. 6.29 -6.37 
Current situation and measures for radioactive materials in foods.  
 
Question:  
66. Could Japan provide accurate data on the discharge of nuclear effluent over the years, 
monitoring data on the relevant nuclear radioactive elements in the Fukushima area (sea area) 
of Japan, monitoring data and variation of the relevant nuclear radioactive elements in marine 
organisms in the Fukushima sea area of Japan, as well as the assess ment report on the 
environmental and biological safety of the discharge and effluent?  
Response  
The Government of Japan will never discharge "nuclear effluent" that exceeds regulatory standards 
into the sea. The water to be discharged is "ALPS treated water " that has been sufficiently purified 
until the concentration of radioactive materials other than tritium is below the regulatory standard, 
and that will be then further diluted. The concentration of tritium is also 1/40 of the regulatory 
standard and 1/7 of the WHO drinking water standard. Radioactive materials other than tritium will 
be less than 1/100 of the regulatory standard. The radiological environmental impact assessment 
was conducted in line with the international guidelines, taking into account t he effect of 
bioaccumulation and long -term accumulation. The result of the assessment shows that the impacts 
on humans and the environment would be minimal. The impact on humans is about one thousandth 
of the radiation dose received from a single dental x -ray. Please be fully aware that the term "nuclear 
effluent", which is used in your question, promotes a false understanding and fuels harmful rumors 
that water exceeding regulatory standards will be released and it causes adverse effects on humans 
and the environment. We would like you to refrain from using such factually incorrect expressions 
not based on the scientific evidence. There are two different types of water on the Fukushima Daiichi 
site, and these should not be confused. One is "contaminated wat er" generated on the site, and the 
other is "ALPS treated water" which has almost all radioactive materials removed except tritium. 
What Japan is planning to discharge into the sea is the "ALPS treated water" and not the 
"contaminated water". To avoid publ ic confusion, it is important to have an understanding of the 
terminology. The IAEA has also pointed out the distinction between these terms.  
In more detail, we will manage the annual discharge volume of tritium so it will not exceed 22 trillion 
Bq, which is equivalent to the target discharge management value for the Fukushima Daiichi Nuclear 
Power Station before the accident. While other countries also discharge tritium into the sea in 
compliance with their own domestic laws and regulations, the amount of tritium in the ALPS treated 
water is smaller than the amount of tritium discharged from many nuclear power plants and other 
facilities in other countries.  
Simulation of the diffusion of ALPS treated water discharged into the sea shows that the 
concentrati on of tritium is higher than that of seawater only within the area within 3km from the 
power plant. TEPCO will measure all water before dilution and ensures that the water to be WT/TPR/M/438/Add.1  
 
- 25 - 
 
  discharged into the sea meets regulatory standards before discharge. Discharge s into the sea will 
be stopped immediately in the event of any anomalies.  
The IAEA Task Force has been conducting not only a safety review but also corroboration of the 
monitoring carried out by TEPCO and the Japanese authorities. The IAEA Task Force is co mprised of 
experts from the IAEA Secretariat and internationally recognized experts from 11 countries including 
our neighbouring  countries appointed by the IAEA; Argentina, Australia, Canada, China, France, 
Marshall Islands, Republic of Korea, Russian Fede ration, United Kingdom, United States, and 
Vietnam. The IAEA's corroboration activities also include independent third -party laboratories to 
ensure an inclusive and transparent approach. Reports regarding corroboration activities will be 
issued by the IAEA  when data from the analysis of monitoring samples becomes available.  
The requested data is available at the following URL and will be updated as necessary.  
i. Monitoring data on the relevant radioactive materials in the Fukushima area (sea area).  
[URL] https://www.env.go.jp/water/shorisui.html  (Japanese only)  
ii. Monitoring data and variation of the relevant nuclear radioactive elements in marine organisms 
in the Fukushima sea area.  
[URL] https://www.env.go.jp/water/shorisui.html  (Japanese only)  
https://www.jfa.maff.go.jp/j/housyanou/kekka.html  (Japanese only)  
iii. Ass essment report on the environmental and biological safety of the discharge.  
[URL] https://www.tepco.co.jp/en/hd/newsroom/press/archives/2022/20221114_01.html  
[Refer ence]  
Integrated database of the environmental radioactivity and radiation in Japan (1957 -the present) 
Environmental Radioactivity and Radiation in Japan (In Japanese), https://www.kankyo -
hoshano.go.jp/data/database/  
Para. 6.29  
Shortly after the accident at the Tokyo Electric Power Co. (TEPCO)'s Fukushima Daiichi Nuclear 
Power Station (FDNPS) in March 2011, the Japanese national government and prefectural authorities 
have taken a comprehensive set of measures such as decontamination of the farmland and fruit 
trees, control over feeds and agricultural inputs and introduced a risk -based food monitoring 
scheme, respectively.  
 
Question  
67. In the absence of an effective solution t o the concerns of the international community, the 
Japanese side is bent on approving the plan to discharge nuclear -contaminated water into the 
sea. The potential harm to marine ecology, food safety and human health caused by the 
discharge of nuclear -conta minated water into the sea cannot be ignored. We would like to know 
how the Japanese side considers the impact of the discharge of nuclear -contaminated water on 
food safety.  
Response  
Again, the Government of Japan would like to stress that it will never di scharge "nuclear -
contaminated water" as explained in the answer to the previous question 66.  
The Government of Japan takes concerns of the international community seriously. For this very 
reason, it has been providing information and explanations on the handling of ALPS treated water 
to the international community in a transparent manner, and it w ill continue to do so before, during 
and after the discharge in order to demonstrate the safety of the discharge. Specifically, the 
Government of Japan has organized briefing sessions for diplomatic missions and others in Tokyo, 
and held explanatory sessio ns at international conferences including those organized by the IAEA. 
It also provides information on the websites of the ministries concerned. In addition, the Government 
of Japan has provided individual briefing sessions to countries and regions with pa rticular interests.  WT/TPR/M/438/Add.1  
 
- 26 - 
 
In the context of communication with China, the Government of Japan provided a 49 -page response 
to an open letter with 36 questions from China, jointly with Russia received in June 2022. Japan's 
response was sent directly to China and Russia, and posted on the IAEA website and made available 
to the international community. We are aware that feedback from China and Russia on Japan's 
response was uploaded on the IAEA website in November 2022. This feedback was circulated and 
communicated to the IAEA before it was delivered directly to Japan that clearly indicates China's 
intention giving priority to politicizing this topic rather than communicating from a scientific point of 
view. We would like to further communicate with China on the said  feedback. We have informed 
China that we are willing to provide scientific and professional explanations on a bilateral basis 
regarding the discharge of ALPS treated water into the sea but we have not had any response from 
China. China has not made any re sponse to Japan's counter -questions to its open letter, nor had it 
expressed any interest in Japan's offer made to China in bilateral exchanges. This casts doubts on 
whether China has any real interest in scientific discussions.  
The discharge of the ALPS treated water into the sea will not adversely affect agricultural, marine, 
or other food products. It is not considered harmful in relation to the food chain. The Government 
of Japan has been taking measures, strictly abiding by relevant international law and giving due 
consideration to international practice, fully taking into account the impact on the environment as 
well as the human health and safety of people, and will continue to do so. We consider that the 
safety of human health and the environment wi ll be ensured, as long as it meets the regulatory 
standards. As for tritium that cannot be purified by ALPS, dilution will ensure that the concentration 
of tritium is below 1,500 Becquerel/liter, which is lower than the regulatory standard. Tritium is a 
radioactive isotope of hydrogen, and is contained in the human body as HTO by replacing the H in 
the water molecule H2O, in addition to being found in nature and in tap water. Just like H2O, HTO 
enters the body through drinking water in daily life, and like H2O, it is eliminated from the body 
through metabolism without being accumulated or concentrated. Similarly, tritium is not 
concentrated in specific organisms or organs under the food chain. In addition, in light of the planned 
discharge of the ALPS treate d water, the "Comprehensive Radiation Monitoring Plan" was enhanced 
in March 2022 based on the dispersion simulation of the discharge, and monitoring of the 
environment and organisms in the sea area has been conducted since last fiscal year.  
[Reference] R adiological and environmental impact report on the discharge of the ALPS treated 
water to the sea by TEPCO (pp 218~)  
https://www.tepco.co.jp/en/hd/newsroom/pres s/archives/2022/pdf/221114e0101.pdf  
Para. 6.31  
According to the UNSCEAR 2020/2021 Report, in the first year after the accident, about 2.5%of the 
measured samples of marine fish caught off Fukushima Prefecture were found with radioactive 
cesium concentratio ns exceeding the guideline level (of 1,000 Bq/kg). However, in the second year, 
the number reduced to 0.3% and in the third year, only one sample was found and it further reduced 
by around 0.01%.  
 
Question:  
68. The current conclusions in the Report are based o n data from before the Fukushima nuclear -
contaminated water was discharged into the sea, and the Japanese side is currently accelerating 
the construction of the discharge facilities. We would like to know how to assess the impact on 
the report's data and c onclusions once the contaminated water is discharged into the sea.  
Response  
Once again, the Government of Japan would like to point out that the expression "nuclear -
contaminated water" in the question is not based on scientific fact. It should be recognize d that the 
use of such expressions has deepened the suffering of the local people.  
The data published in the UNSCEAR 2020/2021 report are scientific analysis and conclusions based 
on the facts from the past. Therefore, the planned discharge of ALPS treated  water will not affect 
the data and conclusions of the said UNSCEAR report in any manner, much less retroactively modify 
it. 
Page 20, Para. 6.29  
Shortly after the accident at the Tokyo Electric Power Co. (TEPCO)'s Fukushima Daiichi Nuclear 
Power Station (F DNPS) in March 2011, the Japanese national government and prefectural authorities 
have taken a comprehensive set of measures such as decontamination of the farmland and fruit WT/TPR/M/438/Add.1  
 
- 27 - 
 
  trees, control over feeds and agricultural inputs and introduced a risk -based foo d monitoring 
scheme, respectively.  
 
Question  
69. Could Japan please indicate the types of agricultural products from radioactively contaminated 
areas and their destinations?  
Response  
Currently in Japan, the monitoring of food products is conducted in 17 prefectures to confirm 
compliance with the Japanese maximum levels (JMLs) for radionuclides in food products, targeting 
radioactive cesium among the radionuclides that have relatively long half -lives and require 
consideration of long -term effects. Based on  domestic regulations, each municipality formulates 
monitoring plans and conducts monitoring. If the monitoring results show that the JMLs are 
exceeded, the entire lot is discarded. If a regional spread of exceeding the JMLs is recognized, 
shipment restric tion measures are taken for that region based on the government's instructions. As 
a result, food products originating from the restricted areas will not be distributed. In case the 
following monitoring confirms that the levels do not exceed the JMLs at a certain level and are 
consistently below the JMLs, the shipment restrictions will be lifted. Under this framework, no food 
products exceeding the JMLs will be distributed in Japan's domestic market, nor will they be 
exported.  
[Reference] Current list of s hipping and intake restriction in Japan:  
https://www.mhlw.go.jp/content/001015295.pdf  (Japanese only)  
Question  
70. Could Japan please provide relevant environmental reports?  
Response  
The Ministry of Health, Labour and Welfare (MHLW) compiles and publishes the results of weekly 
tests conducted by prefectural and other authorities on radioactive cesium concentrations in food 
products as the URL below.  
https://www.mhlw.go.jp/english/topics/2011eq/index_food_radioactive.html  
[Other references]  
Ministry of Agriculture, Forestry and Fisheries, "The archive of decontamination" (April 2020, in 
Japanese), 
https://warp.ndl.go.jp/info:ndljp/pid/11482615/www.maff.go.jp/j/kanbo/joho/saigai/jyosen/index.
html 
Page 21, Para. 6.31  
According to the UNSCEAR 2 020/2021 Report, in the first year after the accident, about 2.5% of the 
measured samples of marine fish caught off Fukushima Prefecture were found with radioactive 
cesium concentrations exceeding the guideline level (of 1,000 Bq/kg). However, in the secon d year, 
the number reduced to 0.3% and in the third year, only one sample was found and it further reduced 
by around 0.01%.  
 
Question  
71. Could Japan please provide information on the detection of radioactive elements other than 
caesium and the current concent ration of radioactive elements that have passed or are 
approaching their half -life? 
Response  
Individual standard value is not established for radioactive materials other than cesium because it 
takes time to measure these materials. Instead, the standard va lue for cesium, which is easy to 
measure and of which the ratio is highest, is set by the calculation where effects of all radioactive 
materials, including strontium 90 and others with a half -life of more than one year (cesium 134, 
cesium 137, strontium 90 , plutonium, and ruthenium 106), are taken into consideration. In other 
words, the standard value for cesium is set by calculating that the total dose from above -mentioned 
radioactive materials including cesium does not exceed 1mSv as long as the standard value for 
radioactive cesium is observed. Therefore, currently it is not considered necessary to measure 
radioactive materials other than cesium.  WT/TPR/M/438/Add.1  
 
- 28 - 
 
[Reference]  
Nabeshi et al. (2022) Estimation of dietary intake of 90Sr in Japan after the Fukushima Daiichi 
Nuclear Power Plant accident: market basket study, 2013 –2018. Food Additives & Contaminants: 
Part A 39:1974 -1986: https://doi.org/10.1080/19440049.2022.2129099  
Question  
72. Could Japan please provide a third party test report?  
Response  
The third -party test report you requested is exactly what is included in the UNSCEAR report. 
https://www.unscear.org/unscear/en/pub lications/2020_2021_1.html  
UNSCEAR aggregates relevant data submitted by UN member states, international organizations, 
non-governmental organizations, etc., and more than 1,600 pieces of peer -reviewed scientific 
literature among member states, provides ex pert data analysis, studies relevant scientific topics, 
and then makes scientific assessments. These authoritative references are compiled by UNSCEAR 
and published after approval by the UN General Assembly. This report serves as the scientific basis 
for na tional and international recommendations and standards for the protection of people and the 
environment.  
[Reference]  
Monitoring results of radionuclides in Japanese food performed by importing countries/regions;  
• Chinese Taipei  
http://www.fda.gov.tw/TC/siteList.aspx?sid=2356  
• EU 
https://webgate.ec.europa.eu/rasff -window/screen/search  
• Hong Kong, Chin a 
https://www.cfs.gov.hk/sc_chi/programme/programme_rafs/japan_nuclear_incidents.html  
• Republic of Korea  
https://www.mfds.go.kr/brd/m_100/list.do  
Page 21, Para. 6.36  
The biannual market basket surveys, which have been conducted since September 2011 at plural 
study sites including Fukushima, show that the estimated annual effective dose from radioactive 
cesium in food has been digits smaller than the intervention exempt ion level of 1mSv/year and is 
currently only detected at micro levels.  
 
Question  
73. Could Japan please clarify the scientific validity of the surveys?  
Response  
The Ministry of Health, Labour and Welfare (MHLW) compiles and publishes the results of weekly 
tests conducted by prefectural and other authorities on radioactive cesium concentrations in food 
products as the URL below.  
https://www.mhlw.go.jp/stf/kinkyu/0000205529_00006.html   
Nabeshi et al. (2020) Continuous Estimation of Annual Committed Effective Dose of Radioactive 
Cesium by Market Basket Study in Japan from 2013 to 2019 after Fukushima Daiichi Nuclear Power 
Plant Accident. Food Safety 8:97 -114 
https://doi.org/10.14252/foodsafetyfscj.D -20-00017  WT/TPR/M/438/Add.1  
 
- 29 - 
 
  PART III: OTHER QUESTIONS  
 
Question  
74.  Could the Japanese side please explain the legal basis and decision -making process for adding 
foreign entities to the "End -user List" for export control, and describe the factual evidence for 
the above -mentioned two listing measures accusing Chinese entit ies of "suspected development 
of weapons of mass destruction". We would like to know whether the entities concerned have 
the right to appeal, clarify and apply for removal from the list and what the specific legal grounds 
and procedures are.  
Response  
For the purpose of enhancing the effectiveness of the catch -all control, the End User List (EUL) 
provides exporters based on FEFTA with referential information on foreign entities for which concern 
cannot be eliminated regarding involvement in activities s uch as the development of WMDs or other 
items.  
Foreign entities for which concern cannot be eliminated regarding involvement in activities such as 
the development of WMDs or procurement of WMD -related items are listed by the EUL provides 
exporters with re ferential information on foreign entities for which concern cannot be eliminated 
based on various information.  
Entities are listed in the EUL based on various relevant information. We welcome information about 
the listed entities, but the listing of all en tities is decided by the Government of Japan, taking into 
account various relevant information.  
Question  
75. Please clarify whether the above measures constitute a violation of the General Most Favoured 
Nation (MFN) Treatment , as they result in discriminatory treatment of listed enterprises 
compared to other enterprises. At the same time, the above measures are clearly not permitted 
under WTO rules such as tariffs, internal taxes or other measures, could Japan please clarify 
whether the measures in question con stitute quantitative restrictions prohibited by Article 11 of 
the GATT?  
Response  
For the purpose of enhancing the effectiveness of the catch -all control, the End User List (EUL) 
provides exporters based on FEFTA with referential information on foreign enti ties for which concern 
cannot be eliminated regarding involvement in activities such as the development of WMDs or other 
items.  
It is not an embargo list, and Japanese exporters can export goods to EUL -listed entities as long as 
it is apparent that the goo ds will not be used for WMD purposes.  
Thus, the  EUL itself does not constitute quantitative restrictions, including export prohibition 
prohibited by Article 11 of the GATT. Also, it does not provide preferential treatment to one country 
over another and th us does not violate the MFN obligation . 
Therefore, the points indicated in question 75 are not applicable.  
76.  Could Japan please describe its policy on regulatory, trade and tax for e -cigarettes?  
Response  
Electronic Nicotine Delivery Systems （ENDS） are classi fied as medicinal products and are regulated 
under Pharmaceuticals and Medical Devices Act (PMD Act).  
To date, no ENDS have been approved under PMD Act.  
Question  
77. We would like to know how the Japanese Copyright Law regulates the webcasting of pirated 
works. Which kind of acts is webcasting defined as in Article 2 of the Copyright Act? Suppose 
an "Internet TV station" webcasts a film on a predetermined schedule with out permission (non -
interactive transmission), what exclusive rights of the film copyright holder are infringed by this 
act? And which of the rights in Part III (Articles 21 to 28) does this specifically fall under?  WT/TPR/M/438/Add.1  
 
- 30 - 
 
Response  
Under the Japanese Copyright L aw, "broadcasting" (Article 2, paragraph (1) is defined as 
transmission that is transmitted simultaneously over the airwaves and delivered the content 
automatically, item (viii)), and "automatic public transmission" (Article 2, paragraph (1), item (ix) -
4) is defined as transmission that is delivered the content over an internet connection when the 
receiver access. Therefore, webcasting falls under the latter category. In conclusion, the example in 
your question constitutes an infringement of the right to tr ansmit to the public (Article 23, paragraph 
(1)). 
Question  
78. If a user lends or rents to another user the key to a computer program or the user 
name/password to a database that he or she has legally obtained, does this act constitute an 
unlawful circumventio n of access control measures under Article 113 (6) and (7) of the Japanese 
Copyright Law?  
Response  
We refrain from responding to this question, as it is to be determined in light of the specific case.  WT/TPR/M/438/Add.1  
 
- 31 - 
 
  3  PHILIPPINES  
PART I: QUESTIONS REGARDING THE SECRETARIAT  REPORT  
II. TRADE AND INVESTMENT REGIMES  
Para 2.10 (Page 27)  
"Japan grants at least MFN treatment to all WTO Members with exception to the Russian 
Federation and a few other countries and territories. MFN treatment to the Russian Federation 
was suspended on 21 April 2022 following the start of the war in Ukraine. At  present, other 
countries or territories to which treatment less favourable than MFN treatment is applied are 
Equatorial Guinea, Eritrea, Lebanon, the Democratic People's Republic of Korea, South Sudan, 
and Timor -Leste. The withdrawal of MFN treatment to t he Russian Federation was accompanied 
by various sanctions, both related to exports and imports (Sections 3.1.6 and 3.2.3)."  
 
Question  
1. What is the effect to Japan's economy following its withdrawal of MFN treatment to the 
Russian Federation?  
 
Response  
Since the withdrawal of MFN status of Russia is one of the measures Japan has taken in response 
to Russia's aggression against Ukraine, we wish to refrain from commenting on your question.  
 
Para 2.17 (Page 31)  
Japan participates in several regional trade agre ements (Table 2.3). It has RTAs in force with  
Australia, Brunei Darussalam, Chile, the European Union, India, Indonesia, Malaysia, Mexico,  
Mongolia, Peru, the Philippines, Singapore, Switzerland, Thailand, the United Kingdom, Viet Nam, 
ASEAN member econom ies, and participants in the Comprehensive and Progressive Agreement 
for Trans -Pacific Partnership (CPTPP).  
 
Question  
2. What has been the contribution of the CPTPP  on the Japanese economy? Please specify 
the gains and benefits of Japan's participation in the CPTPP.  
 
Response  
With the entry into force of the CPTPP, there have been - in addition to tariff rates reductions - 
various improvements in business and trade environments, such as the improvements of market 
access (including that of investment and services), as well as more transparent investment rules 
and strengthened intellectual property rules. As a result of these, the conditions and opportunities 
for enter prises, including SMEs, to expand their business overseas have been greatly improved.  
 
Para 2.22 (Page 32)  
Imports under Japan's GSP scheme have sharply fallen during the past years, most notably due 
to the graduation of important former beneficiaries such  as Brazil, China, Malaysia, Mexico, and 
Thailand in 2019. Around 0.6% of total imports in 2021 entered under GSP benefits from 
developing countries and LDCs. In 2020 and 2021, Bangladesh, Cambodia, and Myanmar were 
the main beneficiaries of the Scheme.  
 
Question:  
3. What are the other reasons for the low GSP utilization scheme? How does Japan help the 
LDCs and other beneficiaries to maximize the benefits of the GSP scheme?  
 
Response  
1. What are the other reasons for the low GSP utilization scheme?  
We recogniz e that the secretariat's report doesn't mention the low utilization of GSP scheme. It 
mentions the import value under GSP scheme has fallen because of graduating by major 
beneficiaries. The other reason Japan considered that: some GSP beneficiaries have co ncluded 
EPA with Japan, and it is possible that EPA tariff rates are being used.  
 
2. How does Japan help the LDCs and other beneficiaries to maximize the benefits of the GSP 
scheme?  WT/TPR/M/438/Add.1  
 
- 32 - 
 
Japan hasn't taken such specific measures.  
III. TRADE POLICIES AND PRACTICES BY MEASURE  
Para 3.153 (Page 75)  
Open tendering, selective tendering, and limited (single) tendering remain the main procurement 
methods. Among the different procurement methods, open tendering is the basic procedure, and 
is used for most GPA -covered procurement by the central government entities (Table 3.14). 
Limited tendering constitutes the second -most-used procurement method in terms of number of 
contracts and procurement value (Table 3.8). The conditions and thresholds for selective 
tendering  and limited tendering by the central government entities are stipulated in the Cabinet 
Order on Budgets, the Settlement of Accounts, and Accounting. For sub -central government 
entities, the conditions and thresholds for selective tendering and limited ten dering are stipulated 
in the Ordinance for Enforcement of the Local Autonomy Law of 1947.  
 
Question  
4. How does Japan differentiate the circumstances when the procuring entity could use these 
different procurement methods, and how do these methods help Japan obtain the best 
possible purchase?  
 
Response  
Japanese domestic laws and regulations stipulate respectively under what circumstances 
procuring entities may use different procurement methods (open tendering, selective tendering, 
or limited tendering). In principle, procurement by the central government entities and sub -central 
government entities are subject to open tendering (Article 29 -3 (1) of Public Accounting Act, 
Article 234 (1) and (2) of the Local Autonomy Law). A contract that need not be put out to open 
tendering due to the small number of persons who would participate in the tender as a result of 
the nature or purpose of the contract, or a contract that is determined would be disadvantageous 
to put out to open tendering, may be put  out to selective tendering (Article 29 -3 (3) of Public 
Accounting Act, Article 167 of the Order for Enforcement of Local Autonomy Law). A contract that 
cannot be put out to open tendering and/or selective tendering due to urgent circumstances, or a 
contra ct that it is determined would be disadvantageous to put out to open tendering and/or 
selective tendering, may use limited tendering (Article 29 -3 (4) of Public Accounting Act, Article 
167-2 (1) of the Order for Enforcement of Local Autonomy Law). In accor dance with these 
Japanese domestic laws and regulations, procuring entities conclude contracts with suppliers who 
offer the most advantageous price and other conditions.  
 
Para 3.157 (Page 77)  
Japan maintains a government procurement policy to promote environmental protection. During 
the review period, two revisions of the Basic Policy on Promoting Green Procurement (the 
implementation rules concerning the Green Procurement Act) were notified to the WTO Committee 
on Government Procurement. The i mplementation rules concerning the Green Contract Act, 
namely the Basic Policy for the Promotion of Contracts considering Reduction of Emissions of 
Greenhouse Gases and Others by Government Entities and Independent Administrative Agencies, 
etc., were also revised in February 2022. Major changes include adding the 2050 Carbon Neutrality 
Declaration and the 2030 Greenhouse Gas Emission Reduction Target (reduced by 46% from its 
2013 level), updating the status of climate change and global warming issues, and r evising the 
government action plan.  
 
Question  
5. Could Japan share an assessment of the outcomes of the implementing the rules on 
sustainable government procurement?  
 
Response  
The Ministry of the Environment prepares and publishes an annual report on the effe ctiveness of 
the implementation of the Green Purchasing Law and the Law on Contracts for Environmental 
Consideration. Please refer to the following URL : 
https://www.env.go.jp/content/000058943.pdf  
https://www.env.go.jp/kanbo/chotatsu/post_12.html  
(Japanese only ) 
 
Para 3.159 (Page 78)  
Complaints filed by suppliers are reviewed by the Government Procurement Review Board (GPRB). 
During the review period, a single complaint was brought against the tendering process conducted WT/TPR/M/438/Add.1  
 
- 33 - 
 
  by the National Institute of Information and Communications Technology and was subsequently 
rejected by the GPRB on 24 August 2021. Sub -central government entities ma intain their own 
procurement review mechanisms. According to the State Redress Act (Act No. 125 of 1947), a 
supplier can file a lawsuit against the Government to seek compensation for loss that a public 
officer in charge of a tendering procedure has, in th e course of their duties, unlawfully caused to 
the supplier intentionally or negligently.  
 
Question  
6. Could Japan discuss the grounds or circumstances on when the procuring entity may file 
its complaint with the GPRB, including the procedures, challenges? How are these 
challenges addressed?  
 
Response  
Complaints are reviewed in accordance with the Review Pr ocedure for Complaints Concerning 
Government Procurement and the procuring entity has the opportunity to file and explain its 
position with the GPRB during the review process of the board pursuant to 5(8) of the Review 
Procedure.  
 
The Review Procedure for Complaints Concerning Government Procurement can be viewed at:  
https://www5.cao.go.jp/access/english/pdf/reviewprocedure.pdf   
 
The overview of the review procedure can be viewed at:  
https://www5.cao.go.jp/access/english/chans_main_e.html   
https://www5.cao.go.jp/access/english/pdf/fig2 -e.pdf 
IV. TRADE POLICIES BY SECTOR  
Para 4.2 (Page 100)  
Japan has a deficit in trade in agricultural goods, with imports of USD 74.8 billion and exports of 
USD 9.2 billion in 2021. In the same year, the main imported agricultural products included maize 
(corn) (HS 1005); meat of swine, fresh, chilled or frozen (HS 0203); and prepared or preserved 
meat, meat offal or blood, other than of sausages (HS 1602), while the main agricultural exports 
were food preparations n.e.s. (HS 2106); ethyl alcohol, undenatured, of an alcoholic strength by 
volume of less than 805 v olume; spirits, liqueurs and other spirituous beverages (HS 2208); and 
sauces and preparations therefore; mixed condiments and seasonings (HS 2103).  
 
Para 4.4 (Page 100)  
The Food, Agriculture and Rural Areas Basic Plan sets out Japan's agricultural policy in accordance 
with the Basic Law on Food, Agriculture and Rural Areas. The current Plan, adopted in March 2020, 
stipulates the objectives of promoting industrial and regional policies to increase self -sufficiency 
and establish food security. The Plan sets self-sufficiency targets for FY2030 of 45% on a calorie 
basis and 75% on a production value basis, as well as of 34% for feed, and a food domestic 
production ratio of 53% on a calorie basis and 79% on a production value basis in FY2030.1 In 
FY2021, self -sufficiency on a calorie basis was 38%.2 The Plan also sets an export target of JPY 
5 trillion by 2030. Agricultural policies are reviewed annually in the Annual Report/White Papers 
on Food, Agriculture and Rural Areas in Japan, issued by the Ministry of Agr iculture, Forestry and 
Fisheries (MAFF); the latest Report was issued in May 2022.  
 
Para 4.11 (Page 101)  
The simple average tariff on agricultural products (WTO definition) increased slightly to 18.0% in 
FY2022 from 17.9% in FY2019, due to changes in the u nit prices leading to increases in ad valorem 
equivalents (AVEs) of non -ad valorem tariffs. The simple average MFN tariff on agricultural 
products (18.0%) is higher than that on non -agricultural products (3.4%). The maximum tariff 
(AVE, out -of-quota) is 42 8.8% on certain beans (HS 0713.39.227). Almost 20% (19.9%) of 
agricultural tariff lines are non -ad valorem . 
 
Question  
7. Noting that Japan is a net agri -food importer, are there any recent national or regional 
initiatives on the relaxation of non -tariff measu res? What agri -food commodities are 
covered by such initiatives, if any?  
 
 
 
 WT/TPR/M/438/Add.1  
 
- 34 - 
 
Response  
Japan has been taking necessary non -tariff measures on agricultural and fishery products to 
achieve objectives of protecting human, animal or plant life or health and others in accordance 
with the WTO agreements.  
 
Para 4.16 (Page 101)  
Since the previous Review, there have been no changes in the simultaneous buy and sell  
(SBS) system, under which an importer and a domestic user make a joint bid to the MAFF, 
submitting  the government purchase price from the importer and the government sale price on 
the domestic  Japanese market (Table A4.4).  
 
 
 
Question  
8. The Philippines also imposes tariff quotas on a number of agricultural products such as 
rice, meat of swine (pork), poultry products, fish and fish products, among others. In 
some of these commodities, allocation is applied with the national competent authority 
and authorized importers bid based on prices. While the Philippine bidding system is based 
on the offe r price of importers, Japan has a unique way of including domestic users in the 
bidding process. Can Japan share more information of how the simultaneous buy and sell 
(SBS) system works?  
 
Response  
Regarding rice and wheat, the SBS system is operated to mee t specific needs of them. Under the 
SBS system, a domestic user and an importer jointly bid for the tender held by MAFF. MAFF 
purchases imported rice and wheat from the importer and sells it to the user simultaneously based 
on the result of tender.  
 
Para 4 .20 (Page 102)  
During the review period, the Government launched a Strategy for Sustainable Food System,  
MeaDRI (Measures for Achievement of Decarbonization and Resilience with Innovation) in May 
2021, and the Act on Sustainable Food System, MeaDRI entered  into force in July 2022. Under 
the Act, Japan aims to transform its agricultural production system to respond to climate change 
and decreasing biological diversity by reducing environmental loads including through the reduced 
use of fossil fuels and chemi cal pesticide/fertilizer as well as through the use of smart technology. 
Japan will also put emphasis on R&D, disseminate smart agriculture including through the 
facilitation of new technology introduction and infrastructure development in rural areas, and  
increase capacity  building for farmers and other stakeholders in the food supply chain. The 
authorities consider that, in order to achieve the MeaDRI's key performance indicators, it is 
essential to introduce promising new technologies, such as an integra ted pest management, soil 
data management, and resource recovery from waste.  
 
Para 4.27 (Page 103)  
According to the authorities, in 2022, as fertilizer prices soared, the Government supported  
farmers that introduced measures to reduce 20% of the use of chemical fertilizers with reference 
to a similar measure implemented in 2008.  
 
Question  
9. What are the government's initiatives in promoting organic fertilizers and organic crop 
protection products? Can Japan also discuss market access requirements for these  
products, if say, imported from the Philippines?  
 
 
 
WT/TPR/M/438/Add.1  
 
- 35 - 
 
  Response  
Japan is encouraging producers to use organic fertilizer through demonstration of organic farming. 
Japan aims at developing new pesticides and other pest control technologies that may replace th e 
uses of conventional chemical pesticides following the Strategy for Sustainable Food Systems 
(MeaDRI) published in May 2021.  
 
Every agricultural pesticide, be it organic or not, that is to be imported to Japan needs to be 
registered by the Ministry of Ag riculture, Forestry and Fisheries of Japan in accordance with the 
Agricultural Chemicals Regulation Act. An English translation of the act is available at: 
https://www.japaneselawtr anslation.go.jp/ja/laws/view/3507  
 
Para 4.22 (Page 102)  
Since Japan's previous Review, the Agricultural Insurance Act, 2018, the Income Insurance 
Program and its insurance premium rate (1.08%), the Agricultural Mutual Aid System (AMAS), 
and the Vegetable Price Stabilization Program have remained unchanged.  
 
Para 4.26 (Page 103)  
In FY2020, a wheat, barley, and soybean profitability and productivity improvement project was 
introduced with a view to improving productivity of wheat, barley, and soybe an farming. This 
project aims at facilitating information -sharing with and the provision of research outcomes to 
producers by (i) introducing farming technologies and aggregating farmlands for, inter alia, the 
improvement of labour productivity; (ii) intro ducing machines necessary for production; and (iii) 
establishing a stable supply system including through proper utilization of storage facilities. The 
budget for this purpose was JPY 6 billion in FY2020 and JPY 3.35 billion in FY2021. The subsidy of 
this project is first allocated to prefectural governments from the MAFF, and then prefectural 
governments provide the allocated subsidies to each recipient group of farmers in the prefecture 
concerned.  
 
Para 4.28 (Page 103)  
There exist various funds concerning  agriculture, forestry, and fisheries (Table 4.1). In addition, 
the MAFF has under its responsibility a public -private investment fund (Agriculture, forestry and 
fisheries Fund corporation for Innovation, Value -chain, and Expansion Japan (A -FIVE)).  
 
Para 4 .29 (Page 105)  
The most recent notification from Japan to the WTO Committee on Agriculture concerning 
domestic support covers FY2020.10 According to the notification, 78% of all support for 
agriculture (support notified under the Green Box, Blue Box, and Amber Box (including de 
minimis)) is under the Green Box, and about 22% under the Amber Box (including de minimis).  
 
Para 4.31 (Page 105)  
According to the OECD, Japan gradually reduced its support to agriculture during the past  
10 years; however, the l evel of support plateaued more recently.11 In terms of a share of gross 
farm receipts, the PSE remains more than twice the OECD average. The total support estimate to 
agriculture was about 0.9% of Japan's GDP in 2019 -21. Due mainly to border measures, mark et 
price support remains the main element of producer support for rice, pork, and milk. As a result, 
average producer prices remain higher than world reference prices, by around 60%.  
 
Para 4.34 -4.35 (Page 106)  
4.34. There has been no change to the Act on P ayment of Grants to Farmers for Purpose of 
Stabilization of Farming Management (Act No. 88, 2006).13 Under the Act, core farmers producing 
wheat, barley, soybeans, sugar beet, starch potatoes, buckwheat, and rapeseed are eligible for 
payments with a view t o narrowing the gap between the prices of domestic products and imports 
(Table A4.6).  
 
4.35. There has been no change to the Act on Price Adjustment of Sugar and Starch (Act No. 109, 
1965). The latest amendment entered into force in December 2018.  
 
Para 4. 41 (Page 106)  
Support for domestic pork producers through the Hog Growers Business Stabilization Measure 
(also known as Pig Marukin), which covers 90% of the cost gap (i.e. gap between the standard 
cost of production and the standard sales price), has rema ined unchanged. There was no payment WT/TPR/M/438/Add.1  
 
- 36 - 
 
of Pig Marukin in FY2020 and FY2021 because the standard sales price was not lower than the 
standard cost of production.  
 
Para 4.43 (Page 107)  
There has been no change to the Feed Price Stabilization Programme, which op erates to help to 
ease the influence of sudden surges in compound feed prices upon farmers.  
 
Question  
10. Can Japan provide more information on the conditions and mechanisms on the grant of 
the producers' support or price support or competitiveness enhancement  funding, 
specifically for livestock and poultry, sugarcane and fish and fish products?  
 
Response  
Basic mechanisms of support measures on livestock, poultry, sugarcane and fish and fish products 
are: 
 
Livestock:  
- Beef Cattle Feeding Operation Stabilization Scheme  
- Hog Raising Operation Stabilization Scheme  
Safety -net program that compensates a part of production costs that exceed revenue of a 
producer. A part of the payment is paid out of producers' reserve fund.  
 
Poultry:  
- Egg Producer Man agement Stabilization Fund  
Safety -net fund that compensates producers for declines in egg prices and supports producers' 
efforts to improve supply and demand situation by keeping their poultry houses vacant for an 
extended period in the event of a further  decline.  
 
Sugarcane:  
- Subsidy for Sweetening Resource Crops  
Subsidy for sugar cane producers in specific areas to support for stable production of the 
sweetening resource crop.  
- Sugar Cane Production Stabilization Fund  
Safety -net fund that supports  recovery from damages caused by natural disasters (typhoons, 
droughts, plant pests and diseases). Subsidies are provided for recovery measures when the 
damage exceeds trigger levels.  
- Program for measures strengthening systems of producing areas for swe etening resource crops  
Program that supports efforts to improve the productivity of sugar cane production, such as soil 
improvement and establishment of labor -saving production systems, which are conducted based 
on action plans of the relevant region.  
 
Fish and fish products:  
Compensation for income loss or fuel and feed price increase. Fisherman and the government 
contribute to funds. Engagement with fisheries management is one of the conditions to be eligible 
for the payment.  
 
Para 4.48 (Page 107)  
Japan's latest overall strategy is defined by the revised Basic Plan for Fisheries, which was  
issued on 25 March 2022. The aim of the strategy remains to enhance fisheries' sustainable  
resource management, make fisheries a growing industry through increased pr oductivity, and  
maintain fisheries communities and increase their revenues. The revised plan also aims to achieve  
a set of self -sufficiency targets by 2032. Actions and programmes to that effect include promoting  
international cooperation regarding resource management; expansion of domestic production of 
fish and fish products that are highly dependent on imports (e.g. salmon) and consumption of  
domestically produced fish and fish products; helping potential exporters through export  
promoti on initiatives for selected products; improving the environment for the acceptance of 
foreign workers  in the sector; facilitating the use of eco -labelling; and utilizing measures to 
discourage illegal,  unreported, and unregulated fishing.  
 
Para 4.51 (Page 108) 
According to the authorities, Japan is in the ratification process for the WTO Agreement on  
Fisheries Subsidies.  WT/TPR/M/438/Add.1  
 
- 37 - 
 
  Para 4.56 (Page 108)  
Japan is a party to the Agreement on Port State Measures to Prevent, Deter and Eliminate  
Illegal, Unreported and Unregulated Fishing.  
 
Question  
11. What are the processes being undertaken by Japan in its ratification of the WTO Fisheries 
Subsidies Agreement? Can you share the challenges that the government is facing in the 
process and how does Japan addres s these challenges?  
 
Response  
Japan is currently working hard for its domestic process for the early acceptance of the Agreement 
and once the process is completed, Japan will deposit its instrument of acceptance with the WTO.  
 
12. Can Japan provide more infor mation on successful international cooperation initiatives it 
implemented/pursued with other countries in the areas of sustainable fish resource 
management and prevention of IUU fishing. Is/are there specific funding opportunities 
which may be tapped by co untries interested to partner with Japan on said areas?  
 
Response  
Japan offers assistance to developing countries through ODA globally, such as;  
・Provision of monitoring vessels  
・Capacity building programs  
 
Fisheries Agency implements the following international cooperation through the trust fund to 
SEAFDEC  
・Support for collection of biological information for sustainable resource management  
・Capacity building through training to prevent IUU fishing  
 
Further, through FAO, Japan supports global actions that contribute to combatting IUU, including;  
(i) Capacity building for developing countries to improve their fisheries data collection capacity, 
including data collection for the establishment of remote monitoring and enforcement systems for 
fishing vessels; and  
(ii) Support for Regional Fisheries Management Organizations (RFMOs) to share good practices, 
including measures to combat IUU fishing.  
 
As for WTO's Agreement on Fisheries Subsidies, Japan has co ntributed 760,000 CHF to the newly 
established Fisheries Resource Management Fund, supporting developing members.  
 
Para 4.62 (Page 109)  
In order to secure a stable supply of metal mineral resources, Japan has been conducting maritime 
research on manganese nodule, seafloor hydrothermal deposits, and cobalt rich crust.  
 
Question  
13. Aside from conducting research on mineral resources/deposits in their own country, does 
Japan have a policy/initiative/activity for exploration in foreign areas like the Philippines? 
In addition to this, in order to secure a stable supply of metal mineral resources, does 
Japan have any cooperation with other countries?  
 
Response  
In order to secure a stable supply of mineral resources, the Japanese government strives to 
strengthen rela tions with overseas resource producing countries. Specifically, in cooperation with 
the JOGMEC, taking into account the needs of companies and other factors, the Japanese 
government conducts wide -area surveys on the possibility of the existence of mineral resources 
overseas, holds various seminars on the investment environment and new investment 
opportunities in resource producing countries, and sends public -private joint missions to the 
countries.  
 
Para 4.65 (Page 110)  
Where carbon dioxide emissions are te chnically unavoidable, the 2021 SEP states that the 
Government will utilize negative emission technologies including Direct Air Carbon Capture and 
Storage, Bio -Energy with Carbon Capture and Storage, and forest sink measures.  
 WT/TPR/M/438/Add.1  
 
- 38 - 
 
Question  
14. As indicated in the 2021 Strategic Energy Plan (SEP), the Government will utilize negative 
emission technologies including Direct Air Carbon Capture and Storage, Bio -Energy with 
Carbon Capture and Storage, and forest sink measures to avoid/lessen CO2 emissions. 
Has the Govern ment of Japan developed a policy framework for these measures? If so, 
what are the salient features of these policies?  
 
Response  
In aiming for carbon neutrality in 2050, it is important to utilize negative emission technologies 
that capture and fix CO2 from the atmosphere to offset emissions from areas where CO2 emissions 
are ultimately unavoidable.  
 
To this end, the Moonshot R&D project is working to develop highly efficient DAC technologies, 
artificially accelerate natural processes, and support the de velopment of negative emission 
technologies such as accelerated weathering of rocks and enhanced fi xation of CO3 (blue carbon) 
by seaweeds, etc.  
 
We are considering the development of legislation necessary for the commercialization of DACCS 
and BECCS.  
 
In addition, as a forest sink measure, we are working to create young forests that absorb CO2 at 
a high rate by utilizing fast -growing elite trees and promoting reforestation. In addition, we are 
working on carbon storage by expanding the use of wood in b uildings and other structures.  
 
Para 4.66 (Page 110)  
In May 2022, based on the 2021 SEP, the Diet passed an amendment to several pieces of energy -
related legislation (2022 amendment). The 2022 amendment to the Act on Rationalizing Energy 
Use (Energy Conservat ion Act), which is to be implemented in April 2023, expands the scope of 
"energy" within the meaning of the Act from fossil energies to all types of energy. This is intended 
to allow the Act and its relevant regulations to address the rational use of all t ypes of energy, 
including renewable and non -fossil. The 2022 amendment to the Act also requires that businesses 
increase the proportion of non -fossil energies used in their operations. To this effect, certain 
businesses meeting the scale threshold must sub mit to the METI a mid - to long -term plan 
regarding their future transition from fossil to non -fossil energies and periodical reports on the 
latest usage of non -fossil energies.  
 
Question  
15. The 2022 amendment to the Act on Rationalizing Energy Use (Energy Con servation Act) 
will require businesses to increase the non -fossil energies used in their operation. In fact, 
certain businesses are required to submit to METI their mid - to long -term plan regarding 
their transition to non -fossil energies. What are the ince ntives for these businesses as 
they complied and implement their energy transition plans?  
 
Response  
The Energy Conservation Law requires large consumers to submit medium - and long -term plans 
and periodic reports on the conversion to non -fossil energy, and the government provides 
guidance and advice to business operators as necessary. If the status of non -fossil energy 
conversion is found to be significantly insufficient, the government will make recommendations 
and announcements after considering the level of relevant technologies and the supply of non -
fossil energy, etc. Through these measures, the government encourages business operators to 
comply.  
 
Para 4.84 (Page 112)  
With regard to the pricing and support scheme, in April 2022, the Act on Special Measur es 
Concerning Promotion of Use of Renewable Energy Electricity (a revision of the Act on Special 
Measures Concerning Procurement of Renewable Energy Electricity by Electricity Utilities) entered 
into force. The new Act introduced a feed -in premium (FIP) sy stem, with a view to encouraging 
renewable energy producers' independence from the feed -in tariff (FIT) system while securing the 
investment incentives. Whereas the FIT system guarantees qualified producers that the generated 
renewable energy be purchased at fixed prices over the long term, the FIP system offers market -
driven purchase prices that are composed of a fixed premium (subsidy) and market prices. The 
Government describes the FIP system as a transition measure until the renewable energy sector WT/TPR/M/438/Add.1  
 
- 39 - 
 
  can be placed under the same competition environment with other energy sectors. The authorities 
state that the FIP system, which offers a market -driven purchase price composed of fixed 
premiums (subsidy) and market prices, started in April 2022.  
 
Question  
16. The Feed -in-Premium (FIP) system is introduced as a special measure concerning the 
promotion of the use of Renewable Energy electricity. The FIP is placed as a transition 
measure until the renewable energy sector can be placed under the same compe titive 
environment as other energy sectors. How many years does an FIP typically last? How 
much does the amount differ from the previous Feed -in-Tariff (FIT)?  
 
Response  
The FIP system is designed to encourage the integration of renewable energy into the el ectricity 
market, while ensuring investment incentives.  
 In addition, the purchase period under the FIT program and the grant period under the FIP 
program are equal. Similarly, the purchase price under the FIT program and the base price, which 
is the incom e level under the FIP program, are calculated based on the same concept.  
 On the other hand, the actual revenue under the FIP program varies depending on the market 
price and other factors, so it is not possible to make a general statement regarding the di fference 
in the amounts.  
 
Para 4.94 (Page 117)  
Japan's financial services sector is relatively open. There are no foreign equity restrictions. Criteria 
to obtain a licence are the same for foreign and domestic companies. There are no nationality or 
residen cy requirements for members of the board of directors. No banking services are reserved 
for domestic suppliers. Commercial presence is required for lending and deposit -taking activities.  
 
Question  
17. Japan's financial services are relatively open and has no f oreign equity requirements. Can 
Japan share its policies, rules and regulations being implemented by the government to 
prevent/mitigate fraud and possible money laundering?  
 
Response  
Following the publication of the Fourth Mutual Evaluation Report on Japan  by the Financial Action 
Task Force (FATF) in August 2021, the 17 ministries/ agencies established "Inter -Ministerial 
Council for Anti -Money Laundering (AML), Countering the Financing of Terrorism (CFT), and 
Countering Proliferation Financing (CPF) Policy"  and published three -year "National AML/CFT/CPF 
Action Plan" and adopted "the National AML/CFT/CPF Strategic Policy" in May 2022.  
In line with the Plan and the Policy, the public and private sectors will cooperate to enhance AML 
/CFT/CFP measures.  
In Japan , the "Act on Prevention of Transfer of Criminal Proceeds" has been enacted in 2007.  
The Act obliges "specified business operators," including financial institutions, to conduct customer 
due diligence at the time of transaction, to preserve transaction rec ords, and to report suspicious 
transactions to the FIU.  
Based on the Act on Prevention of Transfer of Criminal Proceeds, the Financial Services Agency 
(FSA) established the "Guidelines on Anti -Money Laundering and Combating the Financing of 
Terrorism (AML / CFT)" in 2018 to show risk -based AML / CFT measures to financial institutions 
are expected to take.  
After several years of publishing the Guidelines, in order to enhance the AML/CFT measures of 
financial institutions in Japan, the JFSA has set a deadline  (by March 2024) for requesting all 
financial institutions to develop systems to satisfy all of the requirements in the Guidelines, and 
has conducts a number of the AML/CFT onsite -inspections and off -site monitoring.  
 
Para 4.99 (Page 117 -118) 
Japan's legislation on foreign investment also applies to the financial services sector  
(Section 2.4). As a consequence, foreign investors in Japan's financial services sector are also 
subject to the newly tightened screening and notification requirements . However, exemptions 
may apply when foreign financial institutions satisfy certain requirements, namely: (i) the foreign 
investor and closely related persons will not serve on the board of the target company as directors 
or audit and supervisory board mem bers; (ii) the foreign investor will not make proposals at 
shareholders' meetings, whether directly or through third parties, to dispose of material 
businesses in designated industries; and (iii) the foreign investor will not access sensitive WT/TPR/M/438/Add.1  
 
- 40 - 
 
confidential technologies that are related to the target company's designated business. Also, 
foreign investors may benefit from a registration moratorium, of up to five years, if they are 
registered as investment operators with a foreign authority, with a proven track  record in this 
country. On 22 November 2021, an entry system with simplified procedures was established for 
offshore fund managers with a proven track record in specified foreign jurisdictions and for 
managers with qualified overseas clients.  
 
Question  
18. Please share the current screening and notification requirements for foreign investors in 
Japan's financial services sector. What was Japan's experience in the implementation of 
these new/tightened measures?  
Response  
Foreign investors are required  to submit prior notification when the investment reaches 1% or 
more of the shares of a listed company operating in a designated industry, which also applies to 
foreign investors in the financial services sector.  
 
Para 4.101 (Page 118)  
In May 2021, the Gov ernment amended the Banking Act and the Financial Instruments and 
Exchange Act with a view to strengthening and stabilizing the financial services sector. Most 
importantly, the amendments widened the scope of services that a parent bank may provide. The 
newly added services relate to digitalization and regional revitalization, allowing the sale of IT 
systems, and the provision of data analysis services, marketing and advertisement services, and 
management consultation services.  
 
Para 4.106 (Page 118)  
In May  2021, an amendment to the Payment Services Act entered into force, removing the 
previous cap of JPY 1 million on transfer services by non -bank institutions. This amendment also 
set up multiple licence and registration levels that depend on the size and sc ope of operations. 
Overall, the amendment expands the scope of fund transfer services in Japan and provides new 
entrants greater flexibility and choices.  
 
Question  
19. What is the existing regulatory setup for operators of payments system and providers of 
paym ents and funds transfer services? Please provide further information on the 
institution (e.g., central bank, authority, government agency) mandated to operationalize 
the Payment Services Act and whether the amendments to the Act also enhanced the 
powers of  the authorities overseeing non -bank institutions that perform transfer services 
as well as the licenses/authorities that institutions offering or participating in payment 
systems are required to secure from the regulator.  
 
Response  
Operators of interbank fund clearing systems are required to obtain a "Clearing Institutions" 
license under Article 64 of the Payment Services Act.  
In addition, if a non -financial institution is to provide funds transfer services, it is required to be 
registered as a "fund trans fer service provider" under Article 37 of the same Act.  
The PSA was revised in 2020 to classify fund transfer operations into three types (Type 1 to Type 
3) and to apply regulations according to the amount and risk of remittance. At the same time, 
regulati ons on the preservation of user funds were revised from the viewpoint of further improving 
user protection and reducing the cost of operators to comply with regulations.  
Article 64 of the Payment Services Act does not apply to the Bank of Japan and banks, etc. 
 
Question  
20. What is the current landscape of Japan's digital payment systems, especially its retail 
payment systems, and what have been the country's strategies in promoting payments 
digitalization?  
 
Response  
Japan is working on improving the environment for digital payments. Recently, regarding the 
payment infrastructure, relevant public and private institutions finalized the preparation for 
allowing funds transfer service providers access to the Zengin Data T elecommunication System 
(the "Zengin System"), which had originally permitted access only from banks, and the Zenginnet 
(operator of the Zengin System) put the change in place in October 2022. The FSA, as the WT/TPR/M/438/Add.1  
 
- 41 - 
 
  supervisory authority, took necessary measures to make sure the safety of payment is maintained 
in the coming expansion. In addition, "Cotra," a project led by the private sector to build a 
separate payment system for low  cost processing of frequent and small -amount payments is also 
ongoing , and the system was launched on 11 October 2022.  
Question  
21. Please provide information on Japan's pertinent strategies and actions on how it effectively 
managed the cross -border supply of financial services, particularly financial data 
processing and electronic payme nt? 
 
Response  
Japan does not make Mode 1 commitment for "All payment and money transmission services" (as 
specified in the GATS Financial Annex (viii)) and requires service providers to establish a 
commercial presence (as a Mode 3 service providers) in fun d transfer business, as well as to take 
the relevant license/registration under the Payment Services Act.  
Funds Transfer Service Providers that provide overseas remittances are required to take measures 
for AML / CFT in particular. In addition, "Type I Fun ds Transfer Service," which was established 
under the amended Payment Services Act effective in 2021, is expected to provide fund transfers 
with purchase of high -priced goods and services by individuals and the settlement between 
companies, including overs eas remittance. Therefore, given the magnitude of the impact on the 
economy caused by their default and the importance of AML/CFT, the FSA requires "Type I Funds 
Transfer Service" to take higher level of standards for financial soundness and AML/CFT measur es 
than other types of Funds Transfer Service Providers.  
With regard to "financial data processing," it is what Japan made Mode 1 commitment based on 
the GATS Financial Services Understanding, as well as the provision and transfer of financial 
information and related software by suppliers of other financial services in Annex (as specified in 
the GATS Financial Annex (xv)).  
(However, please note that the requirements specified in the revised Personal Information 
Protection Act applies concerning the cross -border transfer of personal information.)  
 
Para 4.111 (Page 120)  
During the review period, Japan experienced a further major fall in mobile phone fees. The 
Government is actively pursuing a policy aimed at lowering the costs linked to the use of mobile 
phone s. In October 2020, the MIC released an action plan for fair competition in the mobile phone 
market, comprising three pillars: (i) achievement of simple and reasonable fees and services; (ii) 
promotion of fair competition between operators; and (iii) facil itation of portability between 
operators. In response, major mobile phone service providers unveiled new service plans that 
sharply lowered mobile phone fees. For example, the latest survey released by the MIC in May 
2022 shows that the monthly mobile fee (4G network, 5 GB plan) for a smartphone in Tokyo 
dropped by 47.5% from 2019 (JPY 6,250) to 2021 (JPY 2,972). The same survey also shows that 
various types of mobile phone fees in Tokyo as of 2021 are comparatively lower than other major 
cities abroad. It would appear that the COVID -19 pandemic, coupled with new pricing plans for 
broadband that reduced prices drastically, resulted in a strong increase in mobile data usage.  
 
Question  
22. Please provide more information on the Action Plan of the Ministry of Inter nal Affairs and 
Communication (MIC) on the fair competition in the mobile phone market which lowered 
mobile phone fees.  
 
Response  
The following specific actions were implemented.  
(1) Steady enforcement of Article 27 -3 of the Telecommunications Business Act and detection of 
violations in order to completely separate communications charges and terminal device charges.  
(2) Validating interconnection and wholesale charges of major MNOs to promote fair competition 
between MNOs and MVNOs.  
(3) Reducing obstacles in the use of Mobile Number Portability and prohibiting SIM locking in 
principle in order to facilitate transfer between carriers.  
 
The Action Plan for Creating a Fair Competitive Environment for the Mobile Market is available  at 
the following URL.  
(The published material is in Japanese only.)  
URL: https://www.soumu.go.jp/main_content/000713711.pdf  
 WT/TPR/M/438/Add.1  
 
- 42 - 
 
Para 4.113 (Page 120)  
The Act on the Protection of Personal Information was amended in June 2020 and entered into 
force in April 2022. The amended Act establishes, inter alia, obligations borne by operators that 
handle personal information and that transfer personal data to a third party outside Japan. Und er 
the Act, the operators must obtain consent from the data subjects for the transfer of data abroad. 
They are obliged to provide information on the country to which data are transferred, the personal 
information protection system in the destination countr y, and details of protective measures taken 
by receiving operators. Operators are also required to ensure that the receiving operators manage 
the transferred data in compliance with relevant regulations. To enforce these obligations, the 
Personal Informati on Protection Commission (PIPC) has the authority to issue orders to foreign 
and domestic companies and charge criminal penalties for failures to comply with such orders. 
Since it is difficult to enforce such regulations outside Japan, the PIPC is authoriz ed to collaborate 
with foreign regulators for the purpose of enforcing the Privacy Act. The Act reinforces the 
operators' obligations of report and notification in case of data breaches. The PIPC has published 
guidelines for the implementation of the Act.  
 
Question  
23. Please provide a link or a copy of the English translation of the Guidelines in Handling 
Personal Data and Transfer Personal Data to a Third Party outside Japan, for reference.  
 
Response  
The links to the Guidelines (including Foreign Third Party  Provision Edition) of the Act on the 
Protection of Personal Information in Japanese are as follows:  
https://www.ppc.go.jp/files/pdf/220908_guidelines01.pdf  
https://www.ppc.go.jp/files/pdf/211029_guidelines02.pdf  
 
Kindly note that the Guidelines will be partially revised based on the amended Act on the 
Protection of Personal Information that will take full effect on  1 April 2023. For your reference, 
the links to the Guideline are as follows:  
https://www.ppc.go.jp/files/pdf/230401_guidelines01.pdf  
https://www.ppc.go.jp/files/pdf/220908_guidelines02.pdf   
 
Please also refer to the following:  
https://www.ppc.go.jp/en/legal/  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
1 TRADE AND ECONOMIC ENVIRONMENT  
Para 1.1 (Page 3)  
In 2020, the Japanese economy declined rapidly in an extremely severe situation due to the 
COVID -19 pandemic. The private consumption and business investment have been the hardest 
hit by the COVID -19 pandemic. The recovery of exports has also been sluggish because of the 
supply -side constraints on semiconductors and automobile parts and the slow down of the Chinese 
economy.  
 
Question  
24. Given that Japan is affected by the slowdown of the Chinese economy, please share 
Japan's plans to adopt mitigation plans/strategies to make its economy less dependent 
on China?  
 
Response  
Japan has not adopted any pa rticular mitigation plans or measures to reduce its economic 
dependence on specific countries and regions facing economic slowdown.  
 
Para 1.3 (Page 4)  
The amount of outward FDI stocks increased from JPY 204.6 trillion (38.1% of GDP) in 2020 to 
JPY 228.8 tr illion (42.3% of GDP) in 2021. The amount of inward FDI stocks increased from JPY 
40.2 trillion (7.5% of GDP) in 2020 to JPY 40.5 trillion (7.5% of GDP) in 2021.  
 
Question  
25. Both the U.S. and the euro area have been raising policy rates sharply to contain inflation 
and there is a possibility that global financial and capital markets will further tighten 
through adjustments in asset prices and foreign exchange rate and capital outflows from WT/TPR/M/438/Add.1  
 
- 43 - 
 
  emerging economies. What are the possible strategies/policy reforms to consider under 
these global developments and financial conditions?  
 
Response  
The Government of Japan published the "Action plan for improvement of investment environment 
through promoting the conclusion of investment -related agreements" in May 2016, and the 
"Action plan for improvement of investment environment through promoting the conclusion of 
investment -related agreements (Review of results and future policies)" in Marc h 2021. Based on 
these documents, the Japanese government is actively working on the conclusion of investment -
related agreements to ensure appropriate protection of Japanese investors overseas, to improve 
the investment environment across domestic and fore ign markets, and to promote overseas 
expansion of Japanese companies and direct investment in Japan. As of January 2023, Japan has 
signed 55 investment -related ag reements and they cover 80 countries and regions. As for inward 
FDI polices, so far we have be en discussing considering changes in financial conditions and the 
geopolitical environment - please refer to English -translated version of "Interim Report " compile d 
last December from the following link:  
http://www.invest -japan.go.jp/documents/pdf/chukanseili_working_group_en.pdf  
2 MULTILATERAL INITIATIVES  
Para 3.8 (Page 7)  
Japan jointly released in June 2020 at t he Ministerial meeting of the Ottawa Group, a small group 
of like -minded nations promoting WTO reforms, the "Statement of the Ottawa Group: Focusing 
Action on COVID -19". In the statement, the principle that trade -related measures in connection 
with COVID -19 should be "targeted, proportionate, transparent, temporary, and consistent with 
WTO rules" was reaffirmed and agreements were also reached in such areas as medical supplies 
and e -commerce. The Ottawa Group Ministerial meeting was also held in November an d Japan 
actively engaged in "Trade and Health Initiatives" to strengthen global supply chains and facilitate 
the flow of essential medicines and medical supplies, including vaccines, amid the COVID -19 
pandemic and contributed to discussions about the imple mentation of trade -facilitating measures 
in the areas of customs and services, impediment of export restrictions, temporary removal or 
reduction of tariffs on essential medical goods, and improvement of transparency overall.  
 
Question  
26. What are the actions taken by the Japanese Government to realize the Statement of the 
Ottawa Group?  
 
Response  
Japan has not implemented any emergency trade measure, including export restrictions, on 
essential goods and services to tackle COVID -19. With regard to trade facilitation measures, Japan 
Customs takes such measures as to contribute to facilitation of the flow of essential medicines 
and medical supplies to tackle the COVID -19, in addition to the full implementation of the TFA. 
For the adoption of "Ministerial De claration on the WTO response to the Covid -19 Pandemic and 
Preparation for future Pandemics" at the MC12, Japan actively participated in the discussions and 
tried to reflect the elements included in the Statement of the Ottawa Group and other as much as 
possible with other Members of the Ottawa Group and other co -sponsors.  
 
Para 3.14 (Page 8)  
…In 2016, there were about 3.6 million MSMEs, which accounted for 99.7% of all companies in 
Japan, and the percentage of total employment generated by MSMEs was 68.8%.  In addition, the 
contribution of MSMEs to GDP is 52.9% (added value basis, in 2015). Thus, MSMEs account for a 
large part of Japan's economy.  
 
Question  
27. What are the main policies and strategies of Japan in terms of integrating MSMEs into the 
economy? Plea se identify the challenges in implementing these policies . 
 
Response  
In order to overcome the current high prices and grow business, the Small and Medium Enterprise 
Agency will first make every effort to create an environment in which small and medium -sized 
businesses can receive adequate compensation by making every effort to implement price pass -
on measures. In addition, by encouraging positive investment in productivity improvement, such 
as the introduction of new equipment and research and development, we will encourage the WT/TPR/M/438/Add.1  
 
- 44 - 
 
challenge of self -improvement to cope with changes in the business environment, including the 
need to respond to green (the climate and environment), and digitalization.  
 
6 JAPAN'S DOMESTIC POLICIES  
Para 6.6 (Page 16)  
Under the Act on the Establishment of the Digital Agency, the Digital Agency officially started 
business in September 2021. Each ministry, agency, and local government in Japan has been 
promoting digitalization with separate responsibility in the past but now the Di gital Agency has 
strong powers of comprehensive coordination, such as the power to make recommendations to 
other ministries and agencies.  
 
Question  
28. What are the roles, authorities/powers and responsibilities of the Digital Agency relative 
to improving the nation's digital economy, cross -border e -commerce, and the mechanisms 
that support online economic transactions, such as the payment systems?  
 
Response  
The Digital Agency, as a command post, is responsible for the prompt and prioritised execution 
of admini strative affairs related to the formation of a digital society.  
For this purpose, when necessary, the Digital Agency will make comprehensive coordination to 
unify the various measures for the formation of a digital society implemented by each ministry 
and agency, and will make recommendations, etc. to the heads of the  ministries and agencies 
that are implementing the various measures.  
 
Para 6.23 (Page 19)  
… Amid the declining workforce and aging population in Japan, the Japanese Government 
amended the Act on Stabilization of Employment of Elderly Persons, which came into effect in  
April 2021 and has since given an obligation to employers to make their best  efforts to secure 
stable employment opportunities for workers aged between 65 and 70.  
 
Question  
29. Aside from the above -cited amended Act, what are other concrete policies enacted by the 
government to address the declining workforce?  
 
Response  
As measures against aging society and declining working -age population, we make better working 
environment so that people, especially women and elderly people, join the labour market. In 
terms of support for women, we are addressing on making environment in w hich it is easy for 
women who are caring for children or elderly family members to work and providing environment 
where it is easy to take leave and improve childcare services. As for the elderly, we give them a 
support for early re -employment and various job opportunities, as well as amended the Act on 
Stabilization of Employment of Elderly Persons.  
 
6.8 Climate change and environmental sustainability (Page 20)  
6.9 Current situation and measures for radioactive materials in foods (Page 20 -22) 
(Please refer  to the Government Report pages 20 -22) 
 
Question  
30. As the two paragraphs discuss policies on GHG and radioactive in food, how could these 
policy directions affect exports of hazardous waste to Japan for final, treatment and 
disposal from the Philippines and trade in general?  
 
Response  
Japan takes its efforts to achieve net -zero emissions while taking considerations on its 
commitments and obligations under various international agreements, including the relevant WTO 
agreements.  
PART III: OTHER QUESTIONS  
Question  
31. Could Japan expound on the criteria it uses (if any), particularly non -price factors such as 
the life cycle costing analysis, in the award of contracts to ensure the government's best 
possible purchase of goods and services?  
 WT/TPR/M/438/Add.1  
 
- 45 - 
 
   
  Response  
(to be submitted ) 
 
Question  
32. Could Japan explain how it determines government procurements practices which 
undermine competition, particularly those involving conflict of interest or beneficial 
ownership, the corresponding penalties imposed, and ho w it addresses these issues to 
ensure that government procurement practices adhere to principles like transparency, 
accountability, and integrity?  
 
Response  
(to be submitted ) 
 
Question  
33. What is Japan's policy/measure to ensure that the use of genetic resour ces sourced from 
other country/ies for commercial purposes in Japan is compliant to the Nagoya Protocol 
on Access and Benefit Sharing of Genetic Resources and Associated Traditional 
Knowledge?  
 
Response  
(to be submitted ) 
 
Question  
34. What are the updates with  regard to Japan's Agricultural Policy reform during the 
assessment period? What are the changes in terms of its level of support to agriculture, 
particularly on the Producer Support Estimate (PSE) in terms of share to gross farms 
receipts? What is the Tot al Support Estimate (TSE) as a percentage share to agriculture? 
Is Market Price Support (MPS) still the main element of PSE? What products are covered 
by border measures?  
 
Response  
(to be submitted ) 
 
Question  
35. The Forest and Forestry Basic Acts direct Japan's Forestry Agency (FA) to update its Forest 
and Forestry Basic Plan every five years. FA published the current Basic Plan in May 2016. 
On 26 April 2021, FA released the draft 2021 Basic Plan and the associated draft National 
Forest Plan for public co mments. What are the updates on the Basic Plan regarding its 
finalization? What are the main features of the plan in terms of improvements to forest 
management to support Japan's goal of achieving net zero greenhouse gas emission by 
2050?  
 
Response  
(to be submitted ) WT/TPR/M/438/Add.1  
 
- 46 - 
 
4  THAILAND  
 Document 
Symbol  Questions  
1. WT/TPR/S/438  
Para 5. Page 8 
and Para 1.2.4 
Page 17  
and 
WT/TPR/G/438  
Para 6.7  
Page 19  
 
 5. With a view to addressing its demographic challenges, Japan has 
undertaken various reforms to increase labour supply, productivity, 
and wages over the recent years. These labour market reforms have 
successfully raised employment, more than offsetting agein g's impact 
on the size of the labour force. A pension system reform undertaken 
in 2021 expanded the coverage of the system by including more part -
time workers. Other structural reforms aim at increasing Japan's 
productivity, notably by accelerating digital ization, expanding 
investment, and increasing R&D expenditure.  
1.2.4 Structural reforms and privatization  
1.14. Since 2013, key structural reforms have included (i) stabilizing 
the size of the labour force by boosting the participation of women 
and older p eople; (ii) enhancing Japan's integration into the world 
economy through trade agreements; and (iii) improving the business 
climate by upgrading corporate governance, enhancing labour 
flexibility and mobility, promoting venture capital investment, and 
improving policies for small and medium -sized enterprises.  
1.15. With a view to addressing its demographic challenges, Japan 
has undertaken various reforms to increase labour supply, 
productivity, and wages over the recent years. These labour market 
reforms have successfully raised employment, more than offsetting 
ageing's impact on the size of the labour force.11 A pension system 
reform undertaken in 2021 expanded the coverage of the system by 
including more part -time workers. Other structural reform s aim at 
increasing Japan's productivity, notably by accelerating digitalization, 
expanding investment, and increasing R&D expenditure. It has been 
noted, however, that productivity growth in the business sector 
remains sluggish, particularly in business s ervices and smaller 
firms.12 
6.7 Labour market reform and women's economic participation  
6.23. Amid the declining workforce and aging population in Japan, the 
Japanese Government amended the Act on Stabilization of 
Employment of Elderly Persons, which came into effect in April 2021 
and has since given an obligation to employers to make their best 
efforts to secure stable employment opportunities for workers aged 
between 65 and 70.  
6.24. The amended Act requires employers make efforts to take 
various mea sures such as: (i) raising the retirement age up to 70; (ii) 
introducing a continued employment system until the age of 70; and  
(iii) abolishing a mandatory retirement system. If employers do not 
prefer to take any one of these three options, employers ca n take 
other measures after having sufficient discussions between staff and 
management, such as: (iv) introducing an outsourcing agreement 
with elderly workers until they reach the age of 70; (v) introducing a 
social contribution system for elderly workers  to be able to 
continuously engage in social contribution projects carried out, either 
by (a) employers themselves or by (b) organizations that employers 
entrust or provide funds for, until elderly workers reach the age of 70. 
With regard to employees aged  up to 65, employers are obliged to 
ensure stable employment opportunities as before.  
Question  
According to the report by Japan on the topic 6.7 Labour market 
reform and women's economic participation in the paragraph 6.23 and 
6.24 (page 19), and the repor t by the Secretariat on the Summary 5 
(page 8) and the topic 1.2.4 Structural reforms and privatization (page 
17), would the measures to promote employment of elderly persons, 
enabling workers to work until the aged of 7 0 years old, give any WT/TPR/M/438/Add.1  
 
- 47 - 
 
   Document 
Symbol  Questions  
advantages on their pensions? If so, please kindly explain in detail 
how the measures would benefit them . 
 
Response  
Employees are insured by Employees' Pension Insurance until age 70.  
Due to measures to secure working opportunities until age 70, 
enrollment in Employees'  Pension Insurance and paying contributions 
from age 65 to 70 will increase the pension amount  of Employees' 
Pension Insurance.  
2. WT/TPR/S/438  
Para 1.6  
Page 16 
 1.6. Unemployment  has remained  at low levels,  reflecting  
demographic  developments  and an increasingly  tight labour  market.  
Despite  the labour  market  disruptions  caused  by the pandemic,  
average  annual  unemployment  rates never  exceeded  2.8%  during  the 
review  period  (with a monthly  peak of 3.1%  in October  2021),  
partly  thanks  to government -funded  employment  retention  
schemes.5 The long-term unemployment  rate remained  particularly  
low and stood  at 0.8%  in August  2022.  Furthermore,  despite  the 
headwinds  created  by an ageing  and shrinking  population,  the level 
of employment  had been rising  as elderly  individuals  remained  in 
work longer  and more women  participated  in the labour  force,  both 
developments  resulting  from earlier  labour  market reforms.  
 
Question  
What are the government -funded employment retention schemes which 
have contributed to low unemployment during the COVID -19 pandemic? 
Please provide more details.  
3. WT/TPR/S/438  
Para 2 .2  
Page 25 
 2.2. Japan's overall economic policy agenda is centred on sustainable 
and inclusive growth. Policy objectives remain in line with the overall 
strategy of combined fiscal expansion, monetary easing, and 
structural reforms, but with a stronger emphasis on income 
distribution under the current administration. To this end, an expert 
panel – the Counc il for New Form of Capitalism Realization – was 
established to develop specific policy proposals. The broader policies 
to raise economic growth include the promotion of digital 
transformation and green investment, support for start -ups, regional 
revitaliza tion through digitalization, and enhancement of economic 
security.  
 
Response  
Expansion of special measure on employment adjustment subsidy.  
This subsidy is to cover a part of the paid allowances such as leave 
allowances provided by employers to workers. It is provided when 
employers, based on their applications, are forced to reduce business 
activities for economic reasons but maintain the employment of 
workers by providing them with temporary leave, education/training, 
or transfer to another com pany.  
 
A system was established to provide benefits directly to workers in 
small and medium -sized enterprises (SMEs) and workers whose 
working days are not set in advance and who were forced to take 
leave from work by employers because of the COVID -19 situ ation and 
not able to receive leave allowances during its period.  
 
Question  
How can the current government's New Form of Capitalism policy 
contribute to the income distribution of the country?  
 
Response  
Through the realization of a New Form of Capitalism, we will achieve 
a virtuous cycle of growth and distribution, companies gain more WT/TPR/M/438/Add.1  
 
- 48 - 
 
 Document 
Symbol  Questions  
profits by adding values and distribute the fruits to employees, and 
then, people consume more products contributing to a more economic 
growth.  
Distribution policies are espec ially focusing on investment in people 
and raising wages. The former policies include supporting for 
reskilling and expanding side jobs, and so on. The latter policies 
include mitigation of tax imposed to companies raising wages, 
promoting pass -on of costs  generated by wage increasing, and so on.  
Furthermore, we will formulate a guideline for facilitating labour 
mobility by June to achieve a structural wage increases by three 
reforms of the labour market, supporting for reskilling, establishing a 
Japanese -style job -based wage system, and smoothing labour 
mobility.  
4. WT/TPR/S/438 
Para 2.3  
Page 25 
 2.3. Japan's policy  objectives  place great  emphasis  on national  and 
economic  security  issues. The new Act for the Promotion  of 
Ensuring  National  Security  through  Integrated  Implementation  of 
Economic  Measures  (Economic  Security  Promotion  Act), adopted  
in May 2022,  provides  for a framework  for ensuring  a stable  
supply  of "key products"  and "essential  infrastructure  services",  
enhancing  development  of "advanced  critical  technologies"  (Article  
2.2), and preventing  disclosure  or divulgence  of inventions  that might  
be detrimental  to national  security  through  patent  procedures.  As at 
October  2022,  implementing  regulations  were under  preparation . 
 
Question  
What are the incentives provided by the Japanese government to 
attract inward FDI in targeted sectors (industries/services)?  
Response  
The Economic Security Promotion Ac is implemented in compliance 
with international agreements. For example, in the operation of the 
Chapter 2 "Ensuring Stable Supplies of Specified Key Products", 
foreign companies may apply for the plan approval if the requirement 
of the plan is satisfied. Approved companies may receive supports 
such as support through subsidies, special exception to the Japan 
finance corporation act (two -step loans).  
5. WT/TPR/S/438 
Para 2.26  
Page 33 
 2.26 Under  the FEFTA, foreign investment can be subject to prior 
notification or post -closing reporting requirements to the 
Government.  Prior notification is required for industrial sectors in 
national security, public order, or other specifically designated 
industries. These industries include weapons, aircrafts, nuclear 
facilities, space technology, dual -use technologies, and parts of t he 
cybersecurity, electricity, gas, telecommunications, water supply, 
railway, and oil sectors. Direct investment not subject to prior 
notification is subject to post -closing report requirements, which are 
subject to a simplified procedure under which inve stors are required 
to submit a report to the Bank of Japan within 45 days.  
 
Question  
Is FEFTA  considered as Japan's investment screening framework? Do 
all foreign investments have to be subject to FEFTA?  Could Japan 
please elaborate more on criteria to be considered in authorities' 
screening of prior notification in the 12 targeted sectors, which are 
deemed important to Japan's national security?  
 
Response  
Japan's investment screening framework is stipulated by FEFTA. 
Foreign investors falling under Article 26 of FEFTA shall comply with 
FEFTA  and relevant regulations. For factors to be considered in 
authorities' screening of FDI, please follow the link provided below.  WT/TPR/M/438/Add.1  
 
- 49 - 
 
   Document 
Symbol  Questions  
https://www.mof.go.jp/eng lish/policy/international_policy/fdi/gaitame
hou_20200508.htm  
6. WT/TPR/S/438 
Para 2.28  
Page 33 
 2.28. Under the amendment, a foreign investor seeking a 1% share in 
businesses with importance to national security, public safety, 
infrastructure, or Japan's  economy is required to undergo a prior 
notification and approval process. The previous version of the FEFTA 
required such prior notification and approval only if foreign investors 
sought a 10% share in a company.14 Implementing regulations on 
this amendme nt were adopted in May 2020; they entered into force 
in June 2020. The authorities indicate that 2,171 requests were 
submitted in 2020 and 2,859 in 2021, and that none were denied.  
 
Question  
How long does it take for conducting the approval process?  Could foreign 
investors  re-submit the proposal if it is rejected? Do foreign investors 
have to undergo the approval process whenever they want to increase 
shares in concerned businesses?  
Response  
The statutory review period is 30 calendar days, but operationally it is 
generally within two weeks, and within five working days for 
investments that do not pose risks to national security. Re -submission 
after rejection is not prohibited. Foreign investors can increase shares 
in listed companies w ithout notification as long as their shareholding 
is less than 1%. In addition, following clearance of prior notifications 
by the authorities, foreign investors can purchase stocks up to the 
notified amount anytime within six months after submission of the  
prior notifications. Additional prior notifications will not be required for 
individual transactions up to the notified amount.  
7. WT/TPR/S/438  
Para. 3.23  
Page 42  
 3.23. In FY2022, Japan's overall simple average MFN applied tariff 
rate is 6.3% (the same as in FY2019); the simple average MFN 
applied tariff rate for agriculture (WTO definition) is 18.0% (17.9% in 
FY2019), compared with 3.4% for non -agricultural products (3.5% in 
FY2019) (Table 3.2). The authorities have provided AVEs for 464 out 
of 689 non -ad valorem  lines based on import data as at 19 July 2022. 
Consequently, the tariff analysis is based on 99.0% of the 9,467 tariff 
lines. The simple average for all AVEs supplied is 39.7% (the same as 
the average used in the previous report ). The highest t ariff rate is 
428.8% (AVE of JPY 354/kg) for certain beans (HS 0713.39.227) 
followed by 414.4% (AVE of 29.8% + JPY 687/kg) for certain whey 
and modified whey (HS 0404.10.187), and 337.7% (AVE of 341 
yen/kg) for rolled or flaked grains of rice (HS 1104.19.2 90). The first - 
and second highest AVEs are out -of-quota rates. All the 100 highest 
tariffs have non -ad valorem  rates (66 tariff lines). Sugar centrifugal 
(HS 1702.90.110) has the highest ad valorem rate of 61.9%, ranking 
102nd in the list of highest tarif f rates.  
 
Question  
The tariff structure of Japan continues to have a large number of non -
ad valorem  rates. According to the Secretariat report, ad valorem 
equivalents (AVEs) were provided for 464 out of 689 non -ad valorem  
tariff lines. Could Japan indicate whether it is possible to provide the 
remaining AVEs? Have there been any tariff lines transferred from 
non-ad valorem rate to ad valorem rate in the recent years? Does 
Japan have any plan to reduce the number of non -ad valorem  tariff 
line? 
 
Response  
1. The tariff structure of Japan continues to have a large number of 
non-ad valorem  rates. According to the Secretariat report, ad valorem WT/TPR/M/438/Add.1  
 
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 Document 
Symbol  Questions  
equivalents (AVEs) were provided for 464 out of 689 non -ad valorem 
tariff lines. Could Japan indicate whether it is possible to provide the 
remaining AVEs?  
It is impossible to calculate the AVEs of the goods recorded no 
imports. So Japan has submitted computable AVEs.  
2. Have there been any tariff lines transferred from n on-ad valorem 
rate to a d valorem  rate in the recent years?  
No. 
3. Does Japan have any plan to reduce the number of non -ad valorem  
tariff line?  
Japan doesn't have such a plan.  
8. WT/TPR/S/4 38 
Para 3.129  
Page 69 
 
 3.129. The JFTC  issued guidelines on various monopoly or unfair 
trade issues under the AMA, as well as published detailed rules on 
investigation. The rule -of-reason approach is generally used by the 
JFTC in investigations. The JFTC also maintains guidelines regarding 
mergers and acquisitions (issued on 31 May 2004 and last updated on 
17 December 2019). According to the authorities, the update 
concerned business combinations in the digital market, including the 
definition of markets for digital services (product range and 
geographical range) and clarifications relating to substantial restraint 
of trade in the case of horizontal, vertical, and conglomerate business 
combinations in the digital market.109 All relevant legislation and 
implementing rules are published on the JFT C's official website  
Question  
The Japan Fair Trade Commission (JFTC ) has recently updated the 
guideline relating to business combinations in the digital market, 
including the definition of markets for digital services. In this regard, 
Thailand would like to seek a clarification whether the updated 
guideline also aims to e nhance the enforcement of the Anti -Monopoly 
Act (AMA) against cross -border merger issues in the digital market. 
In addition, what are key benefits of the new definition of markets for 
digital services to JFTC?  
Response  
The JFTC amended the guidelines to pr operly deal with cases in digital 
markets, including cross -border cases, in 2019.  
The amendments clarified views on a market definition, taking into 
account the characteristics of digital markets, including multi -sided 
markets, quality competition, network  effect and switching cost.  
The amendments of the guidelines would improve transparency of 
merger reviews and predictability of merging parties.  
9. WT/TPR/S/438 
Para 3.130.  
Page 69 
 
 3.130. During the review period, amendments to the AMA adopted on 
19 June 2019 (Act No. 45 of 2019) entered into force.111 The 
amended AMA introduced a new leniency system that allows the JFTC 
to reduce the amount of surcharges (administrative fines) according 
to the degree of enterprises' cooperation during an investigatio n and 
abolishes the limitation on the number of enterprises that can benefit 
from the leniency programme in a case.112 In addition, the calculation 
period for surcharges was extended from a maximum of 3 years to up 
to 10 years before the start of the inves tigation. A provision was 
introduced to allow the JFTC to estimate the basis of calculation when 
the sales volume is not available. To make the application of the new 
leniency programme more effective, the JFTC introduced new 
"privilege -like" rules for att orney -client communications under its 
Rules on Investigations.113 In line with the newly amended AMA, 
guidelines on the leniency system for cooperation in investigation 
were adopted.114 WT/TPR/M/438/Add.1  
 
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   Document 
Symbol  Questions  
Question  
Concerning the new surcharges system revised in 2019, how could 
the extension of the calculation period for surcharges from a 
maximum of 3 years to up to 10 years before the start of the 
investigation allows the JFTC to estimate the basis of calculation wh en 
the sales volume is not available?  
 
Response  
The sum of surcharges is calculated on the basis of sales or purchase 
amounts of goods or services in question during the period of 
violation (10 years from the investigation date at a maximum); the 
sum of su rcharge equals such sales or purchase amounts multiplied 
by calculation rates as determined according to operation scales.  
In the case of unreasonable restraint of trade or control type private 
monopolization, the amounts of sales or purchase of the busine ss 
related to goods or services subject to violation such as subcontract 
(closely connected trade) are added to the basis; additionally, the 
financial gains as a reward for not supplying the goods or services 
subject to violation are added to the sum.  
If it is not possible to calculate the sales or purchase amount, the 
amounts of sales or purchase of the business related to goods or 
services subject to violation or the financial gains above (hereinafter 
referred to as "sales amounts, etc.") for a certain p art of the period of 
violation (hereinafter referred to as "the Part") because the enterprise 
concerned has not responded to the request from the JFTC or the 
staff who engage in the administrative affairs pertaining to 
investigations into the case connecte d with the violation to submit 
reports or materials regarding facts connected with the violation that 
should form the basis for the calculation of the surcharge for the 
violation, the JFTC may order the enterprise to pay the surcharge, by 
estimating the sa les amount, etc. for the Part, using a "reasonable 
method", in light of materials obtained from the enterprise etc., or 
other materials. (Article 7 -2(3), 7 -9(3)(4), 8 -3, 20-7) 
The "reasonable method" above means to first divide the sales 
amounts, etc. for the period when the fact that serves as the basis of 
calculation of the surcharge is ascertained by the number of days of 
the period, and then multiply the obtained amounts by the number of 
days contained in the Part. (Article 23 -6 (1)-(4) of the Rules on 
Investigations by the Fair Trade Commission)  
10 WT/T PR/S/438  
Para 4.5  
Page 100 -101 
 4.5. On 1 April 2020, the Act on Facilitating the Export of Agricultural, 
Forestry, and Fishery Products and Food entered into force.4 The Act 
stipulates that the Basic Policy on Facilitating the Export of 
Agricultural, Forestry, and Fishery Products and F ood must be set 
out.5 The authorities state that the Basis Policy provides fundamental 
policy directions to promote exports of agricultural, forestry, and 
fishery products and food. On 15 December 2020, the Strategy to 
Realize Export Expansion of Agricultu ral, Forestry, and Fishery 
Products and Food was adopted; it was revised in December 2021 
and June 2022. The authorities indicate that the Strategy was decided 
base on the Act; the Strategy sets the directions of specific measures. 
Under the latest Strateg y, the Government adopted an additional 
product, which is treated as the Priority Export Product.6   
 
Question  
Under the latest revision of Strategy to Realize Export Expansion of 
Agricultural, Forestry, Japanese Government adopted an additional 
product, which is treated as the Priority Export Product. Thailand 
would like Japan to indicate the list of the existing Priority Export 
Product  including an additional product that is treated as the Priority 
Export Product under the Strategy. Also, Thaila nd would appreciate if WT/TPR/M/438/Add.1  
 
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 Document 
Symbol  Questions  
Japan could provide the English version of the Strategy to Realize 
Export Expansion of Agricultural, Forestry, and Fishery Products and 
Food (Revised Version 2022) and its online location of the official 
website.  
 
Response  
After addi ng persimmons and processed persimmon products to the 
Priority Export Products in December 2021, the Government of Japan 
added Japanese carp as the Priority Export Products in December 
2022. For the current Priority Export Products, please refer to the 
following URL (only in Japanese): 
https://www.maff.go.jp/j/shokusan/export/progress/attach/pdf/index
-1.pdf 
Although an English version of the strategy has not been prepar ed, 
based on the strategy, the government of Japan implements export 
promotions of the Priority Export Products and bilateral talks with the 
importing countries and regions.  
11. WT/TPR/S/438  
Para. 4.32  
Page 105  
 
 4.32 The MAFF  continues to provide direct payments to farmers who 
produce crops other than table rice in the paddy field (the Direct 
Payments for Rice Paddy Utilization), to optimize the use of paddy 
fields, against the background of diminishing domestic demand for 
rice. According to the authorities, this scheme aims to maintain the 
favourable environment of paddy fields and prevent floods or soil 
erosion, cultivate water resources, and preserve the natural 
environment through effective use of paddy fields. The Payments  are 
classified into (i) direct payments to assist the production of strategic 
crops (other than table rice); (ii) grants for production areas; and (iii) 
direct payments for promoting high profitability in paddy farming. In 
FY 2021, with a view to more pos itively tackling the continued decline in 
demand for staple rice, the fourth programme was built into the 
Payments. The new programme, in addition to prefectural 
governments' own financial supporting schemes, enables the 
Government to pay farmers who produ ce certain products in the 
paddy field. 12 The Payments are made when producers meet at least 
three of specific requirements including those for environmental 
protection such as direct sowing seeding and efficient fertilization, in 
order to promote cultivat ion of paddy field. Under the Payments, the 
Government provides grants to Prefectural Agricultural Revitalization 
Councils, which are composed of farmers' organizations and other 
agricultural stakeholders, based on their grant applications and 
performance reports that summarize the farmers' practices in the 
region. The grants are paid to the Prefectural Councils and then 
distributed to the farmers. The budgets for these programmes were 
JPY 332.0 billion in FY 2020 and JPY 370 billion in FY 2021. 
Question  
Could Japan provide more information about the new programme for 
the direct payments for rice paddy utilization that were introduced in 
FY2021, such as the specific requirements and the certain products as 
mentioned in para 4.32?  
Response  
Please s ee the website below for more information on the program in 
question. (In Japanese only)  
https://www.maff.go.jp/j/syouan/keikaku/soukatu/r2hosei_3.html  
12 WT/TPR/S /438 
Para 4.33 
Page 105  4.33 The MAFF continues to implement the Rice Overseas Market 
Expansion Project.  
 
Question   
Could Japan elaborate on the backgrounds, objectives and the 
methodologies of the Rice Overseas Market Expansion Project?  WT/TPR/M/438/Add.1  
 
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   Document 
Symbol  Questions  
Response  
The Rice Overseas Market Expansion Project was launched in 
September 2017 aiming to increase exports of rice and processed rice 
products. Under this project, MAFF is encouraging the expansion of 
rice exports by publishing a list of export operators and pro duction 
areas that are willing to export rice and by promoting matching 
between export operators and production areas.  
13 WT/TPR/S/438  
Para 4.3.2 
(4.89)  
Page 113  4.89 In FY2020, the METI launched a subsidy programme… In the 
same fiscal year, the METI also launched a subsidy programme that 
aimed at increasing the resilience of the supply chain between Japan 
and ASEAN countries. The amount of the budget allocated to this 
programme was JPY 35.2 billion for FY2020. The subsidy was intended 
to support companies established and operating, in Japan to invest in 
ASEAN countries to install new production facilities. The METI held five 
separate selection processes between May 2020 and June 2022 and 
adopted 103 projects in total. A new call for proposals (6th  round) 
started on 29 August 2022, and the adoption decision is scheduled for 
the end of December 2022.  
Question: Referring to a subsidy programme that aimed at increasing 
the resilience of the supply chain between Japan and ASEAN 
countries, it stated that  METI held five separate selection processes to 
support the companies established and operating in Japan to invest in 
ASEAN countries. Could Japan please elaborate on the selection 
criteria under this subsidy programme?  
Response:  
In the overseas supply cha in diversification support project, we have 
so far conducted six public offerings, and the specific screening 
criteria for the latest 6th public offering are as follows.  
 
[Screening Criteria]  
Mandatory items  
①-1 Eligibility of the applying company/organization  
・Whether it is possible to confirm that the scope of the business does 
not fall under the non -payment requirements.  
①-2 Sufficiency and clarity of application content  
・Do you have all the documents to be submitted?  
・Are there sufficien t and clear descriptions in the documents to be 
submitted?  
①-3 Eligibility of business content  
・Does it meet the purpose of the subsidized project and the 
subsidized requirements?  
・Does it match the direction of diversification of the target product as 
a whole? 
・Whether efforts to diversify have led to the strengthening of the 
Japan -ASEAN supply chain.  
①-4 Eligibility for overseas production ratio/degree of concentration in 
one country  
・The overseas production ratio is 50% or more, and the degree of 
concent ration in one country is 15% or more. Also, is it possible to 
confirm these with objective data, etc.?  
<Basic requirements screening items>  
②-1 Implementation system for subsidized projects  
・Does the institution have a sufficient system to smoothly carry o ut 
the subsidized project?  
・In the "implementation system chart" in the business plan, is the 
implementation system of the applicant business clearly described, 
and is it considered sufficient for the project?  
②-2 Financial soundness  WT/TPR/M/438/Add.1  
 
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 Document 
Symbol  Questions  
・Does the institution have the financial strength and management 
base to smoothly carry out the subsidized project?  
・Is there a prospect of raising funds? Considering the size of the 
company, isn't it an over -investment?  
②-3 Feasibility of subsidized projects  
・Is the schedule of the subsidized project appropriate? Are issues, 
countermeasures, schedules, etc. clearly set?  
②-4 Appropriateness of the target product  
・Whether the product is an important product that has a high risk of 
supply chain disruption or is important  for people to live a healthy life.  
<Business content screening items>  
①-1 Importance of business target products/parts/materials in the 
supply chain  
・Is there a high percentage of overseas production of the 
products/parts/materials subject to the business , and is there a high 
degree of concentration in one country? Are the grounds for these 
indicated by quantitative data?  
③-2 Effects of diversification  
・Regarding the products/parts/materials produced by the subsidized 
project, is there a high degree of div ersification in terms of the overall 
product and the overall production of the company implementing the 
subsidized project?  
③-3 Effect on strengthening the Japan -ASEAN supply chain  
・Is there an effect on the resilience of the Japan -ASEAN supply 
chain, incl uding whether the products and parts and materials subject 
to the project will reduce the impact on the economies and societies 
of Japan and ASEAN in the event of an emergency?  
③-4 Ripple effect and possibility of expansion  
・Is there any spillover effect such as inducement of investment in 
upstream and downstream industries? Also, does the project 
contribute to strengthening the supply chain of a wide range of 
industries?  
・Regarding medical supplies, are they important for infectious 
disease control and ar e there a tight supply and demand situation in 
Japan?  
③-5 Secondary effects such as industrial sophistication in the local 
country  
・In the country where the project is implemented, are secondary 
effects expected, such as contributing to technical cooperati on and job 
creation, contributing to the development of focus industries, and 
contributing to industrial sophistication and other industrial 
development in the host country?  
14 WT/TPR/S/438  
Para 4.90  
Page 113 – 114 
 In June 2021, the METI released an industrial strategy that stressed 
the significance of semiconductors as a foundation of a digital society 
and for national security.52 In order to secure the stable domestic 
production of semiconductors in Japan and incentivize such 
investments, on 1 March  2022, the Government implemented a new 
legal instrument that provided grants to advanced chip manufacturers 
under certain conditions. To qualify for this grant, applicants must 
submit plans to manufacture certain semiconductors for more than 10 
years. Dur ing the operation period, they are also required to increase 
output in case there is a pressing demand for semiconductors. The 
plans need to be authorized by the Minister of Economy, Trade and 
Industry to be eligible for the grants. As at end -September 202 2, 
three projects were authorized for the grant scheme. The maximum 
amounts of the grants given to these three projects were JPY 476 
billion and JPY 92.9 billion. The authorized operators are also eligible 
to obtain interest subsidies through financial ins titutions.53  WT/TPR/M/438/Add.1  
 
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   Document 
Symbol  Questions  
Question:  Regarding the implementation of a new legal instrument 
by Japanese Government in March 2022 that provided grants to 
advanced chip manufacturers under certain conditions, could Japan 
provide further information whether there are any other incentives 
besides grants or interest subsidies that the Government would 
provide to the eligible applicants in semiconductors?  
 
Response  
*Besides grants or interest subsidies, the government will provide the 
following support measures  
‐Special Provi sions on the Duties of Japan Finance Corporation (Two -
steps Loan)  
‐Special Provisions of the Small and Medium -sized Enterprise 
Investment Business Corporation Act  
‐Special Provisions of the Small and Medium -sized Enterprise Credit 
Insurance Act  
15 WT/TPR/S /438  
Para 4.99   
Page .117 
 4.99 J apan's legislation on foreign investment also applies to the 
financial services sector (Section 2.4).  
As a consequence, foreign investors in Japan's financial services 
sector are also subject to the newly tightened screening and 
notification requirements. However, exemptions may apply when 
foreign financial institutions satisfy certain requirements, namely: (i) 
the foreign investor and closely related persons will not serve on the 
board of the target company as direc tors or audit and supervisory 
board members; (ii) the foreign investor will not make proposals at 
shareholders' meetings, whether directly or through third parties, to 
dispose of material businesses in designated industries; and (iii) the 
foreign investor will not access sensitive confidential technologies that 
are related to the target company's designated business. Also, foreign 
investors may benefit from a  registration moratorium, of up to five 
years, if they are registered as investment operators with a  foreign 
authority, with a proven track record in this country. On 22 November 
2021, an entry system with simplified procedures was established for 
offshore fund managers with a proven track record in specified 
foreign jurisdictions and for managers with q ualified overseas 
clients. 59 
Question: Could Japan please elaborate on the exemption scheme for 
prior notification such as (1) who can be identified as closely related 
persons?; (2) what kind of proposals cannot be made at shareholders' 
meetings?; and (3) what can be considered as sensitive confidential 
technologies?  
Response:  
(1) Closely  related persons are those defined in Article 2 paragraph 
(19) of Cabinet Order on Inward Direct Investment, (2) Transfer or 
discontinuation of business etc. in designated sectors, (3) Although 
this will be judged comprehensively according to the specific 
circumstances of each individual case, any undisclosed technical 
information relating to businesses in designated sectors is considered 
sensitive confidential technology. H owever, information on the terms 
and conditions of employment and remuneration of directors and 
other officers, and financial information on investee companies do not 
fall into this category.  
 
  WT/TPR/M/438/Add.1  
 
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5  ISRAEL  
4.4.2 Telecommunication services  
4.112  
 
1. Establishing the "Digital Agency" to develop a priority program for forming a digital society is 
an interesting development. Could Japan please provide more information on where this agency falls 
within the administration, what are some of its flagship pro jects so far and what, if any, the 
interaction with the private sector is?  
 
Response  
The Digital Agency is placed directly under the Cabinet as an agency that assists the Cabinet. With 
the pillars of "Delivering Citizen -Centric Public Service," "Modernizin g Digital Infrastructure for 
Inclusive Growth," and "Strengthening Digital Resilience," we steadily promoted public service 
provision and infrastructure development supporting people's daily lives to achieve the digital society 
which we aim to create.  
 The main achievements are below;  
 1. Delivering Citizen -Centric Public Service  
• Spreading the use of Individual Number Card  
• Improving Mynaportal  
• Providing the COVID -19 vaccination certificate app  
• Providing services and certification infrastructure for businesses  
• Online administrative services for government offices  
• Establishing the Cashless Act   
• Promoting the standardization of local government systems  
 2. Modernizing Digital Infrastructure for Inclusive Growth  
• Promoting the work of the Special Commission on Digital Administrative Reform  
• Data strategy  
• Promoting medical care DX  
• Digitalizing the education sector  
• Developing a data infrastructure for children  
• Spreading & establishing the digital invoices  
• Promoting the Vision for a Digital Garden City Nation  
• Utilizing the digital reform co -creation platform  
• Implementing Digital Days  
 3. Achieving a Safe, Secure, and Strong Digital Infrastructure  
• Developing government cloud   
• Government solutions services  
• Promoting the DFFT  
 
Many projects interact with the private sectors, for example, Mynaportal provides APIs in order to 
interact with private sectors.  
 
3.3.6 Government procurement  
2. Regarding Government Procurement, can Japan  please share some of the most successful 
ways it has found to encourage the participation of SMEs in the Japanese market?  
 
Response  
We do not have such a case study.   
 
  WT/TPR/M/438/Add.1  
 
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  6  UNITED KINGDOM  
SECRETARIAT REPORT (S438)   
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic developments  
1.2.4  Structural reforms and privatization  
Paragraph  1.14.  
 
UK Question 1:  Can Japan please explain what steps it is taking to reach its target of 30% of women 
in leadership positions in economic and p olitics? W hat plans has Japan put in place to support the 
commitment for collection of gender -disaggregated data, the use of indicators, monitoring and 
evaluation methodologies, and the analysis of gender -focused statistics related to trade?  
 
Response  
The still low participation of women in policy and policy -making processes is an important issue, and 
it is necessary to promote greater participation of women in all areas, including politics, economy, 
and society. In the political field, based on the purpose  of the "Law Concerning the Promotion of 
Gender Equality in the Political Field," we will support efforts by promoting the use of video materials 
for harassment prevention training, which were created last April, and by improving the environment 
by "visual izing" efforts to support a good work -life balance in local assemblies. In the economic field, 
according to a survey conducted in August 2022 among companies listed on the prime market, the 
percentage of female executive officers remains low at 4.3%. In li ght of this situation, we are 
currently studying the Fifth Basic Plan for Gender Equality with the aim of setting new performance 
targets for the ratio of female executive officers in companies by 2025. Based on the Fifth Basic Plan 
for Gender Equality and  the "The Basic Policy on Gender Equality and Empowerment of Women 
2022" decided by the government last June, we will continue to make efforts to increase the number 
of women in leadership positions, aiming to achieve a ratio of approximately 30% of women in 
leadership positions by the earliest possible date in the 2020s.  
 
The statistical system of the Japanese government is decentralized, in that each ministry produces 
statistics for its own policy purposes. The Director -General for Policy Planning (Statis tical Policy), 
Ministry of Internal Affairs and Communications, who is responsible for coordinating the statistical 
activities of different ministries and the Gender Equality Bureau, Cabinet Office, who promotes 
policies related to gender equality, mention  the promotion of gender statistics in their respective 
related government decision documents (i.e. Master Plan Concerning the Development of Official 
Statistics and Basic Plan for Gender Equality). The Japanese government makes statistics on gender 
and bu siness but does not make gender -focused statistics related to trade.  
 
2 TRADE AND INVESTMENT REGIMES   
2.1 General Framework   
 
UK Question 2:  Noting Japan's priorities in the promotion of digital transformation and green 
investment, support for start -ups, r egional revitalization through digitalization, and enhancement of 
economic security, how does Japan see international businesses supporting these policies and what 
proactive steps it is taking to engage international businesses? What steps is it taking to ensure that 
future regulation in these areas does not disproportionately affect trade?  
 
Response  
The Japanese government has been putting efforts into making its policies accessible to international 
businesses. For example, the Japan External Trade Organiz ation (JETRO) provides one -stop service 
for international businesses to establish a business base in Japan and support for collaboration with 
Japanese companies. Also, the Japanese government has designed and implemented its measures 
in a manner consistent  with existing international rules, including the WTO.  
 
2 TRADE AND INVESTMENT REGIMES   
2.1 General Framework   
Paragraph  2.3.  
 
UK Question 3 : Could Japan please clarify which types of enterprises are eligible for the subsidies 
provided for under its  "Act on the promotion of national security through integrated economic 
measures" (Economic Security Promotion Act)?  
 WT/TPR/M/438/Add.1  
 
- 58 - 
 
Response  
Business entities which elaborate plans related to initiatives (such as reinforcement of production 
base, diversification of supp ly sources, stockpiling, development of production technology and 
development of alternative products) for ensuring stable supply of specified critical products or their 
raw materials, etc. may apply the plans to the competent minister for its approval. Ap proved 
companies may receive supports such as support through subsidies, special exception to  the Japan 
finance corporation act (two -step loans).  
The detail targets of the subsidies provided for Economic Security Promotion Act are determined in 
policies on  initiatives to ensure stable supply of specified critical products or their raw materials, etc. 
which the competent minister formulates by each specified critical product.  
 
UK Question 4 : Could Japan please clarify whether subsidies provided under its Eco nomic Security 
Promotion Act constitute notifiable subsidies under Article 1 of the SCM Agreement?  
 
Response  
Subsidies under the Economic Security Promotion Act may be granted to any business entity whose 
plan for ensuring stable supply has been approved by the competent minister based on criteria 
established by the law and each policy on initiatives to ensure stable supply of specified critical 
products or their raw materials, etc. If the plan is in conformity with the criteria, the competent 
minister for  products shall approve the plans (Article 9, paragraph 4).  
(* For the specifics of such criteria, please see the response to the following question.)  
 
UK Question 5 : Could Japan please clarify the criteria used to approve certification of supply plans 
submitted by businesses to be eligible for subsidies under its Economic Security Promotion Act?  
 
Response  
The competent minister for products shall check, for example, whether the contents of the submitted 
plans for ensuring stable supply and the implementat ion period or deadline are appropriate in light 
of the Policy on Initiatives for Ensuring Stable Supply, whether the implementation system, 
financing, etc. are appropriate, and whether measures to ensure smooth and reliable implementation 
of initiatives ar e expected to be taken (for example, specific measures to be taken in the event of a 
supply and demand crunch, constant investment, research and development). If the plan is in 
conformity with these criteria, the competent minister for products shall appro ve the plans (Article 
9, paragraph 4).  
 The detailed criteria is described in each policy on initiatives to ensure stable supply of specified 
critical products or their raw materials, etc. which is formulated by the competent minister for each 
specified cr itical product.  
 
2 TRADE AND INVESTMENT REGIMES   
2.3  Trade Agreements and Arrangements  
2.3.2  Regional trade agreements   
 
UK Question 6:  Could Japan please explain how it ensures effective implementation of its FTAs and 
any efforts it has taken to improve utilisation of its FTA agreements, in particular recently concluded 
agreements?  
 
Response  
For effective implementation of EPAs, Japan regularly discusses various implementation issues at 
meetings of the Sub -Committees under each EPA. Also, when issues arise, Japan holds bilateral 
meetings with EPA partners to solve them as needed. For example, the RCEP Joint Committee met 
twice during 2022 to discuss operational and technical issues, and the various Committees and 
subsidiary bodies under CPTPP take place to discuss implementation or cooperation issues.  
Furthermore, to promote the utilization of EPAs, Japan is working to reduce the burden of traders 
and increase the convenience of using EPAs through various efforts, such as updating the HS version 
of Product Specific Rules of Origins under each EPA and promoting the issuance of COs in electronic 
format instead of paper format. In addition, in order to provide detailed information on how to utilize 
EPAs to traders, including SMEs, Japan has conducted EPA seminars several times a year to provide 
information on the utilization of EPAs.  
 WT/TPR/M/438/Add.1  
 
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  2 TRADE AND IN VESTMENT REGIMES   
2.4 Investment Regime   
 
UK Question 7:  Noting Japan's policy on seeking to attract more inward FDI, can Japan please explain 
what concrete measures it is taking to attract more foreign companies into Japan and to improve 
the investment en vironment?  
 
Response  
As for concrete measures, please refer to English -translated version of "Strategy for Promoting 
Foreign Direct Investment in Japan" from the following link.  
http://www.invest -japan.go.jp/documents/pdf/en_chuchoki.pdf  
 
2 TRADE AND INVES TMENT REGIMES   
2.4 Investment Regime   
2.4.1  Investment framework  
Paragraph  2.28.  
 
UK Question 8 : Under the FEFTA amendment, a foreign investor seeking a 1% share in businesses 
with importance to national security, public safety, infrastructure, or Japan's  economy is required to 
undergo a prior notification and approval process. FEFTA previously required such prior notification 
and approval only if foreign investors sought a 10% share in a company. The UK have a DMAS 
investment market access barrier on this  issue, so would be keen to understand Japan's rationale 
for the change in policy.  
 
Could Japan please elaborate on why it lowered the share requirement for prior notification and 
approval from 10% to 1%?  
 
Response  
While the exercise of shareholder rights , etc. by shareholders is important from the perspective of 
strengthening corporate governance, it is necessary to take appropriate measures in accordance 
with FEFTA when the activities of foreign shareholders may undermine the national security etc. of 
Japan. Therefore, the threshold for prior notification was lowered to 1% where shareholders have 
the right to propose agenda at the general shareholders meeting. On the other hand, the exemption 
scheme for prior notification of stock purchases was introduced  from the perspective of promoting 
investment without such a risk.  
 
UK Question 9:  Could Japan please confirm on average, how long the prior notification and approval 
process takes?  
 
Response  
The statutory review period is 30 calendar days, but operationally it is generally within two weeks, 
and within five working days for investments that do not pose risks to national security.  
 
2 TRADE AND INVESTMENT REGIMES   
2.4 Investment Regime   
2.4.1  Investment framework  
Paragraph  2.31. table 2.5  
 
UK Question 10 : Could  Japan  please  elaborate  on why their broadcasting,  radio,  and 
telecommunications  sectors  are more closed  to foreign  investment?  
 
Response  
Broadcasting sectors  
Since broadcasting stations use scarce radio waves, which are subject to being granted to citizens 
preferentially, and broadcasting has a large impact on the formation of public opinion and culture, 
FDI to the broadcasting sector is restricted to less than a certain portion.  
Radio sectors ： 
Since radio waves are finite and scarce, FDI  restrictions on radio station licenses are implemented 
in terms of priority use of our own citizens.  
Telecommunications sectors ： WT/TPR/M/438/Add.1  
 
- 60 - 
 
In view of the vital public role of NTT which is responsible for ensuring universal services, promoting 
research on telecommun ications technologies and disseminating the results of research, it is 
necessary to secure a stable foundation for company management.  
In addition, it is necessary to prevent national security problems caused by NTT being controlled by 
foreign countries.  
For these reasons, FDI restrictions in the sector of telecommunication have been implemented.  
 
2 TRADE AND INVESTMENT REGIMES   
2.4 Investment Regime   
2.4.2  Business environment   
 
UK Question 11 : Noting Japan's objective to achieve the entry of 200,000 foreign business 
management personnel by 2030, could Japan please explain what measures it intends to introduce 
to reach these targets?   
 
Response  
The objective to achieve the entry of 200,000 human resources with managerial or administrative 
skills by 2030 is set as one of auxiliary indicators in "Strategy for Promoting Foreign Direct 
Investment in Japan". As for concrete measures, please refer to English -translated version of 
"Strategy for Promoting Foreign Direct Investment in Japan" from the fol lowing link.  
http://www.invest -japan.go.jp/documents/pdf/en_chuchoki.pdf  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE    
3.2 Measures Directly Affecting Exports   
3.2.4  Export support and promotion  
3.2.4.1  Export subsidies   
 
UK Question 12:  We understand that Japan, led by METI, launched a programme to support 10,000 
new exporters in December 2022. Could Japan please explain how they will ensure as they develop 
this programme th at it does not have market distortive effects?  
 
Response  
The 10,000 New Exporters Support Programme is a service that connects SMEs that are not familiar 
with existing support measures to appropriate support measures when they work to expand their 
sales ch annels. It will be operated appropriately according to the actual situation and needs of SMEs.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE    
3.3 Measures Affecting Production and Trade  
3.3.1  Incentives  
3.3.1.3  Subsidies and other assistance programmes  
 
UK Question 13:  Could Japan please clarify how it implements and enforces domestically, both at 
the central and prefecture levels, its subsidy obligations under the WTO SCM Agreement?  
 
Response  
The Constitution requires that the treaties conclu ded by Japan and established laws of nations, 
including the WTO Agreement, shall be faithfully observed" (Article 98). All our domestic laws and 
regulations, central or prefecture level, are thus designed and operated in a manner that is consistent 
not onl y with the Japanese law but also with the WTO SCM Agreement. Japan notifies specific subsidy 
programmes, in accordance with Article 25 of the WTO SCM Agreement, at both central and 
prefecture levels through the relevant Ministries and Agencies.  
 
3 TRADE PO LICIES AND PRACTICES BY MEASURE   
3.3 Measures Affecting Production and Trade    
3.3.2  Standards  
3.3.2.5  Labelling Requirements  
 
UK Question 14 : Japan is one of only three OECD countries that does not prohibit the sale of liquor 
bottles with erased lot code s. This inhabits the ability of producers to trace products and ensure 
consumer safety. Could Japan please explain whether it plans to introduce legislation or procedures 
that prohibit the sale of products that have been tampered?    
 WT/TPR/M/438/Add.1  
 
- 61 - 
 
  Response  
Taking into account the current circumstances, including the provisions of existing international 
agreements with partners, Japan has been examining the issue about lot identification codes with 
representatives of our business sectors and business  related organis ations, holding meetings to 
exchange information, experiences and best practice.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3  Measures Affecting Production and Trade  
3.3.4  Competition policy and price controls  
3.3.4.1  Competition policy  
Paragraph  3.132 . 
 
UK Question 17 : The report states that "several activities and business practices remain exempt 
from the scope of the AMA" and those exemptions "Concerning Special Measures for Correcting 
Practices Impeding Consumption Tax Pass -on, etc. with the Aim to Ensure Smooth and Proper Pass -
on of Consumption Tax" expired on 31 March 2021.  
 
Response  
Thank you for the comment. As you pointed out.  
 
UK Question 18:  Could Japan please clarify whether any of the remaining exemptions provided for 
activities and business  practices from the scope of its Anti -Monopoly Act have expiration dates?  
 
Response  
Some of the remaining exemptions have expiration dates.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.5  State trading, state -owned enterprises, and privatization  
 
UK Question 19 : Could Japan please clarify how its laws and regulations governing the activities of 
state-owned enterprises are implemented and enforced at both the central and prefecture levels?  
 
Response  
Although ther e is no precise definition of state -owned enterprises in Japan, in Table 3.13, Japan 
provides information on "special public corporations" with government ownership of 33.3% or more. 
The special public corporations are not determined by whether or not they  are publicly owned, but 
rather by the fact that they have a legal rationale for incorporation in a special law. This is 
implemented and enforced by the competent ministries according to the law on which they were 
established. There are no "special public corporations" established by a prefecture.  
 
UK Question 20 : Could Japan please: a) clarify whether its state -owned enterprises benefit from any 
exemptions or immunities from its laws and regulations; and b) explain what these exemptions are, 
and which entities benefit from them?  
 
Response  
The "special public corporations" （SOEs） in Table 3.13 take the form of private corporation rather 
than public corporation according to the law governing their establishment and they are managed 
independently of the cen tral government as a member of free co mpetition in the market. Therefore, 
SOEs do not receive any special exemptions or disclaimers.  
 
UK Question 21 : Could Japan please clarify whether it has any state -owned enterprises at the 
prefecture level?  
 
Response  
As indicated in Question 19 from the UK, there are no "special public corporations" established by a 
prefecture.  WT/TPR/M/438/Add.1  
 
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3  TRADE POLICIES AND PRACTICES BY MEASURE   
3.3  Measures Affecting Production and Trade   
3.3.6  Government Procurement   
Paragraph:   3.157.  
 
UK Question 22 : Could Japan please elaborate on its policies and measures for the promotion of 
contracts that reduce emissions of greenhouse gases and the effect of the 2030 greenhouse gas 
reduction target on public procurements?  
Response  
We do not have suc h statistical data.   
 
3  TRADE POLICIES AND PRACTICES BY MEASURE   
3.3  Measures Affecting Production and Trade   
3.3.6  Government Procurement   
Paragraph:  3.158.  
 
UK Question 23 : Could Japan please share a breakdown of SME participation in government 
procu rement by value and by foreign participation?  
 
Response  
Nationality is irrelevant.  
 
UK Question 24:  Do foreign -affiliated or owned SMEs can count towards Japan's SME targets for 
government procurement?  
 
Response  
The JETRO  portal, Japanese single point of access, publishes the English summary of all 
procurements covered by the GPA, the Japan -EU Economic Partnership Agreement and the Japan -
UK Comprehensive Economic Partnership Agreement. Procurement entities publish English and 
Japanese notices at the same time. The JETRO portal gathers and publishes the procurement 
information in Japanese and the English summary made by the procurement entities, and in 
principle, they are to be published in the portal site no later than the end of the next business day 
of publication.  
 
3  TRADE POLICIES AND PRACTICES BY MEASURE   
3.3  Measures Affecting Production and Trade   
3.3.6  Government Procurement   
Paragraph:  3.160.  
 
UK Question 25:  Can Japan confirm that all procurement notices at all  levels covered by the GPA 
and Japan's bilateral FTAs are published in English on the JETRO portal? Can Japan confirm that 
these notices are published in English on the JETRO portal at the same time as they are made 
available in Japanese on other portals? If not, what measures are being taken to improve this?  
 
Response  
The JETRO  portal, Japanese single point of access, publishes the English summary of all 
procurements covered by the GPA, the Japan -EU Economic Partnership Agreement and the Japan -
UK Comprehensive Economic Partnership Agreement. The procurement entities publish the English 
and Japanese notices at the same time. JETRO portal gathers and publishes the procurement 
information in Japanese and the English summary made by the procurement entities, in principle no 
later than the end of next business day of publication.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7  Intellectual property rights  
3.3.7.1  Features and IP strategy   
 
UK Question 26 : Could Japan please explain whether it is considering introducing policies to ensure 
equitable remuneration for the public playing of phonograms?  
 WT/TPR/M/438/Add.1  
 
- 63 - 
 
  Response  
Japan has been appropriately protecting copyrights and neighbouring rights while complying with 
international agreements, and will continue to consider necessary measures to realize adeq uate 
protection of rights and remuneration to right holders. Regarding the use of phonograms, we 
understand that the Recording Industry Association of Japan (RIAJ), one of the main interested 
parties, plays a main role to plan to carry out a feasibility st udy based on the latest situation.  
 
4 TRADE POLICIES BY SECTOR  
4.2 Mining and Energy  
4.2.2  Energy   
Paragraph  4.115.  
 
UK Question 27:  Could Japan please detail any plans to further improve the process of offshore wind 
auctions and any future policies it plans to implement to make the sector more attractive to 
international companies?  
 
Response  
In order to increase the attractiveness of the Japanese market, we are currently studying the 
possibility of structuring projects in the EEZ with the aim of scaling up to larger projects.  
In addition, in order to present the market outlook for floating offshore wind power, we plan to study 
and pre sent our goals for the introduction of floating wind turbines.  
 
4 TRADE POLICIES BY SECTOR  
4.2 Mining and Energy  
4.2.2.1  Hydrocarbons  
4.2.2.1.1  Coal 
Paragraph  4.72.  
 
UK Question 28:  Could Japan please provide further information regarding the Government's 
commitment to decreasing the share of coal in the power generation remix?  
 
Response  
As stated in the Basic Energy Plan, coal -fired thermal power generation produces large amounts of  
carbon dioxide emissions, so the basic policy is to reduce the ratio of coal -fired thermal power 
generation as much as possible while ensuring a stable supply of electricity. On the other hand, if 
measures to sharply curtail coal -fired power generation we re to be taken immediately at a stage 
when the necessary supply capacity has not necessarily been sufficiently secured, this could hinder 
the stable supply of electric power. In light of this situation, we will steadily fade out inefficient coal -
fired ther mal power generation in order to achieve the goal of a 19% share of power generation in 
2030. Furthermore, toward 2050, we will continue to promote efforts to replace coal -fired thermal 
power with decarbonized thermal power by utilizing hydrogen, ammonia, and CCUS.  
 
4 TRADE POLICIES BY SECTOR  
4.4 Services  
 
UK Question 29:  Could Japan please clarify: a) whether it has implemented any measures to regulate 
the provision of subsidies to its services sectors (including measures to ensure transparency); and 
b) ho w these measures are enforced at both the central and prefecture levels?  
 
Response  
(a)(b) We understand that there are no provisions in the GATS regarding measures regulating 
subsidies to the services sector. If you would like more clarification on individual subsidies, we can 
provide a response if you request it further.  
 
4 TRADE POLICIES BY SECTOR   
4.4 Services  
4.4.1  Financial services   
4.4.1.1  Regulatory evolutions in the banking sector   
 
UK Question 30 : Could Japan please explain how it intends to improve the regulatory environment 
for fintech firms (including new and innovative firms), in areas like licencing and authorisation 
processes, to achieve its stated aim of growing the industry?   WT/TPR/M/438/Add.1  
 
- 64 - 
 
Response  
To provide one -stop finan cial service, the Financial Service Provision Act (became effective in 2021) 
established the "Financial Service Intermediary Service Provider" under which various types of 
financial services (banking, securities, and insurance) can be intermediated with on e registration.  
In addition, the FSA supports FinTech businesses through the FinTech Support Desk (a one -stop 
consultation desk for FinTech service providers and other companies considering new businesses 
regarding the interpretation of laws and regulation s) and the FinTech Proof -of-Concept Hub (a 
support framework for FinTech businesses to dispel the hesitation and concerns they tend to have 
when they are trying to conduct unprecedented proof -of-concept experiments).  
https://www.fsa.go.jp/en/policy/bgin/innovationtop.html  
 
UK Question 31:  Can Japan please explain what steps it is taking to speed up digitalisation in 
financial services including by bringing more fintech innovation into t he banking sector?  
 
Response  
Focusing on the banking sector, in recent years we have been revising the Banking Act in response 
to digitalization.  
 
(Specific Example)  
・ Introduction of Advanced Banking Service Companies in 2016  
・ Establishment of electronic  payment services in 2017  
・Review of the scope of business of the Banking Group to add digitalisation services, etc. in 2021  
・ Establishment of systems to create a new business category in response to stable coins in 2022  
 
4 TRADE POLICIES BY SECTOR   
4.4 Services  
4.4.7  Legal services   
Paragraph  4.284.  
 
UK Question 32 : Could Japan please explain whether it has considered streamlining the application 
and registration processes for foreign lawyers, reducing administrative requirements and digitalising 
documentation, to ensure lawyers from international providers can more flexibly provide legal 
services?   
 
Response  
Japan (the Ministry of Justice) amended the Regulations for Enforcement of the Act on Special 
Measures concerning the Handling o f Legal Services by Foreign Lawyers in 2021. The amendment 
includes the following revisions on the application procedure:  
1. Signature is no longer required on the documents except the Sworn Statements.  
2. The provision that had prescribed the duty of appl icant's appearance at the time of filing an 
application for designation has been deleted.  
Additionally, the Ministry of Justice has started a new operation: Submission of any documents other 
than the application form and the Sworn Statements by attaching t he PDF to email is now acceptable.  
 
UK Question 33:  Could Japan please explain whether it plans to revise, replace, or amend the Act 
on Special Measures concerning the Handling of Legal Services by Foreign Lawyers?   
 
If yes, will this include changes to th e post -qualification experience requirements for the registration 
of foreign lawyers?   
 
Response  
No. Since Japan enacted the Amendment Act that contains the relaxation of experience requirements 
in May 2020, the Ministry of Justice has been undertaking the  steady implementation of Registered 
Foreign Lawyer system based on the latest amendment.  
 
GOVERNMENT REPORT (G438)  
3 MULTILATERAL INITIATIVES  
3.1 WTO  
Paragraph  3.15.  
 
UK Question 34:  MSMEs account for a large part of the Japan economy which is similar to the UK 
and especially Scotland with MSMEs making up a large part of the Scottish economy. Could Japan WT/TPR/M/438/Add.1  
 
- 65 - 
 
  please indicate if it plans to ease access to information issues for MSMEs when a ccessing FTAs and 
other pluri/bilateral agreements, specifically on services trade, which can act as a barrier to trade 
for these smaller companies?  
 
Response  
The Government of Japan and JETRO  provide information on FTAs and other pluri/bilateral 
agreements to interested businesses, including MSMEs, through seminars on EPA/FTA utilization and 
individual consultations. Information on FTAs and other pluri/bilateral agreements, including those 
related to trade in services, is posted on the government websites. We will continue to make efforts 
to post information on our websites so that all interested businesses, including MSMEs, can access 
information on FTAs and other pluri/bilateral agreements.  
 
3 MULTILATERAL INITIATIVES  
3.1 WTO  
Paragraph  3.9. 
 
UK Question 35 : Given the role of environmental goods and services in addressing climate change 
through trade, could Japan please explain how it can increase market access to their offshore wind 
project au ctions by providing the t echnical standards in the offshore wind sector  in other languages?  
 
Response  
Many overseas power producers participate in the public bidding for offshore wind power in Japan, 
and we do not consider that there are any market access problems at this time.  
But we may be considered if there is a need to create a further competitive environment in the 
future.  
 
6 JAPAN'S DOMESTIC POLICIES  
6.7 Labour market reform and women's economic participation  
Paragraph  6.2.5.  
 
UK Question 36 : Could  Japan please clarify if it has any domestic strategies or other public 
commitments that support work on trade and gender equality?  
 
Response  
Since the year of 2000, Japan has been formulating a five -year plan called the Basic Plan for Gender 
Equali ty. Japan is currently working to increase women's participation in all fields, including politics, 
the economy, and public administration, based on the Fifth Basic Plan for Gender Equality formulated 
in December 2020. In this way, Japan has been making co ntinuous efforts to promote gender 
equality including by annually setting policy priorities, not only for trade, but also for women's 
empowerment and gender equality.  
 
  WT/TPR/M/438/Add.1  
 
- 66 - 
 
7  AUSTRALIA  
General framework  
Report by the Secretariat (WT/TPR/S/438)  
2 Trade and Investment Regimes  
2.1 General Framework  
Page 25, Paragraph 2.3  
Japan's policy objectives place great emphasis on national and economic security issues. The new 
Act for the Promotion of Ensuring National Security through Integrated Implementation of Econom ic 
Measures (Economic Security Promotion Act), adopted in May 2022, provides for a framework for 
ensuring a stable supply of "key products" and "essential infrastructure services", enhancing 
development of "advanced critical technologies" (Article 2.2), an d preventing disclosure or 
divulgence of inventions that might be detrimental to national security through patent procedures. 
As at October 2022, implementing regulations were under preparation.  
 
Question  
Can Japan provide further details on the process a nd criteria by which it determines what is a "key 
product", "essential infrastructure service", and "advanced critical technology"?  
 
Response  
"Specified critical (key) products" are defined as critical products which are vital for the survival of 
the peopl e or on which their daily lives or the economic activities depend, and of which stable supply 
is particularly necessary to prevent a situation in which the security of the nation and its citizens is 
undermined due to outside actions when the critical produ cts or their materials, etc. are excessively 
reliant or are likely to be reliant on outside sources.  
In designating "specified critical products" by Cabinet Order, products are to be narrowed down to 
those that meet the following four requirements and appr opriately designated as specified critical 
products for which it is particularly necessary to ensure stable supply (Economic Security Promotion 
Act Article 7).  
・ "Critical products which are vital for lives, or have significant factors of living conditions  and 
economic activities " (importance)  
・ Critical products or their materials, etc. for which the nation or its citizens "excessively depend or 
will excessively depend on outside sources " (external dependence)  
・ Critical products that are necessary to "secure national security and citizens ' safety against a 
possible outside action " (probability of supply disruptions, etc. due to outside action)  
・ Critical products of which an "uninterrupted stable supply is particularly necessary " (the necessity 
to take mea sures to ensure a stable supply through this system)  
The details of the above requirements are determined in the Guiding Principles on Ensuring Stable 
Supply which was decided by the Cabinet and made public after hearing the opinions of experts. 
Then, considering those details of the requirements, the government has designated "specified 
critical products" by Cabinet Order, which was also subject to public comment procedure and other 
measures for hearing the opinions of the public and other stakeholders . 
 
"Specified essential infrastructure services" means services that form the basis of living conditions 
and economic activities, and which, in the event that the stable service provision is disrupted, may 
cause a "situation that could impair the security of the nation and its citizens (for example, a situation 
that threatens the lives of citizens or impairs social and economic order (widespread or large -scale 
disruption, etc.))."  
"Specified essential infrastructure business" are specified by Cabinet Order as those that provide the 
"specified essential infrastructure services", among the 14 businesses that are listed in Article 50, 
paragraph 1 of the Act.  
 
"Advanced critical technologies" are defined as "advanced technologies" (advanced technologies that 
could be critical for the maintenance of living conditions and economic activities in the future) that 
involve a risk of "impairing the security of the nation and its citizens," in any of the following cases 
(or more than one case may be possible): (i) when such technologies are misused by foreign bodies, 
(ii) when information used for R&D of such technologies are misused by foreign bodies, or (iii) when 
the products or services using such technologies are dependent on foreign bodies and the stable use 
of the se products or services is no longer possible due to actions committed by foreign bodies.  
The technologies that meet this criteria are defined as advanced critical technologies.  
 WT/TPR/M/438/Add.1  
 
- 67 - 
 
  Trade law  
Report by the Secretariat (WT/TPR/S/438)  
2 Trade and Investment Reg imes  
2.2 Trade Policy Formulation and Objectives   
2.1 Major trade -related laws and regulations, October 2022  
Page 26, Table 2.1  
Act on Special Measures Concerning the Handling of Legal Services by Foreign Lawyers (Law No. 66 
of 1986) 2020  
 
Question  
Can Japan provide further details on what impact the Act on Special Measures Concerning the 
Handling of Legal Services by Foreign Lawyers  will have on foreign lawyers practising in Japan?  
 
Response  
The Act provides the requirements of approval o f the qualification to become a Registered Foreign 
Lawyer and the regulations of the scope of legal service that Registered Foreign Lawyer can provide. 
The amendment of the Act which came into effect in 2020 extended the maximum period of provision 
of serv ices in Japan from one year to two years that can be included in the calculation of the required 
experience (3 years or more) of having performed professional duties. This amendment would relax 
the burden on foreign lawyers who build their career in Japan by mitigating the period to stay outside 
of Japan necessary for obtaining the experience in foreign jurisdiction.  
 Also, the scope of international arbitration cases in which Registered Foreign Lawyers and foreign 
lawyers may provide representation was ext ended by the amendment. Furthermore, the amendment 
established the provisions that provide the definition of international mediation case and that enable 
them to provide representation in international mediation cases.  
 
Government procurement  
Report by the  Secretariat (WT/TPR/S/438)  
3. Trade Policies and Practices by Measure  
3.3. Measures Affecting Production and Trade  
3.3.6. Government Procurement  
Page 74, Paragraph 3.150  
The report states that Japan maintains special procurement procedures for certain i ndividual sectors 
that govern the procurement by central government entities and public corporations.  
 
Question  
Can Japan please elaborate on these special procurement procedures, and whether they are open 
to foreign firms to participate?  
 
Response  
In order to contribute to suppliers' convenience, to ensure market entry opportunities for competitive 
domestic and foreign suppliers, and to enhance transparency, fairness and competition in 
procurement procedures, the Government of Japan has decided to take n ecessary steps in keeping 
with the operational guidelines for procurement of products covered under the revised Agreement 
and other international agreements and for procurement carried out in accordance with the 
agreements. As for the datails, please refer  to the link below. 
https://japan.kantei.go.jp/101_kishida/documents/2022/_00030.html  
 
Page 74, Paragraph 3.152  
The report states that Japan maintains various "voluntary measures" to facilitate foreign suppliers' 
opportunities to access Japan's government procurement markets in addition to what is required 
under the GPA 2012 in relation to market access. The report states that these are as a result of 
bilateral negotiations with the United States, with the measures being applied on a multilateral level.  
 
Question  
Can Japan please elaborate on what these voluntary measures are? Are they also relevant in the 
context of any of Japan's other key trade agreements, for example the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership?  
 
 
 
 WT/TPR/M/438/Add.1  
 
- 68 - 
 
Response  
In order to contribute to suppliers' convenience, to ensure market entry opportunities for competitive  
domestic and foreign suppliers, and to enhance transparency, fairness and competition in 
procurement procedures, the Government of Japan has decided to take necessary steps in keeping 
with the operational guidelines for procurement of products covered und er the revised Agreement 
and other international agreements and for procurement carried out in accordance with the 
agreements. As for the datails, please refer to the link below. 
https://japan.kantei.go.jp/101_kishida/documents/2022/_00030.html  
 
Page 75, Paragraph 3.154  
The report states that, in response to the COVID -19 outbreak and as part of the Emergency Response 
Package, Japan adopted several policies relating to governme nt procurement.  
 
Question  
Can Japan confirm if the application of these measures, in any way:  
preference domestic suppliers, or  
exclude foreign suppliers?  
 
Response  
In consideration of the need to prevent the spread of COVID -19, the government of Japan m ade 
flexible responses in government procurement such as extension of construction period of public 
construction works as a temporary measure for government procurement. The procedures of 
government procurement in Japan are consistent with the GPA and othe r international agreements 
and in these measures applied to the COVID -19 outbreak domestic suppliers and foreign suppliers 
are to be treated equally.  
 
Page 76, Paragraph 3.155  
The report states that there have been concerns over the apparently low share of foreign companies 
in government procurement; potentially partly due to non -regulatory barriers, the geographical 
distance from certain overseas markets, and a lack of knowledge of the local market.  
 
Question  
Is Japan taking any steps to share kno wledge around the local market, or assist other foreign 
companies by addressing any of the other concerns that have been raised (for example, through 
regulatory or policy means)?  
 
Response  
Procuring entities, including local governments, publish a summary notice in English, at the same 
time as the publication of the notice of intended procurement in Japanese. In addition, JETRO gathers 
information on procurements which are covered by the GP A, the Japan -EU Economic Partnership 
Agreement and the Japan -UK Comp rehensive Economic Partnership Agreement and posts it on its 
portal site. It also includes procurements by local governments.  JETRO posts procurement 
information in Japanese and its summar y in English on its portal site, in principle, no later than the 
end of next business day of publication. Thus, Japan disseminates information on government 
procurement in Japan. In addition, local governments also make the procedural rules for challenges 
in accordance with the GPA to address such complaints.  
 
Question  
Could Japan please provide any further context on the reasons for this relative lack of foreign 
participation?  
 
Response  
The procedures of government procurement in Japan are consistent with the GPA and other 
international agreements and designed  to treat domestic suppliers and foreign suppliers equally. In 
addition, JETRO gathers information on procurements which are covered by the GPA, the Japan -EU 
Economic Partnership Agreement and the Japan -UK Comprehensive Economic Partnership 
Agreement, and posts procurement information in Japanese and its summary in English on its portal 
site. Thus, Japan disseminates information on its government procurement and expects many 
domestic and foreign suppliers to actively participate in government procurement in  Japan.  
 WT/TPR/M/438/Add.1  
 
- 69 - 
 
  Page 77 -78, Paragraph 3.158  
The report states that the relevant guiding legislation to promote participation of SMEs in 
government procurement is the Act on Ensuring the Receipt of Orders from the Government and 
Other Public Agencies by Small and Medium Sized Enterprise Operators (Act No. 97 of 1966). The 
report further states that in 2021, the target value amount for the procurements from SMEs for 
central government and public corporations was set at JPY 4.8 trillion, or 61% of the total budget of  
public procurement spending.  
 
Question  
Can Japan please indicate whether the above Act defines SMEs, and if so, how does it define them? 
Is the definition limited to Japanese suppliers only?  
 
Response  
Yes. 
Article 2, paragraph 1 of the ""Act on Ensuring the Receipt of Orders from the Government and Other 
Public Agencies by Small and Medium -sized Enterprise Operators"" defines ""small and medium 
enterprises (SMEs)"" as follows  
 
(Definitions)  
Article 2 The term ""small and medium -sized enterprise o perator"" as used in this Act means a 
person who falls under any of the following items:  
 
(i) a company whose amount of stated capital or total amount of contribution is not more than 300 
million yen or a company or individual who does not employ more than  300 regular employees, and 
who operates, as a principal business, a manufacturing business, construction business, 
transportation business or any other type of business (excluding the types of business listed in the 
following item through item (ii) -3, and  the types of business specified by Cabinet Order as set forth 
in item (iii));  
 
(ii) a company whose amount of stated capital or total amount of contribution is not more than 100 
million yen or a company or individual who does not employ more than 100 regu lar employees, and 
who operates, as a principal business, a wholesale business (excluding the types of business 
specified by Cabinet Order as set forth in item (iii));  
 
(ii)-2 a company whose amount of stated capital or total amount of contribution is not more than 
50 million yen or a company or individual who does not employ more than 100 regular employees, 
and who operates, as a principal business, a service business (excluding the types of business 
specified by Cabinet Order as set forth in item (iii));  
 
(ii)-3 a company whose amount of stated capital or total amount of contribution is not more than 
50 million yen or a company or individual who does not employ more than 50 regular employees, 
and who operates, as a principal business, a retail business (ex cluding the types of business specified 
by Cabinet Order as set forth in the following item);  
 
(iii) a company whose amount of stated capital or total amount of contribution is not more than the 
amount specified by Cabinet Order for the type of business thereof or a company or individual who 
does not employ more regular employees than the number specified by Cabinet Order for the type 
of business thereof, and who operates, as a principal business, a business categorized as any of the 
types of bus iness specified by Cabinet Order; or  
 
(iv) a cooperative established under a special Act or a federation of such cooperatives which is 
specified by Cabinet Order, wherein two -thirds or more of the direct or indirect members fall under 
any of the preceding items, a joint enterprise cooperative or a joint business cooperative (hereinafter 
referred to as a ""cooperative"").  
 
Question  
If the definition of an SME does not include foreign suppliers, with the target value amount being 
significantly high (61%), ho w does Japan ensure fairness in regard to available procurements to its 
foreign suppliers?  
 WT/TPR/M/438/Add.1  
 
- 70 - 
 
Response  
Nationality is irrelevant.  
Even foreign companies are included as SMEs if they meet the definition.  
 
Intellectual property  
Report by the Secretariat (WT/TP R/S/438)  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.2 Policies on promotion and commercialization of innovation  
Page 82, Paragraph 3.170  
The Report states that in late 2021 JPO launched the Action Plan for Utilization of Intellectual 
Property by Small and Medium Enterprises and Startups. The report is available here in Japanese: 
https://www .meti.go.jp/press/2021/12/20211227002/20211227002.html . 
 
Question  
Is Japan able to share an English -language version of the Action Plan or an English -language 
summary?  
 
Response  
Unfortunately, the JPO cannot share it because we have not created its Englis h version and English 
summary.  
 
Page 82, Paragraph 3.172  
The Report states that in 2021, patent applications filed in Japan by smaller entities made up 
approximately 17.5% of total applications, compared with 0.3% in 2016.  
 
Question  
To what reasons does Japan attribute this increase in the share of patent applications originating 
from Small and Medium Enterprises?  
 
Response  
According to the survey conducted by the Japan Patent Office, the percentage of patent applications 
filed by SMEs in Jap an accounts for 15.2% in 2016 and 17.0% in 2021 of the total. During this 
period, the number of patent applications itself fluctuated between about 38,000 and about 40,000.  
 
Page 83, Paragraph 3.173  
The report states that, the JPO also seeks to harness AI technology for its own purposes: in 2022 it 
adopted a second six -year Action Plan for the Utilization of AI Technology to improve the efficiency 
and quality of its work.  
 
Question  
Welcome views on the utilization of AI technology to improve the efficiency  and quality of the JPO's 
work.  
 
Response  
In 2022, the JPO has formulated and announced the Action Plan for Utilization of Artificial Intelligence 
(AI) Technology (FY2022 -2026 edition) and published "Major Achievements of the Action Plan to 
Date". Based on  the Action Plan, JPO officials are verifying the utilization of AI in operations within 
our office. In the fields of examinations for Patent, Trademark, and Design, the development of tools 
assisting examinations utilizing AI are being conducted. The JPO aims to further improve efficiency 
and quality of examinations by providing these tools to examiners on a trial basis and improving the 
tools through feedback.  
 WT/TPR/M/438/Add.1  
 
- 71 - 
 
  Report by the Secretariat (WT/TPR/S/438)  
3. Trade Policies and Practices by Measure  
3.3 Measur es Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.13 Enforcement  
Page 98, Paragraph 3.227  
The report states that with respect to judicial proceedings, courts handling patent infringement 
disputes can now engage neutral technologica l experts to conduct and report upon on -site 
inspections of suspected infringement sites, and that since April 2022, courts hearing patent and UM 
infringement cases may solicit third -party opinions upon the motion of a party.  
 
Question  
With respect to pa tent infringement court hearings, does Japan know the number of cases a motion 
has been made by a party for a third -party opinion since the changes were introduced in April 2022 
and have they been considered to be effective? Further, how are third parties selected? Does the 
court apply a criteria or test for selecting an appropriate third -party for an opinion?  
 
Response  
We are not aware of the number of cases where a motion has been made by a party for a third -
party opinion because we have not kept official statistics.  
There are no criteria for selecting an appropriate third party to submit a written opinion, and anyone 
can submit a written opinion to the court. However, a written opinion submitted by a third party 
does not necessarily serve as evide nce. The parties shall be required to submit documentary 
evidence that they deem necessary after reviewing and copying the written opinion. The court can 
only base its judgment on a written opinion submitted as documentary evidence.  
 
Question  
Who is respo nsible for the costs of a third -party opinion? Is the cost incurred by the court, the party 
making the motion for the third -party opinion, or is it shared equally between all parties to the court 
hearing?  
 
Response  
Prepayment of fees for making the motion  and the costs is not required.  
 
Agriculture and fisheries  
Report by the Secretariat (WT/TPR/438)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.3 Trade policies and border measures  
Page 101, Paragraph 4.14  
The report states that according to its most recent notification on imports under tariff quotas (for 
FY2020/21) to the WTO Committee on Agriculture, Japan applies 20 tariff quotas (TQs) covering 112 
tariff lines at the HS six -digit level. Fill rates varied c onsiderably from one quota to another, ranging 
from 6.4% to 100%.  
 
Question  
Noting that the fill rate for Japan's TRQs  in the 2021 -22 fiscal year were in some cases as low as 3.8 
per cent and reached 100 per cent for only two of its twenty TRQs, and that these figures are 
indicative of long -term trends, could Japan please explain how this situation complies with the Bali 
Ministerial Decision of December 2013 (Understanding on tariff rate quota administration of 
agricultural products, as defined in Article 2 of the Agreement on Agriculture), specifically its 
requirement for Members to ensure that unfilled TRQs are not alloc ated through unnecessarily 
constraining administrative procedures (such as the simultaneous buy and sell (SBS) mechanism)?  
 
Response  
Japan's TRQs have been administered in a fair and transparent manner and fully complied with the 
Agreement on Import Licens ing Procedures and thus the Bali TRQ Decision in 2013. Please refer to 
MA1 notifications as well as Notification under Article 7.3 of the Agreement on Import Licensing 
Procedures (G/LIC/N/3/JPN/21) regarding details of the administration of each TRQ.  
 WT/TPR/M/438/Add.1  
 
- 72 - 
 
Ques tion  
Could Japan please explain how its SBS system is responsive to market conditions? We consider that 
one of the elements of market responsiveness is that the mark -up is set at a level which allows 
Japanese importers to buy commodities at the cheapest available price on the international market. 
It seems that the minimum purchase price is often set at a level which prevents this. Could Japan 
please explain the formula used to calculate the mark -up, so that Members can be satisfied that the 
mark-up properly correlates with the fluctuations in international prices?  
 
Response  
Regarding rice, wheat and barley, certain amount of their quotas is imported under the SBS system 
to meet specific needs for these products, where a user and an importer joint ly participate in tenders 
held by MAFF. The minimum mark -up for rice, the minimum planned sale price, and the planned 
purchase price are all related to the planned bid price, and therefore those cannot be disclosed under 
the accounting laws and regulations  in Japan although they are set appropriately considering the 
product's domestic demand and supply situation, world markets, foreign exchange rates, freight, 
etc. in accordance with the WTO agreement.  
 
Report by the Secretariat (WT/TPR/S/438)   
4 Trade Poli cies by Sector   
4.1 Agriculture, Forestry, and Fisheries   
4.1.1 Agriculture   
4.1.1.4 Domestic support programmes   
4.1.1.4.1 General support programmes   
Page 103, Paragraph 4.26   
The report states that in FY2020, a wheat, barley and soybean profitability an d productivity 
improvement project was introduced with a view to improving productivity of these three crops. The 
project aims to facilitate information -sharing with and the provision of research outcomes to 
producers.  
 
Question  
Could Japan please confirm which sections of its FY2020 and FY2021 DS:1 and DS:2 notifications 
contained the expenditures for this measure?  
 
Response  
The measure is classified in the last DS1 notification for FY2020 as the "(d)extension and advisory 
services" of "general ser vice", in the Annex 2, Paragraph 2(d) of the Agreement on Agriculture and 
it was conducted as an expansion of existing extension and advisory service programme. Japan is 
now working on DS1 notification for FY2021.  
 
Report by the Secretariat (WT/TPR/S/438)  
4 Trade Policies by Sector   
4.1 Agriculture, Forestry, and Fisheries   
4.1.1 Agriculture   
4.1.1.4 Domestic support programmes   
4.1.1.4.4 Specific products  
4.1.1.4.4.4 Livestock and livestock products   
Page 107, Paragraph 4.44   
The report states that the pri vate sector freely imports feed grains (barley and wheat) but that 
importers must go through special import procedures to do so. Namely, they must pay customs 
duties plus special import fees to a regional agricultural administration bureau. Once the bureau  
issues the receipt of the payment, importers must submit the receipt to the customs agency as a 
part of its import declaration.   
 
Question  
Could Japan please provide further information about the special import fees payable to the regional 
agricultural administration bureau for imported feed grains, including the rationale for these fees, 
the amount that must be paid, and whether those payments are on a per shipment basis or  a 
percentage of the product's import value/price?  
 
Response  
Accordi ng to Article 13.4 of enforcement ordinance of the Act for Stabilization of Supply Demand 
and Prices of Staple Food, payment of the special import fees will be waived when importing feed WT/TPR/M/438/Add.1  
 
- 73 - 
 
  barley and feed wheat, that receive preferential treatment under Japa n's Economic Partnership 
Agreements (EPAs). Since Australia and Japan signed an EPA, no special import fees are applied to 
imported feed barley and wheat from Australia.  
 
Report by the Secretariat (WT/TPR/S/248)  
4. Trade Policies by Sector  
4.1 Agriculture Fisheries and Forestry  
4.1.2 Fisheries  
4.1.2.1 Policy and institutional issues  
Page 107, Paragraph 4.48  
The report states that the revised Basic Plan for Fisheries aims to achieve a set of self -sufficiency 
targe ts by 2032. These include 94% for fisheries for food, 76% for the total fisheries and 72% for 
seaweed. The report also indicates that Japan will utilise measures to discourage illegal, unreported 
and unregulated fishing.  
 
Question  
What are the existing se lf-sufficiency ratios for fisheries, and what impact are the new targets likely 
to have on the import/export of seafood products into/out of Japan? Are there any seafood products 
(for example, salmon or abalone) more likely to be affected by the 2032 targe ts? 
 
Response  
The self -sufficiency ratios for FY2021 are 59% for fisheries for food, 57% for the total fisheries and 
69% for seaweed. To achieve the self -sufficiency targets Japan aims to recover the fisheries 
production by promoting new resources manageme nt system and to increase the production of the 
specific aquaculture items such as salmon.  
 
Question  
What additional measures will Japan utilise to discourage illegal, unreported and unregulated fishing?  
 
Response  
Japan will continue to implement the foll owing measures to deter IUU fishing;  
 
- Promoting dialogues and cooperation with relevant countries through bilateral and multilateral 
frameworks such as RFMOs and PSMA  
 
- Providing support to developing countries through ODA  
 
- Implementing schemes under "Act on Ensuring the Proper Domestic Distribution and Importation 
of Specified Aquatic Animal and Plants", which entered into force on December 1, 2022, to prevent 
products derived from IUU fishing from entering into the distribution channel in Japan . 
 
- Implementing other actions in line with international instruments on counter -IUU measures, such 
as IPOA -IUU and PSMA.  
 
In addition, Japan actively implements MCS measures in the high  seas adjacent to  
 
its EEZ and shares relevant information with flag states, RFMOs and/or through the information 
exchange frameworks such as that of PSMA, as appropriate, when its inspection vessels identify IUU 
fishing activities.  
 
Regarding alleged violation cases by domestic fishing vessels, Japan, in accordance with it s laws and 
regulations, investigates the cases any alleged violation, and when the alleged violation is confirmed, 
it imposes sanctions on the vessel in question such as suspension of the license and detainment of 
the vessel.  
 WT/TPR/M/438/Add.1  
 
- 74 - 
 
Report by the Secretariat (WT /TPR/S/248)  
4. Trade Policies by Sector  
4.1 Agriculture Fisheries and Forestry  
4.1.2 Fisheries  
4.1.2.1 Policy and institutional issues  
Page 49, Table 3.4, Row 2, Column 4  
The report states that Marine animals and their preparations; fish, crustaceans, oth er aquatics and 
their preparations; products of animal origin (marine animals, fish, crustaceans and molluscs); and 
seaweeds and their preparations are all subject to import licensing, and that the rational is to prevent 
adverse effects on fishing activiti es of Japanese fishers.  
 
Question  
How does Japan use import licensing to prevent adverse effects on fishing activities of Japanese 
fishers?  
 
Response  
This import licensing system applies only to fishery products that are loaded at sea. IUU fisheries 
are threat to properly managed Japanese fisheries. To prevent IUU's adverse effect on the Japanese 
fisheries management, Japan checks, through this system, legality of the fishery products when 
products that are loaded at sea are intended to be imported.  
 
Food  assistance  
Report by the Secretariat (WT/TPR/S/438)   
5 Appendix tables   
Table A4.5 Food assistance FY2017 -FY2020   
Page 143, Table A4.5   
Table A4.5 lists food assistance provided during FY2017 -FY2020 as including commodities such as 
rice, coarse grains, skim milk powder, sugar, vegetables, vegetable oils, wheat, and wheat flour, 
depending on the year. In Japan's DS:1 notifications for the same period, domestic food aid lists 
only 'school lunch programmes: supply of milk for school children at subs idized prices'.   
  
Question  
Could Japan please advise which sections of its FY2017 -FY2020 DS:1 notifications contained the 
expenditures for the food assistance listed in Table A4.5 of the report?  
 
Response:  
Agricultural products served for international f ood aid are procured at the market price in the 
domestic market including those imported. Japan considers that its expenditures listed in the table 
A4.5 of the Secretariat report are not regarded as domestic support.  
 
Question  
Could Japan please provide f urther information relating to the type of domestic food aid it provided 
to its domestic population during this period? Specifically, which and how much of the other 
agricultural products listed on in table A4.5, besides milk, were distributed as part of i ts domestic 
food aid program?  
 
Response  
Agricultural product subject to the domestic food aid programme is milk only, as indicated by the 
recent DS1 notifications.  
 
Other (not linked to the reports)  
Question  
Following the announcement made by Prime Minist er KISHIDA on 2 September 2022, proposing to 
move some food safety functions from Ministry of Health, Labour and Welfare to the Consumer 
Affairs Agency (CAA), could Japan provide details on this transition (such as which divisions and 
changes in resourcing )? How will CAA ensure it continues to promote transparency and scientific 
backing as the basis for food safety risk management?  
 
Response  
1. Based on the Food Safety Basic Act enacted in 2003, Japan's food safety administration takes 
necessary measures t o ensure food safety based on scientific knowledge, while giving due WT/TPR/M/438/Add.1  
 
- 75 - 
 
  consideration to international trends and public opinions, in order to prevent adverse effects on 
people's health (Article 5 of the Food Safety Basic Act).  
 
2. The Consumer Affairs Agency  has unified jurisdiction over the food labeling system, and the Act 
for Establishment of the Consumer Affairs Agency clearly states that it functions as a control tower 
for food safety administration within the government. These are being carried out by t he current 
Consumer Affairs Agency.  
 
3. As part of efforts to strengthen the ability of the Ministry of Health, Labour and Welfare  (MHLW) 
to respond to infectious diseases, the transfer of the jurisdiction on the administration of food safety 
standards fro m the MHLW to the Consumer Affairs Ag ency in Fiscal Year 2024 was announced on 
September 2, 2022.  
 
4. To ensure that necessary measures are taken based on scientific knowledge according to the 
principles of the Food Safety Basic Act, even after the transf er of the administration of food safety 
standards to the Consumer Affairs Agency, we are considering the development of related laws and 
organizational structure, including the establishment of a Council (an expert group) in the Consumer 
Affairs Agency.  
 
5. In addition, administration of food safety surveillance, including safety measures on imported 
foods, will continue to stay in the MHLW as it is now.  
The number of women workers has increased by approximately 3.3 million from 2012 to 2021, and 
the numb er of women executives of listed companies increased 5.8 times from 2012 to 2022. In 
addition, the employment rate of women in the child raising period (aged 25 to 44) has increased 
from 67.7% in 2012 to 78.6% in 2021, and the percentage of women in manage ment positions 
(private companies with 100 or more employees) increased from 14.4% to 20.7% for section chief 
level, from 7.9% to 12.4% for director level, and from 4.9% to 7.7% for department manager level 
between 2012 and 2021. Furthermore, the rate of w omen continuing to work after having their first 
babies has increased from 38.0% in 2011 to 53.1% in 2016.  
 
  WT/TPR/M/438/Add.1  
 
- 76 - 
 
8  CHILE  
WT/TPR/G/438 – Informe de Gobierno de Japón  
(WT/TPR/G/438)  
3 INICIATIVAS MULTILATERALES  
3.1 OMC  
3.14 Las mipymes y el comercio  
Párrafo 3.14 página 9  
"El Japón reconoce que las mipymes desempeñan un papel importante en el comercio internacional. 
El Acuerdo alcanzado entre el Japón y Singapur en 2002 fue el primer ACR con un capítulo 
independiente sobre las mipymes, y posteriormente  el Japón firmó cuatro ACR más con capítulos 
independientes sobre las mipymes: el Tratado Integral y Progresista de Asociación Transpacífico 
(CPTPP), el Acuerdo de Asociación Económica entre el Japón y la UE, el CEPA entre el Japón y el 
Reino Unido y la RC EP. Además de estos ACR con capítulos independientes sobre las mipymes, el 
Japón ha concluido hasta la fecha 12 ACR con disposiciones relativas a las mipymes, de modo que 
alrededor del 90% de los ACR que mantiene en vigor o ha firmado contienen disposicion es 
relacionadas con las mipymes ". 
Pregunta  
En el párrafo 3.14, se destaca la importancia que tienen las mipymes para Japón en el comercio 
internacional. En este sentido, se destaca que Japón cuenta con cinco ACR con un capítulo 
independiente sobre las mipy mes. Al respecto, Chile agradecería si Japón puede compartir los sitios 
web que se han creado para la implementación de los ACR mencionados.  
Response  
As per your request, please find below the relevant websites for your reference.  
https://www.mofa.go.jp/ecm/ep/page23e_000533.html  
https://www.mofa.go.jp/ecm/ie/page23e_000546.html  
https://www.mofa.go.jp/ecm/ie/page24e_000273.html  
6 POLÍTICAS INTERNAS DEL JAPÓN  
6.3 Derechos de propiedad intelectual  
Párrafo 6.9 página 18  
"6.9. En junio de 2022, la Oficina Central de Estrategia de la Propiedad Intelectual también adoptó 
el Programa Estratégico sobre Propiedad Intelectual para 2022. En la fase inicial del Programa, nos 
ocupamos del reconocimiento básico de la situación actua l del Japón, que debe tenerse en cuenta 
en las estrategias de propiedad intelectual. En el futuro, se resumirán en ocho políticas prioritarias 
las cuestiones y medidas de política importantes para promover las estrategias de propiedad 
intelectual: 1) mejor ar el ecosistema de la propiedad intelectual de las empresas 
emergentes y las universidades ; 2) fortalecer el mecanismo de promoción de las inversiones en 
ese ámbito y la utilización de la propiedad intelectual y los activos intangibles; 3) promover la 
utilización de estrategias normalizadas; 4) mejorar la distribución de datos y la utilización del 
entorno para lograr una sociedad digital; 5) estrategias de contenido en la era digital; 6) mejorar 
la utilización de la propiedad intelectual en las pymes, las regiones (zonas) y las ciencias 
agrícolas ; 7) fortalecer los sistemas, las operaciones y los recursos humanos que apoyan la 
utilización de la propiedad"  
Pregunta  
En el párrafo 6.9 se mencionan el Programa Estratégico sobre Propiedad Intelectual para 2022,  en 
el cual se contempla para el futuro 8 políticas prioritarias sobre las cuestiones y medidas de 
propiedad intelectual, en particular se indica en el numeral 1)  mejorar el ecosistema de la 
propiedad intelectual de las empresas emergentes y las universidades  y en el numeral 6) 
mejorar la utilización de la propiedad intelectual en las pymes, las regiones (zonas) y las 
ciencias agrícolas . 
Al respecto, Chile agradecería si Japón puede indicar la definición o alcance del concepto de 
"empresas emergen tes" (numeral 1) que se utilizará para tales efectos. Asimismo, Chile agradecería 
si Japón puede entregar mayores antecedentes sobre las acciones o iniciativas que se contemplarán 
para mejorar la utilización de la propiedad intelectual en las pymes (numera l 6). WT/TPR/M/438/Add.1  
 
- 77 - 
 
  Response  
With regard to the priority policy (1), the term "emerging companies" (or "start -ups") in this context 
includes not only companies that have been working on innovative businesses soon after their 
founding, commonly called as "start -ups", but  also SMEs that are promoting innovative initiatives 
(see footnote 1 on p. 14 of the Intellectual Property Strategic Program 2022).  
With regard to the priority policy (6), as an example of relevant measures, the Japan Patent Office 
has established consulta tion offices nationwide, provides support for IP -related expenses and holds 
events across Japan to highlight advanced initiatives.  
(Reference)  
- Intellectual Property Strategic Program 2022 (provisional translation): 
https://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20221114_e.pdf  
WT/TPR/S/438 – Informe de Secretaría OMC  
1 ENTORNO ECONÓMICO  
1.2 Evolución económica reciente  
1.2.2 Política Fiscal  
Párrafo 1 .8. Página 17  
"Además de la pandemia, el envejecimiento de la población tiene una repercusión importante en la 
situación fiscal del Japón. El gasto social público se duplicó con creces entre 1991 y 2020, ya que 
pasó del 11% al 25% del PIB. En torno al 80% de ese gasto se dedica a las pensiones, la atención 
sanitaria y los cuidados a largo plazo, lo que representa uno de los porcentajes más elevados de la 
OCDE. Es probable que las consecuencias del envejecimiento de la población y la creciente presión 
fiscal debida al gasto en seguridad social sin la adopción de medidas correctivas pongan en riesgo 
la sostenibilidad. Según las proyecciones oficiales actuales, se prevé que el gasto en atención 
sanitaria y cuidados a largo plazo, impulsado en gran medida por el  envejecimiento de la población, 
aumente en 3 puntos porcentuales del PIB para 2040 y el gasto en seguridad social en 2,5 puntos 
porcentuales. Otro factor de presión sobre las finanzas públicas es la voluntad de alcanzar los 
objetivos de reducción a cero d e las emisiones netas de gases de efecto invernadero para 2050".  
 
Pregunta  
En relación con el párrafo 1.8 sobre la política fiscal y el gasto social, particularmente, en torno al 
envejecimiento de la población y los cuidados a largo plazo. Chile agradecerí a si Japón puede 
referirse al alcance del concepto "largo plazo", además, si pudiera indicar ejemplos de programa/s 
que se encuentren en el alcance de cuidados a largo plazo.  
Response  
・In the long -term care insurance system, insured persons are (1) persons aged 65 and over 
(primary insured person), and (2) medical insurance subscribers aged 40 to 64 (secondary insured 
person).  
・Long-term care services can be used by the insured persons of (1) and (2) after being certified 
Needed Support/ Needed Long -Term Care from the municipality.  
(1) Persons who are 65 years old or older and have become in condition of Need Support/ Need 
Long-Term Care regardless of the cause.  
(2) Persons between the ages of 40 and 64 who have become in condition of Need Support/ Ne ed 
Long-Term Care due to age -related physical and mental changes (terminal cancer, rheumatoid 
arthritis, etc.).  
・The long -term care insurance system offers a variety of long -term care services. They can be 
roughly classified into two types: in -home service s, such as home -visits and day -care services, and 
facility services, such as nursing home.  
・In addition to these services, we also have "community support projects" administered by local 
governments, aimed at providing the daily life support and long-term care for retarding the aging 
process of those not being certified but requiring minimal care.  WT/TPR/M/438/Add.1  
 
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1.2.4 Reformas estructurales y privatización  
Párrafo 1.14. Página 18  
"Desde 2013, las principales reformas han sido las siguientes: i) la estabilización  del volumen de la 
mano de obra mediante el fomento de la participación de las mujeres y las personas mayores; ii) la 
mayor integración del Japón en la economía mundial mediante acuerdos comerciales; y iii) la mejora 
del clima empresarial gracias a una gob ernanza empresarial más eficaz, a una mayor flexibilidad y 
movilidad laborales, a la promoción de la inversión en capital de riesgo y a la mejora de las políticas 
destinadas a las pequeñas y medianas empresas".  
 
Pregunta  
En el párrafo 1.14 se menciona com o una de las principales reformas estructurales y privatización, 
la estabilización del volumen de la mano de obra mediante el fomento de la participación de las 
mujeres y las personas mayores. Al respecto, Chile agradecería si Japón puede referirse de qué 
manera se fomenta la participación de las mujeres como mano de obra. Además, Chile agradecería 
saber si existen incentivos en torno esta participación, y de ser así, cual/es serían.  
Response  
We legislated the Act on the Promotion of Women's Active Engageme nt in Professional Life to obligate 
the employers with more than 300 regular employees to formulate gender gender equality action 
plans and disclose information on women's activity. Moreover, the obligation has been extended to 
employers with 101 or more p ermanent employees since April 2022.  
And we are addressing on making environment in which it is easy for women who are caring for 
children or elderly family members to work and providing environment where it is easy to take leave 
and improve childcare serv ices. 
4 POLÍTICAS COMERCIALES, POR SECTORES  
4.3 Manufacturas  
4.3.2 Evolución de las políticas  
Párrafo 4.89, p. 125.  
"En el ejercicio fiscal 2020, el METI puso en marcha un programa de subvenciones destinado a 
ayudar a las empresas manufactureras a invertir  a nivel nacional en la creación de bases de 
producción de productos y materiales esenciales. Entre los productos y materiales objetivo del 
programa figuran los que, según se considera, se producen en gran medida en el extranjero y 
plantean riesgos en caso  de perturbación de la cadena de suministro (categoría A), y los que se 
consideran esenciales para el bienestar de la población, como las mascarillas quirúrgicas, los equipos 
de pruebas de la COVID -19, las agujas de vacunación y las jeringas (categoría B).  Posteriormente, 
el METI añadió dos nuevas categorías: una de ellas está destinada específicamente a las pymes que 
tienen previsto producir piezas y materiales necesarios para producir productos que puedan verse 
afectados por perturbaciones de la cadena de  suministro mundial; la otra tiene por objeto estabilizar 
el suministro de materias primas perturbado por la guerra en Ucrania. La cuantía máxima de la 
subvención a un proyecto que cumpla los requisitos para acogerse a este programa en la categoría 
específ ica de las pymes era de JPY 500 millones; en el caso de las demás categorías, la cuantía 
máxima era de JPY 15.000 millones. El METI realizó tres procesos de selección distintos entre mayo 
de 2020 y mayo de 2022 y aprobó 439 proyectos en total. En ese mismo  ejercicio fiscal, el METI 
también puso en marcha un programa de subvenciones destinado a aumentar la resiliencia de la 
cadena de suministro entre el Japón y los países de la ASEAN. La cuantía del presupuesto asignado 
a ese programa en el ejercicio fiscal 2020 fue de JPY 35.200 millones. La subvención tenía por objeto 
apoyar a las empresas establecidas y que operen en el Japón para que inviertan en los países de la 
ASEAN a fin de establecer nuevas instalaciones de producción. El METI realizó cinco procesos de 
selección distintos entre mayo de 2020 y junio de 2022 y aprobó 103 proyectos en total. El 29 de 
agosto de 2022 se inició una nueva convocatoria de propuestas (la sexta ronda), y la decisión en lo 
que respecta a la selección de proyectos está prevista p ara finales de diciembre de 2022"  
Pregunta  
En relación con el párrafo 4.89, sobre la puesta en marcha de un programa de subvenciones 
destinadas a ayudar a las empresas manufactureras a invertir a nivel nacional en la creación de 
bases  de producción de productos y materiales esenciales. Chile agradecería a Japón que pueda 
indicar si ha considerado la posibilidad de potenciar cadenas de valor, incluidas las cadenas de 
suministros, con los países de América Latina, especialmente en su rel ación con Chile y el Tratado 
de Libre Comercio vigente.  
Response:  WT/TPR/M/438/Add.1  
 
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  The purpose of this project is to support companies in selecting the most appropriate initiatives to 
strengthen their supply chains when securing a domestic production base.  
There are no fac ts that supply chains in specific countries or regions  were taken into account.  
4.4 Servicios  
4.4.2 Servicios de telecomunicaciones  
 
Párrafo 4.113, p. 133.  
"La Ley de Protección de la Información Personal se modificó en junio de 2020 y entró en vigor en 
abril de 2022. La Ley modificada establece, entre otras cosas, las obligaciones que corresponden a 
los operadores que manejan información personal y que transfieren datos personales a un tercero 
fuera del Japón. En virtud de la Ley, los operadores deben ob tener la autorización de los propietarios 
de los datos para transferir esos datos al extranjero. Están obligados a facilitar información sobre el 
país donde se transfieren los datos, el sistema de protección de la información personal en el país 
de destino  e información detallada sobre las medidas de protección que aplican los operadores que 
reciben los datos. Asimismo, los operadores están obligados a asegurar que los operadores 
receptores manejen los datos transferidos de conformidad con la reglamentación  pertinente. A fin 
de hacer cumplir estas obligaciones, la Comisión de Protección de la Información Personal (PIPC) 
está facultada para emitir órdenes dirigidas a las empresas extranjeras y nacionales, e imponer 
sanciones penales por el incumplimiento de e sas órdenes. Dado que es difícil aplicar esta 
reglamentación fuera del Japón, la PIPC está autorizada para colaborar con los organismos de 
reglamentación extranjeros a los efectos de que se aplique la Ley de Protección de los Datos 
Personales. La Ley refue rza las obligaciones de información y notificación que incumben a los 
operadores en los casos de vulneración de los datos. La PIPC ha publicado unas directrices para la 
aplicación de la Ley".  
Pregunta  
En relación con el párrafo 4.113, sobre la modificación  de la "Ley de Protección de la Información 
Personal" en 2020, que entró en vigor en 2022, y que establece obligaciones de protección para los 
operadores que manejan información personal y transfieren datos personales a un tercer operador 
en un tercer país . Al respecto, Chile agradecería si Japón puede aclarar si estas obligaciones también 
se aplican a las empresas de telecomunicaciones que transmiten dichos datos o solo a los 
titulares/propietarios de los datos.  
Response  
If a telecommunications carrier tha t is a business operator handling personal information provides 
its personal data that the telecommunications carrier "handles" to a third party located in a foreign 
country, the regulations on restrictions on provision to third parties in a foreign countr y apply.  
This would be determined on a case -by-case basis. However, when a business operator transmits 
personal data using the means of communication provided by a telecommunications carrier to 
transmit personal data, the telecommunications carrier usually  does not "handle" the personal data 
as normally the telecommunications carrier only provides the means of communication and would 
not know the details of the contents of the communications transmitted. Therefore, it is considered 
that the regulations on r estrictions on provision of personal data to third parties in a foreign country 
do not apply to such telecommunications carriers.  
  WT/TPR/M/438/Add.1  
 
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9  ICELAND  
- What is the participation of women in the economy of Japan?  
 
Response  
The number of female workers has increased by  approximately 3.3 million from 2012 to 2021, and 
the number of female executives of listed companies increased 5.8 times from 2012 to 2022. In 
addition, the employment rate of women in the child raising period (aged 25 to 44) has increased 
from 67.7% in 2 012 to 78.6% in 2021, and the percentage of women in management positions 
(private companies with 100 or more employees) increased from 14.4% to 20.7% for section chief 
level, from 7.9% to 12.4% for director level, and from 4.9% to 7.7% for department mana ger level 
between 2012 and 2021. Furthermore, the rate of women continuing to work after having their first 
babies has increased from 38.0% in 2011 to 53.1% in 2016.  
 
- Have specific barriers that limit women's participation in trade been identified?  
 
Response  
As stated in the Fifth Basic Plan for Gender Equality formulated in December 2020, the delay in 
gender equality, not only in trade, is thought to be due to labor p ractices, including the wage gap 
between men and women, and a sense of gender roles based on stereotypes.  
  
- Has Japan implemented any specific measures to encourage women's participation in trade 
and promote women's entrepreneurship, or are such measures being developed?  
 
Response  
The Japanese government has established a nationwide network of information exchange and 
collaboration to support women who want to start their own businesses. As of February 2023, 
approximately 290 organizations are par ticipating. In addition to this, the Japan Finance Corporation 
(JFC) offers loans at low interest rates to women entrepreneurs.  
 
- Are the effects of trade policy on women and men measured and monitored, and if so, how?  
 
Response  
The impact of trade policies  on men and women has not been monitored.  
 
  WT/TPR/M/438/Add.1  
 
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  10  SWITZ ERLAND  
Report by the Secretariat (WT/TPR/S/438)  
2 TRADE AND INVESTMENT REGIMES  
2.1 General Framework  
 
Question 1  
Para. 2.3 mentions Japan's new Economic Security Promotion Act, adopted in May 2022, which 
notably provides for a framework for ensuring a stable supply of "key products" and "essential 
infrastructure services". The report also mentions that implementing r egulations are under 
preparation. Could Japan elaborate on the kind of measures that are envisaged by this new Act? 
Which sectors are concerned?  
Response  
The Chapter for Ensuring Stable Supply of Specified Critical Products (Economic Security Promotion 
Act Capter 2) provides a framework to support efforts by private businesses to ensure stable supply 
of specified critical products.  
In order to ensure that the measures taken by the government to secure stable supply of specified 
key products are appropriate and uniform, the government shall formulate Guiding Principles on 
Ensuring Stable Supply of Specified Key Products (hereinafter referred to as the "Guidi ng Principles 
on Ensuring Stable Supply") (Economic Security Promotion Act Article 6). The Guiding Principles on 
Ensuring Stable Supply shall include matters such as the basic direction for ensuring stable supply 
of specified key products, matters concerni ng measures to be implemented by the government for 
ensuring stable supply of specified key products, matters concerning the designation of specified 
key products.  
"Specified critical products" are defined as critical products which are vital for the survi val of the 
people or on which their daily lives or the economic activities depend, and of which stable supply is 
particularly necessary to prevent a situation in which the security of the nation and its citizens is 
undermined due to outside actions when th e critical products or their materials, etc. are excessively 
reliant or are likely to be reliant on outside sources.  
If a critical product is designated as "specified critical products" by Cabinet Order, the competent 
minister will formulate policies on in itiatives to ensure stable supply of specified critical products or 
their raw materials, etc. (Economic Security Promotion Act Article 8).  
Business entities may elaborate plans related to initiatives (such as reinforcement of production 
base, diversificati on of supply sources, stockpiling, development of production technology and 
development of alternative products) for ensuring stable supply of specified critical products or their 
raw materials, etc. and apply those plans to the competent minister for its approval. Approved 
companies may receive supports such as support through subsidies, special exception to the Japan 
finance corporation act (two -step loans).  
In last December, the government designated 11 specified critical products which are 
semiconductor s, batteries, permanent magnets, critical minerals, machine tools and industrial 
robots, aircraft parts, computer programs used for cloud service, combustible natural gas, antibiotic, 
fertilizer and marine equipment, for which stable supply is to be ensure d.  
As for a framework for ensuring a stable supply of "essential infrastructure services", the competent 
minister with jurisdiction over "specified essential infrastructure business" may pre -screen 
installation of key facilities or outsourcing of maintena nce/management, etc. for key facilities to be 
performed by the specified essential infrastructure providers. When finding a significant risk that the 
key facilities, etc. may be misused as a means of disruption, the competent minister for essential 
infrast ructure business may recommend or order the specified essential infrastructure providers to 
take the necessary measures or cancel the installation, etc.  
Applicable sectors are: Electricity, Gas, Oil, Water works, Railway, Truck transport, International 
maritime cargo, Aviation, Airports, Telecommunications, Broadcasting, Postal services, Financial 
services and Credit cards.  WT/TPR/M/438/Add.1  
 
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3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1 Customs procedures, valuation, and requirements  
 
Question 2  
According to para 3.4, cus toms charge fees for certain services such as issuing certificates. For what 
type of certificates do customs charge fees? Does this include certificates of origin?  
Response:  
In accordance with the provisions of laws and regulations, it is necessary to pay a fee when 
requesting the issuance of a certificate of documents submitted to the customs office for the purpose 
of obtaining permits, approvals or notifications and kept by the customs authorities, and when 
requesting the issuance of a certificate of what  can be confirmed as the scope of customs affairs too.  
For example, customs clearance certificates, tax payment certificates, and original certificates of 
documents issued by customs.  
Certificates of Origin is not a document issued by customs. Therefore, it is not necessary to pay any 
fees to customs.  
 
3.1.2 Customs valuation  
3.1.3 Rules of origin  
 
Question 3  
In para 3.14, on which webpage can the non -preferential rules of origin be consulted?  
Response  
For the non -preferential rules of origin in Japan, please refer to the following webpage.  
https://www.customs.go.jp/roo/english/origin/outline_of_roo.pdf  
 
Question 4  
Para 3.16. describes the origin criteria for the application of MFN tariff rates. Are these the same 
rules as the non -preferential rules of origin mentioned in 3.14? If not, in which legislation or 
publication can these rules be consulted?  
Response  
As your understanding, the rules described in para 3.16 are the same rules as the non -preferential 
rules of origin.  
 
3.1.4 Tariffs  
 
Question 5  
In para 3.22, could you please explain what are differential duties and sliding duties?  
Response  
2 differential duties  
Under the differential duty system, the difference between the "standard import price" and "actual 
import price" is imposed when the import price is lower than the gate price; ad valorem tariff is 
charged when the import price is above the gate price; besides, only specific rate is charged when 
the after -tax price is lower than the "standard import price"*.  
* Calculation for "standard import price" is, the gate price times ad valorem tariff rate.  
2 sliding duties  
Under the sliding duty system, adjust tariff rates according to the price range of i mported goods to 
coordinate the interests of domestic producers and consumers.  
It has a mechanism to adjust (slide) the tariff rate in the price range around the duty -free point 
price (the lowest price at which the tariff rate is changed to duty -free) to p revent price reversal after 
taxation.  
 
Question 6  
In para 3.22, could Japan provide the national tariff lines and the MFN applied rates for the 4 
differential duties and 4 sliding duties mentioned in paragraph 3.22?  WT/TPR/M/438/Add.1  
 
- 83 - 
 
  Response  
 (4) differential duties  
1. Per each, the difference between the standard import price of live swine and the value for 
customs duty  
 -010392012  
2. Per each kilogram, the difference between the standard import price of pig carcass and the 
value for customs duty  
 -020311031,020311032, 020321031, 020321032,  
3. Per each kilogram, the difference between the standard import price of partial pig and the value 
for customs duty  
 - 
020312024,020312025,020319024,020319025,020322024,020322025,020329024,020329025,02
0630094,0 20630095,020649094,020649095  
4. Per each kilogram, the difference between the value obtained by multiplying the standard 
import price of processed pig by 1.5 and the value  
 -021011010,021012010,021019010,021099011,160241011,160242011,160249210  
 
(4) sliding  duties  
1. Onions and shallots (HS:0703.10)  
 - 070310011:8.5% ，070310012:8.5% or (73.70 yen - the value for customs duty)/kg, whichever 
is the less ，070310013: Free  
2. Copper （HS:74） 
 - 740200010:3% or 15 yen/kg ，740200020:3% or (490 yen - the value for custom s duty)/kg ，
740200030: Free  
 - 740311010,740312010,740313010,740319021:3% 15 yen/kg ，
740311020,740312020,740313020,740319021,740319029: 3% or (500 yen - the value for 
customs duty)/kg, whichever is the less ，740200020,740311030,740312030,740319030: Free  
3. Lead（HS:78） 
 - 780110010,780199221:2.7 yen/kg ， 
780110020,780199222:2.7 yen/kg or (180 yen - the value for customs duty)/kg, whichever is the 
less，780110030,780199223: Free  
 - 780191010,780199211:2.8% ，780191020,780199212:2.8% or (170 yen - the value for custo ms 
duty)/kg, whichever is the less ，780191030,780199219: Free  
4. Zinc（HS:79） 
 - 790111010,790112010:4.3 yen/kg ，790111020,790112020:4.3 yen/kg or (250 yen - the value 
for customs duty)/kg, whichever is the less ，790111030,790112030: Free  
 
Question 7  
Para 3.29 states that " unbound lines relate mainly to fisheries (fish, crustaceans, and seaweed), 
petroleum oils, and wood and articles thereof ." Could Japan indicate for each goods the reason why 
they are unbound?  
 
Response  
Unbound tariffs have been imposed on  certain fishery products important for the Japanese economy 
to prevent price fluctuations in the domestic market due to import surges.  
Since the Uruguay Round, petroleum oil, which fluctuates greatly, has been unbound to maintain its 
continuous and stable  supply and to respond the price fluctuations adjusting tariffs flexibly. 
Petroleum oil accounts for about 40% of Japan's primary energy supply and it is important for Japan 
to secure its stable supply.  
There are also some unbound tariff lines for wood and  wood products in the HS44 but their applied 
tariff rates have been zero and no interest of binding have shown to them.  
Question 8  
According to para 3.31, Article 12 of the Customs Tariff Act provides for duty reductions/exemptions 
for "other goods that ar e deemed closely related to people's daily lives ". Could Japan provide an 
exhaustive list of these goods and indicate whether they are currently subject to duty reductions or 
reductions and what is their current duty rate?  WT/TPR/M/438/Add.1  
 
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Response  
Although the goods are stipulated in Article 12(1) of the Customs Tariff Act as "Imported rice, hulled 
or unhulled, barley or wheat falls under any of the following case"; and in paragraph 2 of the same 
Article, "foodstuffs, apparels, other goods which are  closely related to the people's daily lives 
(excluding those goods specified in the preceding paragraph) and which are imported" , no items 
are currently designated and no decree to operate has been established. Therefore, there is no 
information that can  be provided.  
 
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.1 Sanitary and phytosanitary measures  
 
Question 9  
In pages 65 -68 regarding import restrictions due to BSE. Could Japan explain in detail the reasons 
why it has still not lifted its import restrictions on Swiss beef products (at least not for beef from 
cattle above the age of 30 months), although the BSE crisis dates back two decades? Switzerland is 
recognized by the World Organization for Animal Health WOAH (former OIE) as a country having 
negligible BSE risk for more than a decade. When will Japan lift these import restrictions against 
Swiss beef products, in conformity with the SPS Agreement?"  
Response  
The SPS Agreement requires that the SPS measures taken by WTO members are based o n scientific 
principles. As for BSE regulations, MHLW commissions risk assessment to Food Safety Commission 
of Japan (FSCJ) taking into account the WOAH (former OIE) evaluation.  
As for Switzerland, import of beef from cattle below the age of 30 months to J apan resumed in July 
2016, based on export conditions agreed by bilateral consultation, taking into account the result of 
evaluation by the FSCJ.  
For relaxing further age restrictions of Swiss beef, MHLW and MAFF are now reviewing the updated 
data submitte d by the Switzerland's authority, which is necessary for the risk assessment by the 
FSCJ.  
For the next step, MHLW is planning to submit the collected data to the FSCJ for risk assessment. 
After the FSCJ notifies its results to the MHLW, MHLW will consider revising the import conditions of 
beef through bilateral consultation based on them. In order to move forward the process, we would 
like to ask Switzerland for continued cooperation.  
 
4. TRADE POLICY BY SECTOR  
4.1. Agriculture, forestry, and fisheries  
4.1.1. Agriculture  
4.1.1.1. Agricultural policy  
 
Question 10  
According to para 4.4 of the report by the Secretariat, Japan's Food, Agriculture and Rural Areas 
Basic Plans sets self -sufficiency targets for FY2030 of 45% on a calorie basis and 75% on a 
producti on value basis. It is stated that in FY2021, self -sufficiency on a calorie basis was 38%. Can 
Japan please explain how it intends to achieve the target of increasing self -sufficiency by referring 
to concrete measures it is implementing or intending to impl ement?  
Response  
Although the goods are stipulated in Article 12(1) of the Customs Tariff Act as "Imported rice, hulled 
or unhulled, barley or wheat falls under any of the following case"; and in paragraph 2 of the same 
Article, "foodstuffs, apparels, other  goods which are closely related to the people's daily lives 
(excluding those goods specified in the preceding paragraph) and which are imported" , no items 
are currently designated and no decree to operate has been established. Therefore, there is no 
information that can be provided.  
 
4.1.1.3. Trade policies and border measures  
 
Question 11  
Page 140, Table A4.2. We note that the fill rates for skimmed milk powder and prepared whey (for 
infant formula) have been low. Is Japan considering undertaking steps in order to increase the fill 
rates?  WT/TPR/M/438/Add.1  
 
- 85 - 
 
  Response  
The reason for the low fill rates of these TRQs is the sluggish domestic demand. The government of 
Japan has been working on the simplification and digitalization of TRQ application process to  make 
it more convenient to importers, which would also promote further utilization of TRQ.  
Question 12  
Page 143, Table A4.5. According to data in the report of the Secretariat, food assistance of rice 
decreased from 2019 to 2020 from 87'089 to 47'071 tonn es. Furthermore, food assistance of other 
agri-food products decreased from 44'711 to 19'481 tonnes in the same period. Can Japan elaborate 
on the explanations for these decreases? What are the expectations concerning food assistance for 
the time period af ter 2020?  
Response  
Japan provides the grant for food assistance programmes based on the requests submitted by 
recipient countries, and responds to their needs as appropriate when necessary. After the year of 
2020, the quantity procured is expected to be af fected by the current situation, such as an increase 
in food prices and transportation costs, and exchange losses.  
4.1.1.4. Domestic support  
4.1.1.4.1 General support programmes  
 
Question 13  
Page 102, para 4.20. It is stated that Japan launched a Strategy for Sustainable Food System, 
MeaDRI (Measures for Achievement of Decarbonization and Resilience with Innovation) in May 2021. 
Can Japan elaborate on possible concrete steps and objectives set  out in the strategy, for example 
with regards to reducing the use of fossil fuels?  
Response  
Japan considers it is essential to promote effective implementation and utilization of the existing 
technologies including energy -saving ones, as well as further development of relevant technological 
innovation, in order to achieve objectives in MeaDRI. In this regard, we set some KPIs toward the 
target year of 2050.  
See: https://www.maff .go.jp/e/policies/env/env_policy/meadri.html  
4.3 Manufacturing  
4.3.3 Border measures  
 
Question 14  
According to para 4.92 the average utilization rates for leather footwear, some raw hides and skins, 
silk-worm cocoons and raw silk are very low. Could Japan explain in details the reasons for such a 
low utilization rate?  
 
Response  
The quotas have been filled low because of the decrease of the domestic needs and the increase of 
the utilization rates under the EPA. [leather and leather footwear]  
There are various reasons for the low fill rate: the decrease in domestic demand and the increase of 
the utilization under the Economic Partnership Agreements.  
[silk-worm cocoons and raw silk]  
Silk fabric manufacturers in Japan are faced with intense international competition due to decline in 
demand for Japanese -style attire as well as increase in import of silk fabrics and secondary silk 
fabrics.  
Due to this situation, the demand for silk -worm cocoons and raw silk in Japan is decreasing and the 
utilization rates have been low in recent years.  WT/TPR/M/438/Add.1  
 
- 86 - 
 
Report by Japan WT/TPR/G/438  
4. Regional activities  
4.2. Other regional activities  
4.2.3. Japan's bilateral activities  
 
Question 12  
Page 13, para 4.14. In its report, Japan states that at the Japan -China Foreign Ministers' Meeting 
held in Tokyo in November 2020, Japan and China agreed to promote cooperation together in fields 
where both sides have the same interests and direction, such as agricultural trade. Can Japan please 
provide additional information on what will be the agricultural focus of this promoted cooperation 
with China?  
Response  
In the trade of agricultural and fishery products, China is one of Japan's major trading partners. At 
the Japan -China Foreign Ministers' Meeting in Novembe r 2020, the two ministers shared the view 
on further prompting cooperation in areas in which they have shared interests and agree on the 
direction, including the trade of agricultural and fishery products.  
Regarding the import restrictions placed on food a nd agricultural products from Japan by China after 
the Great East Japan Earthquake in 2011, China continues to impose strict import restrictions, while 
other countries and regions around the world have eased or removed restrictions on Japanese food 
product s. At the Japan -China Foreign Ministers' Meeting in November 2020, the two sides agreed to 
set up a "Japan -China Agricultural and Fishery Products Trade Cooperation Mechanism" with a view 
to accelerating discussions to solve this issue.  
Japan will continue  to work with China at various opportunities to urge discussion under the 
mechanism  
 
6. Japan's domestic policies  
6.1. Current economic priorities  
Question 13  
Page 15, para 6.2. In its report, Japan states that it set out the Grand Design and Action Plan f or a 
New Form of Capitalism in June 2022 in order to resolve social issues and achieve economic growth 
at the same time. Can Japan please explain what the New Form of Capitalism entails for the future 
agriculture policy by Japan and whether there will be n ew measures introduced based on the New 
Form of Capitalism?  
Response  
The basic ideas that lie at the heart of this new form of capitalism are: 1) for solutions to be found 
by both the market and the state, and both the public and private sectors; 2) to cre ate new markets 
through the solving of social problems, or in other words, to achieve solutions to those problems 
along with economic growth; and 3) to improve the lives of the citizens and to achieve sustainable 
well-being for all through the finding of s olutions to problems. Based on the these basic ideas, Japan 
will utilize its budget to promote new measures to strengthen food security, to create growth 
industries through smart agriculture, forestry, and fisheries, to promote exports of agricultural, 
forestry, and marine products and foods, and to promote the greening of agriculture, forestry, and 
fisheries.  
 
  WT/TPR/M/438/Add.1  
 
- 87 - 
 
  11  ARGENTINA  
Informe de la Secretaría de la OMC  
WT/TPR/S/438  
 
Pregunta  
• En el párrafo 2.22  el informe describe estructura de los aranceles NMF aplicados por Japón, 
manifestando que la misma sigue siendo compleja. En este sentido, detalla que en un total de 
272 tipos arancelarios, hay 136 tipos ad valorem  diferentes, 75 tipos específicos diferen tes, 29 
tipos alternativos diferentes y 24 tipos compuestos diferentes, además de otras clases de 
derecho diferentes (4 derechos diferenciales y 4 derechos móviles). En el ejercicio fiscal 2022, 
el arancel de aduanas constaba de 9.467 líneas, sin contar la s sujetas a tipos aplicados dentro 
del contingente (frente a 9.181 en el ejercicio fiscal 2019), al nivel de nueve dígitos de la 
nomenclatura del SA 2022 (cuadro 3.1). Se aplican derechos ad valorem  al 92,7% de las líneas 
arancelarias (incluidas las líneas  libres de derechos, que representan el 40,9% del total). Se 
aplican tipos no ad valorem  al 7,3% restante (es decir, 689 líneas) (cuadro 3.1), que 
corresponden principalmente a las grasas y aceites, el calzado, los productos de las industrias 
alimentarias,  los productos minerales, los animales vivos y productos del reino animal, y las 
materias textiles y prendas de vestir.  
 
¿Podría indicar si el gobierno de Japón está desarrollando acciones para simplificar su estructura 
arancelaria? En caso afirmativo, ¿po dría indicar cuáles son esas acciones?  
 
Response  
Japan does not have such a plan at the moment. In Japan, the total percentage of duty -free rate 
and ad  valorem rate is over 90% of all tariff lines. Some parts of other products are set in non -ad 
valorem rates after consideration of the individual domestic industry conditions for each items. 
Therefore, we do not regard Japanese tariff regime structure as complex.  
 
Pregunta  
• En el cuadro 3.6  el informe menciona la existencia de un "Fondo para la Inn ovación 
Tecnológica", cuyo objetivo es alcanzar la neutralidad de las emisiones de carbono para 2050, 
mediante el cual el Gobierno prestará apoyo continuo a las empresas y otras entidades que se 
han comprometido a hacer frente a los desafíos para alcanzar determinados objetivos que 
abarcan desde la I+D a la demostración y la aplicación a nivel social en los próximos 10 años.  
 
¿Podría indicar en qué consiste la ayuda financiada por este Fondo y cuáles son los requisitos que 
deben cumplir las empresas para ac ceder a esta ayuda?  
 
Response  
If your question relates to the Green Innovation Fund;  
The Fund is to provide support by focusing on priority areas for which an action plan has been 
formulated in the Green Growth Strategy and which require long -term continuous support with a 
view to social implementation, with significant policy effects, and as of January 2023, 18 projects 
have been formed.  
In addition to meeting the conditions set out in the R&D and social implementation plan, the Green 
Innovation Fu nd also includes in the 'Application requirements' section of the call for applications 
the following criteria: 'The applicant must be a company manager (in principle, a representative 
director, a representative executive officer, a representative director , a representative executive 
officer, a representative executive officer, a representative executive officer, a representative 
executive officer, a representative executive officer or a representative executive officer of a 
company, etc.) who is responsibl e for the steady implementation of R&D results towards carbon 
neutrality by 2050. In principle, representative directors, representative executive officers and other 
persons with representative authority) must submit a long -term business strategy vision th at 
clarifies their commitment to tackling this as a long -term management issue".  
 
Pregunta  
• En el párrafo 3.8  del informe se explica que el Japón realiza auditorías posteriores al despacho 
de aduana; entre el 1 de julio de 2019 y el 30 de junio de 2022, la  Administración de Aduanas 
del Japón realizó auditorías de este tipo con respecto a 5.560 importadores.  
 
¿Podría indicar en qué casos específicamente se realizan este tipo de auditorías?  WT/TPR/M/438/Add.1  
 
- 88 - 
 
Response  
It is unable to answer this question because it would interfere with our enforcement efforts.  
All importers can be subject to the post -clearance audits, and are selected based on a variety of 
factors, including the name of the goods, price, origin and other items on the import declaration, as 
well as the size  of the import transaction.  
 
Pregunta  
• En el párrafo 3.27  se informa que durante el período objeto de examen, se introdujeron algunos 
cambios en los tipos arancelarios NMF aplicados, esto es, se aplicó una franquicia arancelaria 
temporal a los guantes de p olímeros de cloruro de vinilo (código 3926.20.011 del SA) en 2021 
y una reducción del arancel de importación sobre determinadas prendas de vestir (código 
6106.10 del SA) en 2022.  
 
¿Podría indicar qué motivos y bajo qué condiciones específicas el gobierno de Japón puede 
implementar cambios en los tipos arancelarios como los indicados en el párrafo?  
 
Response  
vinyl chloride polymer gloves (HS code 3926.20.011)  
As vinyl chloride polymer gloves are used for preventive measures against COVID -19, tariffs were 
reduced in order to reduce the tariff burden associated with higher procurement prices due to the 
spread of COVID -19. 
certain apparel (HS code 6106.10)  
Importer had to submit documents related to manufacturing process to classify whether 「Containing 
embroidery or lace, or figured 」 or 「Other」, and this was a burden on trade procedures. To resolve 
this, the tariff classification is consolidated, and as a result, the tariff rate in the tariff lines was 
reduced.  
 
Pregunta  
• En el párrafo 3.29  el informe in dica que Japón ha consolidado el 98,0% de sus líneas 
arancelarias, restando consolidar 185 líneas, las cuales comprenden principalmente productos 
de la pesca (pescado, crustáceos, algas), aceites de petróleo, y madera y manufacturas de 
madera.  
 
¿Podría ind icar si el Gobierno del Japón tiene previsto consolidar las líneas arancelarias restantes? 
En caso de respuesta negativa ¿podría indicar las razones?  
 
Response  
Tariff rates, and charges to them, are determined based on comprehensive consideration of various 
points, including domestic industry protection, import demand and the status of FTAs.  
Japan does not have a plan to bound those tariffs at this moment.  
Japan imposes unbound tariffs on certain fishery products which are important f or the Japanese 
economy to prevent price fluctuations due to import surges.  
For wood and wood products the applied tariff rate for 34 unbound tariff lines in the HS44 category 
has been zero and our trading partners have shown no interest to bind tariff ra tes for these lines.  
 
Pregunta  
• En el párrafo 3.76  se explica que las únicas zonas francas del Japón están en el distrito de 
Naha/Okinawa y en el distrito de Uruma/Okinawa, de conformidad con la Ley de Medidas 
Especiales para la Promoción y el Desarrollo d e Okinawa. La Ley fue objeto de algunos cambios 
que entraron en vigor el 1 de abril de 2022. La modificación estipula, entre otras cosas, un nuevo 
sistema de aplicación de los incentivos fiscales en las zonas francas.  
¿Podría detallar los cambios aplicados a la Ley, en particular los cambios en los sistemas de aplicación 
en los incentivos fiscales?  
 
Response  
The law was revised in 2022, adding Nakamine and Uezu districts (Uruma City), Henza district 
(Uruma City), and Ikemuto district (Okinawa City)  to the covered districts of the Uruma/Okinawa 
region.  
Under the changes to the application system, businesses to which the special measures apply should 
newly be required to obtain certification from the prefectural governor and confirmation from the 
comp etent minister.  
 WT/TPR/M/438/Add.1  
 
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  Pregunta  
• En los párrafos 3.228 y 3.229  se desarrollan aspectos relacionados con las medidas 
comerciales adoptadas por el gobierno de Japón vinculadas con el COVID -19. 
 
¿Podría indicar si las medidas mencionadas aún se encuentran vigentes?  
 
Response  
As of February 2023, the measures against COV ID-19 described in 3.228 and 3.229 are in effect.  
 
Pregunta  
• En el párrafo 4.59  el informe indica que Japón ha suscrito un acuerdo comercial con los Estados 
Unidos, el cual entró en vigor el 1° de enero de 2020.  
 
Dado que no se encuentran registros de que el acuerdo haya sido notificado al Comité de Acuerdos 
Regionales de la OMC, ¿podría responder los siguientes?:  
- Responder si Japón tiene previsto notificar el acuerdo al Comité de Acuerdos Regionales de 
la OMC.  
- Detallar las características de este acuerdo, los productos y/o sectores abarcados y los plazos 
de desgravación arancelaria.  
- Explicar en qué medida el acuerdo cumple con las disposiciones del artículo XXIV del GATT, 
en especial la obligación de liberalizar el comercio de lo "esencial de los intercambios 
comerciales".  
 
Response  
Regarding the notification, Japan and the US are coordinating the notification to the WTO and will 
proceed with the appropriate procedure at an appropriate time after the completion of such 
coordination.  
Regardi ng the products and/or sectors covered and the time frame for tariff reduction, please refer 
the Annex I and II of the Japan -US Trade Agreement.  
Regarding the characteristics of this agreement and the compliance with the provisions of Article 
XXIV of GATT, there has been no common understanding among WTO Members on how to define 
the phrase "substantially all the trade" in Article XXIV of GATT. Japa n is of the view that the Japan -
US Trade Agreement is consistent with Article XXIV of GATT.  
  WT/TPR/M/438/Add.1  
 
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12  CHINESE TAIPEI  
PART I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/438)  
 
1. ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.2 Fiscal Policy  
 
Page 1 6 (Para 1 .8~1.10 ) 
1.8. In addition to the pandemic, population ageing has a major impact on Japan's fiscal situation. 
Public social spending more than doubled, from 11% of GDP in 1991 to 25% in 2020. Around 80% 
of this is for pensions, health, and long -term care, one of the highest shares in the OECD. The impact 
of population ageing and mounting pressure from social security spending without corrective action 
are likely to threaten sustainability. Current official projections suggest that health and long -term 
care spending, largely driven by ageing, is on course to rise by 3 percentage points of GDP by 2040 
and social security spending by 2.5 percentage points. An additional source of pressure on public 
finance is to meet the targets of reducing greenhouse ga s emissions to net zero by 2050.  
 
1.9. With major expenditure consisting of social welfare, public works, and defence, the fiscal deficit 
continues to be mainly financed by tax revenue and the issuance of government bonds. As a result 
of large and increasi ng public deficits, gross debt of the general government climbed from 231% of 
GDP in 2017 to 263% of GDP in 2021. While the short -term threat to fiscal sustainability is limited 
by the current low interest rate environment, it is a crucial task for Japan's  policy to secure fiscal 
sustainability in the longer run, according to the IMF.  
 
1.10. The Government is aware of the challenges related to fiscal policies. It wants to reinforce 
ongoing efforts to reform government expenditure and revenue and  remains com mitted to achieving 
a primary budget surplus by 2025.  
 
Question(s)  
Does the Government of Japan have any plans for achieving a primary budget surplus by 2025? If 
so, can Japan please elaborate more on these plans and the anticipated timeframes?  
 
Response  
The Cabinet Office published the latest "Economic and Fiscal Projections for Medium to Long -Term 
Analysis" in January 2023. In the analysis, if the economic growth rates indicated in the Economic 
Growth Achieved Case are realized, and the governme nt continues the ongoing efforts to improve 
expenditure efficiency, the primary balance (% of nominal GDP) of the central and local governments 
combined is projected to be in surplus in FY2025.  
The current large deficit (as of January 2023) is largely due to the expenditures to support the 
economy to cope with COVID -19 and price hikes. It would be possible to return the primary balance 
to its pre -pandemic level by eliminating these expenditures to support the economy as the economy 
recovers.  
In addition, i n order to achieve the surplus in FY2025, it is important to raise the potential economic 
growth rate and continue efforts to improve expenditure efficiency more.   
In particular, it is important for the Government of Japan to take the following measures.  
First of all, it is aimed at bringing the economy onto a new growth path by " raising structural wages" 
by drastically strengthening investment in human capital and smoothing the movement of the labor 
force, and by expanding investment in growth fields thro ugh cooperation with private sectors.  
Next, it is necessary to balance the revenues and expenditures over multiple years by ensuring 
efficient and effective spending in the priority areas for the Government ("wise spending") and 
securing stable financial r esources.  
 
2. TRADE AND INVESTMENT REGIMES  
2.1 General Framework  
 
Page 25 (Para 2.3) 
2.3. Japan's policy objectives place great emphasis on national and economic security issues. The 
new Act for the Promotion of Ensuring National Security through Integrated Implementation of 
Economic Measures (Economic Security Promotion Act), adopted in M ay 2022, provides for a 
framework for ensuring a stable supply of "key products" and "essential infrastructure services", 
enhancing development of "advanced critical technologies" (Article 2.2), and preventing disclosure WT/TPR/M/438/Add.1  
 
- 91 - 
 
  or divulgence of inventions that mi ght be detrimental to national security through patent procedures. 
As at October 2022, implementing regulations were under preparation.  
 
Question(s)  
To our understanding, the Government of Japan adopted a cabinet ordinance in December 2022, 
designating a t otal of 11 areas of "specific important materials". Please share the details of these 
areas and explain the procedures for determining the " key products " of these areas.  
 
Response  
"Specified critical products" are defined as critical products which are v ital for the survival of the 
people or on which their daily lives or the economic activities depend, and of which stable supply is 
particularly necessary to prevent a situation in which the security of the nation and its citizens is 
undermined due to outsi de actions when the critical products or their materials, etc. are excessively 
reliant or are likely to be reliant on outside sources.  
The details of the above requirements are determined in the Guiding Principles on Ensuring Stable 
Supply which was decide d by the Cabinet and made public after the public comment procedure and 
hearing the opinions of experts. Then, considering those details of the requirements, the government 
has designated "specified critical products" by Cabinet Order, which was also subje ct to public 
comment procedure and other measures for hearing the opinions of the public and other 
stakeholders.  
The 11 specified critical products which was designated are semiconductors, batteries, permanent 
magnets, critical minerals, machine tools and industrial robots, aircraft parts, computer programs 
used for cloud service, combustible natural gas, antibiotic, fertilizer and marine equipment, for which 
stable supply is to be ensured.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.3.7  INTELLECTUAL PROPERTY RIGHTS  
 
Page 94 (Para 3.216 ~ 3.217)  
3.216. Japan does not pursue site blocking as an anti -piracy tool to the same degree as other 
developed jurisdictions, largely due to concerns regarding consistency with Article 21(2) of 
Constituti on and Article 4 of the Telecommunications Business Act, relating to privacy and 
censorship. In 2018, the Government asked Internet service providers to voluntarily block three 
notorious manga pirate sites as an emergency measure while a panel was convened  to review 
potential site blocking legislation. No such legislation has been presented to the Diet to date.  
3.217. The Government has attempted to reduce the accessibility of pirate sites by countering 
"leech", also known as "index" sites, which provide li nks to infringing content but do not host it 
themselves. Amendments in 2020 to the Copyright Act criminalized the operation of index sites, as 
well as the provision of computer programs/apps with similar functions. Violations are punishable 
by up to five y ears in prison and/or a fine of JPY 5 million, upon the complaint of a right holder. 
Posting URLs or links to pirated content on an index site or app is also now considered copyright 
infringement, punishable by up to three years in prison and/or a fine of JPY 3 million, upon the 
complaint of a right holder. The Government has indicated that these amended provisions of the 
Copyright Act could be used to combat illicit streaming devices. Platform service providers, such as 
YouTube or Google, are not liable ex cept in malicious circumstances where requests to remove 
infringing links have been unjustifiably ignored for an extended period of time.  
 
Question(s)  
Can Japan provide additional information on the 2018 emergency measures by which the 
Government asked ISP s to voluntarily block access to 3 notorious manga pirate sites? What was 
the legal basis for these blocking actions, and what is the current status of the legislation 
proposal, if there is any, on blocking access to pirate sites? Should there be progress regarding 
the said legislation proposal, would its site -blocking mechanisms be administrative or judicial?  
 
Response  
Blocking may infringe on the "secrecy of communications," but even if it does, it is considered that 
illegality could be denied if the requirements of emergency evacuation (Article 37 of the Penal Code) 
are met in light of circumstances such as the amount of infringing content and the impossibility of 
protecting rights by other means, such as deletion and arrest. The Government asked Internet 
service providers to voluntarily block three notorious manga pirate websites as an emergency 
measure while a panel w as convened to review potential site blocking legislation.  WT/TPR/M/438/Add.1  
 
- 92 - 
 
Legislation on site blocking may be considered upon assessment of the damage caused by piracy 
and effects of other measures.  
 
Can Japan provide information on any cases that have been brought forw ard since the 2020 
amendment to the Copyright Act criminalizing the operation of index sites and the provision of 
computer programs/apps with similar functions?  
 
Response  
Since the 2020 amendment to the Copyright Act, the police of Japan have arrested seve ral 
operations of so -called index sites.  
Most recently, in September 2022, the police arrested the operator of a website that indexed the 
websites, which publish movies without permission, to make them available to unspecified number 
of persons.  
 
PART II: REGARDING THE GOVERNMENT REPORT (WT/TPR/G/438)  
 
2. TRADE AND INVESTMENT POLICY  
2.1 Trade policy  
 
Page 4 (Para 2.2)  
While committed to the multilateral trade negotiations, Japan is also pursuing the conclusion of 
Economic Partnership Agreements (EPAs), bilateral and regional, and plurilateral trade agreements. 
The negotiations of EPAs and plurilateral agreements will enhance the transparency of the respective 
member country's economic policy and reinforce the competitiveness of its industries, wh ich will 
bring about positive impacts on the multilateral trade negotiations. Japan also intends to assess the 
possibility of reflecting the outcomes of the bilateral and plurilateral initiatives in the multilateral 
trading system.  
 
Question(s)  
Can Japan e xplain how it conducts the assessments? Does Japan consider any specific area/trade 
issues in the bilateral and plurilateral initiatives or their outcomes suitable to be reflected in the 
multilateral trading system?  
 
Response  
Japan has actively contributed  to rule -making for trade and investment in negotiations of bilateral 
and regional Economic Partnership Agreements (EPAs) and Free Trade Agreements (FTAs).  
We need to consider whether it is appropriate to reflect and how to reflect such experience and 
outcomes gained in bilateral and plurilateral EPAs/FTAs to initiatives in the multilateral trading 
system on case -by-case basis, taking into the purpose and participants of such initiatives.  
Japan will continue to actively contribute to initiatives in the mult ilateral trading system.  
 
Page 4 (Para 2.3)  
Japan is currently a party to 19 EPAs. Since the previous review, the Japan -UK Comprehensive 
Economic Partnership Agreement (Japan -UK CEPA) and the Regional Comprehensive Economic 
Partnership (RCEP) Agreement ent ered into force in 2021 and 2022. The ETA ratio1 has reached 
nearly 80%, which exceeded the target set out in the Growth Strategy 2013. Japan has also 
promoted its regional and bilateral trade policies as a means of complementing the multilateral 
trading s ystem under the WTO and Japan is confident that these agreements will serve as building 
blocks to advance higher trade liberalization and to achieve fairer economic order at the multilateral 
level.  
 
Question(s)  
Since the RCEP entered into force in 2022, ha s Japan conducted any quantitative assessments of its 
impact on Japan's economy, investments, or trade? What are the results of this assessment?  
 
Response  
Japan conducted an estimation of the economic effects of the RCEP agreement in 2021 based on the 
details of the Agreement. The results showed that Japan's actual GDP will eventually be boosted by 
about 2.7% after a considerable adjustment period, compared to the case without the RCEP 
Agreement.  
 WT/TPR/M/438/Add.1  
 
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  3 MULTILATERAL INITIATIVES  
3.1 WTO  
 
Page 6 (Para 3.4)  
In the  post-COVID -19 era, the realization of Data Free Flow with Trust (DFFT) is crucial for 
harnessing the increasingly important digital sector, and at the WTO, e -commerce negotiations are 
one of the most important themes and it is crucial to accumulate result s in order to further advance 
negotiations. As a co -convener for e -commerce negotiations, Japan continues to open the door to 
wider participation of Member countries and accelerate negotiations with the goal of creating high -
level rules that include the fr ee flow of data.  
 
Question(s)  
Can Japan elaborate more on any proposal or initiative it has proposed for the implementation of 
Data Free Flow with Trust (DFFT)?  
 
Response  
Japan launched the "Osaka Track" on the occasion of the G20 Osaka Summit to encourage 
international policy discussions on the utilization of data and the potential of the digital economy to 
promote "DFFT". Under this initiative, 87 countries and regions have currently joined the WTO Joint 
Statement Initiative on E -commerce, and ar e negotiating to develop global rules on e -commerce 
including provisions that enable and promote the flow of data. Japan is leading the discussions as a 
co-convener. In addition to the WTO, at other international fora, we are continuing discussions with 
international organizations, including the OECD, and industry to respond to the rapid progress of 
digitalization. Furthermore, in the field of economic partnerships, the Japan -US Digital Trade 
Agreement, and the Japan -UK CEPA also include high standard conte nt in the digital area. In October 
2022, negotiations have begun on including provisions on the free flow of data into Japan -EU EPA. 
The promotion of initiatives in the digital sector is also being discussed in the Indo -Pacific Economic 
Framework (IPEF).  
 
As a co -convenor of e -commerce negotiations, what outcomes does Japan foresee this year in terms 
of achieving results of high -ambition, and in successfully expanding the participation by WTO 
Members?  
 
Response  
Japan foresees a substantial conclusion by the  end of 2023 and recognizes the importance of 
achieving high -ambition and commercially meaningful outcome, and ensuring inclusiveness. For 
inclusiveness, Japan will continue to support developing countries in the digital trade sector.  
 
5 TRADE AND DEVELOPM ENT 
5.1 Aid for Trade  
 
Tokyo International Conference on African Development (TICAD)  
 
Page 14 (Para 5.4.)  
TICAD8 was held in Tunis, Tunisia, on 27 and 28 August 2022. The important initiatives announced 
by Japan with regard to trade and development are as follows:  
1. To launch "Japan's Green Growth Initiative with Africa", where USD 4 billion of public and private 
financial contribution in total is made;  
2. To focus on start -up companies in which energetic young people from Japan and Africa will be 
engaged.  Japan welcomes a plan by the Japanese business community to create an investment 
fund for start -ups of more than JPY 10 billion;  
3. To provide co -financing of up to USD 5 billion together with the African Development Bank in 
order to improve the lives of African people. A special, newly -created loan of up to USD 1 billion 
to support countries that advance reforms which will result in sound debt management.  
 
Questions  
1. Can Japan please explain the criteria for determining the eligibility of countries or programs to 
the financing loans?  
 
Response  
A. The basic idea is that eligibility of a yen loan project is determined based on comprehensive 
consideration of the appropriateness of the country to which the loan is extended and the WT/TPR/M/438/Add.1  
 
- 94 - 
 
appropriatene ss of the project to which the loan is extended. Besides, specific criteria is established 
for some programs such as the newly -created loan of up to USD 1 billion with AfDB applicable for 
countries advancing debt management reforms.  
Regarding the initiativ e 2 above, the Keizai Doyukai (Japan Association of Corporate Executives) has 
been preparing for the 'Impact Fund' to promote investment from Japanese companies contributing 
to development in Africa, and established a fund management company in January 202 3. At present, 
the eligibility of countries and programs for that fund are under consideration.  
 
2. Does the Government of Japan have a plan or special arrangement to ensure that the loans are 
repaid in full? What is the plan or the arrangement?  
 
Response  
The Government of Japan does not have a specific plan or arrangement to ensure full debt 
repayment, but follows up on the status of the debt on the regular basis through close information 
sharing with the recipient government. In addition, based on its commit ment at TICAD 8 to 
cooperate in public debt management, Japan also provides technical cooperation in debt 
management.  
 
5.2 Generalized System of Preferences (GSP)  
 
Page 15 (Para 5.7.)  
In the comprehensive "Development Initiative for Trade" launched on 9 December 2005, Japan 
announced its commitment to providing duty -free and quota -free (DFQF) market access for 
essentially all products originating from LDCs. Japan is fully committed to implementing the above 
initiative, thus, complying with the decision ad opted in the Hong Kong, China Ministerial Declaration. 
In order to realize the aforementioned commitment, on 1 April 2007, Japan expanded the area 
covered by the DFQF treatment for LDCs. As a result, the number of agricultural and fishery products 
originat ing from LDCs that receive DFQF preferential treatment increased from 497 to 1,523 and 
that of industrial products increased from 4,185 to 4,244.  
 
Question  
Will Japan consider to further increase the items of agricultural, fishery and industrial products 
eligible for duty -free and quota -free treatment for LDCs?  
 
Response  
Since 1 April 2007, Japan has expanded duty -free and quota -free (DFQF) market access to the 
Least -Developed countries (LDCs), covering approximately 98% of all tariff lines, thereby realiz ing 
its commitment to provide DFQF market access for at least 97 percent of products originating from 
LDCs, as stated in the WTO Hong Kong Ministerial Declaration. (See WT/COMTD/N/2/Add.14 for 
detail)  
As for industrial products, in principle, almost all i ndustrial products are given duty -free and quota -
free treatment, except when Japan maintains appropriate tariffs, considering domestic industrial 
conditions.  
Japan will continue to apply its tariffs in an appropriate manner.  
 
6. JAPAN'S DOMESTIC POLICIES  
6.2 Digital transformation  
 
Page 16 (Para 6.5 ~ 6.6)  
6.5. The Basic Act stipulates the Japan's basic digital policy regarding the formulation of principles 
and measures and requires the Japanese Government should quickly implement measures with 
priority for the formation of a digital society. In the Priority Policy Program for Realizing Digital 
Society (decided by the Cabinet in June 2022), among the important tasks set forth is to urge almost 
all residents in Japan to obtain their Individual Numbe r Cards ("My Number Card") and to encourage 
the use of the Individual Number Cards as health insurance cards and other card functions in the 
future, such as use as driver's licenses and residence cards.  
 
6.6. Under the Act on the Establishment of the Digit al Agency, the Digital Agency officially started 
business in September 2021. Each ministry, agency, and local government in Japan has been 
promoting digitalization with separate responsibility in the past but now the Digital Agency has 
strong powers of com prehensive coordination, such as the power to make recommendations to other 
ministries and agencies.  WT/TPR/M/438/Add.1  
 
- 95 - 
 
  Question(s)  
1. To urge and encourage the residents of Japan to obtain and use the Individual Numbers Cards, 
has the Government of Japan put in place or implem ented any measures to protect their personal 
data? If yes, please elaborate more on these measures.  
 
Response  
The My Number system implements various safety management measures in both the institutional 
and operational systems. Specifically, these include decentralized information management, access 
control to the system and encryption of communications.  
Under the decentralized information management, personal information will continue to be held by 
each government agency, etc. even after the introduction o f the My Number system as before, and 
when personal information is required by other agencies, only those specified in Annex 2 of the My 
Number Act can be used for information provision network systems and information can be inquired 
about and provided thr ough the "decentralized management".  
Furthermore, a highly independent third -party body (the Personal Information Protection 
Commission) monitors and supervises the system and imposes severe penalties if personal 
information, including my number, is intent ionally provided.  
 
2. Since the Digital Agency has strong powers of comprehensive coordination in promoting digital 
transformation, what are the results or progress achieved by the Agency so far according to 
assessment by the Government of Japan? Are there an y more and different approaches or 
powers needed in order to obtain more progresses?  
 
Response  
With the pillars of "Delivering Citizen -Centric Public Service," "Modernizing Digital Infrastructure for 
Inclusive Growth," and "Strengthening Digital Resilienc e," we steadily promoted public service 
provision and infrastructure development supporting people's daily lives to achieve the digital society 
which we aim to create. The main achievements are below;  
 1. Delivering Citizen -Centric Public Service  
• Spreadi ng use of Individual Number Card  
• Improving Mynaportal  
• Providing COVID -19 vaccination certificate app  
• Providing services and certification infrastructure for businesses  
• Online administrative services for government offices  
• Establishing the Cashless Act   
• Promoting standardization of local government systems  
 2. Modernizing Digital Infrastructure for Inclusive Growth  
• Promoting the Special Commission on Digital Administrative Reform  
• Data strategy  
• Promoting medical care DX  
• Digitalizing  the education sector  
• Developing a data infrastructure for children  
• Spreading & establishing the digital invoices  
• Promoting the Vision for a Digital Garden City Nation  
• Utilizing the digital reform co -creation platform  
• Implementing Digital Days  
 3. Achieving a Safe, Secure, and Strong Digital Infrastructure  
• Developing government cloud   
• Government solutions services  
• Promoting DFFT  
Towards the realization of vision of the Digital Agency, we are promoting projects based on figures 
and facts. The  main approaches are below;  
1. Setting goals and metrics  
For each project, the issues to be solved, the value to be provided, the form to be realized 
(why/what), and the policy to achieve the goals (how) are clearly stated, and indicators are set to 
show p rogress toward the goals.  
2. Arranging projects  
We will set up project groups for each of the three Digital Agency pillars (Overall Strategy). We will 
assign responsibility to project groups, clarify the roadmap for achieving the final goal and the overall  
picture, and steadily implement important projects that cross over into other projects.  
3. Establishing service development environment  WT/TPR/M/438/Add.1  
 
- 96 - 
 
We will establish a service development environment where both government and private sector 
personnel can perform well , and can efficiently co -create with vendors.  
 
3. In terms of digital transformation of trade, does Japan have specific vision or targets? If so, 
please share the details.  
 
Response  
While the term "digital transformation of trade" may encompass a variety of aspects depending on 
the definition, there seem to be two general aspects: "trading the data itself" and "digitalization of 
trade platforms.  
As for the former, Japan has a clear vision: the "Data Free Flow with Trust (DFFT)" advocated by 
former Prime Minister Abe in Davos in 2019 had been shared as a foundational concept for data 
utilization, and the launch of the "Osaka Track" was declared at the G20 Osaka Summit, marking 
the beginning of full -fledged rule -making  for the digital economy. Japan, as co -convener of E -
commerce negotiations in the WTO, will lead the international high -level rule formation, including 
free flow of data.  
With regard to the latter, in November 2022, the Action Plan for SMART Customs was formulated to 
promote the digitizat ion of customs procedures and automation of customs inspections by actively 
incorporating AI and other advanced technologies, thereby creating the environment for the 
expansion of cross -border logistics. Specifically, we are studying the possibility of the  system linkage 
between NACCS, Japanese single window, and Trade Waltz, which we signed an MOU with its 
management entity in 2020. Also, the system linkage process with Cyberport, a platform developed 
by the Ministry of Land, Infrastructure, Transport and Tourism, is now in progress. We will continue 
to closely watch domestic and international trends related to the digitalization of trade -related 
documents, and will study the possibility of linkage with other various platforms as necessary.  
 
6. JAPAN'S DOME STIC POLICIES  
6.8 Climate change and environmental sustainability  
 
Page 20 (Para 6.28)  
6.28. In June 2022, the Government revealed plans to indicate a roadmap regarding investment in 
green transformation on the scale of JPY 150 trillion over the next decade under public -private 
partnerships, and according to the Plan, the Japanese Government will embody the vision for "Pro -
Growth Carbon Pricing", which aims to maximize economic growth and GHG emissions 
reductions/absorption at the same time, and also c onsider raising funds through "GX Economy 
Transition Bonds (tentative name) backed by future financial resources".  
 
Question(s)  
1. What kinds of carbon pricing are the "Pro -Growth Carbon Pricing" envisioned by the Government 
of Japan? (ex. imposing carbon tax , or establishing a carbon trading market)  
 
Response  
"Pro-Growth Carbon Pricing," as envisioned by the Japanese government, is a combination of up -
front investment support using funds raised through the "GX Economy Transition Bonds", and carbon 
pricing to be introduced in the future. The latter is expected to be phased in starting in 2023, with 
a paid auction to power generators starting in 2033, and carbon surcharge (based on the amount of 
carbon dioxide emitted by each fossil fuel) starting in 2028.  
 
2. Does the Government of Japan have a specific plan and timeline for embodying the vision of 
"Pro-Growth Carbon Pricing"?  
Response:  
At the end of last year, the Japanese government announced its "Basic Policy for the Realization of 
GX," which lays out policy iss ues and the direction of actions to be taken to resolve them, with the 
aim of realizing GX in the future. After conducting public comments in January of this year, the 
Cabinet made a decision on February 10, and submitted a bill to materialize the policy t o the ordinary 
Diet session now in session.  
 
3. Has the Government of Japan considered the possibility of adopting its own Carbon Border 
Adjustment Measures (CBAM) similar to the one of EU in the future?  
 WT/TPR/M/438/Add.1  
 
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  Response:  
We are paying close attention to recent deve lopments around carbon border adjustment mechanism 
in some economies.  
Whenever implementing carbon border adjustment mechanism, one should consider that it is not 
causing any market disruption as non -tariff barriers and that low -carbon and decarbonized products 
are evaluated appropriately.  
  WT/TPR/M/438/Add.1  
 
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13  EUROPEAN UNION  
WT/TPR/G/438 – GOVERNMENT REPORT  
1 TRADE AND ECONOMIC ENVIRONMENT   
1.1 Japan's economic environment   
1.2 Trends in foreign trade  
Paragraphs  1.4-1.6 and Box 1.1, page 3:  
1.4 In 2021, the value of goods exports from Japan increased to JPY 83.1 trillion by 21.5% compared 
to the previous year and that of goods imports to Japan increased to JPY 84.8 trillion by 24.6%. As 
a result, the trade balan ce turned into a deficit, and amounted to JPY 1.7 trillion, for the first time 
in 2 years.  
EU question 1  
The figures for growth rates for overall imports and exports indicated in the Government report differ 
from similar IMF figures and for the EU -Japan bi lateral imports and exports the corresponding 
Eurostat figures. Could Japan please indicate the source of the figures in the paragraphs 1.4 -1.6 of 
Government report?  
Response  
The value of goods imports and exports and their growth rates shown in the government report are 
sourced from the Trade Statistics of the Ministry of Finance of Japan.  
The values for 2021 were updated to fixed values as of November 2022, with the value of goods 
imports increasing 24.8% to 84.9 trillion yen and the trade balance s howing a deficit of 1.8 trillion 
yen. 
1.3 Trends in foreign direct investment  
Paragraph 1.8, page 4:  
1.8 […] By region: in 2021, outward FDI to Asia increased by 48.9% to JPY 5,052.9 billion, and to 
North America by 11.7% to JPY 6,609.0 billion, to Europe  to JPY 4,180.8 billion.  
EU question 2  
Could Japan please provide the percentage of FDI increase to Europe as done for Asia and North 
America?  
Response  
Outward FDI  to Europe in 2020 was JPY -1705.9 billion, and in 2021 it was JPY 4180.8 billion, an 
increase of about 5886.7 billion.  
Paragraph  1.9, page 4:  
1.9 […] By region: in 2021, the inward FDI  from Asia increased by 255% to JPY 1,899.6 billion, and 
from North America by 134.6% to JPY 747.3 billion, and from Central and South America to JPY 
307.5 billion. On the other hand, outward FDI from Europe decreased to JPY 259.0 billion.  
EU question 3  
Could Japan please provide the percentage of FDI decrease from Europe as done for the increase 
from Asia and North America?  
Response  
Inward FDI from Europe in 2020 was JPY 334.4 billion, and in 2021 it was JPY -259.0 billion, a 
decrease of -593.4 billion.  WT/TPR/M/438/Add.1  
 
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  2 TRADE AND INVESTMENT POLICY  
2.1 Trade policy  
Table 2.1, page 10 and Report by the WTO Secretariat, Table 2.3 (page 31):  
EU question 4:  
Why in the list of trade agreements concluded by Japan, is there no indication of the agreement with 
the US? This seems also to be in contradiction with table 3.3 of the secretariat's report (page 47), 
where the trade agreement with the US is mentioned.  
Response  
The Japan -US Trade Agreement, which eliminates or reduces tariffs on agricultural and industrial 
products, is dif ferent from what Japan generally calls an economic partnership agreement (EPA), 
which covers broader areas such as trade in services, investment and intellectual property and, 
therefore, this Agreement is not included in Table 2.3 on EPAs.  
5 TRADE AND DEVE LOPMENT  
5.2 Generalized System of Preferences (GSP)  
Paragraph  5.7, page 15:  
5.7 Japan is fully committed to implementing the above initiative, thus, complying with the decision 
adopted in the Hong Kong, China Ministerial Declaration. In order to realize the aforementioned 
commitment, on 1 April 2007, Japan expanded the area covere d by the DFQF treatment for LDCs. 
As a result, the number of agricultural and fishery products originating from LDCs that receive DFQF 
preferential treatment increased from 497 to 1,523 and that of industrial products increased from 
4,185 to 4,244.  
EU ques tion 5:  
Could Japan specify if cotton (products falling under HS chapter 52) originating from LDCs enjoys 
DFQF preferential treatment under Japan's GSP scheme?  
Response  
Japan grants the DFQF treatment for cotton （HS chapter 52 ）from LDCs.  
6 JAPAN'S DOMESTIC POLICIES  
6.3 Intellectual property rights  
Paragraph 6.8, page 16:  
6.8 In June 2018, the Intellectual Property Strategy Headquarters established "The Intellectual 
Property Strategy Vision" as a new and mid -to long -term vision until 2030. In this vision, Japan set 
out a "value design society" to be realized in the future, where a variety of values that go beyond 
economic value are subsumed, where various individualities fully demonstrate multifaceted abilities, 
make good use of Japanese charac teristics, make new values, and gain empathy of the world. Japan 
will actively and creatively design the concrete systems to achieve the above -mentioned society.  
EU question 6:  
Could Japan please clarify what "Intellectual Property Strategy Headquarters" a re? Could Japan 
please also clarify how the objective of the "value design society" relates to IPRs?  
Response  
The functions of "Secretariant of Intellectual Property Strategy Headquarters Cabinet Office" are 
provided in the "Intellectual Property Basic Ac t" as "study and deliberation on planning significant 
measures on the creation, protection and exploitation of intellectual property, and promotion and 
comprehensive adjustment of implementation of the measures."  
The Intellectual Property Strategy Vision sets the target to become a "value design society", having 
in mind the ideal society we would like to have with in the period of 2025 to 2030. The focus is 
placed on the discussions of examining specific intellectual properties that contribute to the objec tive 
by clarifying the objective first instead of considering intellectual properties as tools.  WT/TPR/M/438/Add.1  
 
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Paragraph 6.9, page 16:  
6.9 The steady implementation of policies based on this plan is required in the future in order to 
transform our society into an economic society where new players including individuals with a 
passion for new idea creation and innovation in Japan can fully  utilize society's IP.  
EU question 7:  
Could Japan further elaborate on the concept of "society's IP", and in particular how individuals 
should be able to utilise it?  
Response  
The Intellectual Property Strategy Vision will be shared by the government as a whole while inviting 
public opinions and reviewing the vision by verifying its validity at platforms where free and vigorous 
discussions can be made, and further, specific systems that are necessary for the future society will 
be designed and implemented i n an active and creative manner.  
This vision is just a vision, and we have not considered specific individual usage methods.  
6.4 Financial reform   
Paragraph  6.12, page 17:  
6.12 Allowing banks, in principle, to hold ownership of subsidiaries acquired from foreign financial 
institutions for 10 years after the acquisition (unconditionally), and furthermore, if necessary from 
the viewpoint of maintaining local competition, it can be held for more than 10 years on a permanent 
basis with approval.  
EU question 8  
Could Japan clarify if this covers the situation of establishing subsidiaries of foreign banks in Japan 
or the acquisition of such subsidiaries by Japanese banks? Why would such acquisition be put under 
threat of divestment after 10 years rat her than scrutinizing competition issues from the outset?  
Response  
The "Expansion of the Scope of Business of Foreign Subsidiaries and Affiliated Companies to 
Strengthen Banks' Profitability" in the 2021 revision to the Banking Act applies only to the acqu isition 
of a foreign subsidiary under a foreign bank by a domestic bank, and does not apply to the acquisition 
of a foreign bank subsidiary established in Japan by a domestic bank.  
From the perspective of preventing banks from escaping the scope of busines s restrictions imposed 
on them under the Banking Act, there are also certain restrictions on the subsidiaries that banks can 
own. 
In 2021, the Banking Act was amended to allow domestic banks to continue to own acquired 
companies for 10 years after acquisition, from the perspective of encouraging domestic banks to 
expand their business overseas in a flexible and rational manner, limited to those foreign banks' 
subsidiaries that cannot be owned as subsidiaries of banks under the regulation on the scop e of 
business of subsidiaries under the Banking Act, but which are authorized by the local supervisory 
authority to be owned as subsidiaries of banks, and also to allow domestic banks to continue to own 
acquired companies with the approval of the Financial  Services Agency if there is a need in the host 
country for competition. Therefore, domestic banks are not threatened with sale after 10 years from 
acquisition.  
6.8 Climate change and environmental sustainability  
Paragraph 6.27, page 20:  
6.27 Revision to the Plan for Global Warming Countermeasures (decided by the Cabinet in October 
2021): Updates the Plan for Global Warming Countermeasures, which is initially set in May 2016, to 
present the Government's comprehensive plan based on the Act on Pr omotion of Global Warming 
Countermeasures. It puts forward a set of measures and policies for achieving the new target, 
describing a pathway toward it. Among the important tasks included in the revised plan is to create 
over 100 decarbonization leading are as that aim to achieve net -zero CO2 emissions from electricity 
consumption in the household and business sector by fiscal year 2030.  […] Revision to Japan's Long -
Term Strategy under the Paris Agreement (decided by the Cabinet in October 2021): Updates the 
Long-Term Strategy to show the basic concept, visions, and measures for net -zero GHG emissions WT/TPR/M/438/Add.1  
 
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  by 2050. With regard to realizing a virtuous circle of environment and growth, the Strategy includes 
promoting innovation for decarbonization technologies and co st reduction, green finance through 
TCFD disclosures and ESG finance, and business -led international application and cooperation.   
EU question 9  
Could Japan indicate if agriculture is one of the "100 decarbonization leading areas" envisaged under 
the revis ed "Plan for Global Warming Countermeasures" and does the revised plan put forward 
measures and policies aimed at reducing emissions from agriculture? Please elaborate on the details 
of the revised plan as regards agriculture.  
Response  
Decarbonisation Lead ing Areas (DLA) are areas designated by local governments to achieve carbon 
neutrality by FY2030, 20 years ahead of national target year of 2050. So far, 46 proposals including 
initiatives at agriculture, have been selected as DLA.  
As regards agriculture, the revised Plan for Global Warming Countermeasures includes below:  
 Reduction of CH4 emission from paddy fields by extending midseason drainage.  
 Reduction of N2O emission from fertilization by reducing of the use of fertilizer, splitting 
fertilization,  and using slow -acting fertilizers.  
 Expansion of carbon sequestration into farmlands by promoting of continuous application of 
organic matter such as compost and green manure to the soil and use of biochar.  
EU question 10  
Could Japan indicate if its revi sed Long -Term Strategy under the Paris Agreement includes targets 
and measures relating to reduction of GHG emissions in agriculture?  Please elaborate on the details 
of the Strategy as regards agriculture.  
Response  
As regards agriculture, Japan's Long -Term Strategy under the Paris Agreement includes below:  
 Reduction of GHG emissions through the dissemination of energy -saving equipment, the 
conversion of energy to woody biomass fuels and geothermal heat, and the use of livestock waste 
as energy sources. Th e Government also aims at realization of "smart agriculture, forestry and 
fisheries" using ICT to improve work efficiency, etc. Furthermore, by 2040, The Government has set 
a target to establish technologies for the electrification and hydrogenation of agr icultural and forestry 
machinery and fishing vessels by 2040. Through these efforts, the Government aim to achieve net -
zero CO2 emissions in the agriculture, forestry, and fisheries industries by 2050.  
 Promotion of carbon storage in cropland soil with th e application of organic matter such as 
compost and green manure to the soil, the development of new biochar materials that are more 
functional and easier to apply to cropland, and the application of biochar to cropland promoted by 
the J-Credit Scheme.  
Paragraph  6.28, page 20:  
6.28 In June 2022, the Government revealed plans to indicate a roadmap regarding investment in 
green transformation on the scale of JPY 150 trillion over the next decade under public -private 
partnerships, and according to the Plan,  the Japanese Government will embody the vision for "Pro -
Growth Carbon Pricing", which aims to maximize economic growth and GHG emissions 
reductions/absorption at the same time, and also consider raising funds through "GX Economy 
Transition Bonds (tentativ e name) backed by future financial resources.  
EU question 11  
Could Japan indicate the timeline for the finalization of the map regarding investment in green 
transformation? When will it be published, and when can a consultation be expected? Similarly, what  
is the target date for the new initiative on carbon pricing, and again will it be subject to an open 
consultation?  
Response  
At the end of last year, the Japanese government announced its "Basic Policy for the Realization of 
GX," which lays out policy issu es and the direction of actions to be taken to resolve them, with the 
aim of realizing GX in the future. After conducting public comments in January of this year, the WT/TPR/M/438/Add.1  
 
- 102 - 
 
Cabinet made a decision on February 10, and submitted a bill to materialize the policy to  the ordinary 
Diet session now in session. The contents have already been made public.  
WT/TPR/S/438 – WTO SECRETARIAT REPORT  
SUMMARY  
Paragraph  11, page 9:  
11. In October 2020, Japan announced its plans to achieve net zero greenhouse gas emissions by 
2050. Moreover, in April 2021, it announced the goal of reducing emissions by 2030 to 46% from 
its 2013 levels. To this end, a long -term strategy under the Paris Agreement was elaborated in 2019 
and revised in 2021 to promote green innovations and finance,  and an Environment Innovation 
Strategy in 2020, with action plans for each technology area. Also in 2020, a new Green Growth 
Strategy was published.  
EU question 12  
Has Japan registered any progress in cutting emissions when implementing its strategic poli cies? 
Response  
Japan has been conducting annual inspections of the status of achievement of reduction targets, 
related indicators, and progress in individual measures and policies in the Plan for Global Warming 
Countermeasures.  
1 ECONOMIC ENVIRONMENT   
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
Paragraph  2.8, page 26:  
All laws and regulations are published in the Government Gazette and are made available online. 
The main laws and regulations relating to trade,  and amendments since January 2020, are presented 
in Table 2.1. Nonetheless, it would appear that not all the decisions by the Cabinet are published.  
EU question 13  
Could Japan explain why not all the decisions by the Cabinet are published and what possible 
remedies are envisaged by Japan? In addition, are these decisions made available in English?  
Response  
All agenda of the cabinet meeting are published.  
Please refer to the URL below （in Japanese ）: 
https://www.kantei.go.jp/jp/kakugi/index.html   
Some important cabinet decisions are published in English.  
https://japan.kantei.go.jp/101_kishida/decisions/index.ht ml  
2.4 Investment Regime  
2.4.2 Business environment  
Paragraph  2.35, page 35:  
2.35 […] In 2021, the Council for Promotion of Foreign Direct Investment adopted the Strategy for 
Promoting Foreign Direct Investment in Japan. Using Japan's FDI stock as a key performance 
indicator, the Council set the target to double the inward FDI stoc k to JPY 80 trillion by 2030 and 
reach 12% of GDP, with a 2025 interim target of JPY 60 trillion with its ratio to GDP at 10%. […]  
EU question 14  
Could Japan please provide the following data?  
- Estimated inward FDI  stock as of end 2022, both in value and GDP % terms;  
- Estimated value added created by foreign -affiliated companies as of end 2022;  WT/TPR/M/438/Add.1  
 
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  Response  
The latest data of inward FDI stock is as of 2021 and JPY 40.5 trillion with its ratio to GDP at 7.4%.  
Source: T he Ministry of Finance and the Bank of Japan, "International Investment Position of Japan," 
and the Cabinet Office, "National Accounts of Japan."  
The latest data of value added created by foreign -affiliated companies is as of fiscal year 2020 and 
JPY 15.7 trillion yen.  
Source: The Ministry of Economy, Trade and Industry, "Basic Survey of Japanese Business Structure 
and Activities."  
Note: The target industries are limited and the companies are limited to entities with 50 or more 
employees and capital or inve stment of 30 million yen or more.  
Paragraph  2.37, page 35  
2.37 Since the previous Review, the following new investment -related promotion policies and 
strategies have been adopted: the Strategy for Promoting Foreign Direct Investment in Japan (2 
June 2021),  and the Main Policy Agenda for Promoting Foreign Direct Investment in Japan (20 April 
2022).  
EU question 15  
In connection to the Working Group for Addressing the "Main Policy Agenda Strategy for Promoting 
Foreign Direct Investment in Japan" in May 2022. Could Japan please provide information on:  
- the composition (members) of this Working Group and if it does not include foreign 
companies, the reason why;  
- the content of the deliberations and measures envisaged, as a result.  
Response  
As for the composi tion of this Working Group, please refer to English -translated version of "Members" 
of "Working Group for Addressing Main Policy Agenda for "Strategy for Promoting Foreign Direct 
Investment in Japan"" from the following link.  
http://www.invest -japan.go.jp/committee/en_index.html  
We plan to formulate "the New Action Plan" to grow its economy by reaching out the rest of the 
world through the free movement of people, goods, and capital across borders around this spring, 
based on the discussion in the Working groups. As for concrete m easures, please refer to English -
translated version of "Interim  Report" compiled last December from the following link  
http://www.invest -japan.go.jp/documents/pdf/ chukanseili_working_group_en.pdf  
Paragraph 2.41, page 36:  
2.41. Japan has adopted further key measures and structural reforms to improve the business 
environment since its last Review. In 2020, pension laws were revised to expand the eligibility for 
employee insurance for part -time workers, starting from 2022. Also in 2020, legislation was revised 
to promote prolonging or abolishing compulsory retirement ages in firms. A work -style reform was 
enacted in 2018 to introduce a cap on overtime hours, estab lish rules on equal pay to address wage 
disparities between regular and non -regular workers in the same company, and introduce 
exemptions from work -hours restrictions for high -level professionals.  
EU question 16:  
Could Japan please clarify whether the 2018  work-style reform also contains rules on equal pay for 
equal work or work of equal value between women and men?  
Response  
Although a work -style reform enacted in 2018 to introduce a cap on overtime hours doesn't contain 
the systems concerning equal pay for  equal work or work of equal value between men and women, 
wage discrimination between men and women are banned in Japan. In addition, based on the law, 
the employers with more than 100 regular employees need to formulate gender equality action plans 
and di sclose information on women's activity. Moreover, as of July 2022, employers with more than 
300 regular employees must disclose their company's gender pay gap. We are addressing on closing 
gender pay gap through the measures as described above.  WT/TPR/M/438/Add.1  
 
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3 TRADE POL ICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Paragraph 3.2, page 37:  
3.3 […] Furthermore, in 2021, the Act was amended to simplify the procedures and ease the 
requirements of p reserving books and documents relating to customs duty by electromagnetic 
records, and enable importers to pay customs duty by credit card.  
EU question 17  
Can Japan elaborate about the legislative amendments in 2021 that aimed at simplifying procedures 
and specify about the procedures at stake?  
Response  
The legislative amendments in 2021 enabled importers and exporters to preserve books and 
documents by electromagnetic records without any prior approval by the Customs Director.  
Paragraph 3.5, page 37:  
3.5 The Nippon Automated Cargo and Port Consolidated System (NACCS), Japan's single electronic 
window, continues to provide online processing of procedures with Japan Customs and other related 
agencies.  
EU Question 18  
Could Japan provide more inf ormation about the governmental agencies that are actually connected 
to NACCS and about its intention to expand further the access to NACCS to more agencies in order 
to facilitate the border clearance process?  
Response  
The following administrative procedures are available through NACCS; port procedures, crew landing 
support system, trade control, animal/plant quarantine, quarantine, food quarantine, 
pharmaceutical and medical device  act, and procedures for certificate  of exportation, etc.  
At this time, we don't consider extending access to NACCS, however, we will do so as needed.  
Paragraph 3.7, page 38,  
3.7. An AEO  scheme remains in place to, inter alia, simplify customs procedures for AEOs.11 There 
have been no changes to the AEO scheme since the previous Review. As at August 2022, there were 
735 AEOs. According to the authorities, AEOs accounted for 8% of merchand ise imports and 42% 
of merchandise exports on a trade value basis in 2021. Under various mutual recognition agreements 
(MRAs) signed by Japan, Japan Customs considers the status of the members of the other AEO 
programmes when conducting its own risk assess ment. During the review period, Japan signed MRAs 
with Thailand on 5 April 2022 and the United Kingdom on 8 December 2020.  
EU question  19 
Could Japan please elaborate how it monitors the compliance of its 735 AEOs?  
Response  
After the authorization, AEOs wi ll be subject to post authorization audits by Customs. There are 
several types of audits, Customs conduct first audit within 2 years after authorization. After the first 
audit, Customs conduct regular audit within at least once every 5 years from recent au dit. If the 
AEO causes any serious irregularity, Customs conduct Special audit. In addition, AEOs are requested 
to submit internal audit report to Customs once a year.  
Paragraph 3.8, page 38  
3.8. The authorities state that Japan does not publish data on im ported merchandise subject to 
various types of inspection: e.g. none, documentary inspection, and physical inspection. They 
indicate that the specific purpose of the customs inspection is to make sure that the declaration 
matches with the actual goods and all the requirements for import are met. Japan also uses post -
clearance audit (PCA); between 1 July 2019 to 30 June 2022, Japan Customs conducted PCAs for 
5,560 importers.  WT/TPR/M/438/Add.1  
 
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  EU question 20:  
Could Japan provide information as to whether the post -clearance audits are also performed for 
checking the import declarations for e -commerce consignments? If so, are these related to business -
to-business imports (B2B) or goods sold to private persons (B2C), or goods sent by a private person 
to another private person ( C2C)? What is the proportion of the customs declarations for e -commerce 
goods which are subject to post -clearance audits (% of all import declarations)?  
Response  
All import declarations can be subject to the post -clearance audits, including import declara tions for 
e-commerce consignments.  
Any type of transaction can be subject to the post -clearance audits.  
It is unable to answer as to the proportion of the import declarations which are subject to post -
clearance audits because it would interfere with our en forcement efforts.  
Paragraph 3.11, page 39  
3.11. Japan has signed agreements and arrangements regarding the exchange of customs 
information with 39 countries and regions. These include Customs Mutual Assistance Agreements 
between governments, Customs Proce dures Chapters and Implementing Agreements in economic 
partnership agreements (EPAs), and Memoranda of Cooperation between customs authorities. Japan 
is a member of the World Customs Organization (WCO); it signed the WCO's Revised Kyoto 
Convention in 2001.  Japan has acceded to flagship instruments in the context of customs, such as 
the International Convention on the Harmonized Commodity Description and Coding System.   
EU question 21:  
Could Japan please clarify if its legislation also provides such facilita tions or simplifications regarding 
the import or export of e -commerce consignments? In particular  
• are there specific (fiscal or non -fiscal) rules in place for the import and/or export of low value 
consignments?  
• is there a specific data set to be used for the import declaration of e -commerce 
consignments?  
• is there a difference between the import customs formalities applicable to postal and express 
consignments?  
• are e -commerce platforms (also) liable for Customs f indings on import declarations, in 
addition to the declarant?  
• are the taxes 'vendor based' (by the e -commerce platform) collected or 'buyer based' (by 
the consignee) collected?  
Response  
(1) As is not specific to import/export of e -commerce consignments, there are the following 
examples.  
・Duty exemption for goods at a total customs value of 10,000 yen or less.  
・Simplified tariff applicable to goods at a total value of 200,000 yen or less  
・Simplified customs clearance for low -value import good s at a total customs value of 10,000 yen 
or less  
(2) As is not necessarily used for import declarations of all goods related to e -commerce 
consignments, reduced data set can be used for goods at a total customs value of 10,000 yen or 
less. 
(3) Import decla ration is required for express consignments and postal consignments exceeding 
200,000 yen, but import declaration is not required for postal consignments of 200,000 yen or less 
in principle.  
(4) There is no legislation that e -commerce platforms (also) are liable for Customs findings on import 
declarations, in addition to the declarant.  
(5) A person importing goods has the obligation to pay taxes on imported goods.  WT/TPR/M/438/Add.1  
 
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3.1.2 Customs valuation  
Paragraph 3.12, page 39:  
3.12. Japan's legislation on customs valuatio n has not changed since the previous Review. It is based 
on rules contained in the Customs Tariff Act. Customs value is primarily assessed based on the 
transaction value of the goods (c.i.f. value), which must also reflect costs incurred by the buyer. 
Should it not be possible to use this method, other methods used (in order) are transaction value of 
identical or similar goods, computed value based on the domestic selling prices or the production 
costs of those goods, and values determined by other methods.  According to the authorities, Japan 
does not keep data on different means of determining customs value  
EU question 22  
Could Japan provide more information on whether there are simplifications for the valuation of e -
commerce consignments in place, especially in case of the importation of fulfilment shipments or 
drop shipments?  
Response  
Japan determines customs value of any imported goods in accordance with the WTO Customs 
Valuation Agreement and the Customs Tariff Act, which incorporates the Agreeme nt into national 
legislation.  
3.1.3 Rules of origin  
Paragraph 3.15, page 39:  
3.15 Japan also applies preferential ROOs under the Generalized System of Preferences (GSP) and 
various RTAs it is party to (Sections 2 and 3.1.4).  
EU question 23  
Can Japan elabo rate on the extent to which the type of rule of origin selected by importers/exporters 
to claim for preferential origin tariff, is taken into account by Customs for the purpose of risk 
targeting?  
Response  
With regard to declarations claiming preferential tariff treatment, Japan Customs implements 
appropriate risk management. The detailed risk targeting methodology cannot be disclosed.  
3.1.6 Import prohibitions, licensing, and quotas  
3.1.6.2 Import licensing (approvals) and quotas  
Table 3.4, pa ge 49:  
Under the "Rationale" column, first line, it shows that the requirement for an import license regarding 
the [m]arine animals and their preparations; fish, crustaceans, other aquatics and their 
preparations; products of animal origin (marine animals,  fish, crustaceans and molluscs); seaweeds 
and their preparations, is justified as to [p]revent adverse effects to fishing activities of Japanese 
fishers.  
EU question 24  
Considering that this measure has been in place for a long time, how often does Japan  review the 
situation in order to ensure that the measure is indeed delivering on its intended purpose and to 
what extent is the result of such assessment impacting the said measure?  
Response  
This import licensing system applies only to fisheries products  that are loaded at sea. IUU fisheries 
are threat to properly managed Japanese fisheries. To prevent IUU's adverse effect on the Japanese 
fisheries management, Japan checks, through this system, legality of the fishery products when 
products that are loade d at sea are intended to be imported. Japan continues to combat IUU fisheries 
through this system.  
EU question 25  
Can Japan explain why METI is in charge of the import license measure, instead of MAFF?  WT/TPR/M/438/Add.1  
 
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  Response  
Importation of certain goods, including goods under MAFF's administration, is subject to import 
restrictions under the Foreign Exchange and Foreign Trade Law. The law requires import approval 
from the Minister of Economy, Trade and Industry.  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
Paragraph  3.109, page 60:  
3.109. Upon receipt of the application, the Government  shall register the foreign conformity 
assessment body as a foreign -registered conformity assessment body when the Government 
confirms that the foreign conformity assessment body satisfies all the provisions of the Act, including 
conformity with internatio nal standards for product certification bodies.  
EU question 26  
Could Japan provide information regarding the procedure for a foreign conformity assessment body 
to apply for registration with the Japanese government and where it can be found? Is it available in 
English? Could Japan provide details on the provisions in the Act to be satisfied by foreign conformity 
assessment bodies to be registered?  
Response  
The provisions regarding the registered conformity assessment bodies under four product safety  
acts are stipulated in the following Acts and Ministerial Orders.  
・Electrical Appliances and Materials Safety Act: Article 29 -42-4 
・Consumer Product Safety Act: Article 16 -31 
・Gas Business Act: Article 150 -152, Article155 -156 
・Ministerial Order on Technical Requirements for Liquefied Petroleum Gas Appliances, etc.: Article 
26-30, Article 32 -35 
・Act on the Securing of Safety and the Optimization of Transaction of Liquefied Petroleum Gas: 
Article 51 -54, Article 63 -64 
・Ministerial Order on Technical Re quirements for Liquefied Petroleum Gas  
Appliances, etc.: Article 26 -30, Article 32 -35 
English version of these Acts are available on the following pages.  
Only the original Japanese texts of the laws and regulations have legal effect, and the translations 
are to be used solely as reference materials.  
・Electrical Appliances and Materials Safety Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/2745  
・Consumer Product Safety Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/2804  
・Gas Business Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/3331  
・Ministerial Order on Technical Requirements for Liquefied Petroleum Gas Appliances, etc.  
https://www.meti.go.jp/policy/consumer/seian/gasji/contents/eng_TG_technical_requirements.pdf  
・Act on the Securing of Safety and the Optimization of Transaction of Liquefied Petrol eum Gas  
No English version  
・Ministerial Order on Technical Requirements for Liquefied Petroleum Gas  
Appliances, etc.  
https://www.meti.go.jp/po licy/consumer/seian/ekiseki/contents/eng_LPG_technical_requirements.
pdf WT/TPR/M/438/Add.1  
 
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EU question 27  
Could Japan provide information on whether there are any fees for issuing a conformity assessment 
certificate if the importer applies within the territory of Japan? If t here are fees could Japan provide 
information on those?  
Response  
Fees to issue the certificate of conformity are different among the registered conformity assessment 
bodies and the Japanese government does not know the detail of their fees.  
Please ask the registered conformity assessment bodies about the fees.  
3.3.2.2 Standards  
Paragraph  3.104, page 62:  
According to the authorities, the reason why there is a remaining gap of 3% in the harmonization of 
JIS with international standards is because of (i) protection of human health, safety, or the 
environment; (ii) fundamen tal climatic or other geographical factors; (iii) fundamental technological 
or infrastructural problems; or (iv) the corresponding ISO or IEC international standards are 
inappropriate.  
EU question 28  
Can Japan please specify which ISO or IEC international standards are inappropriate and explain 
why this is the case?  
Response  
"In the paragraph 3.104 of the TPR Report by the Secretariat (WT/TPR/S/438), "(iv) the 
corresponding ISO or IEC international standards are inappropriate" is listed as an independent 
reason for a remaining gap of 3% in the harmonization of JIS with international standards.  
This explanation might cause mis -understanding.  
The fact is that the reason why there is a remaining gap of 3% in the harmonization of JIS with 
internati onal standards is because of (i) protection of human health, safety, or the environment; (ii) 
fundamental climatic or other geographical factors; or (iii) fundamental technological or 
infrastructural problems.  
Therefore, the 3% of JISs mentioned above are not equivalent to the corresponding ISO or IEC 
international standards, which are inappropriate to adopt in Japan because of (i) protection of human 
health, safety, or the environment; (ii) fundamental climatic or other geographical factors; or (iii) 
funda mental technological or infrastructural problems."  
Paragraph 3.105, page 62  
3.105 Between April 2019 and March 2022, 13 new JASs were established, 28 were revised, and 
none were abolished. The authorities indicate that 77% of JASs are harmonized with inter national 
standards.  
EU question 29  
Could Japan provide information if there is any plan to further harmonize JAS agricultural standards 
with international standards?  
Response  
Regulation for Enforcement of the Act on Japanese Agricultural Standards stipula tes that trends in 
international standards shall be taken into consideration when establishing, revising, or confirming 
JAS. When Japan establishes, revises or confirms of JAS, Japan considers harmonization with 
international standards under this regulatio n. 
3.3.2.4 Conformity assessment and inspection  
Paragraph  3.109, page 63:  
3.109 Manufacturers of electrical and consumer products overseas may undergo conformity 
assessment and certification conducted in foreign countries by foreign -registered conformity 
assessment bodies, in accordance with relevant laws. According to the autho rities, under the WT/TPR/M/438/Add.1  
 
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  Consumer Product Safety Act, the Electrical Appliances and Materials Safety Act, the Act on the 
Securing of Safety and the Optimization of Transaction of Liquefied Petroleum Gas, and the Gas 
Business Act, a foreign conformity assessment b ody needs to apply for registration with the Japanese 
Government in order to be registered as a foreign -registered conformity assessment body under the 
Act. Upon receipt of the application, the Government shall register the foreign conformity 
assessment bo dy as a foreign -registered conformity assessment body when the Government 
confirms that the foreign conformity assessment body satisfies all the provisions of the Act, including 
conformity with international standards for product certification bodies.  
EU question 30  
Could Japan provide information on whether it is only manufacturers of electrical products and 
consumer products that can be certified by foreign -registered CABs for the Japanese market? If 
other products are allowed, please list.  
Response  
Under the Japanese legal system, manufacturers of gas appliances(for city gas) and liquefied 
petroleum gas appliances can be certified by foreign  registered conformity assessment bodies.  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.1 Sanitary and ph ytosanitary measures  
Paragraph  3.118, page  
3.118 SPS measures in Japan are in general based on relevant international standards or, where its 
measures do not conform to relevant international standards, on scientific risk assessment. Risk 
assessments unde rtaken by the Food Safety Commission under the Cabinet Office are available on 
its website. Risk analyses for phytosanitary measures undertaken by the MAFF are also available on 
the Ministry's website.  
EU question 31  
The EU considers that there are several  cases where Japan deviates from international standards on 
SPS issues (HPAI, BSE and other diseases). In addition, it appears that Japan does not take into 
account the relevant animal disease status as declared by the World Organisation for Animal Health , 
instead performing a lengthy additional risk assessment, conversely to what the EU applies to Japan 
in terms of disease status. Could Japan please explain why it reiterates the need to perform its own 
risk assessment and not apply in toto the SPS internat ional standards?  
Response  
The SPS agreement allows SPS measures which result in a higher level of sanitary protection than 
would be achieved by measures based on the relevant international standards, and Japan applies 
such measures based on scientific risk assessments.  
In terms of animal health, Japan conducts a risk assessment in accordance with the "Standard 
Procedure for Approval for Import of Designated Items into Japan to be Quarantined" and "Standard 
Operating Procedures for Approval fo r Import of Designated Items into Japan to be quarantined", 
which are consistent with the SPS agreement and the OIE codes.  
The standard procedure and the standard operating procedures are published in English and 
available at:  
https://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/080401sop_eng.pdf   
https://www.maff.go.jp/j/syouan/douei/e isei/sop/pdf/2010sop_en.pdf   
Japan always gives due consideration to the OIE official disease status recognition when conducting 
a risk assessment in accordance with the designated procedures.  
Japan utilizes application document (dossier) submitted to OIE for official recognition whenever it is 
available.  
EU question 32  
Could Japan please explain why when establishing import conditions, it still deviates from 
international standards?  WT/TPR/M/438/Add.1  
 
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Response  
SPS agreement allows SPS measures which result in a higher level of sanitary protection than would 
be achieved by measures based on the relevant international standards, and Japan applies such 
measures based on scientific risk assessments.  
In terms of animal health, Japan conducts a risk assessment in accordance with the "Standard 
Procedure for Approval for Import of Designated Items into Japan to be Quarantined" and "Standard 
Operating Procedures for Approval for Import of Designated Items into Japan to be quarantined", 
which are consistent with SPS agreement and the OIE codes.  
The standard procedure and the standard operating procedures are published in English and 
available at: https://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/080401sop_eng.pdf  
https://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/2010sop_en.pdf  
Japan alway s gives due consideration to the OIE official disease status recognition when conducting 
a risk assessment in accordance with the designated procedures.  
Japan utilizes the application document (dossier) submitted to OIE for official recognition whenever 
it is available.  
Paragraph  3.122, page:  
Japan is a member of the Codex Alimentarius Commission and the World Organisation for Animal 
Health, and a contracting party to the International Plant Protection Convention.  
EU question 33  
While being a member indeed of the World Organisation for Animal Health (WOAH), can Japan 
explain the inconsistency that it relies on WOAH assessment category to support its access to 
overseas market, while Japan does not apply WOAH assessment to grant access to its domestic 
market for overseas products?  
Response  
There is no inconsistency. As a member of the OIE, Japan decides import measures based on 
scientific risk assessments in accordance with the SPS Agreement and OIE codes. Japan also 
determines whether SPS measures of tr ading partners are scientifically reasonable in accordance 
with the SPS Agreement and OIE codes.  
3.3.3.2 Legislative framework  
Paragraph  3.123, Table 3.11  
Plant Protection Act - MAFF  - The Act provides the legal basis for regulations on plant protection 
including quarantine for local, imported, and exported plants.   
EU question 34  
Could Japan provide further details on the applicable steps and specific deadlines that apply to these 
steps concerning the assessment of new plant health SPS market access applications from third 
countries under the Plant Protection Act?  
Response  
When Japan receives from a country new plant health SPS market access requests on a plant, import 
of which is ban ned by the Plant Protection Act, Japan conducts consultations on quarantine measures 
with the country according to the steps described in "Standard Evaluation Procedure for the Request 
for Lifting a ban on plant import under Plant Quarantine ".  
Please find  a link to the Standard on the web site of Ministry of Agriculture, Forestry and Fisheries 
in Japan for your reference:  
https://www.maff.go.jp/j/syouan/syokubo/keneki/k_yunyu/attach/pdf/index -56.pdf  
The period required in each step of the Standard varies depending on the time required for technical 
discussions with requesting country.  WT/TPR/M/438/Add.1  
 
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  Paragraph 3.124, page:  
During the review period, Japan submitted regular notifications to the WTO Committee on Sanitary 
and Phytosanitary Measures (Box 3.2). In the SPS committee, no specific trade concerns were raised 
by Members regarding SPS measures maintained or planned by J apan.  
EU question 35  
When the WTO notification is made, sometimes the detailed implementing rules are not yet available, 
and an English translation becomes available much later or is not even provided. What steps Japan 
would consider taking to improve thi s situation?  
Response  
For example, regarding the revision of the standards such as MRLs of pesticides in food, necessary 
information including MRLs (draft/current), products covered, and relevant international standards 
is provided in the notification, in  English.  
Japan continues to provide necessary information to Members as promptly as possible in order to 
ensure transparency of SPS regulations in accordance with the SPS agreement and related 
guidelines.  
3.3.6 Government procurement  
Paragraph  3.155, page 76  
The principle of non -discrimination is pursued in all procurement activities except for preferences 
granted under RTAs to which Japan is a party. There are currently no RTAs in force that grant 
suppliers from non -GPA parties' treatment more  favourable than suppliers from GPA parties. 
Suppliers from non -GPA parties are not excluded from participating in GPA -covered procurement. 
However, there has been concern over the apparently low share of foreign companies in government 
procurement; it see ms that this is partly due to non -regulatory barriers, the geographical distance 
from certain overseas markets, and a lack of knowledge of the local market.156 Foreign participation 
in central government entities' and incorporated administrative agencies' (IAAs, some of which are 
listed as Annex 3 entities under Japan's GPA 2012 commitments) procurement is described in Tables 
3.15 and 3.16.  
EU question 36  
Can Japan provide a geographical breakdown for the categories listed on Table A3.2, namely the EU 
share ? 
Response  
The government of Japan do not have a geographical breakdown for the categories listed on Table 
A3.2 specifying countries.  
EU question 37  
Does Japan have any plans to further improve foreign companies' opportunities to participate in 
government procurement for instance through abolishing non -regulatory barriers and operating a 
transparent and accessible information channel?  
Response  
The procedures of government procurement in Japan are consistent with the GPA and other 
international agreements and designed to treat domestic suppliers and foreign suppliers equally. In 
addition, JETRO gathers information on procurements which are covere d by the GPA, the Japan -EU 
Economic Partnership Agreement and the Japan -UK Comprehensive Economic Partnership 
Agreement, and posts procurement information in Japanese and its summary in English on its portal 
site. Thus, Japan disseminates information on it s government procurement and expects many 
domestic and foreign suppliers to actively participate in government procurement in Japan.  WT/TPR/M/438/Add.1  
 
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3.3.7 Intellectual property rights  
3.3.7.12 Copyright  
Paragraph 3.216:  
Japan does not pursue site blocking as an anti -piracy tool to the same degree as other developed 
jurisdictions, largely due to concerns regarding consistency with Article 21(2) of Constitution and 
Article 4 of the Telecommunications Business Act, relating to privacy and censorship. In 2018, the 
Government a sked Internet service providers to voluntarily block three notorious manga pirate 
sites317 as an emergency measure while a panel was convened to review potential site -blocking 
legislation. No such legislation has been presented to the Diet to date.  
EU ques tion 38  
How does Japan rate the effectiveness of voluntary measures to block IP -infringing websites? Is 
Japan envisaging to introduce a website blocking system comparable to other major economies?  
Response  
Legislation on site blocking may be considered upon assessment of the damage caused by piracy 
and effects of other measures.  
Paragraph 3.217:  
Amendments in 2020 to the Copyright Act criminalized the operation of index sites, as well as the 
provision of computer programs/apps with similar functions. Violatio ns are punishable by up to five 
years in prison and/or a fine of JPY 5 million, upon the complaint of a right holder. Posting URLs or 
links to pirated content on an index site or app is also now considered copyright infringement, 
punishable by up to three years in prison and/or a fine of JPY 3 million, upon the complaint of a right 
holder.319 The Government has indicated that these amended provisions of the Copyright Act could 
be used to combat illicit streaming devices.  
EU question 39  
Could Japan provide a ny statistics on the number and effectiveness of applying criminal law 
measures to IP infringements?  
Response  
In 2021, the police of Japan have arrested 149 persons for violating the Copyright Act and cleared 
148 cases. Also, the number of charges brought  for violations of copyright laws in Japan is 151 from 
October 2020 to December 2021.  
The Agency for Cultural Affairs conducted a "Research Study on the Enforcement Status of the 
Amendment Copyright Act" in FY2021 to examine the effects of Illegalization of downloading of 
infringing contents although the study does not focus on the effects of the index site or app 
restrictions.  
3.3.7.13 Enforcement  
Paragraphs 3.224 and 3.225 : 
3.224 […] There were no changes to the Customs Act during the review period from 2018 to 2021 
that materially impact the process, availability, or protections associated with IPR enforcement at 
the border.  
3.225 Amendments in 2021 to the Design Act and Tra demark Act, and in 2022 to the Customs Act, 
which entered into force on 1 October 2022, were implemented in response to increasing imports of 
counterfeit goods for personal use via e -commerce platforms. Importing counterfeit goods for 
personal use does not  constitute infringement in Japan. The amendments clarify that foreign 
businesses that use a person in Japan to bring in counterfeit products by mail and other means 
commit infringement, and Japan Customs may accordingly seize the goods.335 Questions have been 
raised about the effectiveness of these amendments and whether they could be circumvented by 
designating an individual, rather than a business, as the sender.  WT/TPR/M/438/Add.1  
 
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  EU question 40  
There seems to be a contradiction between these two paragraphs. The Customs A ct as well as Design 
and Trademark Acts were amended in the review period. Could Japan clarify the situation?  
Response  
As mentioned in 3.224, there were no changes to the process associated with IPR enforcement at 
the border.  
However, during this review pe riod from 2018 to 2021, the Design Act and Trademark Act were 
amended while the Customs Act was amended in March 2022.  
Finally, these 3 amended acts came into effect in October 2022, simultaneously.  
EU Question 41  
While the legislative amendments passed in  2021 and 2022 will help stop the import of IP infringing 
goods for personal use from business operators, it cannot stop IP infringing goods shipped in for 
personal use from individual to individual (i.e. as a gift, goods exchanged over flea market platfor m, 
etc.). Likely, some business operators might try to abuse the system by pretending to be an 
individual/private person shipping the goods to another individual in Japan. How does Customs 
ascertain that the sender in a third country is a business (not a p rivate person/consumer) and 
consequently that it relates to a B2C transaction instead of a C2C transaction? What type of 
documents from the importer would be accepted by Customs to evidence that it relates to a person -
to-person transaction?  
Response  
In the  amendments of the Customs Act that came into effect on 1 October 2022, a new provision 
requires importers to submit documents proving that imported goods are NOT counterfeits.  
Japan Customs requires importers to submit emails etc. exchanged between import ers and senders 
of cargo, as well as documents including the name, address, and occupation of importers and 
senders.  
In addition to the documents submitted, Japan Customs will comprehensively examine the evidence 
submitted by right holders and the facts grasped through Customs investigation, and finally 
determine whether suspected goods are infringing IP.  
EU Question 42  
Does Customs expect a significant increase in the seizure of small parcels (postal and express) on 
the basis of the amendments and how shall it proceed with the destruction of the seized items as 
well as the related costs?  
Response  
We expect an increase in the seizure of small parcels. Since IP infringing goods cannot be brought 
into Japan, in most cases they should be destructed (dis posal / incineration).In addition, they should 
be destructed by voluntary disposal at the cost of importers or destructed at the cost of the Customs.  
EU question 43  
Could Japan provide information on  the first results of the new measures introduced in the Design 
Act and Trademark Act, and in the Customs Act, which entered into force on 1 October 2022 and 
concern seizures of counterfeit or pirated goods imported for personal use and sent to individuals  in 
Japan by foreign business operators?  
Response  
The number of seizures after the enforcement of the amended Customs Act is currently being 
compiled and cannot be provided at this time.  
EU question 44  
What other sanctions are foreseen for the sender of co unterfeit or pirated goods?  
Response  
Sanctions are not foreseen for the sender of counterfeit goods.  WT/TPR/M/438/Add.1  
 
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4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.1 Agricultural policy  
Paragraph 4.4, page 100:  
4.4. The Food, Agriculture and Rural Areas Basic Plan sets out Japan's agricultural policy in 
accordance with the Basic Law on Food, Agriculture and Rural Areas. The current Plan, adopted in 
March 2020, stipulates the objectives of promoting industrial and regional  policies to increase self -
sufficiency and establish food security. The Plan sets self -sufficiency targets for FY2030 of 45% on 
a calorie basis and 75% on a production value basis, as well as of 34% for feed, and a food domestic 
production ratio of 53% on a calorie basis and 79% on a production value basis in FY2030. In 
FY2021, self -sufficiency on a calorie basis was 38%.2 The Plan also sets an export target of JPY 5 
trillion by 2030. Agricultural policies are reviewed annually in the Annual Report/White Pa pers on 
Food, Agriculture and Rural Areas in Japan, issued by the Ministry of Agriculture, Forestry and 
Fisheries (MAFF); the latest Report was issued in May 2022.  
EU question 45  
The Food, Agriculture and Rural Areas Basic Plan sets some self -sufficiency t argets for FY 2030 for 
the agri -food sector and on a product -by-product basis. Could Japan clarify if these targets are 
purely aspirational, or are they compulsory targets? Through which policy tools is the enforcement 
of these targets pursued?"  
Response  
The Food, Agriculture and Rural Areas Basic Act stipulates that the food self -sufficiency ratio targets 
shall be established in view of improving the ratio and as a guideline for domestic agricultural 
production and food consumption, while identifying issue s which farmers and other relevant parties 
should address.  
To achieve these targets, based on the Basic Plan,  
- in terms of production, efforts are made to strengthen production/supply systems compatible with 
changes in domestic and overseas demand and enhance domestic agricultural production bases.  
- in terms of consumption, efforts are made to deepen the connection between consumers and food 
and agriculture and collaboration with the food industry.  
4.1.1.4 Domestic support  
Paragraph  4.23, page 102:  
4.23 The three direct payments programmes that fall under the Act on Multi -Functionality of 
Agriculture remain unchanged. The total area of 82,000 ha was estimated to receive direct payments 
for environmentally friendly agriculture of JPY 2.5 billion in FY2021. The direct payments for farmers 
in hilly and mountainous areas, under which payment rates depend on the slope of the land and 
production factors, ranged from JPY 21,000 per 0.1 ha for paddy fields in high -inclination areas to 
JPY 300  per 0.1 ha for pasture on a mild slope; the scheme covered 653,000 ha, amounting to a 
total of JPY 26.1 billion in FY2021. The direct payments for activities to enhance multi -functionality, 
under which unit prices depend on the type of land use and activi ty, to conserve or improve local 
resources, including mowing of farmland slopes or simple repairing of channels, covered 2.31 million 
ha and 26,258 organizations, amounting to JPY 48.7 billion in FY2021.  
EU question 46  
Could Japan indicate if the three dir ect payments programmes that fall under the Act on Multi -
Functionality of Agriculture are somehow linked to the realisation of targets and pathways identified 
in Japan's Strategic Energy Plan, the Plan for Global Warming Countermeasures, or the Long -Term 
Strategy under the Paris Agreement?  WT/TPR/M/438/Add.1  
 
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  Response  
Among the three direct payments programmes that fall under the Act on Multi -Functionality of 
Agriculture, direct payments for environmentally friendly agriculture supports extending midseason 
drainage in paddy fi elds and applying compost or cover crops to fields in response to the targets of 
"reduction of methane emissions from paddy fields" and "Sink of GHG by cropland management" in 
the Plan for Global Warming Countermeasures.  
EU question 47  
Could Japan specify the criteria for receiving direct payments for environmentally friendly 
agriculture?  
Response  
Eligible applicants for the payment are those farmers who implement both of the followings :  
- reducing the use of synthetic fertilizers and pesticides by  more than 50% from conventional farming 
practices in their region,  
- activities effective in preventing global warming and preserving biodiversity such as applying 
compost and winter flood control of rice paddies.  
【References 】Direct payments for environme ntally friendly agriculture: MAFF
（https://www.maff.go.jp/e/policies/env/sustainagri/directpay.html ） 
EU question 48  
Could Japan explain how the three direct payments programmes  that fall under the Act on Multi -
Functionality of Agriculture have been reflected in the DS:1 notification?  
Response  
The three direct payments programmes are classified in the last DS1 notifications as follows:  
- "The Payment for Activities to Enhance Mul ti-functionality' and 'the Direct Payments for 
Environmentally Friendly Agriculture";  
notified as part of 'Measures to Conserve and Improve Land, Water, and the Environment' in the 
category of "payments under environmental programmes" in Annex 2, Paragraph  12 of the 
Agreement on Agriculture, and  
- "The Direct Payment to Farmers in Hilly and Mountainous Areas";  
"payments under regional assistance programme" in Annex 2, Paragraph 13 of the Agreement on 
Agriculture  
Paragraph  4.27, page 103:  
4.27 According to the authorities, in 2022, as fertilizer prices soared, the Government supported 
farmers that introduced measures to reduce 20% of the use of chemical fertilizers with reference to 
a similar measure implemented in 2008.  
EU question 49  
Could Japan provide more details on the farm -level practices supported under this programme?  
Response  
This program is intended to compensate cost increase in fertilizer for farmers who work on reducing 
the use of chemical fertilizer. Practices at the farm  level required under this program include, for 
example, determining the appropriate amount of fertilizer to be applied based on the results of soil 
diagnosis.  
EU question 50  
Could Japan explain how this support has been reflected in the DS:1 notification?  WT/TPR/M/438/Add.1  
 
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Response  
The measure was taken in FY2022. Japan is now working on DS1 notification for FY2021 and will 
work on a notification for FY2022 in due course.  
4.1.1.4.4.2 Other cereals, sugar beet, starch potatoes, buckwheat, and rapeseed  
Paragraph  4.35, page 106:  
4.35 There has been no change to the Act on Price Adjustment of Sugar and Starch (Act No. 109, 
1965). The latest amendment entered into force in December 2018.  
EU question 51  
Could Japan clarify what are the reasons for the continuing incr ease in the level of aid for sugar beet 
(payments related to volume of production)? What is the impact of this increase on the national 
production and imports? This trend was already noted during the previous TPR of Japan.  
Response  
The total payment amount  of the support program to sugar beet will fluctuate, depending on crop 
conditions of a year that are greatly affected by the weather.  
Therefore a change in the total payment amount of the program would not lead to a change in 
domestic production. Import w ill be determined in response to domestic supply and demand.  
4.3 Manufacturing  
4.3.2 Policy developments  
Paragraph 4.88, page 113:  
4.88. During the review period, there were some major policy developments for manufacturing 
sectors, including those relating to resilience of supply chains, capacity  building for manufacturing 
semiconductors, and human rights due diligence.  
EU question 52  
With regard to the developments in the automotive sector, which of the new technologies is the 
Japanese government r eady to support? Rather electromobility or hydrogen technology?  
Response  
"Japan set out the goal for making the ratio of vehicles that are electrically driven among new sales 
100% in 2035.  
In order to achieve this goal, Japan will pursue ""range of pathways"" such as electric vehicle, fuel 
cell vehicles, and plug -in hybrid vehicles etc."  
4.4 Services  
Missing section  
In the previous TPR of Japan, the Secretariat report included a section 4.4.3 on postal, courier and 
express services. The current report does not seem to include such a section. As the EU asked a 
similar question in the previous exercise and the situation remains unchanged, it would like to inquire 
about the issue again in the framework of the ongoing TPR.  
EU question 53  
The unequal conditions of competition between Japan Post Service (EMS) and international express 
delivery companies have been highlighted in the past, including by the EU. Can Japan provide more 
information on any progress made to redress these unequal condit ions, in particular to make sure 
that Japan Post Service (EMS) is subject to customs clearance procedures and costs for competitive 
services similar to those of other international express delivery service companies?  WT/TPR/M/438/Add.1  
 
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  Response  
We recognize that the differe nce in the customs clearance procedures between the international 
courier service and the Express Mail Service (EMS) is attributed to the different natures of those 
services. Courier careers provide their customers with end -to-end cross -border delivery ser vice by 
themselves. On the other hand, postal operators, assigned with the universal service obligation, 
provide their customers with cross -border delivery service (e.g. EMS) by exchanging postal items 
between the postal operator in the country of origin a nd that in the country of destination. Building 
on this significant difference, in order to ensure seamless cross -border postal services for all the 
postal customers, we allow the Official Assessment System, other than the Self -Assessment System, 
in the cu stoms clearance procedures for postal items under the limited de  minimis criterion (i.e. less 
than or equal to 200 thousand yen). This difference is not for distorting market competitions between 
courier careers and postal operators, but for ensuring the s ingle postal territory as defined in the 
Constitution of the Universal Postal Union. Therefore, we maintain the existing framework.  
EU question 54  
Could Japan explain what measures it will take to create a level playing field in this sector?  
Response  
So fa r, we have fully liberalized the correspondence delivery market since 2003, prior to the 
privatization of the postal service. Now foreign companies who wish to provide correspondence 
delivery service are allowed to enter the correspondence delivery market by obtaining business 
permissions, which require applicants to comply with certain conditions including on confidentiality 
of communications, from the Minister of Internal Affairs and Communications. Those conditions are 
applied non -discriminatory to all t he applicants, and therefore we ensure a level playing field in the 
correspondence market. Consequently, xx foreign companies among 581 correspondence service 
providers have entered the market as of December 2022. As for the cross -border delivery service, 
we recognize that fair and free competition has been ensured as we answered to question 53.  
4.4.3 Transport services  
4.4.3.2 Air transport  
Paragraph 4.124, page 122:  
4.124. Regarding ports, in July 2022, the Cabinet decided an annual Specific Port Facility 
Development Project Basic Plan. Based on the Plan, the MLIT is to facilitate financing JPY 83.5 billion 
in the form of local government bonds that are used for devel oping facilities in ports and their 
surrounding industrial areas. The Plan targets 72 ports in Japan. In June 2022, Japan established a 
SDGs Partner Registration System for ports. The MLIT launched this system with a view to 
encouraging port operators to n otice and visualize the impact of their operation on SDGs. In addition, 
the MLIT is considering a certification system for decarbonization of port terminals.  
EU question 55  
Could Japan please clarify whether foreign -owned companies will be eligible to rece ive financing for 
developing facilities in the targeted ports in Japan under the Specific Port Facility Development 
Project Basic Plan?  
Response  
Foreign -owned companies won't be eligible to receive financing for developing facilities on an annual 
Specific Port Facility Development Project Basic Plan.  
Paragraph 4.125, page 122:  
4.125. In July 2022, the MLIT  announced the Action Plan to address labour shortages in ports and 
harbour transportation businesses. The MLIT's recent survey shows that more than 50% of the port 
and harbour operators that answered the survey in Japan face labour shortages, and that tha t 40% 
of them have already seen its negative impact on their operations. The Action Plan calls for, inter 
alia, the enhancement of labour condition and promotion of fair transactions and business practices.  WT/TPR/M/438/Add.1  
 
- 118 - 
 
EU question 56  
Could Japan provide more informati on on which are the port professions that are most impacted by 
labour shortage? Could Japan also provide more details about the concrete actions that have been 
undertaken to alleviate the issue of labour shortage, per type of port profession and whether 
additional measures have been envisaged.  
Response  
The Action Plan for Port Worker Shortage Measures contains information about them. Please see the 
following link (in Japanese):  
https: //www.mlit.go.jp/report/press/content/001491733.pdf  
Appendix Tables  
Table A4.1:  
EU question 57  
Paragraph 4.12 and Table A4.1 of the Secretariat's report refer to the agricultural safeguards applied 
in FY 2019 to FY 2021. Paragraph 3.55 of the same report refers to safeguards under bilateral 
agreements and mentions that no safeguard measures were imposed under any of Japan's RTAs. 
Could Japan clarify the origin of the products on which the safeguards mentioned in Table A4.1 
applied? Where they applie d on products from non -RTA countries, or on products of all origins 
imported outside of quotas (WTO and RTA quotas taken together)?  
Response  
The special safeguards (SSG) of the WTO Agreement on Agriculture is a provision that applies to 
imported goods, sub ject to MFN rate of duty. Japan does not limit the countries of origin to which 
SSG measures are applied.  
A4.2 and A4.3, pages 140 and 141  
EU question 58  
Why are the TRQs indicated under two separate lists? What is the difference between the two?  
Response  
As indicated in the annotations of each table, Table A 4.2 relates to agricultural tariff quota items 
for which Japan notified to the Agriculture Committee. Table A 4.3 relates to items including non -
agricultural products for which are subject to tariff qu otas, but they are not the items under the WTO 
notification to the Committee on Agriculture.  
14  UNITED STATES  
Part I. Questions based on the Secretariat Report (WT/TPR/S/438)  
 
Page 25, paragraph 2.5:  
 
Question 1: What coordination mechanisms exist between METI and other ministries and 
government agencies with trade policy responsibilities?  
 
Response  
Meetings and discussions are held both regularly and ad hoc between ministries , government  
agencies and any other parties in concern.  
 
Page 28, paragraph 2.11 : Japan is a notable donor to various WTO technical assistance activities.  
 
Question 2: Please elaborate on Japan's priorities and approach for providing technical assistance at 
the WTO.   
 
Response  
Japan's assistance places priority on technical assistance to developing countries for trade 
participation. Japan is supporting Sudan's accession to the WTO through the ITC, and through the WT/TPR/M/438/Add.1  
 
- 119 - 
 
  WTO's Global Trust Fund, Japan is also providing training for adminis trative officials and trade -
related academic assistance to Benin, Senegal, Brazil, and other countries.  
 
Page 36, paragraph 2.40:  The report discusses regulatory reform pilot schemes that are tested 
within a "sandbox" environment, before being implemented country -wide.  
 
Question 3: After the pilot stage, what is the process for implementing regulatory reforms at the 
national level for pilots deemed successful?   
 
Response  
Implemented country -wide of special measures for regulations refers to the reform of regulations 
on country -wide scale by amending laws, cabinet orders, etc. that originally stipulate such 
regulations, without being based on the system for National Strategic Special Zones.  
 
Pages 37 -38, paragraph 3.5:  
 
Question 4: What regulatio ns or other measures govern the operations of customs brokers in Japan?  
 
Response:  
It is stipulated in Customs Business Act. Act No.122 of 1967  
 
Page 51, paragraph 3.50 : According to the Secretariat's Report, Japan has a number of anti -
dumping  measures in place.  
 
Question 5: What mechanisms does Japan have in place to ensure that those measures are not 
being, or will not be, evaded?  
 
Response  
Japan does not have laws for the measures of the evasion of anti -dumping duty, besides the 
investigat ions of common violations against Customs Act, such as false declaration, etc. In a 
suspicious case of circumvention, Japan may address it in the original investigation, if it is found 
during the investigation, or a new investigation as needed.  
 
Question 6 : Does Japan have any cooperative arrangements in place with other WTO Members that 
assist Japan in investigating allegations of evasion from its domestic industry?  
 
Response  
Japan has established information sharing arrangements, including Customs Mutual  Assistance 
Agreement (CMAA), amongst 37 WTO Members, and under which, Japan is able to share such 
information as the matters regarding violation of customs -related laws and regulations. With respect 
to definitive anti -dumping duties, the evasion of such a nti-dumping duties is in violation of customs 
laws and regulations, hence information sharing on such circumstance is subject to the said 
arrangements.  
 
Question 7: Does Japan have the authority to investigate evasion suspicions ex officio?   
 
Response  
Japan has the authority to investigate the evasions of Anti -dumping duty measures in place, as those 
are violations against Customs Act.   
 
Page 55, paragraph 3.71 : The Secretariat Report states that "[a]ccording  to the authorities Japan 
has no export subsidy programmes in place." However, the United States understands that through 
the Grants for Production Areas, the national government, prefectural governments, and local 
agricultural councils provide support pay ments to farmers who produce rice for export, and this rice 
is exported under the Guidelines for Promotion of Rice Production and Sales in Accordance with 
Demand. The Guidelines require that Rice for Processing and Rice for New Market Development are 
produ ced, distributed, and used for intended purposes by requiring producers to submit sales 
contracts with buyers that indicate actual shipment and/or sales volume.  
 
Question 8: Please confirm that this understanding of the Guidelines is accurate.   
 WT/TPR/M/438/Add.1  
 
- 120 - 
 
Response  
The guidelines in question are for the rice for processing and the rice for new demand, which is used 
for feed, the rice for flour, whole crop silage, early harvested rice plant, rice plant for straw and rice 
for new market development. Any of those is not  distinguished whether it is for domestic or overseas 
markets.  
 
Question 9: Please explain why Japan does not consider support payments made to farmers for 
export -oriented rice production to be export subsidies.  
 
Response  
The Grant for Production Areas is a program which aims to support diverse local initiatives for 
agricultural development including the production of crops other than rice. Local agricultural councils 
determine specific criteria of payments to farmers under the program.  
The program is for the rice for processing and the rice for new demand, which is used for feed, the 
rice for flour, whole crop silage, early harvested rice plant, rice plant for straw and rice for new 
market development. Any of those is not distinguished w hether it is for domestic or overseas 
markets.  
 
Page 56, paragraph 3.78 : According to the Secretariat Report, the Japan External Trade 
Organization (JETRO) "has a staff of around 1,860 and has regional offices in 55 countries."  The 
United States also notes  that MAFF has announced the establishment of new export -oriented 
industry organizations and plans to establish overseas offices for product promotion.  
 
Question 10: Please provide additional information on this MAFF initiative.   
 
Response  
For information  of JETRO's overseas offices, please refer to the following URL: 
https://www.jetro.go.jp/en/jetro/worldwide.html  
 
Please note that new export -oriented industry organizations referred by United  States are not 
established by the government. By the revision of the Act on Facilitating the Export of Agricultural, 
Forestry, and Fishery Products and Food in May 2022, the government of Japan establishes the 
system to certify existing private organizati ons as "authorized export  promotion organizations". As 
of now, there are no organizations which plan for the establishment of overseas bases.  
 
Page 61, footnote 87 : With regard to Japan's TBT notifications, the footnote indicates that Japan 
submitted 120 notifications between 2017 and 2022, including 70 regular notifications and 13 urgent 
notifications.  
 
Question 11: Are there measures, other than the measures subject to the 13 urgent notifications, 
notified for which a 60 -day comment period was not specified? If so, what were those measures?   
 
Response  
For example, it is necessary to amend the Minimum Requirements for Biological Products to establish 
necessary standards upon the approval of new drugs such as vaccine and blood products. These 
standards need to be established urgently in the public interest and are generally subject to a 30 -
day comment period.  
 
Page 62, section 3.100:  The Secretariat Report notes that  "An amendment to the ordinance to 
the Act on Securing Quality, Efficacy and Sa fety of Products Including Pharmaceuticals and Medical 
Devices was adopted in January 2021. The amendment introduced a system where marketing 
authorization holders basically use electronic methods such as barcodes when providing information 
on pharmaceutic als and medical devices."   
 
The second sentence in the quote from the Secretariat Report does not make clear what information 
is contained within the barcodes or what purpose the new system serves.  
 
Question 12: What information do pharmaceutical and medi cal device companies have to provide 
under this amendment?  
 WT/TPR/M/438/Add.1  
 
- 121 - 
 
  Response  
Marketing Authorization Holders are required to display the barcodes on the outside of the product 
packages, that allow healthcare professionals to access the information of the package insert.  
 
Question 13: Has there been an analysis on the impact of the amendment?  
Response  
In 2022, Pharmaceuticals and Medical Devices Agency (PMDA ) conducted a survey of hospitals and 
community pharmacies regarding the availability of drug safety information . 
 
Question 14: If so, were stakeholders provided an opportunity to provide input into the analysis?   
 
Response  
The results of the survey (only in Japanese) will be published on the website as soon as they are 
compiled. (Scheduled for around the end of March.)  
 
Page 65, paragraph 3.118 : The Secretariat report states that Japan SPS measures are in general 
based on relevant international standards o r, where its measures do not conform to relevant 
international standards, on scientific risk assessment.  The United States notes that Japan maintains 
restrictions related to bovine spongiform encephalopathy (BSE) that exceed the BSE guidelines of 
the World  Organization for Animal Health (WOAH) for countries with certain risk classifications, e.g., 
more restrictive definition for specified risk materials (SRMs) for countries with a negligible risk for 
BSE.  
 
Question 15: Please explain if Japan has plans to align its regulations with WOAH guidelines for such 
restrictions.   
 
Response  
The SPS Agreement requires that SPS measures taken by WTO members are based on scientific 
principles.  
Regarding control measures for BSE, MHLW commissions risk assessments (inclu ding the definition 
of specific risk materials) to Food Safety Commission of Japan (FSCJ), taking into account the status 
of risk management for domestic beef, the status of risk management for imported beef in exporting 
countries, and the WOAH risk recogn itions etc. Based on the results of the risk assessment, MHLW 
will revise the domestic control measures, as well as the import measures without delay.  
 
Page 65,  Box 3.1 : In the Secretariat report, Japan's key agencies responsible for SPS measures 
are described.  
 
Question 16: The United States understands that the administration of food safety standards will be 
transferred from the Ministry of Health, Labour and Welfare (MHLW) to the Consumer Affairs Bureau. 
Will Japan notify this transfer to the WTO SP S Committee in advance?   
 
Response  
We are planning to submit a draft bill for transferring the administration of food safety standards 
from MHLW to Consumers Affairs Agency to this ordinary diet. (The administration of food safety 
surveillance will still b e under the jurisdiction of MHLW.)  
Since the contents of this draft bill only relate to the transfer of organization, and not to the 
regulatory measure itself which requires notification, we consider there is no need for a notification.  
 
Page 74, section 3.150:  The Secretariat Report states that "Japan maintains special procurement 
procedures for individual sectors, such as…telecommunications products and services, and medical 
technology products and services (since 28 March 1994) ."  
 
Question 17: Do public and private sector stakeholders have the opportunity to provide input to 
potential changes in those procedures?   
 
Response  
The government of Japan provides opportunities for domestic and foreign companies and business 
associations to  express their opinions and requests about Voluntary Measures on Government 
Procurement on a regular basis.  
 WT/TPR/M/438/Add.1  
 
- 122 - 
 
Page 92, paragraph 3.208 : The Secretariat's Report notes that "Japan's Regional Collective 
Trademark System… co -exists with the sui -generis system of geographical indications protected 
under the authority of the MAFF" (Ministry of Agriculture, Forestry and Fisheries). As it appears there 
are two frameworks for protecting geographical indications (GIs) in Japan:  
 
Question 18: Please provide informatio n on the scope of protection provided under each system and 
detail any differences between the two systems.  
 
Response  
The Regional Collective Trademark System is a system in which the name of a regional brand is 
registered as a trademark right (indication  of the source) and the name is allowed to be used 
exclusively.  
On the other hand, the Geographical Indication Protection System is a system in which the name of 
agricultural, forestry and fishery product and liquor products and liquor products with charac teristics 
associated with the place of origin is registered together with the guideline such as the production 
method of the product, and the name is allowed to be protected as common property of the region.  
Both systems are aimed at protecting regional br ands, but there are differences in the subjects of 
protection, registration requirements, and regulatory means.  
 
Question 19: Can Japan elaborate as to when a GI right holder should elect to use Japan's Regional 
Collective Trademark System managed by JPO o r the sui generis system of protection for GIs 
provided for under the authority of the MAFF?   
 
Response  
➢ When a GI right holder wishes to protect a regional brand by exercising its own rights and also to 
utilize it as a well -known regional brand in a cert ain geographical area by itself, the JPO encourages 
to use the Regional Collective Trademark System.  
➢ When a GI holder wishes to eliminate counterfeit products of local brands through government 
crackdowns, and to appeal to consumers by visualizing the st rengths of products such as quality, 
manufacturing method, reputation, etc. that are tied to the region, we encourage to use the GI 
Protection System.  
➢ When a GI holder wishes to take advantage of the merits of both systems, we encourage to use 
the both Systems.  
 
Question 20: Can Japan confirm that GIs protected via international trade agreements are examined 
by relevant Japanese authorities, published f or third party opposition, and refused protection if they 
are considered the common name for a good as recognized in Japan? If a GI protected via 
international trade agreements consists of a compound name, will the generic components of that 
name, if any, be noted as exempt from GI protection?   
 
Response  
Regarding agricultural GI products, Japan provides special provisions to GI protection through 
international agreement under the Act on Protection of the Names of Specific Agricultural, Forestry 
and Fishery  Products and Foodstuffs. Chapter 4 in the Act stipulates requirements for GI protection 
through international trade agreements (Article 29), that generic names are not protected under the 
Act (Article 29 (1)(ii)(a)), and a public announcement for oppositi on procedure (Article 24 and 25). 
In addition, if GI consists of a compound name and a generic name is included in the GI, the generic 
name can be excluded from the protection under the Act (Enforcement Regulations Article 3 (iv)).  
 
Regarding GI products of liquor, National Tax Agency may confirm that GIs do not fall under any 
items of Paragraph (3) of the "Notice on Establishing Indication Standards Concerning Geographical 
Indications for Liquor", through negotiations with the member states of th e WTO or by referring to 
the registered information of GIs of the WTO (Paragraph (6)). In this case, National Tax Agency 
shall make the relevant materials available to the public beforehand in order to seek opinions from 
the public (Paragraph (7)).  
 
Indica tions which are used in Japan as generic names for liquor are not protected (Item (ii) of 
Paragraph (3)). If a GI consists of a compound name including a generic name for liquor, the generic 
name can be excluded from the protection. Generic names of liquor  are defined in the Guideline for 
GIs of liquor (Item 3, Paragraph 4, Chapter 1) and are determined by comprehensively considering 
information from newspapers, books, websites and productions or sales of liquor using the generic 
name in Japan.  WT/TPR/M/438/Add.1  
 
- 123 - 
 
  As a general  rule, components of a compound name are not protected. However, with regard to the 
component that has been confirmed not to be generic names through the rejection requirements 
(Paragraph 3) and a public announcement for opposition procedure, the component  of a compound 
name may be protected as a GI with a clear  
 
announcement that the use of the word or phrase also constitutes use of the name of the GI.  
 
Page 94, paragraph, 3.216 : The Secretariat Report states that " Japan does not pursue site 
blocking as an  anti-piracy tool to the same degree as other developed jurisdictions, largely due to 
concerns regarding consistency with Article 21(2) of Constitution and Article 4 of the 
Telecommunications Business Act, relating to privacy and censorship."   
 
Question 21 : What are alternative solutions to website blocking that Japan has used as anti -piracy 
tools?  
 
Response  
Relevant ministries and agencies implement the necessary measures based on the comprehensive 
Measures and work schedule to combat against Piracy Distributed Online and Time Schedule of the 
Measures updated in April 2021, while also verifying the extent of the damage and the effects of the 
measures.  
 
Question 22: The Secretariat's Report also states that a panel was "convened to review potential 
site-blocking legislation." What were the conclusions reached by this panel?  
 
Response  
The Task Force did not reach a conclusion on the legislation of site blocking, but shared the 
recognition that anti -piracy measures should be implemented comprehensively.  
 
Pages 94 -95, paragraph 3.217 : The Secretariat's Report mentions amendments in 2020 to the 
Copyright Act that "criminalized the operation of index sites, as well as the provision of computer 
programs/apps with similar functions."  
 
Question 23: Could Japan  elaborate on how, if at all, the term "index site" is defined in the Copyright 
Act?  
 
Response  
The definition of so -called index sites are provided in article 113, paragraph (2), item (i) (a website, 
etc. set forth in item (i)) of the Copyright Act and th e definition of so -called index apps are provided 
in that article, item (ii) (a computer program set forth in item (ii)).  
 
We note that, as a result of the 2020 amendments to the Copyright Act, the term "transmitter 
identification code" is used multiple ti mes in different provisions relating to index sites that facilitate 
the exploitation of infringing works (see Articles 113 and 119).  
 
Question 24: Could Japan please elaborate on what the term "transmitter identification code" is 
meant to refer to?  It do es not appear to be separately defined in the Copyright Act.  
 
Response  
In Article 47 -5(1)(i) of the Copyright Act, "transmitter identification code" means "the letters, 
numbers, symbols, or any other code by which the transmitter of an automatic public transmission 
is identified." This means a so -called URL.  
 
The Secretariat Report states in paragraph 3.217 that under the 2020 amendments to the Copyright 
Act, "Posting URLs or links to pirated content on an index site or app is also now considered copyright 
infringement, punishable by up to three years in prison and/or a fine of JPY 3 million, upon the 
complaint of a right holder."  
 
Question 25: What are the procedures for right holders to file a complaint?   
 WT/TPR/M/438/Add.1  
 
- 124 - 
 
Response  
Filing a criminal complaint me ans that a person who has been injured by an offense to file with a 
public prosecutor or a judicial police officer in writing or orally the fact of the crime and request the 
punishment of the offender.  
 
Pages 94 -95, paragraph 3.217 : The Secretariat's Repor t states that amended provisions of the 
Copyright Act concerning the criminalization of index sites "could be used to combat illicit streaming 
devices."  
 
Question 26: Please provide more information about how these provisions could be applied in this 
mann er.  
 
Response  
As noted in paragraph 3.217, the act of managing a so -called index site with which the link 
information or the like leading to infringing contents is consolidated and the users are guided to 
infringing contents, and the act of providing a so -called index app with the same functionality as 
that site are regarded as illegal and included in the scope of criminal punishment in amendments in 
2020 to the Copyright Act. Therefore, these provisions could be considered applicable to illi cit 
streaming devices, etc., on which an index app is installed.  
 
Page 95, paragraph 3.219 : The Secretariat's Report discusses an amendment to the Copyright 
Act promulgated in 2021 whereby "copyright holders who grant a license for broadcasting are now 
also presumed to have granted a license for simultaneous online distribution."  
 
Question 27: Does the presumption cover other forms of online transmission besides "simultaneous 
online distribution?" For what period of time is the act of simultaneous online d istribution permitted 
under the presumption?   
 
Response  
The amendments in 2021 to the Copyright Act is intended to facilitate processing of rights for internet 
transmission of broadcast program that can be equivalent to broad casting, and covers services s uch 
as simultaneous broadcasting, and catch -up TV (hereinafter referred to as simultaneous 
broadcasting, etc.). Therefore, it does not include all online transmission.  
 
Simultaneous broadcasting, etc. is subject to the requirements that the content of the broadcast 
program, not be changed and that the broadcast be made within a certain period of time from the 
day on which the original broadcasting takes place (Article 2, paragraph (1), item (ix) -7 of the 
Copyright Act). The provisions on presumed permission  in your question is a provision that presumes 
that the right holder has authorized not only broadcasting but also use in simultaneous streaming, 
etc., unless the person manifests an intention to the contrary upon granting the authorization in 
concluding a  contract for exploitation of a work, etc. in a broadcast programs, etc. It can be overruled 
if otherwise or counterevidence stipulated.  
 
Page 96, paragraph 3.22:  The Secretariat Report states that "The Government offers various 
consultation desks through which counterfeiting and piracy can be reported and addressed. Various 
Government agencies and entities are engaged in anti -piracy and counterfeiting efforts, including 
the JPO, MOFA, JETRO, the National Police Agency, Japan Customs, the ACA, and attorney 
associations…In addition to enforcing recent Copyright Act amendments (Section 3.3.7.12), the 
Government aims to strengthen international cooperation and law enforcement to improve detection 
of foreign organizers/managers of pirate websites and will promot e security software capable of 
deterring access to pirate websites"  
 
Question 28: Is there a central organization or task force that coordinates communication among 
these different agencies and entities to address the reports received?  
 
Response  
Secretariat of Intellectual Property Strategy Headquarters  coordinate relevant ministries a nd 
agencies in promoting the IP strategies including Anti -counterfeit piracy.  
 
Question 29: What is the process for selecting which security software to promote?  
 WT/TPR/M/438/Add.1  
 
- 125 - 
 
  Response  
We do not seek to promote any specific security software to deter access to pirate sites.  
 
Page 97, paragraph 3.225 : The Secretariat Report states that "Amendments in 2021 to the Design 
Act and Trademark Act, and in 2022 to the Customs Act, which entered into force on 1 October 
2022, were implemented in response to increasing imports of counterfeit goods for personal use via 
e-commerce platforms. Importing counterfeit goods for personal use does not constitute 
infringement in Japan. The amendments clarify that foreign businesses that use a person in Japan 
to bring in counterfeit products by mail and other means commit infringement, and Japan Customs 
may accordingly seize the goods. Questions have been raised about the effectiveness of these 
amendments and whether they could be circumvented by designating an individual, rather than a 
busine ss, as the sender." Page 117 of the JPO Status Report, cited by the Secretariat Report, uses 
the term "vendor": "In response to the increasing imports of counterfeit goods for personal use, it 
was clarified that an overseas vendor's  act of bringing counter feit goods into Japan by mail or other 
means constitutes an infringement of trademark right, and regulations on the inflow of counterfeit 
goods were strengthened." (Emphasis added).  
 
Question 30: Does the term "vendor" encompass only legal persons (i.e. co rporate entities), or does 
it also include natural persons?   
 
Response  
The term "vendor" may also include natural persons.  
 
Page 97, paragraph 3.225: Japan has implemented amendments in 2021 to the Design Act and 
Trademark Act, and in 2022 to the Customs Act.  
 
Question 31: Since implementation, has Japan seen an increase in seizures for goods that infringe 
intellectual property rights?   
 
Response  
The n umber of seizures after the enforcement of the amended Customs Act is currently being 
compiled and cannot be provided at this time.  
 
Page 102, Paragraph 4.20 : The Secretariat report describes Japan's Strategy for Sustainable Food 
System, MeaDRI (Measures f or Achievement of Decarbonization and Resilience with Innovation). 
The Japanese Ministry of Agriculture, Forestry, and Fisheries website 
(https://www.maff.go.jp/e/policies/env/ env_policy/meadri.html ) indicates that one of the 
objectives of the MeaDRI is sustainable sourcing for import materials by 2030.  
 
Question 32: How does Japan define a "sustainable" source of imports?   
 
Response  
The strategy is intended to encourage companies in food industry to turn their source of materials 
into sustainable ones.  
Each company is expected to set its own targets of "sustainable sourcing" taking account of various 
factors including environment and human rights.  
 
Page 102, Par agraph 4.21 : The Secretariat report describes a grant for agricultural facilities and 
distribution centers.  
 
Question 33: Please explain if this grant was intended to improve the functioning of supply chains. 
If so, how successful has that effort been?  
 
Response  
The "Comprehensive Support Grant for Creating Strong Agriculture" is intended to provide support 
for constructing distribution centers of agricultural products necessary for joint delivery and 
fundamental facilities for farming in rural areas, and  promoting pilot programs in an effort to develop 
innovative farming systems. This grant can cover supports for the improvement of supply chains, 
including enhancement of quality and hygiene management of fresh food products, and optimization 
of logistics.  
 WT/TPR/M/438/Add.1  
 
- 126 - 
 
Page 103, Paragraph 4.26 : The Secretariat report describes a wheat, barley, and soybean 
profitability and productivity improvement project that provided subsidies to groups of farmers.  
 
Question 34: Please provide the eligibility requirements for farmer s to receive these subsidies.   
 
Response  
Farmers organizations which meet the following requirements are eligible for the subsidies:  
・rules of administration are provided in their statutes,  
・enough capacity is secured to implement their project and account ing procedures appropriately,  
・five or more farmers belong to the organization as permanent employees.  
 
Question 35: What portion of the project funding was used for research?   
 
Response  
No portion was used for research since this project is intended to fa cilitate spreading technologies 
to producers.  
 
Question 36: What were all the allowable uses of this funding?   
 
Response  
The followings are the allowable uses of this project:  
- introduction of agricultural technology and aggregation of farmland in order to increase labor 
productivity and maintain high yields and quality.  
- installation of machines necessary for farming  
- establishment of a stable supply system through proper op eration of storage facilities, including 
deliberate reservation of inventory and timely release of stocks.  
 
Page 103, Paragraph 4.27 : The Secretariat report describes a 2022 support program to incentivize 
a 20% reduction in fertilizer use, and indicates th at a similar measure was implemented in 2008.  
Question 37: Please explain how the 2008 program was structured, and what are the similarities 
and differences between the 2008 and 2022 programs.   
 
Response  
There are no major differences between the two prog rams, both of which are to compensate for cost 
increase in fertilizer for farmers working to reduce chemical fertilizer use.  
 
Question 38: Did Japan conduct an evaluation of the 2008 program? If so, was that evaluation used 
to design the 2022 program?   
 
Response  
Japan reviewed the 2008 program and made improvements on application procedure of the 2022 
program to facilitate farmers' access to the program.  
 
Question 39: To what extent was Japan able to reduce fertilizer use through the 2008 program, and 
is data available on any affects that reduction may have had on productivity?   
Response  
The government of Japan did not collect data on reduction of chemical fertilizer use and on effects 
on productivity through the 2008 program.  
 
Page 105, Paragraph 4.32 : MAFF 's 2022 budget mentions Rice for New Market Development and 
Rice for Exports under the paddy field utilization category. In the 2023 budget, New Market 
Development is again mentioned, but Rice for Exports is not.  
 
Question 40: Please explain if Japanese r ice farmers can still grow table rice for exports to be eligible 
for domestic support programs. If so, what mechanisms exist to ensure that this rice is segregated 
and does not end up in the domestic table rice market?  
 
Response  
The program is for the ric e for processing and the rice for new demand, which is used for feed, the 
rice for flour, whole crop silage, early harvested rice plant, rice plant for straw and rice for new 
market development. Any of those is not distinguished whether it is for domestic or overseas 
markets.  WT/TPR/M/438/Add.1  
 
- 127 - 
 
  Besides those rises, the requirement of the submission of a sales contract is required to confirm that 
the rice is produced for purposes other than not for table use.  
 
Question 41: Please explain what would happen if a farmer or handler tried to sell this rice into the 
domestic table rice market? Can the same rice be eligible for other uses, like rice flour or other 
processed products, or does it have to go through a pre determined channel based on the farmer's 
intent during planting?  
Response  
Regarding the rice for processing and for new demand, a sales contract is submitted to confirm that 
the rice is produced for purposes other than for table use. It is not allowed to sell the rice as table 
rice. Thus, if the rice is sold as such, the subsidy has to be returned and the offender is to be publicly 
announced.  
 
Question 42: Please provide the quantity of rice exported that received support under Rice for New 
Market Developm ent for each year since 2018.   
 
Response  
The support for rice for new market development does not distinguish whether it is for domestic or 
overseas markets, and therefore the amount of exported rice subject to the support is not 
distinguished.  
 
  WT/TPR/M/438/Add.1  
 
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15  COSTA RI CA 
A. Informe de la Secretaría  
 
Página 23, párrafo 1.25  
1.25. El Japón sigue siendo una de las principales fuentes mundiales de inversión extranjera. El 
volumen de las inversiones japonesas en el extranjero creció considerablemente entre 2017 y 2021, 
año en que alcanzó cerca de USD 2 billones (cuadros 1.6 y 1.7). Los Estados Unidos son, con gran 
diferencia, el principal destino de la mayor parte de las salidas de IED del Japón (alrededor de un 
tercio). Les siguen el Reino Unido, China y los Países Bajos. El p orcentaje que reciben América Latina 
y África de las inversiones del Japón en el exterior sigue siendo muy escaso.  
 
Preguntas  
• ¿Podría Japón brindar mayor información sobre las principales razones que motivan a la IED de 
Japón escoger Estados Unidos, Reino Unido, China y los Países Bajos como destinos de 
preferencia?  
• ¿Podría Japón brindar mayor información sobre las razones por las que se estima que las 
inversiones en América Latina han sido históricamente escasas?  
 
Response  
The amount of FDI  stock from Japan to Central and South America are 13.1 trillion JPY in 2020 and 
11.8 trillion JPY in 2021. Although we do not have precise information on the geographic preferences 
of outward FDI in the private sector, as a whole, outward FDI from Japan h as increased as Japanese 
firms have expanded their operations overseas. In addition, a driving force behind the increased 
growth rate of FDI in Asia, including China, is the acceleration of the build -up of supply chains within 
the Asian region, including t he relocation of production bases.  
Considering the above -mentioned  facts, the reason why investment in a certain region has remained 
at historically low levels may be due to the relatively small number of Japanese firms expanding into 
the region against the backdrop of geographical distance and strength of linkages in th e supply 
chain.  
 
Página 36, párrafos 2.27 y 2.28  
2.27. La FEFTA se modificó en noviembre de 2019; la modificación entró en vigor en junio de 2020. 
Estas modificaciones se refieren principalmente a la preocupación creciente por la seguridad 
nacional, la fug a de tecnología clave y la seguridad del suministro de mercancías consideradas 
esenciales.  
 
2.28. Con arreglo a la modificación, un inversor extranjero que solicite una participación del 1% en 
las empresas de importancia para la seguridad nacional, la segu ridad pública, la infraestructura o la 
economía del Japón debe someterse a un proceso de notificación y aprobación previas. La versión 
anterior de la FEFTA solo exigía esa notificación y aprobación previas si los inversores extranjeros 
aspiraban a una part icipación del 10% en una empresa. Los reglamentos de aplicación de esta 
modificación se adoptaron en mayo de 2020 y entraron en vigor en junio de 2020. Las autoridades 
indican que se presentaron 2.171 solicitudes en 2020 y 2.859 en 2021, y que no se denegó  ninguna.  
 
Pregunta:  
• ¿Podría  Japón indicar si considera que las modificaciones realizadas han tenido implicaciones 
en la atracción de IED? De ser así, ¿en cuál sector ha sido más evidente el cambio?  
 
Response  
Inward direct Investment in 2019 was JPY 4.365 trillion, and it was JPY 6.505 trillion in 2020, 3.605 
trillion in 2021, with no significant changes after the amendments.  
 
Página 40, párrafo 3.2  
3.2. El principal instrumento legislativo que abarca los procedimientos y la documentación aduaneros 
sigue siendo la Ley de Aduanas y sus reglamentos y órdenes de aplicación. Si bien durante el período 
objeto de examen se introdujeron algunas modificaciones en la Ley, el sistema de procedimientos 
aduaneros, facilitación del comercio y valoración en aduana s e mantuvieron en gran medida sin 
cambios (incluidos los cambios institucionales y la evolución de la legislación y de la reglamentación). 
En junio de 2020, la Oficina de Aduanas y Aranceles del Ministerio de Hacienda (MOF) publicó el Plan 
de Aduanas Inteli gentes 2020 con miras a fomentar la digitalización de los procedimientos 
aduaneros, las ayudas a los usuarios de acuerdos comerciales regionales (ACR) para mejorar su WT/TPR/M/438/Add.1  
 
- 129 - 
 
  practicidad y la automatización de la inspección aduanera. Además, en 2021 la Ley se modi ficó para 
simplificar los procedimientos y flexibilizar los requisitos para la conservación de libros y documentos 
relativos a los derechos de aduana en registros electromagnéticos, y permitir a los importadores 
pagar esos derechos con tarjeta de crédito.  
 
Pregunta  
• Con respecto al Plan de Aduanas Inteligentes ¿podría Japón comentar el avance en la 
implementación del plan y su contribución con la digitalización de los procedimientos aduaneros  
y la automatización de la inspección aduanera ?  
 
Response  
As stated in the t ext of the Smart Customs Initiative 2020, for each of the measures that should be 
implemented to realize the medium - to long -term vision set forth in the initiative, measures that will 
be implemented over a period of approximately 3 years are defined as sh ort-term measures, while 
measures that will be implemented over a longer period (up to approximately 10 years) are defined 
as medium - to long -term measures.  
Progress in the implementation of each measure is regularly followed up and reviewed as necessary 
to ensure steady progress.  
The medium - to long -term vision also includes digitalization of customs procedures and automation 
of cargo inspection processes at customs inspection areas.  
 
Página 67, cuadro 3.9  
 
Cuadro 3.9 Principales leyes en materia de normas y reglamentos técnicos, septiembre de 
2022  
Legislación/organismo  Objetivo  
Ley de Normalización Industrial/METI  Se aplica a todos los productos salvo los 
medicamentos, los productos químicos agrícolas y 
empleados como fertilizantes, los hilados de seda, los 
productos alimenticios, los productos agrícolas y los 
productos forestales,  
los datos; los servicios; y los s istemas de gestión.  
En virtud de la Ley se establece el Comité de Normas 
Industriales del Japón (JISC), el sistema de marcas 
JIS y el marco jurídico para las normas, la certificación 
y la acreditación de los organismos y laboratorios de 
certificación.  
Ley de Seguridad de los Productos de 
Consumo, de 1973/METI  Estipula que: i) un pequeño número de productos 
debe cumplir determinadas prescripciones técnicas; y 
ii) los importadores y fabricantes de determinados 
productos deben cumplir prescripciones en mat eria de 
mantenimiento. Establece asimismo el marco jurídico 
para comunicar información sobre los accidentes con 
los productos de consumo.  
Ley de Garantía de Calidad, Eficacia e 
Inocuidad de los Productos, incluidos los 
Productos Farmacéuticos y los 
Dispo sitivos Médicos, de 1960/ MHLW  Regula la fabricación, importación y venta de 
productos farmacéuticos y dispositivos médicos, 
productos para terapias regenerativas y celulares, 
productos para terapia génica y cosméticos.  
Ley de Normas Agrícolas del Japón, de 
1950/MAFF  Se aplica a los productos alimenticios, bebidas, 
aceites y grasas, así como a otros productos agrícolas, 
forestales, ganaderos y pesqueros y sus productos 
derivados, con excepción de los productos 
farmacéuticos, los cosméticos y los me dicamentos 
para terapias regenerativas. Establece el marco 
jurídico de las normas agrícolas del Japón (JAS) y los 
criterios de adopción de normas, gradación de la 
calidad, certificación y acreditación de los organismos 
de certificación, los laboratorios y los inspectores.  WT/TPR/M/438/Add.1  
 
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Ley de Normas de Construcción, de 
1950/Ministerio de Ordenación 
Territorial, Infraestructura, Transporte y 
Turismo, de 1950/MLIT  Se aplica a los edificios y a su construcción. Dispone 
el establecimiento de normas para la construcción de  
edificios, incluidas las relativas a la seguridad contra 
incendios y los procedimientos de inspección, 
certificación y homologación de edificios.  
Ley de Seguridad de los Aparatos y 
Materiales Eléctricos, de 1961/METI  Se aplica a los aparatos y materiales eléctricos. La Ley 
regula la fabricación y venta de aparatos eléctricos y 
dispone que sus fabricantes e importadores deben 
inscribirse en el registro del METI y velar por la 
conformidad de los aparatos con las prescrip ciones 
técnicas.  
Ley de Mediciones, de 1992/METI  Establece las unidades del Sistema Internacional de 
Unidades como las unidades de medición en el Japón 
y el marco jurídico para su aplicación y verificación y 
para la certificación de los aparatos de medición.  
Ley de Etiquetado de Productos 
Alimenticios,  de 2013/CAA  Asegura un etiquetado adecuado de los productos 
alimenticios mediante el establecimiento de normas y 
la indicación de otra información necesaria para el 
etiquetado de productos alimenticios destinados a la 
venta  
 
Pregunta  
• Respecto a la Ley de Normalización Industrial, la Ley de Seguridad de los Productos de Consumo 
y la Ley de Garantía de Calidad, Eficacia e Inocuidad de los Productos, Ley de Normas Agrícolas 
de Japón, Ley de Normas de Construcción, Ley de Seguridad de los Aparatos y Materia les 
Eléctricos, Ley de Mediciones y la Ley de etiquetado de productos alimenticios ¿podría compartir 
el enlace para acceder a estas?  
 
Response  
Links to each law are as follows:  
The translations contained in the Japanese Law Translation Database System are not official texts, 
and not all of the translations are finalized versions. Only the original Japanese texts of the laws and 
regulations have legal effect, and the translations are to be used solely as reference materials to aid 
in the understan ding of Japanese laws and regulations.  
 
・Industrial Standardization Act ： 
https://www.japaneselawtranslation.go.jp/ja/laws/view/3592  
・Consumer Product Safety Act ： 
https://www.japaneselawtranslation.go.jp/ja/laws/view/2804  
・Electrical Appliances and Material Safety Act ： 
https://www.japane selawtranslation.go.jp/ja/laws/view/2745  
・Measurement Act ： 
https://www.japaneselawtranslation.go.jp/ja/laws/view/3027  
・Act on Japanese Agricultural Standards ： 
Japanese: https://elaws.e -gov.go.jp/document?lawid=325AC0000000175  
English: https://www.japaneselawtranslation.go.jp/ja/laws/view/ 3378 
* It is not the official text, nor is it the last revised version. The Japanese law itself has legal force 
and effect, and the translation should be used only as a reference material to assist in understanding 
the law.  
The name of the law is not "Agri cultural Standards Act of Japan" but "Act on Japanese Agricultural 
Standards" is the official English name.  
・Building Standards Act ： 
https://www.japaneselawtranslation.go.jp/ja/laws /view/4024  
・Food Labeling Act ： 
https://www.japaneselawtranslation.go.jp/ja/laws/view/3649  
 
Página 68, párrafo 3.100  
3.100 En enero de 2021 se adoptó una modificación de la Orden relativa a la Ley de Garantía de 
Calidad, Eficacia e Inocuidad de los Productos, incluidos los Productos Farmacéuticos y los 
Dispositivos Médicos. La modificación introdujo un sistema según el c ual los titulares de WT/TPR/M/438/Add.1  
 
- 131 - 
 
  autorizaciones de comercialización utilizan métodos electrónicos, como los códigos de barras para 
proporcionar información sobre los productos farmacéuticos y los dispositivos médicos.  
 
Pregunta  
• Habiendo transcurrido dos años desde su adopción ¿se ha tenido un impacto positivo con la 
modificación de la Orden relativa a la Ley de Garantía de Calidad, Eficacia e Inocuidad de los 
productos?  
 
Response  
The following benefits can be realized.  
・Reduce waste of paper resources.  
・Provide information promptly at the time of revision of the package insert.  
 
Página 68, párrafo 3.102  
3.102 En el Japón hay dos tipos de normas: la Norma Industrial Japonesa (JIS) y la Norma Agrícola 
Japonesa (JAS). El proceso de elaboración y redacción de normas no cambió durante el período 
objeto de examen.  
 
Pregunta  
• Respecto  a la Norma Industrial Japonesa (JIS) y la Norma Agrícola Japonesa (JAS) ¿podría 
facilitar el enlace de la base de datos para acceder a estas?  
 
Response:  
Database links related to JIS standards are listed below.  
【Japanese 】 
Industrial Standardization Act ：  
https://elaws.e -gov.go.jp/document?lawid=324AC0000000185  
JIS Standards:  
https://www.jisc.go.jp/app/jis/general/GnrJISSearch.html  
【English※】 
Industrial Standardization Act ： 
https://www.japaneselawtranslation.go.jp/ja/laws/view/3592  
JIS Standard List: https://webdesk.jsa.or.jp/books/W11M0220 (provided by Japanese Standards 
Association (JSA))  
※ The transla tions contained in the Japanese Law Translation Database System and JIS Standard 
List are not official texts, and not all of the translations are finalized versions. Only the original 
Japanese texts of the laws and regulations have legal effect, and the tr anslations are to be used 
solely as reference materials to aid in the understanding of Japanese laws and regulations.  
 
Database links related to JAS agricultural standards are listed below.  
【Japanese 】 
Act on Japanese Agricultural Standards  
https://elaws.e -gov.go.jp/document?lawid=325AC0000000175  
Enforcement Order of the Act on Japanese Agricultural Standards  
https://elaws.e -gov.go.jp/document?lawid=326CO0000000291  
Regulation for Enforcement of the Act on Japanese Agricultural Standards  
https://elaws.e -gov.go.jp/document?lawid=504M60000240003  
JAS agricultural standards ：https://www.maff.go.jp/j/jas/jas_kikaku/kikaku_itiran2.html  
【English ※】 
Act on Japanese Agricultural Standards  
https://www.japaneselawtranslation.go.jp/ja/laws/view/3378  
Enforcement Order of the Act on Japanese Agricultural Standards  
https://www.japaneselawtr anslation.go.jp/ja/laws/view/3964  
Regulation for Enforcement of the Act on Japanese Agricultural Standards  
https://www.japaneselawtranslation.go.jp/ja/laws/view/3963  
JAS agricultural standards  
https://www.maff.go.jp/e/policies/standard/jas/list.html  
※ It is not the official text, nor is it  the last revised version. Only the Japanese text itself has legal 
force and effect, and the translation should be used only as a reference material to assist in 
understanding the regulations.  
 WT/TPR/M/438/Add.1  
 
- 132 - 
 
Página 70, párrafo 3.109  
3.109. Los fabricantes extranjeros de productos eléctricos y productos de consumo pueden 
someterse a la evaluación de la conformidad y la certificación por organismos de evaluación de la 
conformidad acreditados en el extranjero, con arreglo a las leyes per tinentes. Según las autoridades, 
en virtud de la Ley de Seguridad de los Productos de Consumo, la Ley de Seguridad de los Aparatos 
y Materiales Eléctricos, la Ley de Seguridad y Optimización del Manejo del Gas Licuado de Petróleo 
y la Ley de Compañías del Gas, un organismo extranjero de evaluación de la conformidad debe 
solicitar el registro ante las autoridades públicas japonesas para estar inscrito como organismo de 
evaluación de la conformidad extranjero con arreglo a la ley. Una vez recibida la solicitu d, el Gobierno 
registrará al organismo como organismo de evaluación de la conformidad extranjero tras confirmar 
que este cumple todas las disposiciones de la Ley, incluida la conformidad con las normas 
internacionales para los organismos de certificación d e productos.  
 
Pregunta  
• ¿Ante cuál autoridad pública japonesa debe solicitar un organismo extranjero de evaluación de 
la conformidad el registro para estar inscrito como organismo de evaluación de la conformidad 
extranjero? ¿Podría facilitar el enlace de l a normativa japonesa que regule el procedimiento de 
evaluación de la conformidad?  
 
Response  
A foreign conformity assessment body that will apply for registration under four product safety acts 
must register to the Ministry of Economy, Trade and Industry, J apan.  
The provisions regarding the registered conformity assessment bodies under four product safety 
acts are stipulated the following Acts and Ministerial Orders.  
・Electrical Appliances and Materials Safety Act : Article 29 -42-4 
・Consumer Product Safety Act: Article 16 -31 
・Gas Business Act: Article 150 -152, Article155 -156 
・Ministerial Order on Technical Requirements for Liquefied Petroleum Gas Appliances, etc.: Article 
26-30, Article 32 -35 
・Act on the Securing of Safety and the Optimization of Tran saction of Liquefied Petroleum Gas: 
Article 51 -54, Article 63 -64 
・Ministerial Order on Technical Requirements for Liquefied Petroleum Gas  
Appliances, etc.: Article 26 -30, Article 32 -35 
 
English version of these Acts are available on the following pages.  
Only the original Japanese texts of the laws and regulations have legal effect, and the translations 
are to be used solely as reference materials.  
 
・Electrical Appliances and Materials Safety Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/2745  
・Consumer Product Safety Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/2804  
・Gas Business Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/3331  
・Ministeral Order on Technical Requirements for Liquefied Petroleum Gas Appliances, etc.  
https://www.meti.go.jp/policy/consumer/seian/gasji/contents/eng_TG_technical_requirements.pdf  
・Act on the Securing of Safety and the Optimization of Transaction of Liquefied Petroleum Gas  
No Engilish version  
・Ministerial Order on Technical Requirements f or Liquefied Petroleum Gas  
Appliances, etc.  
https://www.meti.go.jp/policy/consumer/seian/ekiseki/contents/eng_LPG_technical_requirements.
pdf 
 
Página 70, párrafo 3.110  
3.110. Las prescripciones en materia de etiquetado figuran en diversas leyes, entre ellas la Ley de 
Seguridad de los Productos de Consumo; la Ley de Abonos; la Ley de Etiquetado de Productos 
Alimenticios; la Ley de Seguridad de los  Aparatos y Materiales Eléctricos; la Ley de Etiquetado de la 
Calidad de Artículos de Uso Doméstico; la Ley de Seguridad e Higiene en el Trabajo y la Ley de 
Asociaciones de Empresas de Bebidas Alcohólicas y Medidas para la Recaudación del Impuesto sobre 
las Bebidas Alcohólicas.  
 WT/TPR/M/438/Add.1  
 
- 133 - 
 
  Pregunta  
• Respecto  a las leyes que se mencionan en el párrafo 3.110 ¿podría compartir el enlace para 
acceder a estas leyes?  
 
Response  
The links to the laws are as below.  
Consumer Product Safety Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/2804  
Fertilizer Control Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/3940  
*The law linked above is not the latest version. The latest version of the law (only in Japanese) is 
as follows:  
Act on the  Quality Control of Fertilizer  
https://elaws.e -gov.go.jp/document?lawid=325AC0000000127_20220617_504AC0000000068  
Food Labeling Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/3649  
Electrical Appliance and Material Safety Act  
https://www.japaneselawtransl ation.go.jp/en/laws/view/2745  
Household Goods Quality Labeling Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/3935  
Industrial Safety and Health Act  
https://www.japaneselawtranslation.go.jp/en/laws/view/3440  
Act concerning Liquor Business Association and Measures for Securing Revenue form Liquor Tax" (in 
Japanese)  
https://elaws.e -gov.go.jp/document?lawid=328AC0000000007_20220901_501AC0000000071  
 
Página 73, cuadro 3.11  
 
Cuadro 3.11 Principales leyes sanitarias y fitosanitarias, 2022  
Legislación  Autoridad  Objetivos  
Ley Básica de Inocuidad 
de los Alimentos  Oficina del Consejo de 
Ministros (Comisión de 
Inocuidad de los 
Alimentos), MIC, MHLW, 
MAFF, Ministerio de Medio 
Ambiente, CAA  La finalidad de la Ley es fomentar de 
forma general políticas encaminadas a 
garantizar la inocuidad de los alimentos 
estableciendo principios de política 
básicos; aclarando las 
responsabilidades del Gobierno 
nacional, los gobiernos locales y las 
empresas d el sector alimentario, así 
como las funciones que pueden 
desempeñar los consumidores; y 
fijando directrices básicas para la 
formulación de políticas.  
Ley de Higiene 
Alimentaria  MHLW  La Ley tiene por finalidad prevenir los 
riesgos sanitarios asociados a  los 
alimentos y las bebidas mediante el 
establecimiento de medidas 
encaminadas a garantizar la inocuidad 
de los alimentos. La Ley se aplica tanto 
a los productos alimenticios como a las 
bebidas.  
Ley de Protección 
Fitosanitaria  MAFF  La ley establece el marco jurídico para 
la reglamentación de la protección 
fitosanitaria, incluida la cuarentena 
para las plantas nacionales, de 
importación y de exportación.  
Ley de Prevención de las 
Enfermedades Infecciosas 
de los Animales 
Domésticos  MAFF  La finalidad de la Ley es proteger y 
fomentar el sector ganadero 
previniendo los brotes y la propagación 
de las enfermedades infecciosas de los 
animales domésticos.  WT/TPR/M/438/Add.1  
 
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Ley de Control de 
Productos Químicos 
Agrícolas  MAFF  La Ley se modificó en 2018 (Ley Nº 53 
de 2018) con objeto de promover el 
uso seguro de los plaguicidas y la 
eficiencia de la agricultura.  
 
Pregunta  
• Respecto  a las leyes que se mencionan en el Cuadro 3.11 ¿podría compartir el enlace para 
acceder a estas leyes?  
 
Response  
Food Safety Basic Act is found here.  
https://www.japaneselawtranslation.go.jp/ja/laws/view/3757/je  
Food Sanitation Act is found here.  
https:// www.japaneselawtranslation.go.jp/ja/laws/view/3687  
Plant Protection Act is found here.  
https://www.japaneselawtranslation.go.jp/ja/laws/view/3916  
Act on Domestic Animals Infectious Diseases Control is found here.  
https://www.japaneselawtranslation.go.jp/ja/laws/view/4114  
Agricultural Chemicals Regulation Act is found here.  
https://www.japaneselawtranslation.go.jp/ja/laws/view/3507  
 
Página 73, párrafo 3.126  
3.126. Con miras a promover el uso seguro de los plaguicidas, en 2018 el Japón modificó la Ley de 
Control de Productos Químicos Agrícolas. La Ley modificada introdujo, entre otras cosas, un sistema 
de reevaluación de los plaguicidas. El MAFF inició el proc edimiento de reevaluación del primer grupo 
de productos químicos para la agricultura en octubre de 2021. La Ley modificada instauró también 
una evaluación del riesgo que presentan los plaguicidas para sus usuarios y para las abejas 
melíferas; la modificaci ón entró en vigor en abril de 2020.  
 
Pregunta  
• ¿Se ha tenido  un impacto positivo con las modificaciones de la Ley de Control de Productos 
Químicos Agrícolas?  
 
Response  
The revision of the Agricultural Chemicals Regulation Act contributes to the further enhancement of 
the safety of agricultural chemicals, by introducing a re -evaluation system and an assessment of the 
risk posed by agricultural chemicals to their users and to honey bees.  
 
Página 82, párrafo 3.152  
3.152. Además de los compromisos de acceso a los mercados contraídos en el marco del ACP, el 
Japón mantiene diversas "medidas voluntarias", que son el resultado de negociaciones bilaterales 
celebradas con los Estados Unidos en el pasado y permiten a los pr oveedores extranjeros acceder a 
los mercados de contratación pública del Japón. Esas medidas se aplican a nivel multilateral.  
 
Pregunta  
• En relación  con las medidas voluntarias que a los proveedores extranjeros acceder a los 
mercados de contratación pública  del Japón, ¿podría indicar cómo aplican estas? ¿Se definen 
sectores o contrataciones específicas que permiten participar a proveedores extranjeros?  
 
Response  
In order to contribute to suppliers' convenience, to ensure market entry opportunities for compet itive 
domestic and foreign suppliers, and to enhance transparency, fairness and competition in 
procurement procedures, the Government of Japan has decided to take necessary steps in keeping 
with the operational guidelines for procurement of products covere d under the revised Agreement 
and other international agreements and for procurement carried out in accordance with the 
agreements. As for the datails, please refer to the link below. 
https://japan.kantei.go.jp/101_kishida/documents/2022/_00030.html  
 
Página 92, párrafo 3.176  
3.176. El Japón trata de lograr niveles más altos de protección de la propiedad intelectual entre sus 
interlocutores comerciales mediante una serie de acuerdos regionales y bilaterales, como el CEPA 
entre el Japón y el Reino Unido y la RCEP. También está n egociando un acuerdo de libre comercio WT/TPR/M/438/Add.1  
 
- 135 - 
 
  entre el Japón, China y la República de Corea, así como un acuerdo de asociación económica con 
Türkiye, en los que se abordará la cuestión de la propiedad intelectual. Asimismo, el Japón promueve 
la armonización de la  propiedad intelectual y las medidas encaminadas a facilitar la creación y 
protección de derechos por medio de memorandos de entendimiento, diálogos de alto nivel, 
asociaciones y consultas en distintos niveles.  
Pregunta  
• ¿Podría indicar  algunas disposiciones concretas, mediante las cuales Japón ha concretado 
mayores medidas de protección de la propiedad intelectual con sus interlocutores comerciales? 
¿Cuáles son las áreas en las que Japón estima crítico lograr una mayor protección?  
 
Resp onse  
The following are examples of IP protection measures stipulated with Japan's trading partners.  
(1) Patents (Grace Period)  
Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) introduces a 12 -
month grace period applicable to br oad scope of disclosure, while the TRIPS Agreement makes no 
provision for the grace period itself.  
CPTPP Article 18.38 （Grace Period ）  
Each Party shall disregard at least information contained in public disclosures used to determine if 
an invention is novel or has an inventive step, if the public disclosure:  
(a) was made by the patent applicant or by a person that obtained the information directly or 
indirectly from the patent applicant; and  
(b) occurred within 12 months prior to the date of the filing of the application in the territory of the 
Party.  
 
(2) Trademarks (Bad Faith Trademarks)  
In general, "bad faith trademark filings" refer to an act in which a trademark is filed for unfair 
purposes, taking advantage of the fact that another person's tradema rk is not registered in the 
country/region concerned, for example:  
(a) to make the owner of the trademark buy the trademark rights for a high price;  
(b) to prevent the owner of the trademark from entering of the market of the country/region in 
which the ap plication is filed; and  
(c) to force the owner of the trademark to enter into a distributor agreement.  
 
Regional Comprehensive Economic Partnership Agreement (RCEP) stipulates for Bad Faith 
Trademarks as follows:  
 
RCEP Article 11.27 (Bad Faith Trademarks)  * 
Each Party shall provide that its competent authority has the authority to refuse an application or 
cancel a registration where the application to register the trademark was made in bad faith in 
accordance with its laws and regulations.  
* For the purpos es of this Article, the competent authority of a Party may take into consideration 
whether the trademark is identical or similar to a well -known trademark of another person.  
 
(3) Copyright (Term of Protection for Copyright and Related Rights)  
The term of copyright protection is extended to 70 years from the date of commencement, while the 
TRIPS Agreement provides for 50 years.  
 
CPTPP Article 18.63 （Term of Protection for Copyright and Related Rights ） 
Each Party shall provide that in cases in which the term of protection of a work, performance or 
phonogram is to be calculated:  
(a) on the basis of the life of a natural person, the term shall be not less than the life of the author 
and 70 years after the author's death; and  
(b) on a basis other than the life of  a natural person, the term shall be:  
(i) not less than 70 years from the end of the calendar year of the first authorised publication of 
the work, performance or phonogram; or  
(ii) failing such authorised publication within 25 years from the creation of the work, performance 
or phonogram, not less than 70 years from the end of the calendar year of the creation of the 
work, performance or phonogram.  
 
(4) Enforcement (Border Measures)  
CPTPP introduces some norms beyond those of the TRIPS Agreement.  
 WT/TPR/M/438/Add.1  
 
- 136 - 
 
CPTPP A rticle 18.76 (Special Requirements related to Border Measures)  
5. Each Party shall provide that its competent authorities may initiate border measures ex officio 
with respect to goods under customs control that are:  
  (a) imported;  
  (b) destined for expo rt; or  
  (c) in transit*,  
and that are suspected of being counterfeit trademark goods or pirated copyright goods.  
*As an alternative to this subparagraph, a Party shall instead endeavour to provide, if appropriate 
and with a view to eliminating internatio nal trade in counterfeit trademark goods or pirated copyright 
good, available information to another Party in respect of goods that it has examined without a local 
consignee and that are transhipped through its territory and destined for the territory of t he other 
Party, to inform that other Party's efforts to identify suspect goods upon arrival in its territory.  
 
(5) Geographical Indications （GI） 
For example, the Japan -EU EPA stipulates that each party shall protect the other party's GIs for 
agricultural pr oducts and alcoholic beverages listed in the Annex. It is also stipulated that each party 
shall take appropriate measures for the protection of GIs in accordance with its laws and regulations.  
 
SUB-SECTION 3 Geographical indications  
ARTICLE 14.22 Scope  
1. This Sub -Section applies to the recognition and protection of geographical indications for wines, 
spirits and other alcoholic beverages as well as agricultural products which originate in the Parties.  
 
3. Geographical indications of a Party listed in Annex 14 -B shall be protected by the other Party 
under this Agreement if they fall within the types of goods that the other Party protects in accordance 
with its laws and regulations as listed in Annex 14 -A. 
 
Article 14.28 Enforcement of protection  
Each party shall authorize its competent authorities to take appropriate measures ex officio or on 
request of an interested party in accordance with its laws and regulations to protect geographical 
indications listed in Annex 14 -B. 
 
 (6) New Varieties of Plants  
CPTPP and RCEP stipulate for the protection of new varieties of plant.  
 
CPTPP Article 18.7: International Agreements  
2. Each Party shall ratify or accede to each of the following agreements, if it is not already a party 
to that agreement, by the date of entry into force of this Agreement for that Party:  
(d) UPOV 1991;  
 
RCEP Article 11.48: Protection of New Varieties of Plants  
Each Party shall provide for the protection of new varieties of plants through an effective sui generis 
plant variety protection system.  
 
The key areas for achieving IP protection can vary from one trading partner to another. Overall, 
Japan is pursuing TRIPS -plus. 
 
Página 93, párrafo 3.180  
3.180. Las empresas u otras e ntidades cuya propiedad intelectual se infrinja en el extranjero pueden 
solicitar asistencia a la Oficina General de Medidas contra la Falsificación y la Piratería de la JPO, las 
oficinas de la JETRO en el extranjero y/o los funcionarios del MOFA encargado s de la propiedad 
intelectual. En caso necesario, se llevan a cabo investigaciones y consultas con interlocutores 
extranjeros.  
 
Pregunta  
• ¿Colabora JETRO  con gobiernos extranjeros o autoridades judiciales en casos de violación de 
los DPI?  
 
Response  
In cases of requests for assistance from Japanese companies or other entities whose property is 
infringed upon abroad, JETRO may consult with foreign governments and judicial authorities.  WT/TPR/M/438/Add.1  
 
- 137 - 
 
  In such cases, JETRO will cooperate with foreign governments and jud icial authorities, if it is able to 
do so, in order to respond to the requests.  
 
Página 104, párrafo 3.216  
3.216.  El Japón no recurre al bloqueo de sitios web como instrumento de lucha contra la piratería 
en el mismo grado que otras jurisdicciones desarrol ladas, debido en gran medida a las dudas acerca 
de la compatibilidad con el artículo 21.2 de la Constitución y el artículo 4 de la Ley de 
Telecomunicaciones, que se refieren a la privacidad y la censura. En 2018, el Gobierno pidió a los 
proveedores de serv icios de Internet que bloquearan voluntariamente con carácter de urgencia tres 
sitios web en los que era notorio que se pirateaban mangas, al tiempo que se convocó a un grupo 
de expertos para analizar la posibilidad de establecer legislación que permita bl oquear sitios web. 
Hasta la fecha no se ha presentado a la Dieta ninguna disposición legislativa de ese tipo.  
 
Pregunta  
• ¿Cómo se coordina el bloqueo de sitios con los proveedores de servicios de internet? ¿Es 
necesaria una orden administrativa o judicial?  
 
Response  
・Since Japan has not introduced site blocking, it is not possible to answer the question.  
・Blocking may infringe on the "secrecy of communications," but even if it does, it is considered that 
illegality could be denied if the requirements of emergency evacuation (Article 37 of the Penal Code) 
are met in light of circumstances such as the amount of infringing content and the impossibility of 
protecting rights by other means, such as deletion and arrest. The  Government asked Internet 
service providers to voluntarily block three notorious manga pirate websites as an emergency 
measure while a panel w as convened to review potential site blocking legislation.  
・Legislation on site blocking may be considered upon assessment of the damage caused by piracy 
and effects of other measures.  
 
Página 130, párrafo 4.98  
4.98. Según las autoridades, el Japón tiene una actitud generalmente proactiva con respecto a la 
reglamentación y supervisión de las criptomonedas y los activos digitales. En agosto de 2022, había 
31 proveedores de servicios de intercambio de criptoactivos bajo la supervisión del FSA. El Japón 
fue el primer país en reglamentar los intercambios de monedas virtuales en 2017, cuando el FSA 
introdujo un sistema de registro. La Asociación de Bolsas de Moneda Virtual del Japón (JVCEA), que 
tiene la condición de organismo autorregulado certificado por el FS A, se estableció en abril de 2018.  
 
Preguntas  
• ¿Podría Japón indicar si utilizaron algún estándar internacional para la creación de esta 
normativa?  
• ¿Podría Japón brindar más información sobre esta reglamentación y cuáles son los principales 
elementos?  
 
Response  
Japan has amended its laws three times to regulate crypto -asset activities and markets, with the 
third amendment last year developing a regulatory framework for stable coins, all drawing on 
international standards from the FSB and stan dard-setting bodies, as appropriate.  
Japan is also an active participant in international discussions at the FSB and standard -setting 
bodies. For example, Japan has contributed to discussions on the following reports:  
 "Regulation, Supervision and Oversig ht of Crypto -Asset Activities and Markets - Consultative 
report" (FSB, October 2022)  
 "Review of the FSB High -level Recommendations of the Regulation, Supervision and Oversight of 
"Global Stablecoins" Arrangements - Consultative report" (FSB, October 2022 ). 
 "Prudential treatment of crypto -asset exposures" (BCBS, December 2022)  
 "Application of the Principles for Financial Market Infrastructures to stable coin arrangements" 
(CPMI -IOSCO, July 2022)  
 "Updated Guidance for a risk -based approach to Virtual Assets and Virtual Asset Service Providers" 
(FATF, October 2021)  
 
Página 133,  párrafo 4.113.  
4.113. La Ley de Protección de la Información Personal se modificó en junio de 2020 y entró en vigor 
en abril de 2022. La Ley modificada establece, entre otras cosas, las obligaciones que corresponden 
a los operadores que manejan informació n personal y que transfieren datos personales a un tercero WT/TPR/M/438/Add.1  
 
- 138 - 
 
fuera del Japón. En virtud de la Ley, los operadores deben obtener la autorización de los propietarios 
de los datos para transferir esos datos al extranjero. Están obligados a facilitar información  sobre el 
país donde se transfieren los datos, el sistema de protección de la información personal en el país 
de destino e información detallada sobre las medidas de protección que aplican los operadores que 
reciben los datos. Asimismo, los operadores está n obligados a asegurar que los operadores 
receptores manejen los datos transferidos de conformidad con la reglamentación pertinente. A fin 
de hacer cumplir estas obligaciones, la Comisión de Protección de la Información Personal (PIPC) 
está facultada para emitir órdenes dirigidas a las empresas extranjeras y nacionales, e imponer 
sanciones penales por el incumplimiento de esas órdenes. Dado que es difícil aplicar esta 
reglamentación fuera del Japón, la PIPC está autorizada para colaborar con los organismos de 
reglamentación extranjeros a los efectos de que se aplique la Ley de Protección de los Datos 
Personales. La Ley refuerza las obligaciones de información y notificación que incumben a los 
operadores en los casos de vulneración de los datos. La PIPC ha pu blicado unas directrices para la 
aplicación de la Ley.  
 
Pregunta  
• ¿Podría Japón detallar cómo ha sido posible la colaboración de la PIPC con los organismos de 
reglamentación extranjeros para lograr la aplicación de la Ley de Protección de los Datos 
Personal es? 
 
Response  
With the increase in cross -border activities of business operators etc. and increase in cross -border 
transfer of data, including personal information, the number of cases that cannot be dealt with by 
one country alone is expected to further increase. There fore, in order to handle individual 
enforcement cases, the Personal Information Protection Commission promotes cooperation with 
relevant countries and organizations, and aims to strengthen cooperative relationships with them to 
receive cooperation whenever  necessary. Also, the Personal Information Protection Commission may 
provide information to foreign supervisory authorities based on the provisions of Article 167 of the 
Act when cooperation with them is necessary.  
 
B. Informe del Gobierno  
 
Página 6, párrafo  2.10 
 
2.10. El Gobierno del Japón también trabaja para mejorar la promoción de las entradas de IED en 
consonancia con el "Programa de Políticas Principal para Promover la Inversión Extranjera Directa 
en el Japón", adoptado en abril de 2022 en el Grupo de Trabajo para la Elaboración de la Estrategia 
a Medio y Largo Plazo de Promoción de la Inversión Extranjera Directa en el Japón. El Programa da 
prioridad a las iniciativas estratégicas basadas en la "Estrategia de Promoción de la Inversión 
Extranjera Direct a en el Japón" y se fundamenta en tres pilares: i) el fortalecimiento de la "inversión 
en capital humano" mediante la entrada de IED; ii) la promoción de la transformación digital, la 
transformación verde y las empresas emergentes mediante la entrada de IE D; y iii) la mejora de las 
condiciones de vida de los extranjeros para promover la IED en el Japón.  
 
Pregunta  
• ¿Podría Japón informar si, al igual que para la promoción de las entradas de IED, existen pilares 
definidos para la IED saliente (outward investment)?  
 
Response  
The Government of Japan published the "Action plan for improvement of investment environment 
through promoting the conclusion of investment -related agreements" in May 2016, and the "Action 
plan for improvement of investment environme nt through promoting the conclusion of investment -
related agreements (Review of results and future policies)" in March 2021. Based on these 
documents, the Japanese government is actively working on the conclusion of investment -related 
agreements to ensure appropriate protection of Japanese investors overseas, to improve the 
investment environment across domestic and foreign markets, and to promote overseas expansion 
of Japanese companies and direct investment in Japan. As of January 2023, Japan has signed 5 5 
investment -related agreements and they cover 80 countries and regions.  
 
  WT/TPR/M/438/Add.1  
 
- 139 - 
 
  16  SAUDI ARABIA , KINGDOM OF  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
3.3.2.1 Legal and institutional framework  
Page 60 (Para3.94/3.95)  
In many sectors, the Japanese authorities have the exclusive power for formulating and adopting 
technical regulation. Several ministries oversee these regulations in their respective areas of 
competence. The METI and its subordinate entities include the Japanese Industrial Sta ndards 
Committee.  
 
Question  
1. What is the coordination mechanism between the various government agencies 
concerned with issuing technical regulations? For instance, is such coordination based 
on higher committees, or a specific entity?   
 
Response  
There is no higher -level coordinating entity for technical regulation in Japan, but there is close 
coordination among the competent ministries in each area, maintaining overall harmonization of 
mandatory regulations as needed.  
______________________________________ ______________________________________  
Page 61 (Para3.98)  
"The authorities indicate that Japan has concluded MRAs with the European Union, the Philippines, 
Thailand, the United Kingdom, and the United States. Under an MRA, the importing country will 
recogn ize the conformity assessment carried out in the exporting country, thus concerned 
products will benefit from facilitated placing of goods on the market."  
 
Question  
2. Could Japan please elaborate on the concerned products which benefited from MRAs?  
 
Respons e 
With respect to the MRA with the EU, the major concerned products benefiting from the MRA are 
as follows;  
(i) Chemicals; EU authorities will accept (a) the confirmation result of Japanese laboratories 
conducted by the Japanese monitoring authorities in accordance with the Principle of Good 
Laboratory Practice (GLP), and also accept (b) non -clinical test data required for export to the EU 
that is prepared by Japanese laboratories confirmed as "compliant with the Principle of GLP" (no 
need to re -test in th e EU).  
(ii) Medicinal products; The EU competent authorities will exempt the importers from the testing 
of each batch, accepting the batch certificate issued by the manufacturing facilities which have 
been confirmed by the Japanese competent authority.  
____________________________________________________________________________  
Page 63 (Para 3.110.)  
"Different laws organize labelling requirements in Japan, including the Consumer Product Safety 
Law; the Fertilizer Regulation Act; the Food Labelling Act; the Electrical Appliances …"  
 
Questions  
3. Does Japan mandate the homeland language as part of lablling requirments on 
consumers products? If so, kindly provide us with such laws and procedures currently in 
force.  
 
Response  
1 Consumer Product Safety Law (MET I) 
Products regulated in Consumer Product Safety Act need to be labelled in Japanese.  
Manufacturers and importers regulated in each Act have an obligation for labelling.  
English version of these Acts are available on the following page.  
Only the original J apanese texts of the laws and regulations have legal effect, and the translations 
are to be used solely as reference materials.  
https://www.japaneselawtranslation.go.jp/en/laws/view /2804  
 
2 Fertilizer Control Act (MAFF)  
 The use of Japanese language is mandated as a labelling requirement.  
https://www.japaneselawtranslation.go.jp/ja/laws/view/3940  WT/TPR/M/438/Add.1  
 
- 140 - 
 
※The law linked above is not the latest version. The latest version of the law (Only in Japanese) 
is as follows:  
https://elaws.e -gov.go.jp/document?lawid=325AC0000000127_20220617_504AC0000000068  
 
3 Food Labelling Act (CAA)  
The Food Labelling Standards (Ordinance of the Cabinet Office No.10 of 2015) based on the Food 
Labelling Act mandates that food la belling shall be declared in Japanese.  
 
4 Electrical Appliances and Material Safety Act (METI)  
 Products regulated in Electrical Appliances and Materials Safety Act need to be labelled in 
Japanese.  
Manufacturers and importers regulated in each Act have an obligation for labeling.  
English version of these Acts are available on the following page.  
Only the original Japanese texts of the laws and regulations have legal effect, and the translations 
are to be used solely as reference materials.  
https://www.japaneselawtranslation.go.jp/en/laws/view/2745  
 
5 Household Goods Quality Labelling Act (CAA)  
 The Household Goods Quality Labelling Act aims to make the general Japanese consumer identi fy 
the quality at the time of purchase. Therefore, it requires that even imported products must have 
labelling in Japanese. The Consumer Affairs Agency website provides the information on this 
matter. (Only in Japanese)  
https://www.caa.go.jp/policies/policy/representation/household_goods/faq/faq_01.html  
 
6 Industrial Safety and Health Act (MHLW)  
The Industrial Safety and Health Act Article 57 defines as "pro vided, however, that this does not 
apply to containers or packages that are intended primarily for use by general consumers:" 
Therefore, as the question refers "as part of labelling requirements on consumers products", this 
Industrial Safety and Health Act  does not apply to consumer products.  
https://www.japaneselawtranslation.go.jp/en/laws/view/3440  
 
7 Act on Securing of Liquor Tax and on Liquor Business Associations (NTA)  
The use of Japanese language is not mandated as a labelling requirement on alcoholic beverages 
for consumers.  
____________________________________________________________________________  
Page 63 (Para 3.3.2.4)  
 
Conformity assessment and inspection  
 
Question  
4. Regarding the Conformity assessment and inspection mentioned in 3.3.2.4, does 
SASO's conformity certificates, such as (Saudi Quality Mark and (COC) certificate of 
conformity) acceptable for exporting and trading inside Japan?  
 
Response  
SASO's conf ormity certificates cannot be acceptable for exporting and others because they do not 
ensure the conformity with Electrical Appliances and Materials Safety Act, Consumer Product 
Safety Act, Gas Business Act and Act on the Securing of Safety and the Optimiz ation of 
Transaction of Liquefied Petroleum Gas.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
PART III: OTHER QUESTIONS  
Questions  
5. Are there any certificates that are equivalent to the Saudi Quality Mark certificate in 
Japan?  
 
Response  
There are no certificates that are equivalent to the Saudi Quality Mark certificate in Japan.  WT/TPR/M/438/Add.1  
 
- 141 - 
 
  17  BRAZIL  
Questions based on the Secretariat Report (WT/TPR/S/438)  
 
Page 28, Paragraph 2.14. Since January 2020, Japan has been involved in two new dispute 
settlement cas es as a complainant, against the Republic of Korea (DS594: Korea – Measures 
Affecting Trade in Commercial Vessels (second complaint) ) and against China (DS601: China – Anti-
Dumping Measures on Stainless Steel Products from Japan ). It has been involved in o ne case as 
respondent over this period (DS590: Japan – Measures Related to the Exportation of Products and 
Technology to Korea ), and in eight cases as a third party.  
 
Question 1  
Taking into consideration the ongoing crisis of the WTO Dispute Settlement Mechanism (DSM) and 
the fact that Japan has been involved in two new disputes since January 2020, does Japan consider 
favoring any alternative means to regular dispute settlement in  order to prevent "appeals into the 
void", such as joining the Multiparty Interim Appeal Arbitration Arrangement (MPIA)? If not, please 
indicate why.  
 
Response  
It is of great importance for Japan, which believes in the value of the rules -based multilateral  trade 
system, to ensure a means for a definitive legal resolution of economic disputes. Japan therefore 
has been actively working together with other Members for DS reforms, including the early recovery 
of the functions of the Appellate Body. At the same time, however, Japan is of the view that, during 
the absence of the AB, we also need to consider the possibility of utilizing alternative means, such 
as arbitration pursuant to Article 25 of the DSU, in order to protect our legitimate interests. Joining 
the MPIA is under serious consideration as one of those alternative means.  
 
Page 65, Paragraph 3.118  
 
Question 2  
What is the scientific basis for the Japanese sanitary authorities' decision on whether an area is free 
from the foot -and mouth disease? What is the difference between Japanese sanitary authorities' 
criteria and those adopted by the World Organization for Animal Health (WOAH)?  
 
Response  
In response to a request from the competent authority of a foreign country to lift a ban on beef or 
pork import, Japan conducts a risk assessment on entry of the FMD into Japan based on scientific 
data. The risk assessment is conducted in accordance with the "Standard Procedure for Approval for 
Import of Designated Items into Japan to be Quarantined" and "Standard Operating Procedures for 
Approval for Import of Designated Items into Japan to be quarantined", which are consis tent with 
SPS agreement and the OIE codes.  
The standard procedure and the standard operating procedures are published in English and 
available at: https://www.maff.go. jp/j/syouan/douei/eisei/sop/pdf/080401sop_eng.pdf  
https://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/2010sop_en.pdf  
Also, Japan always gives due consideration to the OIE of ficial disease status recognition when 
conducting a risk assessment in accordance with the designated procedures. Japan utilizes 
application document (dossier) submitted to OIE for official recognition whenever it is available.  
The above -mentioned procedur es apply to all commercial partners, without exception.  
 
Some countries with foot -and-mouth disease (FMD) status by WOAH as FMD -free with vaccination 
are able to export beef to Japan. Nonetheless, Brazil – which is recognized as FMD -free as a whole, 
and FM D-free without vaccination in certain regions – has long waited for the Japanese clearance 
for its beef and pork exports allegedly for the evaluation of sanitary risks related to the zoning for 
FMD with and without vaccination. What scientific criteria jus tify the dissimilar treatment observed 
among commercial partners?  
 
Response  
In response to a request from the competent authority of a foreign country to lift a ban on beef or 
pork import, Japan conducts a risk assessment on entry of the FMD into Japan bas ed on scientific 
data. The risk assessment is conducted in accordance with the "Standard Procedure for Approval for 
Import of Designated Items into Japan to be Quarantined" and "Standard Operating Procedures for WT/TPR/M/438/Add.1  
 
- 142 - 
 
Approval for Import of Designated Items into  Japan to be quarantined", which are consistent with 
SPS agreement and the OIE codes.  
The standard procedure and the standard operating procedures are published in English and 
available at: https://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/080401sop_eng.pdf  
https://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/2010sop_en.pdf  
Also, Japan a lways gives due consideration to the OIE official disease status recognition when 
conducting a risk assessment in accordance with the designated procedures. Japan utilizes 
application document (dossier) submitted to OIE for official recognition whenever it  is available.  
The above -mentioned procedures apply to all commercial partners, without exception.  
 
Could Japan present the scientific evidence that justifies its decision to adopt the age requirement 
of a maximum of 36 months for animals used as raw mater ial for meat products? Why do some 
countries manage to extend that limit?  
 
Response  
The SPS Agreement requires that SPS measures taken by WTO members are based on scientific 
principles. As for BSE regulations, MHLW commissions risk assessment to Food Safet y Commission 
of Japan (FSCJ) considering the WOAH (former OIE) evaluation. For relaxing further age restrictions 
based on the international standards regarding beef from countries where BSE occurred, MHLW has 
already lifted the age restrictions for the U.S ., Canada and Ireland in May 2019, for France in August 
2020, and for Denmark in August 2021 based on results of risk assessments on lifting age restrictions 
by FSCJ.  
Regarding Brazil, consultations were held taking into account the risk assessment result of the FSCJ, 
and import of beef to Japan resumed in December 2015, based on the export conditions agreed 
between the two countries.  
For relaxing further age restrictions of beef from Brazil, MHLW is now requesting Brazil for 
information including updated d ata, which is necessary for risk assessment by the FSCJ. MHLW 
would like to ask Brazil for the continued cooperation, in order to move forward the procedure. When 
the required data is provided by Brazil, MHLW is planning to submit the collected data to the  FSCJ 
for risk assessment. After the result of the risk assessment is notified from the FSCJ to the MHLW, 
MHLW will consider revising the import conditions of beef through bilateral consultation, based on 
the results.  
 
Page 65, Paragraph 3.122  
 
Question 3  
What is the average period of time needed by Japanese sanitary authorities to process the technical 
information requested for the recognition of a disease -free area?  
 
Response  
The length of time required for the government of Japan to examine a disease -free area depends on 
the completeness of the submitted information. Therefore, the length of time significantly differs on 
a case -by-case basis.  
 
Which measures are being undertaken by the Japanese Government to ensure a timely conclusion  
of the phytosanitary risk assessment for the import of fresh fruits from Brazil?  
 
Response  
When Japan receives from a country new plant health SPS market access requests on a plant, import 
of which is banned by the Plant Protection Act, Japan conducts con sultations on quarantine measures 
with the country according to the steps described in " Standard Evaluation Procedure for the Request 
for Lifting a ban on plant import under Plant Quarantine ".  
Please find a link to the Standard on the web site of Ministr y of Agriculture, Forestry and Fisheries 
in Japan for your reference. 
https://www.maff.go.jp/j/syouan/syokubo/keneki/k_yunyu/attach/pdf/index -56.pdf  
The period r equired in each step of the Standard varies depending on the time required for technical 
discussions with requesting country.  
 WT/TPR/M/438/Add.1  
 
- 143 - 
 
  Page 106, Paragraph 4.41  
 
Question 4  
Through the "Gate Price" system, the Japanese Government imposes a minimum price upon pork 
imports, creating market distortions between competitive and non -competitive international 
suppliers. Is Japan considering any changes to this system?  
 
Response  
The current tariff system on pork, the so -called "Gate Price" mechanism, is based on the Uruguay  
Round negotiations and is consistent with the WTO Agreements.  
Japan does not have a plan to change this system under the current circumstances.  
 
Page 69, Paragraph 3.130  
Question 5  
The Secretariat's Report in paragraph 3.130 mentions that a provision has been included in Japan's 
Antimonopoly Act to estimate the basis of calculation of administrative fines when the sales volume 
is unavailable. Could Japan give more details about this methodology of calculation?  
 
Response  
The sum of surcharges is calculated on the basis of sales or purchase amounts of goods or services 
in question during the period of violation (10 years from the investigation date at a maximum); the 
sum of surcharge equals such sales or purchase amounts multiplied by calculation rates as 
determined according to operation scales.  
In the case of unreasonable restraint of trade or control type private monopolization, the amounts 
of sales or purchase of the business related to goods or services subject to violation such as 
subcontract (closely co nnected trade) are added to the basis; additionally, the financial gains as a 
reward for not supplying the goods or services subject to violation are added to the sum.  
If it is not possible to calculate the sales or purchase amount, the amounts of sales o r purchase of 
the business related to goods or services subject to violation or the financial gains above (hereinafter 
referred to as "sales amounts, etc.") for a certain part of the period of violation (hereinafter referred 
to as "the Part") because the e nterprise concerned has not responded to the request from the JFTC 
or the staff who engage in the administrative affairs pertaining to investigations into the case 
connected with the violation to submit reports or materials regarding facts connected with t he 
violation that should form the basis for the calculation of the surcharge for the violation, the JFTC 
may order the enterprise to pay the surcharge, by estimating the sales amount, etc. for the Part, 
using a "reasonable method", in light of materials ob tained from the enterprise etc., or other 
materials. (Article 7 -2(3), 7 -9(3)(4), 8 -3, 20-7) 
The "reasonable method" above means to first divide the sales amounts, etc. for the period when 
the fact that serves as the basis of calculation of the surcharge is ascertained by the number of days 
of the period, and then multiply the obtained amounts by the number of days contained in the Part. 
(Article 23 -6 (1)-(4) of the Rules on Investigations by the Fair Trade Commission)  
 
Page 70, Paragraph 3.133  
 
Question 6  
The same Report in paragraph 3.133 states that "The JFTC has the exclusive authority to impose 
administrative orders (including cease  and desist orders and surcharge payment orders) and to 
approve commitment plans proposed by enterprises under i nvestigation." Do courts review JFTC's 
decisions? If so, what is the rate of reversal of their decisions?  
 
Response  
The enterprise subject to the disposition may bring an action for revocation against an administrative 
disposition (cease and desist order,  surcharge payment order) made by the Fair Trade Commission.  
Since 2015, when the revised Antimonopoly Law came into effect, 18 lawsuits have been filed and 
one case has been lost (seven cases pending).  
 
Page 71, Paragraph 3.136  
Question 7  
Paragraph 3.136 covers the issue of international cooperation. Does JFTC share confidential 
information with its counterparts without the need of signing a confidentiality waiver? Do competition 
laws in Japan have "information gateway" provisions?  
 WT/TPR/M/438/Add.1  
 
- 144 - 
 
Respons e 
The JFTC has information  gateway  provisions,  which  enable  the JFTC to share  confidential  
information with its counterparts under certain circumstances without the requirement to seek prior 
consent from the source of the information.  
 
Questions based on J apan's Report (WT/TPR/G/438)  
 
Paragraph 3.6. Observing the compliance with WTO rules through dispute settlement is one of the 
most important and critical roles played by the WTO to maintain an open and fair multilateral trading 
system. Japan has actively e ngaged in the WTO dispute settlement mechanism to settle disputes as 
both a party and a third party to a dispute. Japan continues to make best efforts to achieve an 
expeditious reform that will contribute to a long -lasting solution to the structural and fu nctional 
problems of the dispute settlement system, including matters concerning the Appellate Body.  
 
Question 8  
In Japan's view, what are the "structural and functional problems" of the DSM, in particular of the 
Appellate Body?  
 
Response  
The recovery of dispute settlement functions is needed as early as possible given the dysfunction of 
the Appellate Body. The current situation has been brought by the fact that roles played by the DSM, 
especially the Appellate Body, did not necessarily satisfy  all the Members. Thus, the issues to be 
addressed may include ones related with the structure and function of the Appellate Body. Japan 
considers that the issues that need to be addressed in order for the Appellate Body to be satisfactory 
for all the Memb ers should be identified and that discussions on possible solutions need to be held 
among the Members. Japan continues to actively participate in such discussions.  
 
Question 9  
How does Japan envisage a "long -lasting solution" for the DSM that can be achiev ed by 2024, as 
mandated by the Ministers in the MC12?  
 
Response  
In Japan's view, for a "long -lasting solution" for the DSM, it is necessary that the Appellate Body 
resume functioning in a manner with which all the Members are satisfied with possible "struc tural 
and functional problems" mentioned in the previous question solved. Japan continues to work 
together with other Members in order to have a fully and well -functioning DS system pursuant to 
the mandate adopted at the MC 12.  
 
  WT/TPR/M/438/Add.1  
 
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  18  TÜRKIYE  
THE SECRETARIAT R EPORT  
 
1. Economic Environment, 1.1 Main Features of the Economy, pg. 14, 1.2  
It is stated in the Secretariat Report that "Since 2013, Japan's policies have been guided by a three -
pillar strategy, with a view to revitalizing a sluggish economy. This strategy uses a bold monetary 
policy based on quantitative and qualitative easing, a flexible fiscal policy, and structural reforms. 
The combined effects of fiscal and monetary policy expansion and structural reform were intended 
to strengthen business inv estment and private consumption, with a view to overcoming the 
prolonged deflation and revitalizing the Japanese economy. However, real GDP growth rates 
remained moderate in most years; in 2021, the growth rate stood at 1.7% (Table 1.2). Japan has 
the high est ratio of public debt to GDP among developed countries, at some 263% of GDP."  
 
Question1:  Given that Japan has the highest public debt -to-GDP ratio of any developed country, at 
around 263% of GDP, what is its strategy for ensuring the sustainability of economic growth in the 
event of a global pandemic or a recession like the one just left behind?   
 
Response  
It is essential to have a fiscal foundation that can adequately withstand contingencies, even in times 
of peace. Therefore, it is necessary to work on reconciling economic revitalization and fiscal 
consolidation to keep the credibility of fiscal management in the future.  
The basic concept of economic and fiscal management is that "the economy is the foundation of 
public finance". The government will faithfully rebuild the economy, and also work to put public 
finances on a sound footing.  
To put the Japanese economy on a sustainable growth path led by private demand by ｌabor market 
reforms such as reskilling, establishment of Japanese -style job -based p ay, and smooth movement 
to growth areas, and by bolding investment through strong public -private partnerships in strategic 
industries that will support the next generation economy.  
In addition, it is important to reduce public debt over the medium to long  term in order to restore 
fiscal soundness, so the government make it the rule to achieve the primary surplus of the central 
and local governments by FY 2025 and reduce the public debt to GDP ratio steadily.  
While continuing to respond flexibly to the curr ent economic situation, we will strive to ensure 
responsible economic and fiscal management so that we do not lose confidence in the medium - to 
long-term sustainability of our public finances in the markets and the international community.  
 
1. Economic Env ironment, 1.2 Recent Economic Developments, pg. 15, 1.4  
It is stated in the Secretariat Report that "Growth rates during the review period were marked by 
the direct impact of the COVID -19 pandemic, subsequent supply -chain disruptions, and the resulting 
global economic slowdown, culminating in a negative growth rate of nearly 5% in 2020. In 2019 and 
2020, most GDP components except for government consumption featured negative growth rates. 
At nearly 12%, the drop of exports of goods and services in 2020 was particularly marked, but 
private consumption and investment also experienced a strong decline over the previous year, at 
around 5%. The fall in GDP affected all sectors of the economy; it was stronger in transportation 
and hospitality -related activities."  
 
Question2:  Given the factors listed for the economic slowdown, is it possible to provide detailed 
information on the impact of subsequent supply -chain disruptions?  
 
Response  
Immediately after the 2020 pandemic, as in other countries, Japan experienced shortages in t he 
supply of masks, medical supplies, electronic components, etc. Subsequently, the global shortage 
of semiconductors began to subdue productions in Japan after the second half of 2020.  
 
1. Economic Environment, 1.2 Recent Economic Developments, 1.2.3 Mone tary policy, 
prices, and the exchange rate, pg. 17, 1.11  
It is stated in the Secretariat Report that "During the review period, the Bank of Japan continued its 
policy of quantitative and qualitative monetary easing with yield curve control to achieve the p rice 
stability target of 2% in terms of the year -on-year rate of change in the consumer price index. Under 
its yield curve control, the Bank has been targeting a short -term interest rate of -0.1% and a long -
term interest rate of around 0%.8 Inflation press ures remained contained during most of the review 
period, and well below the Bank of Japan's 2% target. Measured by the CPI, inflation rates did not WT/TPR/M/438/Add.1  
 
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exceed 1% during the period under review and were negative in 2021. However, since then inflation 
rates pic ked up, following rising international energy prices and the depreciation of the yen, to 
achieve 2.6% in July 2022."  
 
Question3:  Can Japan provide more detailed information on inflation targeting for the upcoming 
period and the instruments it will use for this?  
 
Response  
The year -on-year rate of increase in the consumer price index (CPI, all items less fresh food) is likely 
to be r elatively high in the short run due to the effects of a pass -through to consumer prices of cost 
increases led by a rise in import prices. The rate of increase is then expected to decelerate toward 
the middle of fiscal 2023 due to a waning of these effects,  as well as to the effects of pushing down 
energy prices from the government's economic measures. Thereafter, it is projected to accelerate 
again moderately on the back of improvement in the output gap, rises in medium - to long -term 
inflation expectations and in wage growth, and a waning of the effects of the economic measures 
pushing down energy prices toward the middle of fiscal 2023.  
 
Table: Forecasts of the Majority of the Bank of Japan's Policy Board  
Members as of January 2023  
y/y % chg.  
CPI (all item s less fresh food)  
Fiscal 2022 +3.0  
Fiscal 2023 +1.6  
Fiscal 2024 +1.8  
Note: Figures indicate the medians of the members' forecasts.  
 
As for the conduct of monetary policy, the Bank of Japan will continue with Quantitative and 
Qualitative Monetary Easing (Q QE) with Yield Curve Control, aiming to achieve the price stability 
target of 2 %, as long as it is necessary for maintaining that target in a stable manner. It will continue 
expanding the monetary base until the year -on-year rate of increase in the observe d CPI (all items 
less fresh food) exceeds 2 percent and stays above the target in a stable manner. For the time 
being, while closely monitoring the impact of COVID -19, the Bank will support financing, mainly of 
firms, and maintain stability in financial ma rkets, and will not hesitate to take additional easing 
measures if necessary; it also expects short - and long -term policy interest rates to remain at their 
present or lower levels.  
For more detail, please refer to the latest version of the BOJ's repot "Out look for Economic Activity 
and Prices" in the link below.  
https://www.boj.or.jp/en/mopo/outlook/gor2301b.pdf  
 
1. Economic Environment, 1.2 Recent Economic Developments, 1.2.4 Structural ref orms 
and privatization, pg. 17, 1.15  
It is stated in the Secretariat Report that "With a view to addressing its demographic challenges, 
Japan has undertaken various reforms to increase labour supply, productivity, and wages over the 
recent years. These lab our market reforms have successfully raised employment, more than 
offsetting ageing's impact on the size of the labour force. A pension system reform undertaken in 
2021 expanded the coverage of the system by including more part -time workers. Other structur al 
reforms aim at increasing Japan's productivity, notably by accelerating digitalization, expanding 
investment, and increasing R&D expenditure. It has been noted, however, that productivity growth 
in the business sector remains sluggish, particularly in b usiness services and smaller firms."  
 
Question4:  Can Japan provide detailed information on the determination of pension system 
contributions and retirement wages in the pension system of part -time workers? And the further 
steps to widen productivity growth among small firms?  
 
Response  
Japan has a univer sal pension system, and all residents including part -time workers in Japan are 
required to participate in the Public Pension System.  
Part-time workers who work three -quarters or more of regular workers, etc. are required to enroll 
in the Employees' Pension  Insurance. Even if they work less than three -quarters of regular workers, 
they will be enrolled in the Employees' Pension Insurance if their wages are 88,000 yen or more, 
they work 20 hours or more per week ,and their company hires 101 or more employees, etc. In this WT/TPR/M/438/Add.1  
 
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  case, their contribution is remuneration (month) x 18.3% (9.15%, split between employee and 
employer).  
Otherwise, they are required to pay for the National Pension (Basic Pension) contribution. And their 
contribution is a fixed amount of \16,590 per month (in FY2022). Those who participate in the 
Employees' Pension Insurance also pay National Pension Insurance contributions, which includes in 
the contribution of EPI. In the National Pension, ｔhere is an contribution  exemption system for 
those whose income is below a certain level.  
However, if the annual income is less than 1.3 million, the dependent spouses of the employee do 
not pay for their own contribution and receive benefit even when they are part -time workers.  
 
In addition, the pension b enefit for the part -time worker is calculated separately for the Basic Pension 
and Employees' Pension Insurance.  
The amount of Basic Pension per year is :JPY777,800 (FY2022) x (contributions paid period (Basic 
Pension, Employees' Pension Insurance, Month) + parts of the contribution exemption period (Basic 
Pension, Month))/480.  
The amount of the Employees' Pension per year is: Average standard remuneration* x 5.481/1000 
x insured period (month) .  
*Average standard remuneration is the average amount of remun eration (including bonuses) 
received during the period the person was insured under the Employees' Pension Insurance . 
 
With regard to productivity improvement of small and medium -sized enterprises (SMEs), the second 
supplementary budget for FY2022 includes  200 billion yen in subsidies for productivity improvement, 
including "manufacturing subsidies," and 580 billion yen in "business restructuring subsidies," to 
continue supporting positive investment by SMEs.  
 
1. Economic Environment, 1.3 Developments in Tr ade and Investment, 1.3.2 Trends and 
patterns in FDI, pg. 22, 1.25  
It is stated in the Secretariat Report that "Japan remains one of the major global sources of foreign 
investment. The stock of Japanese investment abroad grew considerably between 2017 and 2021, 
when it grew to close to USD 2 trillion (Tables 1.6 and 1.7). The United States accounts, by far, for 
the largest share of Japan's outward FDI classified by destinations, representing about one third of 
Japan's FDI outward stock. The United States is followed by the United Kingdom, China, and the 
Netherlands. The share of Latin America and Africa in Japan's o utward investment remains very 
limited."  
 
Question5:  Does the Japanese government have a guiding policy in the geographic preferences of 
private sector investors? If it is planned to increase investments in Africa in the future, has a specific 
sector been selected?  
 
Response  
The Japanese government does not have any specific guiding policy for geographic or sectoral 
selection of private investors. On the other hand, the government conducts consideration on the 
possibility of initiating negotiations of inves tment agreements with countries that have potential as 
future investment destinations, with a focus on Latin America and Africa.  
 
2. Trade and Investment Regimes, 2.1 General Framework, pg. 25, 2.3  
It is stated in the Secretariat Report that "Japan's polic y objectives place great emphasis on national 
and economic security issues. The new Act for the Promotion of Ensuring National Security through 
Integrated Implementation of Economic Measures (Economic Security Promotion Act), adopted in 
May 2022, provides for a framework for ensuring a stable supply of "key products" and "essential 
infrastructure services", enhancing development of "advanced critical technologies" (Article 2.2), 
and preventing disclosure or divulgence of inventions that might be detrimental  to national security 
through patent procedures. As at October 2022, implementing regulations were under preparation."  
 
Question6: Can Japan elaborate on the policy instruments it has put in place to ensure the stable 
supply of "key products" and "essentia l infrastructure services" ? 
 
Response  
The Chapter for Ensuring Stable Supply of Specified Critical Products (Economic Security Promotion 
Act Chapter 2) provides a framework to support efforts by private businesses to ensure stable supply 
of specified critical products.  WT/TPR/M/438/Add.1  
 
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In order to ensure that  the measures taken by the government to secure stable supply of specified 
key products are appropriate and uniform, the government shall formulate Guiding Principles on 
Ensuring Stable Supply of Specified Key Products (hereinafter referred to as the "Guid ing Principles 
on Ensuring Stable Supply") (Economic Security Promotion Act Article 6). The Guiding Principles on 
Ensuring Stable Supply shall include matters such as: the basic direction for ensuring stable supply 
of specified key products; matters concer ning measures to be implemented by the government for 
ensuring stable supply of specified key products; matters concerning the designation of specified 
key products "Specified critical products", which are defined as critical products vital for the surviva l 
of the people or on which their daily lives or the economic activities depend, and of which stable 
supply is particularly necessary to prevent a situation in which the security of the nation and its 
citizens is undermined due to outside actions when the critical products or their materials, etc. are 
excessively reliant or are likely to be reliant on outside sources.  
If a critical product is designated as a "specified critical product" by Cabinet Order, the competent 
minister will formulate policies on in itiatives to ensure stable supply of specified critical products or 
their raw materials, etc. (Economic Security Promotion Act Article 8).  
Business entities may elaborate plans related to initiatives (such as reinforcement of production 
base, diversificat ion of supply sources, stockpiling, development of production technology and 
development of alternative products) for ensuring stable supply of specified critical products or their 
raw materials, etc. and apply those plans to the competent minister for its  approval. Approved 
companies may receive support such as support through subsidies, special exception to the Japan 
finance corporation act (two -step loans).  
As for a framework for ensuring a stable supply of "essential infrastructure services", the compet ent 
minister with jurisdiction over "specified essential infrastructure business" may pre -screen 
installation of key facilities or outsourcing of maintenance/management, etc. for key facilities to be 
performed by the specified essential infrastructure prov iders. When finding a significant risk that the 
key facilities, etc. may be misused as a means of disruption, the competent minister for essential 
infrastructure business may recommend or order the specified essential infrastructure providers to 
take the n ecessary measures or cancel the installation, etc. Applicable sectors are: Electricity, Gas, 
Oil, Water works, Railway, Truck transport, International maritime cargo, Aviation, Airports, 
Telecommunications, Broadcasting, Postal services, Financial services  and Credit cards.  
 
2. Trade and Investment Regimes, 2.1 General Framework, pg. 25, 2.4  
It is stated in the Secretariat Report that "In October 2020, Japan announced its plans to achieve 
net zero greenhouse gas emissions by 2050. Moreover, in April 2021, i t announced the goal of 
reducing emissions by 2030 to 46% from its 2013 levels. To this end, a long -term strategy under 
the Paris Agreement was elaborated in 2019 and revised in 2021 to promote green innovations and 
finance, and an Environment Innovation S trategy in 2020, with action plans for each technology 
area. Also in 2020, a new Green Growth Strategy was published."  
 
Question7:  Can Japan, where the manufacturing industry has an important place in its trade and 
economic growth, provide more information  about the revenues to finance the transformation 
needed in production enterprises in order to reduce greenhouse gas emissions? What income -
generating measures will be taken for this?  
 
Response  
In its Green Growth Strategy toward carbon neutrality by 2050,  the Japanese government has 
proposed changes in industrial policy that will bring about a transformation in the industrial structure 
and create a virtuous cycle between the economy and the environment. For example, the Japanese 
government has announced a policy of issuing "GX Economic Measures Bonds" totaling 20 trillion 
yen over 10 years starting in FY2023 to encourage change in various sectors, including 
manufacturing and R&D. The Ministry of the Environment has published a decarbonization 
management gui debook to reduce GHG emissions and has also taken measures to reduce the cost 
burden on companies by providing subsidy support for decarbonization investments at factories and 
offices.  
 
2. Trade and Investment Regimes, 2.3 Trade Agreements and Arrangements  2.3.2 
Regional trade agreements, pg. 31, 2.16  
It is stated in the Secretariat Report that "Expanding trade and growth through economic 
partnerships remains central to Japan's overall economic strategy. In particular, Japan considers 
tapping into the Asia -Pacific region's growth and large markets by creating a global web of economic 
partnerships is essential to the country's economic growth. However, no specific goals relating to WT/TPR/M/438/Add.1  
 
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  the conclusion of regional trade agreements were set during the period under r eview; this was last 
done in the 2018 White Paper."  
 
Question9:  Can Japan provide information about the countries she aims to sign regional or bilateral 
trade agreements with in the next 5 years, within the framework of its trade policies?  
 
Response  
It is difficult to provide specific names of those countries. Countries with which Economic Partnership 
Agreements or Free Trade Agreement are under negotiation are listed in the following website.  
https://www.mofa.go.jp/policy/economy/fta/index.h tml 
 
2. Trade and Investment Regimes, 2.3 Trade Agreements and Arrangements, 2.3.3 
Unilateral preferences, pg. 32, 2.20  
It is stated in the Secretariat Report that "Under the GSP scheme, preferential tariff rates apply to 
424 tariff lines at the nine -digit level in Chapters 1 to 24 (agriculture and fisheries) (excluding in -
quota rates), and to 3,291 tariff lines in Chapters 25 to 97 (industrial products). The main exclusions 
are rice and rice products, meat and meat products, fish, dairy products, pineapple s, cereal products, 
textiles and clothing, leather and leather products, and footwear. Preferential margins vary from one 
product to another. LDCs qualify for more extensive product coverage (98% of tariff lines) and duty -
free and quota -free treatment. Pro duct coverage under the general GSP and LDC schemes can be 
reviewed annually as part of the annual tariff revision."  
 
Question10 : Can Japan provide information on the background of its policy regarding the exclusion 
of products such as textiles/clothing, l eather/leather products and footwear, which do not have 
intense domestic production and will not put the local manufacturer under competitive pressure, 
from the scope of the GSP regime?  
 
Response  
Certain textiles and apparel products, as well as leather, leather products, and footwear, have been 
excluded from the GSP Scheme as a result of careful consideration of the needs of relevant domestic 
manufacturers.  
 
3. Trade Policies And Practices By Meas ure, 3.2 Measures Directly Affecting Exports, 3.2.4 
Export support and promotion, 3.2.4.4 Export promotion, pg. 56, 3.79  
It is stated in the Secretariat Report that "During the review period, JETRO continued to work on 
digitalization, such as building new online negotiation systems and utilizing e -commerce, and 
provided new services, such as online business meetings and overseas showrooms displaying 
samples of Japanese food products, in response to the COVID -19 pandemic."   
 
Question11:  Can Japan give more d etailed information about the online negotiation system? Does 
JETRO, the developer and executive of this system, act as a guarantor for the transactions agreed 
here?  
 
Response  
JETRO launched "e -Venue", which is an international business matching website, i n FY2021. It has 
several functions; an open matching site, a platform that has the information of our customers' 
products and overseas buyers who have registered for JETRO's services and a closed matching 
system.  
https://e -venue.jetro.go.jp/bizportal/s/?la nguage=en_US  
 
In addition, JETRO has independently developed "Japan Street", which is an invitation -only online 
catalogue site for selected buyers who have been nominated by our overseas offices. It has been 
working fully since FY2021 and offering negotiat ion matching year -round.  
 
JETRO only offers a venue for negotiations, online and offline, between Japanese and foreign 
companies. Therefore, JETRO does not guarantee transactions.  
 
4. Trade Policies By Sector, 4.2. Mining and Energy, p. 109.  
On page 9 of T he Government Report, it is stated in the Secretariat Report that "The main policy 
development during the review period included the adoption, in October 2021, of the sixth Strategic 
Energy Plan (SEP), replacing the 2018 SEP.30 The main objectives of the 2 021 SEP include to show 
the path of energy policy towards the realization of "2050 Carbon Neutral" announced in October WT/TPR/M/438/Add.1  
 
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2020 and the new greenhouse gas emission reduction targets announced in April 2021 (to cut 
greenhouse gas emissions by 50%). It also aim s to secure a stable supply and reduce energy costs 
on the premise of ensuring safety in order to overcome the challenges faced by Japan's energy 
supply and demand structure while promoting climate change countermeasures, confirming the basic 
principles of  Japan's energy policy (energy security, economic efficiency, environment sustainability, 
and safety (3E+S))."   
 
Question 12:  Could Japan provide information about whether or not it has any plan to establish its 
own Emission Trading System (ETS) and Carbon  Border Adjustment Mechanism (CBAM)?  
 
Response  
Regarding ETS, we will begin trial operations from FY2023 and plan for full -scale operation from FY 
2026.  
We are paying close attention to recent developments around carbon border adjustment mechanism 
in some economies.  
Whenever implementing carbon border adjustment mechanism, one should consider that it is not 
causing any market disruption as non -tariff barriers and that low -carbon and decarbonized products 
are evaluated appropriately.  
 
THE GOVERNMENT REPORT  
 
1. Trade And Economic Environment, 1.1 Japan's economic environment, pg. 3, 1.1  
It is stated in the Secretariat Report that "Among the structural challenges, the Japanese economy 
has long been facing a prolonged low birth rate and an aging population. In o rder to sustain and 
enhance domestic market demands, the virtuous cycle from income to spending, coupled with 
increasing wages to generate private consumption, is becoming a key factor. As a means to create 
such virtuous cycle, it is important to improve p roductivity of limited human resources through 
innovation and human -capital investment."   
 
Question1:  Is there any research conducted by Japan to forecast the demand shift to luxury goods 
and disruption of the recent market structure after increasing wages? While designing this policy, 
was the rapid increase in imports in the long run considered? If this type of research has been carried 
out, can Japan kindly provide details about it?  
 
Response  
As far as our knowledge, research/survey on such theme has not been conducted.  
 
3.1. WTO, 3.4, p. 6  
On page 6 of The Government Report, it is stated that " Japan has  contributed to making new rules 
and practices through plurilateral Joint Statement Initiatives (JSIs) on E -commerce, Services 
Domestic Regulation, Investment Facilitation for Development, and MSMEs. As for negotiations 
related to e -commerce, concerned min isters from Japan, Australia, and Singapore, co -conveners of 
the WTO Joint Initiative on E -commerce, issued a joint statement that highlights the way to progress 
toward the conclusion of the negotiation. In the post -COVID -19 era, the realization of Data Fr ee 
Flow with Trust (DFFT) is crucial for harnessing the increasingly important digital sector, and at the 
WTO, e -commerce negotiations are one of the most important themes and it is crucial to accumulate 
results in order to further advance negotiations. As  a co-convener for e -commerce negotiations, 
Japan continues to open the door to wider participation of Member countries and accelerate 
negotiations with the goal of creating high -level rules that include the free flow of data. With these 
efforts, Japan has  high expectations for the improvement and enhancement of the business climate 
and trade environment worldwide."  
 
Question 2:  Could Japan kindly elaborate on Joint Statement Initiatives (JSIs) on E -commerce, 
Services Domestic Regulation, Investment Facilit ation for Development, and MSMEs in terms of the 
realization of Data Free Flow with Trust (DFFT)?  
 
Response  
JSI on E -commerce includes provisions on enabling the flow of data and enhancing the trust of e -
commerce, and contributes to promoting DFFT.  
 
  WT/TPR/M/438/Add.1  
 
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  19  NORW AY 
Maritime transport  
 
With reference to the report by the Secretariat (section 4.4.3.1, p.121 -122):  
 
We note the information in para 4.120 on the tonnage tax scheme that has remained unchanged 
and is proposed to be extended until the end of 2027.  We woul d appreciate information on the use 
of the scheme in terms of numbers of vessels, including the number of vessels under foreign flag.  
 
Response  
As of March 31, 2022, 263 Japanese -flag vessels and 36 foreign -flag vessels* are using the regime 
of tonnage tax.  
*foreign -flag vessel that can be promptly changed to Japanese -flag vessel in case that voyage order 
is given by the government.  
 
Tonnage tax schemes has been put in place in most major shipping nations including in Norway as 
part of efforts to maintain international maritime competitiveness.  Recruitment of crew is another 
major element in this context, we would therefore also appreciate information on any measures 
Japan has put in place to stimulate recruitment of Japanese seafarers.  
 
Response  
The regime of tonnage tax requires four(4) Japanese seafarers per one(1) Japanese -flagged vessel 
in order to secure Japanese seafarers who operate Japanese -flagged vessels.  
 
With reference to para 4.122 and the unchanged competition regime and th e antitrust immunity 
provided by the Marine Transport Act, we would like to learn if there are any plans to conduct a new 
review, in particular in light of the experiences of the recent market disruptions.  
 
Response  
There is no concrete plan for the next r eview at present. However, as for shipping conferences, when 
Japan considers there is no adverse effect upon the provision of stable international shipping services 
to Japan after examining the effectiveness of each shipping conference in place, Japan will  review 
the current exemption for shipping conferences in the direction of abolition.  
As for shipping agreements other than shipping conferences, Japan will review them, if necessary, 
having internal consultation process with the Japan Fair Trade Commissi on, after studying the policy 
positions towards the exemptions from competition laws in other countries and the effect on the 
interests of the Japanese shippers, etc.  
 
  WT/TPR/M/438/Add.1  
 
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20  DOMINICAN REPUBLIC  
Pág. 67  
3.98. Las autoridades indican que el Japón ha concertado AR M con los Estados Unidos, Filipinas, el 
Reino Unido, Tailandia y la Unión Europea. En virtud de un ARM, el país importador reconoce la 
evaluación de la conformidad realizada en el país exportador, por lo que los productos de que se 
trate se beneficiarán de  una comercialización más fácil.  
 
Pregunta : ¿Qué tan factible pudiera ser que Japón firme un Acuerdo de Reconocimiento Mutuo 
(ARM) con la República Dominicana?  
 
Response  
A Mutual Recognition Agreement (MRA) stipulates that the other country will accept the results of 
conformity assessment (certification, testing, etc.) of a specific product conducted by the conformity 
assessment body (CAB) of the other country. Therefore, it is essential the equivalence of relevant 
requirements and their implement ation (conformity assessment process, etc.) to have been 
confirmed.  
  WT/TPR/M/438/Add.1  
 
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  21  COLOMBIA  
INFORME DE LA SECRETARÍA - DOCUMENTO WT/TPR/S/438  
 
RESUMEN  
 
Párrafo 25. "El Japón es signatario del Acuerdo sobre Contratación Pública de la OMC. Las normas 
básicas aplicables a  la contratación pública no han variado durante el período objeto de examen. El 
Japón promueve la contratación ecológica y la participación de las pymes en el mercado. A pesar de 
que el principio de no discriminación se aplica en todas las actividades de c ontratación, sigue siendo 
escasa la participación de las empresas extranjeras en el mercado de la contratación pública. En 
respuesta al brote de COVID -19, el Japón adoptó un conjunto de políticas relacionadas con la 
contratación pública para flexibilizar e ste proceso, incluida la modificación de los plazos de entrega 
y la cuantía de los contratos, el pronto pago a los contratistas y una revisión del precio de referencia 
de las licitaciones futuras"  
 
1. ¿Podría el Gobierno de Japón resumir las acciones o actividades realizadas para promover la 
contratación pública ecológica?  
 
Response  
To promote green purchasing, the Ministry of the Environment holds an annual briefing session on 
green purchasing, establishes a contact point for inquiries, and implements s upport programs to 
promote the spread of green purchasing to local governments.  
 
Párrafo 27. "El Japón registra un déficit considerable en el comercio de productos agropecuarios: en 
2021, las importaciones se cifraron en USD 74.800 millones y las exportaci ones en USD 9.200 
millones. Las principales novedades normativas durante el período objeto de examen fueron la 
revisión del Plan Básico de Alimentación, Agricultura y Zonas Rurales en 2020; la adopción de la 
Estrategia de Promoción de las Exportaciones de Productos Agrícolas, Forestales, Pesqueros y 
Alimenticios en 2020 y su revisión en 2022; y la entrada en vigor de la Ley de Facilitación de la 
Exportación de Productos Agrícolas, Forestales, Pesqueros y Alimenticios en 2020 y su revisión en 
2022. Según la OCDE, el Japón ha reducido gradualmente su ayuda a la agricultura durante los 
últimos 10 años, aunque el nivel de apoyo se ha estabilizado recientemente…"  
 
2. ¿Podría el Gobierno de Japón hacer una síntesis de las estrategias adoptadas para la 
promoción de la s exportaciones de productos agrícolas y forestales?  
 
Response  
The Strategy presents basic concepts of having Japanese food and agricultural products perform 
their full potential, assisting food and agriculture operators who try to develop export markets,  and 
overcoming obstacles to export the products by the government as a whole beyond the boundaries 
of its agencies, in order to achieve the export target of JPY 5 trillion by 2030. It also sets out 
directions of specific measures based on the concepts, su ch as to strengthen organization and 
activity of Japan Food Export Platforms, and Export Promotion Organization that engage in export 
as Japan as a whole.  
 
3. ¿Cuáles son los ejes o los lineamientos de la Ley de Facilitación de las Exportaciones de 
Productos Agrícolas de Japón de 2020 y dónde se puede tener acceso al texto de esa ley en 
inglés?  
 
Response  
The outline of the Act is that the government of Japan establishes a framework of a whole -of-
government approach for negotiations with importing countries and  regions, and certification of 
processing facilities. For the text of the Act in English, please refer to the following URL:  
https://www.japaneselawtranslation.go.jp/ja/laws/view/3583  
 
1 ENTORNO ECONÓMICO  
1.2 Evolución económica reciente  
1.2.4. Reformas estructurales y privatización  
 
Párrafo 1.14. "Desde 2013, las principales reformas han sido las siguientes: i) la estabilización del 
volumen de la mano de obra mediante el fomento de la participación de las mujeres y las personas WT/TPR/M/438/Add.1  
 
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mayores; ii) la m ayor integración del Japón en la economía mundial mediante acuerdos comerciales; 
y iii) la mejora del clima empresarial gracias a una gobernanza empresarial más eficaz, a una mayor 
flexibilidad y movilidad laborales, a la promoción de la inversión en capit al de riesgo y a la mejora 
de las políticas destinadas a las pequeñas y medianas empresas."  
 
4. Podría el Gobierno de Japón indicar ¿Cuáles fueron los ejes centrales de las reformas políticas 
destinadas a las pequeñas y medianas empresas mencionadas en este p árrafo?  
 
Response  
In order to overcome the current high prices and grow business, the Small and Medium Enterprise 
Agency will first make every effort to create an environment in which small and medium -sized 
businesses can receive adequate compensation by making every effort to implement price pass -on 
measures. In addition, by encouraging positive investment in productivity improvement, such as the 
introduction of new equipment and research and development, we will encourage the challenge of  
self-improvement to cope with changes in the business environment, including the need to respond 
to green and digitalization.  
 
2 REGÍMENES DE COMERCIO E INVERSIÓN  
2.1 Marco general  
 
Párrafo 2.4. "En octubre de 2020, el Japón anunció sus planes de consegui r unas emisiones netas 
de gases de efecto invernadero igual a cero para 2050. Además, en abril de 2021, anunció el objetivo 
de reducir las emisiones al 46% de sus niveles de 2013 para 2030. Con este fin, en 2019 se elaboró 
una estrategia a largo plazo en e l marco del Acuerdo de París, que se revisó en 2021, para promover 
innovaciones y financiación ecológicas, y una Estrategia de Innovación Ambiental en 2020, con 
planes de acción para cada esfera tecnológica. También en 2020 se publicó una nueva Estrategia de 
Crecimiento Ecológico".  
 
5. ¿Podría el Gobierno de Japón presentar un resumen del contenido de la Estrategia de 
Crecimiento Ecológico de Japón de 2020? ¿En qué link o página web se puede consultar la 
estrategia de crecimiento ecológico de Japón publicado e n 2020?  
 
Response  
The "Green Growth Strategy Through Achieving Carbon Neutrality in 2050" was formulated, which 
includes (1) clear timeframe targets, (2) research and development and demonstration, (3) 
institutional improvement with regulatory reform and s tandardization, and (4) international 
cooperation etc. for areas that are expected to grow in the pursuit of carbon neutrality. Among the 
priority areas, in areas where the policy effects are particularly large and where long -term continuous 
support is nee ded with a view to social implementation, the newly created Green Innovation Fund is 
used to provide consistent support from R&D to social implementation of innovative technologies to 
companies that demonstrate commitments to specific goals and initiatives  ways to achieve them.  
https://www.meti.go.jp/policy/energy_environment/global_warming/ggs/index.html  
https://www.meti.go.jp/english/press/2020/1225_001.html  
 
2.8. Todas las leyes y reglamentos se publican en el Boletín Oficial y también están disponibles en 
línea. En el cuadro 2.1 figuran las principales leyes y reglamentos relacionados con el comercio, y 
las modificaciones realizadas desde enero de 2020. No obstante, al parecer no se publican todas las 
decisiones del Consejo de Ministros.  
 
6. Japón actualizó la Ley de Cambio y de Comercio Exterior y la Ley de Transacciones de 
Exportación e Importación en 2019, 2020, 2021 y 2022. ¿Podría Japón compartir 
información sobre el por qué se realizaron cambios anuales en estas normas?.  
 
Response  
The Forei gn Exchange and Foreign Trade Act (FEFTA) and related regulations are not necessarily 
amended every year, but has been amended in response to changing domestic and international 
situations.  
In 2019, FEFTA was amended with a viewing to further promoting FDI  that is conducive to sound 
economic growth and ensuring proper review of FDI that could pose risks to national security.  
The Ministerial Ordinance concerning Foreign Exchange was amended in 2020 and 2021 in 
conjunction with the amendment of the Rule on im plementation of the Act on Prevention of Transfer 
of Criminal Proceeds.  WT/TPR/M/438/Add.1  
 
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  The FEFTA was amended in 2022 to ensure the effectiveness of financial sanctions against evation 
through crypto -asset transactions.  
 
2.3 Acuerdos y arreglos comerciales  
2.3.2 Acuerdos comerciales regionales  
2.19. El Japón ofrece trato arancelario preferencial a 131 economías en desarrollo con arreglo a su 
régimen SGP. De conformidad con los reglamentos del Japón, 45 economías reciben un trato especial 
como países menos adelantados (PMA) . El propio régimen SGP se revisa cada 10 años; la última 
revisión tuvo lugar en marzo de 2021, cuando se prorrogó hasta 2031. En junio de 2021, el Japón 
notificó a la OMC que había decidido prorrogar su régimen SGP hasta marzo de 2031.  
 
7. El Gobierno de Colombia desea expresar al Gobierno de Japón su agradecimiento por las 
preferencias otorgadas a través del SGP, encontrándose Colombia entre los 10 principales 
beneficiarios de este Sistema.  
 
Response  
Thank you very much for the comment.  
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1.1 Procedimientos y requisitos aduaneros y valoración en aduana  
 
3.5. El Sistema Nipón Consolidado y Automatizado de Carga y Puertos (NACCS), la ventanilla única 
electrónica del Japón, sigue sie ndo el medio para la realización en línea de los trámites de la 
Administración de Aduanas del Japón y otros organismos conexos. Si bien la presentación de las 
declaraciones de aduanas a través del NACCS no es obligatoria, en 2021, alrededor del 99,9% del 
valor de los cargamentos de importación y exportación se tramitó mediante este sistema. Los 
importadores pueden pagar los derechos de aduana fijados a través de una red de pago múltiple.8 
El NACCS conecta instituciones de cobro (autoridades gubernamentales)  con instituciones 
financieras. El Gobierno no percibe ninguna tasa por la utilización del sistema; sin embargo, las 
instituciones financieras participantes pueden cobrar tasas. El NACCS se financia con las tasas que 
cobra por su utilización a los usuarios  privados y públicos. Asimismo, presta varios servicios de 
logística en línea al sector privado.9 El recurso a agentes de aduanas no es obligatorio.  
 
8 La red de pago múltiple es un sistema que conecta organismos recaudadores de impuestos con 
instituciones financieras en línea. Con la red de pago múltiple, los contribuyentes pueden realizar el 
pago a una institución financiera determinada de manera elect rónica (por ejemplo, mediante la 
banca en línea) y notificar inmediatamente el pago a la autoridad fiscal. Los importadores pueden 
solicitar este método de pago en el NACCS. Japan Customs, Outline of the Multi Payment Network 
(FAQ). Consultado en: https://www.customs.go.jp/english/c -answer_e/imtsukan/1310_e.htm . 
 
9 El NACCS es administrado por un organismo independiente en el marco de un acuerdo de asociación 
público -privada. S e ocupa de i) realizar en línea los trámites ante la Administración de Aduanas y 
ante otras autoridades pertinentes; y ii) prestar servicios al sector privado relacionados con la 
llegada y salida de barcos y aeronaves o los cargamentos de importación y exp ortación. Desde 2010, 
ha integrado los trámites de la carga aérea y marítima con el Sistema de Intercambio Electrónico de 
Datos Portuarios y el Sistema Electrónico de Red Abierta de Control del Comercio del Japón (JETRAS) 
del METI. Los principales componen tes del NACCS son un sistema para realizar trámites 
administrativos, un sistema de base de datos para la gestión de la carga y el transporte, y un sistema 
de comunicación entre usuarios. NACCS. Consultado en: https://ww w.naccs.jp ; y CESPAP (2011), 
Towards a Single Window Trading Environment. Consultado en: 
https://www.unescap.org/sites/default/files/brief6.pdf . 
 
8. Colombia agradece a Japón brindar infor mación adicional sobre los principales atributos con 
los que cuenta el sistema NACCS los cuales motivan al 99.9% de los usuarios a usarlo aun 
cuando no es de carácter obligatorio.  
 
Response  
We believe that we have achieved a high utilization rate by enhancing the convenience of NACCS 
while taking into account the opinions of NACCS users.  
 
9. En relación con los usuarios que no hacen uso de esta plataforma ¿Qué otras alternativas 
ofrece el Gobier no de Japón para adelantar los trámites aduaneros?  WT/TPR/M/438/Add.1  
 
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Response  
We believe that we have achieved a high utilization rate by enhancing the convenience of NACCS 
while taking into account the opinions of NACCS users.  
 
10. En el informe de la secretaria se menciona el  Sistema Nipón Consolidado y Automatizado de 
Carga y Puertos (NACCS), la ventanilla única electrónica del Japón, medio para la realización 
en línea de los trámites de la Administración de Aduanas del Japón y otros organismos 
conexos. Administrado por un or ganismo independiente en el marco de un acuerdo de 
asociación público -privada. ¿Qué tipo de contrato se maneja en el acuerdo público privado? 
¿Qué tipo de operaciones o trámites son las que se realizan?, ¿Cómo es el manejo para las 
actualizaciones tecnológ icas, por soporte directo de la entidad, subcontratado etc., y con 
qué periodicidad se hacen estas actualizaciones tecnológicas?  
 
Response  
NACCS  is established by the law and is managed and administered in accordance with that law.  
Almost all customs procedures can be handled by NACCS.  
Technical upgrades are handled by NACCS center.  
Major upgrades are performed every eight years. Minor upgrades, s uch as server expansions, are 
done annually when they are needed.  
 
11. A través del sistema NACCS se efectúan actividades como, i) realizar en línea los trámites 
ante la Administración de Aduanas y ante otras autoridades pertinentes; al respecto sería 
importan te conocer ¿qué tipo de trámites aduaneros se realizan, especificados por cada 
entidad pública que interviene?, ¿los tramites en línea deben ser presentados en algún 
momento de manera física?  
 
Response  
NACCS users will be notified when NACCS or other proce dures are completed.  
Users may also check the status of their shipments through NACCS.   
 
12. Adicional se informa que ii) presta servicios al sector privado relacionados con la llegada y 
salida de barcos y aeronaves o los cargamentos de importación y exportac ión. Desde 2010, 
ha integrado los trámites de la carga aérea y marítima con el Sistema de Intercambio 
Electrónico de Datos Portuarios y el Sistema Electrónico de Red Abierta de Control del 
Comercio del Japón (JETRAS) del METI. Los principales componentes d el NACCS son un 
sistema para realizar trámites administrativos, un sistema de base de datos para la gestión 
de la carga y el transporte, y un sistema de comunicación entre usuarios. NACCS. Al respecto 
sería importante conocer ¿Que otros sistemas inter -operan entidades intervienen para la 
realización de trámites a través de NACCS?, ¿Es un sistema que inter -opera con los sistemas 
de las demás entidades o es independiente? ¿Qué lenguaje tecnológico maneja el sistema 
NACCS?, ¿Tienen algún costo las operaciones realizadas a través del NACCS, si la respuesta 
es afirmativa, sería importante conocer cómo se establecen estos valores y para que 
trámites?  
 
Response  
The following administrative procedures are available through NACCS; port procedures, crew landing 
suppor t system, trade control, animal/plant quarantine, quarantine, food quarantine, 
pharmaceutical and medical device  act, and procedures for certificate  of exportation, etc.  
The procedures of the respective ministries are unified by the NACCS system.  
The techn ological language in the NACCS system is not disclosed for security reason.  
Yes, the operations carried out through NACCS have any cost  
Since the fee for using NACCS is stipulated by law to be as low as possible, the user fee is set at an 
amount equivalent  to the expecting cost of operating the system.  
 
13. Teniendo en cuenta que la presentación de las declaraciones de aduanas a través del NACCS 
no es obligatoria, y que en el 2021, alrededor del 99,9% del valor de los cargamentos de 
importación y exportación se  tramitó mediante este sistema. Sería importante conocer datos 
de la reducción en tiempo en los proceso de importación y exportación de manera detallada 
con comparativos entre el proceso manual o por fuera del sistema y a través de NACCS.  
 WT/TPR/M/438/Add.1  
 
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  Response  
Thank you for your comment. In Japan, we are working to expedite Customs procedures such as 
import/export declarations and the procedures of related ministries and agencies by utilizing IT, and 
about 99.9% of the number of import/export declarations have been pr ocessed electronically 
through NACCS. We continue to make constant study to realize digitization of procedures that are 
currently processed manually as much as possible.  
 
14. Los importadores pueden pagar los derechos de aduana fijados a través de una red de pago 
múltiple. El NACCS conecta instituciones de cobro (autoridades gubernamentales) con 
instituciones financieras. El Gobierno no percibe ninguna tasa por la utilización d el sistema; 
sin embargo, las instituciones financieras participantes pueden cobrar tasas. El NACCS se 
financia con las tasas que cobra por su utilización a los usuarios privados y públicos. 
Asimismo, presta varios servicios de logística en línea al sector privado. El recurso a agentes 
de aduanas no es obligatorio. Interesante conocer el alcance de la ventanilla NACCS 
(aduanero, cambiario y tributario), entidades con las que hace interoperabilidad y detalle de 
todos los módulos que la componen.  
 
Response  
Importers are required to pay duties, consumption taxes and other fees when they process 
procedure electronically.  
As the importer makes the payment online from their own account, NACCS connects to these 
financial institutions and the payment will be made to the government via NACCS.  
 
3.31. El artículo 12 de la Ley Arancelaria prevé reducciones/exenciones de los derechos cuando 
hayan aumentado los precios de los artículos necesarios de uso diario (para impedir el alza del precio 
de artículos necesarios de uso diario como los alimentos y las prendas de vestir), con miras a 
mantener la estabilidad en la vida cotidiana de la población. Las mercancías actualmente objeto de 
estas reducciones/exenciones de los derechos incluyen el arroz importado, mondado o sin monda r; 
la cebada; el trigo; los productos alimenticios; las prendas de vestir; y otras mercancías que se 
consideran estrechamente relacionadas con la vida cotidiana de las personas.  
 
15. ¿Podría el Gobierno de Japón proporcionar información acerca del sitio Web en  el que se 
puede consultar la lista completa de productos objeto de reducción o exenciones de los 
derechos?  
 
Response  
Although the goods are stipulated in Article 12(1) of the Customs Tariff Act as "Imported rice, hulled 
or un -hulled, barley or wheat falls  under any of the following case"; and in paragraph 2 of the same 
Article, "foodstuffs, apparels, other goods which are closely related to the people's daily lives 
(excluding those goods specified in the preceding paragraph) and which are imported" , no it ems 
are currently designated and no decree to operate has been established. Therefore, there is no 
information that can be provided.  
 
3.3.6. Contratación Pública  
Contratación sostenible  
 
Párrafo 3.157. "El Japón mantiene una política de contratación pública que promueve la protección 
del medio ambiente. Durante el período objeto de examen, se notificaron dos revisiones de la Política 
Básica de Promoción de la Contratación Pública Ecológica (las normas de aplicación de la Ley de 
Promoción de la Contratación Pública Ecológica) al Comité de Contratación Pública de la OMC. 
Asimismo, en febrero de 2022 se revisaron las normas de aplicación relativas a la Ley de Contratos 
Ecológicos, a saber, la Política Básica de Fomento de los Contratos en que  se contemple la Reducción 
de las Emisiones de Gases de Efecto Invernadero y Demás Contaminantes por los Organismos 
Públicos y las Entidades Administrativas Autónomas. Entre los principales cambios figuran la 
incorporación de la Declaración sobre la Neutra lidad en Carbono para 2050 y el objetivo de reducción 
de las emisiones de gases de efecto invernadero para 2030 (una reducción del 46% respecto de su 
nivel de 2013), la actualización del nivel de cumplimiento de las cuestiones relacionadas con el 
cambio cl imático y el calentamiento global, y la revisión del plan de acción del Gobierno".  
 
16. ¿Qué entidades pueden expedir certificados para que una empresa pueda demostrar que un 
bien o servicio cumple con los parámetros establecidos en la contratación pública eco lógica 
en Japón?  WT/TPR/M/438/Add.1  
 
- 158 - 
 
Response  
Manufacturers and other business operators may self -declare their products if they meet the criteria 
(basic policy) set forth in Japan's Green Purchasing Law.  
When making a self -declaration, it is recommended to refer to the Guid elines for Assurance of 
Reliability and the Guidelines for Environmental Labeling formulated and published by the 
government.  
 
17. ¿Qué se considera como "información efectiva y apropiada" para contribuir a un cambio de 
demanda hacia bienes ecológicos ("to pro vide information effective and appropriate for 
contributing to a shift of demand to Eco -Friendly Goods,…), según lo establecido en el "Act 
on Promotion of Procurement of Eco -Friendly Goods and Services by the State and Other 
Entities" ( https://www.japaneselawtranslation.go.jp/en/laws/view/2719 .)? 
 
Response  
The Effective and appropriate information provision includes the publication of the basic policy of the 
Green Purchasing Law, publication of procurers' guides, operation of database web pages introducing 
environmental labels, etc., and introduction of green purchasing guides by each industry on the 
government's green purchasing web pages.  
 
3.3.7 Derechos de propie dad intelectual  
3.3.7.2. Políticas sobre promoción y comercialización de la innovación  
 
Párrafo 3.171. "Desde 2019, la JPO ha enviado "diseñadores de estrategias de propiedad intelectual" 
en el marco del DDP para colaborar con los investigadores, la indust ria y los administradores de las 
universidades a fin de descubrir resultados latentes de las investigaciones que puedan ponerse en 
aplicación y elaborar estrategias de comercialización de la propiedad intelectual para proyectos de 
investigación incipientes . En 2021, los conocimientos adquiridos durante los tres años anteriores se 
recopilaron en la publicación Manual de aplicación social de los resultados de la investigación 
universitaria. El Manual ofrece orientación sobre i) las invenciones y los descubrim ientos; ii) la 
formulación de una estrategia de solicitud de patentes; y iii) la comercialización de la propiedad 
intelectual a través de colaboraciones con la industria o de empresas emergentes universitarias.  
 
18. ¿Podría el Gobierno de Japón precisar ¿En qu é consisten las "empresas emergentes 
universitarias" mencionadas en este párrafo? ¿Todas las universidades de Japón pueden 
establecer empresas emergentes universitarias?  
 
Response  
In this Manual, "university start -ups" (university -launched startups) mean startup companies 
established based on university research results. "University start -ups" are those established by 
university researchers and external entrepreneurs, not by the uni versity itself.  
 
19. ¿Las empresas emergentes universitarias pueden funcionar como cualquier empresa 
comercial de bienes o servicios de Japón? ¿Estas empresas pueden exportar sus bienes o 
servicios a otros países si cumplen los requisitos del país importador?  
 
Response  
"University start -ups" in this Manual refer to private companies, which can operate in the same way 
as other general private companies, including exports.  
 
3.3.7.12 Derecho de autor  
 
3.216. El Japón no recurre al bloqueo de sitios web como instr umento de lucha contra la piratería 
en el mismo grado que otras jurisdicciones desarrolladas, debido en gran medida a las dudas acerca 
de la compatibilidad con el artículo 21.2 de la Constitución y el artículo 4 de la Ley de 
Telecomunicaciones, que se refi eren a la privacidad y la censura. En 2018, el Gobierno pidió a los 
proveedores de servicios de Internet que bloquearan voluntariamente con carácter de urgencia tres 
sitios web en los que era notorio que se pirateaban mangas, al tiempo que se convocó a un grupo 
de expertos para analizar la posibilidad de establecer legislación que permita bloquear sitios web. 
Hasta la fecha no se ha presentado a la Dieta ninguna disposición legislativa de ese tipo  
 
3.217. El Gobierno ha tratado de reducir la accesibilidad d e los sitios web piratas luchando contra 
los sitios de "descargas", conocidos también como sitios "de índices", que proporcionan enlaces a WT/TPR/M/438/Add.1  
 
- 159 - 
 
  los contenidos infractores, pero sin albergarlos ellos mismos. Las modificaciones introducidas en 
2020 en la Ley de D erecho de Autor tipifican como delito la explotación de sitios de índices, así como 
el suministro de programas de ordenador/aplicaciones con funciones similares. Las infracciones 
pueden castigarse con penas de hasta cinco años de prisión y/o una multa de J PY 5 millones, previa 
reclamación del titular de los derechos. También se considera infracción del derecho de autor la 
publicación de direcciones URL o enlaces a contenido pirateado en un sitio de índices o una 
aplicación, que puede castigarse con pena de prisión de hasta tres años y/o una multa de JPY 3 
millones, previa reclamación del titular de los derechos. El Gobierno ha indicado que estas 
disposiciones modificadas de la Ley de Derecho de Autor pueden utilizarse para combatir los 
dispositivos de emisió n en continuo ilícita. Los proveedores de servicios de plataformas, como 
YouTube o Google, no son responsables, salvo si hay mala fe y se hace caso omiso de manera 
injustificada de las solicitudes de eliminación de los enlaces infractores durante un períod o 
prolongado.  
 
20. ¿Podrían ampliar la información respecto a si en Japón existe dentro de su legislación una 
norma que regule expresamente la responsabilidad de los proveedores de internet y en caso 
de ser afirmativa la respuesta, agradeceríamos la posibilida d de recibir información más 
detallada de las características principales de esta reglamentación.  
 
Response  
In Japan,  the Act on the Limitation of Liability for Damages of Specified Telecommunications Service 
Providers and the Right to Demand Disclosure of Identification Information of the Sender  was 
enacted in 2001.  
 
Under the Act, the following provisions clarify situations in which a provider's liability is limited or 
not limited.  
 
Article 3(1)If the right of others is violated through distr ibution of information by specified 
telecommunications, the specified telecommunications service provider that uses specified 
telecommunications facilities used for specified telecommunications (hereinafter referred to as the 
"related service provider" in this paragraph) will not be liable for compensating damages incurred 
from the violation, unless it is technically possible to take measures for preventing the information 
from being transmitted to unspecified persons and the violation falls under any of th e following 
items; provided, however, that this does not apply if the related service provider is the sender of 
information violating the rights of others:  
(i)if the related service provider knew that the violation of the rights of others was due to distri bution 
of information by specified telecommunications;  
(ii)if the related service provider had knowledge of the distribution of information by the specified 
telecommunications, and there are adequate grounds to believe that the related service provider 
was aware of the fact that the violation of the rights of others was due to the distribution of 
information by specified telecommunications.  
(2)If a specified telecommunications service provider has taken measures to prevent the 
transmission of information by  specified telecommunications, the specified telecommunications 
service provider will not be liable for any damages incurred by the sender of the information whose 
transmission was prevented by the measures, so far as those measures have been taken to the 
extent necessary for preventing transmission of the information to unspecified persons and those 
measures fall under any of the following items:  
(i)if there were adequate grounds for the specified telecommunications service provider to believe 
that the rig hts of others were violated without due cause through the distribution of information by 
the specified telecommunications;  
(ii)if a person alleging that their rights were violated through distribution of information by specified 
telecommunications filed a petition that the specified telecommunications service provider should 
take measures to prevent the information that violates the rights of that person (hereinafter referred 
to as "violating information") from being transmitted (hereinafter referred to as "transmission 
prevention measures" in this item), by indicating the violating information, the allegedly violated 
rights, and the reason for that person to allege that their rights have been violated (hereinafter 
referred to as "violating information, etc. " in this item) and if the specified telecommunications 
service provider provided that violating information, etc. to the sender of violating information and 
inquired the sender whether the sender consents to taking the transmission prevention measures, 
and the specified telecommunications service provider has not received any notice from the sender 
that they do not consent to taking the transmission prevention measures after seven days have 
passed from the day the sender has received the inquiry.  WT/TPR/M/438/Add.1  
 
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4 POLÍTIC AS COMERCIALES, POR SECTORES  
 
4.1.2. Pesca  
4.1.2.2. Evolución de la normativa  
 
Párrafo 4.51. "Según las autoridades, el Japón está en proceso de ratificación del Acuerdo sobre 
Subvenciones a la Pesca de la OMC".  
 
21. ¿Podría el Gobierno de Japón indicar una fe cha tentativa o un plazo previsto para concluir el 
proceso de ratificación del Acuerdo sobre Subvenciones a la Pesca de la OMC?  
 
Response  
Japan is currently working hard for its domestic process for the early acceptance of the Agreement 
and once the proces s is completed, Japan will deposit its instrument of acceptance with the WTO.  
 
22.  Podría el Gobierno de Japón indicar en qué Organizaciones y/o Arreglos Regionales de 
Ordenación Pesquera (RFMOs and RFMAs) participa?  
 
Response  
Japan participates IATTC (Inter -American Tropical Tuna Commission), WCPFC (Western and Central 
Pacific Fisheries Commission), ICCAT (International Commission for the Conservation of Atlantic 
Tunas), IOTC (Indian Ocean Tuna Commission), CCSBT (Commission fo r the Conservation of 
Southern Bluefin Tuna), NPFC (North Pacific Fisheries Commission), NPAFC (North Pacific 
Anadromous Fish Commission), CCBSP (Convention on the Conservation and Management of Pollock 
Resources in the Central Bering Sea), NAFO (Northwest  Atlantic Fisheries Organization), CCAMLR 
(Commission for the Conservation of Antarctic Marine Living Resources), SIOFA (Southern Indian 
Ocean Fisheries Agreement), SEAFO (South East Atlantic Fisheries Organisation) and CAOFA 
(Agreement to Prevent Unregula ted High Seas Fisheries in the Central Arctic Ocean).  
 
4.4.2 Servicios de telecomunicaciones  
 
4.112. Con miras a avanzar en la formación de una sociedad digital, el Gobierno promulgó la Ley 
Básica de Formación de una Sociedad Digital en mayo de 2021. Esta Ley entró en vigor el 1 de 
septiembre de 2021. Con arreglo a la Ley, por sociedad digital se e ntiende "una sociedad en la que 
se posibilita el desarrollo creativo y pujante en todas las esferas mediante la obtención, el 
intercambio y la transmisión de una gran variedad de tipos de información y conocimientos a escala 
mundial de manera gratuita y se gura a través de Internet y otras redes de información y 
telecomunicaciones avanzadas" (artículo 2). La Ley abolió la Ley Básica de Formación de una 
Sociedad de Redes de Información y Telecomunicaciones Avanzadas (Ley Básica de la Tecnología de 
la Informac ión) que fue promulgada en el año 2000 y sentó las bases para las subsiguientes políticas 
en materia de tecnología de la información del Japón. En virtud de la Ley, un Organismo Digital de 
reciente creación está facultado para elaborar un programa priorita rio sobre la formación de una 
sociedad digital. En su última estrategia, publicada en junio de 2022, se señalan siete prioridades 
básicas. En relación con los servicios de telecomunicaciones, el Organismo se propone promover el 
desarrollo de infraestructur a de tecnología de la información que propicie una sociedad digital (por 
ejemplo, cables de fibra óptica, 5G y centros de datos), apoyar la investigación y el desarrollo de 
las tecnologías necesarias para una sociedad digital (por ejemplo, tecnologías de l a información, 
seguridad informática y superordenadores) y mejorar la formación de los recursos humanos 
digitales.  
23. ¿Puede Japón ampliar información sobre la estrategia actual de la Agencia Digital para 
abordar las prioridades básicas, particularmente en t emas relacionados con la mejora en la 
capacidad formativa de los recursos humanos digitales, la sostenibilidad y la cooperación 
internacional?  
 
Response  
Japan has decided "Priority Policy Program for Realizing Digital Society" based on the Basic Act on 
the Formation of a Digital Society at the Cabinet meeting on June 7, 2022. This program clarifies 
the overall picture of efforts toward the realization of a digital society, including those of not only 
Digital Agency, but also each ministry and agency. The  priority policy program sets forth the vision 
of "people -friendly digitalized society, where no one will be left behind" and will proceed with 
initiatives based on the following six basic policies.  
 WT/TPR/M/438/Add.1  
 
- 161 - 
 
  1. Growth strategy through digitalization.  
2. Digitaliza tion in semi -public sector.  
e.g., medical care, education, disaster risk management, and children.  
3. Vitalizing local areas through digitalization.  
4. Digital Society where no one will be left behind.  
5. Securing/Development of digital human resources.  
6. Global cooperation strategy including the promotion of the DFFT.  
 
INFORME DE GOBIERNO - DOCUMENTO WT/TPR/G/438  
 
2 POLÍTICA COMERCIAL Y DE INVERSIÓN  
2.2 Política de inversiones  
2.2.1 Inversión extranjera directa  
 
2.8. En marzo de 2015, a instancias del Pri mer Ministro, el Consejo de Promoción de la Inversión 
Extranjera Directa en el Japón adoptó las "Cinco Promesas para Atraer a Empresas Extranjeras al 
Japón", en las que se mencionaban importantes cuestiones que debían ser resueltas en el futuro. 
Además, a fin de convertir al Japón en un centro internacional de comercio e inversión, el Consejo 
adoptó en mayo de 2016 el Conjunto de políticas encaminadas a promover la inversión extranjera 
directa en el Japón. Las entradas de IED alcanzaron un valor de JPY 39,7  billones a finales de 2020, 
con lo que se logró el objetivo mencionado supra.  
 
2.9. En junio de 2021, para promover una mayor IED en el Japón, el Gobierno del Japón adoptó la 
"Estrategia de Promoción de la Inversión Extranjera Directa en el Japón" y fijó su nuevo objetivo de 
aumentar la cuantía de las entradas de IED a JPY 80 billones para 2030…  
24. Podría Japón compartir mayor información sobre las "Cinco Promesas para Atraer a 
Empresas Extranjeras al Japón" y los avances de la "Estrategia de Promoción de la Inversión 
Extranjera Directa en el Japón".  
 
Response  
As for the information on the "Five Pledges to Attract Foreign Companies to Japan", please refer to 
English -translated version of  the documents from the following link.  
www.invest -japan.go.jp/documents/pdf/promise_en.pdf  
 
To move "Strategy for the Promotion of Foreign Direct Investme nt in Japan" further forward, we 
plan to formulate "the New Action Plan" to grow its economy by reaching out the rest of the world 
through the free movement of people, goods, and capital across borders around this spring. As for 
the details, please refer t o English -translated version of  "Interim Report" compiled last December 
from the following link  
http://www.invest -japan.go.jp/documents/pdf/chukanseili_working_gro up_en.pdf  
 
2.2.2 Acuerdos de inversión  
 
2.11. El Japón ha promovido activamente la conclusión de acuerdos de inversión. Este tipo de 
acuerdos, al suprimir los obstáculos a la inversión y proteger a los inversores, permiten crear unas 
condiciones estables, equitativas, favorables y transparentes que hacen posible un aumento de las 
inversiones. En su "Plan de Acción para la Mejora del Entorno de Inversión mediante la Promoción 
de la Conclusión de Acuerdos relacionados con la Inversión", formulado en 2016, el Gobierno del 
Japón fijó como objetivo la firma y entrada en vigor de acuerdos relacionados con las inversiones 
(es decir, de acuerdos de inversión y acuerdos de asociación económica que incluyen capítulos sobre 
inversiones) con 100 países y regiones para 2 020. En agosto de 2022, el Japón ha concluido o 
firmado acuerdos relacionados con las inversiones con 74 países y regiones, cifra que asciende a 94 
si se tienen en cuenta los acuerdos relacionados con las inversiones que se están negociando 
actualmente y q ue abarcan alrededor del 93% de la IED total del Japón.  
 
25.  ¿Puede Japón compartir información sobre los pilares, acciones y resultados de este Plan 
de Acción?  
 
Response  
The Action Plan stipulates a policy of promoting the development of the investment environment, 
including the conclusion of investment -related agreements, while putting emphasis on expanding 
the number of investment -related agreements, ensuring that provis ions important to our country WT/TPR/M/438/Add.1  
 
- 162 - 
 
are included in the agreements. During the five -year period since 2016, which is stipulated in the 
Action Plan, the conclusion of investment -related agreements showed significant progress.  
During the five -year period, 20 new investment -related agreements (in 45 countries/regions) have 
entered into force or have been signed, and new negotiations have been initiated for 16 agreements. 
As a result, including agreements under negotiation at the time, 94 countries/regions were cove red 
in total, which accounts for about 93% of Japan's outward direct investment balance (statistics by 
region for outward direct investment balance by Ministry of Finance (2019)). In addition, Japan took 
the lead in signing and concluding plurilateral agre ements such as the CPTPP and RCEP agreements, 
and such agreements as the Japan -EU EPA and the Japan -UK CEPA, which stipulate investment 
liberalization. Most of the investment -related agreements also provided for fair and equitable 
treatment and ISDS clause s, in addition to the provisions on national treatment, most -favored -
nation treatment, transfer of funds, and temporary safeguard measures, which are important to 
Japan's business community.  
After the aforementioned five -year period, as of February 2023, the Japan -Georgia Investment 
Agreement has entered into force, and the Japan -Bahrain Investment Agreement has been signed. 
Japan and Angola have reached an agreement in principle on text of the bilateral Agreement.  
 
26. ¿Puede Japón explicar si se ha contempla do la revisión o reforma de sus AII's en línea con 
las consideraciones de la UNCTAD y la Convención Marco de las Naciones Unidas sobre el 
Cambio climático y el Acuerdo de Paris?  
 
Response  
Japan conducts constant consideration on appropriate provisions of i nvestment -related agreements, 
taking into account international trend and practices, including the elements mentioned in the 
question.  
 
3 INICIATIVAS MULTILATERALES  
 
Las mipymes y el comercio  
 
3.14. El Japón reconoce que las mipymes desempeñan un papel im portante en el comercio 
internacional. El Acuerdo alcanzado entre el Japón y Singapur en 2002 fue el primer ACR con un 
capítulo independiente sobre las mipymes, y posteriormente el Japón firmó cuatro ACR más con 
capítulos independientes sobre las mipymes: el Tratado Integral y Progresista de Asociación 
Transpacífico (CPTPP), el Acuerdo de Asociación Económica entre el Japón y la UE, el CEPA entre el 
Japón y el Reino Unido y la RCEP. Además de estos ACR con capítulos independientes sobre las 
mipymes, el Japó n ha concluido hasta la fecha 12 ACR con disposiciones relativas a las mipymes, 
de modo que alrededor del 90% de los ACR que mantiene en vigor o ha firmado contienen 
disposiciones relacionadas con las mipymes.  
 
27. El Gobierno de Colombia presenta interés en conocer algunos de los principales resultados 
de la inclusión de los capítulos independientes sobre mipymes en los ACR y si fuera posible 
conocer el impacto logrado en estas empresas a partir de la inclusión de l as disposiciones 
relativas a las mipymes en los 12 ACR mencionados.  
 
Response  
Relevant provisions for the SMEs in the EPAs/FTAs support the growth and development of small 
and medium -sized enterprises by enhancing their ability to participate in and benefi t from the 
opportunities created by the agreements. The agreements that have a stand -alone chapter for SMEs 
provide, for example, information sharing, contact points, and cooperation between parties to 
strengthen utilization of SMEs. Furthermore, the CPTPP  provides for the establishment of a 
Committee on SMEs to exchange and discuss party's experiences and best practices to support and 
assist SME exporters.  
 
6 POLÍTICAS INTERNAS DEL JAPÓN  
6.1 Actuales prioridades económicas  
 
6.2. En este contexto, el Japón estableció en junio de 2022 el Gran Proyecto y Plan de Acción para 
una Nueva Forma de Capitalismo, con miras a resolver las cuestiones sociales y lograr a la vez el 
crecimiento económico. La Nueva Forma de Capitalismo incorp ora los esfuerzos por resolver las 
cuestiones sociales en la estrategia de crecimiento como fuente de creación de valor añadido y 
establece cinco esferas de inversión específicas: i) inversión en capital humano y redistribución; ii) WT/TPR/M/438/Add.1  
 
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  inversión en ciencia, t ecnología e innovación; iii) inversión en nuevas empresas; y iv) inversión en 
la transformación verde (GX) y la transformación digital (DX). También establece cuatro iniciativas: 
a) crear valor social en cooperación con el sector privado; b) lograr una soc iedad inclusiva; c) 
promover la multipolarización y la revitalización regional; y d) garantizar la seguridad económica; 
estas se llevarán a cabo mediante una colaboración entre los sectores público y privado y reformas 
normativas e institucionales.  
 
28. La pol ítica de competencia juega un papel crucial para alcanzar los objetivos planteados en 
el plan de acción, por lo cual, agradeceríamos conocer a través de qué medios, Japón 
fomentará la competencia en dichos sectores y qué mecanismos de inspección, vigilanci a y 
control llevará a cabo para hacerlos cumplir.  
 
Response  
For achieving the objectives set out in the action plans, the Japan Fair Trade Commission (JFTC) 
implements policies as below,  
 
1) Report on the actual status of business practices of start -ups 
The JFTC conducted a fact -finding survey to grasp the actual status of business practices of start -
ups, and released a report on November 27, 2020.  
After that, the JFTC and the Ministry of Economy, Trade and Industry (METI) also jointly developed 
the "Guidel ines on Business Partnership Contracts with Start -ups and Investments in Start -ups" on 
March 31, 2022 to present ideal approaches to contracts concluded between start -ups and 
collaborating enterprises and investors. In order to promote smooth open innovati on, the JFTC 
disseminates information about the guidelines.  
 
2) Inquiry on Initial Public Offering (IPO) Pricing Process, etc.  
The JFTC published  "Inquiry on Initial Public Offering (IPO) Pricing Process, etc." on January 2022.  
This inquiry is held based o n the following understandings: setting offering prices in proportion to 
company values of startups and demands, etc., can make it easier for startups to procure the 
necessary funds for the growth of their businesses; this leads to developing an environmen t that 
promotes their growth in the markets and, consequently, to activating the whole economy of Japan, 
which is desirable from the viewpoint of competition policy.  
This report has showed views from the competition policy perspective about setting offerin g prices 
and the diversification of listing options in line with the IPO pricing process. In addition ，it has 
summarized issues under the Antimonopoly Act on acts of securities companies in this process, along 
with points to note cited for those companies w hile providing many recommendations. Currently, 
related organizations are considering measures in light of the JFTC's recommendations.  
 
3) Guidelines for Business Initiatives toward Green Society  
It is expected that business initiatives toward a Green Society will become active and concrete in 
the near future. The JFTC decides to clarify the application of the Antimonopoly Act to those 
initiatives in order to prevent anticompetitive conduct which d eters realization of a Green Society, 
and to raise transparency and predictability of the application and enforcement of the Act for 
businesses working toward Green Society.  
Against the above background, from October to December 2022 the JFTC held the 'Stu dy Group on 
Guidelines for Business Initiatives toward Green Society,' hosted by the Director General of the 
Economic Affairs Bureau of the JFTC, in order to consider the guidelines based on expertise of invited 
experts and the current state of Japan.  
Then, the JFTC compiled the Draft of 'Guidelines Concerning the Activities of Enterprises, etc. Toward 
the Realization of a Green Society under the Antimonopoly Act' whilst taking into account the 
opinions of invited experts in the Study Group, etc. and publi shed it on 13 January 2022, requesting 
public comments. The public comment procedure will be finished on 13 February 2022, after then, 
the JFTC would like to finalize the Guidelines as soon as practically possible.  
 
4) Report on Survey on Credit Card Marke t  
The Japan Fair Trade Commission (JFTC) conducted a survey on the credit card market, and 
published the "Report on Survey on Credit Card Market" in March 2019 and in April 2022.  
The reports stated disclosing the default interchange rate by the payment ne twork operators was 
considered preferable.  
Based on the advocacy of the reports, the JFTC and the Ministry of Economy, Trade and Industry 
had strongly encouraged the international brands to disclose default interchange fee rates. On 
November 30, 2022 Maste rcard, Union Pay and Visa disclosed their rates.  WT/TPR/M/438/Add.1  
 
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6.2 Transformación digital  
 
6.4. La pandemia de COVID -19 puso de relieve el ritmo particularmente lento de la digitalización, 
como demostraban los engorrosos procedimientos y la lentitud de los mecanismos d e pago de las 
prestaciones; por consiguiente, el antiguo Primer Ministro Suga hizo de la digitalización del Japón 
una de sus principales prioridades y en 2021, para promover una sociedad digital, el Japón promulgó 
tres nuevas leyes: la Ley Básica de Formac ión de una Sociedad Digital, la Ley por la que se establece 
el Organismo Digital y la Ley de Armonización de las Disposiciones relacionadas con la Formación 
de una Sociedad Digital.  
 
29. Colombia agradece a Japón ampliar la información sobre las medidas adoptadas para dar 
impulso a la transformación digital ¿Existe un sitio Web en el que se posible consultar estas 
nuevas leyes?  
 
Response  
The outlines of these three laws are available on the website of the Digital Agency: 
https://www.digital.go.jp/en/domestic -policies -en/ 
 
6.3 Derechos de propiedad intelectual  
 
6.8. En junio de 2018, la Oficina Central de Estrategia de la Propiedad Intelectual estableció una 
nueva visión a medio y largo plaz o para el período que va hasta 2030: la Visión Estratégica de la 
Propiedad Intelectual. En ella, el Japón establece para el futuro una "sociedad de diseño de valores" 
que integrará una diversidad de valores (más allá del económico) y en la que los distinto s agentes 
demostrarán plenamente sus capacidades polifacéticas, aprovecharán adecuadamente las 
características propias japonesas, generarán nuevos valores y atraerán la empatía del resto del 
mundo. El Japón diseñará de manera activa y creativa los mecanism os concretos que permitan 
formar esa sociedad.  
 
30. Teniendo en cuenta que la Visión Estratégica de la Propiedad Intelectual se empezó a 
implementar desde el 2018 y el objetivo es llevarla a cabo hasta el 2030, Japón podría 
compartir información sobre el balan ce cuantitativo y cualitativo de cómo esta estrategia ha 
tenido impacto en la forma en que se protegen los DPI en Japón.  
 
Response  
The Intellectual Property Strategy Vision is not focused on protecting intellectual property, but rather 
on using the tool of  intellectual property to make Japan stronger.  
The Intellectual Property Strategy Vision set the target to become a "value design society" by 
thinking of the ideal society with the period of 2025 to 2030 in mind. Discussions in a layer different 
from the p ast were placed at the core by examining specific intellectual properties that contribute to 
the objective by clarifying the objective instead of considering intellectual properties as tools.  
 
Tomando como base la información presentada, podría el Gobierno del Japón proveer información 
detallada sobre:   
31. El número total y en lo posible valor de los activos de propiedad intelectual (es decir: Número 
de patentes en vigor, de marcas, de IGs, de dis eños industriales, de derechos de autor y de 
variedades vegetales y su valor en la medida de lo posible).  
 
Response  
In Japan, as of the end of the year 2021, the numbers of registered/issued intellectual property 
rights in force are: 2,020,424 for patents , 2,070,877 for trademarks (TMs), 131 for GIs (consisting 
of 21 for liquors, and 110 for specific agricultural, forestry and fishery products and foodstuffs), 
263,274 for industrial designs (IDs), and 8,090 for plant varieties (PVs). Fig. 1 below shows the  
numbers of registered/issued rights in each year between 2012 -2021 (the number of GIs is omitted 
since it is too small compared with other rights).  WT/TPR/M/438/Add.1  
 
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Numbers of registered/issued rights in Year 2012 -2021 
 
Regarding the value of those rights, Japan does no t evaluate the value of each right, and thus cannot 
indicate the total value of them.  
 
Since protection of copyright does not require registration, Japan does not have means to count the 
amount of copyright assets.  
 
Sources:  
- Patents, TMs, and IDs: Japan Patent Office's Annual Report (in Japanese) 
[https://www.jpo.go.jp/resources/report/nenji/2022/index.html ] 
- GIs (liquors): National Tax Agency's website 
[https://www.nta.go.jp/taxes/sake/hyoji/chiri/ichiran.htm ] 
- GIs (specific agricultural, forestry and fishery products and foodstuffs): Ministry of Agriculture, 
Forestry and Fisheries' website [ https://www.maff.go.jp/e/policies/intel/gi_act/register.html]  
- PVs: Ministry of Agriculture, Forestry and Fisheries' website (in Japanese) 
[https://www.maff.go.jp/j/shokusan/hinshu/doukou/doukou.html ] 
32. Indicar la nacionalidad de los detentores de dichos derechos de propiedad intelectual (DPI), 
así como de los solicitantes  de DPI, indicando si son nacionales o extranjeros. Indicar la 
evolución de las participaciones (share %) de nacionales y extranjeros en el tiempo.  
 
Response  
With regard to the shares of residents and non -residents for intellectual property rights (IPRs),  
Figure 1 below illustrates them over the number of registered/issued rights in each year between 
2012-2021 in Japan. Also, Figure 2 below shows relevant ones regarding applicants. Please note 
that the data based on nationalities is unavailable, and data f or GIs is omitted because of the very 
small amount of non -residential right holders (the numbers of non -residential GI rights are zero for 
liquors and 3 out of 110 for specific agricultural, forestry and fishery products and foodstuffs, as of 
the end of 20 21). 
 274,791 277,079 
227,142 
189,358 203,087 199,577 194,525 179,910 179,383 184,372 
96,359 103,399 99,896 98,085 105,207 111,180 116,547 109,859 135,313 
174,098 
28,349 28,288 27,306 26,297 25,344 27,335 27,618 27,556 26,417 27,490 
881 752 863 847 941 812 758 591 502 590 050,000100,000150,000200,000250,000300,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of rights
YearPatents TMs IDs PVsWT/TPR/M/438/Add.1  
 
- 166 - 
 
 
 
Sources: See the response to Question 31.  
33. Estadísticas de la balanza de pagos (BoP) del Japón sobre "Cargos por uso de propiedad 
intelectual", discriminando "pagos" (payments) y "recibos" (receipts), así como su evolución 
en el tiempo. Idealmente  y en la medida de lo posible, señalar los porcentajes de pagos y 
recibos relativos a América Latina.  
 
Response  
Regarding "Charges for the use of intellectual property," the receipts and payments for total and 
Central and South America are as follows.  
 
In 2020, total (receipts and payments): JPY 4 ,627.9 billion and 3 ,048.8 billion, Central and South 
America (receipts and payments): 129.5 billion and 5.6 billion.  
In 2021, total (receipts and payments): JPY 5 ,283.7 billion and 3 ,239.4 billion, Ce ntral and South 
America (receipts and payments): 149.4 billion and 5.7 billion."  
34. Señalar la participación porcentual del comercio de DPI en el total del comercio del país, así 
como su evolución en el tiempo  
 
WT/TPR/M/438/Add.1  
 
- 167 - 
 
  Response  
Charges for the use of intellectual pro perty (net) in the balance of payment was JPY 1579.1 billion 
in 2020 and 2044.3 billion in 2021, and trades (goods) & services balance was JPY -877.3 billion in 
2020 and -2561.5 billion in 2021.  
 
6.4 Reforma financiera  
 
6.10. El Japón promulgó la Ley por la que se revisa parcialmente la Ley de Servicios de Pago (que 
entró en vigor el 1 de mayo de 2021) a fin de establecer las siguientes tres categorías de licencia/ 
registro de empresa de envío de dinero y aplicar una reglamentación apropiada según las funciones 
y los riesgos de cada categoría, teniendo en cuenta las necesidades de los usuarios que superan la 
cuantía máxima, incluidas las remesas del extranjero, y el hecho de que la mayoría de las remesas 
tramitadas por los proveedores de servicios de tr ansferencia de fondos existentes no exceden cada 
una de algunas decenas de miles de yen.  
• Tipo 1: Se permiten importantes transferencias de fondos de más de JPY 1 millón;  
• Tipo 2: Equivalente al actual régimen de registro, con un límite máximo de JPY 1 milló n; 
• Tipo 3: Se permiten transferencias de fondos de hasta JPY 50 .000, con requisitos de 
cumplimiento simplificados.  
 
6.12. El Japón promulgó la Ley por la que se revisa parcialmente la Ley de Banca (que entró en 
vigor el 22 de noviembre de 2021) a fin de me jorar el funcionamiento del sector de los servicios 
financieros —que se ha enfrentado a cambios económicos y sociales, como la digitalización a raíz de 
la pandemia de COVID -19—, ampliando el ámbito de actividad de los bancos y sus filiales adquiridas 
de instituciones financieras extranjeras y flexibilizando las restricciones a la participación en el capital 
de empresas que contribuyan a la revitalización regional…  
 
6.13. El Japón promulgó la Ley de Prestación de Servicios Financieros (que entró en vigor el 1 de 
noviembre de 2021) a fin de atender la necesidad de los proveedores de servicios financieros de 
proporcionar una amplia variedad de servicios a través de una ventanilla única en el contexto del 
desarrollo de la tecnología de la información y las comun icaciones, así como la necesidad de los 
usuarios de contar con servicios de pago muy prácticos y seguros para pasar a la era sin efectivo. 
Esta revisión permite que los proveedores de servicios de intermediación financiera presten servicios 
de intermediaci ón en todas las esferas de la banca, los valores y los seguros mediante un único 
registro…  
 
35. ¿Cuáles han sido los resultados de la implementación de la reforma financiera, llevada a 
cabo mediante la Ley de Servicios de Pago de 2021, la Ley de Banca de 2021 y la Ley de 
Prestación de Servicios Financieros?, ¿cómo estas medidas pudieron llegar a afectar las 
dinámicas de competencia del mercado financiero?¿cómo se busca proteger los datos 
personales de las personas que utilizan estos servicios financieros en lín ea? 
 
Response  
1)  
- The amended Payment Services Act took the risk -based approach and set up three different 
categories of money transmitter license/registrations that include the Type 1 Funds Transfer Service, 
which is capable of handling remittances of 1 million yen or mo re, as well as the Type 3 Funds 
Transfer Service, which is capable of handling remittances of JPY 50,000 or less. The JFSA  is 
continuing its efforts to expedite registration screening, including the one for Type 2 Funds Transfer 
Services (equivalent to the existing registration regime with the cap remaining at JPY 1 million).  
- As reviewed the business scope of banking groups  by the revised Banking Act, banks and their 
subsidiaries were encouraged to enter the business of regional revitalization.  
- The Act on the Provision of Financial Services created the Financial Services Intermediary Service, 
a single registry for all bank ing, securities, and insurance intermediaries.  
At the end of 2022, six financial services intermediaries were registered.  
 
2) The development of these systems has led to the securing of a fair and free competitive 
environment in the financial sector by pro moting the entry of new service suppliers and the business 
development of existing service suppliers.  
 
3) With regard to the personal information of all people who use financial services, including online 
ones, efforts are being made to ensure the proper h andling of such information under the WT/TPR/M/438/Add.1  
 
- 168 - 
 
laws/regulations, etc. related to those financial services and the Personal Information Protection Act, 
in addition to these laws amended and enacted in 2021.  
 
6.5 Reforma de la gobernanza empresarial  
 
6.15. El Código de Gobernanza Empresarial es un conjunto de principios que requieren que las 
empresas cotizadas en bolsa promuevan iniciativas que aumenten el valor de la empresa a medio y 
largo plazo cooperando con una gran variedad de partes interesadas y forma parte de l Reglamento 
de Cotización de Valores establecido por la Bolsa de Tokio. En 2021, se revisó el Código para 
introducir varios cambios importantes destinados a reforzar la independencia de los consejos de 
administración y promover la diversidad, la sostenibi lidad y los principios ambientales, sociales y de 
gobernanza (ASG).  En 2022, se revisaron las Directrices sobre el sistema de gobernanza empresarial 
(Directrices CGS) y se propuso que, para aumentar su valor, las empresas se esforzaran en fortalecer 
sus fu nciones ejecutivas y de vigilancia de forma sinérgica, mejorando sus sistemas de gobernanza.  
 
36. ¿Puede Japón informar como la reforma a su Código de Gobernanza Empresarial influye en 
su política o práctica de inversores en el exterior en pro de hacerlas más sostenibles?  
 
Response  
For companies' sustainable growth and increasing corporate value over the mid - to long -term, the 
JFSA has promoted corporate governance reform based on constructive dialogues between investors 
and companies by formulating and revisin g the Stewardship Code and the Corporate Governance 
Code.  
Currently, among companies listed on the Prime Market of the Tokyo Stock Exchange, more than 
90% have appointed one third or more of independent directors, and more than 80% have 
established a nomin ation committee and a remuneration committee. Through these efforts, Japan 
has been making steady progress in corporate governance reform initiatives.  
We believe that the progress of reforms through these initiatives has contributed to ensuring 
responsibil ities of the Board given its fiduciary responsibility and accountability to shareholders, and 
appropriate information disclosure and transparency which is the basis for constructive dialogue with 
investors, complying with the spirit of the Corporate Govern ance Code.  
The JFSA will continue to implement corporate governance reform initiatives so that companies and 
investors can make substantial effort in line with the purpose of the reform.  
 
6.6 Política de competencia  
 
6.17. El 19 de junio de 2019 la Dieta aprobó, en su 198ª sesión ordinaria, el proyecto de modificación 
de la Ley Antimonopolio; la Ley modificada fue promulgada el 26 de junio de 2019. El objetivo de la 
Ley modificada es disuadir eficazmente la "restricción injustificada del comercio", r evitalizar la 
economía y promover los intereses de los consumidores por medio de una competencia leal y libre, 
reforzando los incentivos para que las empresas cooperen en las investigaciones de la Comisión de 
Comercio Leal del Japón (JFTC) e imponiendo rec argos de cuantía apropiada en función de la 
naturaleza y alcance de la infracción. La Ley modificada entró en vigor en tres etapas, el 26 de julio 
de 2019, el 1 de enero de 2020 y el 25 de diciembre de 2020.  
 
37. De acuerdo con el informe de Gobierno, la Comisión de Comercio Leal del Japón (JFTC, por 
sus siglas en inglés) ha impuesto varias sanciones por infracción a lo dispuesto en la Ley 
Antimonopolio. A efectos de estimar el impacto de estas decisiones, agradecemos conocer 
si la JFCT ha llevado a cabo a lgún tipo de cuantificación que evidencie los efectos que han 
tenido sus actuaciones sobre la economía.  
 
Response  
In June 2016, the JFTC issued a cease and desist order against Coleman Japan Co, Ltd. which had 
engaged in restraining retail prices of its ca mping gears sold at brick -and-mortal stores or online 
stores of retailers [resale price maintenance case]. Coleman Japan was ordered to cease such 
restraint of retail prices, and to take other necessary actions.  
 
The JFTC conducted an ex -post review to und erstand effects of the enforcement action on the 
economy by analysing  results of interviews with businesses, price trend data and answers from 
consumers to online questionnaires as well as using econometric analyses. The conclusion of the ex -
post review wa s published in June 2020.  
 WT/TPR/M/438/Add.1  
 
- 169 - 
 
  As a result of the review, the JFTC found that the cease and desist order i) had positive effects on 
price competition in online sales of Coleman Japan's camping gears, ii) had positive effects on non -
price competition in brick -and-mortar sales of the camping gears, and iii) contributed to stimulating 
non-price inter -brand competition of camping gears.  
 
The JFTC will continue such ex -post review and take effective enforcement actions.  
 
6.7 Reforma del mercado laboral y participaci ón económica de las mujeres  
 
6.25. La brecha salarial entre hombres y mujeres en el Japón se va reduciendo en una perspectiva 
a largo plazo, pero sigue siendo importante si se compara con otras economías avanzadas. Para 
reducir aún más esa diferencia, el G obierno del Japón exige que los empleadores formulen un plan 
de acción que estipule i) el período de planificación específico; ii) sus objetivos numéricos; iii) las 
iniciativas y los esfuerzos específicos previstos; y iv) el calendario de aplicación. Esos puntos deben 
decidirse después de evaluar la situación y estudiar las dificultades que se plantean en lo que 
respecta a los siguientes factores: a) el porcentaje de mujeres en el número total de trabajadores 
empleados; b) la diferencia en el tiempo medio d e servicio entre hombres y mujeres; c) el promedio 
de horas extraordinarias y otros indicadores del horario laboral; y d) el porcentaje de mujeres que 
ocupan puestos directivos. Desde abril de 2022, la obligación de formular un plan de acción aplicable 
a los empleadores con 301 o más empleados permanentes se ha ampliado a los empleadores con 
101 o más empleados permanentes. Además, desde el 8 de julio de 2022, los empleadores con 301 
o más empleados permanentes deben determinar y divulgar la brecha salarial  de género de su 
empresa.  
 
38. ¿Podría el Gobierno de Japón ampliar la información sobre las medidas implementadas para 
reducir las brechas salariales de género?  
 
Response  
Employers need to disclose their company's gender pay gap, between regular employees, b etween 
non-regular employees, and between all employees. We also encourage them to disclose additional 
information such as more detailed analysis or the background. With this mandatory procedure as a 
turning point, we will support companies in encouraging their employers to make efforts to close the 
gender pay gap by some implementing measures such as conducting individual consulting.  
 
 
39. Colombia agradece a Japón brindar información acerca de si estas nuevas disposiciones para 
la reducción de brechas de género cuentan con indicadores de medición de resultados.  
 
Response  
Thank you very much for your interests in Japan's efforts in reducing the gender wage gap.  
 
Por ultimo , teniendo en cuenta el papel relevante que las políticas relacionadas con el comercio 
pueden tener para abordar la triple crisis ambiental (cambio climático, contaminación y pérdida de 
biodiversidad), podría el Japón proporcionar la siguiente información:   
 
40. ¿Ha adoptado el Japón en el período objeto de examen alguna política o medida ambiental 
particular relacionada con el comercio?  
 
Response  
We have not adopted such measures during the review period.  
 
41. ¿Qué medidas relacionadas con el comercio ha adoptado  el Japón para cumplir los 
compromisos de los Acuerdos Multilaterales sobre el Medio Ambiente (AMUMA)? ¿Ha 
identificado el Japón algún desafío relacionado con el comercio que surja de la 
implementación de AMUMA?  
 
Response  
According to the Environment Datab ase published by the WTO, from 2009 to 2021, Japan has 
notified 415 environment -related trade measures, and amongst which, subsidies related notifications 
were 102 and TBT related notifications were 83.  WT/TPR/M/438/Add.1  
 
- 170 - 
 
Japan pays extra attention when introducing environm ent-related measures so the measure is 
implemented in a manner consistent with relevant WTO agreements and principles of the WTO as 
well as commitments under the MEAs.  
 
42. El Japón ha adoptado o implementado una estrategia o política de economía circular? ¿Qu é 
políticas o medidas relacionadas con el comercio se han adoptado para apoyar la economía 
circular?  
 
Response  
Japan set the "Circular Economy Vision 2020" in 2020, which presents the basic direction that Japan's 
circular economy policy should take from th e three perspectives of (1) shifting to a highly circular 
business model, (2) obtaining proper evaluation from the market and society, and (3) quickly 
establishing a resilient circular system. In addition, in order to materialize a comprehensive policy 
package on the circular economy, a strategy on the circular economy is scheduled to be formulated 
during FY2022.  
In addition, trade -related policies and measures from the perspective of supporting the circular 
economy have not yet been adopted.  
 
43. ¿Qué iniciati vas de transferencia de tecnología ha adoptado o implementado el Japón como 
donante en el contexto del cambio climático y las tecnologías ambientalmente racionales?  
 
Response  
In the context of climate change sound technologies, Japan has implemented the J oint Crediting 
Mechanism, which aims to facilitate diffusion of leading decarbonizing technologies and 
infrastructure, etc., through investment by Japanese entities, thereby contributing to GHG emission 
reductions or removals and sustainable development in  partner countries.  
The JCM contributes to the achievement of both countries' NDCs by evaluating Japan's contributions 
in a quantitative manner and acquiring the part of credits.  
As of January 2023, Japan has established the JCM with 25 countries .  
In addition, Japan has implemented Climate Solutions Technologies Initiatives, a mechanism to 
provide Japanese companies' advanced decarbonization technologies to developing countries in need 
of assistance.  
  WT/TPR/M/438/Add.1  
 
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  22  CANADA  
SECTION I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Part II. Trade and Investment Regimes: Regional Trade Agreements  
 
Page 31, Table 2.18:  
This table lists Japan's Regional Trade Agreements. In 2019, Japan signed a Free Trade Agreement 
with the United States. However, this Agreement does not appear on this list.  
According to a policy brief published by the Kiel Institute for World Economy, in the deal, the U.S. 
and Japan agreed to liberalize just 3.4% and 10% of tariff lines on which MFN duties apply.2 A report 
by the U.S. Congressional Research Service on this Agreement notes that, "Analysts questioned the 
extent to which the U.S. -Japan deal adheres to Article XXIV of the General Agreement on Tariffs and 
Trade (GATT) under the World Trade Organization (WTO) that requires FTAs cover 'subs tantially all 
trade.'"3  
 
Question  
1. Does Japan consider that its Free Trade Agreement with the United States complies with its 
obligations under GATT Article XXIV? If so, why?  
 
Response  
There has been no common understanding among WTO Members on how to def ine the phrase 
"substantially all the trade" in Article XXIV of GATT. Japan is of the view that the Japan -US Trade 
Agreement is consistent with Article XXIV of GATT.  
 
2. When will this agreement be notified to the Committee on Regional Trade Agreements?  
 
Response  
See the above response.  
 
Part II. Trade and Investment Regimes: Investment Regime; Investment Framework  
 
Page 33 -34, Paragraph 2.28:  
It is noted that, under a November 2019 amendment to Japan's Foreign Exchange and Foreign Trade 
Act, "a foreign investor seeking a 1% share or more in businesses with importance to national 
security, public safety, infrastructure, or Japan's economy is req uired to undergo a prior notification 
and approval process" by the government, as opposed to the previous floor of 10%.  
 
Question  
3. By what percentage has the average quarterly number of review requests increased since 
this amendment came into force in June 2020?  
 
Response  
The number of prior notifications increased by about 4 times comparing 2019 with 2020 and beyond.  
 
4. Is Japan aware of any impact on quarterly FDI associated with the coming into force of this 
amendment?  
 
Response  
Inward FDI in Q2 2020 increa sed to JPY 4.950 trillion from 52.2 billion in Q1 2020 because of the 
increase in debt instruments. There are no significant changes in equity after the amendment.  
 
Part II. Trade and Investment Regimes: Investment Regime; Business Environment  
 
Page 35, Pa ragraph 2.35:  
It is noted that, in 2021, Japan's Council for Promotion of Foreign Direct Investment "adopted the 
Strategy for Promotion of  Foreign Direct Investment in Japan", and that the first pillar of the strategy 
is the "creation of a new digital gree n market and building an innovation ecosystem."  
 
2 Sonali Chowdhry et al., "The US -Japan Trade Deal: Narrow Scope, Wider Implications " (December 
2019) . Viewed at : https://www.ifw -kiel.de/publications/kiel -policy -brief/2019/the -us-japan -trade -deal-narrow -
scope -wider -implications -13600/. 
3 "U.S.-Japan Trade Agreement Negotiations" U.S. Congressional Research Service (9 November 2022) . 
Viewed at : https://crsreports.congress.gov/product/pdf/IF/IF11120 . WT/TPR/M/438/Add.1  
 
- 172 - 
 
Question  
5. Would Japan be able to elaborate on what this first pillar will consist of in terms of policies 
or policy changes?  
 
Response  
As for scheme of the first pillar of its strategy, please refer to English -translated version of "Strategy 
for Promoting Foreign Direct Investment in Japan" from the following link.  
http://www.invest -japan.go.jp/documents/pdf/en_chuchoki.pdf  
 
Part III. Trade Policies and Practices by Measure: Sanitary and Phytosanitary 
Requirements  
 
Pages 65 -68, Section 3.3.3:  
The report notes the main legislation covering SPS measures, including legislation relating to 
sanitary and phytosanitary measures and the main sanitary and phytosanitary requirements and 
procedures.  
 
Question  
6. Does Japan have any planned upcoming sanitary and phytosanitary regulatory initiatives not 
referenced in the TPR reports?  
 
Response  
We do not have any plans at this point.  
 
Page 65 , Box 3.1:  
It is noted that MAFF and MHLW are both responsible for SPS measures.  
 
Question  
7. Could Japan please provide details on MAFF and MHLW's  requirements as they relate to 
auditing foreign competent authorities?  
 
Response  
(MHLW)  
Audits of exporting country's competent authorities from the food safety perspective are conducted 
as needed.  
For example, regarding the Canadian beef, from the BSE m easures perspective, the export condition 
is agreed by bilateral consultation, and only those that conform to this condition are imported. Audits 
for Canadian beef are conducted to confirm that the system compliance with the export condition is 
appropriate ly maintained.  
(https://www.mhlw.go.jp/content/11130500/Canada_cattle_20190517.pdf ) 
 
(MAFF)  
With regard to plant quarantine, MAFF conducts audits for plants that are lifted  the ban on imports 
in the exporting country, and the requirements for such audits are prescribed in the public notice 
and the detailed rules for implementation.  
 
8. How do MAFF and MHLW ensure that the frequency of audit of foreign competent authorities 
are based on an assessment of risks to human, animal, or plant life of health?  
 
Response  
(MHLW)  
MHLW  considers that the frequency of audits implemented from the food safety perspective may 
differ according to its importance, seriousness of risk factor, etc.  
 
(MAFF)  
MAFF dispatches inspector to exporting countries to confirm that the phytosanitary measure s are 
properly taken in accordance with the agreement between Japan and the exporting country. MAFF 
considers decreasing frequency of audit or etc., on request by the exporting country in case exports 
are done with no problems for a certain period.  
 
9. Can Ja pan provide further details on the potential reorganization of MHLW to move food 
safety responsibilities to the Consumer Affairs Agency?  WT/TPR/M/438/Add.1  
 
- 173 - 
 
  Response  
1. Based on the Food Safety Basic Act enacted in 2003, Japan's food safety administration takes 
necessary mea sures to ensure food safety based on scientific knowledge, while giving due 
consideration to international trends and public opinions, to prevent adverse effects on people's 
health (Article 5 of the Food Safety Basic Act).  
 
2. The Consumer Affairs Agency h as unified jurisdiction over the food labeling system, and the Act 
for Establishment of the Consumer Affairs Agency clearly states that it functions as a control tower 
for food safety administration within the government. These are being carried out as a m ission of 
current Consumer Affairs Agency.  
 
3. As part of efforts to strengthen the ability of the Ministry of Health, Labour and Welfare  (MHLW) 
to respond to infectious diseases, the transfer of the jurisdiction on the administration of food safety 
standa rds from the MHLW to the Consumer Affairs Agency in Fiscal Year 2024 was announced on 
September 2, 2022.  
 
4. To ensure necessary measures are taken based on scientific knowledge according to the principles 
of the Food Safety Basic Act, even after the tran sfer of the administration of food safety standards 
to the Consumer Affairs Agency, we are considering the development of related laws and 
organizational structure, including the establishment of a Council (an expert group) in the Consumer 
Affairs Agency.  
 
5. In addition, administration of food safety surveillance, including safety measures on imported 
foods, will continue to stay in the MHLW as it is now.  
 
6. Have MAFF and MHLW considered reducing the frequency of audits of foreign competent 
authorities?  
 
Response  
(MHLW)  
Regarding audit from the food safety perspective, MHLW aims to conduct each audit in an effective 
and efficient manner taking into account situations including the implementation of audits and the 
import situation.  
 
(MAFF)  
Audits for plan t quarantine are conducted at least once a year in all countries, including Canada, 
from where Japan has lifted the ban on imports of prohibited plants.  
About reducing the frequency of such audits, it is necessary to consider whether the reduced 
frequency will increase the phytosanitary risk.  
 
Part III. Trade Policies and Practices by Measure: Government Procurement  
 
Page 74, Paragraph 3.152:  
It is noted that in the area of government procurement "Japan maintains various 'voluntary 
measures', which are the outcome of bilateral negotiations with the United States in the past, to 
facilitate foreign suppliers' opportunities to access Japan's gover nment procurement market" and 
that "these measures are applied at the multilateral level."  
 
Question  
10. Are these voluntary measures applied to all WTO members, including Canada, or only to the 
U.S.?  
 
Response  
In order to contribute to suppliers' convenience, to ensure market entry opportunities for competitive 
domestic and foreign suppliers, and to enhance transparency, fairness and competition in 
procurement procedures, the Government of Japan has decided to t ake necessary steps in keeping 
with the operational guidelines for procurement of products covered under the revised Agreement 
and other international agreements and for procurement carried out in accordance with the 
agreements. As for the details, please refer to the link below. 
https://japan.kantei.go.jp/101_kishida/documents/2022/_00030.html  
 WT/TPR/M/438/Add.1  
 
- 174 - 
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights; 
International Cooperation and Harmonization  
 
Page 83, Paragraph 3.173:  
The Secretariat Report indicates that after establishing an Internet of Things (IoT) Examination Team 
as well as a team for Supporting Artificial Intelligence (AI) Examinations, in 2021 the JPO also 
published the AI/IoT examination guidelines in manga format, with some chapters available in video 
format, in an effort to appeal to non -patent specialists.  
 
Question  
11. Has any more recent data been collected on the status of patent applications since 2020, 
particularly since the publication of the guidelines in 2021?  
 
Response  
The JPO publishes the latest statistical information, including the number of patent applications in 
2021, through the JPO STATUS REPORT. Also, our office coll ects the number of patent applications 
for AI -related inventions and publishes it on the JPO website 
(https://www.jpo.go.jp/e/system/patent/gaiyo/ai/ai_shutsugan_chosa.h tml). However, the data 
has been only collected until 2020. Regarding the application data for AI -related inventions in 2021, 
at present, we plan to collect and publish it in the second half of 2023.  
 
Paragraph 3.174, page 83:  
The Secretariat Report notes the recent work of the Japan Patent Office (JPO) in providing guidance 
to parties engaged in licensing negotiations related to standard essential patents (SEPs), such as 
the JPO's " Hantei  for essentiality check".  
 
Question  
12. Can Japan provide additional info rmation on the Hantei  for essentiality check, including with 
respect to criteria that the JPO uses in the advisory opinion to determine the essentiality of 
an alleged SEP?  
 
Response  
Please refer to the "Manual of 'Hantei' (Advisory Opinion) for Essentiality Check" 
(https://www.jpo.go.jp/e/support/general/sep_portal/document/index/manual -of-hantei.pdf) that 
summarizes how to request a "Hantei" (Advisory Opinion) for Essentiality Check, its requirements 
and how to make determinations.  
 
Part III. Tr ade Policies and Practices by Measure: Intellectual Property Rights; General 
Regulatory Framework  
 
Page 85, Paragraph 3.183:  
The Report notes that as of April 2023, patent rights that have been forfeited due to unintentionally 
missed deadlines may be more readily restored with the submission of a short statement and 
payment of a fee.  
 
Question  
13. How long does a party have to pay the fee to revive their expired rights after a deadline has 
been missed?  
 
Response  
・As you recognize, patent rights, etc. whose rights will expire after 1 April 2023, will be able to be 
restored if the reason for not submitting a payment statement to the Patent Office is "not 
intentional".  
・The restoration fee is JPY 212,100 for patent ri ghts, JPY 21,800 for utility model rights, JPY 24,500 
for design rights, and JPY 86,400 for trademark rights (registration fees and additional registration 
are also required).  
・You can request for restoration within two months from the date on which you ar e able to complete 
the procedures after the expiration of the period and within one year after the expiration of the 
procedure period (within six months for trademarks).  
 
14. Will a party be notified if their patent rights have been forfeited?  
 WT/TPR/M/438/Add.1  
 
- 175 - 
 
  Response  
・If an application is submitted to voluntarily abandon your patent rights, etc. to the Patent Office, 
notification will be sent. However, no notification will be sent if the right is cancelled due to non -
payment of the patent fee.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights; Plant 
Variety Rights and Genetic Resources  
 
Page 89, Paragraph 3.197:  
The Report provides details of a new Act on Prevention of Unfair Competition on Genetic Resources 
of Livestock (the Livestock GR Act),  which creates an IP right in genetic resources of improved 
livestock breeds, such as Wagyu embryos and semen. Notably, civil injunctions, damages, and credit 
recovery measures are available against parties that unfairly acquire, use, or transfer protected  
genetic resources, or unfairly use livestock produced with livestock genetic resources to produce 
further livestock or livestock genetic resources.  
 
Question  
15. With respect to genetic resources (GRs) granted on improved livestock breeds, what exactly 
is being protected? What aspects of a Wagyu cow qualify as a GR?  
 
Response  
The Act on Prevention of Unfair Competition on Genetic Resources of Livestock prevents unfair 
competition such as illegal acquisition of "livestock genetic resources" and protects the benefits of 
livestock genetic resource producers. Article 2 of the Act defines the "livestock genetic resources" 
as "specific semen or embryos" which a livestock genetic resources producer commercially sells and 
regarding which the producer clearly specifi es the scope of users or the purpose of their use through 
a contract or other manners specified by the ministerial Ordinance.  
 
The "specific semen or embryos" as described above are semen or embryos of the livestock whose 
proper distribution must be ensure d due to their high economic value or other reasons and the ones 
the Minister of Agriculture, Forestry and Fisheries designates as such in accordance with Article 32 -
2 of the Act on Improvement and Increased Production of Livestock.  
 
16. Can Japan provide any further information on the administration of the Livestock GR Act?  
 
Response  
The law was enacted in April 2020 and came into force on 1 October 2020. The ministerial ordinance 
of the law was published in the Official Gazette on 28 September 2020 and came i nto effect on 
1 October 2020.  
 
17. Are the livestock GRs registered in a database where buyers and sellers can confirm if a 
product is legitimate?  
 
Response  
There is no database in which information on the livestock genetic resources is registered in order 
to confirm a product is legitimate.  
As to the method to protect the benefits, a livestock genetic resources producer can sign with a 
buyer of the livestock genetic resources a contract that specifies the scope of users or the purpose 
of their use of the resou rces in selling the resources, if the producer intends to protect its benefits 
under the Act on Prevention of Unfair Competition on Genetic Resources of livestock.  
When the buyer of the livestock genetic resources sells the resources concerned, the buyer s igns 
contracts with purchasers based on the content of the contract concluded with the producer.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights; Copyright  
 
Page 94, Paragraph 3.213:  
With respect to copyright, the Report describes a 2018 amendment regarding the use of copyrighted 
materials by non -profit schools in online lessons, which established a system permitting teachers to 
use copyrighted works in online lessons without right holder consent. Right holder compe nsation is 
coordinated by the newly established Society for the Administration of Remuneration for Public 
Transmission for School Lessons (SARTRAS).  
 WT/TPR/M/438/Add.1  
 
- 176 - 
 
Question  
18. Can JPO provide more information on how SARTRAS ensures rights holders are compensated 
for the us e of their works?  
 
Response  
When an educational institution uses a work through the system of compensation for public 
transmission for classes, the establisher of an educational institution pays compensation to 
SARTRAS. SARTRAS distributes the compensation to individual rights holder s as much as possible 
through rights holders' organizations, etc., based on usage reports from educational institutions 
using the sample method. In light of the possibility that there are right holders who do not receive 
the distribution of compensation du e to omission from the sample method although educational 
institutions use their work, SARTRAS also expends a part of the collected compensation for projects 
related to the protection of rights, as well as projects that contribute to promoting the creation  of 
works and to their dissemination based on the Copyright Act.  
 
Part IV. Trade Policies by Sector: Agriculture, Forestry, and Fisheries; Agriculture  
 
Page 100, Paragraph 4.1:  
Japan's Supplementary Budget, enacted in late 2022, included an allocation of n early JPY 50 billion 
(USD 390 million) in support for the use of domestic forest products and enhancing the 
competitiveness of the domestic forestry industry. Among its stated objectives is providing support 
for a shift to the use of domestic structural lu mber Also among the program's objectives are sharp 
increases in the domestic production of lumber and the use of domestic lumber in construction to 
63% by 2030.  
 
Question  
19. Can Japan provide assurances that its efforts to achieve these objectives will confo rm to 
WTO national treatment commitments?  
 
Response  
The program is operated to support a shift to domestic and "other" products, which means that the 
program's support covers not just a shift to domestic wood products, but also a shift to imported 
forest p roducts, thereby conforming to the WTO national treatment commitments.  
 
20. Can Japan explain how imported forest products will be treated in the programs designed to 
achieve these objectives?  
 
Response  
The program has no requirements to use domestic timber on ly or to exclude the use of imported 
timber.  
 
21. Is Japan's objective of reducing imported lumber in its market consistent with the spirit of 
its trade commitments and the principles that underpin the multilateral trading system?  
 
Response  
Japan promotes the  use of wood that contributes to carbon neutrality and considers it necessary to 
increase the supply of domestically produced wood as well as to ensure continuous and stable 
imports. However, the recent wood shock has resulted in a significant import backl og, and the 
programme is taking the necessary measures to ensure a stable supply that does not violate Japan's 
trade commitments and the principles underpinning the multilateral trading system.  
 
Part IV. Trade Policies by Sector: Agriculture, Forestry, and  Fisheries; Agriculture; 
Agricultural Policy  
 
Page 100, Paragraph 4.4:  
Canada notes the Secretariat reports on the Food, Agricultural and Rural Areas Basic Plan and its 
self-sufficiency targets (calorie and production value basis) and the export target of JPY 5 billion by 
2030.  
 
Question  
22. Could Japan elaborate on this export target i.e., the types of agricultural products that it 
aims to export?  WT/TPR/M/438/Add.1  
 
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  Response  
In order to achieve the export target of JPY 5 trillion by 2030, the government of Japan aims t o 
expand exports of the Priority Export Products (such as beef, scallop, Japanese sake, etc.) set forth 
in the Strategy to Realize Export Expansion of Agricultural, Forestry and Fishery and Food Products.  
 
Part IV. Trade Policies by Sector: Agriculture, Fo restry, and Fisheries; Agriculture; 
Domestic Support; Specific Products; Rice  
 
Page 105, Paragraph 4.32:  
Canada notes the Secretariat reports on the new funding program added to the Direct Payments for 
Rice and Paddy Utilization. As detailed in the Secreta riat report, the "fourth program" was built to 
"pay farmers who produce certain products in the paddy field", with the footnote 12 mentioning that 
"such products are rice targeted for new market development, processed rice, wheat, barley, and 
soybeans".  
 
Question  
23. Could Japan elaborate on the types of activities that would fall under the ambit of "new 
market development" for these products as noted in footnote 12?  
 
Response  
It refers to the use of rice that are expected to develop new markets for rice, both domesti cally and 
internationally, such as the use for bioethanol, bioplastic and other applications.  
 
Part IV. Trade Policies by Sector: Mining and Energy; Energy  
 
Page 109, Paragraph 4.67:  
Report notes JOGMEC's ability to "provide private equity infusion and loa n guarantees for private 
projects relating to production and storage of hydrogen and ammonia."  
 
Question  
24. Could the Government provide additional details as to its priorities and criteria when 
selecting projects?  
 
Response  
In November 2022, the Ministry of Economy, Trade and Industry (METI) announced a basic strategy 
that prioritize JOGMEC investment for hydrogen and fuel ammonia projects from the perspective of 
strategic and efficient achievement of Japan's energy security.   
 
Following the strategy, JOGMEC has developed relevant rules and criteria for the project screening 
and provides support in the form of equity investment and debt guarantee services for the projects 
based on them.  
 
Part IV. Trade Policies by Sector: Mini ng and Energy; Energy; Hydrocarbons; Oil and Gas  
 
Page 111, Paragraph 4.78:  
Regarding oil, the Report notes that the Government seeks to "(i) diversify supply sources, (ii) 
further cooperate with oil producing countries."  
 
Question  
25. Can the Government speak  to its priorities in choosing diverse supply sources and potential 
trading partners?  
 
Response  
A stable supply of crude oil is essential. Since Japan's crude oil imports are highly dependent on the 
Middle East, diversification of supply sources is important.  As Japan's oil sales companies determine 
crude oil suppliers, the Japanese government cannot speak to the priorities of crude oil suppliers.  
 
Part IV. Trade Policies by Sector: Mining and Energy; Energy; Electricity  
 
Page 112, Paragraph 4.83:  
Report notes how "the retail market of electricity has been liberalized since 2016" and the increase 
in registered retailers.  WT/TPR/M/438/Add.1  
 
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Question  
26. Has the Government of Japan taken any measures to encourage the participation of foreign 
companies in its energy productio n and retail market?  
 
Response  
To establish a fair electricity market, no specific measures are taken to encourage only foreign 
companies to enter the market. However, for foreign companies that are interested in the Japanese 
electricity market, (1) some m aterials and information on the website have been translated into 
English, and (2) individual consultations have been provided for them, based on their requests.  
 
SECTION II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Part II. Trade and Investment Policy: Trade Policy  
 
Pages 4 -5, Paragraph 2.3:  
During the review period, several agreements containing chapters on state -owned enterprises were 
signed and subsequently came into force, namely the CPTPP (or TPP11), the Japan -EU EPA, the 
Japan -UK CEPA and RCEP. While Japan's state -owned enterprises' unde rtakings under CPTPP, the 
Japan -EU EPA and the Japan -UK CEPA agreement are all built on WTO rules on state enterprises, 
commitments under the CPTPP are different from those under the Japan -EU EPA and Japan -UK CEPA 
agreements. Further, RCEP does not include  disciplines on state -owned enterprises.  
 
Question  
1. Given Japan's commitments on state -owned enterprises under CPTPP, the Japan -EU EPA and 
Japan -UK CEPA, could Japan please explain the policy rationale for not including disciplines 
on state -owned enterpris es in the RCEP?  
 
Response  
The RCEP Agreement is an Economic Partnership Agreement among 15 countries including some 
least-developed countries. The domestic institutions and economic development status are widely 
different among those countries. As a result  of the negotiations, the Agreement did not include 
disciplines on state -owned enterprises.  
  WT/TPR/M/438/Add.1  
 
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  23  UKRAINE  
Ukraine is very grateful to Japan for standing with Ukraine in these terrifying times and not remaining 
indifferent in the face of the unprecedented and i llegal aggression of the RF.  
 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/438)  
1 ECONOMIC ENVIRONMENT  
1.1 Main Features of the Economy  
Page 14 (Para 1.3)  
According to the Report, the population ageing has a major impact on Japan 's fiscal situation.  
Japan's economy faces considerable challenges posed by an ageing and declining population; 28% 
of the population is older than 65 years, compared with an OECD average of 17%.  
 
Question  
1. Considering that ageing unequally bears a cost on future economic growth as well, would Japan, 
please, elaborate on its policy and measures taken to address the negative impact of ageing on 
national economy?  
 
Response  
The retirement age in Japan, which was generally 55 by the 1970s, has been continuously raised 
against the backdrop of longer average life expectancy and decline in the number of births. By 
amending the Act on Stabilization of Employment of Elderly Persons, the government imposed the 
obligation to make efforts to set retirement a ge of 60 in 1986, amended the law in 1994 to stipulate 
the retirement age of 60 and came into effect in 1998. Subsequently, in 2004, the Act was amended 
again to include the provision to stipulate continued employment until age 65, which came into effect 
since 2013.  
Furthermore, in order to maintain growth potential even as the working population continues to 
decline due to the rapid population aging and falling birth rate , the Act was partially amended to 
impose on companies the obligation to make efforts to secure employment opportunities for older 
workers who are willing to work, so that they can fully demonstrate their abilities and continue 
working until the age of 70. The amendment came into effect in April 2021. As a result of those 
subsequent measure s, labour  participation rate for elderly persons has been on the increasing trend.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Other charges affecting imports  
Page 48 (Para 3.38)  
The Report informs that Japan l evies a consumption tax (value added tax) of 10% on goods imported 
into or manufactured in Japan and a reduced rate (8%) on a list of goods. The reduced tax rate is 
applied to food, beverages (excluding alcoholic beverages and eating -out services), and cer tain 
newspapers under subscription. There are transactions not considered taxable such as the transfer 
or lease of land and the transfer of postage stamps. In addition, there are non -taxable transactions 
based on social policy considerations such as social  insurance, medical fees, and social welfare 
services. With respect to imports, the consumption tax is paid on customs value of the goods, plus 
the customs duty and any other excise taxes payable.  
 
Questions  
2. Could Japan, please, elucidate information on  consumption tax (value added tax) collection at 
standard (10 %) and reduced (8%) rates on goods and services, including with respect to imports? 
What rates are applied to imported goods, if they are included in the mentioned list (for example, 
food, beverages, etc.)? Is such list of goods available  up-to-date (in English)?  
 
Response  
If the imported goods are food and beverages, excluding alcoholic beverages, a reduced rate (8%) 
applies, while the standard rate (10%) applies to other goods and services . There is no list that 
identifies the tax rate applicable to imported goods.  
 
3. Would Japan also inform more on transactions for which preferential consumption tax (value 
added tax) regime is provided?  
 WT/TPR/M/438/Add.1  
 
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Response  
We do not necessarily understand what "pre ferential consumption tax (value added tax) regime" 
indicates, but please find below the examples of transactions that the standard tax rates are applied:  
- transactions subject to the reduced rate (8%): food and beverages (excluding liquors and eating -
out services) along with newspaper subscriptions, which are issued at least twice a week.  
- tax exempt transactions: transfer and lease of land, securities, transfer of payment instruments, 
interest of loans, etc. , insurance premiums, postal stamps, stamps,  official fees, foreign exchange 
transactions, medical care under the Health Care Insurance, social welfare services, etc. prescribed 
in the Social Welfare Act, certain tuition fees, entrance examination fees, Type 2 social welfare 
services and social welf are services, enrollment fees, expenses of facilities and equipment, fees of 
certificates of enrollment, midwifery, burial charges, cremation fees and charges, transfer and lease, 
etc. of products for persons with physical disabilities, transfer of textboo ks, lease of housing.  
 
4. Does Japan`s legislation set out mechanism of budgetary reimbursement of consumption tax 
(value added tax) and, if so, what are its particularities?  
 
Response  
We do not necessarily understand what "mechanism of budgetary reimburs ement" indicates, but 
when the amount of consumption tax on taxable sales is lower than that on taxable purchases, you 
may get tax refund.  
 
5. What are the specifics of use of credit schemes by taxpayers?  
 
Response  
The answer for the question depends on the definition of "credit schemes", and it is difficult for us 
to answer without clarifying what it means.  
 
3.2 Measures Directly Affecting Exports  
3.2.5 Export finance, insurance, and guarantees  
Page 56 (Para 3.81)  
The Report tells that the Ni ppon Export and Investment Insurance (NEXI) and the Japan Bank for 
International Cooperation (JBIC) remain the official export credit agencies of Japan.  
 
Question  
6. Would Japan kindly specify the requirements for the solvency, creation of reserves, and th e risks 
evaluation system of Japan's export credit agencies, and inform us if there is any way to be 
familiarized with documents regulating their activities (please, provide the web -link in English, if it 
is possible)?  
 
Response  
The requirements for the so lvency, creation of reserves in Nippon Export and Investment Insurance 
(NEXI), are stipulated by the International Trade and Investment Insurance Act. Regarding your 
inquiries, please refer to both article 22 and 23 of the following link.  
 
Link: https://www.japaneselawtranslation.go.jp/ja/laws/view/3446  
 
In terms of the risks evaluation system of NEXI,  please refer to the following link ( the official 
website of NEXI). On this website, the latest table of country/region category based on the decisions 
of OECD Country Risk Expert Meeting is available.  
Link： https://www.nexi.go.jp/cover/en/categorytable  
Reference The of ficial website of NEXI ：https://www.nexi.go.jp/en/index.html  
 
Japan Bank for International Cooperation (JBIC) Act stipulates that half of the profits of each fiscal 
year shall be set aside as reserves in Article 31.1. and stipulates maximum amount of fund raising 
(Borrowings and Bonds) in Article 33.  
The risk assessment flamework for export credit is regulated by the OECD Arrangement, and JBIC 
follows the risk flamework. We suggest that you refer to the ru les of the OECD Arrangement.  
For more detailed regulations of JBIC Act, please see below URL/link (excerpted version, not the full 
text).  
https://www.jbic.go.jp/en/inform ation/annual -report/pdf/2022E_a03.pdf  
 WT/TPR/M/438/Add.1  
 
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  3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
3.3.1.1 Taxation and tax incentives  
Page 58 (Para 3.88)  
The Report informs that Japan`s taxes are classified into national, prefectural, and municipal taxes. 
Table A3.1 presents different categories of taxes, applied in Japan, and their taxation rates.  
 
Question  
7. Could  Japan, please, inform how and what taxes are applied on transactions with virtual assets, 
in particular cryptocurrency, token s, bitcoins, etc.? What is the category of such assets of enterprise 
(company) as virtual assets (cryptocurrency, tokens, bitcoins, etc.) in Japan? Are these assets 
considered as intangible assets, digital securities, goods, means of payment (funds) while using 
them in  purchase and sale transactions, in payments between enterprises (companies)? Does 
Japan`s legislation provide for specifics of taxation and separate accounting (tax, bookkeeping ) of 
transactions with virtual assets, income received, expenses and financial results of such 
transactions?  
 
Response  
1) Regarding accounting treatment of some crypto -assets (limited to Article 2 (5) of the Payment 
Services Act), they are generally classified as "asset" and appropriate accounts are used for the 
presentation of the balance sheet.  
2) As described in Article 2 (5) (I) and (ii) of the Payment Services Act, we consider that it is 
generally treated as some kind of property value.  
 
（Reference ） Payment Services Act  
Article 2(Definitions)  
(5)The term "cr ypto-assets" as used in this Act means any of the following; provided, however, that 
those indicating electronically recorded transferable rights prescribed in Article 2, paragraph (3) of 
the Financial Instruments and Exchange Act (Act No. 25 of 1948) are excluded:  
(i)property value (limited to that which is recorded on an electronic device or any other object by 
electronic means, and excluding the Japanese currency, foreign currencies, and currency -
denominated assets; the same applies in the following item ) which can be used in relation to 
unspecified persons for the purpose of paying consideration for the purchase or leasing of goods or 
the receipt of provision of services and can also be purchased from and sold to unspecified persons 
acting as counterpart ies, and which can be transferred by means of an electronic data processing 
system; and  
(ii)property value which can be mutually exchanged with what is set forth in the preceding item with 
unspecified persons acting as counterparties, and which can be tran sferred by means of an electronic 
data processing system.  
 
3)Under the Japanese Corporation Taxation Act, the amount of income is calculated in accordance 
with an accounting standard that is generally accepted as fair and appropriate. The income arising 
from business activities related to crypto -assets is also treated the same.  
 
8. Would Japan kindly inform more about Income Tax: its subject; taxpayers, clarifying whether all 
registered legal entities are Income Tax payers; criteria of definition of progres sive rates; specifics 
and preferential regime of Income Tax application; availability of single register of operators of 
platforms (information systems) and particularities of their taxation, accounting, and control over 
the correctness of data on revenues  provided by such operators (information systems); availability 
of access to bank secrecy for tax authorities and its legal grounds? What sector of economy is the 
most profitable in Japan and brings the highest percentage of budget revenues?  
 
Response  
1. Please refer to the page 11 of "Learn about "Income Tax" from the link below to understand the 
specifics of income tax.  
https://www.mof.go.jp/english/policy/tax_pol icy/publication/tax012/index.htm  
 
2. We do not necessarily understand what the sentence indicates, but Article 174 of Income Tax Act 
explains tax payment obligation of corporations  
 WT/TPR/M/438/Add.1  
 
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3. We do not necessarily understand what "criteria of definition" indicate s, but please refer to the 
figure on the page 10 and the upper figure on the page13 of "Learn about "Income Tax" from the 
link below which explains the specifics of progressive rates of income tax.  
https://www.mof.go.jp/english/policy/tax_policy/publication/tax012/index.htm  
 
4. We do not necessarily understand what "specifics and preferential regime" indicates, so we cannot 
answer to the question.  
 
5. The purpose of the question is vague. Especially about what you mean by "information system" 
and "its tax and accounting" in the question text is unclear, so could you please be more specific in 
your questions, e.g., provide examples or cases you have in mind?  
 
6. There is no system or legal grounds for the NTA to have access to bank secrecy.  
If necessary, the NTA may request financial institutions to cooperate in tax audit conducted under 
the Act on General Rules for National Taxes.  
 
7. The NTA conducts a samp le survey, called the Corporate sample survey, on the amount of 
corporate tax for corporations headquartered in Japan and classified into 17 industries, excluding 
public corporations, non -profit -making corporations, corporative associations, and associatio ns 
without juridical personality.  
The service industry recorded the highest corporate tax amount in fiscal year 2020.  
 
9. Could Japan, please, clarify whether Motor Vehicle Tonnage Tax is applied to passenger cars only, 
to what budget (national or municipa l) it is collected and who are taxpayers (both natural and legal 
persons)?  
 
Response  
Motor Vehicle Tonnage Tax is applied to cars, including not only ordinary passenger ones but also 
buses and trucks etc. A natural or legal person who receives vehicle insp ection certificate will be 
taxpayer.  
 56.9% of the revenue from Motor Vehicle Tonnage Tax is allocated to National government, and 
43.1% of it is to local governments.  
 
 
10. What is the subject and taxation base for International Tourist Tax? Who are its t axpayers?  
Response:  
Please refer to the link below to understand the specifics of International Tourist Tax.  
 https://www.nta.go.jp/english/taxes/indirect/tourist_tax.htm  
 
11. Wou ld Japan kindly clarify whether I nhabitant Tax on Corporations  is applied as 1% of the 
amount of Corporation Tax, without additional prefectural tax?  
 
Response  
Inhabitants of prefectures must pay 1% of the amount of Corporation Tax as Prefectural Inhabita nt 
Tax on Corporations, separate from Corporation Tax. In addition, prefectures can raise the tax rate 
of Prefectural Inhabitant Tax on Corporations by the provisions of ordinances. The maximum tax 
rate is 2%.  
 
12. Could Japan, please, give more informatio n about Real Property Acquisition Tax regime? Is this 
tax paid once upon the purchase of real property or permanently (if so, what is the periodicity of 
real property evaluation)? Who provides evaluation of real property? What document should the 
property owner provide to the fiscal service? Is there a single state database on real property, with 
information on its evaluation, owners, etc. and, if so, who is the administrator of such database?  
 
Response  
Real Property Acquisition Tax is a tax that you pay only once when you acquire real property.  
The evaluation of real property is conducted by local organizations.  
The documents to be declared by the real property acquirer are stipulated in the prefectural 
ordinances.  
There is no single national database for  real property.  
 WT/TPR/M/438/Add.1  
 
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  13. What is the periodicity of Automobile  Tax payments? Ukraine would appreciate if Japan could 
confirm the up limit of the rate for passenger cars (JPY 11,000 according to Table A3.1). If it is 
correct, would Japan, please, provide examples of passenger cars for which the rates of JPY 34,500 
and JPY 11,000 are applied? What is the procedure of appl ication of different amounts of tax  rate? 
 
Response  
The due date for Automobile tax is the day in May determined by the taxing prefecture.  
The correct Automobile tax rates are based on the following: Private  use: Buses: JPY 33,000 – 
JPY 83,000; Passenger cars (Newly registered from  
October 2019): JPY 25,000 - JPY 110,000; Small three -wheeled vehicles: JPY 6,000; Trucks: 
JPY 8,000 - 
(Increase according to the maximum load)", and business use is "Buses: JPY 12, 000 - JPY 64,000. 
Passenger cars: JPY 7,500 - JPY 40,700. Small three -wheeled vehicles: JPY 4,500. Trucks: JPY 6,500 
-. 
(Increase according to the maximum payload)".  
Therefore, the maximum tax rate for passenger cars is JPY 110,000.  
A specific example to w hich the tax rate of JPY 30,500 (private use) is applied is the Toyota AQUA, 
and a specific example to which the tax rate of JPY 110,000 (private use) is applied is the Rolls -
Royce Phantom.  
The tax rate will be applied according to the cylinder capacity fo r passenger cars, the maximum 
payload for trucks, and the number of seats for buses.  
 
14. Could Japan, please, give more detailed information concerning M ine Lot taxation, in particular 
clarify whether the entire lot is taxable  or it depends on the size of  the mine that can be smaller 
than the lot where  the mine is located ? 
 
Response  
Mine Lot taxation is levied on the entire lot registered, pursuant  to Mining Act, for prospecting and 
digging minerals.  
 
15. What is the subject ( the fact of hunting or a hunte r`s prey) and the periodicity of Hunting Ta x 
payments? What are criteria of application of different amounts of Hunting Tax rate?  
 
Response  
[The subject]  
Those who received a hunting license  
 
[The periodicity]  
Depends on prefectural ordinance  
 
[Hunting Tax rate]  
The first type of gun hunting license: JPY 16,500  
Net hunting license or trap hunting license: JPY 8,200  
The second type of gun hunting license: JPY 5,500  
 
16. Would Japan, please, also explain the procedure  of Utility and Land Profit Tax  collection, in 
particular how v oluntary tax rate is applied?  
 
Response  
There are two possible collection procedures for water utility and land profit tax: ordinary collection, 
in which the tax official issues a tax notice to the taxpayer and col lects the tax, and special collection, 
in which an individual or entity in a position to be able to collect the tax on behalf of the taxing 
authority collects the tax. And the procedure is determined by the ordinance of the taxing authority 
(local public b ody).  
This tax is levied on land or houses that benefit specifically from a particular business, such as 
irrigation, to the extent that the tax do not exceed the limit of such benefits. In addition, each taxing 
authority can decide whether to levy this tax , and currently there are only three taxing authorities 
which levy this tax.  
 WT/TPR/M/438/Add.1  
 
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3.3.7 Intellectual property rights  
3.3.7.2 Policies on promotion and commercialization of innovation  
Pages 81 -82 (paragraphs 3.169, 3.172)  
According to the Report, the Japan Pat ent Office (JPO), in collaboration with other agencies and the 
National Center for Industrial Property Information and Training (INPIT), continues to offer the 
resources, programmes, fee reductions, exemptions, and subsidies designed to support the 
registr ation and commercialization of technologies developed by universities. The Report also 
mentions the University Network for Innovation and Technology Transfer`s most recent annual 
survey, which revealed that university, TLO, and public research institute li censing revenues 
continued to grow during the review period, from JPY 3 billion in FY2016 to JPY 4.2 billion in FY2019.  
 
Question  
17. Could Japan, please, provide more details on measures taken by the Japanese Government to 
stimulate an increase in the num ber of registration and commercialization of technologies developed 
by universities?  
 
Response  
The Japanese government has implemented a number of projects to promote the patenting and 
commercialization of technologies developed by universities. The follo wing are examples of these 
projects.  
(1) Policies to Promote Patenting of University -Developed Technology  
The Japan Science and Technology Agency (JST), through its Intellectual Property Utilization Support 
Program, has subsidized application fees and disp atched experts to support the filing of foreign 
patent applications for university -developed technologies that are intended for overseas technology 
transfer.  
The JPO offers measures including an accelerated examination system and fee reduction and 
exemptio n. INPIT also implemented the IP advisor for university -industry collaboration dispatch 
project, which dispatches IP experts to universities carrying out university -industry collaboration 
activities directed towards commercialization and provides advice on  business models and other 
matters.  
(2) Policies to promote commercialization of university -developed technologies  
In order to commercialize university -developed technologies through the formation of university -
launched start -ups, Japanese Government have mainly implemented the following projects.  
To strengthen the system to promote open innovation, Ministry of Education, Culture, Sports, 
Science and Technology (MEXT) and Ministry of Economy, Trade and Industry （METI） established 
guidelines for industry -academia collaboration.  
The Japan Science and Technology Agency (JST), Japanese governmental funding agency, has been 
implementing the " Adaptable and Seamless Technology Transfer Program through target -driven 
R&D (A -STEP)" to promote the prac tical application of research results at universities and other 
public research institutions and to create innovation through collaboration between universities and 
companies, in order to promote the development of promising seeds at universities and publi c 
research institutions. The program has provided seamless support from the discovery of promising 
seeds at universities and public research institutions to their commercialization.  
In order to create a place where human resources, knowledge, and funds are  gathered, JST has also 
been implementing the "Program on Open Innovation Platform with Enterprises, Research Institute 
and Academia (OPERA)" since FY2008. This program has promoted large -scale joint research in non -
competitive areas through consortium -type collaboration consisting of multiple companies, human 
resource development for doctoral students, etc., and reform of the university -industry collaboration 
system in an integrated manner by means of matching funds with companies.  
In addition, JST has bee n implementing the "Center of Innovation (COI) Program" since FY2013 as 
an initiative to create innovative innovations by building a world -class large -scale industry -academia 
collaboration center where universities, public research institutions, and compan ies gather to 
intensively conduct R&D from the basic research stage to practical applications.  
The METI has been implementing measures to promote industry -academia collaboration and joint 
research by young researchers with the aim of growing researchers w ho will lead the next generation 
of innovation since FY2020.  
 
18. Based on its experience, would Japan also kindly advise what instruments, besides providing 
additional resources, fee reductions, exemptions, and subsidies, are the most effective for such 
stimulation?  WT/TPR/M/438/Add.1  
 
- 185 - 
 
  Response  
It is difficult to specify the most effective means. However, based on the measures, it might be 
effective that training researchers for generating technology seeds at universities, to accumulate 
know -how at the universities by dispatc hing experts to universities to support individual projects for 
commercialization and utilization of intellectual property, and providing guidelines for academia -
industry collaboration. And designing a system to promote investment, human resources, and 
technical assistance to university -originated startups might be effective.  
 
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.1 Financial services  
4.4.1.1 General background  
Page 114 (Para 4.93)  
The Report notes, that Japan is one of the main financial services markets in the world and has a 
fully developed and highly diversified financial services sector, which continued to grow during the 
review period. Finance and insurance accounted for 4.6% of GDP in 2021, compared with 4.1% in 
2018; at end -2021, 2. 5% of the labour force was employed in this sector.  
 
Question  
19. Could Japan, please, elaborate on the situation at national level with gender and socio -economic 
inclusivity and equality in the context of financial services trade?  
 
Response  
Japan places h igh-priority on the realization of "a Society in which All Women Shine," where all 
women can fully demonstrate their individuality and abilities according to their own wishes. With 
this in mind, since the year of 2000, Japan has been formulating a five -year plan called the Basic 
Plan for Gender Equality. Japan is currently working to increase women's participation in all fields, 
including politics, the economy, and public administration, based on the Fifth Basic Plan for Gender 
Equality formulated in Decemb er 2020. In this way, Japan has been making continuous efforts to 
promote gender equality including by annually setting policy priorities for women's empowerment 
and gender equality.  
In the area of trade, during the period covered by this TPR review, the E conomic Partnership 
Agreement (EPA) between the United Kingdom and Japan, which entered into force in January 2021, 
stipulated in Chapter 21, " TRADE AND WOMEN'S ECONOMIC EMPOWERMENT," that the Parties 
recognise the importance of enhancing opportunities fo r women within their territories, including 
workers and business owners, to participate equitably in the domestic and global economy. Since its 
effective date, the Working Group on Trade and Women's Economic Empowerment has met twice.  
In the area of financ ial services, REGULATORY COOPERATION IN FINANCIAL SERVICES (Annex 8 -A 
of the EPA) designates that  The Parties recognise the importance of building a sustainable and 
inclusive economy consistent with the outcome document of the United Nations summit for the  
adoption of the post -2015 development agenda, entitled "Transforming our world: the 2030 Agenda 
for Sustainable Development" adopted by the General Assembly of the United Nations on 25 
September 2015, which includes gender equality and action to combat cl imate change'.  
 
4.4.1.3 Regulatory developments in insurance  
Page 119 (Para 4.108)  
The Report states that several amendments were made to Japan`s legislation in the field of 
insurance during the review period.  
 
Question  
20. Would Japan kindly elucidate the specifics of insurance against nuclear risks and inform about 
the requirements for insurers who ensure against nuclear risks, especially those relating to technical 
reserves (please, specify if there are any additional requirements beyond the  standard ones typical 
for all insurance types/insurance classes)?  
 
Response  
Under Japan's nuclear damage compensation system, the nuclear operator that caused the nuclear 
damage bears unlimited liability for the damage in principle, based on the Act on Co mpensation for 
Nuclear Damage.  
Under the provisions of the Act, nuclear operators are obliged to take measures to compensate for 
damages up to 120 billion yen by concluding contracts with the government for accidents mainly WT/TPR/M/438/Add.1  
 
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caused by earthquakes, eruptions , and tsunamis, and with private insurance companies for other 
general accidents.  
The contracts with private insurance companies are actually underwritten by a nuclear insurance 
pool formed by several insurance companies, which act as joint insurers.  
Non-life insurance companies are required to set aside general policy reserves and extraordinary 
contingency reserves for nuclear risks.  
The extraordinary contingency reserve is provided to cover possible losses in the event of an 
extraordinary disaster that ex ceeds the Group's normal assumptions and the Group is unable to 
make full payment of such losses policy reserve.  
Extraordinary contingency reserves must be set aside for marine, aviation, and fire insurance in 
addition to nuclear insurance. A fixed amount must be set aside for each business year for each 
insurance category, and in the event of extraordinary disaster losses as prescribed for each insurance 
category, the amount equivalent to such extraordinary disaster losses is to be written down.  
 
4.4.2 Tel ecommunication services  
Page  121 (Para 4.1 14)  
The Report mentions the programme for "Strategic Information and Communications R&D 
Promotion" that gives incentives for collaboration between ICT firms, universities, and local 
government research institutes with overall funding JPY 1.5 billion in 2018 and JPY 1.0 billion in 
2021.  
 
Question  
21. Would Japan, please, provide more information about the programme for "Strategic Information 
and Communications R&D Promotion" and results of its implementation?  
 
Respo nse 
The Strategic Information and Communications R&D Promotion Program (SCOPE) is a competitive 
fund in which ICT firms, universities, and local government research organizations, etc., are invited 
to submit novel R&D projects in the field of information a nd communications technology (ICT), and 
external experts evaluate their adoption.  
The intended program outcome is to promote the creation of new value in the future society, develop 
young ICT researchers, discover innovative technologies from small and med ium-sized companies, 
promote regional revitalization through the utilization of ICT, and acquire international standards.  
 
PART II: QUESTIONS REGARDING THE REPORT  BY JAPAN  (WT/TPR/G/438)  
6 JAPAN`S DOMESTIC POLICIES  
6.1 Current economic priorities  
Page 15 (Para 6.2)  
According to the Report, Japan set out the Grand Design and Action Plan for a New Form of Capitalism 
in June 2022.  
 
Question  
22. Could Japan kindly indicate the timeframe for implementation of this new Action Plan and 
elaborate on when and how t he results of such implementation will be evaluated?  
 
Response  
We formulated a process chart of the Action Plan simultaneously in last June and we will implement 
each policies following the chart. We are going to take various measures, so it is difficult t o explain 
the time frame comprehensively, but many of measures are going to be taken for about 5 or less 
years.  
It is also difficult to explain the evaluation method comprehensively because we aim to realise a 
New Form of Capitalism which is a economic sys tem where the market and the state work in 
cooperation for both of solving social problems and achieving economic growth. Each measures have 
their own goals for solving social problems as climate change, economic disparity, and growing urban 
problems due t o population concentration.  
 
6.2 Digital transformation  
Page 16 (Para 6.4)  
The Report states, that the digitalization of Japan is one of its top priorities, and with the aim to 
promote a digital society, Japan enacted three new laws in 2021, which are the Basic Act on the 
Formation of a Digital Society, the Act on the Establishment of the Digital Agency, and the Act on 
the arrangement of related acts for the formation of a digital society.  WT/TPR/M/438/Add.1  
 
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  Question  
23. Could Japan elaborate on the preliminary results of the  implementation of the new laws adopted 
in 2021?  
 
Response  
With the pillars of "Delivering Citizen -Centric Public Service," "Modernizing Digital Infrastructure for 
Inclusive Growth," and "Strengthening Digital Resilience," we steadily promoted public serv ice 
provision and infrastructure development supporting people's daily lives to achieve the digital society 
which we aim to create. The main achievements are below;  
 1.Delivering Citizen -Centric Public Service  
• Spreading the use of Individual Number Card  
• Improving Mynaportal  
• Providing the COVID -19 vaccination certificate app  
• Providing services and certification infrastructure for businesses  
• Online administrative services for government offices  
• Establishing the Cashless Act   
• Promoting standardiz ation of local government systems  
 2.Modernizing Digital Infrastructure for Inclusive Growth  
• Promoting the Special Commission on Digital Administrative Reform  
• Data strategy  
• Promoting medical care DX  
• Digitalizing the education sector  
• Developing a data infrastructure for children  
• Spreading & establishing the digital invoices  
• Promoting the Vision for a Digital Garden City Nation  
• Utilizing the digital reform co -creation platform  
• Implementing Digital Days  
 3.Achieving a Safe, Secur e, and Strong Digital Infrastructure  
• Developing government cloud   
• Government solutions services  
• Promoting the DFFT  
 
6.8 Climate change and environmental sustainability  
Page 20 (paragraphs 6.26, 6.28)  
The Report points out that Japan has accelerated s teps taken to achieve net -zero emissions to meet 
two ambitious goals: in October 2020, the Japanese Government declared its intention to achieve 
net-zero greenhouse gas (GHG) emissions by 2050; and, in April 2021 announced its new target to 
reduce its GHG emissions by 46% in fiscal year 2030 from its fiscal year 2013 levels and continue 
strenuous efforts in its challenge to meet the lofty goal of cutting its emissions by 50%. The Report 
also mentions that the Japanese Government will embody the vision for " Pro-Growth Carbon Pricing", 
which aims to maximize economic growth and GHG emissions reductions/absorption at the same 
time, and also consider raising funds through "GX Economy Transition Bonds".  
 
Question  
24. Could Japan elaborate more on the process of c reation of over 100 decarbonization leading areas 
and clarify the selection criteria?  
 
Response  
The Japanese government calls for proposals from local governments and selects "decarbonization 
leading areas" about twice a year. Selected areas will be suppor ted with grants and strive to achieve 
net-zero by FY2030.  
When making the selection, comprehensive evaluation will be made in terms of the realization of 
net-zero CO2 emissions from electricity consumption in the housing and business sectors, the 
amount of  renewable energy introduction, the range and scale of the area, the feasibility of the plan, 
and the potential to roll the effort out to other regions.  
 
25. Would Japan kindly give more information on the vision of the Government regarding "Pro -
Growth Car bon Pricing"?  
 
Response  
Japan has set a goal of reducing greenhouse gas emissions by 46% in 2030 and achieving carbon 
neutrality by 2050. In order to achieve both these international commitments and to strengthen WT/TPR/M/438/Add.1  
 
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industrial competitiveness and economic growth, we have formulated the ""Pro -Growth Carbon 
Pricing Concept"". Through upfront investment support by the government and the introduction of 
carbon pricing in the future, the government and private sector will work together to realize over 
150 trillion yen in GX investment ove r the next 10 years, and take other necessary actions.  
As for specific carbon pricing, emissions trading is scheduled to begin on a trial basis in FY2023, with 
full-scale operation starting in FY2026, and auctions to be introduced for power generation 
comp anies in FY2033 and beyond. In addition, a carbon surcharge will be introduced in FY2028.  
At the end of last year, the Japanese government announced its ""Basic Policy for the Realization of 
GX,"" which outlines policy issues and the direction of action to  resolve them, including the ""Growth -
Oriented Carbon Pricing Concept. After conducting public comments in January of this year, the 
Cabinet approved the policy on February 10, and submitted a bill for its concrete implementation to 
the ordinary Diet sessi on currently in session.  
  WT/TPR/M/438/Add.1  
 
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  24  NEW ZEALAND  
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/438)   
 
SECTION 3: TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.4 Tariffs  
3.1.4.1 MFN Applied Tariff  
WT/TPR/S/ 438, page 40  
 
Paragraph 3.22 of the Secretariat's report notes that "Japan's MFN applied tariff structure remains 
complex. With a total of 272 tariff rates, there are 136 different ad valorem rates, 75 different 
specific rates, 29 different alternate rates, and 24 different compound rates, as well as some other 
types of duties (4 differential duties and 4 sliding duties)."  
Questions  
• What steps has Japan taken to simplify its tariff structure?  
• What steps does Japan intend to take to simplify its tariff structure?   
 
Response  
Japan doesn't have such a plan at the moment. In Japan, the total percentage of duty -free rate and 
ad valorem rate is over 90% of all tariff lines. Some parts of other products are set in non -ad valorem 
rates after consideration of the individual domestic industry conditions for each items. Th erefore, we 
regard Japanese tariff regime as a simple structure.  
• What plans, or regular programmes, are in place to review applied tariff levels?  
 
Response  
Please see the following URL.  
https://www.customs.go.jp/english/c -answer_e/sonota/9702_e.htm . 
• What policies are in place that would allow Japan to increase or lower its applied tariffs in general 
or in specific circumstances?  
 
Response:  
For example, safeguard measures (Customs Tariff Act. Article9).  
 
3.3.3 Sanitary and Phytosanitary Requirements  
3.3.3.1 Sanitary and Phytosanitary Measures  
WT/TPR/S/438, page 65  
 
As referred to in Paragraph 3.122 of the Secretariat report, Box 3.1 (page 65) sets out the list of 
key agencies responsible for SPS measures.  
 
Question  
• In September 2022 Prime Minister Ki shida announced a proposal to shift some food safety 
functions from the Ministry of Health Labour and Welfare (MHLW) to the Consumer Affairs 
Agency (CAA). To date there have been no details on which or how these functions will be 
transitioned to the new ag ency. We would welcome information on the rationale for the proposal, 
and assurance that when the imported food functions currently carried out by MHLW are moved 
to CAA there will be no major impact on international trade. As a global trader in food produc ts 
New Zealand extends an offer to work with Japan before and during the transition of the food 
safety functions into CAA.  
 
Response  
1. Based on the Food Safety Basic Act enacted in 2003, Japan's food safety administration takes 
necessary measures to ensur e food safety based on scientific knowledge, while giving due 
consideration to international trends and public opinions, to prevent adverse effects on people's 
health (Article 5 of the Food Safety Basic Act).  
2. The Consumer Affairs Agency has unified juri sdiction over the food labeling system, and the Act 
for Establishment of the Consumer Affairs Agency clearly states that it functions as a control tower 
for food safety administration within the government. These are being carried out as a mission of 
current Consumer Affairs Agency.  WT/TPR/M/438/Add.1  
 
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3. As part of efforts to strengthen the ability of the Ministry of Health, Labour and Welfare  (MHLW) 
to respond to infectious diseases, the transfer of the jurisdiction on the administration of food safety 
standards from the MHL W to the Consumer Affairs Agency in Fiscal Year 2024 was announced on 
2 September 2022.  
4. To ensure necessary measures are taken based on scientific knowledge according to the principles 
of the Food Safety Basic Act, even after the transfer of the admini stration of food safety standards 
to the Consumer Affairs Agency, we are considering the development of related laws and 
organizational structure, including the establishment of a Council (an expert group) in the Consumer 
Affairs Agency.  
5. In addition, a dministration of food safety surveillance, including safety measures on imported 
foods, will continue to stay in the MHLW as it is now.  
 
SECTION 4: TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1.1 Agricultural Policy  
WT/TPR/S/438, page 100  
 
Paragraph 4.5 of the Secretariat report notes in December 2020, the Strategy to Realize Export 
Expansion of Agricultural, Forestry, and Fishery Products and Food was adopted; and was revised in  
December 2021 and June 2022.  
 
Questions  
• How has Japan carried this strategy out?   
• Can Japan provide an update on how this strategy is progressing?   
Response  
The Strategy sets out directions of specific measures such as to strengthen organization and activity 
of Japan Food Export Platfo rms, and Export Promotion Organization that engage in export as Japan 
as a whole. Based on the strategy, the government of Japan has been conducting export promotions 
of Priority Export Products and strategic negotiations with importing countries and regio ns on their 
import measures. The Priority Export Products are highly evaluated overseas, have a possibility to 
expand their export, and for which export promotion activities by all related persons are effective, 
as set forth in the Strategy.  
 
4.1.1.3 Trade  Policies and Border Measures  
WT/TPR/S/438, page 101, paragraph 4.11  
 
Paragraph 4.11 notes that the simple average tariff on agricultural products has increased slightly 
to 18.0% in FY2022 from 17.9% in FY2016, and that tariffs on agricultural products are  higher than 
tariffs on non -agricultural products, with an average of 18% for the former and 3.4% for the latter. 
Tariffs also vary considerably between agricultural products with a maximum tariff of 428.8%.  
Questions  
• What steps has Japan taken to simplify  and adjust its agriculture tariff structure, given the 
complex agricultural tariff system and increased average agricultural tariff?  
• What steps does Japan intend to take to simplify and adjust its agriculture tariff structure?   
• What plans, or regular pro grammes, are in place to review applied agriculture tariff levels?  
 
Response  
Japan's tariff structure for agricultural products is fully transparent and predictable, being set out in 
Japan's Tariff Schedule, which is publicly available. No changes have been made to MFN rates of 
agricultural products during the review period, Japan does not have any intention to change its tariff 
structure.  
 
WT/TPR/S/438, page 101, paragraph 4.14  
Paragraph 4.14, in section 4.1.1.3 states "according to its most recent  notification on imports under 
tariff quotas (for FY2020/21) to the WTO Committee on Agriculture, Japan applies 20 tariff quotas 
(TQs) covering 112 tariff lines at the HS six -digit level. Fill rates varied considerably from one quota 
to another, ranging fr om 6.4% to 100% (Table A4.2)."  WT/TPR/M/438/Add.1  
 
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  Question  
• New Zealand notes a number of Japan's quotas are considerably underfilled at present across a 
range of products. How does Japan plan to ensure its trade facilitation measures enable higher 
percentage fill rates; and what is Japan's position on whether a first -come first -served TRQ 
administration system; or an automatic, unconditional license on demand system within the 
tariff quota would achieve higher percentage fill rates?  
Response  
Japan has been working on the simp lification and digitalization of TRQ application process to make 
it more convenient to importers, which would also promote further utilization of TRQ. Japan does 
not have a clear answer to the second question since Japan does not have any experiences in 
applying a first -come first -served at the border system nor an automatic, unconditional license on 
demand system.  
 
4.1.1.4 Domestic Support  
4.1.1.4.1 General support programmes  
WT/TPR/S/438, page 102, paragraph 4.20  
 
Section 4.1.1.4, paragraph 4.20 states "D uring the review period, the Government launched a 
Strategy for Sustainable Food System, MeaDRI (Measures for Achievement of Decarbonization and 
Resilience with Innovation) in May 2021, and the Act on Sustainable Food System, MeaDRI entered 
into force in J uly 2022. Under the Act, Japan aims to transform its agricultural production system to 
respond to climate change and decreasing biological diversity by reducing environmental loads 
including through the reduced use of fossil fuels and chemical pesticide/fe rtilizer as well as through 
the use of smart technology."  
New Zealand notes that as part of Japan's Measures for Achievement of Decarbonization and 
Resilience with Innovation (MeaDRI), Japan intends to establish electrification and hydrogeneration 
of techn ologies for agricultural machinery and fishing vessels by 2040.  
Questions  
• How does government support for achieving this and other MeaDRI targets align with the 
recently agreed Kunming -Montreal Global Biodiversity Targets including the 2030 global 
commitme nt to phase out or reform subsidies that harm biodiversity by at least $500 billion per 
year?  
• Under the MeaDRI, Japan has also committed to reductions in chemical pesticide use (50% by 
2050), chemical fertilizer use (30% by 2050), and expanding organic fa rming areas to 25% of 
national arable land by 2050. Noting that different geographic, climatic, and soil conditions 
require tailored approaches to food production, does Japan anticipate any impact to imported 
agri-food goods produced in conditions that req uire differentiated use of land and agricultural 
inputs?  
 
Response  
Japan considers that the targets mentioned in the Kunming -Montreal Global Biodiversity Framework 
are cross -sectoral ones and will not be achieved only by the efforts in the agricultural sec tor.  
With this recognition, Japan is promoting to realize the Strategy for Sustainable Food System, 
MeaDRI  (Measures for Achievement of Decarbonization and Resilience with Innovation), including 
through a new legislation enacted in 2022 and enhancing existing demonstrational projects on the 
relevant technologies.  
 
4.1.1.4.3 OECD Indicators  
WT/TPR/S/438, page 105, paragraph 4.31  
 
Section 4.1.1.4.3, paragraph 4.31 states "According to the OECD, Japan gradually reduced its 
support to agriculture during the past 10 years; however, the level of support plateaued more 
recently. In terms of a share  of gross farm receipts, the PSE remains more than twice the OECD 
average."  
Paragraph 4.31 of the Secretariat report also notes "In terms of a share of gross farm receipts, the 
Producer Support Estimate remains more than twice the OECD average. … Due mainl y to border 
measures, market price support remains the main element of producer support for rice, pork, and 
milk. As a result, average producer prices remain higher than world reference prices, by around 
60%."  WT/TPR/M/438/Add.1  
 
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Questions  
• Would Japan be able to offer additio nal insight into the reasons for the plateau in agricultural 
support after the past 10 years of consistent reduction? Additionally, can Japan expand on 
whether this trend is expected to continue?  
Response  
While the subsidy part of Japanese PSE has been sta ble, the part of market price support (MPS) 
would fluctuate reflecting the domestic and the world market prices. The latest Japanese PSE, which 
the MPS part dominates, has dropped simply because global food prices increased. Relatively high 
Japanese PSE wo uld be attributed to the fact that MPS includes a price difference derived from 
differences in product quality and production conditions between the border.  
 
• Please explain what structural reforms Japan is planning to undertake over the next 5 years 
intend ed to reduce the trade -distorting forms of support currently provided to Japan's agriculture 
sector?  
Response  
Based on the result of the Uruguay Round negotiations, Japan revised its market price support 
policies and introduced direct payments and has upg raded the policies. Facing globally shared 
challenges such as food insecurity and environmental problems, Japan will continue to consider 
structural reform to realize resilient and sustainable agriculture.  
4.1.2 Fisheries  
4.1.2.4 Border and domestic suppor t measures  
WT/TPR/S/438, page 109  
 
As referred to in Paragraph 4.59 of the Secretariat report, Table A4.8 (page 146) sets out the list of 
fisheries subsidies notified by Japan in June 2021 for FY2018 and FY2019.  
Question  
• One significant international initi ative in the past year has been work in the World Trade 
Organisation to develop a meaningful agreement to prohibit harmful fish subsidies, including 
those that contribute to overfishing and support IUU fishing. New  Zealand notes Japan is moving 
forward wit h acceptance of the agreement, and would welcome an update from Japan on its 
progress towards depositing its instrument of acceptance of the World Trade Organisation's 
Agreement on Fisheries Subsidies.  
Response  
Japan is currently working hard for its domes tic process for the early acceptance of the Agreement 
and once the process is completed, Japan will deposit its instrument of acceptance with the WTO.  
 
4.2 Mining and Energy  
4.2.2 Energy  
WT/TPR/S/438, section 4.2.2 Energy, page 109, paragraph 4.63  
 
The Secretariat's report, at paragraph 4.63, notes the objectives of Japan's sixth Strategic Energy 
Plan (2021) include forming energy policy in support of Japan's "2050 Carbon Neutral" policy and 
greenhouse gas emission reduction targets (to cut greenhouse ga s emissions by 50%), as well as 
securing a stable energy supply and reducing energy costs. Later, at paragraph 4.79, the 
Secretariat's report outlines that Japan introduced an emergency subsidy in 2022 to mitigate the 
impact of a sharp increase in oil pric e. 
Question  
• In light of Japan's temporary subsidy programme, has Japan considered using the APEC 
Template for Voluntary Self -Identification of Inefficient Fossil Fuel Subsidy Measures as a 
transparency mechanism or the G20 peer review process for reform of fossil fuel subsidies as a 
mechanism for both reviewing its fossil fuel policies and sharing lessons learned from recent 
challenges? New  Zealand also encourages Japan to consider the work being advanced in the 
World Trade Organization on reform o f inefficient and environmentally harmful fossil fuel 
subsidies, including a 47 -member Ministerial Statement seeking concrete action on this issue.  
Response  
Japan recognizes the importance of the G20 and APEC peer review process for reform of fossil fuel 
subsidies and welcomes the outcome and the lessons learned from the past reviews. As we have no 
inefficient fossil fuel subsidies that encourages wasteful consumption (IFFS) as well as being under WT/TPR/M/438/Add.1  
 
- 193 - 
 
  the budgetary and human resource constraints, our understand ing is that Japan is not among the 
priority countries for the review  
 
WT/TPR/S/438, section 4.2.2 Energy, page 109, paragraph 4.63  
The Secretariat's report, at paragraph 4.63, notes the objectives of Japan's sixth Strategic Energy 
Plan (2021) include formi ng energy policy in support of Japan's "2050 Carbon Neutral" policy and 
greenhouse gas emission reduction targets (to cut greenhouse gas emissions by 50%), as well as 
aiming to… promote climate change countermeasures, confirming the basic principles of Japa n's 
energy policy (energy security, economic efficiency, environment sustainability, and safety (3E+S)).  
Questions  
• New Zealand commends Japan for its ambitious commitment to reduce greenhouse gas 
emissions. Given the principles of energy security, sustaina bility and safety, can Japan provide 
an update on its efforts to develop geothermal energy sources, which offer energy 
independence, and environmental sustainability and safety to the public if developed using the 
right expertise. In particular, what activ ities is the Government undertaking to inform the public 
about the sustainability and safety of developing geothermal reserves?  
Response  
METI（Ministry of Economy, Trade and Industry ） and JOGMEC （Japan Organization for Metals and 
Energy Security ） holds the  geothermal symposium to promote the geothermal energy in Japan.  
In addition, METI supports the organization of the study meeting to promote resident's 
understanding of geothermal energy in areas where construction of the geothermal power plant is 
planned.  
 
• Can the Government of Japan provide an update on efforts to develop offshore wind resources 
for electricity generation, in particular, its regulatory framework, and the process followed to 
select developers to lead offshore wind projects?  
Response  
We frequently exchange views on offshore wind policy and institutions if there is a request for an 
exchange of views. We can provide Japanese insights on offshore wind policy.  
 
WT/TPR/S/438, section 4.2.2 Energy, page 110, paragraph 4.66 and 4.67 
The Secretariat's report, at paragraphs 4.66 and 4.67, notes the 2022 energy -related legislation 
amendment which clarifies that relevant legislation includes hydrogen and ammonia as sources of 
non-fossil energies, and broadened the mandate of JOGMEC t o engage in projects related to 
hydrogen. It also states that Japan will now on requiring certain businesses to report on transitioning 
from fossil to non -fossil energies.  
 Questions  
• New Zealand commends Japan on requiring certain businesses to report on t ransitioning from 
fossil to non -fossil energies. Regarding the inclusion in legislation of hydrogen as a non -fossil 
energy, and the Government's stated 2050 Zero Carbon goals, what actions is the Japanese 
Government taking to promote the use of low -carbon (non-fossil fuel produced "green") 
hydrogen?  
Response  
In the Green Growth Strategy, the government of Japan has set a target of introducing up to 3 
million tons of hydrogen by 2030, of which at least 420,000 tons ought to be supplied as clean 
hydrogen.  
In order to achieve this goal, the government supports the research , development and 
demonstration (RD&D) required to expand the hydrogen production from renewable energy sources 
and the utilization and application of the produced hydrogen.  
Through these effo rts, we continue to promote the use of clean hydrogen.  
 WT/TPR/M/438/Add.1  
 
- 194 - 
 
• Related to this, can the Japanese Government provide an update on any efforts to encourage 
low carbon hydrogen production as contemplated by New Zealand's APEC project (co -sponsored 
by Japan) which so ught to encourage a discussion on the merits of developing a Low Carbon 
Hydrogen International Standard, and the role APEC could play to support the alignment to 
such a standard across countries?  
Response  
Japan is willing to cooperate with New Zealand and  other relevant countries and organizations, and 
Japan intends to take active participation and contribution to developing international standards and 
certification for promoting international low -emission hydrogen trade through APEC, IPHE and other 
commun ities. 
 
WT/TPR/S/438, section 4.2.2 Energy, page 111, paragraph 4.73  
The Secretariat's report, at paragraph 4.73, notes the Government will steadily promote the fade -
out of inefficient coal -fired power by reducing the amounts that inefficient coal -fired po wer 
generation operations receive from the capacity market. It also states that the Government intends 
to promote the development of technologies such as Integrated Coal Gasification Combined Cycle 
and Integrated Coal Gasification Fuel Cell Combined Cycle.  
 Question  
• How does Japan intend to rationalise its ongoing investment in coal powered plants and coal 
burning technology given its stated 2050 Carbon Net Zero goals; and the target of OECD 
countries to phase out of coal by 2030, or to at le ast halt the permitting and construction 
pipeline?.  
Response  
As stated in the "Basic Energy Plan," coal -fired thermal power produces large amounts of carbon 
dioxide emissions, so the basic policy is to reduce the ratio of coal -fired thermal power generation 
as much as possible while ensuring a stable supply of electricity. On the other hand, if we were to 
take immediate and drastic measures to curtail coal -fired power generation at a stage when the 
necessary supply capacity is not necessarily fully  secured, it could hinder the stable supply of 
electricity. In light of this situation, toward 2030, while utilizing highly efficient coal -fired power 
generation for the time being, the fading out of inefficient coal -fired power generation should be 
steadi ly promoted. Furthermore, toward 2050, we will continue to promote efforts to replace them 
with decarbonized thermal power generation by utilizing hydrogen, ammonia, and CCUS.  
With regard to investment in coal combustion technology, next -generation power g eneration 
technologies such as integrated coal gasification combined cycle (IGCC) and integrated coal 
gasification fuel cell combined cycle (IGFC), which combust coal by gasifying it, are important to 
further improve the efficiency of coal -fired thermal po wer generation, and we will promote R&D of 
these technologies. In addition, with a view to achieving zero -emissions thermal power generation, 
we will promote the demonstration of ammonia co -firing in coal -fired power plants and, through the 
Green Innovatio n Fund, develop technologies that will enable (1) higher co -firing rates and dedicated 
firing and (2) more efficient manufacturing technologies by 2030.  
 
REPORT BY JAPAN (WT/TPR/G/438)  
 
SECTION 3: MULTILATERAL INITIATIVES  
3.1 WTO Rule Setting  
WT/TPR/G/43 8, page 6  
 
In paragraph 3.4 of its report, Japan writes that it is a participant in the WTO Joint Initiative on 
Services Domestic Regulation.  
 
Japan also writes in paragraph 3.4 that as a co -convenor for the WTO Joint Initiative on E -commerce, 
it is worki ng to improve and enhance the business climate and trade environment worldwide. In 
paragraph 4.7, Japan also noted that the Japan -United States Digital Trade Agreement entered into 
force on 1 January 2020.  
 
Questions  
• Since the report's writing, negotiation s on the Joint Initiative on Domestic Regulation have 
concluded, and members including Japan have amended their WTO schedules through 
notification to the WTO. Paragraph 9 of the Reference Paper on Services Domestic Regulation 
allows members to exclude the discipline set out in paragraph 22 (d) of Section II and paragraph WT/TPR/M/438/Add.1  
 
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  19 (d) of Section III – provisions that ensure that measures relating to the authorization for the 
supply of a service do not discriminate between men and women. Can Japan share with other 
Members the background for its position on implementing paragraph 22 (d) of Section II and 
paragraph 19 (d) of Section III?  
 
Response  
Japan has chosen to apply, rather than exclude, paragraph 22 (d) of Section II and paragraph 19 
(d) of Section III of the  Reference Paper on Services Domestic Regulation which provide the 
obligation to ensure that measures relating to the authorization for the supply of services do not 
discriminate between men and women. In this regard, Paragraph 1 of Article 14 of the Const itution 
of Japan provides that "All of the people are equal under the law and there shall be no discrimination 
in political, economic or social relations because of race, creed, sex, social status or family origin."  
 
• Could Japan please share any reflections on its experiences in implementing the Japan -United 
States Digital Trade Agreement and other relevant FTA provisions on digital trade towards 
discussions at the WTO Joint Statement Initiative on Electronic Commerce or the WTO 
Moratorium on Cust oms Duties more broadly?  
 
Response  
Japan had concluded the plurilateral agreements such as the Japan -United States Digital Trade 
Agreement, Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) and 
Regional Comprehensive Economic Pa rtnership (RCEP) Agreement. These agreements have high 
standards or ensure inclusiveness for developing countries. We believe that our experiences in these 
agreements would be useful for the discussions of WTO E ーcommerce negotiations and the 
moratorium on imposing tariffs on electronic transmissions.  
 
SECTION 6: JAPAN'S DOMESTIC POLICIES  
6.2 Digital transformation  
WT/TPR/G/438, page 16, paragraph 6.6  
Paragraph 6.6 of Japan's Report notes that the Act on the Establishment of the Digital Agency has 
power to make recommendations to other ministries and agencies  
 
Question  
• Electronic certification has many benefits over paper certificates including direct government to 
government communication, greater security and data integrity (fraud prevention), more 
efficient resolution of problems, quicker clearance of consignments, and greater ability to pre -
process and analyse data. New Zealand has proposed initiati ng an SPS electronic certification 
project with MAFF but it is not able progress SPS electronic certification at this time because 
there is no funding available for such a project. We would be interested to understand if this Act 
might be a source of fundi ng to allow MAFF to progress SPS electronic certification and if not 
does Japan have a long term plan for implementing SPS electronic certification.  
 
Response  
For phytosanitary area, MAFF is considering the introduction of electronic certification using th e 
ePhyto system developed under the IPPC.  
 
6.8 - Climate change and environmental sustainability  
WT/TPR/G/438, page 20, paragraph 6.26  
In section 6.8, paragraph 6.26, the government report states that "Japan has accelerated steps 
taken to achieve net -zero emissions to meet two ambitious goals: in October 2020, the Japanese 
Government declared its intention to achieve net -zero greenhouse gas (GHG) emissions by 2050"  
 
Question  
• New Zealand notes that Japan's Green Growth Strategy is a part of Japan's wider plan to reduce 
emissions. New Zealand would welcome further information on Japan's plans specifically in the 
agriculture sector, and how Japan will meet its target of Zero CO2 emissions in agriculture, 
fisheries and forestry by 2050, including any impacts on trade in food and fibre products. What 
measures, if any, is Japan taking to address other greenhouse gas emissions from agriculture 
such as methane (CH4) and nitrous oxide ( N2O)?  
 WT/TPR/M/438/Add.1  
 
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Response  
Japan considers it is essential to promote effective implementation and utilization of the existing 
technologies including energy -saving ones, as well as further development of relevant technological 
innovation.  
Also, Japan is now promotin g the extension of mid -season drainage in paddy field and developing 
feeds that can reduce greenhouse gas emissions such as methane (CH4) and nitrous oxide (N2O) 
from cattle burps and livestock waste.  
 
WT/TPR/G/438, page 20, paragraph 6.28  
Japan's report, at paragraph 6.28, states the Government's plans for "Pro -Growth Carbon Pricing".  
Question  
• Can Japan elaborate on the role of carbon pricing in meeting its NDC, particularly as it relates 
to the above -mentioned initiative?  
Response  
"Pro-Growth Carbon Pricing" is formulated as one of the initiatives for the purpose of achieving 
carbon neutrality by 2050 as well as the NDC in Japan. While specific design of the policy package 
will be further elaborated in the future, Japan will strive to achi eve its NDC not only through the 
carbon pricing instruments such as emissions trading system and carbon levy, but also through a 
combination of various types of support measures.  
  WT/TPR/M/438/Add.1  
 
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  25  HONG KONG, CHINA  
Trade Policies and Practices by Measure  
 
Copyright  
(WT/TPR/S/438: Pages 94 -95, Para. 3.217)  
 
The Government has attempted to reduce the accessibility of pirate sites by countering "leech", also 
known as "index" sites, which provide links to infringing content but do not host it themselves. 
Amendm ents in 2020 to the Copyright Act criminalised the operation of index sites, as well as the 
provision of computer programs/apps with similar functions. Violations are punishable by up to five 
years in prison and/or a fine of JPY 5 million, upon the complai nt of a right holder. Posting URLs or 
links to pirated content on an index site or app is also now considered copyright infringement, 
punishable by up to three years in prison and/or a fine of JPY 3 million, upon the complaint of a right 
holder. The Govern ment has indicated that these amended provisions of the Copyright Act could be 
used to combat illicit streaming devices. Platform service providers, such as YouTube or Google, are 
not liable except in malicious circumstances where requests to remove infrin ging links have been 
unjustifiably ignored for an extended period of time.  
 
Question  
Please explain and provide more detailed information on how the amended provisions of the 
Copyright Act could be used to combat illicit streaming devices (ISDs) in Japan ( such as ISDs like 
"UNBLOCK TECH" mentioned in Japan's responses in the "Report on Results of Survey Questionnaire 
on Domestic Treatment of Illicit Streaming Devices by APEC Economies" issued by USPTO (2021), 
p. 82 at:  
https://www.uspto.gov/sites/default/files/documents/APEC -DomesticTreatmentofISDs.pdf  
 
Response  
As noted in paragraph 3.217, the act of managing a so -called index site with which the link 
information or the like leading to infringing contents is consolidated and the users are guided to 
infringing contents, and the act of providing a so -called index a pp with the same functionality as 
that site are regarded as illegal and included in the scope of criminal punishment in amendments in 
2020 to the Copyright Act. Therefore, these provisions could be considered applicable to illicit 
streaming devices, etc., on which a index app is installed.  
 
If the servers of "index" sites or sites providing computer programs/apps leading the public to 
infringing contents are located outside Japan, could the amended provisions of the Copyright Act be 
enforced or relied on?  
 
Response  
We cannot give a general answer to this question, as it will be determined in light of the specific 
case. 
 
How many civil actions and criminal prosecutions against copyright infringement involving ISDs have 
been commenced and successful under the amended provisions of the Copyright Act since those 
provisions came into force on 1 October 2020? Please also share some successful case studies.  
 
Response  
The number of charges brought for violations of copyright laws in Japan is 151 from October 2020 
to December 2021. We refrain from responding about individual cases.  
 
Trade Policies by Sector  
 
Fisheries  
(WT/TPR/S/438: Pages 107 -108, Paras. 4.48 -4.51; Page 146, Table A4.8)  
(WT/TPR/G/438: Page 7, Para. 3.5)  
 
Japan has been taking proactive measures in promoting sustainable fisheries and fisheries 
management, utilising measures to discourage illegal, unreported and unregulated fishing, and has 
also been actively participating in the WTO Fisheries Subsidies Negotiations. According to the 
repor ts, Japan is in the ratification process for the WTO Agreement on Fisheries Subsidies.  
 WT/TPR/M/438/Add.1  
 
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Question  
What is Japan's target timeframe to implement and accept the Agreement?  
 
Response  
Japan is currently working hard for its domestic process for the early accept ance of the Agreement 
and once the process is completed, Japan will deposit its instrument of acceptance with the WTO.  
 
Insurance Services  
(WT/TPR/S/438, Page 116, Box 4.3)  
 
Number of insurance companies  
2018: 93 (life: 41 (of which branches of foreign in surance companies, 1); non -life: 52 (of which 
branches of foreign insurance companies, 22))  
2021: 95 (life: 42 (of which branches of foreign insurance companies, 1); non -life: 53 (of which 
branches of foreign insurance companies, 20))  
 
Question  
Foreign participation in Life Insurance Services is minimal, i.e. one branch of foreign insurance 
company out of 42 life insurance companies in 2021. Is there any measure or additional procedure 
specific to foreign insurance companies which may possibly de ter their participation in the market?  
 
Response  
There are no foreign insurer -specific measures or additional procedures that may prevent the foreign 
insurer in question from entering the market.  
As of the end of 2022, there were 0 life insurance companies  and 21 non -life insurance companies 
conducting insurance business in Japan while remaining headquartered overseas.  
 
Financial Services  
(WT/TPR/S/438, Page 117, Para. 4.99)  
 
Japan's legislation on foreign investment also applies to the financial services sector (Section 2.4 as 
extracted below). As a consequence, foreign investors in Japan's financial services sector are also 
subject to the newly tightened screening and notification requirements. However, exemptions may 
apply when foreign financial institut ions satisfy certain requirements, namely: (i) the foreign investor 
and closely related persons will not serve on the board of the target company as directors or audit 
and supervisory board members; (ii) the foreign investor will not make proposals at shar eholders' 
meetings, whether directly or through third parties, to dispose of material businesses in designated 
industries; and (iii) the foreign investor will not access sensitive confidential technologies that are 
related to the target company's designate d business. Also, foreign investors may benefit from a 
registration moratorium, of up to five years, if they are registered as investment operators with a 
foreign authority, with a proven track record in this country. On 22 November 2021, an entry system 
with simplified procedures was established for offshore fund managers with a proven track record in 
specified foreign jurisdictions and for managers with qualified overseas clients.  
 
(WT/TPR/S/438, Pages 33 -34, Section 2.4, Para. 2.28)  
 
Under the amendment, a foreign investor seeking a 1% share in businesses with importance to 
national security, public safety, infrastructure, or Japan's economy is required to undergo a prior 
notification and approval process. The previous version of the Foreign Exc hange and Foreign Trade 
Act (FEFTA) required such prior notification and approval only if foreign investors sought a 10% 
share in a company. Implementing regulations on this amendment were adopted in May 2020; they 
entered into force in June 2020. The auth orities indicate that 2,171 requests were submitted in 2020 
and 2,859 in 2021, and that none were denied.  
 
Question  
How does Japan define businesses with importance to national security, public safety, infrastructure, 
or Japan's economy for the purpose of foreign investor prior notification? Is there any objective 
criterion? Is there an exhaustive list of such businesses in place?  
 
Response  
Designated sectors are to be determined based on a comprehensive assessment of the technical 
information related to each industry, past notified cases, the possible impact on people's lives in the WT/TPR/M/438/Add.1  
 
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  event of an emergency, as well as the circumstances at the time. In addition, some designated 
sectors are those that Japan has reserved for liberalization pursuant to Article 2 -b of the Code of 
Liberalization of Capital Movements of the Organization for Economic Cooperation and Development. 
For the lists of design ated sectors, please follow the link provided below. 
https://www.mof.go.jp/english/policy/international_policy/fdi/related -laws-and-regulations. html 
 
As regards the entry system with simplified procedures for offshore fund managers with a proven 
track record in specified foreign jurisdictions and for managers with qualified overseas clients, what 
are the specified foreign jurisdictions and qualifi ed overseas clients? Japan did not schedule MFN 
exemption in Financial Services, how does it go along with Japan's GATS commitments?  
 
Response  
Please refer to the web page as "Specially Permitted Business for Foreign Investors, etc. / Specially 
Permitted B usiness during Transition Period" by using the link below.  
https://www.fsa.go.jp/en/policy/marketentry/guidebook/04.html  
Only eight countries and regions (U.S., U.K., Australia,  Singapore, Switzerland, Germany, France, 
and Hong Kong, China ) are listed as countries and regions subject to the Specially Permitted 
Business during Transition Period.  
As the Financial Services Agency (FSA), the financial regulatory and supervisory authority, has 
judged that the relevant laws and regulations and the status of enforcement in these countries and 
regions are equivalent to those in Japan in terms of effectiveness in addition to the fact that they 
have the same type of registr ation requirements for engaging in invest management business as 
those under Japanese laws (including permission and other administrative dispositions related to 
registration).  
The new Specially Permitted Business was introduced on a temporary basis until 21 November 2026 
and is permitted for a maximum of five years from the date of notification (If a business operator 
wishes to continue its business after five years pass, it is required to make registration or other 
notification).  
Therefore, this is not a measure to arbitrarily grant preferential treatment only to these countries 
and regions, and we believe that such treatment does not conflict with the most -favoured -nation 
treatment under Article II Paragraph 1 of the WTO GATS (General Agreement on Trade i n Services).  
 
Maritime Transport  
(WT/TPR/S/438, Page 121, Para. 4.119)  
 
Japan extended the application of deduced rate of registration and licence tax (from 0.4% to 0.35%) 
until the end of FY2023, with a view to increasing Japanese -flagged overseas vessels . In 2021, a 
special property taxation measure for Japanese -flagged overseas vessels was extended until the end 
of FY2023. This measure reduces assessed value for property tax to 1/18 of the original value. The 
additional depreciation applicable to Japanes e-flagged vessels fulfilling certain conditions, notably of 
environmental and high -technology natures, was also extended for two years until the end of 
FY2022.  
 
Question  
Noting Japan 's extension of a number of tax -related benefits for Japanese -flagged over seas vessels, 
are there any plans for further extension of these measures?  
 
Response  
As for tax incentives for Japanese -flag vessels, the regime of tonnage tax is to be extended for five 
years from FY2023, and the regime of special depreciation is to be extended for three years.  
In addition, the deduced measures for the registration and licence tax and the property tax will be 
applied until the end of fiscal year 2023, and the extension of these measures is not decided at this 
time. 
 
(WT/TPR/S/438, Page 122, Para. 4.125)  
 
In July 2022, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced the 
Action Plan to address labour shortages in ports and harbour transportation businesses. The MLIT's 
recent survey shows that more than 50% of th e port and harbour operators that answered the 
survey in Japan face labour shortages, and that 40% of them have already seen its negative impact 
on their operations. The Action Plan calls for, inter alia, the enhancement of labour condition and 
promotion o f fair transactions and business practices.  WT/TPR/M/438/Add.1  
 
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Question  
In view of the challenges posed by an ageing and declining population, such as the critical labour 
shortages in ports and harbour transportation businesses, has Japan considered increasing the 
number of foreign port workers permitted to work in Japan and relaxing the relevant requirements? 
Are there any measures or plans to attract foreign workers in this sector?  
 
Response  
Japan has not considered plans to increase the number of foreign port wor kers in Japan and relax 
the relevant requirements, and there are not any measures to or plans to attract foreign workers in 
the port transport business.  
  WT/TPR/M/438/Add.1  
 
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  26  BRUNEI DARUSSALAM  
GOVERNMENT REPORT  
 
Page 5 – 6  
 
2. TRADE AND INVESTMENT POLICY  
2.2 Investment Policy  
2.2.1 Foreign Direct Investment  
 
2.10. The Japanese Government also works on the enhanced promotion of inward FDI along with 
the "Main Policy Agenda for Promoting Foreign Direct Investment in Japan" adopted in April 2022 at 
the Working Gr oup for Creating Medium and Long -term Strategy to Promote Foreign Direct 
Investment in Japan. The Agenda prioritizes strategic initiatives based on the Strategy ("Strategy 
for Promoting Foreign Direct Investment in Japan") and upholds three pillars: (i) St rengthening" 
investment in human capital" through inward FDI; (ii) Promotion of DX, GX, and start -ups through 
inward FDI; (iii) Improving the living environment of foreign nationals to promote FDI in Japan.  
 
Question  
Could Japan share more details on its s trategic initiatives to improve the living environment of 
foreign nationals to promote FDI in Japan.  
 
Response  
As for details on its strategic initiatives, please refer to English -translated version of "Main Policy 
Agenda for Promoting Foreign Direct Inves tment in Japan" from the following link.  
http://www.invest -japan.go.jp/documents/pdf/jutenjikou_en.pdf  
 
Page 19 – 20  
 
6. JAPAN'S DOMESTIC POLICY  
6.7 Labour Market Reform and Wom en's Economic Participation  
 
6.25. The gender wage gap in Japan has been narrowing from the long -term perspective, however, 
it still remains large compared to other advanced economies. To further narrow this gap, the 
Japanese Government requires employers to formulate an action plan, which needs to stipulate its 
(i) specific planned period; (ii) numerical targets; (iii) targeted initiatives and efforts; and the (iv) 
timing of implementation. Those items need to be decided after assessing the curre nt situation and 
investigating their challenges in terms of (a) the percentage of female workers among all employed 
workers; (b) the difference in the average length of service between men and women; (c) the 
average overtime hours and other working hours i ndicators; and (d) the percentage of female 
workers taking management positions. From April 2022, the scope of the obligation to formulate the 
action plan is expanded from employers with 301 or more regular employees to those with 101 or 
more regular emplo yees. In addition, from 8 July 2022, employers with 301 or more regular 
employees are required to identify and disclose their gender wage gaps.  
 
Question  
Is the action plan to narrow the gender wage gap envisaged to be the same across the county or 
subject  to the circumstances by the respective employers?  
 
Does the Japanese Government have tangible targets/goals to address the gender wage gap?  
 
Response  
The action plan based on the law means that it requires each company to assess its own state of the 
women 's activity , identify its own challenges, and formulate the gender action plans based on the 
analysis.  
We don't set the tangible goals about the gender wage gap itself, but concerning the main factor of 
the gender wage gap in Japan is the ratio of female m anagers, we are making efforts, according to 
the Basic Plan for Gender Equality, so that the percentage of the women in leadership positions 
reach 30% as soon as possible in the 2020s.  
 WT/TPR/M/438/Add.1  
 
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SECRETARIAT REPORT (WT/TPR/S/438)  
 
Page 25  
2 TRADE AND INVESTMENT REGIMES  
2.1 General Framework  
 
2.2. Japan's overall economic policy agenda is centred on sustainable and inclusive growth. Policy 
objectives remain in line with the overall strategy of combined fiscal expansion, monetary easing, 
and structural r eforms, but with a stronger emphasis on income distribution under the current 
administration. To this end, an expert panel – the Council for New Form of Capitalism Realization – 
was established to develop specific policy proposals. The broader policies to raise economic growth 
include the promotion of digital transformation and green investment, support for start -ups, regional 
revitalization through digitalization, and enhancement of economic security.  
 
Question  
Can Japan further expand on what type of supp ort it provides to start -ups. 
 
Response  
Japan has promoted a holistic approach in order to create a startup ecosystem in Japan, by 
accelerating startups and by promoting open innovation by existing companies.  
In Startup Development Five -year Plan 
(https://www.cas.go.jp/jp/seisaku/atarashii_sihonsyugi/pdf/sdfyplan2022en.pdf  28 November 
2023), the following three major initiatives will be promoted in an integrated ma nner:  
1. Build human resources and networks for creating startups  
2. Strengthen funding for startups and diversify exit strategies  
3. Promote open innovation  
 
2.2 Trade Policy Formulation and Objectives  
 
2.6. Japan's trade policy objectives and progress on their realization are laid out in the METI's annual 
White Papers on International Economy and Trade, which are submitted to Cabinet. Their objective 
is to contribute to the formulation of trade strategies through the analysis of trade -related 
international trends and policies, and to provide the public with the ideas that lay out the basis for 
trade policy and its directions. More detailed trade -related objectives were last laid out in the 2018 
White Paper, but still guide Japan's current policy . This Paper underlines the importance of 
developing "free, fair and high -level trade rules", with key trading partners and in international for 
a (including the WTO), as well as progress in reinforcing economic ties and cooperation with 
emerging  
economies.  
 
Question  
How does Japan implement public engagement for (trade) polices?  
 
Response  
The Government of Japan informs its trade policy through close communication with the public at 
various occasions including the Diet discussions and other explan atory sessions.  
 
Page 37  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
 
3.1.4. Tariff  
 
3.18. Two main laws continue to govern the setting of tariffs in Japan: (i) the Customs Tariff Act23, 
which provides for, inter alia , customs duty rates through the appended Tariff Schedule, customs 
duty reductions and exemptions, and the application of tariff quotas; and (ii) the Temporary Tariff 
Measures Act24, which provides for temporary exemptions to the Customs Act and the Custom s 
Tariff Act to allow for customs duty adjustments if needed for the purposes of the sound development 
of the national economy. During the review period, the Temporary Tariff Measures Act was amended 
several times to, inter alia , extend the effective perio ds of temporary rates of customs duty and the 
related exemption system; review customs duties on individual items; extend special tariff measures WT/TPR/M/438/Add.1  
 
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  in the Okinawa prefecture; apply duty -free rates to certain products; and expand the prior reporting 
system. R egarding the special tariff measures in the Okinawa, the Temporary Tariff Measures Act 
was amended in 2022 to extend the application period of the Selective Taxation system and the 
Specified Duty -Free Shop system for three and two years, respectively.  
 
Question  
Concerning the "Temporary Tariff Measures Act", it states that the customs duty can be adjusted 
subject to the development of the national economy. Are there any specific tangible measures or 
indicators that Japan uses to determine when this act w ould be implemented, or when it is needed 
to be amended/ extended?  
 
Response  
Japan doesn't have the specific tangible measures or indicators.  
Temporary tariff rate is set by the perspectives on the protecting profits of consumers and fulfillment 
of interna tional commitments.  
It is revised to respond to the domestic and international situation of the time every year.  
 
  WT/TPR/M/438/Add.1  
 
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27  INDIA  
Questions on Secretariat report WT/TPR/S/438  
 
WT/TPR/S/438, Page 27 and 28: Para 2.11  
Japan is a signatory to the 1979 Agreement on Trade in Civil Aircraft, and a party to the plurilateral 
Agreement on Government Procurement (GPA). It is also a signatory to the Information Technology 
Agreement (ITA), and participated in the ITA expansion negotiations. Japan accepted the 20 05 
Protocol Amending the TRIPS Agreement and the Agreement on Trade Facilitation. Japan is an 
important donor to various WTO technical assistance activities. The authorities indicate that the WTO 
Agreement on Fisheries Subsidies is in the ratification proc ess. 
 
Question 1  
Please provide the specific details of the WTO technical assistance activities with respect to Japan?  
 
Response  
Japan has supported Sudan's accession to the WTO through the ITC, and through the WTO's Global 
Trust Fund, Japan has provided training for administrative officials and academic support for trade 
in developing countries to Benin, Senegal, Brazil, and others.  
 
WT/TPR/S/438, Page 39, Para 3.12  
Japan's legislation on customs valuation has not changed since the previous Revie w. It is based on 
rules contained in the Customs Tariff Act. Customs value is primarily assessed based on the 
transaction value of the goods (c.i.f. value), which must also reflect costs incurred by the buyer. 
Should it not be possible to use this method, other methods used (in order) are transaction value of 
identical or similar goods, computed value based on the domestic selling prices or the production 
costs of those goods, and values determined by other methods. According to the authorities, Japan 
does not keep data on different means of determining customs value.  
 
Question 2  
Please explain "the values determined by other methods " which are available in addition to the 
above -mentioned methods for assessment of Customs value?  
 
Response  
If the requirements  stipulated in "principle for determining customs value" or in the methods of 
"determination of customs value on the basis of transaction value of identical or similar goods" and 
"determination of customs value on the basis of domestic selling price or cos t of production" are not 
met, the customs value shall be determined by the method prescribed in these provisions or others, 
with reasonable adjustments.  
 
WT/TPR/S/438, Page 39, Para 3.16  
Japan applies MFN tariff rates to imports from eligible countries and regions, whereas the origin is 
defined as the country or region in which the goods concerned have been wholly obtained or have 
undergone substantial transformation, which is defined as h aving a change in the four -digit heading 
in the Harmonized System, or (in some cases) subject to specific origin -conferring processing or 
working. Operations such as packing, applying labels or brands, and simple mixing are insufficient 
working or processi ng for conferring origin.  
 
Question 3  
Please explain how this "substantial transformation"  is being determined?  
 
Response  
"substantial transformation" is defined as having a change in the four -digit heading in the 
Harmonized System, or (in some cases) subject to specific origin -conferring processing or working.  
For the non -preferential rules of origin in Japan, please refer to the following webpage.  
https://www.custom s.go.jp/roo/english/origin/outline_of_roo.pdf  
 
WT/TPR/S/438, Page 51, Para 3.49  
Anti-dumping investigations may be initiated when the Government considers it necessary, when an 
application for investigation has been submitted by a domestic industry to the Minister of Finance, 
or when there is enough evidence. The decision is published  as a public notice in the Official Gazette 
by the Minister of Finance. Investigations are carried out by a team composed of officials from the WT/TPR/M/438/Add.1  
 
- 205 - 
 
  MOF's Office of Trade Remedy Affairs, the METI's Office for Trade Remedy Investigations, and the 
ministry in cha rge of the relevant industry. The final decision to impose an anti -dumping duty is 
issued as a Cabinet Order. Provisional measures may be applied no earlier than 60 days from the 
initiation of the investigation if affirmative preliminary determinations are  made. Provisional 
measures are in principle applied for up to four months, although a longer timeframe may apply 
upon requests of exporters representing a significant percentage of the trade involved. Exporters 
may offer an undertaking to revise prices or  cease exports so that the injurious effect of the dumping 
on the domestic industry is eliminated. Anti -dumping duties can be imposed for a period not 
exceeding five years and may be extended thereafter following a review. Each extension of the 
measure may  not be longer than five years.  
 
Question 4  
i. Is there any law/measure under which anti -circumvention and anti -absorption actions are 
investigated and/or imposed in Japan? If yes, please give details, such as title of the 
law/measure etc.  
 
Response  
Japan do es not have laws for the measures of the evasion of anti -dumping duty and anti -absorption, 
besides the investigations of common violations against Customs Act, such as false declaration, etc. 
In a suspicious case of circumvention, Japan may address it in t he original investigation, if it is found 
during the investigation, or a new investigation as needed.  
Japan has the authority to investigate the evasions of Anti -dumping duty measures in place, as those 
are violations against Customs Act.  
ii. Are there different divisions/bodies within the METI that separately conduct the dumping 
and injury determination ?  
Response  
Only the investigating authorities, the team of MOF's Office of Trade Remedy Affairs and the METI's 
Office for Trade Remedy Investigations, c onduct the dumping and injury determination. Our team 
jointly conducts both the dumping and injury determination.  
If it is found to be necessary to impose, modify, abolish anti -dumping duty or to impose a provisional 
anti-dumping duty, it is required to ma ke a consultation to the Council on Customs, Tariff, Foreign 
Exchange and Other Transactions without delay, pursuant to Article 20 of Cabinet Order relating to 
Anti-dumping Duty(G/ADP/N/1/JPN/2/Corr.1).  
iii. Does Japan apply Lesser Duty Rule (LDR)? If yes, plea se give details of the law / measure 
under which LDR is applied? Please explain how Japan calculates the 'injury margin' and the 
'non-injurious price'.  
Response  
LDR has not been applied and the details of it are not specified. Only the Paragraph 1 of Article 8 of 
Customs Tariff law （G/ADP/N/1/JPN/2 ） specifies that "they may,[ …], be imposed, [ …], customs 
duty in an amount equal to or less than the amount equivalent to the difference between the normal 
price and the dumped price of the goods".  
iv. Does METI initiate anti -dumping investigations suo moto? If yes, please give details of the 
law under which suo moto investigations are initiated.  
Response  
Anti-dumping investigati ons may be initiated by (i) application from domestic industries or (ii) official 
authority (ex officio), when the government of Japan considers it necessary. Enough evidence is 
required in both cases. Please refer to the provisional translation of paragra phs 4 and 5 of Article 8 
of Customs Tariff Law （G/ADP/N/1/JPN/2 ）. So far, no ex officio investigation has been initiated.  
v. Does Japan have a sampling of a 'domestic industry' when there is a large and fragmented 
number of domestic producers? If yes, what is the procedure?  WT/TPR/M/438/Add.1  
 
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Response  
Japan does not conduct a sampling for domestic producers.  
vi. Does Japan conduct a "public interest" examination in anti -dumping and CVD investigations? 
If yes, what are the factors that METI considers while making a public interest exa mination? 
How does METI gather evidence for conducting a public interest examination?  
Response  
To determine the necessity of protecting a domestic industry, the views presented by interested 
parties, industrial users, and the representative consumer organizations, pursuant to Article 12 -2 of 
Cabinet Order relating to Anti -dumping Duty(G/ADP/N/1/JPN/ 2/Corr.1), and the information 
provided by industrial users and the representative consumer organizations, pursuant to Article 13 
of Cabinet Order relating to Anti -dumping Duty(G/ADP/N/1/JPN/2/Corr.1), are considered, during 
the anti -dumping and CVD invest igations.  
Such evidences can be provided by interested parties, industrial users, and the representative 
consumer organizations by the deadline noticed or made known to the public by investigating 
authorities. In addition, MOF may, if necessary, request i nterested parties, industrial users, and the 
representative consumer organizations to provide such evidences.  
vii. Have there been any instances where METI has recommended non -imposition of duty on 
grounds of public interest, despite a determination that there exists dumping or subsidization 
and injury?  
Response  
There have been no instances where the investigating authorities recommended non -impositions of 
duty on the grounds of public interest.  
 
Question 5  
It is stated that  "Provisional measures are in principl e applied for up to four months, although a 
longer timeframe may apply upon requests of exporters representing a significant percentage of the 
trade involved ." 
What is the basis for determination of this significant percentage?  
 
Response  
A significant perc entage is roughly 50%, pursuant to the item 2 of paragraph 1 of Article 17 of 
Cabinet Order relating to Anti -dumping Duty(G/ADP/N/1/JPN/2/Corr.1) and the paragraph 13 of the 
Guidelines for Procedures relating to Anti -Dumping Duty(G/ADP/N/1/JPN/2/Suppl.6).  
 
WT/TPR/S/438, Pg. 52, Para. 3.55. Japan reserved the right to use the special agricultural 
safeguard on 121 tariff lines (Section 4.1). All the RTAs to which Japan is signatory contain provisions 
on bilateral safeguards. During the review period, bilateral safeguard investigations were not  
undertaken, and no safeguard measures were imposed under any of Japan's RTAs.  
 
Question 6  
i. While undertaking global safeguard investigations under the Agreement on Safeguards, does 
Japan exclude its RTA partners from the application of the measure? If so, what is the legal 
basis for the same?  
 
Response  
Japan does not exclude its RTA partners from the investigation under the Agreement on Safeguards.  
ii. Has Japan ever applied bilateral safeguard against any of its RTA Partners?  
Response  
Japan has  not ever applied bilateral safeguard measures under the RTAs.  
iii. Has Japan agreed to provision of Agricultural Safeguards in its RTAs with Partners which 
have not reserved their rights under Article 5 of the Agreement on Agriculture?  WT/TPR/M/438/Add.1  
 
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  Response  
A provision on the treatment of the special agricultural safeguard of the WTO Agreement on 
Agriculture is provided in almost all trade agreements Japan has signed.  
 
WT/TPR/S/438, Page 54, Para 3.67:  
Under the Export Trade Control Order, approval from the METI may be requ ired to export certain 
goods and exports of certain goods to certain destinations. The prior approval of the MAFF is also 
required, or permission must be obtained under other laws/regulations, in a few cases. Several 
controlled products/destinations may re flect Japan's international commitments or non -binding 
arrangements. Others may relate to export restrictions contained in other domestic laws/regulations. 
Specific goods subject to import licensing requirements are listed in several tables appended to the  
Order.  
 
Question 7  
Please elaborate the goods for which the prior approval of the MAFF is also required?  
 
Response  
When exporting the goods listed below, the prior confirmation of the MAFF is required.  
・fishing vessels  
・glass eels and eel fries  
・Specimens of any animal or plant that the Convention on International Trade in Endangered 
Species of Wild Fauna and Flora (CITES) requires to obtain the advice of the MAFF as a Scientific 
Authority.  
・mycelia of lentinus edodes  
 
WT/TPR/S/438, Pg. 56, Para. 3.78. The Japan External Trade Organization (JETRO) remains the 
official agency responsible for promoting exports through information, research, support for and 
participation in international trade fairs, and other activities to promote exports from, and 
investment in, Japan.74 Its annual budget in FY2021 was JPY 54,002 million; it has a staff of around 
1,860, and has regional offices in 55 countries.75 JETRO provides an Internet matching services for 
Japanese agricultural and food products through the  Japan Agricultural and Foodstuff Exports in e -
Venue.76 The Japan Food Product Overseas Promotion Center, established in 2017, has a mandate 
to brand, raise awareness of, and boost the exports of Japanese agricultural, forestry, fishery, and 
food products and to create a stronger platform for overseas business -to-consumer promotions.  
Question 8  
Please state all of the schemes by which JETRO boosts the exports of Japanese products.  
What is the contribution of the Government of Japan, in terms of fiscal support and other measures, 
towards the implementation of the schemes by JETRO?  
Response  
It is difficult to list all the schemes since JETRO covers a very wide range of export promotio n-related 
activities of agricultural and non -agricultural products, and also the activities may differ depending 
on the fiscal year.  
Outlines are available at:  
https://www.jetro.go.jp/en/jet ro/activities/agri/  
https://www.jetro.go.jp/en/jetro/activities/business/  
https://www.jetro.go.jp/en/jetro/activ ities/contribution/  
The Japanese Government provides JETRO with management grants, government subsidies, etc., 
as a source of revenue to cover operating costs.  
WT/TPR/S/438, Pg. 59, Para. 3.90. Domestic support to production and trade is offered to 
foreign  and domestic companies through grants, tax incentives, and loan schemes (Table 3.8). The 
objective of the support is to encourage wage hikes, capital investments, and research and 
development, as well as to support SMEs and the agriculture and fisheries s ectors.  WT/TPR/M/438/Add.1  
 
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Question 9  
Please inform how does Japan ensure that the domestic support is only used for the purposes of 
encourage wage hikes, capital investments, and research and development, as well as to support 
SMEs and the agriculture and fisheries sectors,  and is not used for subsidising exports.  
Regarding question 1 above, please state the applicable law, the method of investigation, and the 
mechanism to ensure that the exporter does not use the domestic support to subsidise its exports  
Response  
The relevant ministry must endeavour to use the subsidies as provided by law and budget, and to 
carry out the subsidized projects in good faith in accordance with the purposes for which they are 
granted. Therefore, all subsidies will be awarded only in accorda nce with the purposes of the 
program. In addition, the recipients are required to conduct the defined subsidized project and is 
legally prohibited from using the project for other purposes (Article 3 and 11 of the Act on Regulation 
of Execution of Budget P ertaining to Subsidies, etc.).  
 
In addition, the Constitution requires that the treaties concluded by Japan and established laws of 
nations shall be faithfully observed (Article 98).Our subsidy programs are thus designed and 
operated in a manner that is co nsistent not only with the Japanese law but also with international 
commitments, including Article 3 of the SCM Agreement which prohibits subsidies contingent upon 
export performance.  
 
The footnote of Article 3.1(a) of the WTO SCM Agreement provides that "[t]he mere fact that a 
subsidy is granted to enterprises which export shall not for that reason alone be considered to be 
an export subsidy within the meaning of this provision". While Japan does not maintain any export 
subsidies, Japan notes the fact that an exporter receives subsidy does not constitute any violation 
of the SCM Agreement.  
WT/TPR/S/438, Pg. 62, Para. 3.105  – Between April 2019 and March 2022, 13 new JASs were 
established , 28 were revised, and none were abolished. The authorities indicate that 77% of JASs 
are harmonized with international standards.  
Question 10  
Japan is requested to provide information on which authority determines the Maximum Residue 
Limits (MRLs) of chem icals in commodities (other than, https://www.ffcr.or.jp/en/zanryu ) and India 
needs clarification on if this is the only authority to notify the MRLs and related risk assessment 
reports?  
 
Response  
The Ministry of Health, Labour and Welfare (MHLW) is respon sible for setting MRLs for pesticides 
etc. in foods. The draft revised MRLs based on the risk assessment is notified by the MHLW.  
The risk assessment is conducted by the Food Safety Commission. Risk assessment reports can be 
found on the Food Safety Commis sion's website. (https://www.fsc.go.jp/english/evaluationreports/)  
 
Regarding JASs in the paragraph referred, JASs stipulate standards for the quality, production 
process, distribution process, handling, and testing methods of agricultural and forestry pro duct, 
and do not stipulate the Maximum Residue Limits (MRLs) of chemicals in commodities, including 
organic JASs.  
 
Question 11  
Are all the deviated MRLs from the FAO/Codex based on risk analysis or are these based on hazard 
also? 
1. If yes, Japan is requested  to provide a chapter -wise list under the two categories, risk and 
hazard -based approaches.  
Response  
It is not clear what "hazard -based MRLs" indicates, but Japan conducts risk management including 
setting of MRLs for pesticides etc. in the framework of ri sk analysis.  
 
Regarding JASs in the paragraph referred, JASs  stipulate standards for the quality, production 
process, distribution process, handling, and testing methods of agricultural and forestry product, WT/TPR/M/438/Add.1  
 
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  and do not stipulate the Maximum Residue Limits (MRLs) of chemicals in commodities, including 
organic JASs.  
 
Question 12  
Are these deviated MRLs based on Japanese Scientific analysis or have they been borrowed from 
other similar development stage countries or industrial countries?  
i. If yes, what is their number and which of the agricultural chapters are they conce ntrated 
in? 
ii. Can Japan provide the compositional shares in terms of chapters?  
iii. Does Japan use or support the EU's MRL approach?  
 
Response  
The question is unclear, but setting of MRLs  for pesticides etc. in Japan is conducted based on 
scientific data such as crop residue test results, based on the OECD guidelines, etc.  
Regarding the EU's MRL approach, there are cases that the MHLW has set MRLs based on the import 
tolerance application from the EU and the submission of the basis of establishing the MRLs in EU, 
including data.  
 
Regarding JASs in the paragraph referred, JASs  stipulate standards for the quality, production 
process, distribution process, handling, and testing methods of agricultural and forestry product, 
and do not stipulate the Maximum Residue Limits (MRLs) of chemicals in commodities, including 
organic JASs.  
WT/TPR/S/438, Pg. 63, Para. 3.109  – Manufacturers of electrical and consumer products 
overseas may undergo conformity assessment and certification conducted in foreign countries by 
foreign -registered conformity assessment bodies, in accordance with relevan t laws.[93] According 
to the authorities, under the Consumer Product Safety Act, the Electrical Appliances and Materials 
Safety Act, the Act on the Securing of Safety and the Optimization of Transaction of Liquefied 
Petroleum Gas, and the Gas Business Act,  a foreign conformity assessment body needs to apply for 
registration with the Japanese Government in order to be registered as a foreign -registered 
conformity assessment body under the Act. Upon receipt of the application, the Government shall 
register th e foreign conformity assessment body as a foreign -registered conformity assessment body 
when the Government confirms that the foreign conformity assessment body satisfies all the 
provisions of the Act, including conformity with international standards for product certification 
bodies.  
Question 13  
Japan is requested to provide the procedure and requirements for registration of foreign -registered 
conformity assessment bodies and which international authority does it follow for product 
certifications?  
 
Respons e 
A foreign conformity assessment body that will apply for registration under four product safety  acts 
must register to the Ministry of Economy, Trade and Industry, Japan.  
When registering an inspection body, the registration requirements include that the  body conforms 
to the standards for bodies that certify products (conforms to ISO/IEC17065) set by the International 
Organization for Standardization and the International Electrotechnical Commission.  
 
Question 14  
Japan is requested to inform if it accepts  accreditation by national accreditation bodies who is a 
member of ILAC, for the purpose of registration of a foreign -registered conformity assessment body.  
 
Response  
As one of the requirements for registration under four products safety acts, it is necess ary to comply 
with the standards for product certification bodies specified in ISO/IEC17065, which can receive 
certification from ILAC members.  
In addition, it needs to meet the necessary requirements as the registered conformity assessment 
body based on r elated Acts and Ministerial Orders.  
WT/TPR/S/438, Pg. 65, Para. 3.121  – Regarding food safety of imported foods, the MHLW  
accepts test results issued by Foreign Official Laboratories. The aim is to streamline and accelerate 
import procedures for voluntary inspection that is conducted by an importer. Importers can use the 
testing results issued by Foreign Official Laboratorie s if the Laboratory is listed by the MHLW. Items WT/TPR/M/438/Add.1  
 
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for which the sanitary conditions are liable to change during transport by ship or air (for example, 
bacteria and mycotoxin) are excluded.  
Question 15  
Japan is requested to explain the criteria employed by M HLW to recognize a foreign laboratory as a 
Foreign Official Laboratory. Further, in cases where the government of an exporting country 
recognizes a laboratory's capacity to carry out relevant inspections, does it imply that the MHLW 
would automatically lis t such laboratory as a Foreign Official Laboratory?  
Response  
For the recognition of Foreign Official Laboratories, the link below shows the procedural flow and 
outline of how the laboratories are listed.  
https://www.mhlw.go.jp/english/topics/importedfoods /dl/1-10.pdf  
If the government of the exporting country recognizes a laboratory to have a certain level of testing 
capability in its own country and requests the MHLW in advance, the laboratory will be included in 
the list of Foreign Official Laboratories.  
WT/TPR/S/438 , Pg. 66, Para. 3.125  – A few amendments to relevant legislation occurred during 
the review period. The Food Sanitation Act, amended in 2018, partially entered into force in June 
2020 and fully entered into force in June 2021.[101] The amendment was to, in ter alia, reflect 
changing dietary patterns and the environment surrounding food in Japan as well as to increase 
hygiene control, such as requiring hazard analysis and critical control points (HACCP) -based hygiene 
controls on meat and edible meat offal to be imported and hygiene certificates to import dairy 
products and marine products.  
Question 16  
Japan is requested to explain the details of the weather hygiene controls on meat and edible meat 
offal is as per the Codex Committee on Food Hygiene (REP16/FH) or is there a deviation from it  
 
Response  
The Food Sanitation Act, the Abattoir Act, and the Poultry Slaughter Business Control and Poultry 
Inspection Act were revised in 2018, and "hygiene controls in accordance with HACCP" became 
mandatory, in principle,  for all food business operators.  
"Hygiene controls in accordance with HACCP" was established referring to the GENERAL PRINCIPLES 
OF FOOD HYGIENE （GPFH）CXC 1 -1969.  
WT/TPR/S/438, pg -81, 3.166 . Japan has attributed sluggish R&D investment, corporate focus 
on tangible assets, and inadequate financing for innovation as factors that have led to its lower level 
of innovative activity relative to comparable economies. Japan's gross annual expenditure on R&D 
peaked in FY2019 at JPY 19.58 trillion, before de clining to JPY 19.24 trillion in FY2020. As a 
percentage of GDP, its R&D expenditure has increased since 2016, and stood at 3.59% in 
FY2020.184 A lower percentage of Japan's total R&D is government -financed, compared with 
comparable economies. Japan hopes that 2021 revisions to the Corporate Governance Code will 
motivate companies to proactively invest in and leverage their IP, free from conventional business 
models.  
Question 17  
What are initiatives taken under the 2021 revisions to the Corporate Governance  Code that will 
motivate companies to proactively invest in and leverage their IP, free from conventional business 
models?  
 
Response  
In January 2022, following the 2021 revision to the Corporate Governance Code, the "Guidelines for 
Disclosure and Governanc e on Intellectual Property & Intangible Assets Investment and Utilization 
Strategies" (The IP & Intangible Assets Governance Guidelines) were formulated. The Guidelines 
provide information on how companies  should disclose their strategies for investments a nd 
utilization of IP and intangible assets and establish governance thereof in order that they can be 
adequately evaluated by investors and financial institutions, aiming to facilitate voluntary disclosure 
by companies.  
In addition, in May 2022, the JPO pu blished a collection of IP utilization case studies, including 
information disclosure on initiatives for IP and the actual state of supervision by the board of 
directors, based on the 2021 revisions to the Corporate Governance Code.  WT/TPR/M/438/Add.1  
 
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  WT/TPR/S/438, Pg. 81, 3.168  - In May 2022, the Diet passed the Act for the Promotion of 
Ensuring National Security through Integrated Implementation of Economic Measures. The Act, to 
be fully implemented within two years, calls for a system to support the development of advanced 
critical technologies, which may include quantum and AI technologies for domains such as maritime 
and aerospace, as well as a system for "non -disclosure of selected patent applications" akin to those 
in most other G20 economies. Pat ent applications covering inventions that, if made public, would 
likely impair national security and public safety due to external action will be initially reviewed by 
the JPO and then by the Cabinet Office. If the invention is designated, the publication of the 
application and the examiner's decision will be suspended, and designated inventions will be subject 
to restrictions on working and disclosure. After the designation is terminated, normal patent 
procedures will resume. Applicants are to be compensat ed by the Government for "normally 
occurring" losses. Those who leak undisclosed information of designated inventions will be subject 
to a maximum of two years in prison or a JPY 1 million fine.  
Question 18  
What types of patent applications have been subje ct to non -disclosure on the ground of impairing 
public interest in Japan?  
 
Response  
The current Patent Act provides that matters that are likely to injure public policy are not to be 
published in the Patent Gazette. In practice, for example, slander and li bel against third parties, 
matters concerning privacy, and obscene matters may have been considered not to be published.  
 
Question 19  
• How the residents and non -residents are differentiated with respect to non -disclosure of 
selected patent applications?  
• Factors governing the compensation for determination of "normally occurring" losses to the 
applicants?  
Response  
Residents and non -residents are not differentiated with respect to this system. The prohibition on 
filing of applications in foreign countries (first -filing requirement) applies to inventions that are made 
in Japan and belong to specified technology fields.  
Those who claim for compensation for losses shall state the reason for the compensation claim, the 
total amount of the compensation  claim and its breakdown, and the basis for calculation. Based on 
these, the Government shall compensate for losses for which it is considered reasonable to receive 
compensation.  
WT/TPR/S/438, pg -82, 3.173.  The JPO is continuing to adapt to the Fourth Indu strial Revolution 
and the impact of Big Data, AI technologies, and the Internet of Things (IoT). In 2020, it reported 
on the status of patent applications for AI -related inventions both in Japan and overseas. In 2021, 
the JPO launched a new Team for Suppor ting AI Examinations, following the 2017 establishment of 
an IoT Examination Team.204 Also in 2021, the JPO published AI/IoT examination guidelines in 
manga format, with some chapters available in video format, in an effort to appeal to non -patent 
speciali sts, and updated a comparative study with the European Patent Office on examination 
practices for software -related inventions, including AI -related inventions.206 The JPO also seeks to 
harness AI technology for its own purposes: in 2022 it adopted a second  six-year Action Plan for the 
Utilization of AI Technology to improve the efficiency and quality of its work.  
Question 20  
i. What are the practices w.r.t innovation done by an AI in Japan?  
 
Response  
The Cabinet Office of Japan is working on the introduction of AI -related products and services in 
government agencies, as a part of efforts to promote the use of AI throughout its society.  
For instance, the practices of AI utilization in the government agencies include text data mining, 
chatbot, trans lation, image recognition, etc.  
ii. How does Japan plan the governance, regulation and enforcement of the Intellectual 
property created by AI?  
 
Response  
The JPO understands that the indication of inventors is limited to a natural person. Therefore, our 
office does not allow any description that is recognized as not being a natural person in the column WT/TPR/M/438/Add.1  
 
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of inventors in application documents and others. For example, one that describes a machine 
including artificial intelligence (AI), etc., as an inventor is not al lowed. If there is a description that 
is recognized as not being a natural person in the column of inventors, etc., it will be determined 
that the description in the application document is incomplete. Since this falls under a case where 
there is a formali ty violation in the procedure, the JPO sends an invitation to amendment that the 
procedure should be amended within a reasonable period of time. At this time, our office is not 
considering the description of AI inventors.  
iii. Can copyright be attributed to an art created by an AI? If not than what is the status of 
such creation under IP laws of Japan?  
 
Response  
If there is a creative contribution by AI operators in the production process of creating works, it is 
considered that the operators "used" AI as a "tool" to creatively express their thoughts or feelings. 
In such case, it is recognized as the copyrighted  work and protected by copyright law.  
WT/TPR/S/438, pg. 83, 3.175  – Japan pursues enhanced standards of IP protection with its 
trading partners in various multilateral fora, including WIPO, UPOV212, the G7 and G20, APEC, and 
the OECD, in addition to the WTO.2 At WIPO, Japan finances and supports IP development activities 
in developing and least -developed countries through annual voluntary  contributions exceeding CHF 
5.8 million to Funds -in-Trust Japan IP Global. It also supports the development of WIPO -CASE global 
dossier information sharing system and became a partner of WIPO GREEN in 2020. Japan also 
facilitates the establishment and imp lementation of plant variety protection systems in Asia through 
the East Asia Plant Variety Protection Forum. At the WTO, Japan is a dynamic participant in the 
TRIPS Council, where it actively engages in topics including IP and innovation, IP and the publi c 
interest, and proposals related to the COVID -19 pandemic. It also supports transparency in its 
domestic system of IP protection and the review function of the TRIPS Council by routinely notifying 
legislative changes and reporting on its implementation of  Article 66.2 and technical and financial 
cooperation activities. Japan has yet, however, to update its 1997 responses to the Checklist of 
Issues on Enforcement.  
Question 21  
What measures does Japan take to implement Article 66.2 of TRIPS for the transfer of technology 
to LDCs?  
Response  
The Government of Japan has been conducting development cooperation activities in many fields. 
One of the most important objectives of these cooperation activities is to promote and encourage 
the transfer of technology.  
Japan understands that incentives for technology transfer should be interpreted to include a variety 
of measures such as financial support and business environment support, and that supporting the 
business environment by strengthening intellectual property pr otection is one of several effective 
measures to promote technology transfer by private sectors.  
The Government of Japan has been providing voluntary contributions to WIPO, and the 'Funds -in-
Trust Japan Industrial Property Global' was established with thes e voluntary funds.  
Through these voluntary funds, various projects are implemented every year, such as accepting IPR 
research fellows, holding symposiums, sending JPO officials, and supporting the automation and 
modernization of IP offices.  
Japan Internat ional Cooperation Agency (JICA) provides technical cooperation through Official 
Development Assistance (ODA), through which knowledge and technologies are transferred. 
Numerous programs, such as supporting creation of IP environment, training of personnel,  
organizing seminars, and so on, are implemented each year by Japanese experts dispatched through 
JICA. 
Moreover, in the form of a Funds -in-Trust to the UPOV, the Government of Japan has supported 
programs on plant variety protection systems in developing countries, especially Asian countries. 
Also, Japan is actively implementing cooperation activities to strengthen and harmonize the PVP 
system and improve the examination capacity of East Asia Plant Variety Protection Forum member 
countries.  
 
See below for details.  
https://e -trips.wto.org/En/ImplementationOfArticle662Notifications/View/1001135  WT/TPR/M/438/Add.1  
 
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  WT/TPR/S/438, Pg. 84, 3.177  – The JPO  seeks to harmonize IP systems and their operation 
through various collaborative efforts with like -minded foreign counterparts, including Group B+; the 
IP5 and its sister fora, the ID5 (designs) and TM5 (trademarks); the Patent Prosecution Highway 
(PPH) an d Global PPH; a US -Japan Collaborative Search Pilot Programme wherein examiners of each 
office share independently conducted prior art searches when a patent has been applied for in both 
countries; and a comparative study with the European Patent Office on  examination practices for 
software -related inventions, including IoT, AI, and 3D printing technologies.  
Question 22  
Has Japan benefitted from harmonized IP systems and their operation through various collaborative 
efforts with like -minded foreign counterp arts under an arrangement of Patent Prosecution Highway? 
Is there any specific Agreement in this context?  
1. List the countries with whom Japan has completed such an arrangement.  
Response  
With the PPH , Japanese applicants can obtain the benefit of being able to receive accelerated 
examination through simple procedures at IP offices with which Japan has a PPH agreement. In 
addition, the average patent grant rate for applications using the PPH is higher than that for all cases 
of applications, and the average number of office actions for applications using the PPH is also lower 
than the average for all cases. Therefore, applicants can expect to obtain patent rights overseas at 
low cost by using the PPH. ( See the following link for statistical information on applications of PPH 
requests. https://www.jpo.go.jp/e/toppage/pph -portal/statistics.html) The JPO also benefits from 
improved availability of prior art searches and examination results from Offices of E arlier 
Examination, reduced examination burden, and improved quality.  
・Regarding cooperation with other offices concerning the PPH, the USPTO and the JPO have set a 
goal for deadlines for each office action on applications of PPH requests in order to incre ase the 
predictability of the examination timing of applications of PPH requests. Since January 1, 2022, our 
office has been conducting examinations for applications of PPH requests in line with this goal. See 
below for details.  
https://www.jpo.go.jp/system/patent/shinsa/soki/pph/document/us_highway_pilot_program/01_e
n.pdf 
 
Question 23  
i. What is Japan's experience under the Indian -Japan PPH so far?  
ii. Should the collaboration under this project be extended and made deeper between JPO 
and IPO?  
iii. What was Japan's experience under IP5 PPH? Does IP5 help Japan to improve its Patent 
filling procedur e under the Japan's IP regime?  
iv. What would Japan like to suggest to make changes in the Indian IP regime to make it 
better?  
 
Response  
i. India and Japan launched the India -Japan PPH in December 2019. Since the launch of the India -
Japan PPH, Japanese compan ies have used 100 PPH requests per year, which is the upper limit of 
the number of PPH requests, and have highly evaluated the India -Japan PPH.  
 
ii. The India -Japan PPH has enabled accelerated acquisition of patent rights for new emerging 
technologies of b oth India and Japan. Thanks to this, it has been confirmed that technology transfer 
between India and Japan is accelerated, and also business expansion and investment between the 
two countries is promoted. This will contribute to the JPY 5 trillion in publ ic and private investment 
and financing from Japan to India agreed at the India -Japan Summit Meeting in March 2022. In 
addition, this will also contribute to the carbon neutrality policy that India has published and to the 
IP for Society that both countrie s are aiming for. Since this is an initiative beneficial to both India 
and Japan, this project should continue to expand and deepen cooperation in the future.  
 
iii. Under IP5 PPH, all PPH frameworks (normal PPH, PPH MOTTAINAI, and PCT -PPH) are available 
among the IP5 Offices. To make IP5 PPH more meaningful, the Offices have discussed PPH evaluation 
metrics and agreed on the definitions of metrics for evaluating PPH examination speed and grant 
rate. Based on these definitions, the Offices exchange their sta tistical information to evaluate the 
effects of PPH.  WT/TPR/M/438/Add.1  
 
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In addition, the IP5 Offices discuss various issues such as work sharing among IP offices and 
examination speed. We believe that these discussions will benefit applicants in terms of examination 
quality and speed.  
 
iv. 
- Renewing the India -Japan PPH and improving the operation of PPH  (adding technical fields such as 
chemistry -related fields, and relaxing the upper limit on the number of PPH requests)  
- Simplifying procedures for acquiring patent rights, such as submitting a translation of the priority 
document and submitting a Stateme nt of Working  
- Relaxation of requirements for amendments and divisional applications in patent applications  
- Improving the quality of patent examination and shortening the pendency period for oppositions 
of trademark  
- Establishing the registered patent publication, establishing the design system for delaying public 
disclosure, and taking IP measures such as the revival of the Intellectual Property Appeal Board 
(IPAB), which was abolished in 2021  
- Measures against counterfeits ((1) clar ification of responsibility for sales of products that infringe 
on IP rights of EC platform operators, and (2) introduction of a system to prevent acts of complete 
imitation of the form as unfair competition))  
WT/TPR/S/438, pg. 85, 3.180  - Companies and ot her entities experiencing infringement abroad 
may request assistance from the JPO's General Counterfeit and Piracy Countermeasures Counter, 
JETRO overseas offices, and/or MOFA's IP Officers. Investigations and consultations with foreign 
counterparts follow  as needed.  
Question 24  
How do the JPO's General Counterfeit and Piracy Countermeasures Counter, JETRO overseas offices, 
and/or MOFA's IP Officers assist with IP infringement cases taking place abroad?  
Response  
For the purpose of rapidly and efficiently p roviding assistance for Japanese companies that have 
suffered from counterfeit and pirated goods, MOFA appoints. "Intellectual Property Officers" at 
almost all of Japan's diplomatic missions overseas so that they can advise Japanese companies and 
make inqu iries with or requests to their counterpart governments.  
IP Officers in JETRO overseas offices are engaged in the followings; responding to inquiries from 
Japanese companies operating in the local market, conducting surveys on the manufacture, 
distribution , consumption, etc. of counterfeit goods in the country concerned, creating a 
countermeasure manual and providing its information to Japanese companies and other entities, 
and implementing public -private joint seminars, etc. for the purpose of improving th e ability of 
officials of foreign executive agencies, etc. to determine authenticity.  
The General Counterfeit and Piracy Countermeasures Counter of the Japanese government is a 
centralized consultation counter for the government that mainly receives consul tations and 
information from domestic companies, etc. regarding measures against counterfeits and piracy. This 
Counter accepts consultations by email, telephone, interviews, and other means, provides advice on 
how to respond, and communicates and coordinat es with related ministries/agencies and JETRO 
offices, such as providing information received to customs, police and other enforcement agencies.  
Based on such cooperation with related organizations, support is provided for cases of intellectual 
property in fringement overseas.  
WT/TPR/S/438, Pg. 85, 3.183 - Several amendments were made to the Patent Act during the 
review period. In an effort to address the increasing complexity of licensing schemes and digital 
technologies, as of April 2022 right holders no lo nger need to obtain the consent of non -exclusive 
licensees prior to abandoning or correcting a patent. As of April 2023, rights that have been forfeited 
due to unintentionally missed deadlines may be more readily restored with the submission of a short 
statement and payment of a fee. Before this amendment, a "valid reason", strictly interpreted by 
the JPO, had been required to revive expired rights. The new standard is similar to that applied in 
the United States.  
Question 25  
How does Japan's approach above  safeguard the interests of the non -exclusive licensees?  
Response  
*Corrections  WT/TPR/M/438/Add.1  
 
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  A non -exclusive license is a "right to work the patented invention" (Article 78(2) of the Patent Act). 
In terms of its legal nature, it is commonly believed that, in court precedents, such license is a right 
to demand inaction that the patent owner not exe rcise the right to seek injunction or claim damages. 
Therefore, even if the scope of claims for patent is restricted by correction, it does not prevent the 
non-exclusive licensee from continuing to work on the patent right. For this reason, corrections are  
generally not prejudicial to the legal interests of the licensee.  
 
*Abandonments  
Even abandoning a patent right does not preclude the non -exclusive licensee  from continuing to 
work, just as in the case of correcting the scope of claims for patent.  
WT/TPR/S/434, Pg. 85, 3.187 – The JPO aims to provide the "world's fastest and utmost quality 
patent examinations". Pendency periods increased during the review peri od, with most of the 
increase occurring in FY2020 following the arrival of the COVID -19 pandemic (Table 3.17). As of 
2020, Japan had the shortest pendency times among major IP offices, and the fourth fastest in the 
world.  
Question 26  
What measures has Japa n taken to streamline its patent examination system during the time of a 
public emergency like COVID -19? 
Response  
After the arrival of the COVID -19 pandemic, the JPO made the following initiatives to streamline the 
patent examination system.  
・Promotion of online interviews  
・Acceleration of digitization of various procedures  
・Relief measures for procedures and others  
・Facilitation of work style reforms such as active use of remote work  
WT/TPR/S/438, Pg. 89, 3.197  – The Livestock GR Act creates an IP right in genetic resources of 
improved livestock breeds, such as Wagyu embryos and semen. Civil injunctions, damages, and 
credit recovery measures are available against parties that unfairly acquire, use, or transfer 
protected genetic resources, or unfairl y use livestock produced with livestock genetic resources to 
produce further livestock or livestock genetic resources. Malicious misconduct, including export in 
violation of contract terms, may subject individuals to criminal penalties of up to JPY 10 mill ion 
and/or a 10 -year prison term, and companies to a fine of up to JPY 300 million.  
Question 27  
What is the position in Japan regarding the patenting of plants and animals in relation to the review 
of Article 27.3(b), TRIPS?  
Response  
In Japan, there is no provision to exclude plants and animals from patent protection. Plants and 
animals can be eligible for patent protection if they fall under the definition of ""invention"" ("the 
highly advanced creation of technical ideas utilizing the laws of nature") sti pulated in Article 2 of the 
Patent Act. (See "Examination Handbook for Patent and Utility Model, Annex B", Chapter 2, 1.1.1 
(e), etc. for the specific handling of patent examination for plants and animals.)  
https://www.jpo.go.jp/e/system/laws/rule/guideline/patent/handbook_shinsa/document/index/ap
p_b2_e.pdf  
WT/TPR/S/438, pg. 91, 3.205 - The April 2020 revision of the Examination Guidelines f or 
Trademarks clarified, inter alia , that exterior and interior building designs may be protected as three -
dimensional trademarks. This coincided with the entry into force of 2019 amendments to the Design 
Act, which newly protects spatial designs, including interior and exterior building designs.  
Question 28  
Does Japan require graphical representation as a prerequisite for the protection of non -traditional 
marks?  
 WT/TPR/M/438/Add.1  
 
- 216 - 
 
Response  
In Japan, three -dimensional trademarks are not regarded as one of the non -traditional trademarks. 
However, if it is desired to protect the shape of the exterior and interior of a store, etc. as a three -
dimensional trademark, it is required, for example, to indicate the three -dimensional shape with a 
drawing or photograph showing th e three -dimensional shape from one or two or more different 
directions (Article 4 -3 of the  
Enforcement Ordinance of the Trademark Act).  
WT/TPR/S/438, pg. 92, 3.208 - Japan's Regional Collective Trademark System, introduced in 
2006 and managed by JPO, co -exists with the sui generis system of geographical indication (GI) 
protection under the authority of the MAFF (Section 3.3.7.10). A Regional Collective Trademark 
Guideb ook was published in 2022 to promote awareness of the System and the registered marks. 
Use of the System continued to grow during the review period, with 730 trademarks registered at 
the end of March 2022, compared to 645 at the end of 2018. As of 5 August  2022, three overseas 
trademarks had been registered: Zhenjiang Vinegar, Prosciutto di Parma, and Ceylon Tea.  
Question 29  
What benefits does Japan see in protecting GIs through its collective and certification marks scheme, 
given that it already has a sui generis GI legislation?  
Response  
If an application for Regional Collective Trademark is filed and then it can be successfully registered, 
its benefits are the following:  
* Right holders can exercise their rights (claim for damages, demand an injunction) against 
unauthorized use.  
* They c an prevent the importation of counterfeit goods by filing a complaint with customs.  
* By using the international application system for trademark registration (the Protocol Relating to 
the Madrid Agreement), they can file applications for trademarks overse as through simple 
procedures.  
WT/TPR/S/438, pg -93, 3.210.  The procedures and agencies responsible for GI registration have 
not changed. As of July 2022, Japan had registered 117 domestic GIs for agricultural products302 
and 23 domestic GIs for liquor.303 A s of February 2022, Japan also directly protects 262 European 
GIs (106 GIs for agricultural, forestry, and fishery products and foodstuffs and 156 GIs for liquor) 
through the EU -Japan EPA. Under the UK -Japan CEPA, Japan protects 6 UK GIs (3 GIs for 
agricul tural, forestry, and fishery products and foodstuffs and 3 GIs for liquor) as of January 2021. 
Japan also protects GIs from Chile, Mexico, and Peru under its EPAs, which stipulate mutual 
protection of GIs.305.  
Question 30  
Does the UK also provide protectio n to Japan's GI under the UK -Japan CEPA?  
Response  
Yes, under the Japan -UK CEPA, the UK protects 55 Japanese GIs (47 GIs for agricultural products 
and 8 GIs for wine, spirits and other alcoholic beverages) as of February 2023.   
Question 31  
What is Japan's experience in exporting its GI -protected products to the UK under the UK -Japan 
CEPA? How does Japan ensure the protection and enforcement of IP rights associated with GI 
products exported to the UK in case of any infringement?  
Response  
Japan has ex perience in exporting both agricultural items and alcoholic beverages, and major 
examples are KOBE BEE Ｆ, KAGOSHIMA WAGYU, and Japanese Sake.  
With regard to the infringements, Japan conducts the web -based and on -site investigations on a 
periodic basis. If s uspected infringement cases are found by the surveys, Japanese government 
requests the UK government for the enforcement of protection, and the UK government takes 
appropriate measures against the operator(s) in question in the UK.  
 WT/TPR/M/438/Add.1  
 
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  WT/TPR/S/438, pg. 96, 3 .224 - Japan Customs is responsible for enforcing IPRs at the border 
and seizes infringing goods. There were no changes to the Customs Act during the review period 
from 2018 to 2021 that materially impact the process, availability, or protections associate d with 
IPR enforcement at the border. The estimated value of IPR -infringing goods seized by Japan Customs 
grew from JPY 13.5 billion in 2018 to JPY 16.4 billion in 2021. The number of total annual cases and 
articles seized has fluctuated in recent years (C hart 3.7). The overwhelming majority of cases (96%) 
and articles (76%) seized from 2017 -21 relate to trademark infringement, although seizures related 
to copyright grew steadily during the same period. Bags and apparel accounted for more than half 
of impor t seizure cases, but nearly as many electric appliances were seized as articles of apparel. 
Significant numbers of computer products, housewares, and textiles were also seized. Almost 80% 
of seized articles were traced to China and a growing proportion dur ing the review period were traced 
to Viet Nam (10.7%) and the Philippines (3.9%).  
Question 32  
Does Japan apply any IP enforcement measures in relation to exports?  
Response  
As the Customs Act stipulates that goods infringing IP shall not be exported, Japan  Customs 
implements IP enforcement measures on exported goods as well.  
WT/TPR/S/438, Page 101, Para 4.21.  The Government also implemented a comprehensive 
grant for strong agriculture during the same period with a view to providing support for constructing 
fundamental facilities in agricultural rural areas and distribution centres of agricultural products, 
which the authorities consider necessary for joint delivery in production areas and consumption 
areas as well as for pilot programmes in pioneering projects. The budget for the grant was JPY 34.5 
billion in FY2020 and JPY 16.2 billion in FY2021.  
Question 33  
Could Japan please explain under which category the above -mentioned grant is notified in the latest 
submitted DS 1 notification for the fiscal year 2020 -21? 
 
Response  
The grant is classified in the last DS1 notification as "infrastructural service" of the "General 
Services", in the Annex2, Paragraph 2(g) in the Agreement on Agriculture.  
 
WT/TPR/S/438,Page 105, Para 4.32.  The MAFF continues to provide direct payments to farmers 
who produce crops other than table rice in the paddy field (the Direct Paymen ts for Rice Paddy 
Utilization), to optimize the use of paddy fields, against the background of diminishing domestic 
demand for rice. According to the authorities, this scheme aims to maintain the favourable 
environment of paddy fields and prevent floods or  soil erosion, cultivate water resources, and 
preserve the natural environment through effective use of paddy fields. The Payments are classified 
into (i) direct payments to assist the production of strategic crops (other than table rice); (ii) grants 
for production areas; and (iii) direct payments for promoting high profitability in paddy farming. In 
FY 2021, with a view to more positively tackling the continued decline in demand for staple rice, the 
fourth programme was built into the Payments. The new pr ogramme, in addition to prefectural 
governments own financial supporting schemes, enables the Government to pay farmers who 
produce certain products in the paddy field. The Payments are made when producers meet at least 
three of specific requirements inclu ding those for environmental protection such as direct sowing 
seeding and efficient fertilization, in order to promote cultivation of paddy field. Under the Payments, 
the Government provides grants to Prefectural Agricultural Revitalization Councils, which  are 
composed of farmers' organizations and other agricultural stakeholders, based on their grant 
applications and performance reports that summarize the farmers' practices in the region. The grants 
are paid to the Prefectural Councils and then distributed  to the farmers. The budgets for these 
programmes were JPY 332.0 billion in FY2020 and JPY 370 billion in FY2021.  
Questions 34  
i. Could Japan please explain the differences in the objectives to be fulfilled through the 
variety of payments under the scheme and  the criteria laid down for providing the grant 
for production area?  
ii. Kindly provide the details of allocation and distribution of JPY 332 billion among the four 
different payments made under Direct Payments for Rice Paddy Utilization for the year 
2020.  WT/TPR/M/438/Add.1  
 
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iii. How does "direct payments for promoting high profitability in paddy farming" qualify the 
criteria of paragraph 12 of Annex 2 of the Agreement on Agriculture?  
 
Response  
i. Please see the web site below.  
Abstract of the Direct Payments for Rice Paddy Utilization (in Japanese only)  
https://www.maff.go.jp/j/syouan/keikaku/soukatu/attach/pdf/index -8.pdf 
 
ii. For the budget ed amount of JPY 332 billion, a breakdown of expenditures for the four programs 
is not disclosed.  
 
iii. Direct Payment for Rice Paddy Utilization are paid to producers to preserve a favorable 
environment for paddy fields. The Government pays grants directl y to farmers after confirming their 
appropriate management of the fields, based on their grant applications and performance reports 
submitted by farmers through the Regional Agricultural Revitalization Councils which are comprised 
of producers and other st akeholders involved in agricultural sector.  
 
WT/TPR/S/438, Page 105, Para 4.30:  
 
In OECD publications regarding reviews of agricultural policies in Japan, other OECD countries, and 
some other economies, the value of transfers to agricultural producers is measured using the 
Producer Support Estimate (PSE) and associated indicators. The methodology for calculating these 
indicators is different from that used to calculate the Aggregate Measure of Support, and the two 
sets of data are neither compatible nor comparable.  
 
Question 35  
Please elaborate Producer Support Estimate (PSE) and assoc iated indicators?  
 
Response  
The Producer Support Estimate (PSE) is an indicator of the annual monetary value of gross transfers 
from consumers and taxpayers to support agricultural producers, measured at farm gate level, 
arising from policy measures, regar dless of their nature, objectives or impacts on farm production 
or income.  
 
OECD measures the PSE of 54 countries including India in the Agricultural Policy Monitoring and 
Evaluation.  
 
For details, please see the OECD website below.  
https://stats.oecd.org/glossary/detail.asp?ID=2150   
https://www.oecd.org/agriculture/topics/agricultural -policy -monitoring -and-
evaluation/documents/producer -support -estimates -manual.pdf   
https://stats.oecd.org/wbos/fileview2.aspx?IDFile=4e777e46 -5bb4-4d48-b2d2-e1f2a9153a14  
 
WT/TPR/S/438, Page 105, Para 4.32  
 
The MAFF continues to provide direct payments to farmers who produce crops other than table rice 
in the paddy field (the Direct Paymen ts for Rice Paddy Utilization), to optimize the use of paddy 
fields, against the background of diminishing domestic demand for rice. According to the authorities, 
this scheme aims to maintain the favourable environment of paddy fields and prevent floods or  soil 
erosion, cultivate water resources, and preserve the natural environment through effective use of 
paddy fields. The Payments are classified into (i) direct payments to assist the production of strategic 
crops (other than table rice); (ii) grants for production areas; and (iii) direct payments for promoting 
high profitability in paddy farming. In FY 2021, with a view to more positively tackling the continued 
decline in demand for staple rice, the fourth programme was built into the Payments. The new 
programme, in addition to prefectural governments' own financial supporting schemes, enables the 
Government to pay farmers who produce certain products in the paddy field.12 The Payments are 
made when producers meet at least three of specific requirements in cluding those for environmental 
protection such as direct sowing seeding and efficient fertilization, in order to promote cultivation of 
paddy field. Under the Payments, the Government provides grants to Prefectural Agricultural 
Revitalization Councils, wh ich are composed of farmers' organizations and other agricultural 
stakeholders, based on their grant applications and performance reports that summarize the 
farmers' practices in the region. The grants are paid to the Prefectural Councils and then distribu ted WT/TPR/M/438/Add.1  
 
- 219 - 
 
  to the farmers. The budgets for these programmes were JPY 332.0 billion in FY2020 and JPY 370 
billion in FY2021.  
 
Question 36  
How the flow of the grants that are paid to the Prefectural Councils and then distributed to the 
farmers is being monitored?  
 
Response  
Please see the website below.  
Abstract of the Direct Payments for Rice Paddy Utilization (in Japanese only)  
https://www.maff.go.jp/j/syouan/keikaku/soukatu/att ach/pdf/index -8.pdf 
 
WT/TPR/S/438, Page 107, Para 4.44:  
 
Under the annual Feed Supply and Demand Plan that aims to stabilize feed supply, demand, and 
prices, the MAFF continues to purchase and sell imported feed grains (barley and wheat) under the 
Plan. There has been no change to the Plan. The Plan for 2021 was  to purchase and sell 300,000 
tonnes of feed barley and 400,000 tonnes of feed wheat. The private sector freely imports these 
products, regardless of the Plan. Nonetheless, such importers must go through special import 
procedures; they must pay customs dut ies plus special import fees to a regional agricultural 
administration bureau. Once the bureau issues the receipt of such a payment, importers must submit 
the receipt to the customs as a part of import declaration.  
 
Question 37  
Please elaborate special imp ort fees and the special instances in which it is payable?  
 
WT/TPR/S/438, pg -108, 4.50.  The main laws concerning the fisheries sector include the Fishery 
Act of 1949 (last amended in 2022); the Basic Act on Fisheries of 2001 (last amended in 2020); the 
Fisheries Cooperative Association Act (last amended in 2022); the Act to Ensure Sustainable 
Aquaculture Production of 1999 (last amended in 2018); the Act on the Exercise, etc. of Sovereign 
Rights regarding Fishery, etc. in the Exclusive Economic Zone of 1996  (last amended in 2018); the 
Act on the Protection of Fishery Resources of 1951 (last amended in 2018); and the 2014 Inland 
Water Fishery Promotion Act. Under the Fishery Act, national and prefectural governments have 
responsibility for appropriate conserv ation and management of fisheries resources. In principle, 
fisheries resources shall be managed with a goal to achieve the Maximum Sustainable Yield through 
Total Allowable Catch management. Fishers must engage in fisheries management in order to be 
eligib le for some government support programmes for the establishment of environmentally and 
economically sustainable fisheries.  
 
Response  
Any wheat and barley not imported by MAFF shall be subject to payment of special import fees and 
customs duties in principl e. However, the wheat and barley for specific purposes such as academic 
research, display sample might be exempted from the fees and the duties.  
The special import fees and the customs duties are set out based on WTO tariff rates.  
The special import fees o f wheat and barley are JPY 45.2/kg and JPY 28.6/kg respectively. The 
customs duties are JPY 9.8/kg and JPY 10.4/kg. The total amount of the special import fee and 
customs duty are equal to the respective WTO tariff rates; JPY 55/kg, and JPY 39/kg.  
 
Question 38  
i. How does Japan ensure illegal, unreported, and unregulated (IUU) fishing to promote 
sustainable fishin g? 
ii. Please provide details about the Total Allowable Catch management. How does it 
promote Maximum Sustainable Yield?  
Response  
i) Japan will continue to implement the following measures to deter IUU  
- Promoting dialogues and cooperation with relevant countries through bilateral and multilateral 
frameworks such as RFMOs and PSMA  
- Implementing schemes under "Act on Ensuring the Proper Domestic Distribution and Importation 
of Specified Aquatic Animal an d Plants", which entered into force on 1 December 2022, to prevent 
products derived from IUU fishing from entering into the distribution channel in Japan.  
- Implementing other actions in line with international instruments on counter -IUU measures, such 
as IPOA-IUU and PSMA.  WT/TPR/M/438/Add.1  
 
- 220 - 
 
In addition, Japan actively implements MCS measures in the high  seas adjacent to its EEZ and shares 
relevant information with flag states, RFMOs and/or through the information exchange framework, 
such as that of PSMA, as appropriate, whe n its patrol vessels identify IUU fishing activities.  
Regarding alleged violation cases by domestic fishing vessels, Japan, in accordance with its laws and 
regulations, investigates the cases any alleged violation, and when the alleged violation is confirm ed, 
it imposes sanctions on the vessel in question such as suspension of the license and detainment of 
the vessel.  
 
ii)Under the new TAC system based on the new Fisheries Act, fisheries resources subject to 
management based on TAC are defined as "Specified Fisheries Resources" in the Basic Policy of 
Resources Management that is decided by the Minister of Agriculture, Fo restry and Fisheries. For 
each Specified Fisheries Resource, the resource level that produces the maximum sustainable yield 
(Target Reference Point, TRP) and the level that prevents overfishing (Limit Reference Point, LRP) 
are set based on stock assessment . TAC is decided according to the harvest control rule (HCR, 
management scenario) that is determined beforehand to achieve the management goal. If the 
fisheries stock biomass is below the LRP, a rebuilding plan should be developed and implemented to 
recove r the biomass to TRP. Now, Japan introduced TAC management for 8 species (saury, Alaska 
pollack, Japanese jack mackerel, Japanese sardine, mackerel, snow crab, cuttlefish, bluefin tuna), 
which is around 60% of fisheries production, and by the end of FY2023 , will subject to expand putting 
80% of fisheries production under TAC management.  
WT/TPR/S/438, Pg 117, Para – 4.94 
Background: Japan's financial services sector is relatively open.57 There are no foreign equity 
restrictions. Criteria to obtain a licence are the same for foreign and domestic companies. There are 
no nationality or residency requirements for members of the board of directors. No banking services 
are reserved for domestic suppliers. Commercial presence is required for lending and deposit -taking 
activities.  
Question 39  
There is a dichotomy observed between the information provided in Boxes 4.2 and 4.3 and the text 
stated in para 4.94. If the regime in Japan is as liberalized as is stated, why are the number of 
operational foreign financial serv ice suppliers, especially in banking and insurance very low?  
Response  
The report referred to in your country is the Secretariat's report, and the information in paragraph 
4.94 was also provided by the Secretariat.  
For banks, the number of foreign bank subsidiaries and branches has not changed significantly in 
recent years, and the number of foreign financial service suppliers is not considered to be very small.  
As for insurance, when a foreign insurance company conducts insurance business in Japan, ther e 
are two cases: one is to conduct insurance business by establishing a corporation in Japan, and the 
other is to conduct insurance business in Japan while maintaining its headquarters in a foreign 
country.  
Of the 42 life insurance companies in Japan that have fewer foreign insurance companies than non -
life insurance companies, 14 companies fall under the former category.  
On the other hand, there are no life insurance companies that fall under the latter category as of 
2022).  
The procedures for applying for  a foreign insurance business license and the examination criteria for 
a license are the same as those for a domestic insurance business license. Based on the historical 
background and the business decisions of each company, we believe that they have obtai ned an 
insurance business license by establishing a corporation in Japan.  
There are no foreign insurer -specific measures or additional procedures that may prevent the foreign 
insurer in question from entering the market.  
 
WT/TPR/S/438, Pg 117, Para – 4.9.8   
According to the authorities, Japan has a generally proactive attitude towards regulation and 
supervision of cryptocurrencies and digital assets. As at August 2022, there were 31 crypto exchange 
service providers under the supervision of the FSA. Japan b ecame the first country to regulate 
virtual -currency exchanges in 2017, when the FSA introduced a registration system. The Japan 
Virtual and Crypto Assets Exchange Association (JVCEA), which has a self -regulatory status certified 
by the FSA, was formed in April 2018.  WT/TPR/M/438/Add.1  
 
- 221 - 
 
  Question 40  
Are there any specific differences in the regulatory functions of JVCEA in the context of foreign and 
domestic cryptocurrency service suppliers? If yes, kindly specify.  
 
Response  
Regardless of whether a primary business office is l ocated in Japan or overseas, an entity which 
carries out Crypto -Asset Exchange Services for residents in Japan is required to be registered as a 
Crypto -Asset Exchange Service Provider under the Payment Services Act.  
Any Crypto -Asset Exchange Service Provid er that is a member of JVCEA is subject to the self -
regulations of JVCEA. JVCEA treats domestic Crypto -Asset Exchange Service Providers and foreign -
based Crypto -Asset Exchange Service Providers in the same way.  
 
Question 41  
Could Japan provide specific details on what regulatory roles the JVCEA play and what is the scope 
of its functions?  
 
Response  
Japan Virtual and Crypto assets Exchange Association (JVCEA) is a self -regulatory body for Crypto -
Asset Exchange Service Provide rs and crypto -asset-related derivatives business, and also serves as 
the "Certified Association for Payment Service Providers" under the Payment Services Act and the 
"Certified Financial Instruments Business Association" under the Financial Instruments and  Exchange 
Act. 
The main activities of JVCEA are:  
• Establishment of self -regulatory rules ; 
• Audit, monitoring, and provision of information to members ; 
• Guidance, Recommendation, and Disposition to Members ; 
• Acceptance of complaints about crypto -asset exchange business ; 
• Provision of information to users, etc. ; 
• Statistical surveys on crypto -asset -related transactions . 
 
For further details, please contact JVCEA.  
WT/TPR/S/438, Pg.118, Para –4.101  
In May 2021, the Government amended the Banking Act and the Financial Instruments and Exchange 
Act with a view to strengthening and stabilizing the financial services sector.60 Most importantly, 
the amendments widened the scope of services that a parent bank may provide. The newly added 
services relate to digitaliz ation and regional revitalization, allowing the sale of IT systems, and the 
provision of data analysis services, marketing and advertisement services, and management 
consultation services.  
 
Question 42  
Could Japan describe how the newly added services will  be regulated and what will be the specific 
implications of the recognition of these services in the context of Japan's GATS commitments and 
FTA commitments i.e., how will these services be regulated for foreign service suppliers?  
 
Response  
As a result of the 2021 revision of the Banking Act, new services were added to the scope of business 
of banks. Under the Banking Act, banks are required to establish systems and take measures 
necessary to ensure the appropriate and sound operation of banking services an d to protect 
customers. Such services are also subject to the supervision of the FSA.  
We are also aware that newly added services will be appropriately regulated by the Banking Act and 
other laws and regulations that are specific to each service.  
Foreign b anks that have obtained a business license in Japan are subject to the Banking Act 
regardless of whether they are domestic banks. Foreign banks are allowed to conduct business that 
they are permitted to handle by the recent relaxation of restrictions on th e scope of business. This 
does not violate Japan's GATS or EPA commitments. (Regulations on foreign service suppliers other 
than foreign banks have not changed.)  
We understand that the revised Banking Act is not necessarily compatible with the business mod els 
of foreign service providers, including foreign banks, because the purpose of the revision is to 
promote deregulation and environmental improvement in order to establish financial functions that WT/TPR/M/438/Add.1  
 
- 222 - 
 
strongly support the recovery and revitalization of the J apanese economy in response to the changes 
in socioeconomic conditions caused by the COVID -19 pandemic.  
WT/TPR/S/438, Pg -119, Para –4.108.  
4.108. The Government made several amendments to the Insurance Business Act and relevant 
regulations during the review period. In an amendment to the Act adopted in March 2022, the 
Government announced that it would extend its financial support to the Life Insurance Policyholders 
Protection Corporation of Japan by five years, until end -2027. The Corporation was esta blished in 
1998 to offer compensation and support services to members of life insurance companies that had 
gone bankrupt. The amendment also stipulates that the Government could provide additional 
financial support to the Corporation in case its budget, ma de up from member contributions, is not 
sufficient to cover operations.  
Question 43  
Are foreign companies eligible to avail of this financial support? What are the selection criteria and 
whether foreign companies are subject to the same criteria as local companies?  
 
Response  
The financial support provided by the government is for the compensation resources of the Life 
Insurance Policyholder Protection Corporation, not for individual life insurance companies.  
All 42 life insurance companies licensed t o conduct life insurance business in Japan are members of 
the Protection Corporation.  
WT/TPR/S/438, Pg.120, Para 4.110   
The telecommunications regime, supervised by the Ministry of Internal Affairs and Communication 
(MIC), has been described in past TPR re ports; the regulatory regime did not undergo any significant 
changes during the review period. In particular, there were no changes regarding licensing 
procedures, the mobile interconnection regime, facility sharing, local loop unbundling, number 
portabili ty, spectrum management, and accounting rates. However, certain regulatory changes and 
developments took place in areas such as mobile phone fees, evolution of a digital society, and 
protection of private information.  
Question 44  
Could Japan explain its te lecommunication regime concerning its notification submitted in 2021 to 
the WTO on the Telecommunication Business Act that requires foreign companies to register with 
the MIC and designate a local representative in Japan?  
 
Response  
The Telecommunications B usiness Act (TBA) applies to cases where foreign companies operate 
telecommunications businesses to provide telecommunications services in Japan. Furthermore, the 
TBA also applies to cases where foreign companies operate telecommunications businesses to 
provide telecommunications services from abroad for persons in Japan.  
If a foreign company intends to operate a telecommunications business as described above, then 
registration or notification is required pursuant to the provisions of the TBA.  
If a foreign company applies for the registration of telecommunications businesses or files 
notification for the same, then that foreign company shall designate a domestic representative or a 
domestic agent and shall file its domestic representative or domestic agent w ith the Minister for 
Internal Affairs and Communications.  
WT/TPR/S/438, Pg -120, Para –4.113 - The Act on the Protection of Personal Information was 
amended in June 2020 and entered into force in April 2022. The amended Act establishes, inter alia, 
obligati ons borne by operators that handle personal information and that transfer personal data to 
a third party outside Japan. Under the Act, the operators must obtain consent from the data subjects 
for the transfer of data abroad. They are obliged to provide inf ormation on the country to which data 
are transferred, the personal information protection system in the destination country, and details 
of protective measures taken by receiving operators. Operators are also required to ensure that the 
receiving operator s manage the transferred data in compliance with relevant regulations. To enforce 
these obligations, the Personal Information Protection Commission (PIPC) has the authority to issue 
orders to foreign and domestic companies and charge criminal penalties for  failures to comply with 
such orders. Since it is difficult to enforce such regulations outside Japan, the PIPC is authorized to WT/TPR/M/438/Add.1  
 
- 223 - 
 
  collaborate with foreign regulators for the purpose of enforcing the Privacy Act. The Act reinforces 
the operators' obligations  of report and notification in case of data breaches. The PIPC has published 
guidelines for the implementation of the Act.  
Question 45  
To enforce these obligations, the Personal Information Protection Commission (PIPC) has the 
authority to issue orders to foreign and domestic companies and charge criminal penalties for failures 
to comply with such orders.  
1. Could Japan provide details on what are the specific criminal penalties for failures to comply 
with the orders and what is the mechanism to enforce these penalties?  
Response  
If the Personal Information Protection Commission (PPC) finds that penal provisions stipulated by 
the Act on the Protection of Personal Information are found violated, it would file a complaint with 
an investigative agency under Article 239 of the Code of Criminal Procedure in seeking punishment 
. It is said that whether penalties are actually charged depends on the investigation by the police, 
the referral of the case to the public prosecutor, the prosecution, and the trial.  
 
Article 145 of the Act on the  Protection of Personal Information stipulates that if the Personal 
Information Protection Commission finds that a personal information handling business operator etc. 
violates certain obligations, it may issue recommendations or orders for stopping or cor recting 
violations to them, while Article 173 of the Act stipulates, "If a person violates an order pursuant to 
the provisions of Article 145, paragraph (2) or (3), the person who committed the violation is subject 
to not more than one year of imprisonment  or a fine of not more than one million yen."  
 
Question 46  
How can Japan address the speculations of trade secrets violations made regarding its domestic data 
regulatory policies, like the government autonomy to request or order to decrypt/encrypt personal  
data or electronic records held by business enterprises, not necessarily with a warrant?  
Response  
We are not sure what the part of the sentence "domestic data regulatory policies, like the 
government autonomy to request or order to decrypt/encrypt persona l data or electronic records 
held by business enterprises, not necessarily with a warrant?" exactly means, but in general, even 
if it is the government, if it attempts to illegally obtain, use, or disclose a company's trade secrets, 
there is a possibility that it will be judged by a court of law to have violated trade secrets. Separately, 
in terms of personal information protection, please refer to the following link:  
https://www.ppc.go.jp/en/legal/  
WT/TPR/S/4 38, Page 120 and 121, Para 4.114  
 While the backbone of Japan's past high growth has been manufacturing, the communications sector 
becomes an increasingly important driver of productivity growth. Applications using 5G 
telecommunication networks, allowing the transmission of large data volumes at low cost and high 
speed, stretch from the smart cities' initiative, e -health (particularly for an ageing population), 
autonomous vehicles, the Internet of Things, e -government, and smart grids and factorie s (Section 
2.4). To this end, for example, the programme for "Strategic Information and Communications R&D 
Promotion" gives incentives for collaboration between ICT firms, universities, and local government 
research institutes. Overall funding for this pro gramme was JPY 1.5 billion in 2018 and JPY 1.0 billion 
in 2021  
Question 47  
Please provide the scope of incentives for collaboration for "Strategic Information and 
Communications R&D Promotion"  
 
Response  
The adoption evaluation of SCOPE is designed to ensur e that industry -academia collaborative 
research projects will receive higher scores than other stand -alone research projects.  WT/TPR/M/438/Add.1  
 
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WT/TPR/S/438, Page 121, Para 4.115:  
Under the GATS, Japan made commitments on all telecommunications sub sectors (with the 
excepti on of telegraph services), be they basic or value added, subscribed to the GATS disciplines 
of the reference paper. Japan listed two restrictions, both for NTT and KDDI: a limitation on foreign 
ownership of 20%, and a nationality requirement for the majori ty of the board. This situation related 
to NTT and KDDI is echoed in Japan's bilateral or regional agreements, but the foreign ownership 
limitation was scheduled at a less restrictive, status quo level of one third, which corresponds to the 
applied regime.  
 
Question 48  
Please provide the legal sanctions behind limitation on foreign ownership and nationality requirement 
and its WTO compliance?  
 
Response  
The limitation on foreign ownership and nationality requirement for KDDI has already been lifted.  
In cases where any violation of the provisions of the limitation on foreign ownership has occurred, 
a fine not exceeding five hundred thousand yen is imposed on the employee or the transfer agent 
(if the transfer agent is a juridical person, its employee) of NTT who has committed the violation in 
accordance with the provisions of Article 24 of the Act on Nippon Telegraph and Telephone 
Corporation, etc.  
There ar e no penalties for violating nationality requirements, but a resolution adopted by NTT for 
the appointment or dismissal of directors or auditors does not become effective unless it is authorized 
by the Minister of the Internal Affairs and Communications.  
In the "Japan -schedule of specific commitments" of GATS, the two restrictions are mentioned to be:  
• Foreign capital participation, direct and/or indirect, in NTT and KDD must be less than one -
fift; 
• Board members and auditors in NTT and KDD are required to ha ve Japanese nationality.  
WT/TPR/S/438, Pg121 ., Para –4.119  - Regarding the support regime, in 2020, Japan extended 
the "roll -over relief system" until the end of FY2022: it defers taxation of capital gains resulting from 
the sales of old vessels replaced by new and environmentally friendly ones. Japan also extended the 
application of deduced rate of registration and licence tax (from 0.4% to 0.35%) until the end of 
FY2023, with a view to increasing Japanese -flagged overseas vessels. In 2021, a spe cial property 
taxation measure for Japanese -flagged overseas vessels was extended until the end of FY2023. This 
measure reduces the assessed value for property tax to 1/18 of the original value. The additional 
depreciation applicable to Japanese -flagged ve ssels fulfilling certain conditions, notably of 
environmental and high -technology natures, was also extended for two years until the end of 
FY2022.  
Question 49  
How does Japan plan to balance the annual costs of flagged ships under the new system that would  
still be as high as $1.03 million, as estimated by the Transport Ministry of Japan?  
 
Response  
Japan is not aware of the "estimate of $1.03 million per year" in the question.  
WT/TPR/S/438, Pg -122, Para –4.122 - The competition regime remained the same duri ng the 
review period; the last review of the antitrust immunity provided by the Marine Transportation Act 
was concluded in 2015.  
Question 50  
Could Japan please explain the reason for not reviewing the antitrust immunity provided by the 
Marine Transportatio n Act, post -2015?  
 
Response  
As for shipping conferences, when Japan considers there is no adverse effect upon the provision of 
stable international shipping services to Japan after examining the effectiveness of each shipping 
conference in place, Japan wil l review the current exemption for shipping conferences in the direction 
of abolition.  
As for shipping agreements other than shipping conferences, Japan will review them, if necessary, 
having internal consultation process with the Japan Fair Trade Commiss ion, after studying the policy WT/TPR/M/438/Add.1  
 
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  positions towards the exemptions from competition laws in other countries and the effect on the 
interests of the Japanese shippers, etc.  
 
Question 51  
Could Japan also elaborate if there is any administrative guidance issued b y the JFTC/regulations as 
regards maritime shipping cartels?  
 
Response  
JFTC issues the administrative guidance only for internal coastal maritime shipping cartels, not for 
international ones.  
WT/TPR/S/438, Pg 122, Para – 4.125  
In July 2022, the MLIT  announced the Action Plan to address labour shortages in ports and harbour 
transportation businesses.80 The MLIT's recent survey shows that more than 50% of the port and 
harbour operators that answered the survey in Japan face labour shortages, and that t hat 40% of 
them have already seen its negative impact on their operations. The Action Plan calls for, inter alia, 
the enhancement of labour condition and promotion of fair transactions and business practices.  
Question 52  
Given the labour shortages that Jap an is experiencing in the maritime sector, has Japan considered 
fulfilling the demand for workers by hiring natural persons of other WTO Members?  
Response  
Japan has not considered such plans.  
WT/TPR/S/438, Pg -123, Para –4.131    
4.131. Japan has bilateral air transport agreements with 60 trading partners; it currently has "open -
sky" agreements with 36 trading partners to mutually abolish restrictions on bilateral air transport 
services, such as caps on the number of operators and flights.  
Question 53  
Does J apan have any plans to liberalise airport management allowing foreign companies to operate 
airports in the Japanese territory?  
 
Response  
Japan has no specific regulations prohibiting foreign companies from operating airports in the 
Japanese territory.  
WT/T PR/S/438, Page no.103, Para 4.27 - According to the authorities, in 2022, as fertilizer 
prices soared, the Government supported farmers that introduced measures to reduce 20% of the 
use of chemical fertilizers with reference to a similar measure implemented  in 2008.  
Question 54  
In this context,  
a. What are the eligibility criteria to receive the payment under the measure?  
b. Please provide the details of the measure implemented in 2008.  
c. How was the support under the measure in 2008 categorized under domestic support 
notification? How the new measure would be notified in domestic support notification?  
d. Please share the details regarding the likely impact on the production of specific crops due 
to the limited use of fertilizer under the new measure.  
Resp onse  
a. The requirement is to carry out measures for reducing the use of chemical fertilizer.  
b. The measure in 2008, as well as the current one, was intended to compensate cost increase in 
fertilizer for farmers who carried out measures for reducing the u se of chemical fertilizer.  
c. Japan has submitted its domestic support notifications following the WTO Agreement on 
Agriculture and rules adopted by the Committee on Agriculture such as G/Ag/2. Japan is now working 
on DS1 notification for FY2021 and will w ork on a notification for FY2022 in due course including 
how to classify the measure in 2022.  WT/TPR/M/438/Add.1  
 
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d. The measure promotes reduction of chemical fertilizer through the optimization of fertilizer 
application. No particular impact is expected on the production of  specific crops.  
WT/TPR/S/438, Page no.105, Para 4.32  - Japan continues to provide direct payments to 
farmers who produce crops other than table rice in the paddy field (the Direct Payments for Rice 
Paddy Utilization), to optimize the use of paddy fields, against the background of diminishing 
domestic demand for rice. According to the authorities, this scheme aims to maintain the favourable 
environment of paddy fields and prevent floods or soil erosion, cultivate water resources, and 
preserve the natural en vironment through effective use of paddy fields. The Payments are classified 
into (i) direct payments to assist the production of strategic crops (other than table rice); (ii) grants 
for production areas; and (iii) direct payments for promoting high profit ability in paddy farming.  
Question 55  
a. In this context, could Japan give information on the distinct expenditure incurred under the 
three payment methods mentioned above for 2020?  
b. India observes that the expenditure of JPY 332 billion is notified by Japan under the Green 
box (paragraph 12 of Annex 2, AoA) in the domestic support notification for the financial 
year 2020. Could Japan elaborate on how each of the programs fulfils the criteria set under 
para 12 of Annex 2, AoA?  
Response  
a. Please see the websi te below.  
Abstract of the Direct Payments for Rice Paddy Utilization (in Japanese only)  
https://www.maff.go.jp/j/syouan/keikaku/soukatu/attach/pdf/index -8.pdf 
b. Direct Payment for Rice Paddy Utilization are paid to producers to preserve a favourable 
environment for paddy fields. The Government pays grants directly to farmers after confirming  their 
appropriate management of the fields, based on their grant applications and performance reports 
submitted by farmers through the Regional Agricultural Revitalization Councils which are comprised 
of producers and other stakeholders involved in agricu ltural sector.  
WT/TPR/S/438, Page no.105, Para 4.33 - The ministry of agriculture, forestry, and fisheries 
(MAFF) continues to implement the Rice Overseas Market Expansion Project. It is noted that no 
detailed information on this measure has been provided.  
Question 56  
In this context,  
a. What is the main objective of the Rice Overseas Market Expansion Project?  
b. Who are eligible to receive support under the project?  
c. Japan is further requested for sharing the official website link of the project.  
Response  
a. The Rice Overseas Market Expansion Project was launched in September 2017 aiming to increase 
exports of rice and processed rice products.  
b. Export operators who set export expansion goals and targeting countries/regions and rice 
producers who intend to ex port their products are on the list published by MAFF.  
MAFF supports these export operators and producers by holding matching opportunities or setting 
promotion opportunities in domestic or overseas trade shows.  
c. Please see the website below. (in Japanes e only)  
https://www.maff.go.jp/j/syouan/keikaku/soukatu/kome_yusyutu/attach/img/kome_yusyutu -
1.jpg WT/TPR/M/438/Add.1  
 
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  WT/TPR/S/438, pg -146, Table A4.8 Fisheries subsidi es notified in June 2021 for FY2018 
and FY2019  
Name of the 
Programme  Level of the subsidy  Policy objective pursued  Beneficiaries  Duration 
and 
amount  
Programmes for 
development 
and adaptation 
of new 
technologies 
and 
conservation of 
fishing grounds  - National  
- Grants, etc.  Support fishers and their 
organizations to conserve fishing 
grounds and mitigate damage 
by harmful marine species, 
using new tech nologies  Fishers and 
their 
organizations  FY2019: JPY 
3,588 
million; 
FY2018: JPY 
3,170 
million  
Support for 
establishment 
of 
environmentally 
and 
economically 
sustainable 
fisheries  - National  
- Grants, etc.  Enable fishers and their 
organizations to conduct 
sustainable fishing practices, 
thereby establishing 
environmentally and 
economically sustainable 
fisheries. Such supports include 
the mitigation of damages on 
fishers by natural and economic 
disasters, and promotion of 
structural reform of fisheries 
sectors  Fishers and 
their 
organizations  FY2019: JPY 
74,552 
million; 
FY2018 JPY 
54,017 
million  
Promotion for 
regional 
development 
through 
fisheries  - National  
- Grants, etc.  Promote regional development 
by supporting fishers and their 
organizations to conduct onsite 
fisheries -related activities such 
as national border surveillance, 
revitalization of fishing 
communities in remote islands, 
and recruitment and settlement 
of new fishers  Fishers and 
their 
organi zations  FY2019: JPY 
10,985 
million; 
FY2018 JPY 
9,085 
million  
Support for 
aquaculture, 
inland fisheries, 
and fish stock 
enhancement  - National  
- Grants  Support aquaculture and inland 
fisheries, and to promote fish 
stock enhancement  Fishers and 
their 
organizations  FY2019: JPY 
108 million; 
FY2018: JPY 
518 million  
Subsidy for 
inland water 
aquaculture  - Local (Gifu prefectural 
government)  
- Grants  Stabilize and promote inland 
water aquaculture  Fisheries 
association 
and 
aquaculture 
producers  FY2019: JPY 
1.0 million 
FY2018: JPY 
0.0 million  
Question 57  
i. The WTO Members are currently negotiating under the  Fisheries Agreement. The agreement 
includes a set of rules prohibiting subsidies to illegal, unreported, and unregulated (IUU) 
fishing, fishing of overfished stocks, and fishing on the high seas outside t he control of 
regional fisheries management organizations. Is there any subsidy that is prohibited under 
this Agreement?  
ii. If yes, what changes Japan is planning to modify the subsidies?  
iii. What are the major areas of concern for Japan to implement the agreement?  
 
Response  
No, there is no such subsidy. Japan has not found any concern so far in terms of implementation of 
the agreement.  
WT/TPR/S/438, pg -146, 3.117.  According to the authorities, Japan's sanitary and phytosanitary 
(SPS) regime aims to enhance and strengthen Japan's ability to satisfy its obligations under the SPS 
Agreement; provide adequate protection against risks threatening human, animal, and plant life and 
health; and improve its competitiveness to fully benefit access opportunities.  
Question 58  
As we know Japan is a member of the Codex Alimentarius Commission and the World Organisation 
for Animal Health, and a contracting party to the Internationa l Plant Protection Convention.  
1. Does Japan follow the standards of Codex Alimentarius Commission?  If yes, how many 
measures of Japan's domestic legal framework for SPS related to food safety are in WT/TPR/M/438/Add.1  
 
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accordance with the standards, guidelines and codes of pra ctice adopted by the Codex 
Alimentarius Commission?  
Response  
Whenever the international standards developed by the Codex Alimentarius Commission exist, they 
are referred to when establishing standards related to food safety.  
 
Questions on the Government Re port WT/TPR/G/438  
WT/TPR/G/438, Pg. 4, Para - 1.7 - The amount of outward FDI  stocks increased from JPY 204.6 
trillion (38.1% of GDP) in 2020 to JPY 228.8 trillion (42.3% of GDP) in 2021. The amount of inward 
FDI stocks increased from JPY 40.2 trillion (7.5% of GDP) in 2020 to JPY 40.5 trillion (7.5% of GDP) 
in 2021.  
Question 59  
Given the increase and high share of outward FDI to the GDP in Japan, it is requested to provide the 
following details for the period 2015 to 2022:  
i. Japan is requested to decompose the outward and inward FDI stocks.  
ii. How much of Japanese capital outflows are Grants Vs FDI flows?  
iii. Japan is requested to provide sectoral distribution of the outward and inward FDI stocks.  
iv. Has the India -Japan CEPA led to an increase in FDI outflows to India? Japan is requested to 
share the s ectoral composition of the same.  
v. How much of these investments (FDIs) are a direct consequence of the CEPA?  
Response  
For Question 59 i. ii. iii., please see the attached file for your information.  
 
Given the increase and high share of outward FDI to the G DP in Japan, it is requested to provide the 
following details for the period 2015 to 2022:  
 
i. Japan is requested to decompose the outward and inward FDI stocks.  
 
(100 million yen)  
year Outward direct 
investment  Equity other than 
reinvestment of 
earnings  Reinvestment of 
earnings  Debt instruments  
2015 1,518,520  1,036,610  346,984  134,927  
2016 1,588,852  1,119,493  337,500  131,858  
2017 1,751,412  1,187,382  414,293  149,737  
2018 1,818,818  1,240,388  398,278  180,152  
2019 2,041,684  1,436,957  423,512  181,215  
2020 2,046,371  1,465,531  399,711  181,129  
2021 2,287,628  1,639,864  460,115  187,650  
Source:  https://www.stat -search.boj.or.jp/ssi/cgi -bin/famecgi2?cgi=$nme_a000_en&lstSelection=BP01 . 
(100 million yen)  
year Inward direct 
investment  Equity other than 
reinvestment of 
earnings  Reinvestment of 
earnings  Debt instruments  
2015 247,702  154,570  57,758  35,373  
2016 282,318  161,447  64,785  56,087  
2017 289,263  164,667  65,154  59,441  
2018 306,828  166,512  72,679  67,637  
2019 343,301  183,388  78,116  81,797  
2020 401,880  187,343  77,202  137,336  
2021 405,044  213,257  72,834  118,953  
Source:  https://www.stat -search.boj.or.jp/ssi/cgi -bin/famecgi2?cgi=$nme_a000_en&lstSelection=BP01 . 
ii. How much of Japanese capital outflows are Grants Vs FDI flows?  
⇒ Grants are not included in FDI flows (capital outflows) in the balance of payment, so there is no 
data available.  WT/TPR/M/438/Add.1  
 
- 229 - 
 
  iii. Japan is requested to provide sectoral distribution of the outward a nd inward FDI stocks.  
⇒ (response) Please see the different sheets in this excel file. Japan MOF HP has released the 
sectoral distribution of the outward and inward FDI stocks after 2018. International 
Investment Position: Ministry of Finance ( mof.go.jp ) 
With regards to the questions (iv) and (v), one of the objectives of the Japan -India CEPA is to 
increase investment opportunities and strengthen protection for investments and investment 
activities in the Parties, as s tipulated in Article 1. FDI outflows to India has increased to 493.3 billion 
yen in 2021 from 181.5 billion yen in 2011, when Japan -India CEPA entered into force.  
There is no data available on sectoral composition of the outward FDI to India.  
WT/TPR/G/438, Pg. 5, Para - 2.4 - Regarding  plurilateral negotiations in relation to the WTO, 
Japan has actively participated in plurilateral initiatives of rule -making by like -minded countries in 
areas such as e -commerce, services domestic regulations, inv estment facilitation for development, 
and micro small and medium enterprises (MSMEs). Through these efforts, Japan aims at making 
significant contributions towards multilateral trade liberalization.  
Question 60  
As Japan has moved into a narrow format of mu ltilateral negotiations, does Japan believe that the 
other WTO members (low -income and LDCs) could adopt this format?  
i. What is Japan's stand on having a common definition which enables all the WTO 
members, and technical support along with technology transfe r from the private sector?  
ii. On technology transfer, India has observed and there is more than sufficient empirical 
evidence that such trade agreements between governments are not directly binding on 
the operations of the private sector.  
a. What role does Japan  want to play towards enabling such rule -making in the 
plurilateral formats?   
Response  
Whether or not a country is able to participate in plurilateral negotiations such as the JSI negotiations 
depends on the content of individual negotiations and the econo mic situation of each country. In 
general, it is beneficial that a large number of countries participate. We believe it is meaningful for 
low-income countries and LDCs to participate in the plurilateral negotiations as well. We do not rule 
out the possibil ity of discussing technical cooperation, including voluntary technology transfer by the 
private sector. Although there are various views on technology transfer, we would like to continue 
discussions in various forums.  
WT/TPR/G/438, Pg. 5, Para - 2.8 - In March 2015, under the leadership of the Prime Minister, 
the Council for Promotion of Foreign Direct Investment in Japan adopted the "Five Promises for 
Attracting Foreign Businesses to Japan" as important items to be addressed going forward. In 
addition, in M ay 2016, this Council adopted the "Policy Package for Promoting Foreign Direct 
Investment into Japan to Make Japan a Global Hub" to promote more FDI to make Japan an 
international trade and investment hub. The inward FDI stocks reached JPY 39.7 trillion as  of the 
end of 2020, thereby achieving the above target.  
Question 61  
India requests Japan to explain the fundamental difference between these two changes adopted by 
the Council for Promotion of FDIs in Japan in March 2015 and May 2016.  
 
i. Is this based on P rebish -Singer's theory of the "hub and spoke" model?  
ii. Has the change been to accommodate the SDG -driven GVCs?  
iii. If yes, then what would be the yardstick to measure if a firm or investment project is 
SDG compliant?  
 
Response  
i. As for details on "Five Promises for Attracting Foreign Businesses to Japan" and "Policy Package 
for Promoting Foreign Direct Investment into Japan to Make Japan a Global Hub", please refer to 
English -translated version of each document from the following link.  
(Five Promises for  Attracting Foreign Businesses to Japan)  
http://www.invest -japan.go.jp/documents/pdf/promise_en.pdf  
 WT/TPR/M/438/Add.1  
 
- 230 - 
 
(Policy Package for Promoting Foreign Direct Investment into Japan to Make Japan  a Global Hub)  
http://www.invest -japan.go.jp/documents/pdf/policy_package_en.pdf  
 
ii. We are not sure what it is meant by "the SDG -driven GVCs", but as for details on "Policy  Package 
for Promoting Foreign Direct Investment into Japan to Make Japan a Global Hub", please refer to 
English -translated version of it from the link above.  
WT/TPR/G/438, Pg's. 5 & 6, Para - 2.10 - The Japanese Government also works on the 
enhanced promot ion of inward FDI along with the "Main Policy Agenda for Promoting Foreign Direct 
Investment in Japan" adopted in April 2022 at the Working Group for Creating Medium and Long -
term Strategy to Promote Foreign Direct Investment in Japan. The Agenda prioritiz es strategic 
initiatives based on the Strategy ("Strategy for Promoting Foreign Direct Investment in Japan") and 
upholds three pillars: (i) Strengthening "investment in human capital" through inward FDI; (ii) 
Promotion of DX, GX, and start -ups through inwa rd FDI; (iii) Improving the living environment of 
foreign nationals to promote FDI in Japan.  
Question 62  
What parameters are taken for evaluation of the three pillars under the Strategy for Promoting 
Foreign Direct Investment in Japan?  
 
Response  
As for evaluation of the Strategy, please refer to the following link.  
(Strategy for Promoting Foreign Direct Investment in Japan, page 22 -25) 
http://www.invest -japan.go.jp/documents/pdf/ en_chuchoki.pdf . 
Question 63  
Does Japan take into consideration the overall economy -wide impact of such FDIs or only narrow 
focus on the firm/project/business approach?  
 
Response  
As for the background ideas and basic concept of recent inward FDI policy, please refer to English -
translated version of "Main Policy Agenda for Promoting Foreign Direct Investment in Japan" and 
"Strategy for Promoting Foreign Direct Investment in Japan" f rom the following link.  
(Main Policy Agenda for Promoting Foreign Direct Investment in Japan)  
http://www.invest -japan.go.jp/documents/pdf/jutenjikou_en.pdf . 
(Strategy for Promoting Foreign Direct Investment in Japan)  
http://www.invest -japan.go.jp/documents/pdf/en_chuchoki.p df. 
Question 64  
What are the modes of evaluation of April 2022 the FDIs which uphold three pillars, is it based on 
"surveys" (mainly driven by the private sector) or census data, with later done by the public sector?  
 
Response:  
"Main Policy Agenda for Prom oting Foreign Direct Investment in Japan" was compiled in April of last 
year to move further "Strategy for Promoting Foreign Direct Investment in Japan" and to achieve its 
targets. As for evaluation of the "Strategy for Promoting Foreign Direct Investment in Japan", please 
refer to the following link.  
(Strategy for Promoting Foreign Direct Investment in Japan, page 22 -25) 
http://www.invest -japan.go.jp/documents/pdf/en_chuchoki.pdf . 
WT/TPR/G/438, Pg.6, Para – 3.4  
Japan has contributed to making new rules and practices through plurilateral Joint Statement 
Initiatives (JSIs) on E -commerce, Services Domestic Regulation, Investment Facilitation for 
Development, and MSMEs. As for negotiat ions related to e -commerce, concerned ministers from 
Japan, Australia, and Singapore, co -conveners of the WTO Joint Initiative on E -commerce, issued a 
joint statement that highlights the way to progress toward the conclusion of the negotiation. In the 
post-COVID -19 era, the realization of Data Free Flow with Trust (DFFT) is crucial for harnessing the 
increasingly important digital sector, and at the WTO, e -commerce negotiations are one of the most 
important themes and it is crucial to accumulate results in order to further advance negotiations. As 
a co-convener for e -commerce negotiations, Japan continues to open the door to wider participation 
of Member countries and accelerate negotiations with the goal of creating high -level rules that WT/TPR/M/438/Add.1  
 
- 231 - 
 
  include the free fl ow of data. With these efforts, Japan has high expectations for the improvement 
and enhancement of the business climate and trade environment worldwide.  
Question 65  
How does Japan plan to achieve its objective of wider participation from WTO Member countri es in 
digital services trade in light of its regulatory importation policy that requires regulatory 
authorisation from foreign companies at the time of testing or demonstrating their products?  
 
Response  
The regulatory importation policies currently in plac e impose no more restrictions than are necessary 
to achieve the objectives of each policy. We will continue our discussions on the WTO e -commerce 
negotiations and the discussion on the moratorium on imposing tariffs on electronic transmissions 
in order to make it an inclusive agreement that involves developing countries.  
 
Question 66  
How does Japan aim to achieve its expectations of improving and enhancing business and trade 
worldwide against the backdrop of its regulatory importation policy that delays tes ting, launching, 
and obtaining local customer feedback by foreign companies, thereby giving an edge to domestic 
companies?  
 
Response  
Although we are not aware of any regulatory importation policy on foreign companies that have 
resulted in an advantage for domestic companies, according to a survey responded by foreign 
companies resident in Japan, difficulty in securing human resources (e.g., engineers and linguists), 
complexity of administrative procedures (e.g., the length of time it takes from administrati ve 
application to approval), and difficulty with regulations and licensing systems (e.g., legal restrictions, 
product standards and inspections) are generally identified as impediments to doing business in 
Japan..  
In the "Basic Policy on Economic and Fisca l Management and Reform 2021" released in June 2021, 
Japan stated that it will further promote foreign direct investment in Japan in order to bring in 
advanced human resources, technologies, and funds from overseas, combine them with Japan's 
technological and R&D capabilities, create innovation, and strengthen supply chains. The 
government continues to emphasize the importance of attracting foreign companies to Japan as a 
means of contributing to the development of Japan's economy and society. As an example , JETRO 
continues to support foreign companies in establishing bases in Japan and expanding their 
businesses in the Japanese market.  
 
Reference:  
JETRO Invest Japan Report 2021  
https://www.jetro.go.jp/en/invest/investment_environment/ijre/report2021/ch2/sec3.html  
https://www.jetro.go.jp/en/invest/investment_environment/ijre/report2021/ch3/sec1.html  
Question 67  
How does Japan intend to integrate their MSME and international trade policy?  
 
Response  
Japan participates in WTO Joint St atement Initiative on Micro, Small and Medium -sized Enterprises 
(MSMEs) to support MSMEs' participation in global trade. Also, Japan has concluded to date 12 RTAs 
with MSME -related provisions.  
WT/TPR/G/438, Page 7 and 8, Para 3.12:  
 
Japan has been actively continuing its participation in discussions related to various items of the 
development agenda such as Aid for Trade, recognizing that integrating developing and least -
developed countries in the multilateral trading system is one of the essential roles of the WTO. 
Specifically, through the implementation of the Trade Facilitation Agreement (TFA), Japan provided 
around USD 8.8 million in 2020 to various countries for the purpose of assistance and capacity  
building resources.  
 
Question 68  
Please prov ide the details of the countries, the details of the specific amount according to each 
country and all corresponding details for the purpose of assistance and capacity  building resources?  WT/TPR/M/438/Add.1  
 
- 232 - 
 
Response  
Although it is difficult to provide detailed breakdown, the  regional distribution of Japan's bilateral 
ODA performance in 2020 is 60.4% for Asia, 11.4% for the Middle East and North Africa, 7.9% for 
Sub-Saharan Africa, 3.8% for Latin America, 1.9% for Oceania, 0.5% for Europe, and 14.0% for 
multi-regional aid and other assistance.  
 
WT/TPR/G/438, Pg 11, Para – 4.5 
In this regard, Japan has been taking the lead in working on initiatives related to quality 
infrastructure, digital economy, and woman's economic empowerment. Japan has also been taking 
an initiative to im plement APEC projects including competition policy in FTAs/RTAs, services, digital 
economy and food security.  
Question 69  
How does Japan envisage implementing APEC -specific commitments in their FTAs?  
 
Response  
To date, Japan has signed 21 FTAs/EPAs and related initiatives, including the CPTPP and the RCEP 
Agreement. These include traditional elements such as the reduction and elimination of tariff and 
non-tariff barriers, but also investment, cooperation, capaci ty building and rules on various fields 
such as e -commerce, intellectual property, government procurement, state -owned enterprises and 
others. These areas are also consistent with APEC commitments and principles.  
WT/TPR/G/438, Pg16, Para – 6.6  
Under the A ct on the Establishment of the Digital Agency, the Digital Agency officially started 
business in September 2021. Each ministry, agency, and local government in Japan has been 
promoting digitalization with separate responsibility in the past but now the Dig ital Agency has 
strong powers of comprehensive coordination, such as the power to make recommendations to other 
ministries and agencies.  
Question 70  
Could Japan confirm if the Digital Agency has the right to regulate foreign service suppliers as well 
and if it does, are there any differences in the way the Agency would treat a domestic and a foreign 
service supplier?  
 
Response  
As a control tower, the Digital Agency will be tasked with the prompt and prioritized execution of 
administrative affairs related to the formation of a digital society.  
Comprehensive coordination and recommendations, when necessary for this purpose, will be made 
to each ministry, etc. and the heads of each ministry, etc. that implement various measures for the 
formation of a digital society.  
 
WT/TPR/G/438, Pg.16, 6.9  - The Intellectual Property Strategy Headquarters also finalized "The 
Intellectual Property Strategic Program 2022" in June 2022. At the beginning stage of this Program, 
we organized the basic recognition of the c urrent situation in Japan that should be taken into account 
concerning IP strategies. In the future, important policy issues and measures in promoting IP 
strategies will be summarized in eight priority policies: (1) Enhancing the IP ecosystem of start -ups 
and universities; (2) Strengthening the investment and utilization promotion mechanism of IP and 
intangible assets; (3) Promoting the utilization of standard strategies; (4) Improving the data 
distribution and utilizing environment for the realization of a  digital society; (5) Content strategies 
in the digital age; (6) Enhancing the IP utilization in SMEs, regional (areas), and agricultural 
sciences; (7) Strengthening systems, operations, and human resource foundations that support the 
IP utilization; and ( 8) Restarting the Cool Japan initiative in anticipation of post -COVID. The steady 
implementation of policies based on this plan is required in the future in order to transform our 
society into an economic society where new players including individuals wit h a passion for new idea 
creation and innovation in Japan can fully utilize society's IP.  
Question 71  
What legal provisions does Japan have to prevent IP infringement in the digital environment?  
 WT/TPR/M/438/Add.1  
 
- 233 - 
 
  Response  
The Copyright Act stipulates the following provisi ons as countermeasures against piracy on the 
Internet.  
• Provisions regulating the uploading of works without the permission of the copyright holders ; 
• Provisions regulating the downloading of illegally uploaded music and videos while knowing 
that they have been illegally uploaded ; 
• Provisions regulating the downloading of illegally uploaded copyrighted works (manga, 
books, etc.) while knowing that they have been illegally uploaded under certain conditions ; 
• Provisions regulating the operation of reach sit es and the provision of links to reach sites . 
 
  WT/TPR/M/438/Add.1  
 
- 234 - 
 
28  RUSSIAN FEDERATION  
TRADE POLICY REVIEW – 
REPORT BY JAPAN  
 
2 TRADE AND INVESTMENT POLICY  
2.1 Trade policy  
 
Page 4, para 2.5: According to the Report, "[ w]ith the rise of protectionist movements including 
trade -restrictive measures linked to the COVID -19 pandemic and a heightened perception of risk 
associated with supply chain disruptions, Japan welcomes the political commitments made at 
international fora such  as G7, G20, OECD, and APEC to address these issues. Japan is strengthening 
cooperation with like -minded countries to ensure more diversified and stable supply sources 
including the dimension of economic security, while keeping in mind the maintenance and expansion 
of free and fair economic zones and consistency with existing international laws. In this context, 
Japan fully supports the WTO's peer review system of Trade Policy Review, which aims at curbing 
protectionist measures by achieving greater transpa rency in and understanding of Member countries' 
trade policies and practices.  
 
Question № 1 
Please specify the existing "free and fair economic zones" and Japan's plans to further expand them.  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
3 MULTILATERAL INITIATIVES  
3.1 WTO  
Page 6, para 3.4:  According to the Report, "Japan has  contributed to making new rules and 
practices through plurilateral Joint Statement Initiatives (JSIs) on E -commerce, Services Domestic 
Regulation, Investment Facilitation for Development, and MSMEs. As for negotiations related to e -
commerce, concerned min isters from Japan, Australia, and Singapore, co -conveners of the WTO 
Joint Initiative on E -commerce, issued a joint statement that highlights the way to progress toward 
the conclusion of the negotiation. In the post -COVID -19 era, the realization of Data Fr ee Flow with 
Trust (DFFT) is crucial for harnessing the increasingly important digital sector, and at the WTO, e -
commerce negotiations are one of the most important themes and it is crucial to accumulate results 
in order to further advance negotiations. As  a co-convener for e -commerce negotiations, Japan 
continues to open the door to wider participation of Member countries and accelerate negotiations 
with the goal of creating high -level rules that include the free flow of data. With these efforts, Japan 
has high expectations for the improvement and enhancement of the business climate and trade 
environment worldwide".  
 
Question № 2 
Please elaborate on the progress and further plans for the realization of the Data Free Flow with 
Trust initiative.  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 3 
Please elaborate on the ma in challenges facing the realization of the Data Free Flow with Trust 
initiative.  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 4 
Please clarify whether there are respective domestic -level privacy and data governance policies in 
place in Japan or a formal strategy to guide respective policy development and implemen tation. If 
yes, could Japan provide a link to such legislation/ program document?  WT/TPR/M/438/Add.1  
 
- 235 - 
 
  Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
4.2 Other regional activities  
4.2.1 Asia -Pacific Economic Cooperation (APEC)  
 
Page 11, para 4.3:  According to the Report, "Japan remains committed to APEC's mission of 
regional economic integration and to the  Bogor Goals of free and open trade and investment. In 
2010, APEC Leaders set forth the Yokohama Vision, which is a comprehensive, forward -looking 
framework for achieving growth and prosperity in the Asia -Pacific region in the 21st Century".  
The same para graph states that  "Japan has continued to take a leading role in realizing this vision 
in close cooperation with other member economies. Against rising protectionist movements including 
unfair trade practices, Japan solidifies its resolve toward the promot ion of free trade".  
 
Question № 5 
What were the main identified successes and failures in the process of implementation of the 
Yokohama Vision?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 6 
How does Japan define "unfair trade practices"? Is there an internationally recognized definition? 
Please describe the scope of "unfair trade practices".  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
4.2.3 Japan's bil ateral activities  
Page 12, para 4.7: According to the Report, "[a]t the summit meeting in September 2018, the 
former Prime Minister Abe and the former President Trump agreed to enter into bilateral trade 
negotiations on the Japan -United States Trade Agreement and the Japan -United States Digital Trade 
Agreement. At the summit meeting in September 2019, the two leaders confirmed that both sides 
reached final agreement. These agreements were signed in October and were then approved by the 
National Diet o f Japan in December 2019. Following the completion of respective domestic 
procedures, both agreements went into effect on 1 January 2020".  
 
Question № 7 
Please clarify whether Japan has already notified the Japan -United States Trade Agreement  to the 
WTO? If there was no notification regarding the mentioned Agreement, please clarify when the 
missing notification will be provided by Japan.  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Page 12, para 4.12:  The Report states that "the Japan -Russian trade volume between Japan and 
the Russian Federation in 2021 recovered from the decline caus ed by COVID -19 in 2020, and the 
trade volume from January to December increased 35.7% year -on-year (the total trade volume in 
the statistics for January -December 2021 amounted to approximately JPY 2.4055 trillion). The 
volume of direct investment from Japa n to the Russian Federation increased from JPY 239.5 billion 
in 2019 to JPY 247.6 billion in 2020. Since February 2022, in response to Russian Federation's 
aggression against Ukraine, Japan has imposed strong sanctions against the Russian Federation, in 
coordination with the international community, including the G7".  
 
Question № 8 
Please specify the legal basis in international law for imposition of unilateral extraterritorial 
prohibitions and restrictions.  WT/TPR/M/438/Add.1  
 
- 236 - 
 
Response  
In light of Russia's aggressi on against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 9 
Could Japan describe particular criteria and legal procedures f or making a decision on the imposition 
of anti -Russian unilateral restrictive measures? Does this procedure include transparent and settled 
legal criteria or the decision is made on a case -by-case basis?  
 
Response  
In light of Russia's aggression against U kraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 10 
Russia would appreciate information as to how Japan ensures the absence of  negative economic 
effects from anti -Russian unilateral restrictive measures for third countries.  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
4.2.2 Indo -Pacific Economic Framework for Prosperity (IPEF)  
Page 11, para. 4.6: According to the Report, "[in May 2022, the United States hosted a summit -
level meeting on the launch of the Indo-Pacific Economic Framework (IPEF), which Prime Minister 
Kishida, US President Joseph Biden and Indian Prime Minister Narendra Modi attended in person, 
while summit -level and cabinet -level representatives from 10 other countries attended online. Since 
its launch, Japan has been fully committed to intensive discussions among the 14 members, which 
resulted in their consent to issuing ministerial statements on trade, supply chains, clean economy, 
and fair economy. Japan welcomes the launch of the IPEF as a  powerful demonstration of the United 
States' commitment to the Indo -Pacific region and will continue to crystallize the initiative".  
 
Question № 11 
In Japan's view, how does the Indo -Pacific Economic Framework correspond with other regional 
undertakings and fora, including APEC?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
5 TRADE AND  DEVELOPMENT  
5.1 Aid for Trade  
Page 14, para 5.1:  The Report states that "[s]ince Aid for Trade (AfT) initiatives contribute to 
enhancing the trade capacities of developing countries, Japan continues to provide various measures 
for AfT to this end".  
 
Question № 12 
 Could Japan elaborate on the key focus areas of assistance provided by Japan to developing countries 
and LDCs within the framework of the Aid  for Trade initiatives?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Page 14, para 5.3:  The Report states that "given the successful results of the above -mentioned 
first initi ative, Japan announced a new AfT Strategy, "Development Initiative for Trade 2009" in July 
2009. Its main pillar was USD 12 billion of financial assistance for trade -related projects including 
trade, production and distribution infrastructure for three yea rs from 2009 to 2011. During the 
designated period (2009 -11) of this initiative, the total sum of financial assistance amounted to USD 
23.36 billion, which reached 195% of the target, well surpassing the amount of the first initiative. 
Despite the fact tha t no additional development initiative has been launched since then, Japan has 
continuously expanded its assistance and considers Aid for Trade as important to help beneficiary 
countries meet the new challenges they face in the regional and global economy" .  WT/TPR/M/438/Add.1  
 
- 237 - 
 
  Question № 13 
Does Japan plan to update the "Development Initiative for Trade 2009" or introduce any additional 
development initiatives?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engag e with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 14 
What are the key focus areas of assistance provided by Japan to developing countries and LDCs 
within the framework of the Aid for Trade initiative?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
6.2 Digital transformation  
Page 16, para 6.5:  According to the Report, "the Basic Act stipulates the Japan's basic digital policy 
regarding the formulation  of principles and measures and requires the Japanese Government should 
quickly implement measures with priority for the formation of a digital society. In the Priority Policy 
Program for Realizing Digital Society (decided by the Cabinet in June 2022), amo ng the important 
tasks set forth is to urge almost all residents in Japan to obtain their Individual Number Cards ("My 
Number Card") and to encourage the use of the Individual Number Cards as health insurance cards 
and other card functions in the future, s uch as use as driver's licenses and residence cards".  
 
Question № 15 
How would Japan ensure the safety of residents' data when implementing the digital transformation?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
6.8 Climate change and environmental sustainability  
Page 20, para 6.27:  According to the Report, the Japanese Government has accelerated taking 
measures towards the reduction of GHG emissions and stipulated future directions. These include, 
among others, the establishment of the Sixth Strategic Energy Plan, revision to the Plan for Global 
Warming Countermeasures, revision to  Japan's Long -Term Strategy under the Paris Agreement.  
 
Question № 16 
Please, specify domestic support measures envisaged under the above -mentioned  documents with 
an aim to promote climate -smart agriculture and renewable energy.  
 
Response  
In ligh t of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 17 
Please provide a comprehensive list of trade measures adopted by Japan since its last Trade Policy 
Review with an aim to promote decarbonization and environmental protection.  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 18 
Could Japan elaborate more on the environmental/sustainability criteria that the foreign economic 
operators need to compl y with? Which documents do set these criteria?  
 
Response:  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 WT/TPR/M/438/Add.1  
 
- 238 - 
 
TRADE POLICY REVIEW –REPORT BY THE SECRETARIAT  
 
SUMMARY  
Page 9, para 14:  According to the Report, "Japan offers preferential tariff treatment to 131 
developing economies under its GSP scheme. The GSP scheme is revised every 10 years; the last 
revision took place in March 2021, when the scheme was extended until 2031. Imports under Japan's 
GSP scheme have sharply fallen during the past years, most notably due to the graduation of 
important former beneficiaries. In 2020 and 2021, Bangladesh, Cambod ia, and Myanmar were the 
main beneficiaries".  
 
Question № 19 
Does Japan provide developing and least -developed economies with a transitional period after their 
graduation (gradual withdrawal of preferences)?  
 
Response  
In light of Russia's aggre ssion against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
SUMMARY  
Page 9, para 15:  According to the Report, "the Foreign Exchange and Foreign  Trade Act (FEFTA) 
and its implementing regulations remain the main legal instrument that governs foreign investment 
in Japan. The FDI framework is liberal, with only few sectoral restrictions (e.g. broadcasting, radio, 
and telecommunications), but a scree ning requirement for foreign investment is in place. Prior 
notification is required for industrial sectors in national security, public order, or other specifically 
designated industries. An amendment to the FEFTA, which entered into force in 2020, lowered  the 
screening threshold from 10% in company shares to 1%. The amendment also introduced various 
exemptions from the prior notification required for stock purchases. An exemption from the prior 
notification filings is available for foreign financial instit utions and accredited general investors, 
including sovereign wealth funds.  
 
Question № 20 
Does Japan plan for any degree of easement for the foreign FDI  in sectors such as broadcasting, 
radio, and telecommunication?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to  this question.  
 
SUMMARY  
Page 11, para 25:  The Report by the Secretariat states that "Japan is a party to the WTO 
Agreement on Government Procurement. During the review period, the basic rules on government 
procurement remained unchanged. Japan promotes gr een procurement and participation of SMEs in 
the market. Despite the principle of non -discrimination in all procurement activities, foreign 
companies continue to retain a low share in the public procurement market. In response to the 
COVID -19 outbreak, Jap an adopted several policies relating to government procurement to provide 
flexibility concerning the government procurement process, including modification of delivery times 
and contract amounts, the quick disbursement to contractors, and a revision of the  reference price 
for upcoming tenders".  
 
Question № 21 
Could Japan elaborate on its plans, if any, towards increasing the share of foreign companies in the 
public procurement market?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a bu siness as usual manner in the WTO. Therefore we cannot respond to this question.  
 WT/TPR/M/438/Add.1  
 
- 239 - 
 
  1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.4 Structural reforms and privatization  
 
Page 17, para 1.14:  According to the Report, "since 2013, key structural r eforms have included (i) 
stabilizing the size of the labour force by boosting the participation of women and older people; (ii) 
enhancing Japan's integration into the world economy through trade agreements; and (iii) improving 
the business climate by upgra ding corporate governance, enhancing labour flexibility and mobility, 
promoting venture capital investment, and improving policies for small and medium -sized 
enterprises".  
 
Question № 22 
Please provide examples of the most successful practices i n terms of improving the business climate.  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
2 TRADE AND INVESTMENT REGIMES  
2.1 General Framework  
 
Page 25, para 2.3 : The Report states that "Japan's policy objectives place great emphasis on 
national and economic security issues. The new Act for the Promotion of Ensuring National Security 
through Integrated Implementation of Economic Measures (Economic Security Promotion Act), 
adopted in May 2022, provides for a framework for ensuring a stable supply of "key products" and 
"essential infrastructure services", enhancing development of "advanc ed critical technologies" 
(Article 2.2), and preventing disclosure or divulgence of inventions that might be detrimental to 
national security through patent procedures. As at October 2022, implementing regulations were 
under preparation".  
 
Question № 23 
Could Japan clarify the definitions of 'key products' and 'advanced critical technologies'?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the  WTO. Therefore we cannot respond to this question.  
 
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
 
Page 27, para 2.10:  According to the Report, "Japan grants at least MFN treatment to all WTO 
Members with exception to th e Russian Federation and a few other countries and territories. MFN 
treatment to the Russian Federation was suspended on 21 April 2022 following the start of the war 
in Ukraine4. […] The withdrawal of MFN treatment to the Russian Federation was accompanied by 
various sanctions, both related to exports and imports (Sections 3.1.6 and 3.2.3)".  
 
Question № 24 
How does Japan explain the unilateral suspension of MFN treatment accorded to the Russian 
Federation in light of Japan's WTO obligat ions?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
 
4  (Footnote 9 ) The legal instrument is "Revocation of Tariff Concessions on Goods Originating in the 
Russian Federation".  WT/TPR/M/438/Add.1  
 
- 240 - 
 
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
 
Page 28, para 2.13:  The Report states that "at the 12th Ministerial Conference in Geneva, Japan 
underlined that the WTO, in a rapidly changing environment, must respond to the need for rule -
making, by launching and co nducting negotiations in a flexible manner among like -minded Members. 
Furthermore, it noted that against the background of the war in Ukraine, WTO Members should 
address the issues of food security and supply chains. Japan also called upon Members to 
demon strate willingness to reach a meaningful and effective agreement on fisheries subsidies".  
 
Question № 25 
As stated in the Report, the withdrawal of MFN treatment to the Russian Federation was accompanied 
by various sanctions, both related to exports and imports (Sections 3.1.6 and 3.2.3). Restrictive 
measures include, among others:  
− prohibitions to provide technical assistance, brokering services or other services related 
to certain goods, including agriculture goods, for any sale, supply  or transfer of those 
goods ;  
− prohibitions to provide financing or financial assistance related to certain goods, including 
agriculture goods, for any sale, supply or  transfer of those goods.  
− prohibitions to provide insurance and reinsurance for any sale, supply  or transfer of those 
goods.  
− financial restrictions on Russian Agriculture Bank (Rosselkhozbank) assets, as well as 
prohibitions to deal with their assets.  
 
Can Japan confirm that these unilateral sanctions imposed by Japan against the Russian Federation 
in 2022 do not disrupt global and regional supply chains, do not lead to the supply shortages of agri -
food, do not lead to increased world prices on food, fertilizers and fuels, and increased inflation? 
Please explain the rationale.  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
2.4.1  Investment framework  
 
Page 34, para 2.31:  According to the Report, "FDI is generally restricted in sectors such as 
broadcasting, radio, and telecommunications (Table 2.5). In broadcasting and radio, investment is 
reserved for Japanese nationals".  
 
Questi on № 26 
Is Japan planning for any degree of restrictions' easement in FDI in broadcasting, radio and 
telecommunications sectors?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
2.4.1 Investment framework  
 
Page 34, para 2.32:  According to the Report, "on 8 April 2022, the Government announced the 
prohibition of new Japanese investment in the Russian Federation, in line with measures taken by 
other G7 nations".  
 
Question № 27 
How does Japan justify the prohibition on investments in the Russian Federation in light of Japan's 
GATS commitments?  
 WT/TPR/M/438/Add.1  
 
- 241 - 
 
  Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. The refore we cannot respond to this question.  
 
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
2.4.2 Business environment  
 
Page 35, para 2.37:  The Report by the Secretariat states that "since the previous Review, the 
following new investment -related prom otion policies and strategies have been adopted: the Strategy 
for Promoting Foreign Direct Investment in Japan (2 June 2021), and the Main Policy Agenda for 
Promoting Foreign Direct Investment in Japan (20 April 2022)".  
 
Question № 28 
Could Japa n elaborate on the difference between these two investment -related promotion policies?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Theref ore we cannot respond to this question.  
 
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
2.4.2 Business environment  
Page 35, para 2.38:  The Report states that "the 2012 Act for Promotion of Japan as an Asian 
Business Center remained unchanged during t he review period. Under this Act, various incentives 
are provided to encourage investment in establishing R&D and regional headquarters. This Act 
provides the following incentives to enterprises that acquired certification from the competent 
minister and n ewly engage in research and development or supervisory business in Japan: 
accelerated procedures under the FEFTA, shortened examination of patent and residency 
applications, and assistance for fund raising. Other investment incentives are (i) assistance fo r 
fundraising by the Small and Medium Business Investment and Consultation Co. Ltd., applicable to 
SMEs (this also covers small and medium -sized stock companies with capital not less than JPY 300 
million); (ii) acceleration of patent examinations; (iii) sh ortened investment procedures; and (iv) 
acceleration of the status of residency examinations".  
 
Question № 29 
In Japan's view, which practices and investment incentives were proven the more successful?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. T herefore we cannot respond to this question.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Tariffs  
3.1.4.1 MFN applied tariff  
 
Page 40, para 3.22:  According to the Report, "Japan's MFN applied tariff structure remains 
complex. With a total of 272 tariff rates, there are 136 different ad valorem rates, 75 different 
specific rates, 29 different alternate rates, and 24 different compound rates, as well  as some other 
types of duties (4 differential duties and 4 sliding duties). The FY2022 tariff schedule comprised 
9,467 lines, excluding in -quota rates (compared to 9,181 in FY2019) at the HS 9 -digit level of the 
HS22 nomenclature (Table 3.1).28 Of all tar iff lines, 92.7% involve ad valorem rates (including duty -
free lines, which represent 40.9% of all lines). The remaining 7.3% (i.e. 689 lines) are non -ad 
valorem rates (Chart 3.1); they apply mainly to fats and oils, footwear, prepared foods, mineral 
produ cts, live animals and animal products, vegetables, and textiles and clothing (Chart 3.2)".  
 
Question № 30 
Please elaborate whether Japan plans any simplifications of the MFN applied tariff structure?  
 WT/TPR/M/438/Add.1  
 
- 242 - 
 
Response  
In light of Russia's aggression aga inst Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Tari ffs 
3.1.4.1 MFN applied tariff  
 
Page 44, para 3.27: The Report states that "[…] furthermore, the authorities state that Japan 
revoked the tariff concessions on goods originating in the Russian Federation under the General 
Agreement on Tariffs and Trade 19 94 on 21 April 2022 (to be implemented until 31 March 2023)".  
 
Question № 31 
How does Japan justify the revocation of tariffs concessions on goods originating in the Russian 
Federation in light of Japan's MFN obligations?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 32 
Please, provide the full list of goods origin ating in the Russian Federation, in respect to which tariffs 
concessions, were revoked.  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Theref ore we cannot respond to this question.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6 Import prohibitions, licensing, and quotas  
3.1.6.1 Import prohibitions  
 
Page 49, para 3.41: The Report states that "in 2022, Japan imposed an import ban on certain 
goods from the Russian Federation (e.g. machines, alcoholic beverages, and wood)".  
 
Question № 33 
Please, provide the full list of goods subject to the above -mentioned  impor t ban.  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 34 
How does Japan j ustify the above -mentioned  import ban in light of Japan's WTO obligations under 
GATT Art. I, Article III and Article XI?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business a s usual manner in the WTO. Therefore we cannot respond to this question.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Exports  
3.2.3 Export prohibitions, restrictions, and licensing  
3.2.3.1 Export prohibitions  
 
Page 53, para 3.63:  The Report by the Secretariat states that "reflecting on the war in Ukraine, 
Japan imposed export measures against the Russian Federation and Belarus".  
 WT/TPR/M/438/Add.1  
 
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  Question № 35 
How does Japan justify the ban on export of certain goods to Russia in light o f Japan's WTO 
obligations under GATT Art. I, Article III and Article XI??  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 36 
How does Japan consider its restrictions on export of goods to certain persons set forth in the 
Resolutions of the Cabinet of Ministers5 in light of Japan's WTO obligations?  
 
Response  
In light of Russia' s aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question № 37 
How does Japan justify its Resolution of the Cabinet  of Ministers of July 5, 2022 "On measures in 
connection with the situation in Ukraine"6 requiring obtaining permission for providing trust, 
accounting, auditing and management consulting services for Russia in light of Japan's GATS 
commitments?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Exports  
3.2.4 Export support and promotion  
3.2.4.4 Export promotion  
 
Page 56, para 3.78:  According to the Report, the Japan External Trade Organization (JETRO ) 
promotes exports from Japan by providing consulting services to companies, helping them 
participate in international trade fairs, and other activities aimed at promoting exports. It is also 
stated that for the FY2021, the JETRO's budget was JPY 54,002 mi llion. 
 
Question №  38 
Please, confirm whether JETRO provides financial support to exporters as part of other export 
promotion activities?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage  with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
Question №  39 
Could Japan clarify what are the funding sources for the JETRO's budget?  
 
Response  
In light of Russia's aggression against Ukraine , Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
5 Resolution of the Cabinet of Ministers of Japan of 1 March 2022 "On measures in connection with the 
situation in Ukraine " , available at: https://www.mofa.go.jp/mofaj/files/100308180.pdf ; Resolution of the 
Cabinet of Ministers of Japan of 25 March 2022 "On measures in connection with the situation in Ukraine ", 
available at: https://www.mofa.go.jp/mofaj/files/100321305.pdf ; Resolution of the Cabinet of Ministers of 
Japan of  10 May 2022 "On measures in connection with the situation in Ukraine:, ava ilable at: 
https://www.mofa.go.jp/mofaj/files/100341988.pdf ; Resolution of the Cabinet of Ministers of Japan of 5 July 
2022 "On measures in connection with the situation in Ukraine ', availabl e at: 
https://www.mofa.go.jp/mofaj/files/100366228.pdf ; Resolution of the Cabinet of Ministers of Japan of 
26 September 2022 "On measures in connection with the situation in Ukraine ", availab le at: 
https://www.mofa.go.jp/mofaj/files/100397005.pdf .  
6 Resolution of the Cabinet of Ministers of Japan of  5 July 2022 "On measures in connection with the 
situation in Ukraine ", availabl e at: https://www.mofa.go.jp/mofaj/files/100366228.pdf .  WT/TPR/M/438/Add.1  
 
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3.2 Measures Directly Affecting Exports  
3.2.5 Export finance, i nsurance, and guarantees  
 
Page 56, para 3.83:  According to the Report, the Nippon Export and Investment Insurance (NEXI ) 
carries out trade and investment insurance activities with the objective of breaking even financially. 
NEXI offers several insurance products and covers both political and commercial risks. It is also 
reported that the Japan Bank for International Cooper ation (JBIC), apart from other activities 
provides export loans (in FY2021 they accounted for 3% of all committed loans, investments and 
guarantees).  
 
Question № 40 
Can Japan confirm that the above -mentioned  domestic support measures are WTO -comp atible?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
3.3.2 Standards and other technical req uirements  
3.3.2.3 Technical regulations  
 
Page 63, para. 3.107: The Report states that "the authorities indicate that no data are available 
on the number of technical regulations in force".  
 
Question № 41 
Could Japan indicate the key technical regulations in force that apply to agri -food products?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond t o this question.  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.4 Domestic support  
 
4.1.1.4.1 General support programmes  
Page 102, para. 4.20: According to the Report, "[d]uring  the review period, the Government 
launched a Strategy for Sustainable Food System, MeaDRI (Measures for Achievement of 
Decarbonization and Resilience with Innovation) in May 2021, and the Act on Sustainable Food 
System, MeaDRI entered into force in July 2 022. Under the Act, Japan aims to transform its 
agricultural production system to respond to climate change and decreasing biological diversity by 
reducing environmental loads including through the reduced use of fossil fuels and chemical 
pesticide/fertili zer as well as through the use of smart technology. Japan will also put emphasis on 
R&D, disseminate smart agriculture including through the facilitation of new technology introduction 
and infrastructure development in rural areas, and increase capacity  building for farmers and other 
stakeholders in the food supply chain. The authorities consider that, in order to achieve the MeaDRI's 
key performance indicators, it is essential to introduce promising new technologies, such as an 
integrated pest management, soil data management, and resource recovery from waste".  
 
Question № 42 
 Could Japan provide additional information on the total amount of support under the above -
mentioned or any other relevant programs aimed at promoting sustainable food system  and climate -
smart agriculture?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 WT/TPR/M/438/Add.1  
 
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  4.1.1.4.3 OECD indicators  
Page 105, para 4.31:  The Report states that "according to the OECD, Japan gradually reduced its 
support to agriculture during the past 10 years; however, the level of support plateaued more 
recently. In terms of a share of gross farm receipts, the PSE remains more than twice the OECD 
average. The total support estimate to agriculture was about 0.9% of Japan's GDP in 2019 -21. Due 
mainly to border measures, market price support remains the main element of producer support for 
rice, pork, and milk. As a result, average producer p rices remain higher than world reference prices, 
by around 60%".  
 
Question № 43 
Does Japan plan for further reduction of agricultural support levels?  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
4.4.3 Transport services  
4.4.3.1 Maritime transport  
 
Question № 44 
How does Japan justify  the Resolution of the Cabinet o f Ministers of December 5, 2022 "On measures 
in connection with the situation in Ukraine" banning the supply of services related to the sea 
transportation of crude oil and crude oil products derived from Russia at a price exceeding the value 
of the price t hreshold, in light of Japan's GATS commitments?"  
 
Response  
In light of Russia's aggression against Ukraine, Japan does not think it is appropriate to engage with 
Russia in a business as usual manner in the WTO. Therefore we cannot respond to this question.  
 
  WT/TPR/M/438/Add.1  
 
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29  REPUBLIC OF KOREA  
PART I: Questions Regarding the Secretariat Report  
 
Page 28(Para 2.14 )  
 
2.14. Since January 2020, Japan has been 
involved in two new dispute settlement 
cases as a complainant, against the 
Republic of Korea (DS594: Korea – 
Measures Affecting Trade in Commercial 
Vessels (second complaint)) and against 
China (DS601: China – Anti-Dumping 
Measures on Stainless Steel Products from 
Japan ). It has been involved in one case 
as respondent over this period (DS590: 
Japan – Measures Rel ated to the 
Exportation of Products and Technology to 
Korea), and in eight cases as a third party.  Question 1  
 
Could Japan explain the reason why it still 
maintains its export restriction measures on 
the three semi -conductor related materials 
(fluorinated polyimide, resist and hydrogen 
fluoride),  despite the situation where  the 
Korean government has long been insisting 
that it has fulfilled the requirements the 
Japanese government  suggested earlier as 
the preconditions for lifting its measures?  
 
Response  
(to be submitted)  
 
Page 37 -39 (Para 3.1.1)  
 
3.4. During the review period, there were 
no changes in registration requirements 
for importers, or documents needed for 
customs clearance.6 There are no fees 
required by Japan Customs for an import 
declaration; Customs charges fees for 
certain services su ch as issuing certificates 
or magnetic tapes and granting permits for 
goods examination outside of designated 
areas for both domestically produced and 
imported goods (Customs Act, Articles 69 
and 100(iii)).7  
 
3.6. Under the pre -arrival examination 
system,  importers may be notified in 
advance as to whether a customs 
inspection of the cargo will be required 
only if they submit documents to Japan 
Customs before their cargo's arrival in 
Japan. A pre -arrival declaration form must 
be submitted to the customs off ice that 
controls the customs bonded (hozei) area 
where the cargo is expected to be brought 
in. In principle, inspection of a shipment 
under the pre -arrival examination system 
is conducted in a hozei area.10 All 
importers including authorized economic 
operators (AEOs) may submit pre -arrival 
declarations before the cargo is brought 
into a hozei area. The authorities state 
that pre -arrival declaration is not 
compulsory; it is an optional measure to 
facilitate import clearance.  Question 2   
Some Korean compani es exporting to Japan say 
they are suffering from lack of predictability, with 
regard to the character and amount of information 
they're required to submit in actual process of 
customs clearance. Could you provide Japanese 
government's position in this reg ard, and if there's 
any future plan to improve relevant policies or the 
way they are applied?  
 
Response  
Japan Customs conducts necessary examinations 
and inspections on imported cargo to realize a 
safe and secure society and to ensure appropriate 
and fair collection of import duties and taxes.  
In addition to the information required to be 
submitted at the time of import customs 
clearance, Japan Customs is also utilizing advance 
cargo information obtained from the relevant 
operators to a chieve both effective and efficient 
border control and trade facilitation.  
 
Page 109 (Para 4.64)  
The 2021 SEP indicates that the 
Government will make efforts towards 
decarbonizing innovations through the 
Green Innovation Fund for the 
enhancement of compet itiveness in 
Japan's industries. JPY 2 trillion has been 
entrusted to the New Energy and Industry Question 3  
Could Japan elaborate the background of the 
Green Innovation Fund and its specific goals 
targeted to projects relating to energy, transport 
and manufacture, and households and offices?  
 
Response  
(to be submitted)  WT/TPR/M/438/Add.1  
 
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  Technology Development Organization 
(NEDO) for the use of the Government.  
The Fund targets projects relating to 
energy, transport and manufacture, 
and househo lds and offices , and it 
supports them continuously from research 
and development to implementation 
stages for up to 10 years. The Fund also 
expects to support small -scale projects 
that encourage the participation of SMEs 
and start -ups. The 2021 SEP states that, 
towards 2030, the Government needs to 
mobilize all policies in order to further 
pursue the major principles of 3E+S, 
which has been the major premise of 
energy policy(i.e. ensuring a stable and 
cost-effective energy supply and 
addressing the issue of  climate change, on 
the premise of ensuring safety). The 
Government's support measures and 
initiatives to achieve the goals set in the 
SEP are being discussed in each sector.   
 
 
PART II: Questions Regarding the Government Report   
 
Page 5 (Para 2.1.5 -6) 
 
2.5. With the rise of protectionist 
movements including trade -restrictive 
measures linked to the COVID -19 pandemic 
and a heightened perception of risk 
associated with supply chain disruptions, 
Japan welcomes the political commitments 
made at international fora such as G7, G20, 
OECD, and APEC to address these issues. 
Japan is strengthening cooperation with 
like-minded countries to ensure more 
diversified and stable supply sources 
including the dimension of economic 
security, while keeping in mind the 
mainten ance and expansion of free and fair 
economic zones and consistency with 
existing international laws. In this context, 
Japan fully supports the WTO's peer review 
system of Trade Policy Review, which aims 
at curbing protectionist measures by 
achieving greate r transparency in and 
understanding of Member countries' trade 
policies and practices.  
 
2.6. As the holder of the G7 Presidency in 
2023, Japan will host the G7 Summit in 
Hiroshima and the G7 Trade Ministers' 
Meeting in Osaka to lead the discussion on 
trade issues.  Question 4  
Korea has been participating in major 
multilateral fora including APEC, G20 and OECD 
with Japan, and we think Japan has shown 
impressive contribution and has been taking 
leading role in these fora, especially with regard 
to discussions on global trade and investment. 
On which agenda will Japan focus its policy effort 
this year in APEC, G20 and OECD?  
More specifically, as you mentioned 
"strengthening cooperation with like -minded 
countries to ensure more diversified and stable 
supply sources including the dimension of 
economic security" with "a heightened 
perception of risk associated with supply chain 
disruptions", would there be any specific form or 
direction of "multilateral supply chain 
cooperation" that Japan has in mind?  
 
Response  
(to be submitted)  
 
 WT/TPR/M/438/Add.1  
 
- 248 - 
 
Page 4 (Para 1.1.2)  
 
1.2. Among the structural challenges, the 
Japanese economy has long been facing a 
prolonged low birth rate and an aging 
population. In order to sustain and enhance 
domestic market demands, the virtuous 
cycle from income to spending, coupled with 
increasing wages to generate private 
consumption, is becoming a key factor. As a 
means to create such virtuous cycle, it is 
important to improve productivity of limited 
human resources through innovation and 
human -capital investment.  Question 5  
Low birth rate and an aging population is one of 
the major structural challenges that Korea also 
has been facing. Could Japan share its policies 
designed as countermeasures to this challenge, 
aiming at improving productivity of limited 
human resources through innovation and 
human -capital investment? Also, please provide 
its/their effect on global trade and investment.  
 
Response  
(to be submitted)  
 
 
 
  WT/TPR/M/438/Add.1  
 
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  30  KAZAKHSTAN  
1. Paragraph 3.78.  of the Secretariat Report  
The Japan External Trade Organization (JETRO) remains the official agency responsible for promoting 
exports through information, research, support for and participation in international trade fairs, and 
other activities to promote exports from, and investment in, Japan. Its annual budget in FY2021 was 
JPY 54,002 million; it has a staff of around 1,860 and has regional offices in 55 countries. JETRO 
provides an Internet matching services for Japanese agricultural and food products through the 
Japan Agricultural and Foodstuff Exports in e -Venue. The Japan Food Product Overseas Promotion 
Center, established in 2017, has a mandate to brand, raise awareness of, and boost the exports of 
Japanese agricultural, forestry, fishery, and food products and to create a strong er platform for 
overseas business -to-consumer promotions.  
 
Question  
Please explain what kind of support measures, including financial aid, are provided by JETRO as part 
of the promotion of exports to foreign markets?  
 
Response  
In principle, JETRO does not  provide direct financial support to exporters.  
 
__________