WT/REG441/1  
16 January  2023 
(23-0345) Page: 1/76 
Committee on Regional Trade Agreements   
 
 
FACTUAL PRESENTATION  
COMPREHENSIVE ECONOMIC  PARTNERSHIP AGREEMENT  BETWEEN  
THE UNITED KINGDOM  AND JAPAN  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Comprehensive  Economic  
Partnership Agreement between the United Kingdom  and Japan , has been drawn up 
by the WTO Secretariat on its own responsibility and in full consultation with the 
Parties. The factual presentation reproduces as closely as possible the terminology 
used in the Agreement and in the comments provided and does not imply official 
endorsement or acceptance by the Secretariat of such terminology. The report has 
been drawn up in accordance with the rules and procedures contained in the Decision 
for a Transparency Mechanism for Regional Trade Agreements (WT/L/671) and thus 
does not imply any value judgement by the Secretariat regarding the contents of the 
Agreement.  
Any technical questions arising  from this report may be addressed to Ms. Alena 
Fiorentino  (tel: +41 22 739 6405) . Any statistical questions arising from this report 
may be addressed to  Ms. Rowena Cabos (tel: +41 22 739 5185) and Mr. Thakur 
Parajuli (tel:  +41 22 739 5473).  
 
 
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  Table o f Contents  
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 5 
1.2   Trade in services and investment  ................................ ................................ ..................  7 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ....................  11 
2.1   Background information  ................................ ................................ .............................. 11 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  13 
3.1   Import duties and charges, and quantitative restrictions ................................ .................. 13 
3.1.1    General provisions  ................................ ................................ ................................ ...13 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 14 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 14 
3.1.3.1    The United Kingdom  ................................ ................................ .............................. 15 
3.1.3.2    Japan  ................................ ................................ ................................ .................. 17 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....20 
3.2   Rules of origin  ................................ ................................ ................................ ............ 20 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 22 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 23 
3.4.1    Standards  ................................ ................................ ................................ ............... 23 
3.4.1.1   Sanitary and phytosanitary measures  ................................ ................................ ......23 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 23 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 24 
3.4.2.1    Global safeguards  ................................ ................................ ................................ .24 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 25 
3.4.2.3    Special safeguards  ................................ ................................ ................................ 25 
3.4.2.4    Balance of payments safeguards  ................................ ................................ ............. 28 
3.4.2.5    Other safeguard measures  ................................ ................................ ..................... 28 
3.4.3    Anti-dumping and countervailin g measures  ................................ ................................ .28 
3.4.4    Subsidies and state -aid ................................ ................................ ............................ 29 
3.4.5    Customs -related procedures ................................ ................................ ...................... 31 
3.4.6    Other regulations  ................................ ................................ ................................ .....32 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ ...32 
3.5.1    Agriculture  ................................ ................................ ................................ .............. 32 
3.5.2    Wine and Shochu  ................................ ................................ ................................ .....32 
3.5.3    Motor vehicles  ................................ ................................ ................................ ......... 32 
4   PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  ................................ .........  33 
4.1   Scope and definitions  ................................ ................................ ................................ ..34 
4.2   Denial of benefits  ................................ ................................ ................................ .......34 
4.3   General provisions on trade in services and investment  ................................ ................... 35 
4.3.1    Market access  ................................ ................................ ................................ ......... 35 
4.3.2    National treatment and MFN  ................................ ................................ ...................... 35 WT/REG441/1  
 
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  4.3.3    Commercial presence  ................................ ................................ ............................... 35 
4.3.4    Performance requirements  ................................ ................................ ........................ 36 
4.3.5    Senior Management and Boards of Directors  ................................ ............................... 36 
4.3.6    Movement of natural persons  ................................ ................................ .................... 36 
4.4   Liberalization commitments  ................................ ................................ ......................... 38 
4.4.1    The United Kingdom  ................................ ................................ ................................ .38 
4.4.1. 1   MFN and horizontal commitments  ................................ ................................ ........... 38 
4.4.1.2    Sector specific commitments  ................................ ................................ .................. 39 
4.4.2    Japan  ................................ ................................ ................................ ..................... 44 
4.4.2.1    MFN and horizontal commitments  ................................ ................................ ........... 44 
4.4.2.2    Sector specific commitments  ................................ ................................ .................. 44 
4.5   Regulatory provisions  ................................ ................................ ................................ ..50 
4.5.1    Domestic regulation  ................................ ................................ ................................ .50 
4.5.2    Recognition  ................................ ................................ ................................ ............. 51 
4.5.3    Subsidies  ................................ ................................ ................................ ................ 51 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 52 
4.5.5    Other  ................................ ................................ ................................ ..................... 52 
4.5.5.1    Investment  ................................ ................................ ................................ .......... 52 
4.6   Sector specific provisions on trade in services  ................................ ................................ 52 
4.6.1   Financial Services  ................................ ................................ ................................ ....52 
4.6.2    Postal and courier services  ................................ ................................ ........................ 53 
4.6.3    Telecommunications  ................................ ................................ ................................ .54 
4.6.4    Maritime Transport  ................................ ................................ ................................ ..55 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  55 
5.1   Transparency  ................................ ................................ ................................ ............. 55 
5.2   Current payments and capital movements  ................................ ................................ .....55 
5.3   Exceptions  ................................ ................................ ................................ ................. 56 
5.3.1    General exceptions  ................................ ................................ ................................ ..56 
5.3.2    Security exceptions  ................................ ................................ ................................ ..56 
5.4   Accession and withdrawal  ................................ ................................ ............................ 56 
5.5   Institutional framework  ................................ ................................ ............................... 56 
5.6   Dispute settlement  ................................ ................................ ................................ .....57 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 59 
5.8   Government procurement  ................................ ................................ ............................ 61 
5.9   Intellectual property rights  ................................ ................................ .......................... 63 
5.10   Competition  ................................ ................................ ................................ ............. 65 
5.11   Environment and labour  ................................ ................................ ............................ 66 
5.12   Electronic commerce  ................................ ................................ ................................ .67 
5.13   Small and medium -sized enterprises  ................................ ................................ ........... 68 
5.14   Other  ................................ ................................ ................................ ...................... 68 WT/REG441/1  
 
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  5.14.1    Corporate Governance  ................................ ................................ ............................ 68 
5.14.1. 1   Good regulatory practices and regulatory cooperation  ................................ .............. 68 
5.14.2    Trade and Women's E conomic Empowerment  ................................ ............................ 69 
ANNEX 1  ................................ ................................ ................................ ........................  70 
ANNEX 2  ................................ ................................ ................................ ........................  75 
 
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Key Facts  
 
Parties to the Agreement:  United Kingdom and Japan  
 
Date of Signature:    23 October 2020  
 
Date of Entry into Force:  01 January 2021  
 
Date of Notification:   31 December 2020  
 
Full implementation:   1 April 2038  
 
 
1  TRADE ENVIRONMENT  
1.1.  The Agreement between the United Kingdom  and Japan for a  Comprehensive  Economic 
Partnership (hereinafter referred to as "the Agreement"  or the "UK-Japan CEPA" ) is one of the UK's 
38 RTAs and Japan's 1 8 RTAs as notified  to the WTO .1  
1.2.  In 2021, the UK's  GDP was estimated at USD 3.18 trillion, while that of Japan  was USD 4.93 
trillion .2 Averaged over the period 201 9-2021, the Parties' trade (goods and services) to GDP ratio3 
was 17. 4 for Japan and 28.9 for the U K.  
1.1  Merchandise trade  
1.3.  In 20 21, the U K's me rchandise exports amounted to USD 468.17  billion (2.1% of global 
exports and 14th largest exporter to the world). Imports amounted to  USD 693.77  billion (3.07% 
of global imports and 8th largest importer). In the same year Japan's merchandise exports 
amounted to USD 756.03  billion (3.39% of global exports, 5th largest global exporter) and imports 
amounted to USD 768.97  billion, (3.4% of global imports, 4th largest global importer). For bo th 
Parties, manufactures represent ed the main commodity group traded : 68.4% of UK exports and 
63.7% of imports; and 86.1% of Japan's exports and 62.2% of imports.  
1.4.  Based on 2020 trade data, the UK was Japan 's 21st largest source of imports4 (representing 
1% of Japan's  total imports) and 12th largest destination for exports5 (representing 1.7% of 
Japan 's total exports) .6 Japan  was the U K's 10th largest source of imports7 and 8th largest 
destination for exports8 (representing 1.7% and 1.8% of the U K's total imports and exports) .9 
1.5.  Chart 1.1 summarizes the trends in global and bilateral trade of the Parties for the period 
2018-2020. The U K experienced a trade deficit  with the world during the surveyed period, while 
the evolution of Japan's global trade shows a trade deficit for 2018 -2019 and a trade surplus for 
2020. On bilateral trade the data appear to indicate a steady trade deficit for the UK .  
 
1 RTAs in goods and services counted as one and only agreements in force, notified to the WTO.  
2 Source: WTO Trade Profiles 202 2. 
3 The GDP ratio indicates the percentage of the GDP represented by trade. The value of trade 
corresponds to the total of trade in goods and services (exports plus imports), on a BOP basis.  
4 The five top sources of imports for Japan were: China (25.8%); the  EU(27) (11.4%); the US (11.3%); 
Australia (5.6%); and other Asia, n .e.s. (4.2%).  
5 The five top destination of exports from Japan were: China (22%); the US (18.5%); the EU(27) 
(9.2%); Rep. of Korea (7%); and other Asia, n .e.s. (6.9%).  
6 Source: UNSD  Comtrade for Japan, excluding intra -EU trade.  
7 The five top sources of imports for the UK were: the EU(27) (45.8%); China (10.8%); the US (9.2%); 
Russia (3.9%); and Hong , Kong, China  (3.3%).  
8 The five top destination of exports from the UK were: the EU(27) (46.1%); the US (14.2%); 
Switzerland (4.8%); China (4.6%); and Hong , Kong, China  (2.6%).  
9 Source: Data provided by the UK, excluding intra -EU trade.  WT/REG441/1  
 
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  Chart 1.1 United Kingdom -Japan:  Merchandise bilateral and global trade, 2018 -2020  
 
Source:  Based on data provided by the Parties and UNSD, Comtrade database.  
 
1.6.  The commodity structure of trade between the U K and Japan, as well as both Parties' global 
trade during the period 201 8-2020 are shown in Chart 1.2 on the basis of Harmonized System 
(HS) sections using the same statistics as shown in the previous Chart.  
1.7.  The majority of the U K's imports from Japan were  machinery and mechanical appliances 
(35.2%); vehicles, and aircraft and vessels (24. 2%); both were also Japan's largest global 
exports, accounting for 34.6% and 22.9% respectively. In addition,  natural and cultured pearls  
accounted for a significant share  of the UK's imports from Japan (14.4%).  
1.8.  Of the UK's largest export categories ( machinery and mechanical appliances , products of 
chemical or allied industries  and vehicles, aircraft and vessels ) which together accounted for 
almost 50% of its global export s, machinery and vehicles, aircraft and vessels accounted for 
around 45% of Japan's imports from the UK; in addition,  around 24% of Japan's imports from the 
UK were in minerals  which accounted for only 9% of Japan's global exports .  
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  Chart 1.2 United Kingdom -Japan: Product composition of merchandise trade by HS 
Section, annual average (2018 -2020)  
 
Source:  Based on data provided by the Parties and UNSD, Comtrade database.  
1.2  Trade in services and investment  
1.9.  In 2021, the UK's shares of total commercial services exports and imports were 6.92% and 
4.31% respectively, while Japan's respective  shares were 2.74% and 3. 7%. With total commercial 
services exports of USD 415.07  billion and imports of USD 238.52 billion, the U K was ranked 2nd 
and 6th largest exporter and import er of commercial services. In the same year Japan was ranked 
10th and 9th respectively  with total commercial services exports of US D 163.99  billion and imports 
of US D 205.2  billion. For both Parties, other commercial services represented the main category 
traded: 8 7% of UK exports and 7 6% of imports; 80% of Japan's exports and 7 7.4% of imports.  
1.10.   Chart s 1.3 and 1.4 below show  global and bilateral trade in commercial services for the U K 
and Japan  for the period 2018 -2020 (as reported by the Parties ).10 For the U K, exports were 
dominated by other business services, financial services and telecommunications, computer, and 
information services, while imports were led by other business serv ices, travel and financial 
services.  In terms of bilateral trade in commercial services, the UK's exports to Japan were 
 
10 The national statistics of the Parties may slightly differ from the, also official, sources systematical ly 
used in the preparation of factual presentations . 
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  represented by financial services, other business services, and i nsurance and pension services , 
while imports were dominated by c harges for the use of intellectual property n.i.e. , other business 
services, and financial services. The data show an overall surplus in trade in commercial services 
with the rest of the world and with Japan.  
1.11.   For Japan , during the same period, global exports  in commercial services were represented  
by other business services, charges for the use of intellectual property n.i.e., and transport, while 
imports  were led by other business services, charges for the use of intell ectual property  and 
transport. The c omposition of bilateral trade in commercial services with the UK remained  largely  
unchanged: financial services, other business services, and charges for the use of intellectual 
property n.i.e. accounted for most of Japa n's exports to the UK, while its imports from the UK were 
led by other business services, financial services, and insurance and pension services. Japan  
maintained an overall trade deficit with the rest of the world and a trade surplus with the UK 
during th e surveyed  period.   
Chart 1.3 United Kingdom: Trade in commercial services with world and Japan (2018 -
2020)  
 
Note:  Exchange rates from GBP to USD: 0.7495 (2018), 0.7834 (2019) and 0.7800 (2020) . 
 No exports to Japan on Manufacturing services and Maintenance and repair services for 2018 -2019; 
Construction for 2019 -2020.  
Source:  UK authorities.  
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  Chart 1.4 Japan: Trade in commercial services with world and t he United Kingdom 
(2018 -2020)  
 
Note:  Exchange rates from Japanese yen to USD: 110.4 (2018), 109.0 (2019), 106.8 (2020) . 
Source:  Japanese authorities.  
 
1.12.   Chart 1. 5 below shows the UK's foreign direct investment stocks and flows with the world 
and with Japa n during 201 8-2020, while Chart 1. 6 depicts the data for Japan.11 While data on both 
FDI stock and flow for the UK with the world depicts a net surplus , with both inward and outward 
flows falling during this period , with the latter falling quite sharply , Japan maintains a net deficit in 
its FDI stock  and flow  with the world. Over the surveyed period,  data suggest that Japan  was a net 
investor in the UK in terms of FDI stocks , while inward flows from the UK rose sharply between 
2019 and 2020 .  
 
11 The national statistics of the Parties may differ slightly from other official sources systematically used 
in the preparation of factual presentations . 
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  Char t 1.5 United Kingdom: FDI stock and flow with Japan and world, 2018 -2020  
 
Note:  FDI presented on a directional basis.  
 No data on bilateral outward flow for 2020.  
 Exchange rate GBP per USD are: 0.75 (2018), 0.78 (2019) and 0.78 (2020)  
 Please note that FDI data for 2020 has been affected by changes in sampling methodology. 
Therefore, while this will mean 2020 data are more representative of UK FDI with overseas partners, 
some caution should be taken when comparing 2020 data to pr evious years. Methodology changes 
have led to an increase in reported FDI, particularly inward FDI, in 2020. The effect of this 
methodology change will vary between partners, although it is not possible to quantify the specific 
impact for individual partne rs. 
Source:  UK authorities.  
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  Chart 1.6 Japan: FDI stock and flow with the United Kingdom and world, 2018 -2020  
 
Note:  Exchange rates from Japanese yen to USD: 110.4 (2018), 109.0 (2019), 106.8 (2020) . 
Source:  Japanese authorities.  
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement was signed on 23 October  2020 and notified to the WTO on 31 December  
2020 under Article XXIV:7(a) of the GATT 1994 and Article V:7(a) of the GATS (see document 
WT/REG 441/N/1 - S/C/N/ 1036). Until the Agreement entered into force the Parties' trade 
relationship was governed by the EU -Japan Economic Partnership Agreement  (hereinaf ter referred 
to as "the EU -Japan EPA")12 which ceased to apply to the UK when it left the European Union.  
2.2.  Article 2 4.3 governs the entry into force of the Agreement. Both Parties notified to each other 
the completion of their respective applicable legal re quirements and procedures for  entry into force 
of the Agreement in January  2021. 
2.3.  The text of the Agreement, together with its Annexes, is available on the Parties' official 
websites:  
United Kingdom : UK/Japan: Agreement for a Comprehensive Economic Partnership [CS Japan 
No.1/2020] - GOV.UK (www.gov.uk)  
Japan:  Japan-UK Comprehensive Economic Partnership Agreement | Ministry of Foreign Affairs of 
Japan (mofa.go.jp)  
 
12 For further details, please refer to document WT/REG396/1.  
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  2.4.  The objectives of the Agreement are to liberalise and facilitate trade and investment, as well 
as to promote a closer economic relationship between the  Parties  (Article 1.1) . 
2.5.  Article 1.3 specifies the territorial application of the Agreement. In respect of the UK, the 
provisions of the Agreement concerning customs matters , and the Protocol on Mutual Recognition,  
are applied to the territories of the United Kingdom, the Bailiwicks of Guernsey and Jersey and the 
Isle of Man. In addition, a mechanism is envisaged to allow for extension of the Agreement, o r its 
specific provisions, to the territories for whose intern ational relations the Government of the UK is 
responsible, inter alia  Gibraltar.  
2.6.  The Agreement has 2 4 Chapters , 21 Annexes  and 1 Protocol , all of which form an integral 
part of the Agreement (Table 2.1 ). The UK -Japan CEPA basically maintains the content o f the EU -
Japan EPA but establishes more advanced disciplines in areas such as electronic commerce and 
financial services, and has a new chapter on trade and women 's economic empowerment.  
Table  2.1 Structure of the Agreement  
Chapters  Title 
Preamble   
Chapter 1  General Provisions  
Chapter 2  Trade in Goods 
Chapter 3  Rules of Origin and Origin Procedures  
Chapter 4  Customs Matters and Trade Facilitation  
Chapter 5  Trade Remedies  
Chapter 6  Sanitary and Phytosanitary Measures  
Chapter 7  Technical Barriers to Trade  
Chapter 8  Trade in Services, Investment Liberalization and Electronic Commerce  
Chapter 9  Capital Movements, Payments and Transfers and Temporary Safeguard Measures  
Chapter 10  Government Procurement  
Chapter 11  Competition Pol icy 
Chapter 12  Subsidies  
Chapter 13  State -Owned Enterprises, Enterprises granted special rights or privileges and designated 
monopolies  
Chapter 14  Intellectual Property  
Chapter 15  Corporate Governance  
Chapter 16  Trade and Sustainable Development  
Chapter 17  Transparency  
Chapter 18  Good Regulatory Practices and Regulatory Cooperation  
Chapter 19  Cooperation in the field of Agriculture  
Chapter 20  Small and Medium -sized Enterprises  
Chapter 21  Trade and Women's Economic Empowerment  
Chapter 22  Dispute Settlement  
Chapter 23  Institutional Provisions  
Chapter 24  Final Provisions  
Annexes   
Annex 2 -A Tariff Elimination and Reduction  
Annex 2 -B  List of Goods referred to in Articles 2.15 and 2.17  
Annex 2 -C  Motor Vehicles and Parts  
Appendix 2 -C-1  UN Regulations Applied by Both Parties  
Appendix 2 -C-2 UN Regulations Applied by one of the Parties and not yet considered by the other Party  
Annex 2 -D Facilitation of Shochu Export  
Annex 2 -E Facilitation of Wine Product Export  
Annex 3 -A  Introductory Notes to Product Specific Rules of Origin  
Annex 3 -B Product Specific Rules of Origin  
Appendix 3 -B-1 Provisions Related to Certain Vehicles and Parts of Vehicles  
Annex 3 -C Products referred to in Article 3.5  
Annex 3 -D Information referred to in Article 3.5  
Annex 3 -E Text of the Statement on Origin  
Annex 6  Food Additives  
Annex 8 -A  Regulatory Cooperation in Financial Services  
Annex 8 -B Schedules for Chapter 8  
Annex I  Reservations for Existing Measures  
Annex II  Reservations for Future Measures  
Annex III  Business Visitors for Establishing Purposes, Intra -Corporate Transferees, Investors and 
Short -Term Business Visitors  
Annex IV  Contractual Services Suppliers and Inde pendent Professionals  
Appendix IV  Limitations of Business Activities of Contractual Services Suppliers and Independent 
Professionals in Japan  WT/REG441/1  
 
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  Chapters  Title 
Annex 8 -C Understanding on Movement of Natural Persons for Business Purposes  
Annex 10  Government Procurement  
Annex 14 -A Laws and Regulations of the Parties related to Geographical Indications  
Annex 14 -B  List of Geographical indications  
Protocol s  
Protocol  On Mutual Recognition  
Source:  WTO Secretariat based on the Agreement.  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  Chapter 2, sections A -D of the Agreement  specifically  concern s trade in goods , while  other 
Chapters apply horizontally to trade in goods.  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.2.  Under Section B ( national treatment and market access for goods) of Chapter 2, the 
Agreement follows the EU -Japan EPA  with the Parties agree ing to give national treatment to each 
other's  goods and  incorporating Article III of the GATT 1994 into the Agreement , mutatis mutandis  
(Article 2.7) . 
3.3.  The Parties' tariff elimination schedules are in  Annex 2 -A to the Agreement. As in the EU -
Japan EPA the lower  of the preferential or MFN duty is to  be applied to originating goods of the 
other Party  if a Party reduces its MFN applie d rate below the preferential rate in Annex 2 -A. 
Treatment of  certain  originating goods including agricultural products,  are to be reviewed in 2026, 
unless otherwise agreed  by the Parties , or in a year which the Parties otherwise agree, whichever 
comes fir st, with the  aim of improv ing market access conditions.  In case a Party grants a more 
favourable tariff rate, higher quota volume or any other more favourable treatment than that 
provided under the Agreement to a third country in a manner that affects the balance of either 
Party's market for such goods, the Parties shall undertake a review with a view to ensure the other 
Party obtains at least the same preference  (Article 2.8) . 
3.4.  Article 2.9 contains provisions on goods re -entered after repair and alteration  while Article 
2.10 permit s duty free temporary admission of goods, such as goods for display or use at 
exhibitions, professional equipment, commercial samples and containers and pallets  in use or to be 
used in the shipment of goods in international traffic .  
3.5.  As in the EU -Japan EPA s tandstill provisions ensure no increase in customs dut ies applied in 
accordance with Annex 2 -A to the Agreement.13  
3.6.  The Parties agree not to adopt or maintain  non-automatic import licensing procedures and 
shall adopt or maintain import licensing procedures only when other appropriate procedures to 
achieve an administrative purpose are not reasonably available (Article 2.17). Further 
transparency and notificatio n requirements are also outlined in Article 2.17. Non-tariff measure 
(NTM) provisions are set out in Article 2.19 and Annexes 2 -C14 and 2 -D15 to the Agreement  and 
are subject to the same  evaluat ion commitments as in the EU -Japan EPA.16  
 
13 Customs dut ies may be raised  to the level in the Parties' schedules for the respective year, following a 
unilateral reduction of the customs duty  (Article 2.13.2) . 
14 Annex 2 -C applies to all products of motor vehicles, their parts and equipment with some exceptions.  
15 Annex 2 -D (one paragraph) concerns the facilitation of Shochu Exports.  
16 The evaluation is to take place  10 years from the date of entry into force of the Agreement  (i.e. in 
2031) , or on request of a Party, on whether issues resulting from NTMs on goods can be addressed effectively 
within the framework of the Agreement. As a result of this evaluation, the Parties shall enter into consultations, 
and subse quently negotiations, to consider broadening the scope of existing commitments of mutual interest 
on NTMs on goods, including on cooperation.  WT/REG441/1  
 
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  3.1.2   Liberalization of t rade and tariff lines  
3.7.  The Parties agree to  reduce or eliminate customs duties on originating goods in accordance 
with Annex 2 –A to the Agreement (Article 2. 8).17  
3.1.3   Liberalization schedule  
3.8.  For the purposes of  Article 2.8, the Parties agree to entirely eliminate customs duties on 
originating goods from each other in accordance with Annex 2 -A (Part 2 for the UK and Part 3 for 
Japan) on the date of entry into force of the Agreement, unless provided otherwise  (para 1, Part 1 
of Annex 2 -A). 
3.9.  The equal annual instalments under the Annex are to start on the date of entry into force of 
the Agreement (i.e. 1 January 2021), with subsequent annual reductions taking place on 
1 February 2021 for the UK, and on 1 April 2021 f or Japan.  
3.10.   Annex 2 -A provides for ten staging categories  according to which customs duties : 
• for goods in category "A" are eliminated upon entry into force of the Agreement;  
• for categor ies "X", "Xq1", "Xq2"  are not reduced or eliminated ;  
• for category "Xb" are not reduced or eliminated  and remain at the base rate;  
• for category "B" (B3 -B20) are phased out  with specified base rate reductions on the date of 
entry into force of the Agreement and a subsequent  elimination of customs duties in equal 
annual instalments detailed for each sub -category ; 
• for category "R" (R1-R23, including the agricultural element marked as "EA"18) are to be 
reduced  within 14 years, depending on the sub -category;  
• for category "EU10" remain at the base rate from year 1 to year 6 and are to be  eliminated 
in four equal instalments from the first day of year 7 up to 1 February of year 10; 
• for goods in category "S" are subject to review pursuant to subparagraph 3(a) and 
paragraph 4 of Article 2.8 of the Agreement ; 
• for category "PIC" are governed by the terms set out in Section B19 of the Schedule of 
Japan ;  
• in category "SG -n" are subject to the provisions of Section C of  the Schedule of Japan 
(Agricultural safeguard measures) ;  
3.11.   Only t he ad valorem  component of customs duties on  tariff lines under the entry price 
system to  be eliminated upon the date of entry into force of the Agreement.20  
 
17 Customs duties are defined as any duty or charge of any kind imposed on or in connection with the 
importation of  a good including any form of surtax or surcharge imposed on or in connection with importation, 
with exclusions set out in Article 2.4.  
18 The legal reference for "EA" means any law or regulation of the UK that applies an agricultural 
element of duty to cer tain goods in accordance with Part I, Section I -A (including Annex 1) of Schedule XIX 
(United Kingdom) to the GATT 1994 adopted by the United Kingdom on or after the date of entry into force of 
the Agreement  (1.h(i) of Part 2 Section A of the UK's Schedule ). 
19 Goods covered by the provisions of Section B of Part 3 of Annex 2 -A are: w heat products ; mixes and 
doughs and cake mixes ; food preparations made primarily of wheat ; food preparations of barley ; coffee, tea 
mixes, food preparations and doughs ; food pre parations ; food preparations containing more than 50 per cent 
of sucrose, and cocoa powder ; food preparations containing cocoa ; food preparations containing cocoa (for the 
preparation of chocolate) ; cheeses . 
20 The legal reference for EA means any law or regulation of the UK that applies an agricultural element 
of duty to certain goods in accordance with Part I, Section I -A (including Annex 1) of Schedule XIX (United 
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  3.1.3.1   The United  Kingdom  
3.12.    The U K's applied tariff in 20 21 comprised 9,494  lines at the HS eight -digit level (HS 2017) : 
90.7% (8,613  lines) were ad valorem  and 9.28% of lines ( 881 lines) were non -ad valorem.21 
3.13.   Table 3.1 below shows tariff elimination by the UK under the Agreement. In 2021, 4 ,462 of 
the UK's tariff lines were duty free on an MFN basis, representing 47% of the UK's tariff, and 
corresponding to almost 60% of the UK's imports from Japan during the period 2018 -2020. 
Immediately following the entry into force of the Agreement, a fu rther 4,711 lines (49.6% of the 
UK's tariff) also became duty -free for imports from Japan. This resulted in 96.6% of the UK's tariff 
becoming duty -free, corresponding to 81.1% of the UK's total imports from Japan during 2018 -
2020. At the end of 10 years of  implementation 9,370 lines will be duty free for imports from 
Japan. By 2034, following thirteen years of implementation, a further 263 tariff lines will be 
liberalized.  
3.14.   At the end of the implementation period 58 lines will remain dutiable, representing 0.6% of 
the UK's tariff and corresponding to a negligible part of the U K's value of imports from Japan 
during 201 8-2020.22  
Table 3.1: United Kingdom : Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Tariff lines in UK's tariff schedule  UK's imports from Japan  (2018 -20)a 
Number  % Value  
(USD million)c % 
2021 (MFN)  4,462  47.0  7298.5  59.9  
2021 (JAN)  4,711  49.6  2580.6  21.2  
2022  51 0.5 199.5  1.6 
2024  40 0.4 145.4  1.2 
2026 87 0.9 1866.5  15.3 
2029 19 0.2 91.4 0.8 
2031 17 0.2 4.9 0.0 
2034 49 0.5 0.0 0.0 
Remain dutiable  58 0.6 2.4 0.0 
TOTAL  9,494  100.0  12189.4  100.0  
a Import coverage is from HS chapters 1 -97. 
b According to the preferential tariffs schedule provided by UK, the first tariffs reduction occurred on 
1st January 2021, and the second on 2nd February 2021, for the subsequent years, reductions shall 
be made on 2nd February each year until 2034.  
c Imports values were reported in GBP and converted into USD using the exchange rates of 
0.749531540259847(2018), 0.783445110011929 (2019) and 0.779999576697153 (2020) . 
Note:  Tariff lines subject to in -quota rates are excluded in the computation .  
 Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by UK.  
 
3.15.   Table 3.2 shows the U K's tariff elimination by HS section. The 58 lines excluded  from tariff 
elimination are found in HS Sections I ( live animals), II ( vegetable products) and IV (prepared 
food). These Sections (I, II, and IV) correspond to HS Chapters 01, 02, 0 5, 10, 11, 12 and 19. 
Average tariffs on the lines remaining subject to duties range from 4. 8% for HS  Section IV  
(prepared food)  to 9.3% for HS Section I  (live animals) . 
 
Kingdom) to the GATT 1994 adopted by the Unit ed Kingdom on or after the date of entry into force of the 
Agreement (1.l of Part 2 Section A of the UK's Schedule).  
21 647 lines specific, 230 compound, and 4  mixed.  
22 The EU -Japan EPA which applied to the UK before it left the EU, envisages 87 lines remai ning dutiable 
for imports from Japan at the end of implementation in 2034, or 0.9% of the EU's tariff schedule (see 
WT/REG396/1).  The difference in the number of tariff lines remaining dutiable in the EU and UK is mainly due 
to the products that are subjec t to entry prices in the EU and are therefore treated as not liberalized in the 
factual presentation.  WT/REG441/1  
 
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  Table 3.2 United Kingdom : Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Lines  under the Agreement  
Avg. 
Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  
Remain 
Dutiable  2021 
(JAN)  
2022  
2024  
2026  
2029  
2031  
2034  
I 8.9 956 109 782   18   44 3 9.3 
II 4.4 554 213 307       34 6.0 
III 4.8 129 30 99         
IV 12.9 869 119 722   2   5 21 4.8 
V 0.4 231 202 29         
VI 2.7 1,226  550 672 3  1      
VII 3.7 301 86 208 3  1 3     
VIII 1.4 130 73 57         
IX 1.1 235 189 46         
X 0.0 195 195          
XI 7.0 1,149  243 906         
XII 7.3 106 17 75    14     
XIII 2.0 234 162 70 1 1       
XIV 0.5 58 47 11         
XV 0.6 955 804 143  8       
XVI 0.7 1,338  981 303 28 15 9 2     
XVII 3.7 286 121 60 16 16 56  17    
XVIII 0.6 299 218 81         
XIX 1.4 22 7 15         
XX 1.4 214 89 125         
XXI 0.0 7 7          
Total  3.8 9,494  4,462  4,711  51 40 87 19 17 49 58 5.4 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties23, the average r ate for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff 
rates are averaged to the 8 -digit level.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data pro vided by the UK.  
 
3.16.   Tariff liberalization by HS Chapter set out in Chart 3.1 shows that preferential duties for 
imports on lines remaining dutiable are lower than the corresponding MFN average duties  in: 
i. Chapter 18  (Cocoa and cocoa preparations): average pre ferential duty of 6% compared to 
the average MFN rate of 8% ;  
ii. Chapter 19 (Preparations of cereals, flour, starch or milk): av erage  preferential duty of 
4.8% compared to the average MFN rate of 5.8% ; and  
iii. Chapter 21 (Miscellaneous edible preparations ): average preferential duty of 3.8% 
compared to the average MFN rate of 7.7%.  
3.17.   Chapters 7 (Edible vegetables and certain roots and tubers),  8 (Edible fruit and nuts; peel of 
citrus fruit or melons ), 20 (P reparations of vegetables, fruit, nuts or other parts of plants  and part 
 
23 Tariff lines 0302.41.00, 0302.43.90, 0302.44.00, 0303.51.00, 0303.53.90, 0303.54.10, 0303.89.40, 
0304.59.50, 0304.99.23, 0702.00.00, 0708.10.00, 0805.10 .22, 0805.10.24, 0805.10.28, 0808.10.80, 
0808.30.90, 0809.29.00 and 0809.40.05 are subject to MFN seasonal duties . WT/REG441/1  
 
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  of) 22 ( Beverages, spirits and vinegar)  contain tariff lines under the entry price system, while 
Chapter 11 (Products of the milling industry; malt; starches; inulin; wheat gluten) contain specific 
duties.   
Chart 3.1 United Kingdom : Average of dutiable rates, by HS Chapter  
 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rat e for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff 
rates are averaged to the 8 -digit level.  
Source:  WTO estimates based on data provided by the UK.  
 
3.1.3.2   Japan  
3.18.   Japan's applie d tariff in 20 21 consisted of 9,211  lines at the HS nine -digit level (HS 2017) . 
92.94% (8,561 lines)  were ad valorem  and 7.06%  (650 lines) were non -ad valorem .24 
3.19.   Table 3.3 below shows tariff elimination commitments by Japan under the Agreement. In 
2021, 3,729 lines were duty free on an MFN basis (40. 5% of Japan's total tariff), corresponding to 
89.9% of Japan's imports from the UK during the period 201 8-2020. Immediately following the 
entry into force of the Agreement, an additional 4,141  lines (4 5% of Ja pan's tariff) also became 
duty free for imports from the UK. This resulted in 85.5% of Japan's tariff becoming duty free for 
imports from the UK, corresponding to 99% of Japan's imports from the UK, by the end of 2021 . 
Following 10 years of implementation , a total of 8,765 lines  are to become duty free  for imports 
from the UK . 
3.20.   At the end of the implementation period  in 2038 , 343 lines will remain dutiable,  which  
correspond s to 3.7% of Japan's tariff and 0. 1% of Japan's imports from the UK during 2018-
2020.25  
 
24 229 lines specific, 75 compound, 316 mixed and 30 "other" duties.  
25 The EU -Japan EPA which applied to the UK before it left the EU, envisag es 390 lines (4.2% of the 
tariff) remaining dutiable for imports from the EU at the end of implementation in 2034, or 0.9% of the EU's 
tariff schedule (see WT/REG396/1).  
WT/REG441/1  
 
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  Table 3.3 Japan: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Japan's tariff 
schedule  Value of Japan's 
imports from UK  
(2018 -2020) a 
USD million  % of Japan's total 
imports from  
UK 
(2018 -2020)  
2021 (MFN)  3,729  40.5 6,560.0  89.9 
2021 4,141  45.0 665.9  9.1 
2022 243 2.6 15.5 0.2 
2023 17 0.2 0.0 0.0 
2025 80 0.9 5.2 0.1 
2026 45 0.5 0.1 0.0 
2027 8 0.1 0.8 0.0 
2028 495 5.4 29.7 0.4 
2030 7 0.1 0.3 0.0 
2031 3 0.0 0.0 0.0 
2033* 100 1.1 16.8 0.2 
Remain dutiable  343 3.7 4.5 0.1 
TOTAL  9,211 100.0  7,298.7  100.0  
Note:  Tariff lines subject to in -quota rates  (both MFN and under Agreement)  are excluded in the 
computation . For the calculation of averages, specific rates are excluded, and the ad valorem  parts 
of alternate rates are included .  
 Based on the HS 2017 nomenclature.  
a Import coverage is from HS chap ters 1 -97 and imports under the in -quota tariff lines are excluded.  
* The last year of implementation period is 2038 for one tariff line which is (210690122), part of the 
MFN in -quota tariff line and also part of the tariff liberalization under the Agreement. Since all the in -
quota tariff line are excluded in the computation , it is not reflected in the tariff related tables.  
Source:  WTO estimates based on data provided by Japan and the IDB -WTO.  
 
3.21.   Table 3.4 shows Japan's tariff elimination under the Agreement by HS Section s. The 343 
lines excluded from tariff elimination once  implementation is completed are found in  HS Sections I 
(live animals, II ( vegetable products) and IV ( prepared food).  A large number of the lines 
remaining dutiable are subject to non -ad valorem  rates of duty. These Sections correspond to 
HS Chapters 01, 02, 04, 05, 07, 10, 11, 12, 17, 18, 19, 2 1 and 2 3. Average tariffs on the lines 
remaining subject to duties range from 20% for HS Section II  (Vegetable products)  to 23.3% for 
HS Section IV  (Prepared food) . 
  
  WT/REG441/1  
 
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HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines under 
MFN 20 21 Number of duty -free lines under the Agreement  Remaining 
dutiable 
lines  Avg. Final 
Tariff  
(Dutiable)  2021  2022  2023  2025  2026  2027  2028  2030  2031  2033  
I 9.2 765 118 300 13 8 2 30 8 119 6 3 34 124 22.2 
II 6.0 592 184 229 56 1 10   24    88 20.0 
III 3.6 89 22 33 21 2 1 1  9      
IV 16.1 814 73 256 149 6 25 5  150   19 131 23.3 
V 0.7 249 168 80      1      
VI 1.9 1,137  412 716 4     3   2   
VII 2.2 307 115 192            
VIII 10.5 193 65 3    9  90   26   
IX 3.2 322 121 129   42   30      
X 0.0 167 167             
XI 6.2 1,847  88 1,754       4 1     
XII 16.6 104 5 23      57   19   
XIII 1.2 165 99 64      2      
XIV 1.4 75 53 22            
XV 0.9 847 609 238            
XVI 0.0 923 916 7            
XVII 0.1 162 161 1            
XVIII 0.2 258 249 6      3      
XIX 6.9 22  22            
XX 1.7 166 97 66      3      
XXI 0.0 7 7             
Total  4.8 9,211  3,729  4,141  243 17 80 45 8 495 7 3 100 343 22.3 
Note:  Tariff lines subject to in -quota rates  (both MFN and under the Agreement)  are excluded in the computation . For the calculation of averages, specific rates are excluded, 
and the ad valorem  parts of alternate rates are included .  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Japan and IDB -WTO.  WT/REG441/1  
 
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  3.22.   As set out in Chart  3.2 average tariffs for most  HS Chapters where tariffs remain at the end 
of implementation are lower than their corresponding MFN duties. The biggest  differences are 
found in: 
i. Chapter 2 ( Meat and edible meat offal) : average preferential rate of 8.5% compared to the 
MFN average of 37.7% ;  
ii. Chapter 18 (Cocoa and cocoa preparations) : average preferential rate of 14.9% compared 
to the MFN average of 24.4%; and 
iii. Chapter 2 1 (Miscellaneous edible preparations) where the average preferential rate is 
20.7% compared to the MFN average of 27.7% . 
Chart 3.2 Japan: Average of dutiable rates, by HS Chapter  
 
Note:   Tariff lines subject to in -quota rates (both MFN and under Agreement) are excluded in the 
computation. For the calculation of averages, specific rates are excluded, and the ad valorem  
parts of alternate rates are included.  
Source:  WTO estimates based on d ata provided by Japan and the WTO -IDB. 
 
3.1.4   Tariff rate quotas  
3.23.   There are no tariff rate quotas under the Agreement.  
3.2  Rules of origin  
3.24.   The provisions on rules of origin are contained in Chapter 3 of the Agreement. Section A 
sets general provisions, such as definitions ; Section B specifies  the general requirements 
applicable for the determination of origin under the Agreement ; and Section C contains 
miscellaneous provisions . In addition, Chapter 3 has five Annexes  that clarify and complement the 
provisions of this Chapter . 
3.25.   According to Article 3.2, a product qualifies as originating when it  is: 
(a)  wholly obtained or produced in the Party as defined in Article 3.326; 
(b)  produced exclusively from materials originating in that Party ; or 
 
26 With regards to fish, shellfish or other marine life taken by a Party's vessel, a "Party's vessel" 
includes, inter alia , a vessel or a factory ship in part ownersh ip with a member of the European Union 
(subparagraph 2(c) of Article 3.3).  
WT/REG441/1  
 
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  (c)  produced using non -originating materials provided they satisfy all applicable 
requirements of product specific rules of origin as contained in Annex 3 -B.  
3.26.   Annex 3 -A contains the applicable requirements for the product specific rules of origin as set 
out in Annex 3 -B. To qualify as originating, a product that is produced using non -originating 
materials must satisfy a change in tariff classification  (CTC) , a production process, a maximum 
value of non -originating materials, a minimum regional value content27 or any other requirement 
specified in Annexes 3 -A and 3 -B. Generally, the requirement is a  CTC either at the sub-heading, 
heading or chapter level ; a maximum value of  non-originating  materials used in the ex -works price 
of the product (between 40% and 70%); a minimum regional value content used in the free -on-
board price of the product (between 35% and 70%); or based on a specific process in certain  HS 
Chapters. Alternative rules of origin are also provided for in certain HS Chapters usually limiting 
the maximum value of non-originating materials used.  
3.27.   Appendix 1 to Annex 3 -B of the Agreement concerns determination of origin in relation to 
certain vehicles and parts of vehicles . It includes  interim threshold s for non-originating materials 
and regional value content (RVC) for vehicles and parts of vehicles, and for vehicles of heading 
87.03, 84.07, 84.08, 87.06, 87.07 and 87.08.28 Section 3 app lies to product specific rules of origin 
for certain motor vehicles through production process related to certain parts, implementation of 
which is subject to review upon request from either Party seven years after entry into force of the 
Agreement  (i.e. i n 2028)  (Section 4).  
3.28.   Accumulation of origin is applicable as governed by the provisions of Article 3.5, 
complemented by the provisions of Annexes 3 -A through 3 -D to the Agreement. Where a product 
qualifies as originating in a Party  or in the EU29, subject  to the provisions of Annex 3 -C30 and 3 -
D31, it shall be considered as originating in the other Party if used in the production of another 
product in the other Party. Production carried out in a Party , or in the EU,  using  non-originating 
material s may be taken into account for the purpose s of determini ng the origin of a product , 
provided that the production goes beyond one or more of the insufficient working or processing 
operations referred to in Article  3.4. 
3.29.   Further conditions and additional products qualifying for diagonal cumulation with the EU 
may be negotiated, with the results to be incorporated into the Agreement in accordance with 
Article 24.2.  
3.30.   A de minimis  tolerance rule permits the use of non -originating  materials that do not meet 
the conditions in Annex 3 -B to qualify as originating as long a s their total value does not exceed 
 
27 Calculation of a maximum value of non -originating materials and of a minimum regional value content 
is set out in Note 4 of Annex 3 -A. 
28 For motor vehicles under HS 87.03, the max imum non -originating materials used declines from 55% 
(year 1 -2) to 50% (year 3 -5) and 45% (year 6 onwards) while the RVC increases from 50% to 55% and 60% 
during this period. For vehicle parts the norms are maximum non -originating materials of 60% (or RVC  45%) 
(year 1 -3) to 50% (or RVC 55%) (from year 3 onwards) for HS 84.07 and 84.08; and 55% (or RVC 50%) 
(year 1 -4) to 50% (or RVC 55%) (year 5 onwards) for HS 87.06. For vehicle parts the norms are maximum 
non-originating materials of 55% (or RVC 50%) (yea r 1-4) to 45% (or RVC 60%) (year 5 onwards) for HS 
87.07. For parts of vehicles under HS 87.08 the requirements are either a  change in heading  (CTH) or 
maximum non -originating materials of 60% or RVC 45% during year 1 -2 and CTH or maximum non -originating 
materials of 50% or RVC 55% as of year 3 onwards.   
29 Including products  originating in the Principality of Andorra under Chapters 25 to 97 of the 
Harmonized System; and products originating in the Republic of San Marino. The rules of origin under Chapter 
3 shall apply, mutatis mutandis , for the purpose of determining whether products are originating in the 
Principality of Andorra or the Republic of San Marino.  
30 Annex 3 -C specifies the list of the EU -originating products covered by the diagonal cumulation 
arrangement and includes, inter alia , meat, fish, dairy products, edible fruits and vegetables, prepared plant 
foodstuffs and beverages, mineral products, products of the chemical or allied industries, plastics and rubber, 
leather, furskins and articles thereof, cork, palp of wood, paper and arti cles thereof, textiles, footware, articles 
of stone, glass and ceramic, precious and semi -precious stones and metals, base metals, machinery, electrical 
equipment, transport equipment, instruments, arms and ammunition, furniture and toys, works of art and 
antiques.   
31 Annex 3 -D sets out the information required from the supplier for the exporter to complete the 
statement on origin of products .  WT/REG441/1  
 
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  10% of the ex -works or free on board (FOB) price of the product. Tolerance for textiles and 
apparel products32 shall be determined in accordance with Notes 6 to 8 of Annex 3 -A.  
3.31.   Origin procedures are set out in Section B  of Chapter 3. The importing Party shall grant 
preferential tariff treatment to a product originating in the other Party on the basis of a claim for 
preferential tariff treatment based on a statement on the origin of the product by the exporter or 
on the b asis of the importer's knowledge that the product is originating. The claim shall be 
contained in the customs import declaration (Article  3.16).  
3.32.   The period of validity for a statement of origin shall not exceed 12 months, except for a 
single shipment  (Article 3.17) . The customs authorities of the importing Party may conduct a 
verification of origin based on risk assessment methods, including random selection, through a 
request to the importer claiming preferential treatment. If a decision  is taken to suspend 
preferential treatment while awaiting the results of verification, release of the product con cerned 
shall be offered to the importer subject to appropriate precautionary measures including  
guarantees. The suspension shall be terminated as soon as possible after determining the origin of 
the product  or the fulfilment of the other requirements of Ch apter 3 (Article 3.21 ).  
3.33.   Article 3.22 provides for administrative cooperation between the Parties . A customs 
authority may, either by the end of two years after the date of importation of the products or by 
the end of 38 months after the date of the making out of that statement on origin, whichever is 
earlier, request for a verification from the other Party's customs authoritie s. Article 3.23 requires 
the Parties to provide mutual assistance in cases of suspected breach of provisions of Chapter  3, in 
accordance with an agreement on cooperation and mutual administrative assistance (CMAA)  in 
customs matters to be concluded between  the Governments of the Parties . As reported by the 
Parties, an A greement between the Government s of Japan and the United Kingdom of Great 
Britain and Northern Ireland on co -operation and mutual administrative assistance in customs 
matters was signed and e ntered into force in January 2021 . 
3.34.   Denial of preferential tariff treatment is permitted under the conditions set out in Article 
3.24. Article 3.25 requires each Party to maintain in accordance with their laws and regulations the 
confidentiality of any info rmation provided to it by the other Party under Chapter 3. Article 3.26 
requires the Parties to establish administrative measures and sanctions in accordance with their 
laws and regulations for persons who provide incorrect information for the purposes of obtaining 
preferential tariff treatment.  
3.35.   A Committee on Rules of Origin and Customs Related Matters is established pursuant to 
Article 23.3 with its functions set out in Article 3.27.  
3.3  Export duties and charges, and quantitative restrictions  
3.36.   Article 2.12 concerns export duties. The Parties agree to neither adopt nor maintain any 
duties, taxes, fees or other charges of any kind  or any internal taxes or charges  on goods exported 
to the other Party  that are in excess of those that would be impose d on like goods destined for 
domestic consumption.  
3.37.   In Article 2.15 , the Parties agree to not adopt or maintain any prohibition or restriction on 
the export  (or import)  or sale for export of any good except in accordance with Article XI of the 
GATT 1994, w hich is incorporated into and made part of the Agreement , mutatis mutandis . If a 
Party intends to adopt a prohibition on the exportation or sale for export of a good listed in Annex 
2-B33, it shall seek to limit the prohibition or restriction, provide the other Party with written notice 
 
32 Applicable to textile and apparel products of HS Chapters 50 through 63.  
33 The goods listed in Annex 2 -B are as follows:  Chapter 25 (Salt; sulphur; earths and stone; plastering 
materials, lime and cement ), Chapter 26 (Ores, slag and ash ), Chapter 27 (Mineral fuels, mineral oils and 
products of their distillation; bituminous substances; mineral waxes ), Chapter 28 (Inorganic chemicals; organic 
or inorganic compounds of precious metals, of rare -earth metals, of radioactive elements or of isotopes ), 
Chapter 71 (Natural or cultured pearls, precious or semi -precious stones, precious metals, metals clad with 
precious metal , and articles thereof; imitation jewellery; coin ), Chapter 72 (Iron and steel ), Chapter  73 
(Articles of iron or steel ), Chapter 74 (Copper and articles thereof ), Chapter 75 (Nickel and articles thereof ), 
Chapter 76 (Aluminium and articles thereof ), Chapte r 78 (Lead and articles thereof ), Chapter 79 (Zinc and 
 WT/REG441/1  
 
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  (in advance,  if possible, in any case within 15 days) and give an opportunity for consultations 
(Article  2.15.2).  
3.38.   Article 2.16 requires that fees and formalities connected with exportation  (or importation)  
be imposed in acc ordance with Article VIII and III of the GATT 1994.  
3.39.   On export (and import) licensing procedures, t he Parties restate their existing rights and 
obligations under the Agreement on Import Licensing and incorporate its general provisions  
(partially), automatic  and non -automatic import licensing  provisions, mutatis mutandis . Such 
provisions also apply to any good listed in Annex 2 -B to the Agreement (Article 2.17).  
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.40.   Issues rela ted to  SPS measures are set out in Chapter 6 of the Agreement, which applies to 
all SPS measures of the Parties under the WTO SPS Agreement that may, directly or indirectly, 
affect trade between the m (Article 6.2). The objectives include , inter alia , promoting cooperation 
between the Parties on the implementation of the WTO SPS Agreement  (Article 6.1) . The Parties  
also affirm their rights and obligations relating to SPS measures under the WTO SPS Agreement  
(Article 6.4) .  
3.41.   Article 6.5 requires the mutu al notification of the competent authorities and contact points 
for the matters covered by Chapter  6. As reported by the Parties, u pon entry into force of the 
Agreement the y designated contact points and exchanged information on contact points and 
competen t authorities.  
3.42.   Articles 6.6 -6.14 contain provisions on risk assessment ; import conditions, import 
procedures and trade facilitation ; audit; procedures for listing of establishments or facilities ; 
adaptation to regional conditions, transparency and exchange  of information ; technical 
consultations ; emergency measures and the equivalence of measures in the context of the other 
Party's appropriate level of protection.  
3.43.   A Committee on Sanitary and Phytosanitary Measures is established by Article 23.3 of the 
Agreement. The objectives and functions of the  SPS Committee are set out in Article 6.15 . As 
reported by the Parties, a meeting of the Committee was held  on 27 April 2022 via 
videoconference .  
3.44.   The provisions of Chapter 6 are not subject to dispute settlement under Chapter 22 of the 
Agreement (Article 6.16).  
3.45.   Annex 6 to the Agreement covers food additives. The Parties recognize the importance of 
transparency and predictability with respect to the  application and approval procedures for food 
additives.  
3.4.1.2   Technical barriers to trade  
3.46.   Provisions on technical barriers to trade (TBT) are set out  in Chapter 7 of the Agreement, 
and apply to the preparation, adoption and application of technical regulations , standards and 
conformity assessment procedures of central government bodies, as defined in the  WTO TBT 
Agreement, that may affect trade in goods between the Parties. Purchasing specifications prepared 
by a governmental body for its production or consumpt ion requirements, or sanitary and 
phytosanitary measures as defined in Annex A to the WTO SPS Agreement are excluded from the 
application of Chapter 7 (Article 7.2).  The Parties reaffirm their rights and obligations under the 
WTO TBT Agreement and incorpor ate Articles 2 -9 and Annexes 1 and 3 of the  WTO TBT Agreement 
 
articles thereof ), Chapter 80 (Tin and articles thereof ), Chapter 81 (Other base metals; cermets; a rticles 
thereof ). WT/REG441/1  
 
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  into the Agreement , mutatis mutandis  (Article 7.3). If a dispute arises where one Party alleges 
exclusive breach of one of these provisions in the WTO  TBT Agreement, only the WTO dispute 
settlem ent mechanism may be invoked. Articles 7.5 to 7.1 1 contain provisions on technical 
regulations, international standards, standards, conformity assessment procedures, transparency, 
market surveillance, marking and labelling . The recognition of technical reg ulations that are 
equivalent between the Parties shall be considered positively, upon request. Article 7.8 envisages 
cooperation on mutual recognition in accordance with the Protocol on Mutual Recognition and the 
Parties may decide to extend the coverage o f products, the applicable regulatory requirements and 
the recognized conformity assessment bodies.   
3.47.   Under the Agreement, a  Party may impose  penalties  or take other appropriate measures  
against the removal or deliberate defacement of any lot identification code for wines and spirits 
that is provided by the supplier and placed on the container, as well as to exchange of information, 
experiences and best practices on this matter (Article 7 .12). Cooperation between the Parties on 
technical regulations, standards and conformity assessment procedures is set out in Article 7.13.  
3.48.   The Parties also agree to cooperate in the field of mutual recognition in accordance with the 
Protocol on Mutual Reco gnition34 (MRA Protocol, Article 7.8 ). The MRA Protocol lists sectors for 
which  each Party accepts the results of conformity assessment procedures required by its 
applicable laws, regulations and administrative provisions, including certificates and marks of 
conformity, that are conducted by the registered conformity assessment bodies of the other Party.  
It covers telecommunications terminal equipment  and radio equipment , electrical products, good 
laboratory practice (GLP) for chemicals, and good manufactur ing practice  (GMP) for medicinal 
products (human). The MRA Protocol is not subject to the following provisions: security exceptions 
(Article 1.5); confidential information (Article 1.6); transparency (Chapter 17); information sharing 
(Article 20.3); disput e settlement (Chapter 22); institutional provisions (Chapter 23); amendments 
(Article 24.2); and Article 18.1 of Annex 2 -C (Motor vehicles and parts).  As reported by the 
Parties, the Protocol has not been applied in accordance with Article 15 of the Protoc ol. 
3.49.   A Joint Committee on Mutual Recognition is established by Article 8 of the MRA Protocol.  As 
reported by the Parties, the Committee is not established yet.  
3.50.   A Committee on Technical Barriers to Trade is established by Article 23.3 of the Agreement. 
The objectives and functions of the TBT Committee are set out in Article 7.14.  As reported by the 
Parties, t he first meeting of the UK -Japan Committee on Technical Barriers to Trade (TBT) was 
held on 29 June 2022 via videoconference.  
3.51.   As reported  by the Parties, i n accordance with Article 7.15, the International Economy 
Division, Economic Affairs Bureau, MOFA is the contact point for Japan and the Department for 
International Trade (DIT), UK Government is the contact point for the UK.  Both Contact  Points are 
already exchang ing information on TBT with each other.  
3.4.2   Safeguard mechanisms  
3.52.   The rules governing trade remedies in Sections B and C of Chapter 5 of the Agreement 
include disciplines on safeguard measures.  
3.4.2.1   Global safeguards  
3.53.   There are no significa nt changes in the provisions on global safeguards under the EU -Japan 
EPA. The Parties affirm their right to apply safeguard measures to an originating good of the other 
Party in accordance with Article XIX of GATT 1994 and the WTO Agreement on Safeguards  
(Article  5.9). The Parties also agree not to apply or maintain with respect to the same good at the 
same time (a) a bilateral safeguard measure set out in Section B of Chapter  5, (b) a measure 
under Article XIX of the GATT 1994 and the Agreement on Safeguar ds, or (c) a safeguard measure 
set out in Section C of Part 3 of Annex 2 -A (Agricultural safeguard measures) .  
 
34 For the UK, the MRA Protocol applies to its customs territory, i.e. the territories of the United 
Kingdom, the Bailiwicks of Guernsey and Jersey and the Isle of Man (Article 1.3(4)).  WT/REG441/1  
 
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  3.54.   The provisions o n global safeguards are not subject to dispute settlement under Chapter 22  
of the Agreement (Article 5.9) .  
3.4.2.2   Bilateral safeguards  
3.55.   Section B of Chapter 5 concerns bilateral safeguard measures. Article 5. 2 provides that if as 
a result of the elimination or reduction of a customs duty in accordance with Article 2.8, an 
originating good from a Party is being imported into the other Party in such increased quantities in 
absolute terms or relative to domestic production and under such conditions as to cause or 
threaten to cause serious injury to a domestic industry of the importing Party may adopt specified 
measures to the extent  necessary to prevent or remedy the serious injury to the domestic industry 
of the importing Party and to facilitate the adjustment of the domestic industry. Such measure 
may consist of either the suspension of any further duty reduction provided for in Ch apter 2  (trade 
in goods)  of the Agreement, or the increase of the rate of customs duty on the originating good to 
a level not exceeding the lesser of (i) the MFN applied rate of customs duty in effect on the day of 
application of the bilateral safeguard  measure , and (ii) the MFN applied rate of customs duty in 
effect on 31 January 2019 .  
3.56.   Under Article 5.3  (conditions and limitations) , no bilateral safeguard measure shall be 
adopted for a period of more than two years  with a possible extension,  so the overal l period does 
not exceed four years . Bilateral safeguards may only be applied during the transition period.35  
3.57.   Article 5.4 requires an investigation prior to  the imposition of a bilateral safeguard measure 
which must be completed within one year following its date of initiation.  Article 5.5 sets out 
notification obligations for the Party seeking to impose a measure. Consultations on and possible 
compensation for a bilateral safeguard are provided for in Article 5.6.  
3.58.   Provisional bilateral safeguard s may be taken in critical circumstances , the duration of which 
shall not exceed 200 days  as in Article 6 of the WTO Agreement on Safeguards.  
3.4.2.3   Special safeguards   
3.59.   There are no changes to provisions, products or triggers on special safeguards. In Article 
2.5 of the Agreement  the Parties agree that  originating agricultural goods36 shall not be subject to 
any duties applied by the other Party pursuant to a special safe guard measure taken under the 
WTO Agreement on Agriculture.  Agricultural safeguard measures  (ASMs)  under the UK-Japan CEPA  
may be taken  by Japan  for the following goods: beef, pork, processed pork, whey protein 
concentrate, whey powder, fresh oranges, and race horses ( Section C of Part 3 to Annex 2 -A). As 
reported by the Parties, 13 agricultural safeguard measures for race horses have been applied by 
Japan after the Agreement entered into force.  
3.60.   Section C of Part 3 to Annex 2 -A specifies  (a) the originating agricultural goods that may be 
subject to ASMs ; (b) the trigger levels for applying such measures; and (c) the maximum rate of 
customs duty that may be applied in each year for each such good  (please, see Table 3.5 below for 
more detai led information).  
3.61.   If the conditions set out in Section C are satisfied, Japan has the right to increase the rate 
of customs duty on an originating agricultural good to a level not exceeding the lesser of (a) the 
MFN applied rate of customs duty in effect a t the time of the application of the ASM; (b) the MFN 
applied rate of customs duty in effect on the day immediately preceding the date of entry into 
force of the Agreement ; and (c) the rate of customs duty set out in Section C . No measure may be 
applied or  maintained on or after the date on which the rate of customs duty  referred to in 
subparagraph 3(c) of Sub -section 1 of Section C  is zero.  
 
35 The transition period is the period beginning on the date of entry into force of the Agreement and 
ending ten years after the date of completion of tariff reduction or elimination on that particular good in 
accordance with the Party's schedule in Annex 2 -A. 
36 Originating agricultural goods mean agricultural goods qualifying as originating goods of a Party 
(Article 2.5).  WT/REG441/1  
 
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  3.62.   For beef, pork, processe d pork, WPC, whey powder and fresh oranges, Japan reserves the 
right to  apply an ASM only if the aggregate volume of imports of originating agricultural goods 
from the UK, and from the EU37, for a particular year exceeds the trigger level as set out in Sub -
Sections 2  to 7 of Section C of Part 3 of Annex 2 -A of the UK -Japan CEPA .  
Table 3.5: Japan quantity and price -based agricultural safeguards  (ASM)  
HS line number  
(Product description)  Timeframe  Trigger  (metric 
tonnes per year, 
MT/Y)  Safeguard  
(customs duty)  
Beef     
020110.000, 020120.000, 
020130.010, 020130.020, 
020130.030, 020130.090, 
020210.000, 020220.000, 
020230.010, 020230.020,  
020230.030, 020230.090  14 years 
ASM ceases 
to be applied 
in 
accordance 
with the EU -
Japan EPA38 From 4 5,056 MT  
(Y1) to 50,500 MT  
(Y8); 
additional 385 MT 
per previous year 
(Y9-Y13). 
From Y14: 
additional 770  MT 
per previous year . 38.5% (Y1); 30% (Y2 -Y8); 20% (Y9 -Y12); 
18% (Y13). From Y14:  1% less of the 
previous year or the same rate depending 
on whether ASM was applied in previous 
year. 
 
020610.020, 020629 .020 38.5% (Y1); 32.7% (Y2); 30.6% (Y3); 30% 
(Y4-Y8); 20% (Y9 -Y12); 18% (Y13). From 
Y14: 1% less of the previous year or the 
same rat e depending on whether ASM was 
applied in previous year.  
Pork     
020311.040, 020312.022, 
020319.022, 020321.040, 
020322.022, 020329.022, 
020630.099, 020649.099  9 years  The level is decided 
under the 
conditions set out 
in Sub -Section 3.1.  4% (Y1); 3.4% (Y2 -Y4); 2.8% (Y5 -Y7); 
2.2% (Y8 -Y9).  
020312.021, 020312.023, 
020319.021, 020319.023, 
020322.021, 020322.023, 
020329.021, 020329.023, 
020630.092, 020630.093, 
020649.092, 020649.093  (i) the difference between CIF import price 
per kilogramme and the First Safeguard 
Standard Import Price39; and  
(ii) the first alternative rate40. 
020311.020, 020311.030, 
020321.020, 020321.030  (i) the difference between CIF import 
price/kg and the Second Safeguard 
Standard Import Price41; and  
(ii) the second alternative rate42 
Processed pork     
021011.010, 021011.020, 
021012.010, 021012.020,  
021019.010, 021019.020, 
021099.011, 021099.019, 
160241.011, 160241.019, 
160242.011, 160242.019, 
160249.210, 160249.220.  9 years  Y1-Y4: aggregate 
imports from the 
UK and the EU43 for 
the respective year 
exceeds 118% of 
the largest annual 
aggregate volume 
of imports during 
any of the 
preceding 3 fiscal 
years.  
Y5-Y9: aggregate 
imports from the 
UK and the EU44 85% of base rate45 (Y1-Y2); 60% of base 
rate (Y3-Y7); 45% of base rate (Y8 -Y9). 
 
37 As defined in Article 2.5.1 of the EU -Japan EPA and classified under the Schedule of Japan referred to 
in respective sub -sections of Sec tion C of Part 3 of Annex 2 -A to the EU -Japan EPA . 
38 If during any four consecutive years after the 15th year, Japan does not apply an agricultural 
safeguard measure under th e Sub-Section  2 on SG1* goods, it shall not apply any further agricultural 
safegua rd measures under this Sub -Section on such goods. The same applies to SG1** goods. (Paragraph 6, 
Sub-Section 2 of Section C of Part 3 of Annex 2 - A to the EU -Japan EPA).  
39 For details , please refer to paragraph 3.2(b) of Sub -Section 3, Section C, Part 3 to  Annex 2 -A. 
40 Ibid. 
41 For details , please refer to paragraph 3.2(c) of Sub -Section 3, Section C, Part 3 to Annex 2 -A. 
42 Ibid. 
43 For originating agricultural goods as defined in paragraph 1 of Article 2.5 of the EU -Japan EPA and 
classified under the SG3 safeguard in the Note in the Schedule of Japan referred to in paragraph 1 of Sub -
Section 4 of Section C of Part 3 of Annex 2 -A to the EU -Japan EPA.  
44 Ibid. WT/REG441/1  
 
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  HS line number  
(Product description)  Timeframe  Trigger  (metric 
tonnes per year, 
MT/Y)  Safeguard  
(customs duty)  
exceeds 121 % of 
the largest annual 
aggregate volume 
of imports during 
any of the 
preceding 3 fiscal 
years.  
Whey protein 
concentrate (WPC)     
040410.129, 040410.139, 
040410.149, 040410.169, 
040410.179, 040410.189  19 years 
ASM ceases 
to be applied 
in 
accordance 
with the EU -
Japan EPA . From 2,267 MT 
(Y1) to 7,438 MT 
(Y18).  
From Y19: 
additional 573 MT 
per previous year.  29.8%+120 yen/kg (Y1 -Y3); 23.8%+105 
yen/kg (Y4 -Y8); 19.4%+90 yen/kg (Y9 -
Y13); 13.4%+75 yen/kg (Y14 -Y18).  
From Y 19: the ad valorem  duty component 
of the customs duty reduced by 1.9% and 
the specific duty component by 10.70 
yen/kg  (if no ASM was applied in the 
previous year ); or reduced by 1% and 5 
yen/kg, respectively , if ASM was applied.  
Whey powder     
040410.129, 040410.139, 
040410.149, 040410.169, 
040410.179, 040410.189  14 years  
ASM ceases 
to be applied 
in 
accordance 
with the EU -
Japan EPA.  From 2,611 MT 
(Y1) to 5,190 MT 
(Y13).  
From Y14: 
additional 458 MT 
per previous year.  29.8%+75 yen/kg (Y1 -Y3); 23.8%+45 
yen/kg (Y4 -Y8); 13.4%+30 yen/kg (Y9 -
Y13).  
From Y14: the ad valorem  duty component 
of the rate of customs duty reduced by 2% 
and the specific duty component by 4 
yen/kg ( if no  ASM was applied in the 
previous year) ; or reduced by 1% and 2 
yen/kg, respectively, if ASM was applied.  
Fresh oranges     
080510.000  5 years  If aggregated 
imports from the 
UK and the EU 
exceed 2000 MT  (1 
December - 31 
March).  28% (Y1 -Y2); 20% (Y3-Y5). 
Race horses     
010129.290  13 years  If the CIF import 
price per good is 
less than 90% of 
the trigger price 
(the trigger price 
shall be agreed 
under paragraph 4 
of Sub -Section 8, 
or 10.7 million yen 
if no specific 
agreement.)  30% of the difference between the MFN 
duty and the duty under the Agreement , if 
the difference between the CIF import price 
and the trigger price > 10%, but <= 40% 
of the trigger price . 
50% of the difference between the MFN 
duty and the duty under the Agreement , if 
the difference between the CIF import price 
and the trig ger price > 40%, but <= 60% 
of the trigger price . 
70% of the difference between the MFN 
duty and the duty under the Agreement , if 
the difference between the CIF import price 
and the trigger price > 60%, but <= 75% 
of the trigger price . 
The difference betwe en the MFN duty and 
the duty under the Agreement , if the 
difference between the CIF import price and 
the trigger price > 75%. 
Source:  WTO Secretariat on the basis of the Agreement.  
 
45 For the purposes of subparagraph (a), the base rate is comprised of an ad valorem  duty component 
and a specific duty component, each of which is reduced to the percentages identified in subparagraph (a) of 
Sub-Section 4 to determine the rate of customs duty referred to in subparagraph 3(c) of Sub -Section 1. The 
ad valorem duty componen t of the base rate is 8.5 %, and the specific duty component is equal to 614.85 yen 
per kilogramme minus 60% of the CIF import price per kilogramme.  WT/REG441/1  
 
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  3.4.2.4   Balance of payments safeguards  
3.63.   Provisions on balance of payments safeguards are unchanged and include  that nothing in 
the Agreement shall be construed as preventing a Party from taking any measures for balance -of-
payments purposes. If a Party takes such measures,  it shall do so in accordance with Article XII of 
the GATT  1994 and the Understanding on the Balance -of-Payments Provisions of the General 
Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement. In addition , it is stated 
that nothing in th e Agreement shall preclude the use by a Party of exchange con trols or exchange 
restrictions in accordance with the Articles of Agreement of the International Monetary Fund  
(Article 2.20) . 
3.4.2.5   Other safeguard  measures  
3.64.   As in the EU -Japan EPA s afeguard provisions related to motor vehicles and parts are in 
Article  18 of Ann ex 2-C. The Parties agree that d uring the 10 years following the entry into force of 
the Agreement , each of the Parties  reserves the right  to suspend equivalent concessions or other 
equivalent obligations if the other Party does not apply or ceases to appl y a UN Regulation as 
specified in Appendix 2 -C-1. 
3.65.   The suspension  remains in place until the completion of an expedited dispute settlement 
procedure under Article 19 of Annex 2-C (see Section 3.5.3 below) , or a mutually acceptable 
solution is found, including through consultations under Article 19 (b) of Annex  2-C, which ever is 
earlier.  
3.4.3   Anti-dumping and countervailing measures  
3.66.   Under Section D of Chapter 5  the Parties maintain  their rights and obligations under the 
WTO Agreement s on Anti -Dumping (AD) and Subsidies and Countervailing Measures (SCM).  
3.67.   The provisions largely follow those in the EU -Japan EPA. In Article 5.12 the Part ies agree to 
conduct anti -dumping and countervailing duty investigations in a fair and transparent manner and 
based on the WTO Agreement s on AD and SCM . Prior to application o f provisional measures under 
the WTO AD and SCM Agreements  and in any case prior to the making of a final determination, 
each Party shall ensure full disclosure of the essential facts which form the basis for the decision 
on whether to apply provisional or  definitive measures. Such disclosure shall be made in writing 
and take place in sufficient time for interested parties to defend their interests.  Where an 
investigating authority of a Party intends to make use of the facts available pursuant to Article 6. 8 
of the  WTO AD Agreement, it shall inform the interested party of its intentions to do so and give a 
clear indication of the reasons it seeks to use the facts available.  
3.68.   Article 5.13  requires the investigating authority of the importing Party to provide 
opportunities for producers in the importing Party, importers and industrial users of the good and 
representative consumer organizations to submit their views in writing in relation to the 
antidumping  or countervailing duty investigation including concerni ng the potential impact of a 
duty on their situation.  
3.69.   Under Article 5.14 the investigating authority of the importing Party, upon receipt of a 
written application for the initiation of an anti -dumping investigation, is required to  notify, at least 
10 days  in advance of the initiation of such investigation, the exporting Party of such application.  
3.70.   The Parties also agree on  a "lesser duty rule", which provides for the investigating authority 
of the importing Party to consider whether the amount of the anti -dumping duty or the 
countervailing duty to be imposed shall be the full margin of dumping or subsidy or less , in 
accordance with the importing Party's laws and regulations (Article 5.15).  
3.71.   Chapter 3 (Rules of Origin and Origin Procedures) of the Agreement do es not apply to anti -
dumping and countervailing measures under the Agreement (Article 5.11).  
3.72.   The provisions of Section D of Chapter 5 are not subject to dispute settlement under 
Chapter  22 (Article 5.11) . WT/REG441/1  
 
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  3.4.4   Subsidies and state -aid 
3.73.   The provisions on subsidies follow those in the EU -Japan EPA and are set out in Chapter 12 
of the Agreement.  The Chapter applies to specific subsidies46 to the extent they are related to 
economic activities47 (Article 12.3).  Exceptions to the application of Chapter 12 are l isted in 
Article  12.3 and include, inter alia , subsidies granted to enterprises entrusted by the government 
with the provision of services to the general public for public policy objectives; to compensate the 
damage caused by natural disasters or other exc eptional occurrences; and to audio -visual 
services.  Other e xceptions to the application of Chapter 12 are : 
i. Article s 12.5 ( notification) and 12.6 ( consultations) do not apply to subsidies, the 
cumulative amounts or budgets of which are less than 450,000 spe cial drawing rights 
(SDR) per beneficiary for a period of three consecutive years . 
ii. Articles 12.6 ( consultations) and 12.7  (prohibited subsidies) do not apply to subsidies 
related to trade in goods covered by Annex 1 to the WTO Agreement on Agriculture  and 
subsidies  to trade in fish and fish products.  
iii. Article 12.7 in addition  does not apply to subsidies granted temporarily to respond to a 
national or global economic emergency .48 Such subsidies shall be targeted, economical, 
effective and efficient in order to remedy the identified temporary national or global 
economic emergenc y. 
iv. Article 12.7 also does not apply to subsidies granted by sub -central levels of government 
of each Party.  
3.74.   The Parties agree that nothing in Chapter 12 affects the rights and obligations of either 
Party under the WTO SCM Agreement, Article XVI of the GATT  1994 and Article XV of GATS 
(Article  12.4).  
3.75.   Notification requirements applicable to subsidies are stipulated in Article 12.5 and shall be 
made every two years, with the first notification no later than three  years from the date of entry 
into force of the Agreement. If a Party makes publicly available on an official website or notifies 
subsidies pursuant to Article 25.2 of the WTO SCM Agreement,  it shall be considered to have met 
the requirement s under the Agreement .49,50  
3.76.   Consultations may be held between the Parties if one Party considers that a subsidy of the 
other Party has , or could have , a significant negative effect on its trade or investment interests 
under Chapter  12 (Article 12.6) . The Party may submit a request for consultation in writing 
(Article  12.6) . The Parties shall enter into consultations with a view to resolving the matter, 
provided that the request includes an explanation of how the subsidy has or could have a 
significant negative effect on trade or investment between the Parties. The Party receiving a 
request for consultations on its subsidy shall consider providing information about the subsidy, if 
requested. In the event that  any information is not provided by the requested Party, that Party 
shall explain the absence of such information in its written response  (Article 12.6.4).  If after 
consultations the requesting Party still considers that the subsidy has or could have a negative 
effect on its trade or investment interests, under Chapter 12, the requested Party shall ac cord 
sympathetic consideration to the concerns of the requesting Part y.  
 
46 Further to Article 12.2 of the Agreement  which sets out definitions of economic activities and 
subsidies , specific subsidy means a subsidy which is determined mutatis mutandis  to be specific in accordance 
with Article 2 of the WTO SCM Agreement.  
47 For greater certainty, education provided under the domestic educational system of each Party shall 
be considered  as a non -economic activity  (footnote to Article 12.3.1) .  
48 For greater certainty, an economic emergency shall be understood as one that affects the whole 
economy of a Party (Article 12.3.6).  
49 As clarified in footnote 3 to Article 12.5(1) , in the case of  subsidies which have previously been  
notified, the information provided in updated notifications may be limited to indicating any  modifications, or the 
absence thereof, from the previous notification.  
50 On subsidies in services , please,  see also Section  4.6.4 of this factual presentation.  WT/REG441/1  
 
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  3.77.   Articles 12.7 prohibits subsidies of a Party that have or could have a significant negative 
effect on trade or investment between Parties.  Each Party shall ensure that enterprises use  
subsidies only for the specific purpose for which the subsidies were granted  (Article 12.8) . 
Article  12.9 states  that Article XX of the GATT 1994 and Article XIV of the GATS are incorporated 
into and made part of the Agreement, mutatis mutandis .  
3.78.   Paragrap h 5 of Article 12.6 ( consultations) is not subject to dispute settlement under 
Chapter 22 of the Agreement (Article 12.10).  
3.79.   In Article 2.14 on export competition, the Parties affirm their commitment under WTO 
Ministerial Decisions of 19 December 2015 on Ex port Competition, (WT/MIN(15)/45 and 
WT/L/980), to exercise utmost restraint with regard to export subsidies51 and export measures 
with equivalent effect. Japan and the UK d o not have export subsidy reduction commitments in 
Section II of Part IV of their r espective goods  schedules under the WTO . 
3.80.   Chapter 13 of the Agreement concerns state -owned enterprises  (SOEs) , enterprises granted 
special rights or privileges and designated monopolies , engaged in commercial activities. Where 
they engage both in commercial and non -commercial activities, only the commercial activities are 
covered by Chapter 13 (Article 13.2). Definitions used in Chapter 13 are set out in Article 13.1.  
3.81.   Exclusions to the a pplication of Chapter 13 include, (a) situations where covered enterprises 
act as procuring entities covered either under each Party's Annexes to Appendix I to the GPA or 
under Part 2 of Annex 10 to the Agreement conducting procurement for governmental pur poses 
and not with a view to commercial resale or with a view to use in the production of a good or in 
supply of a service for commercial sale; (b) any service supplied in the exercise of governmental 
authority; and (c) covered enterprises if in any one of  the 3 previous consecutive fiscal years the 
annual revenue derived from the commercial activities was less than 200 million SDR 
(Article  13.2.5). The provisions on non -discriminatory treatment and commercial considerations 
(Article 13.5) do not apply to : 
i. Supply of financial services by  SOEs pursuant to a government mandate which supports 
exports or imports or private investment outside the territory of the Party and is offered on 
terms consistent with the Arrangement52 (Article 13.2.6) .  
ii. Cabotage in mariti me transport services, air services or related services in support of air 
services53 (with exceptions54) and audio -visual services (Article 13. 2.7). 
iii. A covered enterprise to the extent it makes purchases and sales of a good or a service 
pursuant to any exis ting non -conforming measure s in accordance with  paragraph s 1 and 2  
of Article 8.12 and  paragraph s 1 and 2 of Article 8.18  as set out in the Parties' Schedule s 
in Annex I and Annex II to Annex 8 -B (Article 13.2.8).  
3.82.   The Parties affirm their rights and obligations under paragraphs 1 to 3 of Article  XVII of 
GATT 1994, the Understanding on the Interpretation of Article XVII of the GATT  1994 as well as 
under paragraphs 1, 2 and 5 of Article VIII of GATS  (Article 13.3) .  
 
51 "Export subsidies" means subsidies referred to in subparagraph (e) of Article 1 of the Agreement on 
Agriculture and other subsidies listed in Annex I to the SCM Agreement that may be applied to agricultural 
goods which are listed in Annex 1 to the Agreeme nt on Agriculture (Article 2.14).  
52 The Arrangement on Officially Supported Export Credits, developed within the framework of the 
Organisation for Economic Co -operation and Development (OECD) or a successor undertaking, whether 
developed within or outside of the OECD framework, that has been adopted by at least 12 original WTO 
Members that were Participants to the Arrangement as of 1 January 1979 (Article 13.1).  
53 The Parties clarify in the footnote that Section B "does not apply to a service using an aircr aft whose 
primary purpose is not the transportation of goods or passengers, such as aerial fire -fighting, flight training, 
sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towing, helicopter -lift for 
logging and constructio n, and other airborne agricultural, industrial and inspection services.".  
54 Section B of Chapter 8 applies to (i) aircraft repair and maintenance services during which an aircraft 
is withdrawn from service; (ii) the selling and marketing of air transport services; (iii) computer reservation 
system (CRS) services; and (iv) ground handling services.  WT/REG441/1  
 
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  3.83.   The Parties agree to respect and make best use of relevant international standards 
including, inter alia , the OECD Guidelines on Corporate Governance of State -Owned Enterprises . 
The Parties shall also ensure that any regulatory body or any other body exercis ing a regulatory 
function is independent from , and not accountable to any of the enterprises regulated by it , and 
acts impartially in like circumstances with respect to all enterprises it regulates including SOEs, 
enterprises granted special rights or priv ileges and designated monopolies (Article 13.6).  
3.84.   Article  13.7 defines an information exchange process if a Party has reason to believe that its 
interests under Chapter 13 are being adversely affected by the commercial activities of a covered 
enterprise of the other Party. The Parties also agree to share or otherwise make publicly available 
on an official website a list of state -owned enterprises  for the central level  of government and the 
designation of a monopoly.  
3.85.   The general exceptions of Article XX of G ATT 1994 and Article XIV of GATS are incorporated 
into and made part of the Agreement, mutatis mutandis  (Article 13.8).  
3.4.5   Customs -related procedures  
3.86.   Chapter 4 applies to matters relating to each Party's customs legislation, other trade -related 
laws and regulations and general administrative procedures related to trade, including their 
application to goods traded between the Parties, as well as cooperation between the Parties 
(Article 4.2) . Nothing in Chapter 4 affect s the Parties' rights and obligations under Chapters 6 
(SPS) and 7 (TBT) of the Agreement and in the case of any inconsistency, the provisions in these 
chapters prevail to the extent of the inconsistency. Objectives of Chapter 4 are set out in 
Article  4.1.  
3.87.   Transparency provisions (Article 4.3 ) require the Parties to publish their customs legislation 
and other trade related laws and regulations as well as general administrative procedures and 
relevant information of general application related to trade, including as appropriate on the 
Internet.  Customs legislation, other trade -related laws and regulations and general administrative 
procedures related to trade should be made available as early as possible before their entry into 
force except in certain situations. The Parties also  agree to  design ate enquiry points and provide 
for regular consultations between their customs authorities and other trade related agencies and 
traders or other stakeholders.  
3.88.   With regard to the procedures for import, export and transit (Article 4.4), the Parties agree 
to adopt or maintain measures granting favourable treatment prior to the release of goods to 
traders or operators fulfilling criteria specified in their laws and regulations , as well as , to promote 
the use of advanced systems including those based on informa tion and communication technology 
to facilitate the exchange of electronic data . They also agree  to work towards further simplification 
and standardi zation of data and documentation required by their customs authority and other 
trade -related agencies .  
3.89.   The Parties agree to adopt or maintain customs procedures that provide for the prompt 
release of goods; allow for advance electronic submission and processing of documentation prior to 
the arrival of the goods and allow for the release of goods prior to the f inal determination of 
customs duties, taxes, fees and charges (Article 4.5).  Simplification of customs procedures and 
advance rulings are set out in Articles 4.6 and 4.7, accordingly.  
3.90.   The Parties also guarantee the right of appeal or review (administrative and judicial) to any 
person to whom an administrative decision has been addressed by the customs authorities or 
other trade related agencies  (Article 4.8) . The provisions related to risk management, post -
clearance audit, transit and transhipment , customs cooperation  and temporary admission are 
covered in Article 4.9 -13, respectively.  
3.91.   A Committee on Rules of Origin and Customs Related Matters is established pu rsuant to 
Article 23.3 of the Agreement for the effective implementation and operation of Chapter 4 and the 
customs -related matters of Chapter 2 ( trade in Goods) and of Article 14.57 ( enforcement – border 
measures) as well as the other responsibilities spe cified in Article 3.27. Its functions are set out in 
Article 4.14.  WT/REG441/1  
 
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  3.4.6   Other regulations  
3.92.   There are no other regulations specific to trade in goods in the Agreement.   
3.5  Sector -specific provisions on trade in goods  
3.5.1    Agriculture  
3.93.   As a part of the  tariff elimination and reduction commitments, Japan grants preferential 
access for  some goods  originating in the UK in accordance with provisions of Section B of Part 3 of 
Annex 2 -A (known as the UK -Japan preferential tariff certificate ) covering, products such as  wheat 
products, mixes and doughs and cake mixes, various food preparations, coffee, tea, and cheeses. 
Certificates for these products are issued by Japan's Ministry of Agriculture, Forestry and Fishing 
annually. An importer making a claim for preferential treatment for any of these products must 
submit the certificate to the customs authority. Detailed information on the application and 
administration of  Japan's preferential treatment under the Agreement are presented in Annex 2 of 
this factual presentation .55  
3.94.   Coope ration in the field of agriculture , set out in Chapter 19 , aims at promoting cooperation 
on sustainable agriculture, including rural development and the exchange of technical information 
and best practices for providing safe and high -quality foods for consumers in the UK and Japan  
(Article 19.1) .  
3.95.   A Working Group on Co operation in the Field of Agriculture is established pursuant to 
Article  23.4 of the Agreement; its functions are set out in Article 19.5.  As reported by the Parties, 
the Working Group on Cooperation in the Field of Agriculture has not been held yet. The P arties 
have also agreed to establish contact points to facilitate communications between the Parties on 
any matter relating to Chapter 19 (Article 19.6).  As reported by the Parties, the contact points for 
the UK the DIT agreement managers , and MOFA is the contact point for Japan.  
3.96.   The provisions of Chapter 19 are not subject to dispute settlement under Chapter 2 2 of the 
Agree ment (Article 19.8).  
3.5.2    Wine and Shochu  
3.97.   Facilitation of wine product (classified under HS 22.04) export is covered in Section C of 
Chapte r 2 of the Agreement.  
3.98.   The Parties agree on a three -phase a uthorization of oenological practices as set out  in 
Articles 2.24 -26 and Annex 2 -E (facilitation of wine product export).  The Joint Committee  may 
adopt decisions amending Annex 2 -E, to add, delete or modify references to oenological practices, 
restrictions and other elements (Article 2.30).  As reported by the Parties, the provisions on self -
certification of wine products originating in Japan (Articles 2.27 and 2.28) are no longer relevant in 
the context of wine trade between the UK and Japan, since the requirement for VI -1 certificates on 
all wine imported to the UK was removed from 1st January 2022.  
3.99.   Annex 2 -D (facilitation of Shochu export) permits single distilled shochu (as defined 
under  Japan's Liquor Tax Law) to be placed in the U K market in bottles of four go (合) (720m l), 
five go (合) (900ml)  and one sho (升) (1,800ml ).  
3.100.   A Working Group on Wine is established pursuant to Article 23.4 of the Agreement; its 
modalities are set out in Article 2.27.  
3.5.3   Motor vehicles  
3.101.   Provisions related to motor vehicles and parts are covered in Annex 2 -C to the Agreement 
and two related Appendixes : Appendix 2 -C-1 lists 85 UN Regulations applied by both Parties 
 
55 For additional details, please also refer to Section 3.1.4 and Annex 2 of the factual presentation for 
the EU -Japan EPA (document WT/REG396/1).  WT/REG441/1  
 
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  concerning motor vehicles  and Appendix 2 -C-2 lists 2 UN Regulations concerning motor vehicles 
which are applied by the UK, but not yet considered by Japan . 
3.102.   The Annex applies to all products of motor vehicles, their parts and equipment regulated 
by two prior UN Agreements, in 1958 and 1998 , and  excludes products used exclusively for 
agriculture or forestry  (Article 2) . Its objectives are to promote high levels of safety, 
environmental  protection, energy efficiency and anti -theft performance of motor vehicles ; to 
facilitate trade between the Parties through regulatory cooperation and elimination of non-tariff 
measures ; to enhance the international harmonization of requirements and the m utual recognition 
of type approvals ; and to achieve convergence of regulatory requirements of the Parties through 
the application of UN Regulations and global technical regulations  (Article 3) .  
3.103.   The p rovisions on relevant international standards and standardising body, application of, 
amendments to, establishment of and cessation of application of relevant UN Regulations are set 
out in Articles 4 -8 of Annex 2 -C. The Parties also agree to amend Appendix 2 -C-1 or 2 -C-2 based 
on an assessment by the Work ing Group on Motor Vehicles and Parts .  
3.104.   Article 10 concerns international whole vehicle type approvals under UN Regulation No. 0 
which the Parties commit to accept  and cooperate in the implementation of , to facilitate its 
worldwide use and enlarged coverag e. Article 12 includes  disciplines on the introduction of 
domestic technical regulations. Consultation s on the introduction or amendment of domestic 
technical regulations  are foreseen  in Article 13. Regulatory exceptions to the disciplines of 
Annex  2-C are permitted under Article 15, for urgent and compelling risks for human health, safety 
or the environment. A joint cooperation procedure is set out in Article 17 on any matters 
concerning covered products.  
3.105.   The Parties agree to refrain from amending existing domestic technical regulations in a 
manner that renders them more trade -restrictive than necessary to fulfil a legitimate objective for 
the importation and the putting into service on their domestic market of products for which type 
approvals have  been granted pursuant to UN Regulations  (Article 11) . They also agree to not 
prevent or unduly delay the placing on their markets of new technologies or features that are not 
yet regulated, unless there are duly substantiated risks  to human health, safety  or the 
environment (Article 14) . In Article 16, the Parties state their understanding on regulatory 
measures restricting trade.  
3.106.   A safeguard mechanism for motor vehicles under Article 18 of Annex 2 -C permits a Party 
to suspend equivalent concessions or ot her obligations in the event that the other Party does not 
apply or ceases to apply a UN Regulation that listed in Appendix 2 -C-1. The measure remains in 
place until the completion of an accelerated dispute settlement procedure under Article 19 of 
Annex  2-C. As reported by the Parties, there has been no use of the safeguard mechanism to date.  
3.107.   A Working Group on Motor Vehicles and Parts is established pursuant to Article 23.4 of the 
Agreement; its functions are set out in Article 20.2 of Annex 2 -C. As report ed by the Parties,  the 
first meeting of the UK-Japan Working Group on Motor Vehicles and Parts took place on 24 June 
2022 .  
3.108.   Chapter 22 ( dispute settlement) applies to Annex 2 -C as modified by  Article 19 of 
Annex  2-C.  
4  PROVISIONS ON TRADE IN SERVICES  AND INVESTMENT  
4.1.  The p rovisions related to trade in services, investment liberalization and electronic commerce 
are covered in Chapter 8 of the Agreement : Section A sets out  general provisions  (Articles 8.1 -5); 
Section B  concerns investment liberali zation  (Articles 8.6 -13); Section C  provides for cross border 
trade in services ( Articles 8.14 -19); Section D  sets out provisions for entry and temporary stay of 
natural persons  (Articles 8.20 -28); and Section E concerns regulatory framework (Articles 8.29 -
69). Section  F covers provisions related to electronic commerce (Articles 8.70 -86).56  
 
56 On electronic  commerce, refer to Section 5.13 of this factual presentation.  WT/REG441/1  
 
- 34 - 
 
  4.2.  Parties have taken a "negative list" approach to scheduling commitments in investment and 
cross border trade in services. Annexes I and II to Annex 8 -B contain reservat ions for existing 
measures and future measures of the Parties, respectively.  Annex III concerns business visitors for 
establishment purposes, intra -corporate transferees, investors and short -term business visitors, 
and Annex IV concerns contractual service providers and independent professionals.  
4.3.   A Committee on Trade in Services, Investment Liberalisation and Electronic Commerce is 
established pursuant to Article 23. 3. Its functions are described in Article 8.4 and include, 
inter alia, discussing regulatory matters and enhancing cooperation with regards to trade in audio -
visual services. As reported by the Parties, t he first meeting of the Committee on Trade in 
Services, Investment Liberalisation and Electronic Commerce took place on 1st November 2021 
online .  
4.1  Scope and definitions  
4.4.  There are no changes to the scope of the commitments on services  in comparison with the 
Japan -EU Economic Partnership Agreement . The Parties affirm their commitments under the WTO 
Agreement and their pledge  to create a better climate for the development of trade and 
investment between the m and agree to create arrangements for the progressive and reciprocal 
liberalization of trade in services and investment and for cooperation on electronic commerce  
(Article 8.1 .1).  
4.5.  The Parties confirm  their right to adopt within their territories  regulatory measures necessary 
to achieve legitimate policy objectives, such as protection of public health, safety, the environment 
or public morals, social or consumer protection or the promotion and protection of cultural 
diversity (Article 8.1.2). Chapter  8 does not apply to measures affecting natural persons of a Party 
seeking access to the employment market of the other Party, nor to measures regarding 
nationality or  citizenship, residence or employment (Articles 8.1.3). Definitions used in Chapter 8 
are set out in Article 8.2.  
4.6.  The p rovisions  on cross border trade in services (Section C) and investment liberalization  
(Section B)  do not apply to cabotage in maritime tr ansport services57, air services or related 
services in support of air services58 (with exceptions59) or audio -visual services (Article s 8.6.2 and 
8.14.2 ). On government procurement and subsidies60, Section C (cross border trade in services) 
does not apply  (Article 8.14.2) . Under Section B (investment  liberalization)  provisions on market 
access, national treatment, MFN and senior management and boards of directors  do not apply to 
any measure by a Party with respect to government procurement and/or subsidies; in addition, 
Article  8.11 (prohibition of performance requirements) does not apply to government procurement 
(Article 8.12.5 -6).  
4.2  Denial of benefits  
4.7.  As in the EU-Japan EPA a  Party may deny the benefits of Section B to an entrepreneur that is 
a juridical person of the other Party and its covered enterprise if that juridical person is owned or 
controlled by a natural or juridical person of a third country and the denying Party adopts or 
maintains measures in relation to the third country that (a) are related to the maintenance of 
international peace and security, including the protection of human rights, and (b) prohibit 
transactions with that juridical person or i ts covered enterprise or would be violated or 
 
57 For the United Kingdom, cabotage in maritime transport services under this Section covers 
transportation of passengers or goods between a port or point located in the United Kingdom and another port 
or point located in the United Kingdom, including on its  continental shelf, as provided for in the United Nations 
Convention on the Law of the Sea and traffic originating and terminating in the same port or point located in 
the United Kingdom.  
58 The Parties clarify in the footnote that Section s B and C of Chapt er 8 do "not apply to a service using 
an aircraft whose primary purpose is not the transportation of goods or passengers, such as aerial fire -fighting, 
flight training, sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towin g, 
helicopter -lift for logging and construction, and other airborne agricultural, industrial and inspection services."  
59 Section s B and C  of Chapter 8 appl y to (i) aircraft repair and maintenance services during which an 
aircraft is withdrawn from service;  (ii) the selling and marketing of air transport services; (iii) computer 
reservation system (CRS) services; and (iv) ground handling services.  
60 As defined in Chapter 12 of the Agreement.  WT/REG441/1  
 
- 35 - 
 
  circumvented if the benefits of Section B were accorded to them  (Article 8.13) . Identical provisions 
concern denial of benefits in relation to service suppliers and services of that service supplier 
(Article 8. 19). 
4.3  General provisions on trade in services  and investment  
4.8.   The p rovisions on trade in services and investment are covered by Chapter 8 and Annexes 
8-A, 8-B and 8 -C to the Agreement.   
4.9.  Articles 8.12 and 8.18 on non -confirming measures and exceptions clarify that provisions on 
market access, national treatment, MFN,  performance requirements and senior management and 
board of directors  do not apply to existing and future non-confirming measures listed by the 
Parties in Annex I  and II  to the Agreement,  as well to the continuation, renewal, amendment or 
modification  of such measures , as long as it does not decrease the conformity of such measure s 
with the mentioned provisions.  For the UK, such exclusion applies at the level of the central, 
regional, or local government. For Japan  - at the level of the central government, a prefecture and 
a local government  other than a prefecture . 
4.3.1   Market access  
4.10.   In respect of services  and investment , market access commitments in Article 8.15 and 8.7 
respectively of the Agreement follow GATS Article XVI provisions .  
4.3.2   National treatment and MFN  
4.11.   National treatment and MFN provisions for trade in services are set out in Articles 8.16 and 
8.17, respectively,  of the Agreement. For investment, Articles 8.8 and 8.9 of the Agreement cover 
national treatment and MFN provisions.  
4.12.   On cross border trade in services  and investment , Article s 8.16 and 8.8 respectively require 
each Party to accord to services and service  suppliers and entrepreneurs and covered enterprises 
of the other Party treatment no less favourable than that it accords to its own like services and 
service suppliers  and entrepreneurs and enterprises  with respect to establishment in their own 
territorie s for Article 8.8 . For services t his requirement can be met by providing formally identical 
or formally different treatment to the treatment it provides to like services or suppliers of the other 
Party. Article 8.17 and 8.9 furthermore requires  each Party  to accord to services and service 
suppliers and entrepreneurs and covered enterprises of the other Party treatment no less 
favourable than they accord to like services and service suppliers and entrepreneurs and 
enterprises of a third country.  
4.3.3   Commercial presence  
4.13.    Commercial presence is covered by Section B  (Investment liberalisation)  of Chapter 8 of 
the Agreement , which  applies to measures by a Party with regard to the establishment or 
operation of economic activities by entrepreneurs of the other Party a nd their covered enterprises 
(Article 8.6.1). The provisions of Section B go beyond the GATS definition of mode 3, as they also 
relate to  the establishment of companies producing goods (Article 8.2(f)).   
4.14.   For cross -border trade in services, a Party shall not adopt or maintain measures which 
require a service supplier of the other Party to establish or maintain any form of enterprise or to 
be resident in the territory of the Party as a condition for the cross -border supply of a service  
(footnote to Article 8.15(a)(i)).  WT/REG441/1  
 
- 36 - 
 
  4.3.4   Performance requirements  
4.15.   The Agreement prohibits the application of performance requirements in connection with the 
establishm ent or operation of any enterprise in the territory of a Party .61 Detailed provisions and 
applicable exceptions are found in Article 8.11.  
4.3.5   Senior Management and Boards of Directors  
4.16.   The Parties agree to not require a covered enterprise to appoint individua ls of any particular 
nationality as executives, managers or members of boards of directors (Article 8.10).  
4.3.6   Movement of natural persons  
4.17.   Entry and temporary stay of natural persons are covered in Section D of Chapter 8, and 
Annex  B-III, B -IV and 8 -C to the A greement .  
4.18.   Section D of Chapter 8 applies to measures affecting the entry and temporary stay for 
business purposes of natural persons, who are business visitors for establishment purposes, intra -
corporate transferees (IC Ts), investors, contractual service suppliers (CSS), independent 
professionals (IPs) and short -term business visitors.62  
4.19.   A Party shall grant entry and temporary stay to natural persons of the other Party for 
business purposes, in accordance with Section D of Chapter 8 and Annexes III and IV  of Annex 8 -
B, provided that those natural persons comply with the immigration laws and regulations of the 
former Party applicable to the entry and temporary stay (Article 8.22). The Parties also agree to 
make publicly available information on categories o f visas available, including information on 
documentary requirements, application fees and the maximum length of stay permitted under 
each type of authorization  (Article 8.23) .  
4.20.   Article 8.24 clarifies that the Agreement does not impose any obligation on a Party 
regarding its immigration measures, except as specifically provided for in Section D of Chapter 8. 
The following obligations from other sections of the Agreement are incorporated into Section D of 
Chapter 8:  
i. Articles 8.7 to 8.1163 of Section B ( investment liberalisation) of Chapter 8  apply to the 
measures affecting treatment of natural persons for business purposes present in the 
territory of the other Party under the categories of : (i) business visitors for establishment 
purposes, (ii) intra-corporate transferees and (iii) investors ; and 
ii. Articles 8.15 and 8.1664 and 8.17 (MFN) of Section C ( cross-border trade in services) of 
Chapter 8  apply to the measures affecting treatment of natural persons for business 
purposes present in the territory of the  other Party under the categories of: (i) contractual 
service suppliers and (ii) independent professionals for all sectors listed in Annex IV to 
Annex   8-B; and (iii) short -term business visitors in accordance with Annex III to Annex 
8-B;  
 
 
61 The footnote to Article 8.11.1 clarifies that nothing in paragrap h 1of Article 8.11 prevents the UK from 
enforcing an undertaking voluntarily given by a person in relation to a takeover or merger. An "undertaking 
voluntarily given" means that it is not imposed or required by the United Kingdom as a condition of approval  of 
the takeover or merger.  
62 As defined in Article 8.21.  
63 Articles 8.7 to 8.11 of the Agreement cover the provisions on market access, national treatment, 
MFN, senior management and boards of directors, and  prohibition of  performance requirements, respectively. 
The provisions of these articles are incorporated t o Section D subject to the provisions of Articles 8.6 ( scope) 
and 8.12 ( non-conforming measures and exceptions), as applicable . 
64 Article 8.15 and 8.16 of the Agreement cover the provisions on market access and national 
treatment, respectively. The provisi ons of these articles are incorporated to Section D subject to the provisions 
of Articles  8.14 ( scope) and 8.18 ( non-conforming measures), as applicable.  WT/REG441/1  
 
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  4.21.   For business vi sitors for establishment purposes, ICTs and investors of the other party, the 
Parties agree to grant entry and temporary stay in accordance with Annex III to Annex 8 -B, and 
not to adopt or maintain  numerical quotas or the economic needs test limitations on  the total 
number of natural persons participating in a specific sector or sub -sector  either on the basis of a 
territorial subdivision or on the basis of its entire territory  (Article 8.25) . Annex III of Annex 8 -B to 
the Agreement contains reservations for  both Parties  concerning the entry and temporary stay of  
business visitors for establishment purposes, ICTs, investors and short -term business visitors . 
Paragraph 1 of the Schedule of the UK under Annex III of Annex 8 -B provides that existing non -
conforming measures do not apply to Articles 8.25 ( business visitors for establishment purposes, 
ICTs and investors ) and 8.27 ( short-term business visitors) , to the extent of the non -conformity. 
For short term business visitors  from the UK,  Japan65 agrees to grant entry and temporary stay for 
up to 90 days (Article 8.27).  
4.22.   For CSS and IPs, each Party agree s to grant entry and temporary stay in accordance with 
Annex IV to Annex  8-B (Article 8.26) . Appendix IV lists limitations o n the business act ivities of CSS 
and IPs in Japan. The UK Schedule allow s the supply of services in its territory by CSS or IPs of 
Japan through the presence of natural persons in accordance with Article 8.26 ( CSS and IPs ) in 
respect only of the sectors listed in the Schedu le66, and by reference to the limitations listed in 
paragraph 13 of Annex IV. Japan's Schedule to Annex IV specifies the lists of business activities 
allowed for CSS and IPs from the UK, with the limitations further clarified  in Appendix IV. 
Compared to the EU -Japan EPA, apart from technical modifications, the UK has scheduled 
commitments on temporary stay for accompanying partners and dependent children of ICTs 
(managers and specialists).  
Table 4.1 Comparison of categories and length of stay for temporary entry of business 
visitors in the UK -Japan CEPA and the GATS  
Category  Maximum length of stay  Commitments 
for spouses 
and/or 
dependents 
under the  
UK-Japan CEPA  UK-Japan CEPA  GATS  
United Kingdom     
(i) Business visitors 
for establishment 
purposes  Up to 90 days in any 12 -
month period.  The duration of "temporary stay" 
of business visitors is defined by 
the UK laws and regulations 
regarding entry, stay and work.  --- 
(ii) Intra-corporate 
transferees  
• managers  
• specialists  Up to 3 years, extendable.  The duration of "temporary stay" 
of intra -corporate transfers is 
defined by the UK laws and 
regulations regarding entry, stay 
and work.  Yes 
 
(iii) Investors  Up to 1 year.  No commitments.  --- 
(iv) Contractual 
service suppliers  A cumulative period of not 
more than 6 months in any 
12-month period or for the 
duration of the contract, 
whichever is less.  A period of not more than 3 
months in any 12 -month period 
or for the duration of the 
contract, whichever is less.  --- 
 
65 The Footnote to Article 8.27 clarifies that the United Kingdom does not take commitments in respect 
of short -term business visitors.  
66 Paragraphs 7 and 10 to the UK's Schedule to Annex IV of Annex 8 -B. In addition to the sectors/sub -
sectors listed in the UK's GATS commitments, under the Agreement the category of CSS has been liberalised 
for bookkeeping s ervices; computer and related services; R&D services; market research and opinion polling 
services; related scientific and technical consulting services; related scientific and technical consulting services; 
mining; maintenance and repair of vessels; maint enance and repair of rail transport equipment; maintenance 
and repair of motor vehicles, motorcycles, snowmobiles and road transport equipment; maintenance and repair 
of aircrafts and parts thereof; maintenance and repair of metal products, of (non -office)  machinery, of (non -
transport and non -office) equipment and of personal and household goods; translation and interpretation 
services; telecommunication services; postal and courier services; environmental services; insurance and 
insurance related services advisory and consulting services; other financial services advisory and consulting 
services; transport advisory and consulting services; travel agencies and tour operators' services; tourist 
guides services; and manufacturing advisory and consulting servic es.  WT/REG441/1  
 
- 38 - 
 
  Category  Maximum length of stay  Commitments 
for spouses 
and/or 
dependents 
under the  
UK-Japan CEPA  UK-Japan CEPA  GATS  
(v) Independent 
professionals  A cumulative period of not 
more than 6 months in any 
12-month period or for the 
duration of the contract, 
whichever is less.  No commitments.  --- 
(vi) Short term 
business visitors  No commitments.  No commitments.  --- 
Japan      
(i) Business visitors 
for establishment 
purposes  Up to 90 days.  Up to 90 days.  --- 
(ii) Intra -corporate 
transferees  Up to 5 years.  Up to 5 years.  Yes 
(iii) Investors  Up to 5 years.  No commitments.  Yes 
(iv) Contractual 
service suppliers  Up to 5 years.  Up to 5 years.  Yes 
(v) Independent 
professionals  Up to 5 years.  Up to 5 years.  Yes 
(vi) Short term 
business visitors  Up to 90 days.  Up to 90 days.  --- 
Source:  WTO Secretariate based on Annex III and IV to the Agreement and the Parties' GATS schedules.  
 
4.23.   Annex 8 -C contains procedural commitments related to entry and temporary stay of natural 
persons for business purposes , as well as the Parties understandings regarding cooperation on 
return and readmission of natural persons staying in a Party in contravention of its rules for entry 
and temporary stay.  
4.24.   The Parties agree to designate a contact point for the effective implementation and 
operation o f Section D of Chapter 8 and notify the contact details including information regarding 
the relevant officials.  As reported by the Parties, t he contact point for Japan is the European Union 
Economic Affairs Division, Economic Affairs Bureau , while for the UK it is Bilateral Trade Relations 
in the Department for International Trade.  
4.4  Liberalization commitments  
4.4.1    The United Kingdom  
4.4.1.1   MFN and horizontal commitments  
4.25.   Under the GATS, the UK has a broad reservation for services considered as public utilities at 
a nati onal or local level, and for types of establishment ; other horizontal restrictions apply to 
mode  4. Under the Agreement, as under the GATS, the UK has, inter alia , a horizontal "public 
utilities carve -out"67, limitations on the form of certain legal entities, and possible preferential 
treatment for the right of establishment resulting from existing or future bilateral agreements. 
Moreover, under the Agreement, the U K has a  horizontal reservation concerning services 
performed in connection with defence  and national security  (including production, distribution and 
trade in war materials) . 
4.26.   Under the GATS, the UK has a number of MFN exemptions in areas such as audiovisual 
services , a variety of transport services and financial services. A number of MFN exe mptions have 
also been registered for all sectors and with respect to, inter alia , existing and future bilateral 
 
67 Public utilities exist in sectors such as related scientific and technical consulting services, research and 
development (R&D) services on social sciences and humanities, technical testing and analysis services, 
environmental services, health servic es, transport services and services auxiliary to all modes of transport. The 
reservation does not apply to telecommunications and to computer and related services.  WT/REG441/1  
 
- 39 - 
 
  agreements with third -parties .68 Under the Agreement, MFN treatment commitments for 
investment liberali zation and for cross -border trade in ser vices are referred to in Article s 8.9 and 
Article 8.17 , respectively. In Annex 8 -B-I and 8 -B-II, the UK lists reservations for rental or leasing 
services and other business services related to aviation69, maritime transport and any other 
commercial activit y undertaken from a ship (registering a vessel and operating a fleet under the 
flag of the UK) , inland waterways transport and auxiliary services to inland waterways transport , 
and MFN exemptions for road and rail transport, and air transport (services aux iliary to air 
transport).  The UK has also listed a broad reservation with regards to the collection, purification, 
and distribution of water .70 
4.4.1.2   Sector specific commitments  
4.27.   The following section identifies some of the main differences, by sector, between th e UK's 
specific commitments under the GATS and its sector -specific commitments under the Agreement. 
Under the Agreement as in the GATS the UK has made commitments in  eleven  out of twelve  
sectors identified in the WTO Services Sectoral Classification (W/120).  Under the Agreement, t he 
UK's reservations in the Annexes are without prejudice to the rights and obligations of the Parties 
under the GATS.   
4.28.   Under Annex I to Annex 8 -B on existing measures, measures affecting cabotage in maritime 
transport are not listed in the UK Schedule as they are excluded from the scope of Section B and C 
of Chapter 8 (Articles 8.6 and 8.14, respectively). In total, t he UK  lists 9 reservations  under Annex 
8-B-I. Annex II to Annex 8 -B contains the UK's  16 future reservations on investment and cross 
border trade in services.71 There are no significant changes compared to the EU -Japan EPA.  
4.29.   Table 4. 2 provides a comparison  of the UK's GATS specific commitments in modes 1 -3 with 
those taken under the Agreement. Horizontal limitations and MFN reservations are not taken into 
account in the table which should be read in conjunction with  the respective Annexes of  Annex  8-B 
to the Agre ement.  There is, as yet, no certified UK Schedule of Specific Commitments; the 
proposed draft has been circulated in series S/C/W/380 .  
Table 4.2 United Kingdom: Comparison between the GATS and Agreement specific 
commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  Future 
Measures  Existing 
Measures  Future 
Measures  
(Annex I)  (Annex II)  (Annex I)  (Annex II)  
1. Business services              
A. Professional  Services  Partial  Similar  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Full Same  … … … … 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  Partial  … 
D. Real  Estate  Services  Full Same  … … … … 
E. Rental/Leasing  Services  without  
Operators  Partial  Improved  Partial  … Partial  … 
 
68 Document S/C/W/381.  
69 The UK's list of reservations as specified in Annex II to the Agreem ent states that differential 
treatment to a third country can be accorded  pursuant to existing or future bilateral agreements relating to the 
following services: (i) the selling and marketing of air transport services; (ii) computer reservation system 
(CRS) services; (iii) maintenance and repair of aircrafts and parts; or (iv) rental or leasing of aircraft without 
crew.  
70 Reservation No. 14 by the UK (Annex 8 -B-II). 
71 They include placement services for domestic help personnel, other commercial or industrial workers, 
nursing and other personnel (CPC 87204, 87205, 87206, 87209); investigation services (CPC 87301); 
broadcast transmission services; publicly funded education, health71 and social71 services; th e supply of library, 
archive, museum and other cultural services; pilotage and berthing services (CPC 7452); inland waterways 
passenger and freight transportation (CPC 722); services auxiliary to inland waterways transportation; railway 
passenger and freig ht transportation (CPC 711); space transport and rental of space craft (CPC 733, part of 
734); fishing, aquaculture and services incidental to fishing (ISIC Rev. 3.1 0501, 0502, CPC 882); collection, 
purification and distribution of water and "new services ". WT/REG441/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  Future 
Measures  Existing 
Measures  Future 
Measures  
(Annex I)  (Annex II)  (Annex I)  (Annex II)  
F. Other  Business  Services  Partial  Similar  Partial  Partial  Partial  Partial  
2. Communication services              
A. Postal  services  … New Partial  … Partial  … 
B. Courier  services  …  New Partial  … Partial  … 
C. Telecommunication  services  Partial  Improved  … Partial   …  Partial  
D. Audiovisual services  … Same  Excluded  Excluded  Excluded  Excluded  
E. Other  … Same  … … … … 
3. Construction and related 
engineering services              
A. General  construction  work for buildings  Partial  Improved  … … … … 
B. General  construction  work for civil  
Engineering  Partial  Improved  … … … … 
C. Installation  and assembly  work  Partial  Improved  … … … … 
D. Building  completion  and finishing  work  Partial  Improved  … … … … 
E. Other  Partial  Improved  … … … … 
4. Distribution services              
A. Commission  agents'  services  Partial  Improved  … … … … 
B. Wholesale  trade  services  Partial  Similar  … Partial  … Partial  
C. Retailing  services  Partial  Improved  … Partial  … Partial  
D. Franchising  Partial  Improved  … … … … 
E. Other  … Same  … … … … 
5. Education services              
A. Primary education services  Partial  Improved  … Partial  … Partial  
B. Secondary education services  Partial  Improved  … Partial  … Partial  
C. Higher education services  Partial  Improved  … Partial  … Partial  
D. Adult education  Partial  Improved  … Partial  … Partial  
E. Other education services  … Same   … Excluded   … Excluded  
6. Environmental services              
A. Sewage services  Partial  Improved  … … … … 
B. Refuse disposal services  Partial  Improved  … … … … 
C. Sanitation and similar services  Partial  Improved  … … … … 
D. Other  Partial  Improved  … … … … 
7. Financial services              
A. All insurance  and insurance -
related  services  Partial  Similar  … Partial  … … 
B. Banking  and other  financial  services  Partial  Similar  … Partial  … Partial  
8. Health related and social services              
A. Hospital services  Partial  Narrower  … Partial  … Partial  
B. Other Human Health Services  … New … Partial  … Partial  
C. Social Services  Partial  Narrower  … Partial  … Partial  
D. Other  … Same  … … … … 
9. Tourism and travel related services              
A. Hotels  and restaurants (including 
catering)  Partial  Improved  … … … … 
B. Travel agencies  and tour operators   
services  Full Same  … … … … 
C. Tourist  guides  services  Full Same  … … … … 
D. Other  … Same  … … … … WT/REG441/1  
 
- 41 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  Future 
Measures  Existing 
Measures  Future 
Measures  
(Annex I)  (Annex II)  (Annex I)  (Annex II)  
10. Recreational and cultural and 
sporting services              
A. Entertainment  services  Partial  Narrower  … Excluded  … … 
B. News agency services  Full Same  … … … … 
C. Libraries, archives, museums and other 
cultural services  … Same  …  Excluded   … Excluded  
D. Sporting and other recreational services  Partial  Similar  … Excluded  … Partial  
E. Other  … Same  … … … … 
11. Transport services              
A. Maritime Transport Services  … New Partial  Partial  Partial  Partial  
B. Internal Waterways Transport  … New Partial  Partial  Partial  Partial  
C. Air  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Space  Transport  … Same  …  Excluded   … Excluded  
E. Rail  Transport  Services  Partial  Similar  Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Similar  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  … New  … Partial  …  Partial  
H. Services  auxiliary  to all modes  of  
Transport  Partial  Similar  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  Partial  Similar  Partial  …  Partial  …  
12. Other services not included 
elsewhere  … Improved  … Partial  … Partial  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . 
Full: Specific commitments not subject to limitation(s) under market access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment.  
… : No specific commitment . No existing or future measures are indicated . 
New: New commitments full or partial, with or without limitations.  
Improved: Overall improved commitments under the Agreement compared to those under the GATS.  
Narrower: Some additional limitations (as compared to GATS commitments).  
Same:  Identical commitments.  
Similar:  Similar liberalization possibly, in individual cases, with limited improvements and/or limited 
additional reservations. The assessment is based on a broad perspective taking into consideration 
both sectoral coverage and the level of specific commitments.  
Excluded: Sector or subsector excluded from the Agreement ; or broad reservation s for future measures apply.  
Source:   The United Kingdom's schedules  annexed to the UK-Japan CEPA and the United Kingdom GATS 
Specific C ommitments . 
 
4.4.1.2.1   Business services  
4.30.   In compari son to its GATS commitments, the UK has improved its commitments for taxation 
services , building -cleaning services , photographic services ; packaging services , and has undertaken 
new commitments for research and development (R&D) services (CPC 851, 853), services 
incidental to manufacturing and energy distribution (CPC 887)  and collection agency services and 
credit reporting services .  
4.31.   Unlike its GATS commitments, the UK has introduced new reservation s for legal services 
(part of CPC 861, part of 87902) , R&D services on social sciences and humanities (part of CPC 
85201) , technical testing and analysis services (part of CPC 86764, CPC 86769, CPC 8868) . 
4.32.   The broad "public utilities" carve -out may also app ly to business services.  WT/REG441/1  
 
- 42 - 
 
  4.4.1.2.2   Communication services72 
4.33.   In comparison to its GATS commitments, the UK has improved commitments for 
telecommunication services and has undertaken new commitments for  postal and courier services 
(part of CPC 71235, part of CPC 73210 , part of CPC 751) . As under the GATS, the UK has reserve d 
the right to adopt or maintain any measure with respect to broadcast transmission service s, and 
audio-visual services are carved -out of the application of Section B (Investment liberalization) and 
C (Cross -border trade in services)  of the Agreement  (Articles 8.6 and 8.14 , respectively ). 
4.4.1.2.3   Construction and related engineering services  
4.34.   The UK has improved its GATS commitments  for construction and related engineering 
services,  as no existing or future measures have been indicated for this sector.  
4.4.1.2.4   Distribution services  
4.35.   In comparison to its GATS commitments, the UK has improved  coverage  and has 
undertak en new commitments for retail sales of pharmaceutical, medical and orthopaedic goods, 
and other services provided by pharmacists (CPC 63211) . A broad reservation for, inter alia , 
distribution of arms, munitions and war material has remain ed in place.   
4.4.1.2.5   Educational services  
4.36.   Similar to the GATS, the UK has improved the scope of its commitments only for privately 
funded education services. A reservation for future measures has been listed for publicly funded 
education services and for the supply of privately funded other educat ion services, i.e. other than 
those classified as being primary, secondary, higher and adult education services.  
4.37.   The broad public utilities carve -out may also apply to education services.  
4.4.1.2.6   Environmental services  
4.38.   The UK has indicated no existing or future me asures for the sector. A broad reservation for 
future measures has been listed for services relating to the collection, purification and distribution 
of water to household, industrial, commercial or other users, including the supply of drinking 
water, and water management.  
4.39.   The broad public utilities carve -out may also apply to environmental services.  
4.4.1.2.7   Financial services73 
4.40.   Building upon its GATS commitments, the UK has listed c ertain reservations for future 
measures for insurance and insurance -related  services  and banking and other financial services . 
The UK has also reserved the right to adopt or maintain any measure requiring a financial 
institution, other than a branch, when establishing in the U K, to adopt a specific legal form on a 
non-discriminatory basis. Under t he Headnotes to Annexes I and II (para. 8) the UK can apply 
measures to branches established in its territory  by companies incorporated in Japan  for prudential 
reasons (under the prudential carve -out in Article 8.65) . 
4.4.1.2.8   Health related and social services  
4.41.   Unlike its GATS commitments, t he UK has reserve d the right to adopt or maintain any 
measure with regard to the supply of all health and social services which receive public funding or 
State support in any form , as well to  require establishment or physical presence of suppliers 
providing health and social services, including pension insurance.  
 
72 Regulatory provisions related to postal and courier, and telecommunication services are further 
described in Sections 4.6.2 and 4.6.3, respectively, of this factual presentation.  
73 Regulatory provisions related to financial services are described in S ection 4.6.1 of this factual 
presentation.  WT/REG441/1  
 
- 43 - 
 
  4.42.   In comparison to its GATS commitments, the UK has broadened the coverage of its 
commitments for health services  by undertaking  new c ommitments  for cross-border trade in 
privately funded ambulance and residential health facilities services other than hospital services 
(CPC 93192, 93193).  As under the GATS, the UK  has maintain ed a broad reservation for the 
supply of privately funded soci al services other than services relating to convalescent and rest 
houses , and old people's homes.  
4.43.   The broad public utilities carve -out may also apply to health  services.  
4.4.1.2.9   Tourism and travel related services  
4.44.   The UK has improved its GATS commitments  for tourism and travel -related services (in 
particular by fully liberali zing hotels and restaurants  services ), as no existing or future measures 
have been listed  for this sector.  
4.4.1.2.10   Recreational, cultural and sporting services  
4.45.   The sector is partially covered with limitations under the GATS; these limitations have been  
maintained in the Agreement,  i.e. a broad reservation for the supply of library, archive, museum, 
and other cultural services  (CPC 963) . In addition, the UK has reserve d the rig ht to adopt or 
maintain any measure with respect to the cross -border supply (mode 1 and 2) of entertainment 
services, including theatre, live bands, circus and discotheque services (CPC 9619, 964 other than 
96492). A broad reservation has also been made fo r gambling  and betting services (CPC 96492) .  
4.4.1.2.11   Transport  services74 
4.46.   In comparison to its GATS commitments, the UK has improved  the scope of its 
commitments for  air (with exceptions) , rail75 and road transport services  and has undertaken new 
commitments  for maritime76 and internal waterways transport services77 and pipeline transport  
with specific reservations listed in Annexes 8 -B-I and 8 -B-II to the Agreement . As under the GATS, 
the UK maintains a full reservation for s pace transport . 
4.47.   Unlike  its GATS commitments, the UK has introduced establishment requirement s for road 
freight transportation services (part of CPC 712)78 and for services auxiliary to all modes of supply 
(CPC 742, 748, 749) ; as well as  residency requirement s for customs cleara nce services (part of 
CPC 748).  
4.48.   The broad public utilities carve -out may also apply to transport  services.  
4.4.1.2.12   Other services not included  elsewhere  
4.49.   The UK has reserved the right to adopt or maintain any measure with regards to new 
services other than those classified in the UN CPC 1991 . 
 
74 Regulatory provisions related to maritime transport services are described in Section 4.6.4 of this 
factual presentation. The coverage of air transport services is outlined in Section 4.1.  
75 In Annex II (Reserv ation 13), the UK has reserved the right to apply or maintain any future measure 
with respect to railway passenger and freight transportation (CPC 711).  
76 Measures affecting cabotage in maritime transport services are excluded from the scope of Section B 
of Chapter 8, pursuant to subparagraph 2(a) of Article 8.6 and Section C of Chapter 8, pursuant to 
subparagraph 2(a) of Article 8.14.  
77 In Annex II (Reservation 13), the UK has listed inland waterways passenger and freight 
transportation (CPC 722); and serv ices auxiliary to inland waterways transportation (including cabotage 
transport on inland waterways (CPC 722)) as sectors reserved for the application of any future measures.  
78 Under the UK's GATS commitments, the supply of passenger (CPC 71213, 7122) and freight 
transportation services is unbound for Mode 1, with no limitations on market access and/or national treatment 
being scheduled for Mode 2 (S/C/W/380 as of December 3, 2018).  WT/REG441/1  
 
- 44 - 
 
  4.4.2    Japan   
4.4.2.1   MFN and horizontal commitments  
4.50.   In terms of horizontal reservations u nder the GATS , Japan has a national trea tment 
reservation for research and development  subsidies (Mode 3) ; other horizontal exemptions 
concern Mode 4.  In comparison, u nder the Agreement Japan  has listed  three future horizontal 
reservations  reserv ing (i) the right to prohibit or impose limitation s when transferring or disposing 
of equity interests in, or the assets of a state enterprise or a governmental entity ; (ii) the right to 
adopt or maintain any measure relating to investments in or the supply of telegraph services, 
betting and gambling serv ices, manufacture of tobacco products, manufacture of Bank of Japan 
notes,  and minting and sale of coinage and postal services ; (iii) the right to adopt or maintain any 
measures relating to all unrecognised79 or technically unfeasible services . 
4.51.   Japan has no MFN exemptions under the GATS but under the Agreement it has 10 MFN 
reservations : unrecognised or technically unfeasible services ; the supply of services in the energy 
industry and in fisheries ; the acquisition or lease of land properties (inc luding agricultural  land 
properties) in Japan;  public law enforcement and correctional services and social services ; bilateral 
and multilateral agreements involving aviation relating to the services covered  by the Agreement ; 
water transport ; freight forwar ding business (excluding using air transportation) .  
4.52.   In addition, Japan reserves the right to adopt or maintain any measure that accords less 
favourable  treatment to the UK to any exten t than it accords to a third countr y under any bilateral 
or multilatera l agreement in force or signed prior to the Agreement's entry into force  (pre-existing 
agreement80), except for the TPP Agreement .81 With respect to the treatment that is accorded by 
Japan to a CPTPP member pursuant to the CPTPP Agreement, no less favourable treatment shall 
be accorded by Japan to the UK in accordance with MFN obligations under the UK -Japan CEPA. 
However, Japan has clarified that any preferential treatment accorded to a third country under any 
pre-existing agreem ent, which may be extended to those of a CPTPP member in accordance with 
the MFN obligations in the CPTPP Agreement, is not automatically extended to the UK.  Japan has 
also reserved the right to adopt or maintain any measure that accord s differential treat ment to 
countries under any agreement, other than pre -existing agreement s or the CPTPP Agreement, 
involving fisheries or maritime matters including salvage.  
4.4.2.2   Sector specific commitments  
4.53.   The following section identifies some of the main differences, by secto r, between Japan's 
GATS schedule ("positive list") and its sector -specific commitments under the Agreement 
("negative list"). In comparison to its GATS schedule, u nder the Agreement Japan has made 
commitments in all the sectors identified in the WTO Servic es Sectoral Classification (W/120) , 
except for audio -visual services which are included in Japan's  GATS schedule but excluded under 
the Agreement.  
4.54.   Under Annex I to Annex 8 -B on existing measures, Japan, lists 54 reservations. Under the 
Agreement, in compar ison to the EU -Japan EPA, market access  reservation for distribution services 
has not been scheduled82, instead there is a national treatment reservation for manufacturing and 
 
79 According to the Agreement , any services not classified positively and ex plicitly in Japan's Standard 
Industrial Classification (JSIC) or CP C, at the date of entry into force of the Agreement was considered as an 
unrecognised service by the Government of Japan at that time.  
80 For greater certainty the reservation does not inclu de subsequent reviews, amendments or 
liberali zation under the framework of such pre -existing agreements, to the extent that any treatment to 
services, service suppliers, enterprises or entrepreneurs of a third country under the pre -existing agreement is 
newly accorded as a result of those subsequent reviews, amendments or liberali zation. (Reservation No. 15 by 
Japan, Annex 8 -B-II). 
81 Trans -Pacific Partnership Agreement, done at Auckland on 4 February 2016 or the Comprehensive 
and Progressive Agreement for Trans -Pacific Partnership, done at Santiago on 8 March 2018  (Reservation No. 
15 by Japan, Annex 8 -B-II). 
82 Reservation No. 6 by Jap an "Sector: Distribution Services, Sub -Sector: Wholesale Trade Services 
Supplied at Public Wholesale Market" of Annex 8 -B-I to the EU-Japan EPA.  WT/REG441/1  
 
- 45 - 
 
  information and communications .83 One broad reservation at the central governmen t level 
concerns application of a prior notification and screening procedure to foreign investors for 
investments in agriculture, forestry and fisheries and related services84, in order to determine if 
the investment is likely to cause a situation in which  there is a significant adverse effect to the 
smooth operation of the Japanese economy.  Japan has also listed an existing prior notification 
requirement and screening restriction on investment in a number of sectors including some which 
go beyond services.85  
4.55.   In Annex II to Annex 8 -B Japan's Schedule sets out 17 future reservations on investment  
liberalization  and cross -border trade in services , among which  investments in space industry; arms 
industry and explosives manufacturing industry; broadcas ting; primary and secondary educational 
services; electricity and gas utility as well as nuclear energy  industry; fisheries; acquisition and 
lease of land properties; public law enforcement and correctional services; security guard services; 
and dairy and beef cattle farming.  In comparison to the EU -Japan EPA, Japan has no reservations 
on future measures for water transport services under the Agreement .86 
4.56.   Table 4. 3 provides a comparison of the Japan 's GATS specific commitments in modes 1 -3 
with those taken under the Agreement. Horizontal limitations and MFN reservations are not taken 
into account in the table which should be read in conjunction with the respective Annexes of Annex 
8-B to the Agreement.  
Table 4.3 Japan: Comparison between the GATS and Agreement specific commitments  
Sector/Sub -sector  GATS  Compared to 
GATS  FTA 
Trade in services  Investment  
Existing 
measures  
(Annex I)  Future 
measures  Existing 
measures  Future 
measures  
(Annex II)  (Annex I)  (Annex II)  
1. BUSINESS SERVICES              
A. Professional services  Partial  Similar  Partial  ... Partial  ... 
B. Computer and related 
services  Full Narrower  ... ... Partial  ... 
C. Research and development  Partial  Improved  ... ... … … 
D. Real estate  Partial  Similar  Partial  Partial  … Partial  
E. Rental/Leasing services 
without operators  Partial  Improved  Partial  ... Partial  ... 
F. Other  Partial  Similar  Partial  Partial  Partial  Partial  
2. COMMUNICATION 
SERVICES        
A. Postal  ... New ... Partial  ... Partial  
B. Courier  ... New ... ... ... ... 
C. Telecommunication  Partial  Improved  ... Partial  Partial  Partial  
D. Audiovisual  Partial  Narrower  Excluded  Excluded  Excluded  Excluded  
E. Other  ... New ... Partial  Partial  Partial  
 
83 Reservation No. 13  by Japan  "Sector: Manufacturing and Information and Communications, Sub -
Sector: Manufactur e of Electronic Parts, Devices, and Electronic Circuits and Information Services" of Annex 8 -
B-I to the UK -Japan CEPA.  
84 The reservation concerns Agriculture, Forestry and Fisheries, and Related Services (except fisheries 
within the territorial sea, intern al waters, exclusive economic zone and continental shelf provided for in 
reservation No. 11 in the Schedule of Japan in Annex II to Annex 8 -B) (Reservation No. 1 by Japan, Annex 8-
B-I). 
85 The sectors are the heat supply industry; telecommunications busines s and internet based services; 
manufacturing industry of electronic parts, devices, and electronic circuits and information services industry; 
drugs, medicines and medical devices manufacturing; leather and leather product manufacturing; security 
guard ser vices sectors; railway, road passenger and water transport; aircraft industry, oil and energy 
industries, and water supply and waterworks industry in Japan.  
86 Reservation No. 18 by Japan "Sector: Transport" of Annex 8 -B-II to the EU -Japan EPA.  WT/REG441/1  
 
- 46 - 
 
  Sector/Sub -sector  GATS  Compared to 
GATS  FTA 
Trade in services  Investment  
Existing 
measures  
(Annex I)  Future 
measures  Existing 
measures  Future 
measures  
(Annex II)  (Annex I)  (Annex II)  
3. CONSTRUCTION AND 
RELATED ENGINEERING 
SERVICES        
A. General construction work 
for buildings  Partial  Similar  Partial  ... ... ... 
B. General construction work 
for civil engineering  Partial  Similar  Partial  ... ... ... 
C. Installation and assembly 
work Partial  Similar  Partial  ... ... ... 
D. Building completion and 
finishing work  Partial  Similar  Partial  ... ... ... 
E. Other  Partial  Similar  Partial  ... Partial  ... 
4. DISTRIBUTION SERVICES        
A. Commission agents' services  Partial  Improved  Partial  ... Partial  ... 
B. Wholesale trade services  Partial  Improved  Partial  ... Partial  ... 
C. Retailing services  Partial  Improved  Partial  ... Partial  ... 
D. Franchising  Partial  Improved  Partial  ... Partial  ... 
E. Other  ... New … … … … 
5. EDUCATIONAL SERVICES        
A. Primary education services  Partial  Similar  … Partial  … Partial  
B. Secondary education 
services  Partial  Similar  … Partial  … Partial  
C. Higher education services  Partial  Similar  Partial  ... Partial  ... 
D. Adult education services  Partial  Improved  ... ... ... ... 
E Other education services  ... New ... ... ... ... 
6. ENVIRONMENTAL 
SERVICES        
A. Sewage services  Partial  Improved  ... ... ... ... 
B. Refuse disposal services  Partial  Improved  ... ... ... ... 
C. Sanitation and similar 
services  Partial  Improved  ... ... ... ... 
D. Other  Partial  Improved  Partial  Partial  ... Partial  
7. FINANCIAL SERVICES        
A. All insurance and insurance -
related services  Partial  Similar  Partial  Partial  ... ... 
B. Banking and other financial 
services  Partial  Similar  ... Partial  Partial  ... 
C. Other  ... New … … … … 
8. HEALTH RELATED AND 
SOCIAL SERVICES        
A. Hospital services  Partial  Improved  ... ... ... ... 
B. Other human health services  ... New ... ... ... ... 
C. Social services  ... New Partial  Partial  Partial  Partial  
D. Other  ... New … … … … 
9. TOURISM AND TRAVEL 
RELATED SERVICES        
A. Hotels and restaurants  Partial  Improved  ... ... ... ... 
B. Travel agencies and tour 
operators  Full Same  ... ... ... ... 
C. Tourist guides  Partial  Improved  ... ... ... ... 
D. Other  ... New … … … … 
10. RECREATIONAL, 
CULTURAL AND SPORTING 
SERVICES        
A. Entertainment services  Partial  Improved  ... ... ... ... WT/REG441/1  
 
- 47 - 
 
  Sector/Sub -sector  GATS  Compared to 
GATS  FTA 
Trade in services  Investment  
Existing 
measures  
(Annex I)  Future 
measures  Existing 
measures  Future 
measures  
(Annex II)  (Annex I)  (Annex II)  
B. News agency services  Full Same  ... ... ... ... 
C. Libraries, archives, 
museums and other cultural 
services  Partial  Improved  ... ... ... ... 
D. Sporting and other 
recreational services  Partial  Improved  ... Partial  ... Partial  
E. Other  ... New … … … … 
11. TRANSPORT SERVICES        
A. Maritime Transport services  Partial  Improved  Partial  ... Partial  … 
B. Internal waterways transport  Partial  Improved  Partial  … Partial  … 
C. Air transport services  Partial  Improved  Partial  … Partial  … 
D. Space transport services  ... Same  … Excluded  … Excluded  
E. Rail transport services  Partial  Improved  … … Partial  … 
F. Road transport services  Partial  Improved  Partial  Partial  Partial  … 
G. Pipeline transport  Partial  Improved  … … … … 
H. Services auxiliary to all 
modes of transport  Partial  Improved  Partial  ... Partial  ... 
I. Other  ... New ... ... … … 
12. OTHER SERVICES NOT 
INCLUDED ELSEWHERE  ... New ... Partial  … Partial  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market a ccess or national treatment.  
… : No specific commitment . No existing or future measures are indicated.  
New: New commitments full or partial, with or without limitations.  
Improved: Overall improved commitments under the Agreement compared to those under the  GATS.  
Narrower: Some additional limitations (as compared to GATS commitments).  
Same:  Identical commitments.  
Similar:  Similar liberalization possibly, in individual cases, with limited improvements and/or limited 
additional reservations. The assessment is based on a broad perspective taking into consideration 
both sectoral coverage and the level of specific commitments.  
Excluded: Sector or subsector excluded from the Agreement ; or broad reservation s for future measures apply . 
Source:  Draft Consolidated GATS Schedule of Specific Commitments of Japan (S/DCS/W/JPN), prepared by 
the Secretariat (in  2003), and  Japan's schedules annexed to the UK -Japan CEPA .  
 
4.4.2.2.1   Business services  
4.57.   In comparison to the GATS, Japan has improved its commitments for  business services  (for 
example, engineering services and research and development  (R&D)  services ), and has made  new 
commi tments  in some sub -sectors in  professional services ( medical and dental services, veterinary 
services, services provided by midwives, nurses and physiotherapists ), rental/leasing services 
without operators (coastline ship leasing and aircraft registration)  and other business services 
(services incidental to mining, manufacturing,  and investigation  services) .  
4.58.   Like its GATS commitments, Japan has retained a market access restriction on investment s 
in and cross -border supply of  legal services (including paten t attorney's office and notarial 
services), accounting and scrivener services, architectural services , employment and credit 
collection services . Unlike its GATS commitments, prior notification requirement  and screening 
procedures have been listed, inter a lia, for computer and related services.   WT/REG441/1  
 
- 48 - 
 
  4.4.2.2.2   Communication services87 
4.59.   Under the GATS, Japan mostly opened its telecommunications services. Like its GATS 
commitments, Japan retain s a market access restriction on investment s in and cross -border supply 
of postal  services88, telegraph  services and broadcasting. Japan has fully liberalized courier 
services .89 
4.60.   Unlike its GATS commitments,  audio -visual services are carved -out of the appli cation of 
Section s B (investment liberalization) and C ( cross-border trade in services) of the Agreement 
(Articles 8.6 and 8.14).  
4.4.2.2.3   Construction services  
4.61.   Similar  to the GATS, Japan has a partial commitment under  the Agreement listing existing 
restrictions on  cross-border trade in services for construction (public and private) , demolition and 
recycling of construction materials.  
4.4.2.2.4   Distribution services  
4.62.   In comparison to  the GATS, Japan has broadened its commitments in this sector , while 
indicating existing measures for liquors and livestock trading business . 
4.4.2.2.5   Education services  
4.63.   Under the Agreement, Japan has  widened  the scope of its commitments for educational 
services , including full liberalization of adult and other educational services.  Japan  has also  noted 
reservations on higher education al services which mirror its GATS requirement to be supplied by 
formal education institutions established by school juridical persons.  Unlike its GATS commitments, 
Japan has reserve d the right to adopt or maintain any measure relating to investment in primary 
and secondary education al services.  
4.4.2.2.6   Environmental services  
4.64.   Under the Agreement, Japan has liberalized environmental services, with the exception of 
the existing reservation for cross-border supply of environmental surveying certification services , 
waste disposal business, n.e.c ., and the prior notification requirement and screening procedures 
for foreign investors who intend to invest in the water supply and waterworks industry i n Japan.90 
4.4.2.2.7   Financial Services91 
4.65.   The Headnotes to the reservations under Annex 8 -B-I and 8 -B-II, clarif y that w ithin the 
context of Article 8.65 (Prudential carve -out), Japan shall not be prevented from taking measures 
such as non-discriminatory limitations on juridical forms of commercial presence, or apply ing non-
discriminatory limitations concerning the admission to the market of new financial services, 
consistent with a regulatory framework aimed at achieving those prudentia l objectives.  Securities 
firms are allowed to deal in securities defined in the relevant laws of Japan, and banks are not 
allowed to d o so unless allowed in accordance with those laws. Services supplied in the territory of 
the UK to the service consumer in  Japan without any active marketing by the service supplier are 
 
87 Regulatory  provisions related to postal and courier, and telecommunication services are further 
described in Sections 4.6.2 and 4.6.3, respectively, of this factual presentation.  
88 For the purposes of this reservation, "postal services" means delivery of other perso ns' 
correspondence (tanin -no-shinsho -no-sotatsu) specified in paragraph 2 of Article 4 of Postal Law (Law No. 165 
of 1947) and correspondence delivery service (shinshobin -no-ekimu) within the meaning of the Law 
Concerning Correspondence Delivery Provided b y Private Operators (Law No. 99 of 2002) (Footnote to 
Reservation No. 2 by Japan, Annex 8 -B-II). 
89 Special correspondence delivery services (tokutei -shinshobin -ekimu), delivery of parcels, packages, 
goods, direct mail and periodicals (Footnote to Reservati on No. 2 by Japan, Annex 8 -B-II). 
90 Japan's r eservations No. 38 (Annex 8 -B-I) and No. 8 (Annex 8 -B-II). 
91 Regulatory provisions related to financial services are described in Section  4.6.1 of this factual 
presentation.   WT/REG441/1  
 
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  considered as services supplied cross-border, i.e. in the territory of a Party to the service 
consumer of the other Party (as provided in Article 8.2 (d)(ii) ). 
4.66.   In comparison to the GATS, Japan has generally improved its commitments in insurance and 
insurance -related services, while maintaining a commercial presence requirement for insurance 
contracts on and any liability arising from goods being transported within Japan, and ships of 
Japanese re gistration which are not used for international maritime transport. Japan has also 
reserve d the right to adopt or maintain any measure with respect to cross -border trade in financial 
services for insurance and insurance -related services, with certain exceptions92, whether supplied 
by a UK financial service supplier established in the territory o f the UK  as a principal, through an 
intermediary or as an intermediary through Modes 1 and 2.  
4.67.    For banking and other financial services, as under the GATS, Japan has maintain ed its 
reservation for th e deposit insurance system , which  does not cover deposits  taken by branches of 
foreign banks.  Japan has also reserve d the right to adopt or maintain any measure with respect to 
cross-border trade in financial services for banking and other financial services  with certain 
exceptions listed in Reservation No. 9 (A nnex 8 -B-II).  
4.4.2.2.8   Health related and social services  
4.68.   In comparison to the GATS, Japan has improved its commitments in hospital services and 
has undertaken  new commitments for other human health services and social services, except for  
labour insurance busines s and vocational guidance centres . Japan has also listed  a future  
reservation  relating to investment or the supply of services in social services established or 
maintained for a public purpose . 
4.4.2.2.9   Tourism and travel related services  
4.69.   Under the Agreement, Japan  has fully liberalized tourism and travel -related  services sector.  
4.4.2.2.10   Recreational, cultural and sporting services  
4.70.   Under the Agreement, Japan has fully liberalized recreational, cultural and sporting services 
sector , with the exception of the future reservation in relation to the recreational fishing guide 
business . A broad future  reservation has also been included relating to betting and gambling 
services .93 
4.4.2.2.11   Transport services94 
4.71.   In comparison to the GATS, Japan has improved its commitments for the su pply of 
international maritime transport services (including passenger and freight transportation) , subject 
to nationality requirement s for the ship . Similar to the GATS, in the Headnotes to Annex 8 -B-I and 
8-B-II, Japan, like the UK, has noted that measur es affecting cabotage in maritime transport are 
not listed in the Schedule as they are excluded from the scope of Section B and C of Chapter 8 
(Articles 8.6 and 8.14, respectively).  Japan has also listed a restriction on the entry of foreign 
flagged ships into its ports that are not open to foreign commerce ; on building and repairing 
vessels; and on conducting freight forwarding business using international shipping . 
4.72.   In comparison to the GATS, Japan has expanded  the scope of its  commitments for air 
transport services by covering  ground handling services. The s pace industry, a s under the GATS, 
has been reserved for any future measures.  
4.73.   Under the Agreement, Japan has also widened the scope of its commitments for rail and 
road trans port services , while  listing existing restrictions on investment s and cross border -supply 
of certain types of road transport (omnibus, taxicab, trucking, freight, passenger transport).  The 
 
92 Reservation No.  10 by Japan, Annex 8 -B-II. 
93 Reservation No. 2 by Japan, Annex 8 -B-II. 
94 Regulatory provisions related to maritime transpor t services are described in Section 4.6.4 of this 
factual presentation. The coverage of air transport services is outlined in Section 4.1.  WT/REG441/1  
 
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  scope of services auxiliary to all modes of supply has also been expanded  with listed  reservation 
for cross -border supply of customs brokerage business.  
4.74.   As an existing restriction , Japan has listed  a prior notification requirement on , inter alia , 
water transport,  aircraft industry,  road passenger and  railway transport.  
4.4.2.2.12   Other services not included elsewhere  
4.75.   Under the Agreement, Japan has listed a broad reservation for investments or cross -border 
supply of unrecognised or technically unfeasibly services.   
4.5  Regulatory provisions  
4.76.   The r egulatory framework for trade in services , investment liberali zation and electronic 
commerce is set out in Section E of Chapter 8 of the Agreement and covers the following: 
domestic regulation (Sub -section 1); provisions of general application (Sub -Section 2); postal and 
courier services (Sub -Section 3); telecommunications services (Sub -Section 4); financial services 
(Sub-Section 5); and international maritime transport services (Sub -Section 6).  
4.77.   In Sub-section 2 ( provisions of general application) of Section E the Parties agree to ensure 
that all measures of general application are administered in a reasonable, objective and impartial 
manner with the exception of the aspects of a measure  listed in Annexes I and II of Annex 8 -B to 
the Agreement (existing and futur e non -conforming measures) (Article  8.33).  
4.78.   Article 8.34  (Review procedures for administrative decisions)  requires each Party to 
maintain judicial, arbitral or administrative tribunals or procedures which provide for a prompt 
review of administrative decis ions that affect cross border trade in services, establishment or 
operation or the supply of a service through the presence of a natural person.  
4.5.1   Domestic regulation  
4.79.   Domestic regulation provisions are set out in Sub -section 1 of Section E ( regulatory 
provisions ) of Chapter 8 of the Agreement. They apply to measures by a Party relating to licensing 
and qualification requirements and procedures, and technical standards (on services) that affect 
(a) cross border trade in services, (b) establishm ent or operation95 or (c) the supply of a service 
through the presence of a natural person in the territory of the other Party, in accordance with 
Article 8.24. The sub -section does not apply to such requirements and procedures and technical 
standards purs uant to existing or future measure s that do not conform to the market access or 
national treatment obligations.  
4.80.   The conditions for licensing and qualification requirements and procedures shall be based on 
the criteria of clarity, objectivity, transparency , advance public availability and accessibility . If a 
Party adopts or maintains a measure relating to licensing requirements and procedures and 
qualification requirements and procedures, it shall ensure, inter alia , that such a measure does not 
discriminate between men and women96 (Article 8.30) . 
4.81.   Licensing and qualification procedures shall be as clear and as simple  as possible, and not 
be a restriction on the supply of a service or pursuit of economic activity. Any  authori zation fee 
should  be re asonable, transparent and shall not in itself restrict the supply of a service or 
economic activity. Applications shall be processed within a reasonable period of time ; the decision  
concerning the application  shall be communicated to the applicant . The com petent authority of a 
Party shall, at the request of the applicant and without undue delay, provide information 
concerning the status of the application (Article 8.31) . 
 
95 As defined in Article 8.2(i) or Article 8.2(p), respectively, of the Agreement.  
96 It is further clarified by the Pa rties that for the purposes of Article 8.30(2), differential treatment that 
is reasonable and objective, and aims to achieve a legitimate purpose, and adoption by a Party of temporary 
special measures aimed at accelerating de facto equality between men and  women, shall not be considered as 
discrimination.  WT/REG441/1  
 
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  4.82.   The Parties agree to encourage their competent authorities, when adopting technical 
standards, to adopt standards developed through an open and transparent process (Article 8.3 2). 
4.5.2   Recognition  
4.83.   The p rovisions on mutual recognition are covered in Article 8. 35 of the Agreement.  Nothing 
in Sub -section 2 ( provisions of general application) shall p revent a Party from requiring that 
natural persons must possess the necessary qualifications or professional experience specified in 
the territory where the service is supplied.  
4.84.   Each Party shall encourage  relevant  professional bodies in its territory to provide joint 
recommendations on mutual recognition to the Committee  on Trade in Services, Investment 
Liberalisation and Electronic Commerce (the Committee)  in the field of professional services  
sector . Any joint recommendation provided  shall be reviewed by the Committee, in order to assess 
the extent to which  the standards and criteria applied by each Party for authori zation, licensing, 
operation and certification  are converging and the potential economic value of a mutual 
recognition agreemen t.  
4.85.   The Committee shall establish the necessary steps for the Parties to negotiate a mutual 
recognition agreemen t (through their competent authorities)  for the authori zation, licensing, 
operation and certification of entrepreneurs and service suppliers, in  particular, in the sector of 
professional services .  
4.5.3   Subsidies  
4.86.   Chapter 12 of the Agreement  on subsidies applies to specific subsidies97 to the extent they 
are related to economic activities98 (Article 12.3).  With regard to subsidies in services, Article 1 2 
only applies to the following sectors: architectural and engineering services, banking services, 
computer services, construction services, energy services, environment services, express delivery 
services, insurance services, telecommunication services an d transport services.  
4.87.   Exceptions  to the Chapter are listed in Article 12.3 and include, inter alia , subsidies granted: 
to enterprises entrusted by the government with the provision of services to the general public for 
public policy objectives; to compensate the damage caused by natural disasters or other 
exceptional occurrences; and to audio -visual se rvices  (Article 12.3).  
4.88.   Nothing in Chapter 12 affects the rights and obligations of either Party under the WTO SCM 
Agreement, Article XVI of the GATT 1994 and Article XV of the GATS (Article 12.4).  
4.89.   Notification requirements applicable to subsidies are stip ulated in Article 12.5  and are 
required  every 2 years, with the first notification no later than 3 years from the date of entry into 
force of the Agreement. If a Party makes publicly available on an official website the information 
specified in Article 12. 5.1, the notification pursuant to Article 12.5.1 shall be deemed to have been 
made. If a Party notifies subsidies pursuant to Article 25.2 of the SCM Agreement the Party shall 
be considered to have met the requirement of Article 12.5.1 with respect to such  subsidies (Article 
12.5.2).  
4.90.   Consultations may be held between the Parties if one Party considers that a subsidy of the 
other Party has or could have a significant negative effect on its trade or investment interests 
under the Chapter (Article 12.6). The Parties shall enter into consultations with a view to resolving 
the matter, provided that the request includes an explanation of how the subsidy has or could 
have a significant negative effect on trade or investment between the Parties. If after consultati ons 
the requesting Party still considers that the subsidy has or could have a negative effect on its trade 
or investment interests, under Chapter  12, the requested Party shall accord sympathetic 
consideration to the concerns of the requesting Party.  
 
97 Further to Article 12.2 of the Agreement, specific subsidy means a subsidy which is determined 
mutatis mutandis  to be specific in accordance with Article 2 of the WTO SCM Agreement.  
98 For greater certain ty, education provided under the domestic educational system of each Party shall 
be considered a non -economic activity.  WT/REG441/1  
 
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  4.91.   Article 12.7 prohibits certain kinds of subsidies  of a Party that have or could have a 
significant negative effect on trade or investment between Parties.  Article XX of the GATT 1994 
and Article XIV of the GATS are incorporated into and made part of the Agreeme nt, mutatis 
mutandis  (Article 12.9) .  
4.92.   Paragraph 5 of Article 12.6 ( consultations) is not subject to dispute settlement under 
Chapter 22 of the Agreement (Article 12.10).  
4.5.4   Safeguards  
4.93.   Article 9.4 of the Agreement sets out temporary safeguard measures and restrictive 
measures with regard to capital movements, payments or transfers that the Parties may adopt or 
maintain. In the case of trade in services, each Party may adopt restrictive m easures in order to 
safeguard its external financial position or balance of payments. Those measures shall be in 
accordance with the conditions set out in Article XII of GATS.  
4.5.5   Other  
4.5.5.1   Investment  
4.94.   Section B of Chapter 8 of the Agreement covers investment libe ralization and applies to the 
establishment or operation of economic activities, including in non -services sectors, which goes 
beyond the GATS definition of mode 3 (Article 8.6).  
4.95.   Articles 8.7 -13 contain provisions on market access; national treatment; MFN;  senior 
management and boards of directors; prohibition of performance requirements; non -conforming 
measures and exceptions; and denial of benefits .99 
4.96.   Article 8.5 ( review) envisages that  if, after the date of entry into force of th e Agreement, a 
Party signs an international agreement with an investment chapter that contains provisions for 
investment protection or provides for investor -to-state dispute settlement procedures, the other 
Party, after the date of entry into force of that agreement, may request that the Parties review 
Section s A and B  of Chapter 8 .100 As reported by the Parties, no review of Section s A or B of 
Chapter 8 has not been carried out so far.  
4.6  Sector specific provisions on trade in services  
4.6.1    Financial Services  
4.97.   Sub-section 5 of Section E of Chapter 8 and Annex 8 -A to the Agreement set out rules 
governing financial services , which are built upon the respective provisions under the EU -Japan 
EPA and further enhance, inter alia , provisions on new financial s ervices, financial information and 
regulatory cooperation . Services supplied or activities performed in the exercise of governmental 
authority are excluded from the application of Sub -section 5 of Section E of Chapter 8 , except for 
activities101 that a Part y allows to be conducted by its financial service suppliers in competition 
with a public entity or a financial service supplier  (Article 8.58). Definitions used in Sub-section 5 
of Chapter 8 are set out in Article 8.59 and  build upon  the definitions in paragraph 5 of the WTO 
Annex on Financial Services.  
4.98.   Under Article 8.60 each Party permits financial services suppliers of the other Party to offer 
any new financial service  that the Party would permit its own financial service supplier s, in like 
 
99 For further details, refer to respective sub -sections of Section 4 of this factual presentation.  
100 The footnote to  paragraph 3 of  Article 8.5 clarifies that for the UK, paragraph 3 of Article 8.5 does 
not cover subsequent reviews, amendments or liberali zation under the framework of any international 
agreement in force for the UK on, or signed by the UK prior to, the date of entry into force of this Agreement, 
or any international agreement between the UK and a third country concluded with the aim of transitioning an 
existing international agreement to which the EU was a party while the UK was a Member State of the EU.  
101 Paragraph 2 of Article 8.58 states that such activities include  (i) the activities forming part of a 
statutory system of social security or public retirement plans; and (ii) other activities conducted by a public 
entity for the account or with the guarantee or using the f inancial resources of a Party or its public entities.  WT/REG441/1  
 
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  situations, to supply without adopting or modifying a law and subject to each Party's reservations 
as set out in Annexes I and II to Annex 8 -B. A Party may determine the juridical form through 
which the new financial service may be supplied and may require authori zation for the supply of 
the service. If required, a decision to issue the authori zation shall be made within a reasonable 
period of time and may be refused only for prudential reasons.  
4.99.   The Parties shall ensure that they grant to each ot her's established financial service 
suppliers access to payment s and clearing systems, as well as to official funding and refinancing 
facilities available in the normal course of business on a national treatment basis (Article 8.61). If 
a Party requires fi nancial service providers to have membership of or participate in the operations 
of self -regulatory organi zations, the Parties will ensure that those organi zations accord national 
treatment to the financial service providers of the other Party  (Article 8.6 2).  
4.100.   With regards to financial information, the Parties agree to not restrict a financial service 
supplier of the other Party from transferring information, including transfers of data into and out of 
the former Party's territory by electronic or other mea ns, where such transfers are relevant for the 
conduct of the ordinary business of the financial service supplier  (Article 8.63) . Article 8.63 also 
cover s issues related  to using or locating  financial service computing facilities ; access to 
information and the right of a Party to protect personal data, personal privacy and the 
confidentiality of individual records and accounts.  
4.101.   Under Article 8.64 the Parties commit to promote regulatory transparency in financial 
services;  make publicly available the informat ion necessary for financial service suppliers to 
comply with the requirements and procedures for obtaining, maintaining, amending and renewing 
an authori zation for the supply of a financial service; timely notification of any requirements of 
additional information for processing of applications ; inform the applicant of the reasons for 
rejection of the application; and ensure  publication or dissemination of rules of general application  
adopted or maintained by self -regulatory organi zations .  
4.102.   Article 8.65 permits the Parties to take measures for prudential reasons. Article 8.66 
disciplines apply if a Party allows it s postal insurance entity to underwrite and supply direct 
insurance services to the general public. The services covered do not inclu de the supply of 
insurance services relating to the collection, transport and delivery of letters or packages by a 
Party's postal insurance entity.  
4.103.    Regulatory cooperation in financial services is established in Article 8.67 in accordance 
with Annex 8 -A (Regulatory cooperation in financial services) . Further to the provisions agreed by 
the Parties, regulatory cooperation covers all areas of financial services, including emerging issues 
of mutual interest , and is  without prejudice to the distribution and exe rcise of competences of the 
regulatory or supervisory authorities of the Parties ; and is based on due consideration of 
differences in market structures and business models that may exist between the Parties. 
Principles of regulatory cooperation and provisi ons on emerging issues are also covered in  Annex 
8-A to the Agreement.  
4.104.   A Joint United Kingdom -Japan financial regulatory forum is established by the Parties on 
the date of entry into force of the Agreement with the aim to take stock of progress and underta ke 
forward planning of regulatory cooperation, as well to develop and apply a framework for 
regulatory cooperation between the Parties. As reported by the Parties, o n June 9, 2022, the 
inaugural United Kingdom -Japan financial regulatory forum was held in L ondon. At the conclusion 
of the event, both Parties issued  a Joint Statement on the nature and output of discussions.  
4.105.   The provisions of Annex 8 -A are not subject to dispute settlement under Chapter 22 of the 
Agreement  (para. 26 of Annex 8 -A). A process of technical mediation with respect to the principles 
of regulatory cooperation is envisaged in paragraphs 27 -30 of Annex 8 -A. 
4.6.2    Postal and courier services  
4.106.   Provisions on postal and courier services follow those in the EU -Japan EPA , except for 
technical modifications,  and are stipulated  in Sub -section 3 of Section E ( regulatory framework) of 
Chapter 8 and  apply to measures by a Party affecting trade in postal and courier services  
(Article  8.36) .  WT/REG441/1  
 
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  4.107.   Each arty has the right to  define the kind of universal service obligation it wishes to 
maintain .102 That obligation is not per se  regarded as anti -competitive, provided that it is 
administered in a transparent, non -discriminatory and competitively neutral manner and is not 
more bur densome than necessary for the kind of universal service defined by the Party, with 
regard to all suppliers subject to the obligation. Each Party shall ensure that a supplier of postal 
and courier services in its territory subject to a universal service ob ligation under its laws and 
regulations does not engage in certain kinds of anti -competitive activity, like cross -subsidi zation or 
unjustifiably differentiating among customers , as described in Article 8.37  on universal service 
obligations .  
4.108.   The Parties ag ree to enforce border procedures for international postal and courier services 
in accordance with related international agreements and the laws and regulations of each Party . It 
is without prejudice for each Party to not unduly accord less favourable treatment with respect to 
border procedures to international courier services103 than it accords to international postal 
services  (Article 8.38) .  
4.109.   Under Article 8.39 each Party may require a licence for the supply of a pos tal or courier 
service and if it does so, it shall make publicly available the licensing criteria and the period of time 
normally required to reach a decision concerning an application for a licence and the terms and 
conditions of the licence. In the event  of a decision to reject a licence application the competent 
authority shall , upon request , inform the applicant of the reasons for the rejection. An appeal 
process shall be available to applicants whose licence application has been rejected.  
4.110.   Independence  of the regulatory body for postal and courier services is ensured by the 
provisions of Article 8.40.   
4.6.3   Telecommunications  
4.111.   The provisions on telecommunication services under  Sub-section 4 of Section E ( regulatory 
framework) of Chapter 8 have not significantly changed from the EU -Japan EPA and apply to 
measures by a Party affecting trade in telecommunications services, which consist of the 
conveyance of signals including, inter alia , transmission of video and audio signals (irrespective of 
the types of protocols and technologies used) through public telecommunications transport 
networks. Measures affecting broadcasting services and services providing, or exercising editorial 
control over, content transmitte d using telecommunications transport networks and services are 
excluded fr om the application of Sub -section 2 (Article 8.41).  
4.112.   While recogni zing the value of competitive markets to deliver a wide choice in the supply 
of telecommunications services and to en hance consumer welfare, the Parties also recognise in 
Article 8.43 that regulatory needs and approaches differ between  market s, and that a Party may 
determine how to implement its obligations under Sub -Section 2 , including by engag ing in direct 
regulation , either in anticipation of an issue that it expects may arise , or to resolve an issue that 
has already risen in the market ; or, by relying on the role of market forces, particularly with 
respect to market segments that are competitive  or that have low barriers to entr y. However,  a 
Party that refrains from regulation remains subject to obligations under the Sub-section  2. 
4.113.    Article 8.44 states  that each Party shall ensure that any service supplier of the other Party 
is accorded access to  and use of public telecommunications transport networks and services on 
terms and conditions which are reasonable, non -discriminatory, and no less favourable than those 
which the supplier of those public telecommunications transport networks and services provides for 
its own like services under like circumstances.  Provisions on number portability, resale, enabling 
use of network facilities and interconnection, and obligations relating to major suppliers are 
stipulated  in Articles 8.45 -8.48.  
 
102 Article 8.36 of the Agreement clarifies that universal service means the permanent supply of a postal 
service of specified quality at all points in the territory of a Party at affordable prices for all users.  
103 It is clarified that for the purposes of Art icle 8.38: (a) international postal services means services 
that designated operators referred to in subparagraph 1.12 of Article 1 of the Universal Postal Convention 
supply in accordance with the Acts of the Universal Postal Union; and (b) international c ourier services means 
services consisting of the collection, sorting, transport and delivery of documents, printed matter, parcels and 
goods for foreign destinations, not regulated by the Acts of the Universal Postal Union.  WT/REG441/1  
 
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  4.114.   The obligation s in relation to the structure and functional independence of the Parties 
regulatory authorities are set out in Article 8.49. The provisions on  universal service obligation s, 
authorisation to provide telecommunications networks and services, allocation of and use of scarce 
resources, transparency, resolution of telecommunications disputes, relation to international 
organisations, confidentiality of information104 and international mobile roaming  are covered in 
Articles 8.50 -8.57.  
4.6.4   Maritime Transport105  
4.115.   Sub-section 6 of Section E ( regulatory framework) of Chapter 8 sets out the regulatory 
framework for the provision of international maritime transport services pursuant to Sections B to 
D of Chapter  8 (investment liberalisation; cross-border trade in services; entry and temporary stay 
of natural persons, respectively) , and applies to measures by a Party affecting trade in 
international maritime transport services  (Article 8.68).  
4.116.   Without prejudice to the non-conforming measures refe rred to in Articles 8.12 (in 
investment) and 8.18 (in cross -border trade in services), each Party shall respect the obligations  
set out in Article 8.69 , which include, inter alia , the principle of unrestricted access to international 
maritime markets and t rades, granting access to ports and use of maritime auxiliary services by 
the ships flying the flag of the other Party, etc .  
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  Rules governing general transparency disciplines are contained in Chapter 17. Art icles 17.1 
through 17.8 list requirements for transparent regulatory environment; publication; enquiries; 
administration of measures of general application; review and appeal; cooperation on the 
promotion of increased transparency; and relation to other Ch apters.  
5.2.  In addition,  further to Article 17.9,  the Parties affirm their resolve to eliminate bribery and 
corruption in international trade and investment by adhering to the Convention on Combating 
Bribery of Foreign Public Officials in International Busines s Transactions, done at Paris on 17 
December 1997, and the United Nations Convention against Corruption, adopted at New York on 
31 October 2003.  
5.2  Current payments and capital movements  
5.3.  Chapter 9 of the Agreement concerns capital movements, payments and tra nsfers and 
temporary safeguard measures. Under Article 9.1, any payments and transfers are to be made in 
freely convertible currency for transactions on the current account of the balance of payments 
which fall within the scope of th e Agreement. The Partie s also agree to allow the free movement of 
capital for the purpose of liberalisation of investments and other transactions as provided for in 
Chapter 8 of the Agreement (Article 9.2.1).  
5.4.  The Parties may adopt or maintain restrictive measures with regard to capital movements, 
payments or transfers  (a) in the event of serious balance of payments or external financial 
difficulties, or threat thereof, or (b) if, in exceptional circumstances, capital movements, payments 
or transfers cause or threaten to cause ser ious macroeconomic difficulties related to monetary and 
exchange rate policies  (Article 9.4) . Any such measures  shall be consistent with the Articles of 
Agreement of the International Monetary Fund ; not exceed those necessary to deal with the 
situations de scribed in (a) and (b);  be temporary and be phased out progressively as the situation 
 
104 Article 8.56 clarifies that th e confidentiality of information shall be insured in accordance with 
domestic laws and regulations.  
105 Article 8.68 defines international maritime transport services as the transport of passengers or cargo 
by sea -going vessels between a port of a Party and a port of the other Party or a third country, and includes 
the direct contracting with suppliers of other transport services, with a view to covering door -to-door or 
multimodal transport operations under a single transport document, but does not include th e right to supply 
such other transport services.  WT/REG441/1  
 
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  improves ; avoid unnecessary damage to the commercial, economic and financial interests of the 
other Party; and  be non -discriminatory compared to third countries in like s ituations.  
5.5.  Article 9.4  further  provides that in the case of trade in goods, each Party may adopt 
restrictive measures pursuant to Article 2.20 for balance -of-payments purposes. In the case of 
trade in services, each Party may adopt restrictive measures in order to safeguard its externa l 
financial position or balance -of-payments, in accordance with Article XII of GATS.  
5.6.  Any restrictions adopted pursuant to Article 9.4 shall be the subject of prompt consultations 
in the Committee on Trade in Services, Investment Liberalization and Electro nic Commerce 
established pursuant to Article 22.3, unless consultations are held in other fora.  
5.3  Exceptions  
5.3.1   General exceptions  
5.7.  For the purposes of Chapter 2 ( trade in goods ), Article  XX of the GATT 1994 is incorporated 
into and made part of the Agreement,  mutatis mutandis  (Article 2.21) . If a Party intends to take 
any measures in accordance with subparagraphs (i) and (j) of Article XX of the GATT 1994, the 
Party shall (a) provide the other Party with all relevant information; and (b) upon request, provide 
the other Party with a reasonable opportunity for consultation with respect to any matter related 
to such measure, with a view to seeking a mutually acceptable solution.   
5.8.  For the purposes of Section B ( investment liberalization) and Article 8.86 ( commercia l 
information and communication technology products that use cryptography)  of Chapter 8  (trade in 
services, investment liberalization and electronic commerce), Article XX of the GATT 1994 is 
incorporated and made part of the Agreement, mutatis mutandis  (Article 8.3). Article 8.3.2 also 
sets out general exceptions for trade in services or establishment that are similar to the general 
exceptions of Article XIV of the GATS. Measures inconsistent with national treatment on 
investment and services may be permitt ed provided that the difference in treatment is aimed at 
ensuring the equitable or effective imposition or collection of direct taxes in respect of economic 
activities, entrepreneurs, services or service suppliers of the other Party  (Article 8.3.2(d) ).  
5.9.  For the purposes of Chapter s 12 (subsidies)  and Chapter 13 (State -owned enterprises, 
enterprises granted special rights or privileges and designated monopolies) , Article XX of the GATT 
1994 and Article XIV of the GATS are incorporated into and made part of  the Agreement, mutatis 
mutandis  (Article 12.9) . 
5.3.2   Security exceptions  
5.10.   Security exceptions are covered in Article 1.5 of the Agreement that  mirror the provisions of 
Article XXI of the GATT 1994, and applies, inter alia , to the supply of services . It is also clarified, 
that for the purposes of Chapter 10 (Government procurement), Article  III of the GPA applies; and 
for the purposes of Chapter 14 ( intellectual property) , Article 14. 62 of the Agreement 
(incorporating Article 7 3 of the TRIPS Agreement) applies , mutatis mutandis . 
5.4  Accession and withdrawal  
5.11.   The Agreement does not contain any accession provisions. Termination is governed by 
Article  24.4 and takes place six months after the date of receipt by the other Party of the 
termination notification.  
5.5  Institutional framework  
5.12.   Article 23.1 establishes a Joint Committee comprising representatives of both Parties, which 
shall meet within one year of the date of entry into force of the Agreement. The meetings of the 
Joint Committee shall take place in the UK or Japan alternately, unless otherwise agreed. As 
reported by the Parties, the first meeting of the Joint Committee of the UK -Japan CEPA was held in 
Tokyo on 24 February 2022. Article 2 3.1.4 sets out the mandated functions of the Joint Committee  
which are to  review and monitor the implementation and operation of the Agreement and if 
necessary, make recommendations to the Parties, supervise the work of all specialised WT/REG441/1  
 
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  committees, working g roups and other bodies under the Agreement, seek to resolve problems that 
may arise under the Agreement or resolve disputes regarding the interpretation or application of 
the Agreement and consider any other matter of interest under the Agreement. The  Joint 
Committee is also required to adopt its own rules of procedure as well as the rules of procedure of 
a panel, the code of conduct for arbitrators and the mediation procedure at its first meeting.  As 
reported by the Parties, t he rules of procedure were adopted at the first meeting of the Joint 
Committee on 24 February 2022. The Parties have not yet adopted  the rules of procedure of a 
panel, the code of conduct for arbitrators and the mediation procedure.  
5.13.   Article 2 3.1.5 permits the Committee to establish or dissolve specialised committees, 
working groups or other bodies and allocate responsibilities to them, provide information on issues 
under the Agreement to the public, recommend to the Parties any amendments to the Agreement 
or adopt decisions to amend the  Agreement under Article 2 4.2.4, adopt interpretations of the 
Agreement and any other action in the exercise of its functions as may be agreed by the Parties. 
As reported by the Parties,  all specialised committees stipulated in Article 23.1 were establishe d. 
5.14.   Article 2 3.3.1 establishes several specialised committees under the auspices of the 
Committee.106 The existence of a specialised committee does not prevent a Party from bringing 
any matter directly to the Joint Committee (Article 2 3.3.8). As reported by the Parties, t he first 
meeting s of the following Committees took place online:  the Committee on Trade and Sustainable 
Development took place on 13 October 2021 ; the Committee on Trade in Services, Investment 
Liberalisation and Electronic Commerce on 1 November 2021 ; the Committee on Government 
Procurement on 25 November 2021 ; the Committee on Trade in Goods on 6 December 2021 ;f the 
Committee on Regulatory Coopera tion on 2 February 2022 ; the Committee on Sanitary and 
Phytosanitary Measures on 27 April 2022 ; and  the UK -Japan Committee on Technical Barriers to 
Trade (TBT) on 29 June 2022.  
5.15.   Under the auspices of the Joint Committee two working groups are also establish ed (Article 
23.4.2): on Cooperation in the Field of Agriculture, the responsibilities and functions of which are 
defined in Article 19.5; and on Trade and Women's Economic Empowerment, the responsibilities of 
which are defined in Article 21.3.  
5.16.   Working Gro ups on Wine and on Motor Vehicles and Parts are established  in Article 23.4.1 
under the auspices of the Committee on Trade in Goods . The functions of the Groups are set out in 
Article 2.3 4 and Article 20 of Annex 2 -C. As reported by the Parties, t he first meeting of the 
Working Group on Trade and Women 's Economic Empowerment took place online on 21 October 
2021. The second meeting is scheduled in January 2023. The first meeting of the Working Group 
on Wine was held on 1 January 202 1.The first meeting of the  Working Group on Motor Vehicles 
and Parts was held on 24 June 2022 in Geneva and via videoconference.  
5.6  Dispute settlement  
5.17.   The rules governing dispute settlement are set out in Chapter 22 to the Agreement 
containing provisions on the objective, scope and de finitions (Section A); consultations and 
mediation (Section B); panel procedures (Section C); and general provisions (Section D). The rules 
in Chapter 22 closely follow the structure of the WTO dispute settlement mechanism at the panel 
stage.  
5.18.   The Agreement  contains a choice of forum provision  (Article 22.27) . Where  a dispute arises 
with regard to the alleged inconsistency of a particular measure with an obligation under the 
Agreement and a substantially equivalent obligation under any other international ag reement, 
including the WTO Agreement, the complaining Party may select the forum in which to settle the 
dispute. Once a choice has been made, the complaining Party shall not initiate dispute settlement 
proceedings in another forum  in respect of the measure  under challenge  unless the forum selected 
fails to make findings on the issues in dispute for jurisdictional or procedural reasons. Under  the 
provisions of Article 2 2.27.4, nothing in the Agreement precludes a Party from implementing the 
 
106 These are: the Committees on Trade in Goods; on Rules of Origin and Customs -Related matters; on 
Sanitary and Phytosanitary Measures; on Technical Barriers to Trade; on Trade in Services, Investment 
Liberal ization and Electronic Commerce; on Government Procurement; on Intellectual Property; on Trade and 
Sustainable Development; and on Regulatory Cooperation.  WT/REG441/1  
 
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  suspension of concessions or other obligations authorized by the DSB. A Party shall not, however, 
invoke the WTO Agreement to preclude the other Party from suspending concessions or other 
obligations under the covered provisions.  
5.19.   Under  Section B of Chapter 22 prior to a request for consultations or mediation, either Party 
may request from the other Party any relevant information with respect to a measure at issue 
(Article  22.4). Consultation s are governed by Article 2 2.5, while  mediation, at any time, is 
permitted under Article 2 2.6. A mediation procedure is to be adopted at the first meeting of the 
Joint Committee established pursuant to Article 2 3.1.4(f) . Mediation may continue in parallel to a 
panel procedure. As reported by the Parties, the y are currently working to ensure the adoption of 
mediation procedure, Rules of Procedure of a Panel and the Code of Conduct for Arbitrators at the 
earliest opportunity.  
5.20.   Under Section C of Chapter 22 the Party that sought  consultations  pursuant to Article 22. 54, 
may, if consultations fail to resolve the dispute,  request the establishment of a panel 
(Article  22.7) . The Panel shall issue an interim report no later than 120 days after the date of its 
establishment , although a delay of up to 30 days is permitted  when this deadline cannot be met 
(Article 22.18.1). I n cases of urgency,  it shall make every effort to issue the report no later than  
60 days after the date of its establishment and in no circum stances later than 75 days  after the 
date of its establishment (Article 22. 18.3). The final report shall be issued  to the Parties no later 
than 30 days after the  date of  issuance of the interim report  (although a delay of up to 30 days is 
permitted when th is deadline cannot be met) , with the panel 's effort to issue no later than 15 days 
in urgent cases . The Parties shall make the final report public ly available no later than  10 days 
after the date of its issuance  unless they decide, in order to protect  confidential  information , to 
publish only in parts or not to publish the report at all  (Article 22. 19). The complaining Party may 
request for the original Panel to conduct a compliance review  if there is disagreement between the 
Parties on the existence of measures taken to comply with the final report or their consistency with 
the covered provisions  (Article 22.21); temporary remedies in case of non -compliance are 
provided for in Article 22.2 2 including the suspension of concessions or other obligations until the 
inconsistency of the measure has been removed or until a mutually satisfactory compensation or 
alternative arrangement has been agreed by the Parties . Further to Article 22.30, the pa nel 
proceedings shall be conducted pursuant to the Rules of Procedure of a Panel and the Code of 
Conduct for Arbitrators to be adopted by the Joint Committee at its first meeting pursuant to 
Article 2 3.1.4(f).  
5.21.   Annex 2 -C on Motor Vehicles and Parts provide s in Article 13 for a consultation procedure in 
relation to amendment or introduction of new domestic technical regulation  or conformity 
assessment . In the event that the Parties fail to agree a solution the complaining Party may have 
recourse to the dispu te settlement procedures under Chapter  22 of the Agreement , if it deems that 
the technical regulation or conformity assessment could adversely affect trade between the 
Parties . Under Article 19 of Annex 2 -C, an accelerated timeline for Chapter 22 dispute s ettlement 
procedure is created, shortening  period for consultations, for the issuance of the interim report of 
the panel and for the issuance of the final report , and  deeming the paragraph of Article 19(e) 
which states  the reasonable period of time for com pliance  to be added  in Chapter 22 and providing 
that disputes in relation to the interpretation or application of the Annex are a matter of urgency.  
5.22.   Annex 8 -A (regulatory cooperation in financial services) provides in Articles 2 6-31 for a 
technical mediation process and exclude s application of the dispute settlement procedure under 
Chapter 22 of the Agreement.  
5.23.   Article 12. 6 (subsidies) provides for a consultation process in the event that a Party 
considers a subsidy has or could have  a significant negative effect on its trade or investment 
interests.  If the consultations fail to resolve the matter , the Party to whom the consultation 
request is made shall accord  sympathetic consideration to the concerns of the requesting Party  
(Article  12.6.5) . Article 12.10  provides that Article 12.6.5 is specifically exclude d from  the 
application of the dispute settlement process under Chapter 2 2.  
5.24.   Article 14. 60 (on intellectual property cooperation between the Parties) shall not be subject 
to dispute  settlement under Chapter 2 2 (Article 14.63) . WT/REG441/1  
 
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  5.25.   In the event of  disagreement  under  Chapter 16  (trade and sustainable development) , 
dispute settlement provisions under  Chapter 2 2 shall not be applied (Article 16.17.1) and instead , 
the Parties shall use the  procedures in Article s 16.17 which  sets out a consultation process leading 
to consideration of the matter by the Committee on Trade and Sustainable Development. In case 
that the Parties do not reach a mutually satisfactory resolutio n, a Party may request to establish a 
panel of experts to examine the matter (Article 16.18).  
5.26.   The p rovisions of Chapter 11 (competition policy) and Chapter 21 ( trade and women's 
economic empowerment)  are not subject to dispute settlement under Chapter 2 2 of the 
Agreement (Article 11.10  and 21.4, respectively ).  
5.7  Relationship with other agreements concluded by the Parties   
5.27.   In addition to the relationship between the Agreement and the EU -Japan EPA, Article 1.9 
provides that the existing agreements between the UK and Japan are not superseded or 
terminated by th e Agreement.   
5.28.   The Parties also agree on specific provisions in the event of  an inconsistency between the 
obligations under the Agreement and the Protocol  on Ireland/Northern Ireland to the Agreement 
on the Withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European 
Union and the European Atomic Energy Community, signed on 24 January 2020  (hereinafter 
referred to as "Protocol").  Article 1.9(5) establishes that a Party can take a particular measure to 
address the inconsistency, even if such measure is inconsistent with the obligations under the 
Agreement.  The measure, however, shall not be applied in a manner that would constitute  a 
means of arbitrary or unjustified discrimination against the other Party or a disguised restriction on 
trade. It shall also be notified to the other Party  and consultations, on request of either Party, shall 
be held to seek a mutually acceptable solutio n in relation to the effects of the measure on the 
Agreement . 
5.29.   Table 5.1 below shows the Parties' RTAs in force, notified and non -notified, other than the 
Agreement.  
Table 5.1 United Kingdom and Japan: participation in other RTAs (notified and non -
notified in force), as of 16 January  2023 
RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
UNITED KINGDOM  
United Kingdom – Iceland, 
Liechtenstein and Norway  01-Dec-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom – Mexico  01-Jun-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Serbia  20-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Albania  03-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Jordan  01-May-21 Goods  2021 GATT Art. XXIV  
United Kingdom - Ghana  05-Mar-21 Goods  2021 GATT Art. XXIV  
EU - United Kingdom  01-Jan-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Cameroon  01-Jan-21 Goods  2020 GATT Art. XXIV 
United Kingdom - Canada  01-Jan-21 
01-Apr-21 Goods  
Services  2020 
2021 GATT Art. XXIV  
GATS Art. V  
United Kingdom - CARIFORUM 
States  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Central America  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Chile 01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Colombia, 
Ecuador an d Peru  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Côte d'Ivoire  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Eastern and 
Southern Africa States  01-Jan-21 Goods  2020 GATT Art. XXIV  WT/REG441/1  
 
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  RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
United Kingdom - Egypt  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Faroe Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Georgia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Israel  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Kenya  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Kosovob 01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Lebanon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Morocco  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - North Macedonia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Pacific States  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Samoa  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Solomon Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Palestine  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Republic of Korea  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Republic of 
Moldova  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - SACU and 
Mozambique  01-Jan-21 Goods  2021 GATT Art. XXIV  
United Kingdom – Singapore  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Switzerland - 
Liechtenstein  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Tunisia  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Türkiye  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Ukraine  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Viet Nam  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
JAPAN  
EU - Japan  01-Feb-19 Goods & 
Services  2019 GATT Art. XXIV & GATS Art. V  
Comprehensive and Progressive 
Agreement for Trans -Pacific 
Partnership (CPTPP)  30-Dec-18 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
Japan - Mongolia  07-Jun-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Japan - Australia  15-Jan-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Japan - Peru 01-Mar-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
India - Japan  01-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
Japan - Viet Nam  01-Oct-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Japan - Switzerland  01-Sep-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Japan - Philippines  11-Dec-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
ASEAN - Japan  01-Dec-08 
01-Jan-20 Goods  
Services  2009 
2022 GATT Art. XXIV  
GATS Art. V  
Brunei Darussalam - Japan  31-Jul-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
Japan - Indonesia  01-Jul-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
Japan - Thailand  01-Nov-07 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Chile - Japan  03-Sep-07 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Japan - Malaysia  13-Jul-06 Goods & 2006 GATT Art. XXIV & GATS Art. V  WT/REG441/1  
 
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  RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
Services  
Japan - Mexico  01-Apr-05 Goods & 
Services  2005 GATT Art. XXIV & GATS Art. V  
Japan - Singapore  30-Nov-02 Goods & 
Services  2002 GATT Art. XXIV & GATS Art. V  
Regional Comprehensive Economic 
Partnership (RCEP) Agreement  01-Jan-22 Goods & 
Services  Not notified  
United States - Japan  01-Jan-20 Goods  Not notified  
a Dates of the first entry into force/provisional application for at least one of the Parties. Where dates 
of provisional application have been provided by the Parties, further notifications to confirm the 
dates of entry into force are awaited.  
b Reference to Kosovo in this table shall b e understood to be in the context of the United Nations 
Security Council resolution 1244 (1999).  
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Dat abase on RTAs: http://rtais.wto.org .  
 
5.8  Government procurement  
5.30.   Provisions on g overnment procurement  follow those in the EU -Japan EPA  and are covered 
by Chapter 10 . The WTO's Agreement on Government Procurement (GPA , both Parties are party)  
is incorporated into Chapter  10, mutatis mutandis . Article 10.3 contains additional rules applicable 
to procurement  under the  Parties' Annexes to Appendix I to the GPA and Part 2 of Annex 10 to the 
Agreement.  
5.31.   Article 10.4 requires that notices of intended or planned procurement under Article VII of 
the GPA shall be directly accessible by electronic means, free of charge, through a single point of 
access on the Internet. Article 10.5 lists the conditions for participation by suppliers established in 
the other Party in a tendering procedure , while  Article 10.6 specifies  qualifications for suppliers , 
including the evaluation procedure of the supplier established in the UK and submitting a tender in 
view of a procurement for construction work in Japan (Article 10.6.2) . Article 10.7 permits 
selective tendering, provided that the number of suppliers is sufficient to ensure competition 
without com promising the operational efficiency of the procurement system. Article s 10.8-13 deal 
with technical specifications, test reports, environmental conditions, treatment of tenders and 
awarding of contracts, domestic review procedures , and collection and repo rting of statistics.  
5.32.   A Party may modify or rectify its commitments under Part 2 of Annex 10  (Article 10.14) . If a 
Party modifies or rectifies its Annexes to Appendix I to the GPA, it shall automatically become 
effective for the purposes of this Agreement.  
5.33.   While under the Agreement, the Parties' thresholds are almost the same as those under the 
GPA the scope of the entities subject to commitments is expanded compared to the specific 
entities listed in each Party's commitments under  the GPA.  
5.34.   In comparison to the EU -Japan EPA, t here are no significant changes to UK market access 
commitments, except for technical ame ndments  such as, inter alia , the conversion from euro into 
sterling, where appropriate. The UK expands the  list of sub -central government entities listed in 
Annex 2 to Appendix I of the GPA . Paragraph 1 specifies the addition of procurement of goods and 
services by local administrative units107, while paragraph 2, refers to the inclusion of the bodies 
governed by public law that are hospitals or universities .108  
 
107 Local administrative units are "as defined by the UK Statistics Authority in accordance with the 
Statistics and Registration Service Act 2007, with a population of between 200,000 and 499,999 inhabitants".  
108 Such bodies are described for the UK by category in the following indicative list: (1) Universities and 
colleges financed for the most part by othe r contracting authorities; (2) Research Councils; and (3) National 
Health Service Strategic Health Authorities.  WT/REG441/1  
 
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  5.35.   The UK also includes commitments on procurement of railway -related goods and services  
(paragrap h 3).109  
5.36.   For services, in paragraph 4 t he UK adds to the list of services sectors covered under the 
UK's Annex 5 to Appendix I to the GPA:  
i. for central government entities: Food serving services and Beverage serving services 
(CPC 642, 643); Telecommunicati ons related services (CPC 754); Photographic 
services (CPC 87501 to 87503, 87505, 87507, 87509); Packaging services (CPC 
876); Other business services (CPC 87901, 87903, 87905 to 87907);  
ii. for sub -central government entities: Beverage serving services (CPC 6 43); General 
management consulting services (CPC 86501); Financial management consulting 
services (except business tax) (CPC 86502); Marketing management consulting 
services (CPC 86503); Human resources management consulting services (CPC 
86504); Productio n management consulting services (CPC 86505); Other 
management consulting services (CPC 86509);  
iii. for all covered entities: Real estate services on a fee or contract basis (CPC 8220).  
5.37.   Japan's commitm ents are set out in Section B of Part 2 of Annex 10  and are  substantially 
the same as under the EU -Japan EPA . Chapter 10 applies to procurement covered by Japan's GPA 
commitments , other than procurement set in paragraph 2 of Section B.  
5.38.   Japan has expanded the scope of covered entities  under the Agreement . In addition to 
procurement by sub -central entities listed in Annex 2 to Appendix I of the GPA, Japan includes (a) 
procurement by Kumamoto -shi and (b) procurement by local independent administrative agencies 
of goods and services, as s pecified in Japan's Annexes 4 to 6 to Appendix I of the GPA. In relation 
to (b), Japan also lists 89 entities such as hospitals and universities captured by the new 
commitment as of 1 February 2018 for reference purposes.  
5.39.   In addition to the entities under  its GPA commitments, Japan includes procurement related 
to the production, transport or distribution of electricity by sub -central entities listed in the GPA as 
well as by Kumamoto -shi.110 In paragraph 2, Japan also includes procurement by "Core Cities"111 
in which suppliers of the UK112 will be accorded treatment no less favourable than that accorded to 
locally established suppliers including, if and where such exist, access to any review procedures 
available to locally established suppliers.113 The procureme nt of construction services (CPC 51) is 
excluded from commitments in paragraph 2 of Section B.  Japan also provides access to 
procurement related to the operational safety of transportation by certain railway companies.114  
5.40.   For services, Japan expands the se rvices listed in Annex 5 of its GPA commitments, with the 
addition of 21 service sectors for procurement by central government entities , 11 service sectors 
by sub -central government entities , and Kumamoto -shi. 
 
109 With a listing of the products subject to the commitment defined by reference to "CPV", Common 
Procurement Vocabulary of the United Kingdom, a s defined by Regulation (EC) No 2195/2002 of the European 
Parliament and of the Council of 5 November 2002 on the Common Procurement Vocabulary (CPV), last 
amended by Commission Regulation (EC) No 213/2008 of 28 November 2007.  
110 A list of 28 covered sub -central government entities that as of 1 February 2018 is contained for 
reference purposes in sub -paragraph (c).  
111 As defined by paragraph 1 of Article 252 -22 of Japan's Local Autonomy Law (Law No. 67 of 1947).  
112 Supplier of the United Kingdom means, in case  of a juridical person, a juridical person of the UK. In 
case the supplier is a juridical person owned or controlled by a natural or juridical person of a third country or 
Japan, and that person would substantively benefit from this paragraph and undermine  the attainment of the 
objectives of Chapter 10, Japan may deny the benefits of this paragraph to that supplier. For the purpose of 
this paragraph, the definitions contained in subparagraphs (l) to (n) of Article 8.2 apply.  
113 Any obligations in Chapter 10  of the Agreement other than that described in the preceding sentence 
do not apply to Core Cities of Japan.  
114 Hokkaido Railway Company, Japan Freight Railway Company, Japan Railway Construction, Transport 
and Technology Agency, Shikoku Railway Company and Tokyo Metro Co., Ltd.  WT/REG441/1  
 
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  5.41.   Whilst the thresholds for tender remain unchan ged from those under the GPA, with respect 
to other entities  in its GPA commitments  Japan lowers the threshold to 100,000 SDR s for goods 
and services  except for a rchitectural, engineering and other technical services related to 
construction services which remain at  4,500,000 SDR s. In respect of Group B of Japan's Annex 3 
to Appendix I of the GPA, Japan adds 6 entities whose procurement of goods and services is 
opened to the UK suppliers.  
5.42.   A Committee on Government Procurement , established under Article 23.3 , is responsible for 
the effective implementation and operation of Chapter  10. Its functions are set out in 
Article  10.16.2.  
5.9  Intellectual property rights115 
5.43.   Intellectual property is covered by Chapter 14 of the Agreement.   
5.44.   In Section A ( general provisions) of Chapter 14, the Parties reaffirm their commitment to 
comply with the obligations set out in the international agreements relating to intellectual property  
to which both Parties are party , including the TRIPS Agreement  (Article 14.3) . Provisio ns on 
national treatment (Article 14.4) and most -favoured -nation treatment (Article 14.5) largely mirror 
the respective TRIPS provisions  (Articles 3 and 4) . Procedural matters and transparency  are 
covered in Article 14.6, under which for the purposes of pr omoting transparency in the 
administration of its intellectual property system, each Party shall make all reasonable efforts to 
take appropriate available measures to publish information on applications for and grant of 
patents, registration of industrial designs and trademarks (and applications for trademarks), 
registration of new varieties of plants and registrations of geographical indications. As provided in 
Article 14.6, the Parties shall make all reasonable efforts to make available to the public 
information on measures taken by the competent authorities to suspend the release of goods 
infringing intellectual property rights as a border measure set out in Article 14.5 7 of the 
Agreement .  
5.45.   Section B of Chapter 14 covers  standards concerning intellectual property. Sub-section 1 
(copyright and related rights ) contains provisions related to authors, performers, producers of 
phonograms, broadcasting organisations, and use of phonograms  (Articles 14. 8 to 14.12) . The 
term of pr otection of rights for an  author of literary or artistic works  is the life of the author plus 
70 years after the author 's death , some exceptions  apply ; for performers, it is no less than 50 
years after a performance ; for producers of phonograms, it is no l ess than 70 years after the 
phonogram was published, some exceptions apply; and in broadcasts, it is no less than 50 years 
after the first transmission of the broadcast  (Article 14.13).   
5.46.   Provisions are also made allowing limitations and exceptions  to the r ights set out in Articles 
14.8 to 14.12 only in certain special cases (Article 14. 14). Legal remedies shall be provided 
against the circumvention of effective technological measures  used by authors, performers or 
producers of phonograms  (Article 14. 18), and also in respect of rights management information 
where there have been  other acts to induce, enable, facilitate or conceal an infringement of 
copyright and related rights (Article 14.19).  
5.47.   Sub-section 2 of Section B concerns trademarks. Each Party sha ll ensure that the owner of a 
registered trademark has the exclusive right to prevent all third parties not having the owner's 
consent from using identical or similar signs for goods or services which are identical or similar to 
those in respect of which t he trademark is registered where such use would result in a likelihood of 
confusion  (Article 14.20) . Article 14. 21 requires each Party to provide limited exceptions to the 
rights conferred by a trademark, such as fair use of descriptive terms , provided tha t exceptions  
take account of the legitimate interest of the owner of the trademark and also third parties. In 
Article 14.2 3 for the purpose of giving effect to the protection of well -known trademarks, as 
referred to in Article 6 bis of the Paris Convention and paragraphs 2 and 3 of Article 16 of the 
TRIPS Agreement , the Parties affirm the importance of the Joint Recommendation Concerning 
 
115 Intellectual property means all categories of intellectual property that are covered by Articles 14.8 to 
14.44 of the Chapter or Sections 1 to 7 of Part II of the WTO Agreement on Trade -Related Aspects of 
Intellectual Property Rights (TRIPS Agreement) . The protection of intellectual property includes protection 
against unfair competition as referred to in Article 10bis of the Paris Conventio n (Article 14.1.3 ). WT/REG441/1  
 
- 64 - 
 
  Provisions on the Protection of Well -Known Marks.  Other provisions of Sub -section 2 of Section B 
refer to preparatory acts  deemed as infringement  (Article 14.22) , bad faith trademarks  (Article 
14.24) , and registration and renewal process  (Article 14.25) .  
5.48.   Sub-section 3 of Section B concerns geographical indications (GIs). Article 14.26 applies  to 
the recognition and protection of GIs for wines, spirits and other alcoholic beverages as well as 
agricultural products which originate in the Parties.116 The GIs  listed in Annex 14 -B shall be 
protected by a Party under th e Agreement if they fall within  the types of goods that the other 
Party protects in accordance with its laws and regulations listed in Annex 14 -A. Each Party shall 
establish or maintain a system for the registration and protection of GIs in its territory  (Article 
14.27) . The Parties mus t recogni se and protect the GIs set out in the other Party's list  in Annex 
14-B, following the completion of an opposition procedure and examination of the GIs concerned 
(Article 14.28) . Article  14.29 sets out the scope of protection of GIs listed in Annex  14-B to the 
Agreement. Article 14. 32 requires each Party to authori se its competent authorities to take 
appropriate measures to protect GIs ex officio  or on request of an interested Party  in accordance 
with its laws and regulations . Under Article 14. 33, a Party shall prevent the continuation of a  prior 
use of a GI of the other Party listed in Annex 14 -B after a maximum  transitional period of 5 or 7 
years, depending on the goods. Article 14 .34 covers provisions related to the amendment of the 
lists of GIs. As reported by the Parties, a s of October 2022, there is no update regarding the lists 
of GIs . 
5.49.   Under Sub-section 4 of Section B the Parties provide for the protection of industrial 
designs117 and allow for multiple design applications; the total term of protection is  no less than  25 
years from the date on which  the application  was made (Article 14.35 - 14.36) . Sub-section 5 of 
Section B provides p rotection for the unregistered appearance of products and stipulates that the 
protection shall amount to at least three years and that Parties shall provide legal means to 
prevent the use of the unregistered appearance of a product if the use results from copying it 
(Article 14.37).   
5.50.   Sub-section 6  of Section B sets out provisions related to  patents . As outlined by Article 
14.38, each Party shall ensure that a patent confers on its owner exclusive rights and each Party 
may provide limited exceptions to the exclusive rights co nferred by a patent (except where 
exceptions un reasonably conflict with a normal exploitation of the patent or unreasonably 
prejudice the legitimate interests of that p atent owner). The Parties shall ensure consistency with 
the Doha Declaration on the TRIP S Agreement and Public Health (Article 14.39). With regard to 
patent  protection for pharmaceutical and agricultural chemical products , each Party shall provide 
for a compensatory term of protection of five years to compensate the patent owner for the period 
during  which the patented invention cannot be worked due to  the marketing approval process  
(Article  14.40) .  
5.51.   In Sub-section 7 of Section B , the Parties commit to providing protection of trade secrets 
according to Article 39 .2 of the TRIPS Agreement  (Article 14.41) . On undisclosed test or other 
data, Article 14.42 specifies the protection and treatment of test data in the marketing approval 
procedure.  
5.52.    In Sub -section 8 of Section B, Article 14.43 outlines that the p rotection fo r new varieties of 
plants  is to be provided under  the 1991 UPOV Convention .118 Under Sub -section 9 of Section B, 
Article  14.44 ensures that each Party shall provide for effective protection against unfair 
competition in accordance with the Paris Convention.   
5.53.   Section C of Chapter 14 concerns enforcement. Sub-section 1 of Section C on general 
provisions  requires that in addition to their obligations under the TRIPS Agreement, in particular 
Part III thereof, the Parties shall provide complementary measures, procedures and remedies 
necessary to ensure the enforcement of intellectual property rights.  
 
116 Geographical indications are indications which identify a good as originating in the territory of a 
Party, or a region or locality in that Party's territory, where a given quality, reputation or other characteristic of 
the good is essentially attributable to its geographic origin.  (Article 14.26.1).  
117 For the purposes of Sub -Section  4 of Section B o f Chapter 14 , for the UK, industrial designs refer to 
registered designs.  
118 The International Union for the Protection of New Varieties of Plants.  WT/REG441/1  
 
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  5.54.   Sub-section 2 o f Section C covers e nforcement via civil remedies. The Parties shall provide  
that their judicial authorities may, on request of an applicant, issue an interlocutory injunction , for 
the seizure or delivery of goods,  and to prevent the imminent or a continua tion of the alleged 
infringement of an intellectual property right  (Article 14.49) . Other provisions of sub -section 2 
provide for measures for preserving evidence, right to information, corrective measures, 
injunctions , damages , costs , presumption of autho rship or ownership, and access to justice. 
Enforcement of protection against  misappropriation of trade secrets  through civil procedures and 
remedies  is provided for by Sub -section 3 of Section C . Article 14.57 in Sub -section 4 of Section C 
provides that t he Parties shall a dopt or  maintain procedures  under which a right holder may 
submit applications requesting its customs authority to suspend the release o r detain goods at the 
border suspected of infringing trademarks, copyright and related rights, g eographical indications, 
patents, utility models, industrial designs, and plant  variety  rights  in its territory . The customs 
authorities of each Party  shall also have the authority to act on its own initiative to suspend the 
release of, or detain, suspect goods in its territory. Criminal procedures and penalties are provided 
for by Sub-section 5 of the same section , as to be applied at least in cases of wilful trademark 
counterfeiting or copyright or related rights piracy on a commercial scale .119 Sub-sectio n 6 covers 
provisions with respect of the enforcement in the digital environment, emphasi zing that the Parties 
shall ensure that civil (Sub -Section 2  of Section C ) and criminal (Sub -Section 5  of Section C ) 
enforcement procedures are available under its law  so as to permit effective action against an act 
of infringement of intellectual property rights in the digital environment, including expeditious 
remedies to prevent infringement and remedies which constitute a deterrent to further 
infringements.  
5.55.   Section  D of Chapter 14 concerns cooperation and institutional arrangements. Article 14. 60 
on cooperation, provides that the Parties shall cooperate on the protection of intellectual property, 
including by exchange of information on relations of a Party with third countries on matters 
concerning intellectual property. Cooperation may include ex change of information, sharing of 
experiences and skills and any other form of cooperation or activities as may be agreed between 
the Parties.  
5.56.   A Committee on Intellectual Property is established by Article 2 3.3 and is responsible for the 
effective impleme ntation and operation of Chapter  14 (Article 14.61) . Its functions are set out in 
Article 14 .61.2.  
5.57.   Article 73 (Security Exceptions) of the TRIPS Agreement is incorporated into and made part 
of the Agreement, mutatis mutandis  (Article 14.6.2) . 
5.58.   The p rovisio ns of Article 14.60 (Cooperation)  are not subject to dispute settlement under 
Chapter 2 2 of the Agreement (Article 1 4.63).  
5.10  Competition  
5.59.   Competition policy is covered by Chapter 11. Article 11.2 provides that each Party shall, in 
accordance with its laws an d regulations, take measures it considers appropriate against 
anticompetitive practices, in order to achieve the objectives of the Agreement. In Article  11.3 the 
Parties agree to maintain their competition law s to address specific anti -competitive behaviou r and 
practices. Each Party shall apply their competition law to all enterprises, private and public, 
engaged in economic activities. A Party may provide exemptions under its competition law 
provided the exemptions are transparent and are based on public p olicy grounds or public interest 
grounds.  
5.60.   Obligations concerning operational independence, non -discrimination, procedural fairness, 
consumer protection, transparency and enforcement cooperation are set out in Articles 11.4 -11.9.  
5.61.   The p rovisions of Chapter  11 are not subject to dispute settlement under Chapter 2 2 of the 
Agreement (Article 11.10).  
 
119 It is further clarified in the footnote that for the purposes of Sub -Section 5, acts carried out on a 
comme rcial scale include at least those carried out as commercial activities for commercial advantage or 
financial gain.  WT/REG441/1  
 
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  5.62.   Chapter 13, which covers certain State -owned enterprises (SOEs) engaged in commercial 
activities, requires them to act in accordance with commercial consideration s except to fulfil any 
terms of a public service mandate, and to provide non -discriminatory treatment in its purchase or 
sale of a good or service  (Article 13.5 ). The Parties shall also ensure that any regulatory body is 
independent from and not accountable to any of the enterprises regulated by it and acts 
impartially in like circumstances with respect to all enterprises it regulates including SOEs, 
enterprises gr anted special rights or privileges and designated monopolies  (Article 13.6) . The 
Parties' laws and regulations shall be applied to such enterprises in a consistent and non -
discriminatory manner  (Article 13.6) . 
5.11  Environment  and labour  
5.63.   Trade and sustainable development , covered in Chapter 16 of the Agreement , aims  to 
strengthen the trade relations and cooperation between the Parties in ways that promote 
sustainable development, and not to harmonise environment al or labour standards of the Parties  
(Article 16.1) . 
5.64.   While the Parties recognise their sovereign right to establish their own levels of domestic 
environmental and labour protection and priorities, they also recognise that it is inappropriate to 
encourage trade or investment by relaxing  or lowering the level of  protection provided for  in their 
respective environmental or labour laws and regulations, or to use their respective environmental 
or labour laws or regulations  in a manner which would constitute a means of arbitrary or 
unjustifiable dis crimination against the other Party, or a disguised restriction on international trade 
(Article 16.2).  
5.65.   Reaffirm ing their obligations deriving from  the International Labour Organisation (ILO) 
membership and commitments under the multilateral environmental a greements to which they are 
party , the Parties shall respect, promote and realise in their laws, regulations and practices the 
internationally recognised principles concerning the fundamental rights at work , and commit to 
work together to take actions to address climate change towards achieving the ultimate objective 
of the UNFCCC120 and the purpose of the Paris Agreement. It is also recognised  that labour 
standards should not be used for protectionist trade purposes , and that measures to impleme nt 
the multilateral environmental agreements are not to be applied in a manner that would constitute 
a means of arbitrary or unjustifiable discrimination against the other Party or a disguised 
restriction on trade  (Articles 16.3 -16.4).  
5.66.   The importance  of en hancing the contribution of trade and investment to the goal of 
sustainable development in its economic, social and environmental dimensions is recognized by 
the Parties via, inter alia , facilitating and promoting trade and investment in environmental good s 
and services, as well as those of particular relevance to climate change mitigation, encouraging 
corporate social responsibility (Article 16.5).  
5.67.   In Articles 16.6 to 16.8 t he importance and the role of trade and investment are recognized 
in ensuring the conservation and sustainable (a) use of biological diversity in accordance with 
relevant international agreements to which they are party; (b) management of forests; (c) use 
and management of fisheries resources, safeguarding marine ecosystems, and promoti ng 
responsible and sustainable aquaculture. Other provisions of Chapter 16 concern issue s related to 
scientific information, transparency, review of sustainability impacts, and cooperation (Articles 
16.9-12). 
5.68.   A Committee on Trade and Sustainable Developmen t is established by Article 23.3 of the 
Agreement  and responsible for the effective implementation of the Chapter 16 (Article 16.13). Its 
functions are set out in Article 16.13. As reported by the Parties, th e first meeting of the 
Committee on Trade and Su stainable Development took place on 13 October 2021 via 
videoconference. The second meeting is scheduled for December 2022.  
5.69.   Chapter 16 also provides for the designation of contact points to facilitate communications 
between the Parties on any matter relati ng to th is Chapter  (Article 16.14)  As reported by the 
 
120 United Nations Framework Convention on Climate Change, done at New York on 9 May 1992.  WT/REG441/1  
 
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  Parties, u pon entry into force of the Agreement, the Parties designated contact points and 
exchanged contact details.  
5.70.   Other provisions relate to engagement with domestic advisory groups and a joint dialogue 
with civil society (Articles  16.15 -16). This is followed by provisions on government consultations 
and panel of experts121 in the event of any disagreement between Parties (Article s 16.17 -18). 
5.12  Electronic commerce  
5.71.   Electronic commerce is covere d in Section F of Chapter 8 ( trade in services, investment 
liberalization an d electronic commerce) of the Agreement, wh ose objective is to contribute to 
creating an environment of trust and confidence in the use of electronic commerce and to promote 
electr onic commerce between the Parties (Article 8.70). Section F applies to measures by a Party 
affecting trade by electronic means; gambling and betting services, broadcasting services, audio -
visual services, services of notaries or equivalent professions, and  legal representation services are 
excluded from the coverage .  
5.72.   In comparison with the  current WTO moratorium on imposing customs duties on electronic 
transmissions, t he Parties  agree to not impose customs duties on electronic transmissions,  
including  content transmitted electronically (Article 8.72).   
5.73.   Under Article 8.73 the transfer of, or access to,  the source code of software owned by a 
person of the other Party, shall not be required as a condition for the import, distribution, sale or 
use of that softw are in its territory. However, a  regulatory body or judicial authority of a Party may 
request the source code (a) to preserve and make it available for an investigation, inspection, 
examination, enforcement action or judicial proceeding, subject to safegua rds against 
unauthorised disclosure; or (b) to transfer or provide access to it for the purpose of imposing or 
enforcing a remedy granted in accordance with that Party's law. The voluntary transfer of, or 
granting of access to, the source code, or an algor ithm expressed in that source code (such as in 
the context of a freely negotiated contract or government procurement) and services supplied,  or 
activities performed in the exercise of governmental authority are excluded from the application of 
Article 8.73 . 
5.74.   The Parties agree to ensure all their measures of general application affecting electronic 
commerce , including measures related to the collection of information, are administered in a 
reasonable, objective and impartial manner (Article 8.74).  
5.75.   Section F of Chapter 8  also includes provisions on the principle of no prior authori zation; 
conclusion of contracts by electronic means ; electronic authentication and electronic signature ; 
principles on access to and use of the Internet for electronic comm erce; consumer protection ; 
personal information protection; unsolicited commercial electronic messages; and open 
government data ( Articles 8.75 -82).  
5.76.   The Parties agree to maintain a dialogue on regulatory matters relating to electronic 
commerce including , inter alia , consumer protection,  personal information protection,  
cybersecurity, electronic trust services , treatment of digital products, emerging technology, 
including artificial intelligence and the Internet of Things, intellectual property and electron ic 
government  (Article  8.83) .  
5.77.   With the exception of adopting and maintaining measures that are necessary to achieve a 
legitimate public policy objective, the Parties agree not to prohibit or restrict the cross -border 
transfer of information by electronic means, including personal information (Article 8.84); and not 
to require a covered person to use or locate computing facilities in that Party's territory as a 
condition for conducting business in that territory  (Article 8.85) . Provisions on cross -border 
transfer of information by electronic means and location of computer facilities are not applied to 
government procurement and to information held or processed by or on behalf of a Party, 
including measures related to its collection  (Articles 8.84.3 -85.3) . The Part ies also agree on 
 
121 For further description of the dispute settlement  provisions applicable to Chapter 16, please refer to 
Section 5.6 of this factual presentation.  WT/REG441/1  
 
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  specific provisions related to commercial information and communication technology products that 
use cryptography (Article  8.86).  
5.13  Small and medium -sized enterprises  
5.78.   Provisions related to small and medium -sized enterprises (SMEs) are covered in Chapter 20 
of the Agreement. The Parties agreed to undertake and strengthen cooperation activities to (a) 
identify ways to assist  their SMEs to take advantage of the commercial opportunities under the 
Agreement; and ( b) promote and facilitate trade and investment opportunities for their SMEs. 
Cooperation activities include, inter alia , promoting cooperation between their relevant entities 
including non -governmental organisations with a view to assisting SMEs; developin g and 
promoting seminars, workshops or other activities to inform SMEs of the benefits available to them 
under the Agreement; exchanging and discussing their experiences and best practices in 
supporting and assisting SMEs that are exporters  (Article 20.2) . 
5.79.   The Parties agree to share information through publicly accessible websites including on the 
text of the Agreemen t, its Annexes, a summary of the Agreement , and information designed for 
SMEs that contains provisions and any additional information that a P arty considers to be relevant 
and useful to SMEs . They also agree to provide other relevant information through links on the 
website including on (a) customs legislation and procedures, (b) laws and regulations concerning 
intellectual property rights, (c) technical regulations and conformity assessment procedures, (d) 
sanitary and phytosanitary measures relevant for importation and exportation, (e) publication of 
notices for government procurement, (f) business registration procedures, and (g) import taxes 
collected. The website shall also link to a database that is electronically searchable by tariff 
nomenclature code  and be free of change . (Article 20.3).  
5.80.   Upon entry into force of the Agreement the  Parties  designated and exchanged contact 
points for governm ent-to-government cooperation to ensure that SMEs benefit from all provisions 
of the Agreement  (Article 20.4) .  
5.81.   The provisions  of Chapter 20 are not subject to dispute settlement under  Chapter 2 2 of the 
Agreement . 
5.14  Other  
5.14.1   Corporate Governance  
5.82.   In Chapter 15 the Parties acknowledge the importance of an effective corporate governance 
framework to achieve economic growth through well -functioning markets and sound financial 
systems based on transparency, efficiency, trust and integrity.  
5.83.   The Parties ag ree on g eneral principles, referring to the importance of the role of the 
corporate governance framework in providing timely and accurate disclosure on all material 
matters regarding publicly listed companies within their respective jurisdictions, includin g the 
financial situation, performance, ownership and governance of those companies , as well as 
providing appropriate accountability of the management and the board towards the shareholders, 
responsible board decision -making based on an independent and obj ective standpoint, and equal 
treatment of shareholders of the same class  (Article 15.3) . Other provisions of Chapter 15 include 
the rights of shareholders and ownership functions, roles of the board, and takeovers 
(Articles  15.4-6). 
5.84.   The p rovisions of Chapt er 15 are not subject to dispute settlement under Chapter 2 2 of the 
Agreement (Article 1 5.7).  
5.14.1.1   Good regulatory practices and regulatory cooperation  
5.85.   Good regulatory practices and regulatory cooperation are covered in Chapter 18 of the 
Agreement . In Section A, the Parties aim to promote cooperation between them to enhanc e 
bilateral trade and investment (Article 18.1). Nevertheless, n othing shall affect the right of a Party 
to define or regulate its own levels of protection in the specified areas (i.e. public health; human, 
animal and plant life and health; occupational health and safety; labour conditions; the WT/REG441/1  
 
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  environment (including climate change); consumer s; social protection ; social security, etc) (Article 
18.1.2). The Parties also agree that regulatory mea sures shall not constitute a disguised barrier to 
trade (Article 18.1.4).  
5.86.   In sub -section 2 of Section A, the Parties agree  to make publicly available descriptions of 
the processes and mechanisms used by the regulatory authority to prepare, evaluate and rev iew 
its regulatory measures; make publicly available at least once a year a list of its planned major 
regulatory measures together with a brief description of their scope and objectives; provide for 
public consultation when preparing major regulatory measu res; and endeavour to systematically 
carry out an impact assessment of major regulatory measures under preparation.122 
5.87.   Sub-section 3 of Section A concerns regulatory cooperation and includes provisions on 
regulatory cooperation activities and good practices  to promote regulatory compatibility.  
5.88.   Sub-section 4 of Section A sets out the functions of the Committee on Regulatory 
Cooperation (established pursuant to Article 23.3). As reported by the Parties, t he first meeting of 
the Committee on Regulatory Cooperation was held in February 2022 via vide oconference . Parties 
have agreed to establish contact points for exchange of information (Article 18.15 -16). 
5.89.   In Section B ( animal welfare) to Chapter 18 the Parties agree to cooperate for their mutual 
benefit on matters of animal welfare with a focus on fa rmed animals with a view to improving 
mutual understanding of their respective laws and regulations (Article 18.17).  
5.90.   The provisions  which are stipulated in Section A  on good regulatory practices and regulatory 
cooperation  do not apply to animal welfare and  to regulatory cooperation in financial services 
(Article 18.18).  
5.91.   The provisions of Chapter 18 are not subject to dispute settlement under Chapter 2 2 of the 
Agree ment (Article 18.19).  
5.14.2   Trade and Women's Economic Empowerment  
5.92.   In Chapter 21 the Parties agree  to consider cooperation  aimed at enhancing the ability of 
women, including workers and business owners, to fully access and benefit from the opportunities 
created by the Agreement. Such activities may include providing advice or training, and 
exchanging i nformation and experience  on, inter alia : programmes aimed at improving the access 
of women to markets, technology and financing; development of women's leadership and business 
networks; identification of best practices related to workplace flexibility; an d activities related to 
the Joint Declaration on Trade and Women's Economic Empowerment at the WTO Ministerial 
Conference in Buenos Aires in December 2017.  
5.93.   A Working Group on Trade and Women's Economic Empowerment is established by Article 
21.3 of the Agre ement  which is  responsible for furthering  the shared objectives of enhancing the 
ability of women to fully access and benefit from the opportunities created by trade, for 
implementing cooperation activities, and for providing an opportunity for monitoring and review as 
may be agreed by the Parties. As reported by the Parties, t he W orking Group on Trade and 
Women 's Economic Empowerment met for the first time on 21 October 2021. The next meeting is 
planned for January 2023 . 
5.94.   The provisions of Chapter 21 are not subject to dispute settlement under Chapter  22 of the 
Agreement (Article 21.4).  
 
122 The regulatory authority shall also maintain processes or mechanisms to promote periodic 
retrospective evaluations of regulatory measures in force.  WT/REG441/1  
 
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  ANNEX 1  
1. Table A1.1 shows tariff liberalization by the UK in relation to imports from Japan (by total, 
agricultural and industrial products). In 20 21 the UK's average applied overall MFN rate was 3.8% 
(8.9% for agricultural products and 2.5 % for industrial products). 47% of the  UK's tariff was duty -
free on an MFN basis ( 18.8% for agricultural products and 57.1 % for industrial products).  
2. Under the Agreement in 2021, the UK's preferential tariff for imports from Japan was 0.2% 
overall and 0.4% and 0.2% respectively for agricultural and industrial products. As a result,  
Japan's exporters enjoyed a  relative  margin  of preference of 94.7% overall vis-à-vis the prevailing 
MFN tariff  and 95.5% for agricultural products and 92% for industrial products. The share of duty -
free lines applicable to imports from Japan in 2021 was 9 6.6% overall (94.9% for agricultural 
product s and 9 7.2% for industrial products) , which will further increase to reach 9 9.4% in 20 34 
(97.7% for agricultural products and 100% for industrial products).  
Table A1. 1 United Kingdom : Indicators of MFN tariff rates and preferential rates for 
imports from Japan  
Origin of 
goods  Year ALL PRODUCTS  HS Chapters 01 -24 HS Chapters 25 -97 
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 3.8 7.8 47.0 8.9 12.0 18.8 2.5 5.8 57.1 
Japan  2021 
(JAN)  0.2 7.6 96.6 0.4 10.9 94.9 0.2 6.0 97.2 
 2021 
(FEB)  0.2 6.6 96.6 0.4 10.1 94.9 0.1 5.0 97.2 
 2022 0.2 6.9 97.2 0.4 9.2 94.9 0.1 5.3 98.0 
 2023 0.1 5.8 97.2 0.3 8.4 94.9 0.1 4.2 98.0 
 2024 0.1 5.7 97.6 0.3 7.5 94.9 0.1 4.0 98.5 
 2025 0.1 4.6 97.6 0.3 6.7 94.9 0.041  2.8 98.5 
 2026 0.1 6.4 98.5 0.2 7.5 95.7 0.022  4.3 99.5 
 2027 0.1 5.6 98.5 0.2 6.8 95.7 0.016  3.2 99.5 
 2028 0.1 4.7 98.5 0.2 6.0 95.7 0.010  2.0 99.5 
 2029 0.04 4.6 98.7 0.2 5.3 95.7 0.004  1.8 99.8 
 2030 0.04 3.9 98.7 0.1 4.6 95.7 0.002  0.9 99.8 
 2031 0.03 3.9 98.9 0.1 3.9 95.7 0.0 0.0 100.0  
 2032 0.03 3.2 98.9 0.1 3.2 95.7 0.0 0.0 100.0  
 2033 0.02 2.5 98.9 0.1 2.5 95.7 0.0 0.0 100.0  
 2034  0.01 5.4 99.4 0.1 5.4 97.7 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rat e for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff 
rates are averaged to the 8-digit level.  
 Based on the HS 2017 n omenclature.  
Source:  WTO estimates based on data provided by the UK.  
3. Table A1.2 sets out additional market access opportunities resulting from entry into force of 
the Agreement for Japan's top 25 global exports, which represented 32.1% of its global exports in 
2018-2020, corresponding to 81 lines in the UK's tariff at the eight -digit level (using the HS  2017) .  
4. In 20 21, 51 of those lines had duty -free access on an MFN basis  to the UK's market . Under  
the Agreement, a further 18 dutiable items were duty-free for Japanese exporters. The remaining 
lines w ill become duty -free in 2026.  
5. At the end of the implementation period, none of the lines in the UK tariff covering Japan's 
top 25 global exports will be dutiable.  WT/REG441/1  
 
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  Table A1. 2 Unite Kingdom: Market access opportunities under the agreement for Japan's 
top 2 5 exports to the world   
Japan's top export products in 2018 -20 Access Conditions to UK's markets  
HS number and description  Share in 
global 
exports 
(%) MFN 2021  No. of 
duty-free 
lines 
under the 
agree -
ment  
Remain Dutiable  
Average 
Tariff 
(%) No. of 
duty-
free 
lines  No. of 
duti-
able 
lines  
2021  
(Jan)  
2026  
870323  Motor cars and other motor vehicles  6.6 10.0  3  3  
870324  Motor cars and other motor vehicles  2.6 10.0  2  2  
870840  Gear boxes and parts thereof  2.4 3.0  4 4   
870340  Motor cars and other motor vehicles  2.2 10.0  2  2  
848620  Machines and apparatus for the 
manufacture of semiconductor devices  1.7 0.0 1     
854232  Electronic integrated circuits as 
memories  1.7 0.0 10     
854239  Electronic integrated circuits  1.6 0.0 3     
271019  Medium oils and preparations  1.1 1.2 12 13 13   
844399  Parts and accessories of printers, 
copying machines and facsimile 
machines  1.1 0.0 2     
842952  Self-propelled mechanical shovels, 
excavators and shovel loaders  1.0 0.0 2     
890190  Vessels  1.0 0.0 2     
710812  Gold  0.8 0.0 1     
848690  Parts and accessories for machines and 
apparatus of a kind used solely or 
principally for the manufacture of 
semiconductor boules or wafers, 
semiconductor devices, electronic 
integrated circuits or flat panel displays  0.8 0.0 1     
847989  Machines and mechanical appliances  0.8 0.0 4     
870322  Motor cars and other motor vehicles  0.7 10.0  2  2  
890120  Tankers  0.7 0.0 2     
840991  Parts suitable for use solely or 
principally with spark -ignition internal 
combustion piston engine  0.6 2.0  1 1   
853690  Electrical apparatus for switching 
electrical circuits, or for making 
connections to or in electrical circuits  0.6 0.0 4     
853224  Fixed electrical capacitors, ceramic 
dielectric, multilayer  0.6 0.0 1     
381800  Chemical elements and compounds 
doped for use in electronics  0.6 0.0 2     
330499  Beauty or make -up preparations and 
preparations for the care of the skin  0.6 0.0 1     
848630  Machines and apparatus for the 
manufacture of flat panel displays  0.6 0.0 1     
300490  Medicaments  0.6 0.0 1     
880330  Parts of aeroplanes or helicopters  0.5 0.0 1     
870422  Motor vehicles for the transport of 
goods  0.5 7.3  3  3  
Total of above  32.1 2.1 51 30 18 12 - 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rat e for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff 
rates are averaged to the 8 -digit level.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provi ded by the UK.  WT/REG441/1  
 
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  6. Table A1.3 shows tariff liberalization by Japan in relation to imports from the UK (by total, 
agricultural and industry products). In 20 21 Japan's average applied MFN rate was 4.8% overall 
(10.7% for agricultural products and 3% on industria l products ). 40. 5% of Japan's tariff was duty 
free on an MFN basis ; 17.6% for agricultural products and 47.9% for industrial products.  
7. Under the Agreement, in 2021, the overall preferential tariff for imports from the UK was 
1.5% overall and respectively 5.2% and 0.3% for agricultural and industrial products. As a result , 
UK exporters enjoyed a relative margin of preference of 68.8% overall  vis-à-vis the prevailing MFN 
tariff; 48.6% for agricultural products  and 90% for industrial products.  The share of duty -free lines 
applicable to imports from the UK in 2021 under the Agreement was overall 85.4% (53.8% for 
agricultural products and 95.7% for industrial products) , which will further increase to reach 
96.3% in 2033 ( 84.8% for agricultural produ cts and 100% for industrial products).  
Table A1.3 Japan: Indicators of MFN tariff rates and preferential rates for imports from 
the United Kingdom  
Origin 
of 
goods  Year ALL PRODUCTS  HS chapters 1 -24 HS Chapters 25 -97 
Average applied 
tariff  Share 
of duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of duty -
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 4.8 8.2 40.5 10.7 13.3 17.6 3.0 5.8 47.9 
UK 2021 1.5 11.4 85.4 5.2 12.6 53.8 0.3 8.1 95.7 
2022 1.1 11.0 88.1 4.0 13.2 64.3 0.2 6.0 95.8 
2023 1.1 11.0 88.3 4.0 13.3 65.1 0.2 6.0 95.8 
2024 1.0 10.0 88.3 3.7 12.3 65.1 0.2 5.0 95.8 
2025 0.9 9.8 89.1 3.4 12.0 66.8 0.2 4.6 96.4 
2026 0.8 9.3 89.6 3.1 11.7 68.4 0.1 3.6 96.5 
2027 0.7 8.4 89.7 2.9 10.9 68.7 0.1 2.4 96.5 
2028 0.6 17.6 95.1 2.6 19.5 82.1 0.0 6.5 99.3 
2029 0.6 17.2 95.1 2.5 19.2 82.1 0.0 5.2 99.3 
2030 0.6 17.0 95.2 2.5 19.2 82.3 0.0 3.9 99.3 
2031 0.6 16.7 95.2 2.4 19.2 82.5 0.0 2.6 99.3 
2032 0.6 16.2 95.2 2.4 18.8 82.5 0.0 1.3 99.3 
2033  0.6 22.3 96.3 2.3 22.3 84.8 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates (both MFN and under Agreement) are excluded in the 
computation. For the calculation of averages, specific rates are excluded, and the ad valorem  parts 
of alternate rates are included.  
 Based on the HS 2017 nomenclatu re.  
Source:  WTO estimates based on data provided by Japan and IDB -WTO.  
 
8. Table A1.4 gives an indication of additional market access in Japan for the UK's top 25 global 
exports, which accounted for 34.8% its global exports in 2018 -2020; these corresponded to 82 
lines in Japan's tariff at the nine-digit level (HS 2017).  
9. In 20 21, 46 of these tariff lines already had (MFN) duty-free access to Japan's market. 
Under  the Agreement, the remaining  36 items were duty-free for export from the UK in 2021 . As a 
result , none of the UK's top 25 exports are dutiable in Japan.  WT/REG441/1  
 
- 73 - 
 
  Table A1.4 Japan: Market access opportunities under the agreement for UK's top 25 
global exports   
United Kingdom's top export products  
in 2018 - 2020  Access Conditions to Japan' s import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2021  Duty -
free 
under 
the 
Agree -
ment  
(2021)  
Remain 
dutiable  
Avg. 
MFN 
applied 
rate 
(%) Number of 
lines  
Duty-
free  duti-
able 
710813  Gold, incl. gold plated with platinum, in 
semi-manufactured forms, for non -
monetary purposes  5.6 0.0 2    
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  4.9 0.0 2    
300490  Medicaments consisting of mixed or 
unmixed products for therapeutic or 
prophylactic purposes,  3.2 0.0 4    
880330  Parts of aeroplanes or helicopters, n.e.s.  2.9 0.0 1    
841112  Turbojets of a thrust > 25 kn  2.6 0.0 1    
870323  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, of a cylinder capacity > 1.500 
cm³ but <= 3.000 cm³  2.4 0.0 1    
841191  Parts of turbojets or turbopropellers, n.e.s.  2.1 0.0 1    
870324  Motor cars and other motor vehicles 
principally designed for the transport of<10 
persons, of a cylinder capacity>3.000 cm³  1.7 0.0 1    
220830  Whiskies  1.3 0.0 1    
271012  Light oils and preparations  1.3 1.3 5 11 11  
970110  Paintings, e.g. oil paintings, watercolours 
and pastels, and drawings executed entirely 
by hand  1.3 0.0 1    
870322  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, of a cylinder capacity > 1.000 
cm³ but <= 1.500 cm³  1.2 0.0 1    
711319  Articles of jewellery and parts thereof, of 
precious metal other than silver  1.0 5.3  3 3  
271019  Medium oils and preparations, of petroleum 
or bituminous minerals, not containing 
biodiesel, n.e.s.  1.0 2.2 9 22 22  
870332  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, of a cylinder capacity > 1.500 
cm³ but <= 2.500 cm³  0.7 0.0 1    
300220  Vaccines for human medicine  0.6 0.0 1    
870340  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, of a cylinder capacity > 1.500 
cm³ but <= 2.500 cm³  0.6 0.0 1    
711021  Palladium, unwrought or in powder form  0.6 0.0 1    
300215  Immunological products, for retail sale  0.6 0.0 1    
851762  Machines for the reception, conversion and 
transmission or regeneration of voice, 
images or other data  0.6 0.0 2    
382200  Diagnostic or laboratory reagents on a 
backing, prepared diagnostic or laboratory 
reagents  0.5 0.0 1    
490199  Printed books, brochures and similar printed 
matter  0.5 0.0 1    
870333  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, incl. station wagons and 
racing cars, with only diesel engine of a 
cylinder capacity > 2.500 cm³  0.5 0.0 1    
840890  Compression -ignition internal combustion 
piston engine "diesel or semi -diesel engine"  0.4 0.0 4    WT/REG441/1  
 
- 74 - 
 
  United Kingdom's top export products  
in 2018 - 2020  Access Conditions to Japan' s import 
markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2021  Duty -
free 
under 
the 
Agree -
ment  
(2021)  
Remain 
dutiable  
Avg. 
MFN 
applied 
rate 
(%) Number of 
lines  
Duty-
free  duti-
able 
870899  Parts and accessories, for tractors, motor 
vehicles for the transport of ten or more 
persons  0.4 0.0 2    
 
Total of above  38.4  46 36 36 0 
Note:  Tariff lines subject to in -quota rates (both MFN and under Agreement) are excluded in the 
computation. For the calculation of averages, specific rates are excluded, and the ad valorem  parts 
of alternate rates are included.   
 Based on the HS 2017 nome nclature.  
Source:  WTO estimates based on data from Japan and the UK authorities.   WT/REG441/1  
 
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  ANNEX 2  
SUMMARY OF JAPAN'S SCHEME FOR THE APPLICATION FOR PREFERENTIAL TARIFF TREATMENT 
FOR CERTAIN ORIGINATING GOODS  
1. The table A2.1 below provides detail ed lists of products and tariff rates  of Japan's scheme 
for the application for preferential tariff treatment for certain originating goods indicated as 
"PIC-n", as stipulated in Sub -section 2, Section B or Part 3 of Annex -2. The application of 
preferential tariff treatment those 10 products is condition ed on the submission of the Preferential 
Import Certificate (PIC) prior to requesting import permission for the  originating  goods.  
2. The aggregate quantity of such originating goods for which PICs are made available to the 
importers is calculated as the difference between the aggregate quota quantity of the 
corresponding goods under the EU-Japan EPA  and the confirmed quota quantity that ha s been 
utilized by the importer in that particular year under the EU -Japan EPA .1 In other words, the 
available  quantity for the 10 product s scheduled by Japan is the  surplus TRQ volume not utilised 
by importers from  the EU in the particular  year.2 If there is no surplus, the available quantity for 
the PIC will be zero . 
3. With regard to the applied preferential tariff , five categories  of originating products from the 
UK are subject to  duty-free treatment : mixes and doughs and cake mixes; food preparations made 
primarily of wheat; coffee, tea mixes, food preparations and doughs; food preparations; food 
preparations conta ining cocoa for the preparation of chocolate. For the remaining categorie s, 
Japan  (i) progressively eliminates customs duties within 9 or 14 years  depending on the category 
of product ; or (ii) eliminate s customs duties retaining the right to apply an impor t mark -up in 
accordance, but not exceeding, the amount specified in  Japan's WTO TRQ Schedule .  
Table A2. 1 Japan : Summary of category "PIC -n" Tariff Rate Quotas under the Agreement  
HS tariff line code (description)  Base rate  Preferential Rate  
1st year Final  
PIC-1, Wheat products3    
190410.221, 190420.221  19.2%  0%a  
190430.010, 190490.210, 210690.214  25% 0%a  
PIC-2, Mixes and doughs and cake mixes     
190120.222, 190120.235  23.8%  0%  
190120.232  24% 0%  
190120.243  16% 0%  
PIC-3, Food preparations made primarily of 
wheat     
190190.242  24% 0%  
190190.247  28% 0%  
190190.252  23.8%  0%  
190190.267  16% 0%  
 
1 For further details, please refer to Section 3.1.4 and Annex 2 of the factual presentation for the EU -
Japan EPA (document WT/REG396/1).  
2 In particular, this concerns the following TRQs scheduled by Japan  under the EU -Japan EPA : TRQ -1 
wheat products; TRQ -2 mixes and doughs and cake mixes; TRQ -3 food preparations made primarily of wheat; 
TRQ-8 food preparations of barley; TRQ -11 coffee, tea mixes, food preparations and doughs; TRQ -12 food 
preparations; TRQ -15 food preparations containing more than 50% of su crose and cocoa powder; TRQ -19 food 
preparations containing cocoa; TRQ -20 food preparations containing cocoa (for the preparation of chocolate); 
TRQ-25 cheeses.  
3 PIC-1 is established outside the TRQ set out in Japan's Schedule to the WTO Agreement and 
administered by Japanese authorities as a state trading enterprise using a simultaneous buy -sell (SBS) 
mechanism. The amount of the import mark -up shall not exceed the amount permitted for the goods under 
Japan's Schedule to the WTO Agreement  (note 1(c) of Sub -Section 2 to Section B, Part 3 of Annex 2 -A). WT/REG441/1  
 
- 76 - 
 
  HS tariff line code (description)  Base rate  Preferential Rate  
1st year Final  
PIC-4, Food preparations of barley4    
190120.141, 190190.161, 190490.310 and 
210690.216  25% 0%a  
190420.231,  19.2%  0%a  
PIC-5, Coffee, tea mixes, food preparations 
and doughs     
170290.219  29.8% or 23 yen/kg, 
whichever is the 
greater  0%  
190120.239, 190190.217, 190190.253  23.8%  0%  
190190.248, 210690.251, 210690.271  28% 0%  
210112.110  24% 0%  
210112.246, 210120.246, 210690.281  29.8%  0%  
210690.272  25.5%  0%  
PIC-6, Food preparations     
210690.590  29.8%  0%  
PIC-7, Food preparations containing more 
than 50 per cent of sucrose, and cocoa 
powder     
170113.000, 170114.190,  35.30 yen/kg  0%  
200540.190, 200551.190, 200599.119,  23.8%  0%  
210690.282  76.50yen/kg  0%  
210690.510  29.8%  0%  
190190.219 and 210690.284  29.8%  26.5%  17.9%*  
180610.100  29.8%  25.7%  14.9%*  
PIC-8, Food preparations containing cocoa     
180620.290  21.3% (S)  18.4%  10.7%*  
PIC-9, Food preparations containing cocoa 
(for the preparation of chocolate)     
180620.2905 21.3% (S)  0%  
PIC-10, Cheeses     
040610.020  22.4% (S)  18.2%  0%**  
040610.090, 040640.090 and 040690.090  29.8% (S)  24.2%  0%**  
040620.100 and 040630.000  40% (S)  32.5%  0%**  
Note:  
a:  Duty-free, subject to an import mark -up applied by Japan. The amount of the import mark -up shall 
not exceed the amount permitted for the goods under Japan's Schedule to the WTO Agreement.  
*:  Rate of customs duties at the end of the liberalization period (i.e. from the 9th year and for each 
subsequent year).  
**: Rate of customs duties at the end of the liberalization period (i.e. from the 14th year and for each 
subsequent year).  
(S)  The treatment of originating goods is subject to review by the Parties in the fifth year following the 
date of entry into force of the Agreement or in a year on which the Parties otherwise agree, 
whichever comes first .  
Source:  WTO Secretariat on the basis of the Agreement.  
 
__________  
 
4 PIC-4 is established outside the TRQ set out in Japan's Schedule to the WTO Agreement and 
administered by Japanese authorities  as a state trading enterprise using a SBS mechanism. The amoun t of the 
import mark -up shall not exceed the amount permitted for the goods under Japan's Schedule to the WTO 
Agreement  (note 4(c) of Sub -Section 2 to Section B , Part 3  of Annex 2 -A of the Agreement ). 
5 It is clarified that duty -free treatment is applied, provided that the quantity of such originating goods 
for which the UK -Japan Preferential Import Certificate is issued for each application made by the importer shall 
not exceed the limit of three multiplied by the quantity of the milk powder, specified in the application, 
produced from domestic milk and used by that importer for the production of chocolate in Japan. (Paragraph 
9(a) of Sub -Section 2  to Section B, Part 3, Annex 2 -A).