WT/REG277/2  
 
16 March 2020 
(20-1926) Page: 1/4 
Committee on Regional Trade Agreements  Original: English /Spanish  
 
FREE TRADE AGREEMENT  BETWEEN JAPAN  AND MEMBER STATES OF  THE 
ASSOCIATION OF SOUTH EAST ASIAN NATIONS ( ASEAN)   
(GOODS ) 
QUESTIONS AND REPLIE S 
The following communication, dated 10 March 2020, is being circulated at the request of the 
delegations of  Japan  and ASEAN (Brunei Darussalam, Cambodia, Indonesia, Lao  People's Democratic 
Republic, Malaysia, Myanmar, Philip pines, Singapore, Thailand, and  Viet Nam).  
 
_______________  
 
 
Questions from the delegation of Canada  
 
Liberalization schedules  
 
Indonesia  
 
1.1.  Paragraph 3. 27 states: "Indonesia applied its tariff concessions from 1 March 2018, 
though the rest of the Agreement entered into force for it on 1 March 2010."  
 Considering the Agreement entered into force for Indonesia on 1 March 2010, how 
come Indonesia started the application of its preferential tariff concessions under the 
Agreement at a later date, on 1 March 2018?  
 
 Indonesia notified her legal procedures n ecessary for entry into force of the Agreement in 
January 2010 and, accordingly, the Agreement came into force on 1 March 2010 for Indonesia. This 
is in accordance with Article 79 (Entry into Force) which state that the entry into force is two (2) 
months a fter the notification.  
 
 However, Indonesia had to issue another necessary domestic legal enactment to implement 
its tariff concessions, which was not available at the time of entry into force. The Joint Committee 
of the Agreement agreed that until the leg al enactment was issued, the provisions of Chapters 2 
(Trade in Goods) and 3 (Rules of Origin) of the Agreement are deemed not to be applied for 
Indonesia.   
 
 Indonesia issued the necessary legal enactment on 1 March 2018.  
 
Bilateral safeguards  
 
1.2.  Paragraph 3.71 states: "The measure may not be reapplied to goods which have 
already been subject to a bilateral safeguard, for a period equal to the duration of the 
previous measure or one year, whichever is longer."  
 Could you clarify whether this refers to a mea sure that is ≤ 180 days or greater? 
Note that, Articles 5.5 and 7.5 of the WTO Agreement on Safeguards specify two years. 
The one year waiting period only relates to applying a safeguard measure with a duration 
of 180 or less days as per Article  7.6 (a).  
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   This refers to the period of non-reapplication of AJCEP Safeguard Measure to the same goods 
which have been subject to the AJCEP Safeguard Measures previously. Under the AJCEP, regardless 
of its duration, an AJCEP safeguard measure may not be reapplied to the same good for a period of 
time equal to the duration of the previous measure or one year, whichever is longer, as provided for 
in subparagraph 7(e) of Article 20 (Safeguard measure).  
 
Chapter 7 of the Agreement (Investment), First Protocol amending the AJCEP  
 
1.3.  Paragraph 51.1.1 (Scope a nd Coverage) states that: "This Chapter shall apply to 
measures adopted or maintained by a Party relating to…"  
 Does the chapter apply to measures adopted or maintained by sub -national and 
regional governments or authorities?  
 
1.4.  Paragraph 51.1.3 (Scope and C overage) states: "This Chapter shall not apply to 
measures adopted or maintained by a Party to the extent that they are covered by 
Chapters 6 and 6bis."  
 What happens in the event of an inconsistency between Chapter 7 and a chapter 
other than 6 or 6bis?  
 
1.5.  Sub-paragraph 51.2(a) (Definitions) states that: "covered investment means, with 
respect to a Party, an investment (…)  which, where applicable, has been admitted 
according to its laws, regulations and national policies ." 
 Does this mean that an investment m ade in accordance with law, but not in 
accordance with "national policies", would not be deemed covered by the agreement?  
 
1.6.  Paragraph 51.9.3 (Expropriation and compensation) states: "The compensation shall 
include appropriate interest ." 
 How would appropriateness of the interest be determined? Is it at a commercially 
reasonable rate and accrued from the date of expropriation until the date of payment?  
 
1.7.  Paragraph 51.13.4 (Settlement of Investment Disputes between a Party and an 
Investor of Another Pa rty) states: "A natural person possessing the nationality or 
citizenship of the disputing Party shall not pursue a claim against that Party under this 
Article."  
In case of dual nationality, would an investor who has the citizenship of the 
respondent Party but whose dominant and effective nationality is that of the 
non-disputing Party be barred for using dispute settlement against the respondent?  
 
 These questions will be responded to once the First Protocol to Amend the AJCEP Agreement 
enters into force and  has been notified to the WTO.  
 
Questions from the delegation of the European Union  
 
Provisions on Trade in Goods  
 
Regulatory provisions of the Agreement  
Standards  
 
Sanitary and phytosanitary measures  
 
1.8.  "Paragraph 3.63 : According to Article 42, dispute settlement procedures provided for 
in Chapter  9 are not applicable to SPS matters under Chapter 4."  
 What is the rationale for this provision? How the Parties intend to settle the disputes 
on SPS matters?  
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   Chapter 4 (Sanitary and Phytosanitary Measures) focuses on cooperation among the Parties 
based on the rights and obligations under the WTO SPS Agreement . 
 
 Issues that may arise from the application of SPS measures under this Agreement may be 
addressed through technical discussion and consultations.  
 
 Furthermore, the Sub -Committee on Sanitary and Phytosanitary Measures has been 
established to ensure the effec tive implementation and operation on Sanitary and Phytosanitary 
Measures, which has function among other: undertake science -based consultations to identify and 
address specific issues that may arise from the application of SPS measures and are shared by Ja pan 
and more than one (1) ASEAN Member State which are the Parties.  
 
 Moreover, the Enquiry Points have also been designated by Parties to address reasonable 
enquiries regarding SPS measures and, if appropriate, provide the latter with relevant information . 
 
Technical barriers to trade  
 
1.9.  "Paragraph 3.67: "3.67. <…> The Parties shall also coordinate their undertakings 
with the activities conducted in the bilateral, regional and multilateral context, to avoid 
unnecessary duplication in the field of standards  <…>" 
 Would you please clarify, if the Parties by this provision mean to promote the use of 
international standards?  
 
 The provision referred to in paragraph 3.67 of the Secretariat Report refers to paragraph 4 of 
Article 48 (Sub -Committee on Standards, Technical Regulations and Conformity Assessment 
Procedures). The paragraph intends to avoid unnecessary duplication of the Parties' collective 
undertakings (e.g., cooperation activities) with other activities in different contexts. While it does  
not necessarily specify its scope or subjects, generally speaking, promotion of the use of 
international standards may be covered by this Article, if the Parties agree.  
 
 The Parties  reaffirmed their rights and obligations  relating to standards, technical  regulations 
and conformity assessment procedures under the WTO -TBT Agreement . 
 
Questions from the delegation of Mexico  
 
Rules of origin  
 
1.10.   Paragraph 3.56: On page 31 , paragraph  3.56 states that t he Joint Committee shall, 
upon the date of entry into force of  the Agreement, adopt implementing regulations that 
provide detailed regulations . Could you please provide the web address where these 
regulations can be found?  
 The Implementing Regulations can be accessed through the following websites:  
 
ASEAN:  
https://asean.org/asean -economic -community/free -trade -agreements -with-dialogue -partners  
 
Japan:  
https://www.mofa.go.jp/policy/economy/fta/asean/implement.pdf   
 
Technical barriers to trade  
1.11.   Paragraph 3.66 : What are the main steps the Parties should take to ensure that 
standards, technical regulations and conformity assessment procedures do not create 
unnecessary obstacles to trade in goods?  
 Paragraph 2 of Article 46 set outs po ssible forms of cooperation pursuant to paragraph 1 of 
the Article. Specific steps of cooperation will be agreed by the Parties, as necessary, through 
established institutional arrangements, such as the Sub -Committee on Standards, Technical WT/REG277/2  
 
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  Regulations and  Conformity Assessment Procedures (SC -STRACAP) and the designated Enquiry 
Points.  
 
Competition  
 
1.12.   Paragraph 4.23 : Is cooperation on competition policy -related matters considered 
to cover the provisions required to foster and ensure competition between the Parties?  
 Article 53 (Fields of Economic Cooperation) of the AJCEP Agreement require Parties, on the 
basis of mutual benefit, to explore and undertake economic cooperation in several fields which 
includes competition policy. There are no specific provision s under the AJCEP  Agreement  that require 
parties to foster and ensure competition between Parties; however, Parties can suggest mutually 
beneficial cooperation projects/activities, that may include capacity building and technical 
assistance, albeit subject  to availability of funds . 
 
Economic cooperation  
 
1.13.   Paragraph 4.28 : How will economic cooperation in the fields of information and 
communications technology and competition policy be implemented?  
 Information and communications technology, and competition po licy are among the areas 
identified for economic cooperation activities under Article 53 of the AJCEP Agreement. Concrete 
economic cooperation projects/activities are demand driven and submitted to the Sub -Committee 
on Economic Cooperation for consideratio n, taking into account the benefits both sides can derive 
from such economic cooperation activities, the availability of resources as well as the applicable laws 
and regulations of ASEAN Member States and Japan, as provided in Article 52 (Basic Principles)  and 
Article 54 (Sub -Committee on Economic Cooperation).  
 
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