WT/TPR/M/438/Add. 2 
12 July 2023 
(23-4714) Page: 1/44 
Trade Policy Review Body  
1 and 3 March 2023  Original: English/anglais/inglés  
 
 
  
TRADE POLICY REVIEW  
JAPAN 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Dr. Athalia Lesiba Molokomme (Botswana)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Japan .1 
 
 
Organe d'examen des politiques commerciales  
1 et 3 mars 2023  
EXAMEN DES POLITIQUES COMMERCIALES  
JAPON 
COMPTE RENDU DE LA RÉUNION  
Addendum  
Présidente : S.E.  Dr. Athalia Lesiba Molokomme (Botswana)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Japon .1 
 
 
Órgano de Examen de las Políticas Comerciales  
1 y 3 de marzo de  2023  
EXAMEN DE LAS POLÍTICAS COMERCIALES  
JAPÓN 
ACTA DE LA REUNIÓN  
Addendum  
Presidenta: Excma.  Dr. Athalia Lesiba Molokomme (Botswana)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los  Miembros de la OMC,  así como las respues tas facilitadas por  
Japón .1 
 
 
 
 
 
1 In English only /En anglais seulement/En inglés solamente.  WT/TPR/M/438/Add. 2 
 
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Contents  
1  INDONESIA  ................................ ................................ ................................ ..................  3 
2  PHILIPPINES  ................................ ................................ ................................ .............  13 
3  REPUBLIC OF  KOREA  ................................ ................................ ................................ .. 15 
4  UKRAINE – ADDITIONAL WRITTEN QUESTIONS  ................................ ........................  19 
5  CHINA – FOLLOW -UP QUESTIONS  ................................ ................................ ..............  20 
6  EUROPEAN UNION – FOLLOW UP QUESTIONS  ................................ ............................  39 
7  UNITED STATES – FOLLOW -UP QUESTIONS  ................................ ...............................  42 
 
  WT/TPR/M/438/Add. 2 
 
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This revision contains pending replies from the Japanese authorities . 
1  INDONESIA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
SUMMARY  
Page 9 Para 11  
In October 2020, Japan announced its plans to achieve net zero greenhouse gas emissions by 
2050. Moreover, in April 2021, it announced the goal of reducing emissions by 2030 to 46% from 
its 2013 levels. To this end, a long -term strategy under the Paris Agreement was elaborated in 
2019 and rev ised in 2021 to promote green innovations and finance, and an Environment 
Innovation Strategy in 2020, with action plans for each technology area. Also in 2020, a new 
Green Growth Strategy was published.  
Question  
1. Basel has established principle on clima te-related financial risk to encourage banking sector 
incorporating climate -related financial risk as part of risk mitigation management that need to be 
analyzed. Could Japan kindly elaborate on how is banking related authority incorporating this 
principle  and strategy in its regulation and supervision?  
Response  
In line with the "Principles for the Effective Management and Supervision of Climate -related 
Financial Risks" (issued by the Basel Committee on Banking Supervision in November 2021), the 
JFSA publis hed a discussion paper entitled "Supervisory Guidance on Climate -related Risk 
Management and Client Engagement" in July 2022, following the TPR review period. This paper 
summarizes the JFSA's current approach to climate change. Practices and methods for de aling with 
climate change are still under development, and international discussions are ongoing. Therefore, 
as such practices and methods are established in the future, we believe that they should be 
reviwed as necessary.  
This Discussion Paper sets out th e FSA 's basic approach for supervision and inspection of financial 
institutions in the area of climate change as supervisory guidance, following the recommendations 
in the report of the Expert Panel on Sustainable Finance ( "Building a Financial System that  
Supports a Sustainable Society ") published in June 2021.  
Banks can support clients in addressing climate -related opportunities and risks through 
constructive dialogue ( "engagement ") as part of bank 's continuous support for the clients ' 
mainstream business , thereby strengthening the clients ' business base and the regions ' economic 
foundation, which in turn will lead to profit opportunities and business stability for the banks 
themselves. On the other hand, if climate -related transition and physical risks fa ced by clients 
materialize, banks may need to recognize a risk in their business through damages to the clients ' 
business value. Given the possibility that structural changes of the economy, industry, and society 
in achieving carbon neutrality may affect t he business of a wide range of the banks ' clients, 
including small and medium -sized enterprises (SMEs), it is significantly important how banks can 
encourage these clients to address climate change and whether banks ' clients can build a business 
base resil ient to climate change, in order to ensure the sustainability of banks ' business models.  
1.2 Recent Economic Developments  
1.2.1 Growth and employment  
Page 16 Para 1.5  
Since 2021, Japan's economy has been recovering amid continued strong policy support. However, 
this recovery has been hampered and delayed by several renewed pandemic -related states of 
emergency, other state of emergency -like policy measures to contain the spreading of the virus, 
the appearance of new virus variants, sluggish inter national growth, and additional market 
turbulence caused by the war in Ukraine, all of which restrained consumption and investment in 
different manners. Exports have played a pivotal role in the recovery of Japan's economy.  
Question  
2. Could Japan kindly elaborate more deeply on the role of the banking sector in supporting 
these economic development policies?  
Response  
With future prospects remaining uncertain due to the prolonged impact of the COVID -19 pandemic 
and increasing prices around the world , financial institutions are expected to play a role in WT/TPR/M/438/Add. 2 
 
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supporting the post -COVID -19 growth of the Japanese economy at a time when some business 
operators are still facing severe conditions.  
From this perspective, the JFSA has repeatedly requested financia l institutions to provide supports 
to business operators, including business improvement or transformation support, business 
turnaround support, and support for re -challenge, in addition to prompt financing support.  
Furthermore, the JFSA has taken policy m easures from the perspective of supporting financial 
institutions' efforts to contribute to the recovery and growth of the Japanese economy. For 
example, the amendment of the Banking Act, which came into effect in November 2021,  
- broadens the scope of non financial activities allowed for the subsidiaries of commercial banks in 
such areas as digital transformation, revitalization of local economies and creation of sustainable 
societies and  
- relaxes some regulations related to equity investment.  
Following t hese measures, some banks have established regional trading companies, investment 
subsidiaries for revitalization of local economies, and subsidiaries engaging in new businesses for 
digitalization.  
The JFSA will continue to encourage efforts by financial institutions to contribute to economic 
growth.  
 
1.2.3 Monetary policy, prices, and the exchange rate  
Page 17 Para 1.11  
During the review period, the Bank of Japan continued its policy of quantitative and qualitative 
monetary easing with yield curve contro l to achieve the price stability target of 2% in terms of the 
year-on-year rate of change in the consumer price index. Under its yield curve control, the Bank 
has been targeting a short -term interest rate of -0.1% and a long -term interest rate of around 
0%.8 Inflation pressures remained contained during most of the review period, and well below the 
Bank of Japan's 2% target. Measured by the CPI, inflation rates did not exceed 1% during the 
period under review and were negative in 2021. However, since then i nflation rates picked up, 
following rising international energy prices and the depreciation of the yen, to achieve 2.6% in July 
2022.  
Question  
3. Could Japan share on how effective were the intervention of Bank of Japan in the financial 
sector, particularl y on the transmission of Central Bank Rate to lending rate? Are there any 
obstacles in policy transmission?  
Response  
The policy effects of the "Quantitative and Qualitative Monetary Easing with Yield Curve Control " 
have been transmitted mainly through a de cline in funding costs and favorable conditions in 
financial and capital markets. According to the "Outlook for Economic Activity and Prices (January 
2023) ", banks ' lending rates have been at around historical low levels. In addition, the year -on-
year rate  of increase in the amount outstanding of bank lending has been at around 3%.  
However, because the decline in lending rates has been brought about by reducing banks' lending 
margins, the extent to which a decline in the yield curve will lead to a decline in lending rates 
depends on banks' lending stance.  
Reference:  
Outlook for Economic Activity and Prices (January 2023)  
https://www.boj.or.jp/en/mopo/outlook/gor2301b.pdf  
 
2.2 Trade Policy Fo rmulation and Objectives  
Page 25 Para 2.6  
Japan's trade policy objectives and progress on their realization are laid out in the METI's annual 
White Papers on International Economy and Trade, which are submitted to Cabinet. Their objective 
is to contribute  to the formulation of trade strategies through the analysis of trade -related 
international trends and policies, and to provide the public with the ideas that lay out the basis for 
trade policy and its directions. More detailed trade -related objectives wer e last laid out in the 2018 
White Paper, but still guide Japan's current policy. This Paper underlines the importance of 
developing "free, fair and high -level trade rules", with key trading partners and in international for 
a (including the WTO), as well a s progress in reinforcing economic ties and cooperation with 
emerging economies.  
Question  WT/TPR/M/438/Add. 2 
 
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4. Could Japan explain further whether the white paper submitted as progress report to the 
Cabinet or way forward for next policy that needed to be established by Cabinet? Will the public 
(related stakeholder and interested parties) be given chance to give th eir input on that white 
paper before being submitted to Cabinet?  
Response  
The White Paper on International Economy and Trade contributes to the formation of trade policy 
through analysis of international economic trends and the policies of other countries that affect 
trade. No public comments are solicited prior to distribution to the Cabinet.  
 
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
Page 27 -28 Para 2.11  
Japan is a signatory to the 1979 Agreement on Trade in Civil Aircraft, and a party to the 
plurilateral Agreement on Government Procurement (GPA). It is also a signatory to the Information 
Technology Agreement (ITA), and participated in the ITA expansion negotiations. Japan accepted 
the 2005 Protocol Amending the TRIPS Agreement and the Agreement on Trade Facilitation. Japan 
is an important donor to various WTO technical assistance activities. The authorities indicate that 
the WTO Agreement on Fisheries Subsidies is in the ratification process.  
Question  
5. Indonesia is interested in learning more abou t Japan's domestic ratification process, 
including the steps and authorities involved, as Japan is currently undergoing the ratification 
process of the WTO Agreement on Fisheries Subsidies.  
Response  
The Diet's approval is required for Japan to conclude thi s Agreement. On March 10th, the Cabinet 
submitted the Agreement on Fisheries subsidies to the Diet for approval and it is currently under 
deliberation of the Diet. Upon the approval of the Diet, Japan will deposit its instrument of 
acceptance.  
 
2.4 Investm ent Regime  
2.4.1 Investment framework  
Page 34 Para 2.31  
FDI is generally restricted in sectors such as broadcasting, radio, and telecommunications (Table 
2.5). In broadcasting and radio, investment is reserved for Japanese nationals.  
Question  
6. Telecommunication is growing as it connects other sectors business process, especially 
services sector. Regarding that, could Japan elaborate on the rational of this policy?  
Response  
In Telecommunication sectors, there are no restrictions for telecommunica tions carriers except for 
the Nippon Telegraph and Telephone Corporation (NTT).  
The reason that there are FDI provisions for NTT is as follows:  
In view of the vital public role of NTT which is responsible for ensuring universal services, 
promoting research  on telecommunications technologies and disseminating the results of research, 
it is necessary to secure a stable foundation for company management. In addition, it is necessary 
to prevent national security problems caused by NTT being controlled by foreig n countries.  
 
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.2 Fisheries  
4.1.2.2 Regulatory Development  
Page 108 Para 4.50  
The main laws concerning the fisheries sector include the Fishery Act of 1949 (last amended in 
2022); the Basic Act on Fisheries of 2001 (last amended in 2020); the Fisheries Cooperative 
Association Act (last amended in 2022); the Act to Ensure Sustainable  Aquaculture Production of 
1999 (last amended in 2018); the Act on the Exercise, etc. of Sovereign Rights regarding Fishery, 
etc. in the Exclusive Economic Zone of 1996 (last amended in 2018); the Act on the Protection of 
Fishery Resources of 1951 (last am ended in 2018); and the 2014 Inland Water Fishery Promotion 
Act. Under the Fishery Act, national and prefectural governments have responsibility for WT/TPR/M/438/Add. 2 
 
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appropriate conservation and management of fisheries resources. In principle, fisheries resources 
shall be managed with a goal to achieve the Maximum Sustainable Yield through Total Allowable 
Catch management. Fishers must engage in fisheries management in order to be eligible for some 
government support programmes for the establishment of environmentally and e conomically 
sustainable fisheries.  
Question s 
7. How does Japan ensure that fisheries management has a positive impact on the 
environment, especially with regard to the provision of subsidies?  
Response  
Engagement with fisheries management is one of the cond itions to be eligible for some 
government supports which are aimed at establishing environmentally and economically 
sustainable fisheries.  
8. What is the primary objective of fisheries resource management in Japan? How does Japan's 
approach to fisheries ma nagement align with international best practices and principles?  
Response  
The purpose of resource management in Japan is to ensure the sustainable use of fishery 
resources and to develop fishery productivity. In Japan, under the new Fishery Act, Fisheries 
resources shall be managed with a goal to achieve the Maximum Sustainable Yield (MSY) basically 
through TAC management, and international standard level of stock assessment and management 
have been introduced.  
9. In Japan, who bears the responsibility for the conservation and management of fisheries 
resources? How do national and prefectural governments collaborate to ensure effective 
management of the country's fisheries resources?  
Response  
Under the new Fishery Act, the national and local governments have  the responsibility to take 
necessary measures for the appropriate conservation and management of fisheries resources in 
order to develop fishery productivity. Therefore, in stock assessment and fisheries management, 
the national and local governments coop erate in collecting data, exchanging information, and 
coordinating management operation.  
10. In order to qualify for government support programs aimed at establishing sustainable 
fisheries that are both economically and environmentally viable, what specifi c measures must 
fishers undertake to contribute to the conservation and management of fisheries resources? How is 
compliance with these measures monitored and evaluated?  
Response  
Participation in fisheries management plans is one of the conditions to be el igible for some 
government supports which are aimed at establishing environmentally and economically 
sustainable fisheries. Relevant organizations check the fishers ' participation in the plans.  
11. Within the context of fisheries management in Japan, what is meant by Total Allowable 
Catch management? How has this approach been implemented in Japan, and what results has it 
produced?  
Response  
In Japan, under the new Fishery Act, fisheries resources shall be managed with a goal to achieve 
the Maximum Sustainab le Yield (MSY) basically through TAC management.  
Japan has introduced international standard level of scientific stock assessments and effective 
management methods because it is important to maintain, recover, and appropriately manage the 
resources for tra nsformation of the fisheries industry into a growth industry.  
12. What are the key laws and regulations that govern the fisheries sector in Japan? When were 
these laws last amended, and what were the key changes made? How have these changes 
impacted the ma nagement and conservation of Japan's fisheries resources?  WT/TPR/M/438/Add. 2 
 
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Response  
The Fishery Act which prescribes basic fisheries management system was amended in 2018. This 
amendment includes introduction of TAC system based on the scientific information, revisions of 
fishing licensing and fishing rights system. Through the amendment, fisheries management has 
been facilitated. For instance:  
1) Aiming Expansion of MSY based TAC management species, the number of species subject to 
stock assessments has been increasing,  
2) Species covered by Individual quota system have been increasing  
3) The number of aquaculture fishing right has been increasing  
13. Indonesia notes that Japan issued the Act on Ensuring the Proper Domestic Distribution and 
Importation of Specified Aquatic Animals and Plants, which governs the Catch Documentation 
Scheme (CDS) on specific four species (squid and cuttlefish, Pacific saury, Mackerel, and Sardine) 
on December 2020 and entered into force on December 1, 2022. Could you please provide a 
detailed explanation of these import requirements? Could the government ensure that the 
importer is not burdened by this additional administrative requirement?  
Response  
Japan CDS under the Act aims to prevent the import of fish or fishery products derived fro m 
illegal, unreported and unregulated (IUU) fishing into Japan. The CDS requires importers to submit 
a catch certificate (hereinafter referred to as "CC") and other documents to the Japan Customs at 
the time of import.  
Japan CDS is based on the EU CCscheme, which started in 2010, not to burden importers, etc. The 
CCshall be issued by the competent authority of flag State of the vessel catching the four species 
to certify that they were caught legally.  
Indonesia has alrea dy completed its consultation with Japan about documents including forms of 
CC and started issuing CC.  
Japan appreciates Indonesia 's cooperation on smooth implementation of Japan CDS.  
For detailed information, please go https://www.jfa.maff.go.jp/220614.ht ml. 
4.4.1 Financial services  
4.4.1.1 General background  
Page 117 Para 4.98  
According to the authorities, Japan has a generally proactive attitude towards regulation and 
supervision of cryptocurrencies and digital assets. As at August 2022, there were 31 c rypto 
exchange service providers under the supervision of the FSA. Japan became the first country to 
regulate virtual -currency exchanges in 2017, when the FSA introduced a registration system. The 
Japan Virtual and Crypto Assets Exchange Association (JVCEA ), which has a self -regulatory status 
certified by the FSA, was formed in April 2018.  
Questions  
14. This may not directly related to the paragraph, but we are keen to get more information on 
the development of Fintech ecosystem in Japan at the moment.  
Resp onse  
The fintech sector is very active in Japan as in the other Member countries/jurisdictions. Various 
new services are launched in the fields of payments, banking, securities, insurance and crypto 
assets. The FSA has several measures (e.g., FinTech Suppo rt Desk, FinTech PoC Hub) to support 
them. In addition, the FSA is in close and regular communication with the FinTech Association, in 
which many of FinTech companies and other stakeholders participate.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
3 Multilateral Initiatives  
3.1 WTO  
Page 6 para 3.2  
In the lead up to the successful conclusion of the 12th WTO Ministerial Conference (MC12) in 
Geneva in June 2022, Japan has actively engaged in negotiations on important themes such as 
COVID 19 response, fisheries subsidies negotiations, food security, modern SPS challenges, and WT/TPR/M/438/Add. 2 
 
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the work programme on e -commerce. Looking ahead, Japan will work with like -minded countries, 
based on the outcome of MC12, on rule making for e -commerce, restrictions on trade rest rictions 
on medical suppliers, and WTO reform.  
Questions  
In light of the adoption of the WTO Agreement on Fisheries Subsidies at the 12th Ministerial 
Conference in June 2022, which represents a significant milestone in advancing ocean 
sustainability, Indon esia seeks to understand Japan's perspectives on the following issues:  
15. What is Japan's stance on the Agreement, as outlined in Ministerial Decision No 
WT/MIN(22)/33?  
Response  
The prohibitions of subsidies for IUU fishing (illegal, unreported, and unreg ulated fishing) and the 
prohibition of subsidies provided to overfished stocks without any resource restoration efforts have 
been agreed upon among Members as a whole, which will contribute to the achievement of the 
SDGs. Moreover, this is expected to lead  to global fisheries resource management.  
16. How does Japan view future negotiations related to fisheries subsidies, particularly in 
addressing the issues of overfishing and overcapacity, as well as special and differential 
treatment?  
Response  
Effective disciplines for overcapacity and overfishing and appropriate special and differential 
treatment should be discussed together. Japan will continue to work toward reaching a 
comprehensive agreement.  
6.3 Intellectual property rights  
Page 16 para 6.9  
The Intellectual Property Strategy Headquarters also finalized "The Intellectual Property Strategic 
Program 2022" in June 2022. At the beginning stage of this Program, we organized the basic 
recognition of the current situation in Japan that should be tak en into account concerning IP 
strategies. In the future, important policy issues and measures in promoting IP strategies will be 
summarized in eight priority policies: (…) and (8) Restarting the Cool Japan initiative in 
anticipation of post -COVID. The stea dy implementation of policies based on this plan is required in 
the future in order to transform our society into an economic society where new players including 
individuals with a passion for new idea creation and innovation in Japan can fully utilize soc iety's 
IP. 
Questions  
17. What are the measures or strategies that will be implemented to support Japan's intellectual 
property under the Cool Japan initiative? Please also describe the sectors that the initiative will 
cover.  
Response  
Based on the Cool Japa n Strategy, the public and private sectors are working together to discover, 
refine, brand, and disseminate the attractiveness of Japan.  
Also, Cool Japan refers to "Japanese attractions that are perceived as cool by foreigners", and 
includes diverse fields  such as food, animation, pop culture, traditional crafts, and nature.  
In addition, the government is working to combat pirated copyright contents strengthening 
cooperation with the private sector.  
18. According to Secretariat Report footnote 180, the government restructured its "Cool Japan" 
strategy to revitalize the food service, tourism, culture and the arts, and events and entertainment 
sectors. What is the distinction between the previous strategy? Is the "new" Cool Japan strategy 
intended to help the aforementioned sectors recover from the COVID -19 pandemic?  
Response  
The "Restructuring of Cool Japan Strategy" is a key priority indicated for promoting Cool Japan 
initiatives in the COVID -19 disaster. The objectives of the Cool Japan strategy, such as  increasing 
the number of foreigners who are fans of Japan, and the general theory of strengthening 
cooperation, remain unchanged. However, in light of the social changes that occurred after the 
disaster, new emphasis will be placed on matters such as "res ponding to changing values", 
"promoting a virtuous cycle between exports and inbound travel", and "building new business WT/TPR/M/438/Add. 2 
 
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models utilizing digital technology". In addition, the program also states that the ability to 
disseminate information and the foundati on to support Cool Japan will be strengthened.  
 
PART III: GENERAL QUESTIONS  
 
Game Development in Indonesia  
19. How could an Indonesian game developer obtain a Game Development Kit from Japan? 
Please describe any requirements and preferences, as well as the  measures in place.  
Response  
We are not sure what the term "Game Development Kit" means, and would like to ask for 
clarification.  
 
Import Duty for Canned Tuna  
20. Indonesia understands that Japan has been unable to provide tariff elimination (0%) on four 
tariff posts for canned tuna products, namely HS 160414010, HS 160414091, HS 160414092, and 
HS 160414099, because Japan considers Indonesia's fisheries management unsustainable, despite 
Indonesia's compliance with international organization provisions (WCPF C and IOTC).  
Response  
There have been separate negotiations with Indonesia and Thailand as regards the EPAs, in which 
the whole balance of requests and offers as well as sensitivities differ. For example, the total 
amou nt of Thailand 's catch of tuna is only 1 % of Indonesia and a large portion of its catch is 
taken from the Indian ocean, where there is no direct linkage of fishery resources to the waters 
around Japan. In addition, Indonesia has declared that WCPFC (Western and Central Pacific 
Fisheries Commission) rules do not apply to Indonesia 's archipelagic waters, thereby causing 
concerns over the increasing catches of tuna in Indonesia 's waters. Furthermore, the Annex 2 
(Product Specific Rules) to Japan -Thailand EPA prescribes the rule of origin for HS1604.14 that the 
products using non -originating materials are eligible for the preferential treatment only if the non -
originating material is taken by the authorized fishing vessels listed on the IOTC (Indian Ocean 
Tuna Commission) rec ord. In other words, the rules of origin for HS1604.14 of the Japan -Thailand 
EPA does NOT offer the preferential tariff to non -originating tunas caught in the WCPFC (Western 
and Central Pacific Fisheries Commission) Convention area. Under these circumstanc es, it would be 
inappropriate to assume the same treatment of specific tariff lines between the EPAs.  
 
21. However, Indonesia needs to better understand the basis for Japan's government providing 
0% tariff elimination on such products to Thailand, despite the fact that Thailand is not a member 
of the WCPFC. It would be greatly appreciated if there was a comparison matrix or description of 
the two countries.  
Response:  
Please refer to the answer for the question above.  
 
Paper and Wood Furniture  
22. Please con firm and explain Japanese prefectural regulations governing the import of paper 
and wood furniture.  
Response:  
The Foreign Exchange and Foreign Trade Law provides regulations regarding CITES, however, 
prefectures do not regulate on this matter.  
 
23. Are th e prefectural regulations in line with central government regulations, and has the 
government ensured that the regulation will not create future trade barriers?  
Response:  
Please refer to the answer for the question above.  
 
Manufacture  
24. Please confirm wh ether there are any measures or programs in place by the Japanese 
government that govern the purchase of transportation raw materials from domestic 
manufacturers. If so, please provide a brief description.  WT/TPR/M/438/Add. 2 
 
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Response:  
We are not sure what the term "transport ation raw materials" means, and would like to ask for 
clarification.  
25. As we all know, Expo 2025, an upcoming World Expo organized and sanctioned by the 
Bureau International des Expositions (BIE), will be held in Osaka, Japan. The Government of Japan 
has the right to regulate importation products in order to ensure that imported products meet 
specific safety, quality, and efficacy standards. How will the government manage the World Expo 
2025 implementation if pavilion materials imported by tenant s are prohibited or restricted 
products?  
Response  
The import of prohibited or restricted materials to Japan are indeed not allowed.  However, 
materials can be imported and used for pavilions if they meet the criteria set forth under Japanese 
rules.  Regardin g the use of specific materials and how the criteria can be met, we recommend to 
consult with the liaison officer assigned by the Japan Association for the 2025 World Exposition.  
26. Are there any specific criteria for material import exemption for World E xpo 2025? Please 
also describe the procedure.  
Response  
Please refer to the answer for the question above.  
ADDITIONAL WRITTEN QUESTIONS  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Trade Policies and Practices by Measure  
Page 79 Para 3.163  
According to OECD analysis of WTO international trade statistics, charges for the use of IP not 
included elsewhere (i.e. royalties and licensing revenue) constituted 23% of Japan's services 
export s in 2019, significantly higher than the OECD average of 9%.  
Question  
1. Could Japan elaborate in what kind of Intellectual Property (IP) not included elsewhere that 
contribute to Japan 's services export in 2019?  
Response  
In Japan's BOP statistics, "Charge s for the use of intellectual property n.i.e." is divided into 
"charges for the use of industrial property n.i.e." and "charges for the use of copyrights n.i.e."  
"Charges for the use of industrial property n.i.e. " covers (1) charges for the use of industri al 
property rights such as patents, utility model rights, design rights, and trademarks; (2) charges 
for the use of know -how or technical information; (3) various expenses related to franchising; and 
(4) receipts and payments for grants of distribution rig hts. Also included are technical assistance 
or management fees related to such rights.  
Examples include (1) royalties received by automobile manufacturers from their overseas 
production affiliates based on the number of vehicles produced, and (2) receipts  and payments 
associated with the licensing of the development and sales of pharmaceuticals (such as upfront 
payments and royalties based on sales).  
"Charges for the use of copyrights n.i.e. " covers charges for licenses to reproduce and distribute -- 
regardless of whether or not compensation is received -- copyrighted materials such as computer 
software, music, video recordings, characters, as well as literary, academic, and artistic works.  
Examples include (1) license fees paid by a computer manufacturer to the copyright holder for the 
right to install software, such as an operating system or an application, in computers that the 
manufacturer produces; (2) license fees paid by an entity to a copyright holder for the use of video 
or music to be sold, leased, or distributed in the form of disks or files; (3) license fees for the use 
of characters; (4) charges for screening and broadcasting rights for films; (5) charges for the 
distribution right s for films; and (6) license fees for releasing films on video.  
For your information, please refer to the Bank of Japan's website page, which describes the detail 
of them as well : 
https://www.boj.or.jp/en/statistics/br/bop_06/index.htm  WT/TPR/M/438/Add. 2 
 
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In Japan, "Charges for the use of industrial property n.i.e. " accounts for a large portion of  
"Charges for the use of intellectual property n.i.e.".  
 
Trade and Investment Regimes  
Page 25 Para 2.3  
Japan's  policy objectives place great emphasis on national and economic security issues. The new 
Act for the Promotion of Ensuring National Security through Integrated Implementation of 
Economic Measures (Economic Security Promotion Act), adopted in May 2022, pro vides for a 
framework for ensuring a stable supply of "key products" and "essential infrastructure services", 
enhancing development of "advanced critical technologies" (Article 2.2), and preventing disclosure 
or divulgence of inventions that might be detri mental to national security through patent 
procedures. As at October 2022, implementing regulations were under preparation.  
Question  
2. Could Japan elaborate more regarding what are services that included as essential 
infrastructure services?  
Response  
"Specified essential infrastructure services " are services that are provided by "Specified essential 
infrastructure business ", which are specified by Cabinet Order among the 14 businesses that are 
listed in Article 50, paragraph 1 of the Act.  
The 14 busine sses are: Electricity, Gas, Oil, Water works, Railway, Truck transport, International 
maritime cargo, Aviation, Airports, Telecommunications, Broadcasting, Postal services, Financial 
services and Credit cards.  
Financial Services  
Page 117 Para 4.94  
Japan's  financial services sector is relatively open. There are no foreign equity restrictions. Criteria 
to obtain a licence are the same for foreign and domestic companies. There are no nationality or 
residency requirements for members of the board of directors.  No banking services are reserved 
for domestic suppliers. Commercial presence is required for lending and deposit -taking activities.  
Question  
3. Is there any minimum capital requirement for foreign services supplier especially financial 
services that want to establish a representative office in Japan?  
Response  
Representative offices are established in Japan by foreign banks and other financial service 
suppliers for the purpose of gathering information about their operations, etc. There is no 
minimum capital  requirement for the establishment of representative offices.  
Maritime Transport  
Page 122 Para 4.123  
The applied market access regime remained unchanged. Japan does not discriminate against 
foreign participation in international maritime services and accor ds national treatment.  
Question  
4. It is written that Japan does not discriminate against foreign participation in international 
maritime services, how are cabotage principle being conducted in Japan? and what are certain 
conditions that can exclude foreig n ships from the Japan 's cabotage scheme?  
Response  
Cabotage is a scheme that limits domestic maritime transport to Japanese -flag vessels, and is 
stipulated in Article 3 of the Ship Law. Therefore, foreign -flag vessels are in principle excluded 
from domestic maritime transport.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Foreign direct investment  
Page 5 para 2.10  WT/TPR/M/438/Add. 2 
 
- 12 - 
 
The Japanese Government also works on the enhanced promotion of inward FDI along with the 
"Main Policy Agenda for Promoting Foreign Direct Investment in Japan" adopted in April 2022 at 
the Working Group for Creating Medium and Long -term Strategy to Promote Foreign Direct 
Investment in Japan. The Agenda prioritizes strategic initiatives based on the Strategy ("Strategy 
for Promoting For eign Direct Investment in Japan") and upholds three pillars: (i) Strengthening 
"investment in human capital" through inward FDI; (ii) Promotion of DX, GX, and start -ups 
through inward FDI; (iii) Improving the living environment of foreign nationals to prom ote FDI in 
Japan.  
Questions  
5. We see that Japan has some programs to promote inward FDI. What are services sectors 
that become the priority for the development of FDI in Japan, and why are these sectors become 
Government 's priority?  
Response  
As for concre te measures, please refer to English -translated version of "Strategy for Promoting 
Foreign Direct Investment in Japan " and "Main Policy Agenda for Promoting Foreign Direct 
Investment in Japan " from the following link.  
(Strategy for Promoting Foreign Direct  Investment in Japan)  
http://www.invest -japan.go.jp/documents/pdf/en_chuchoki.pdf  
(Main Policy Agenda for Promoting Foreign Direct Investment in Japan)  
http://www.invest -japan.go.jp/committee/jutenjikou_en.pdf  
  WT/TPR/M/438/Add. 2 
 
- 13 - 
 
2  PHILIPPINES  
PART III: OTHER QUESTIONS  
1. Could Japan expound on the criteria it uses (if any), particularly non -price factors 
such as the life cycle costing analysis, in the award of contracts to ensure the 
government 's best possible purchase of goods and services?  
 
Response  
In accordance with domestic laws and regulations, when a tender is set to take place, contract 
officers of the procuring entities will select the participant who submitted the offer with a highest 
or lowest price within the range of pre -determined target price as a successful supplier. If there 
are difficulties in doing so due to the nature and the pur pose of a contract, procuring entities may 
conclude the contract with suppliers who offer the most favorable prices and other non -price 
terms.  
In this context, the criteria used by procuring entities is not one size fits all and therefore it is hard 
to ge neralize. However, at least, procuring entities adopting the overall -greatest -value evaluation 
methodology can be regarded as carrying out procurements in a transparent and impartial manner 
because the evaluation criteria is written in the notice of intend ed procurement or tender 
documentation in accordance with the GPA.  
 
2. Could Japan explain how it determines government procurements practices 
which undermine competition, particularly those involving conflict of interest or 
beneficial ownership, the corresponding penalties imposed, and how it addresses 
these issues to ensure that government procurement practices adhere to 
principles like transparency, accountability, and integrity?  
 
Response  
If procuring entities determine that a supplier has obstruct ed the fair implementation of a tender 
or has hindered a fair price from being reached or colluded with others to obtain an unlawful profit, 
the procuring entities may prevent the supplier from participating in procurements. This is 
stipulated in "Cabinet Order on Budgets, the Settlement of Accounts, and Accounting ". In addition, 
"Act on the Responsibility of Government Employees who Execute the Budget " stipulates the duties 
and responsibilities of contract officers of procuring entities. Thus, Japan ensure s competition and 
transparency in government procurement.  
 
3. What is Japan 's policy/measure to ensure that the use of genetic resources 
sourced from other country/ies for commercial purposes in Japan is compliant to 
the Nagoya Protocol on Access and Benefit Sharing of Genetic Resources and 
Associated Traditional Knowledge?  
 
Response  
In order to ensure that the use of genetic resources sourced from other country/ies for commercial 
purposes is compliant with the Nagoya Protocol, Japan has been enforcing the Gui delines on 
Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from Their 
Utilization since 18 May 2017.  
 
4. What are the updates with regard to Japan 's Agricultural Policy reform during the 
assessment period? What are the changes in terms of its level of support to 
agriculture, particularly on the Producer Support Estimate (PSE) in terms of 
share to gross farms receipts? What is the Total Support Estimate (TSE) as a 
percentage share to agriculture? Is Market Price Support ( MPS) still the main 
element of PSE? What products are covered by border measures?  
 
Response  
As described in the Secretariat 's report, the revision to the Basi Plan for Food, Agriculture, and 
Rural Areas, the adoption of the Strategy to Realize Export Expan sion of Agriculture, Forestry and 
Fishery and Food Products, and the adoption of the Strategy for Sustainable Food System are the 
main agricultural policy developments during the review period.  
Please see page 388 and Figure 17.1 in "Agricultural Policy Mo nitoring and Evaluation 2022" for a 
trend in PSE, TSE and MPS:  
https://read.oecd -ilibrary.org/agriculture -and-food/agricultural -policy -monitoring -and-evaluation -
2022_7f4542bf -en#page390 . WT/TPR/M/438/Add. 2 
 
- 14 - 
 
   
Please see page 13 in the cookbook, which is downloadable on the OECD web page:  
https://www.oecd.org/agriculture/topics/agricultural -policy -monitoring -and-evaluation/  
(Explore the data > Country data > Japan > Definitions and sources)  
 
5. The Forest and Forestry Basic Acts direct Japan 's Forestry Agency (FA) to update 
its Forest and Forestry Basic Plan every five years. FA published the current Basic 
Plan in May 2016. On 26 April 2021, FA released the draft 2021 Basic Plan and 
the associated draft National Forest Plan for public comments. What are the 
updates on the Basic Plan regardi ng its finalization? What are the main features 
of the plan in terms of improvements to forest management to support Japan 's 
goal of achieving net zero greenhouse gas emission by 2050?  
 
Response  
The new Forest and Forestry Basic Plan was approved by the Ca binet in June 2021. The five key 
points are as follows,  
 
-Appropriate management and use of forest resources  
-Development of initiatives for "New forestry " 
-Strengthening the competitiveness of the wood industry  
-Creation of the "Second forests " in urban areas that means increasing buildings with wood  
-Creation of a new value for rural communities in hilly and mountainous areas  
 
These five measures will contribute to achieving carbon neutrality by 2050 through the cyclical use 
–"cutting, using an d planting "– of Japan 's mature planted forest resources.  WT/TPR/M/438/Add. 2 
 
- 15 - 
 
3  REPUBLIC OF KOREA  
PART I: Questions Regarding the Secretariat Report  
 
Page 28(Para 2.14 )  
 
2.14. Since January 2020, Japan has been 
involved in two new dispute settlement 
cases as a complainant, against the 
Republic of Korea (DS594: Korea – 
Measures Affecting Trade in Commercial 
Vessels (second complaint)) and against 
China (DS601: China – Anti-Dumping 
Measures on Stainless Steel Products from 
Japan ). It has been involved in one case 
as respondent over this period (DS590: 
Japan – Measures Related to the 
Exportation of Products and Technology to 
Korea), and in eight cases as a third party.  Question 1  
Could Japan explain the reason why it still 
maintains its export restriction measures o n the 
three semi -conductor related materials 
(fluorinated polyimide, resist and hydrogen 
fluoride),  despite the situation where  the Korean 
government has long been insisting that it has 
fulfilled the requirements the Japanese 
government  suggested earlier a s the preconditions 
for lifting its measures?  
 
Response  
In light of A.(i) of Annex 3 of the WTO Agreement 
and for the sake of credibility of TPR mechanism, 
taking into account Korea 's submission of a 
request for the establishment of a WTO panel on 
18 June , 2020, and the subsequent establishment 
of a WTO panel on 29 July 2020 concerning the 
issues that appear to be closely related to the 
questions posed in this process, Japan would like 
to refrain from addressing the issue within the 
Trade Policy Review pro cess and answering 
Question1.  
(note) The matter at question has been discussed 
between Japan and Korea at the Export Control 
Policy Dialogue and other forms of 
communications.  
Page 109 (Para 4.64)  
The 2021 SEP indicates that the 
Government will make efforts towards 
decarbonizing innovations through the 
Green Innovation Fund for the 
enhancement of competitiveness in 
Japan's industries. JPY 2 trillion has been 
entrusted to the New Energy and Industry 
Technology Development Organization 
(NEDO) for the us e of the Government.  
The Fund targets projects relating to 
energy, transport and manufacture, 
and households and offices , and it 
supports them continuously from research 
and development to implementation 
stages for up to 10 years. The Fund also 
expects to support small -scale projects 
that encourage the participation of SMEs 
and start -ups. The 2021 SEP states that, 
towards 2030, the Government needs to 
mobilize all policies in order to further 
pursue the major principles of 3E+S, 
which has been th e major premise of 
energy policy(i.e. ensuring a stable and 
cost-effective energy supply and 
addressing the issue of climate change, on 
the premise of ensuring safety). The 
Government's support measures and 
initiatives to achieve the goals set in the 
SEP a re being discussed in each sector.  Question 3  
Could Japan elaborate the background of the 
Green Innovation Fund and its specific goals 
targeted to projects relating to energy, transport 
and manufacture, and households and offices?  
 
Response  
"Back Ground"  
October 2020, at a special session of the Diet, 
former Prime Minister Suga declared that "Japan 
will seek to achieve a carbon -neutral, zero carbon 
society by 2050. " 
This policy speech provided a launching pad for 
this fund initiative that aims to support co mpanies 
that tackle ambitious R&D and social 
implementation challenge, which potentially 
contribute to the reduction of greenhouse gas 
emissions.  
METI and related ministry  worked together to 
formulate the Green Growth Strategy in December 
2020 as an indust rial policy to establish a positive 
growth cycle involving the economy and the 
environment.  
In the Green Growth Strategy, we have selected 
14 major fields that are expected to grow toward 
2050. The Green Innovation Fund was established 
as a policy tool to  encourage companies to take on 
the challenge of innovative technologies that will 
contribute to carbon neutrality by 2050.  
 
"Specific goals"  WT/TPR/M/438/Add. 2 
 
- 16 - 
 
The Green Innovation Fund aims to achieve both 
economic growth and environmental goals by 
supporting innovative technologies that are the 
key to achieving carbon neutrality in 2050. This  
fund continuously from research and development 
through their social implementation.  
PART II: Questions Regarding the Government Report   
Page 5 (Para 2.1.5 -6) 
 
2.5. With the rise of protectionist 
movements including trade -restrictive 
measures linked to the COVID -19 pandemic 
and a heightened perception of risk 
associated with supply chain disruptions, 
Japan welcomes the political commitments 
made at international fora such as G7, G20, 
OECD, and APEC to address these issues. 
Japan is strengthening cooperation with 
like-minded countries to ensure more 
diversified and stable supply sources 
including the dimension of economic 
security, while keeping in mind the 
mainten ance and expansion of free and fair 
economic zones and consistency with 
existing international laws. In this context, 
Japan fully supports the WTO's peer review 
system of Trade Policy Review, which aims 
at curbing protectionist measures by 
achieving greate r transparency in and 
understanding of Member countries' trade 
policies and practices.  
 
2.6. As the holder of the G7 Presidency in 
2023, Japan will host the G7 Summit in 
Hiroshima and the G7 Trade Ministers' 
Meeting in Osaka to lead the discussion on 
trade issues.  Question 4  
Korea has been participating in major multilateral 
fora including APEC, G20 and OECD with Japan, 
and we think Japan has shown impressive 
contribution and has been taking leading role in 
these fora, especially with regard to discussions 
on global trade and investment. On which 
agenda will Japan focus its policy effort this year 
in APEC, G20 and OECD?  
More specifically, as you mentioned 
“strengthening cooperation with like -minded 
countries to ensure more diversified and stable 
supply sources including the dimension of 
economic security” with “a heightened perception 
of risk associated with supply chain disruptions”, 
would there be any specific form or direction of 
“multilateral supply chain cooperation” that 
Japan has in mind?  
 
Response  
We are very pleased that you mentioned Japan’s 
contribution to APEC, G20 and OECD. While the 
COVID -19 pandemic and Russia’s aggression 
against Ukraine have slowed the global economic 
recovery and made its outlook uncertain, it is 
now more importan t than ever to work towards 
promoting free and fair trade and investment.  
 
In the G20, especially in the G20 Trade and 
investment Ministerial Meeting, G20 members 
should work together and aim for giving political 
momentum towards the MC13 in order to 
maint ain and strengthen the rules -based, free 
and fair multilateral trading system. Japan, as a 
G7 presidency, is going to work closely with G20. 
With regard to the WTO reform, Japan is going to 
make best effort to progress with a view to 
having a fully and wel l-functioning DS system by 
2024. Also, it is necessary to continue to make a 
commitment to ensure level playing field among 
G20 members. Japan shares the importance of 
enhancing resilience of GVCs, an agenda focused 
by the India's Presidency.  
In the APEC,  Japan supports the 2023 APEC 
Theme "Creating a Resilient and Sustainable 
Future for All" and Policy Priorities 
"Interconnected, Innovative, Inclusive." Japan 
will contribute to these priorities through the 
promotion of APEC project -based cooperation. 
Specifically, we will encourage the APEC 
members to deepen discussions in areas such as 
the promotion of a free, open and fair trade and 
investment environment, the Data Free Flow with WT/TPR/M/438/Add. 2 
 
- 17 - 
 
Trust (DFFT), supply chain resilience, regional 
economic integration throug h Free Trade Area of 
the Asia -Pacific (FTAAP), women's empowerment 
and energy transitions to address climate change 
and any other issues.  
In the OECD, Japan mainly attaches importance 
to; (1) maintaining and strengthening a free, 
open and rule -based multil ateral free trade 
system, (2) outreach of quality rules and 
standards and of the OECD to Asia, (3) Services 
Trade Restrictiveness index (STRI), (4) digital 
trade, (5) ensuring level playing field that forms 
the basis of free trade.  
Japan believes that prom oting free and fair trade 
and investment, through these fora, contributes 
to enhancing resilience of our supply chains.  
 
Japan is working to strengthen the production 
capabilities and diversify the supply sources of 
critical products and will work with lik e-minded 
countries. The specific form and direction of 
cooperation will vary depending on the individual 
material.  
Page 4 (Para 1.1.2)  
 
1.2. Among the structural challenges, the 
Japanese economy has long been facing a 
prolonged low birth rate and an aging 
population. In order to sustain and enhance 
domestic market demands, the virtuous 
cycle from income to spending, coupled with 
increasing  wages to generate private 
consumption, is becoming a key factor. As a 
means to create such virtuous cycle, it is 
important to improve productivity of limited 
human resources through innovation and 
human -capital investment.  Question 5  
Low birth rate and a n aging population is one of 
the major structural challenges that Korea also 
has been facing. Could Japan share its policies 
designed as countermeasures to this challenge, 
aiming at improving productivity of limited 
human resources through innovation and h uman -
capital investment? Also, please provide its/their 
effect on global trade and investment.  
 
Response  
In Japan, based on the Economic measures to 
overcome new coronavirus infections and to 
carve out a new era (Cabinet decision of 19 
November 2021), a th ree-year package of 400 
billion JPY was established to drastically 
strengthen investment in 'human resources'.  
 
In the 2022 budget, Japan has made efforts to 
(i) strengthen human resources development to 
support growing fields such as digital technology, 
(ii) promote the career development of non -
regular workers, (iii) promote the lifelong 
exercise of abilities such as recurrent education, 
and (iv) support the smoothing of labour 
transition to growing fields and others.  
 
Furthermore, the package of measures was 
expanded to 1 trillion JPY over five years by the 
Comprehensive Economic Measures to Overcome 
Rising Prices and Realize Economic Revival 
(Cabinet decision of 28 October 2022). 
Specifically, based on the economic measures, 
the package of measur es has been expanded in 
three main areas: (i) facilitation of labour 
mobility between enterprises and industries; (ii) 
support for changing jobs by incumbents and 
others in order to achieve career advancement; 
and (iii) support for the reskilling of worker s. WT/TPR/M/438/Add. 2 
 
- 18 - 
 
 
As stated in the Grand Design and Action Plan for 
a New Form of Capitalism which was set out in 
June 2022, the Kishida administration heavily 
focuses on human -capital investment as one of 
the most priority areas for the Japanese economy 
to take back to  sustainable growth path led by 
the private sector.  
  WT/TPR/M/438/Add. 2 
 
- 19 - 
 
4  UKRAINE – ADDITIONAL WRITTEN QUESTIONS  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/438)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Other charges affecting imports  
Page 48 (Para 3.38)  
The Report informs that Japan levies a consumption tax ( value added tax ) of 10% on goods 
imported into or manufactured in Japan and a reduced rate (8%) on a list of goods.  
 
Question  
1. Could Japan, plea se, clarify if there is reimbursement (refund) of paid VAT amounts from the 
budget?  
 
Response  
We do not necessarily understand what "reimbursement (refund) of paid VAT amounts from the 
budget " indicates, but when the amount of consumption tax on taxable sales is lower than that on 
taxable purchases, you may get tax refund.  
 
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
3.3.1.1 Taxation and tax incentives  
Page 58 (Para 3.88)  
The Report informs that Japan`s taxes are classified into national, prefectural, and municipal 
taxes.  
 
Question  
2. Would Japan kindly inform about Income Tax particularities regarding platform operators2, in 
particular if there are any specifics of their taxation, reporting, and control over the correctness of 
data on revenues provided by such operators and whether single register of such operators is 
maintained ? 
 
Response  
We do not understand what you would like to indicate because each term in your  question has 
multiple meanings. If you imagine that we have a particular income tax that is imposed only on 
"platform operators ", we do not have such kind of tax.  
 
3.3.1.2 Tax incentives  
Page 59 (Para 3.90)  
The Report informs about "loan schemes " that together with grants and tax incentives are 
available for foreign and domestic companies as support to production and trade.  
 
Question  
3. Would Japan kindly provide definition of the term "loan schemes " and exp lain the difference 
between tax incentives and such loan schemes?  
 
Response  
Upon checking with the relevant ministries, there are no "loan schemes that together with grants 
and tax incentives are available to both foreign and domestic companies as support to production 
and trade", while tax incentives are available as written in the Report by the Secretariat. There is 
no common general definition determined by the Japanese government for the term "tax 
incentives", as utilized in the Report by the Secretaria t, and its definition varies depending on each 
case. 
  
 
2 By “platform operator ” we mean digital platform operating as web -application/page in the Internet, 
where sellers can receive income s due to publis hing of appropriate information.  WT/TPR/M/438/Add. 2 
 
- 20 - 
 
5  CHINA – FOLLOW -UP QUESTIONS  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Page 9, Para. 10  
Japan's policy objectives also place great emphasis on national and economic security issues. The 
new Act for the Promotion of Ensuring National Security through Integrated Implementation of 
Economic Measures, adopted in May 2022, provides a framework for ensuring a stable supply of 
key products and essential infrastructure services, enhancing development of advanced critical 
technologies, and preventing disclosure or divulgence of inventions that might be detrimental to 
national security through patent procedures.  
Questions  
1.Will Japan exert influence on other countries through export control or other mea sures in 
accordance with the Act for the Promotion of Ensuring National Security through Integrated 
Implementation of Economic Measures? Has Japan provided an interpretation of the Act for foreign 
stakeholders likely to be affected by it, or will Japan do so? 
Response  
The Act for the Promotion of Ensuring National Security through Integrated Implementation of 
Economic Measures does not contain export control  measures nor measures aiming to exert 
influence  on specific countries.  
The Act is implemented through enforcemen t order, basic policy, guiding principles etc, which are 
decided and made public after the public comment procedure in which foreign stakeholders may 
participate.  
How to make sure cooperation with Japan in terms of technology, standards, laws and regulatio n 
will not be adversely affected by the Act, both now and in the future?  
Response  
Japan's economic security measures including the Act are not designed with any particular country 
in mind.  
Page 9, Para. 11  
To this end, a long -term strategy under the Paris Agreement was elaborated in 2019 and revised 
in 2021 to promote green innovations and finance, and an Environment Innovation Strategy in 
2020, with action plans for each technology area. Also in 2020, a new  Green Growth Strategy was 
published.  
Question  
3. Will revisions of standards involved in the Green Growth Strategy produce a possible effect on 
trade? How will Japan make sure such revisions do not constitute trade -restrictive measures or 
requirements?  
Response  
Japan will make sure that the revision of standards will be conducted in a WTO consistent manner 
to avoid creating unnecessary obstacles to international trade.  
Page 10, Para.21  
Domestic support to production and trade is offered to foreign and dom estic companies through 
grants, tax incentives, and loan schemes. The objective of the support is to encourage wage hikes, 
capital investments, and research and development, as well as to support SMEs and the 
agriculture and fisheries sectors. In June 2021 , Japan notified a list of 53 specific subsidy 
programmes to the WTO's Committee on Subsidies and Countervailing Measures; the list includes 
both old and new schemes with different objectives mainly to support industry, finance, and 
agriculture, and to str engthen and stimulate the domestic economy.  WT/TPR/M/438/Add. 2 
 
- 21 - 
 
Question  
4. What are the specific contents of the above -mentioned support Japan provides for the fisheries 
sector, foreign and domestic fisheries businesses in particular (by increasing capital investment, 
promot ing research and development and offering subsidies among others)? Will the support cover 
Japan's offshore fishing and distant -water fishing?   
Response  
The supports include development and adaptation of new technologies and conservation of fishing 
grounds,  establishment of environmentally and economically sustainable fisheries, and regional 
development for through fisheries. Offshore fishing and distant -water fishing are also eligible for 
some supports.  
Page 10, Para.22  
During the review period, Japan took measures regarding regulations on vehicle safety and 
environmental protection; a few amendments were also made to some of laws and regulations 
governing label ing requirements concerning, inter alia , food, genetically modified products, 
household goods, and tobacco.  
Question  
5. Do amendments to laws and regulations governing labeling requirements concerning food, 
genetically modified products, household goods and tobacco involve adjustment of the standards?  
Response  
1. Food  
Labeling requirements of  food (including genetically modified products) are provided in the "Food 
Labeling Act " and the "Food Labeling Standards ". The "Food Labeling Standards " is a Cabinet 
Office Ordinance that is based on the "Food Labeling Act ", and it provides the concrete ru les of 
food labeling. We also have some administrative notifications that shows detailed interpretation of 
these rules. When we amend the food labeling rules, we review these laws and documents as a 
whole.  
2. Genetically modified products  
3. Household goods  
When the law is amended, the standards may or may not be revised. In addition, the standards 
may be revised without amending the law.  
4. Tobacco  
The amendment of Ministerial Order for Tobacco Business Act in relation to health warnings and 
messages is a revision of the technical regulation, so Japan Tobacco and importers must comply. 
This amendment complies with FCTC Article 11. There is no standar d for tobacco label ing. 
Page 11, Para. 25  
During the review period, the basic rules on government procurement remained unchanged. Japan 
promotes green procurement and participation of SMEs in the market.  
Question  
6. What technical standards apply in green procurement? Are they JS standards, or those made by 
other standard setting organizations?  
Response  
Act on Promoting Green Procurement in Japan stipulates in its basic policy the items to be 
promoted for procurement and their environmental standards.  
The standards are set by a study group consisting of experts, according to the state of 
development and diffusion of products, etc., and the enhancement of scientific knowledge, etc. JIS 
standards may be referred to for some items.  WT/TPR/M/438/Add. 2 
 
- 22 - 
 
Page 11, Para. 28  
On 4 June 2021, Japan adopted a Protocol to Amend the International Convention for the 
Conservation of Atlantic Tuna. Japan withdrew from the General Fisheries Commission for the 
Mediterranean on 31 October 2020.  
Questions  
7.Does Japan amend domestic management meas ures, laws and regulations, on a regular basis 
each year, in accordance with management measures adopted by regional fisheries organizations?  
Response  
Japan amends relevant domestic management measures, laws or regulations according to the 
decisions in RFMOs each time as necessary, not on a regular basis.  
8. Could Japan elaborate on the considerations of withdrawing from the General Fisheries 
Commission for the Mediterranean?  
Response  
Since 1995, the General Fisheries Commission for the Med iterranean (GFCM) had been involved in 
the conservation and management of tuna resources, in which Japan was interested, in the 
Mediterranean Sea. But since 2015, the GFCM has ceased to be involved in the conservation and 
management of tuna resources.  
Furthermore, Japanese fishing vessels have stopped fishing in the Mediterranean Sea since 2010. 
In light of these circumstances, Japan has decided to withdraw from the GFCM Agreement.  
Page 33, Para 2.28 -2.29 
Under the amendment, a foreign investor seeking a 1% -share in businesses with importance to 
national security, public safety, infrastructure, or Japan's economy is required to undergo a prior -
notification and approval process.  
The amendment also introduced various exemptions from the prior -notification req uired for stock -
purchases. An exemption from the prior -notification filings is available for foreign financial 
institutions and accredited general investors, including sovereign wealth funds. Exemptions are 
subject to three conditions: (i) the foreign inve stor and its closely related persons will not serve on 
the board of the target company as directors or audit and supervisory board members; (ii) the 
foreign investor will not make proposals at shareholders' meetings, whether directly or through 
third parti es, to dispose of material businesses in designated industries; and (iii) the foreign 
investor will not access sensitive confidential technologies that are related to the target company's 
designated business.  
Questions  
9. How can investors determine which companies are important to national security, public safety, 
infrastructure or Japan's economy? Are there specific criteria or a list of important companies?  
Response  
Under the FEFTA, in principle, foreign investors are required to determine whether they need to 
submit prior -notification or not. Designated business sectors requiring prior -notification are set out 
in the Public Notices. Please follow the link provided below. 
https://www.mof.go.jp/english/policy/international_policy/fdi/related -laws-and-regulations.html  
While foreign investors are required to determine whether or not to submit prior -notification as 
mentioned above, the Ministry of Finance publishes the "List of classifications of listed companies 
regarding the prior -notification requirements on inward dir ect investment under the FEFTA " for the 
benefit of foreign investors in making such decisions. Please follow the link provided below.  
https://www.mof.go.jp/english/policy/international_policy/fdi/Related_Guidance_and_Documents/
20230519.html  
10. How do eligible general investors apply for accreditation?  WT/TPR/M/438/Add. 2 
 
- 23 - 
 
Response  
In principle, state -owned enterprises are not eligible for the exemption fro m the prior -notification 
of stock -purchases.  
If SWFs contact the Ministry of Finance to take advantage of exemption scheme, the Ministry of 
Finance will review whether (1) investment activities of the SWFs are only for economic returns; 
and (2) investment  decisions by the SWFs are made independently of their governments. If SWFs 
are deemed to pose no risk to national security, etc., the Ministry of Finance will sign 
Memorandum of Understanding (M oU) with the SWFs to grant the accreditation for the regular 
exemption.  
To avoid unintended adverse implications, the Japanese government will not make public the 
status of accreditation of SWFs and M oUs. 
Page 39, Para 3.16  
Japan applies MFN tariff rates to imports from eligible countries and regions, whereas the or igin is 
defined as the country or region in which the goods concerned have been wholly obtained or have 
undergone substantial transformation, which is defined as having a change in the four -digit 
heading in the Harmonized System, or (in some cases) subject  to specific origin -conferring 
processing or working.  
Questions  
11. For crops grown in Japan with imported seeds, is it recognized as produced in Japan?  
Response  
In our understanding, the referred part of the report is about the custom related laws that are 
applied to goods imported into Japan. On the other hand, the Food Labeling Act and the Food 
Labeling Standards provide the rules of labeling concerning the plac e of origin of fresh foods inside 
Japan, which is not necessarily identical with the custom related rules.  
As a reference, in the "Food Labeling Standards ", "place of origin " is, as the principle, where an 
agricultural, livestock, and fishery product is pr oduced. It also provides more detailed labeling 
rules individually for agricultural, livestock, and fishery products, considering the difference of 
production environments among them.  
12. China shiitake mushroom enterprises and industry associations report ed that Japan restricted 
the export of Chinese shiitake mushroom products to Japan by amending the rules of origin, 
including that shiitake mushroom products cultivated in Japan by Chinese shiitake mushroom 
sticks (i.e. shiitake seeds) were not recognized as Japanese products.  
According to the principle the actual place of change in form should be the origin of the finished 
product, shiitake mushroom sticks (HS0602) were cultivated in Japan to grow into shiitake 
mushrooms (HS0709.54), and thus the HS chapte r has changed. Why is this type of shiitake not 
recognized as a Japanese product in Japan?  
Response  
In our understanding, the referred part of the report is about the custom related laws that are 
applied to goods imported into Japan. On the other hand, the  Food Labeling Act and the Food 
Labeling Standards provide the rules of labeling concerning the place of origin of fresh foods inside 
Japan, which is not necessarily identical with the custom related rules.  
The basic idea of the "Food Labeling Act " is the safety of ingestion of food and securing the 
opportunity to make an autonomous and rational choice of food for consumers. Based on this Act, 
the "Food Labeling Standards " provides the labeling items and labeling rules that are necessary for 
autonomous and rational choices of food for consumers.  
In the "Food Labeling Standards ", "place of origin " is, as the principle, where an agricultural, 
livestock, and fishery product is produced. It also provides more detailed labeling rules individually 
for agricultural , livestock, and fishery products, considering the difference of production 
environments among them. Shiitake mushrooms are included in "agricultural products " in the Food WT/TPR/M/438/Add. 2 
 
- 24 - 
 
Labeling Standards. According to the rules concerning the place of origin of agricul tural products 
based on the Food Labeling Standards, as the principle, the name of origin prefecture shall be 
labeled as for domestically produced products, while the name of origin country shall be labeled as 
for imported products.   
Regarding shiitake mus hrooms, the environment of the early stage of their cultivation when their 
mycelium grow into the culture medium brings great influence on the formation of their fruiting 
bodies. Thus, we amended the related administrative notification ( "Food Labeling Stan dards ") in 
March 2022, and we made it clear that, regarding shiitake mushrooms, the place of origin is the 
place where their shiitake seeds were planted to shiitake sticks or culture medium.  
Page 40, Para 3.22  
Japan's MFN applied tariff structure remains complex. With a total of 272 tariff rates, there are 136 
different ad valorem rates, 75 different specific rates, 29 different alternate rates, and 24 different 
compound rates, as well as some other types of dut ies (4 differential duties and 4 sliding duties). 
The FY2022 tariff schedule comprised 9,467 lines, excluding in -quota rates (compared to 9,181 in 
FY2019) at the HS 9 -digit level of the HS22 nomenclature (Table 3.1).  Of all tariff lines, 92.7% 
involve ad valorem  rates (including duty -free lines, which represent 40.9% of all lines). The 
remaining 7.3% (i.e. 689 lines) are non -ad valorem  rates (Chart 3.1); they apply mainly to fats 
and oils, footwear, prepared foods, mineral products, live animals and animal products, 
vegetables, and textiles and clothing (Chart 3.2).  
Question  
13. What are the underlying reasons for the complexity of Japan's MFN applied tariff structure?  
Response  
We think that the indication that our tariff regime is complex is not necessarily correct because of 
the following reasons : 
1. In Japan, the total percentage of duty -free rate and ad valorem  rate account for more than 
90% of all tariff lines. For some of the remaining products, non -ad valorem  rates are set 
due to specific condi tions of each item in the domestic industry ; 
2. All tariff rates are listed in the relevant laws.  
Page 54, Para. 3.67  
Under the Export Trade Control Order, approval from the METI may be required to export certain 
goods and exports of certain goods to certain destinations.  
Question  
14. What factors will Japan take into consideration when it makes and implements export control? 
Is another country's request for joint action included in these factors? What procedures are needed 
before such control is appro ved? What is the basis for decision making? How will Japan explain the 
adverse impacts of such a move on the importing country?  
Response  
Ministry of Economy, Trade and Industry controls export form Japan to other countries based on 
the Foreign Exchange and  Foreign Trade Act in the view of  maintaining international peace and 
security, sincerely fulfilling obligations under the treaties and other international agreements Japan 
has concluded, or contributing to international efforts to achieve international pe ace, etc . 
Exporters have to take procedures required by related regulations such as checking specifications 
of goods to be exported in applying for an export license or approval.   
Page 62, Para. 3.103  
As at 31 March 2022, there were 10,918 JISs (Table  3.10). According to the authorities, the 
number of JISs with corresponding international standards was 6,341. The percentage of those 
JISs that were harmonized with international standards was 97%.  WT/TPR/M/438/Add. 2 
 
- 25 - 
 
Question  
15. What are international standards mentioned here?  What are the percentages of ISO and IEC 
standards?  
Response  
International standards mentioned here are mostly ISO and IEC standards. The ratio of ISO 
standards and IEC standards is 7:3.  
Page 66, Para. 3.126  
To enhance the safe use of pesticides, Japan am ended the Agricultural Chemicals Control Act in 
2018. The amended Act introduced, inter alia, a re -evaluation system for pesticides. The MAFF 
started the procedure for re -evaluation of the first batch of agricultural chemicals in October  2021. 
Moreover, the amended Act introduced a risk assessment for pesticides to their users and to 
honeybees; the amendment entered into force April 2020.  
Question  
16.Please provide further details about the re -evaluation system for pesticides introduced in 
Japan 's newly amended Agricultural Chemical Control Act.  
Response  
Re-evaluation is a system under which every registered pesticide is regularly re -evaluated for their 
safety based on the latest scientific knowledge. Each pesticides manufacturer is obliged to s ubmit 
a set of test data in accordance with the latest testing requirements. MAFF started the re -
evaluation from FY2021, prioritizing those used in high amounts.  
Page 69, Para. 3.131  
In response to the COVID -19 pandemic, the JFTC took a number of actions r elated to competition 
policy. In 2020, the JFTC issued a press release stating that necessary and temporary coordination 
between competitors to ensure supply and distribution of related goods and services would not 
violate the AMA. The statement in the pre ss release does not limit the applicable timeframe or the 
range of targeted products and services.  
Questions  
17.What are the laws, regulations, criteria and procedures the Japan Fair Trade Commission apply 
to decide whether a temporary measure violates th e Act on Prohibition of Private Monopolization 
and Maintenance of Fair Trade, or Anti -Monopoly Act, or whether the measure is necessary?  
Response  
In light of pandemic of the COVID -19, the JFTC determines whether each conduct done by 
businesses  is allowed or not based on provisions of the Antimonopoly Act. A press release, which is 
released on 28 April 2021, describes how the Antimonopoly Act is appl ied to specific cases related 
the COVID -19 pandemic.  
18. Will the temporary coordination policy stay effective permanently? If not, under what 
conditions will it be invalid?  
Response  
Temporary coordination would be effective if the situation of shortage of supplies due to the 
COVID -19 pandemic continues.  
Page 69, Para. 3.132  
Several activities and business practices remain exempt from the scope of the AMA. Competition in 
these areas may be covered by other legislation and different institutions.  
Question  
19.Please provide examples of activities or practices exempt from the scope of the AMA.  WT/TPR/M/438/Add. 2 
 
- 26 - 
 
Response  
Some examples of cartels exempted from the scope of the AMA are as follows: insurance cartels, 
cartels on fees for secondary use of commercial phono grams, and transportation cartels.  
Page 76, Para 3.155  
The principle of non -discrimination is pursued in all procurement activities except for preferences 
granted under RTAs to which Japan is a party. There are currently no RTAs in force that grant 
supplie rs from non -GPA parties treatment more favo rable than suppliers from GPA parties. 
Suppliers from non -GPA parties are not excluded from participating in GPA -covered procurement. 
However, there has been concern over the apparently low share of foreign compan ies in 
government procurement; it seems that this is partly due to non -regulatory barriers, the 
geographical distance from certain overseas markets, and a lack of knowledge of the local market. 
Foreign participation in central government entities' and inco rporated administrative agencies' 
(IAAs, some of which are listed as Annex 3 entities under Japan's GPA 2012 commitments) 
procurement is described in Tables  3.15 and 3.16.  
Question  
20. Does Japan agree that the low share of foreign companies in government procurement is due 
to non -regulatory barriers, the geographical distance from certain overseas markets, and a lack of 
knowledge of the local market? How does the Japanese government plan to address this issue?  
Response  
Although China is quoting from the re port by the secretariat and Japan is not in a position to 
respond to the contents of the report, procuring entities, including local governments, publish a 
summary notice in English, at the same time as the publication of the notice of intended 
procurement  in Japanese. In addition, JETRO gathers information on procurements which are 
covered by the GPA, the Japan -EU Economic Partnership Agreement and the Japan -UK 
Comprehensive Economic Partnership Agreement and posts it on its portal site. JETRO posts 
procur ement information in Japanese and its summary in English on its portal site, in principle, no 
later than the end of next business day of publication. Thus, Japan disseminates information on 
government procurement in Japan and looks forward to see many fore ign suppliers to actively 
participate in government procurement in Japan.  
Page 102, Para. 4.20  
During the review period, the Government launched a Strategy for Sustainable Food System, 
MeaDRI (Measures for Achievement of Decarbonization and Resilience with  Innovation) in May 
2021, and the Act on Sustainable Food System, MeaDRI entered into force in July 2022.  
Questions  
21. Are there any corresponding action plans and/or projects for the strategy and act?  
Response  
Japan considers it is essential to promote effective implementation and utilization of the existing 
technologies as well as further development of relevant technological innovation in realizing the 
Strategy for Sustainable Food System, MeaDRI. In this point of view, Japan enacted "Act to 
Promote En vironmental Burden Reduction Activities for Establishment of Environmentally 
Harmonized Food System " in 2022 and promotes various measures including enhancing existing 
demonstrational projects on the relevant technologies.  
22. If any, please provide furthe r details about them, as well as their expected targets and 
budgets.  
Response  
The same as above.  
Page 102, 4.21  WT/TPR/M/438/Add. 2 
 
- 27 - 
 
The general eligibility requirements of this project include that a recipient group must be 
composed of five farmers or more; expected performance indicators must meet the target levels 
specified in the operational procedure of this project; and the total area of farmland of a recipient 
group must be larger than the size of area specified in the operational procedure of this project.  
Ques tion 
23. What are the basis for making the expected performance indicators? What aspects are 
include d? 
Response  
The performance indicators are made based on the settled objective of this project: development 
of stable supply systems for agricultural and li vestock products. The indicators include production 
cost reduction, income growth, and labo ur productivity improvement.  
Page 102, 4.21 ；Page 103, 4.25  
The Government also implemented a comprehensive grant for strong agriculture during the same 
period with a  view to providing support for constructing fundamental facilities in agricultural rural 
areas and distribution cent ers of agricultural products, which the authorities consider necessary for 
joint delivery in production areas and consumption areas as well as for pilot programmes in 
pioneering projects.  
A Production Infrastructure Power -up Project, introduced in FY2015 with a view to providing 
infrastructural development service to an agricultural rural area, aims to support farmers that work 
on initiatives  based on the region's agricultural strategy.  
Questions  
24. Both of the policies aim to improve infrastructural development in agricultural rural areas. 
What are the differences between them?  
Response  
"Comprehensive Support Grants for Creating Strong Agriculture" supports constructing 
fundamental facilities in agricultural rural areas, with the aim of development of stable supply 
systems for agricultural and livestock products. "Production infrastructure power -up project" 
provides comprehensive support for introduction of farm machinery as well as construction of 
fundamental facilities in an effort to strengthen infrastructure for crop production in agricultural 
rural areas.  
25. Can the same recipient group apply for and receive support from both  projects?  
Response  
A recipient group cannot apply for both projects under the group 's same plan.  
Page 105, 4.33  
The MAFF continues to implement the Rice Overseas Market Expansion Project.  
Questions  
26. What effect has the Rice Overseas Market Expansion Pr oject achieved?  
Response  
Since this project was launched in September 2017, the efforts of export operators and producers 
have resulted in approximately 29,000 ton nes of rice export in 2022, compared to approximately 
12,000 ton nes in 2017.  
27. What measure s have been taken to expand the overseas market under the project?  
Response  
Export operators who set export expansion goals and targeting countries/regions and rice 
producers who intend to export their products are on the list published by MAFF.  WT/TPR/M/438/Add. 2 
 
- 28 - 
 
MAFF supports these export operators and producers by holding matching opportunities or setting 
promotion opportunities in domestic or overseas trade shows.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 6, Para. 3.4  
In the post -COVID -19 era, the realization  of Data Free Flow with Trust (DFFT) is crucial for 
harnessing the increasingly important digital sector, and at the WTO, e -commerce negotiations are 
one of the most important themes and it is crucial to accumulate results in order to further 
advance negot iations.  
Questions  
28. As the G7 presidency, Japan will advance the Data Free Flow with Trust in 2023, according to 
news report. What are the criteria for "trust" and how does Japan intend to ensure the compliance 
of the criteria with the WTO principle of non-discrimination?  
Response  
There are no definitive criteria, but it aims to ensure trust in privacy, security, and intellectual 
property rights, and is committed to ensuring that its operation does not violate the principles of 
the WTO.  
29. What are poss ible ways to incorporated DFFT measures into bilateral, regional and multilateral 
trade agreements?  
Response  
With the aim of promoting the concept of DFFT, Japan has formed digital trade rules in trade 
agreements that ensure the free flow of socio -economic ally beneficial data across borders, while 
maintaining systems that ensure trust. Japan has incorporated and promoted DFFT measures into 
bilateral, regional and multilateral trade agreements, for example through the Japan -US Digital 
Trade Agreement, the Ja pan-UK Economic Partner Agreement, the G7 Trade Ministers' Digital 
Trade Principles and the ongoing WTO E -commerce negotiations under the framework of the Joint 
Statement Initiative.  
30. What domestic rules and regulations has Japan put in place regarding the cross -border flow of 
data?  
Response  
In Japan, there are regulations regarding the cross -border flow of data, for example, the Act on 
the Protection of Personal Information.  
Page 7, Para. 3.5  
Japan has been actively engaged in fishery subsidies negotiat ions with the view that subsidies that 
truly result in overfishing and expanding overfishing capacity be regulated. Japan is currently 
moving forward with acceptance of the Agreement on fishery subsidies adopted at MC12.  
Questions  
31. Are there any specifi c measures Japan has taken to better regulate "subsidies that truly result 
in overfishing and expanding overfishing capacity" (for example, how to determine overfishing and 
expanding overfishing capacity)?  
Response  
Engagement with fisheries management is o ne of the conditions to be eligible for some 
government supports which are aimed at establishing environmentally and economically 
sustainable fisheries.  
32. What are most possible obstacles Japan would have as it moves forward with acceptance of 
the Agreem ent on fishery subsidies? Will it tackle the obstacles with reform of subsidy policies?  WT/TPR/M/438/Add. 2 
 
- 29 - 
 
Response  
Japan has not found any obstacles so far in terms of acceptance of the agreement.  
Page 8, Para. 3.14  
Therefore, for Japan, approximately 90%  of in force or signed RTAs contain MSME -related 
provisions.  
Questions  
33. What specific measures has Japan taken to support small and medium -sized enterprises 
(SMEs) in participating in international trade? Could Japan share some experiences on those 
effective measures?  
Response  
The 10,000 New Exporters Support Program is a service that connects SMEs that are not familiar 
with existing support measures to appropriate support measures when they work to expand their 
sales channels. The program will be operated appropriately according to the actual conditions and 
needs of SMEs.  
34. What is Japan's plan and suggestions on cooperation with China in promoting cross -border e -
commerce  for the development of SMEs?  
Response  
The governments of Japan and China have been discussing ways to improve the cooperation and 
business environment between the two countries, including cross -border E -commerce.  
Such promotion of cooperation and improvement of the business environment between Japan and 
China will benefit industries in both countries, including small and medium -sized enterprises 
(SMEs).  
The governments of Japan and China will continue to discuss ways to promote the development of 
the business environment.  
Page 11, Para. 4.2.1  
Japan remains committed to APEC's mission of regional economic integration and to the Bogor 
Goals of free and open  trade and investment. In 2010, APEC Leaders set forth the Yokohama 
Vision, which is a comprehensive, forward -looking framework for achieving growth and prosperity 
in the Asia -Pacific region in the 21st Century. Japan has continued to take a leading role i n 
realizing this vision in close cooperation with other member economies. Against rising protectionist 
movements including unfair trade practices, Japan solidifies its resolve toward the promotion of 
free trade.  
Question  
35. Japan made clear its continuing  commitment to APEC's mission of regional economic 
integration. As a member of both the Regional Comprehensive Economic Partnership (RCEP) and 
the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP), how does 
Japan view the two ap proaches of RCEP and CPTPP to advancing high -quality Free Trade Area of 
the Asia -Pacific (FTAAP)?  
Response  
The Lima Declaration on the FTAAP adopted at the 2016 Asia -Pacific Economic Cooperation (APEC) 
summit meeting confirmed mainly the following two poi nts: (1) that the FTAAP would be high -
quality and comprehensive, and address next -generation trade and investment issues, being built 
in accordance with the TPP Agreement and the RCEP Agreement; (2) efforts would begin on 
implementing work plans supporting  related capacity building. In a progress report presented to 
leaders in 2020, the need was expressed for further efforts. Since 2017, Japan has been 
continuously providing capacity building support through workshops and policy dialogues 
concerning the "competition chapters " in FTAs and EPAs and investment policies. From the 
viewpoint of achieving a comprehensive and high -quality FTAAP, the entry into force of the CPTPP 
and RCEP Agreements are highly significant developments.  WT/TPR/M/438/Add. 2 
 
- 30 - 
 
Page 12, Para. 4.7  
At the sum mit meeting in September2018, the former Prime Minister Abe and the former President 
Trump agreed to enter into bilateral trade negotiations on the Japan -United States Trade 
Agreement and the Japan -United States Digital Trade Agreement. At the summit meeti ng in 
September 2019, the two leaders confirmed that both sides reached final agreement. These 
agreements were signed in October and were then approved by the National Diet of Japan in 
December  2019. Following the completion of respective domestic procedur es, both agreements 
went into effect on 1 January 2020.  
Question  
36. The Biden Administration in August 2022 adopted the Inflation Reduction Act, which offers 
subsidies to new electric vehicles produced in North America and second -hand vehicles. This may 
violate the WTO MFN principle and the U.S. -Japan Free Trade Agreement. We noticed that Japan, 
the Republic of Korea, the European Union and other WTO members expressed concern over the 
United States' subsidy policy. How does Japan view the U.S. policy of su bsidy? Has any progress 
been made in bilateral negotiations? Apart from bilateral negotiations, does Japan have any plan 
for multilateral actions?  
Response  
With regard to the U.S. Inflation Reduction Act (IRA), Japan has been in close communication with 
the United States, including between the leaders and ministers of the two countries.  
Page 16, Para 6.5  
The Basic Act stipulates the Japan's basic digital policy regarding the formulation of principles and 
measures and requires the Japanese Government should  quickly implement measures with priority 
for the formation of a digital society. In the Priority Policy Program for Realizing Digital Society 
(decided by the Cabinet in June 2022), among the important tasks set forth is to urge almost all 
residents in Jap an to obtain their Individual Number Cards ("My Number Card") and to encourage 
the use of the Individual Number Cards as health insurance cards and other card functions in the 
future, such as use as driver's licenses and residence cards.  
Question  
37. Is M y Number Card equivalent to national identification card? How are residents in Japan 
protected in terms of data security and personal privacy under this policy?  
Response  
Is it equivalent to a citizen's ID card ? 
The Individual Number Card (My Number Card ) is a "passport " for a safe and secure digital society 
that allows identity verification online as well as face -to-face. The cumulative number of valid 
applications is over 96,460,000.This makes it the most popular identity verification tool.  (Japan's 
population is about 122.03 million)  
(Data security and personal privacy ) 
The IC chip only records the electronic certificate and the basic personal information (name, date 
of birth, gender, address, etc.), not sensitive information such as tax or pension information.  
In addit ion, a PIN is required when using the Individual Number Card online. If the PIN is entered 
incorrectly several times, the function is blocked.  
Thus, we have high levels of security measures and personal information is not compromised by 
the loss or theft o f a card.  
Security measures for Individual Number Card are the same regardless of whether you are 
Japanese or a resident of Japan.  
Page 16, Para. 6.9  
(3) Promoting the utilization of standard strategies;  WT/TPR/M/438/Add. 2 
 
- 31 - 
 
Questions  
38. How have the standard strategies been  implemented?  
Response  
Allocating budgets to major measures of related ministries and agencies, and providing support for 
the realization of standardization in those measures, etc.  
39. How do the Japanese authorities ensure negotiations for and identification of standards -
essential patents are fairly conducted?  
Response  
The JPO has published the "Guide to Licensing Negotiations involving Standard Essential Patents" 
as a document objectively organizing issues surrounding license negotiations, base d on trends in 
domestic and foreign court cases, competition authorities' decisions, licensing practices and so on.  
In addition, METI established the "Good -Faith Negotiation Guidelines for Standard Essential Patent 
Licenses" which provides norms for good -faith negotiations to be followed by SEP holders and 
implementers involved in negotiations on licensing SEPs including domestic patents in order to 
realize an appropriate licensing environment by enhancing the transparency and predictability of 
negotiations . 
Although none of these measures are legally binding or prejudge future judicial decisions, the 
measures help prevent disputes in negotiations between parties, and also encourage the early 
resolution of disputes.  
In addition, the JPO provides, in its "Han tei (advisory opinion)" system, an official opinion on the 
technical scope of a patented invention from a fair and neutral perspective. Results of Hantei 
(advisory opinion) are not legally binding on the parties to the case. Where the parties concerned 
have conflict of views on the essentiality of a certain patented invention, the "Hantei (advisory 
opinion)" system can be utilized for determining whether the patented invention is a SEP for a 
specific standard.  
40. What specific measures have been provided i n the Intellectual Property Strategic Program 
2022 for promoting the utilization of standard strategies?  
Response  
Same as response to Question 38.  
41. How will competent authorities in Japan implement the initiative and supporting measures?  
Response  
In ad dition to the above, each competent authority continues to consider how to implement 
support measures.  
Page 16, Para. 6.9  
(6) Enhancing the IP utilization in SMEs, regional (areas), and agricultural sciences;  
Question  
42. What measures will Japan take to promote the IP utilization in agricultural sciences?  
Response  
Japan promotes measures in accordance with the related laws , regulations, or guidelines to protect 
and utilize the IP in agricultural sector such as plant variety, geographical indication (GI), livestock 
genetic resources, data, and cultivation techniques.  
For more details of the measures please refer to the follo wing document "Intellectual Property 
Strategic Program 2022 ": 
https://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20221114_e.pdf . 
(in Japanese only)  WT/TPR/M/438/Add. 2 
 
- 32 - 
 
Page 16, Para 6.10  
Japan has enacted the law for the Partial Revision of Payment Services Act (which took effect on 
1May2021) to set up the following three different categories of money transmitter 
license/registrations and to apply appropriate regulations  based on the functions and risks of each 
category, in light of the needs of users who exceed the maximum amount, including foreign 
remittances, and the fact that most remittances handled by existing funds transfer service 
providers are no more than severa l tens of thousands of yen per case.  
Type 3: Permitted fund transfers up to JPY 50,000 with streamlined compliance requirements.  
Question  
43. The third category of money transmitter license sets the cap of JPY 50,000. What criteria is 
this figure based o n? Will Japan consider raising the cap in the future?  
Response  
a) Taking into account following points and considering the balance between user convenience and 
user protection, JFSA have conducted studies to ensure an appropriate level of compliance.  
・At present, about 90% of the balance of users accounts with funds transfer service providers are 
less than JPY50,000 per account.  
・Member 's comment at the Financial System Council that "Assuming that it will be used to pay 
utility charges, accommodation charge s, etc., how about setting it to JPY 50,000 or less in order 
not to impair user convenience?"  
b) While paying close attention to the implementation status of the revised law, such as the usage 
status of the small -amount category, we will consider appropria te measures, including reviewing 
the upper limit, if deemed necessary from the viewpoint of improving user convenience or 
protecting users.  
Page 17, Para 6.13  
Japan has enacted the Act on the Provision of Financial Services (which took effect on 1 November 
2021) to address the needs of financial service providers to provide a wide variety of financial 
services on a one -stop shop basis against the backdrop of the  development of information and 
communications technology, as well as the needs of users who want to use highly convenient, 
safe, and secure payment services in response to the cashless age. This revision enables financial 
service intermediary service prov iders that can intermediate services in all areas of banking, 
securities, and insurance through a single registration. Also, if certain requirements are met, 
registration procedures for electronic payment services can be dispensed with. The main contents 
are as follows. This revision:  
includes supervisory rules and regulations regarding authorized financial service intermediary 
associations and alternative dispute resolution systems should be established.  
Question  
44. What kind of alternative dispute reso lution system does Japan seek to establish in relation to 
financial services?  
Response  
Given that the characteristics of financial products and services differ from one to another, Japan 
has introduced a financial Alternative Dispute Resolution (ADR) syste m based on the efforts made 
so far by each sector, such as banking, securities, and insurance, in order to promptly respond to 
the growing user needs. Japan requires financial institutions to take measures to handle customer 
complaints and resolve dispute with their customers based on each business law. The 
establishment of the ADR system enables prompt, simple and flexible complaint handling and 
dispute resolution in accordance with the nature of the case and the circumstances of the parties 
concerned. The  aim is to improve the reliability of users of financial products and services by 
resolving problems with the satisfaction of users under the legal framework.  WT/TPR/M/438/Add. 2 
 
- 33 - 
 
Under this amendment, the Financial Instruments Sales Act was renamed the Act on the Provision 
of Financial Services, and the "Financial Service Intermediary Businesses Operators (FSIBO)" was 
created. Unlike the existing intermediary businesses, which are divided vertically by type of 
business, one registration makes it possible to provide one -stop se rvice for all services (banking, 
securities, and insurance).  
In the case of financial service intermediation, the regulations necessary for the protection of users 
might be different in the banking, securities, and insurance sectors. Therefore, FSIBO is to  be 
subject to the appropriate regulations according to the sector of services it handles.  
Based on the Act on the Provision of Financial Services, the Financial Services Agency (FSA) has 
established provisions concerning alternative dispute resolution systems in the "Financial Service 
Intermediary Business " as well as in the banking, securities , and insurance businesses, and 
requires FSIBO to take measures to handle customer complaints and resolve dispute with their 
customers.  
In addition, the FSA is collaborating with the Japan Financial Services Intermediary Business 
Association (JFIM), a self -regulatory body, to enable JFIM to use 3 of Tokyo Bar Associations as a 
dispute resolution measure for members of the association.  
Page 18, Para. 6.18  
The Commitment Procedures is a scheme to resolve suspected violations against the AMA by 
consent between  the JFTC and the enterprise concerned. It is considered that the Commitment 
Procedure would enable swifter elimination of competition concerns, broaden the range of 
cooperative problem -solving by the JFTC together with enterprises, and contribute to effic ient and 
effective enforcement of the AMA.  
Question  
45. Please elaborate on the Commitment Procedure, including the requirements for initiation and 
ways to evaluate the effectiveness of commitment measures.  
Response  
It will be commenced when the JFTC bel ieves that there to be a fact in violation of the provisions 
of the Antimonopoly Act  and finds it appropriate to apply the Commitment Procedures to the 
activities leading to such suspicion (hereinafter referred to as the "Suspected Violation ") during the 
period from the start of an investigation to Notice of hearing of opinions (this refers to the notice 
described under Article 50, paragraph (1) of the Antimonopoly Act [including when these are 
applied mutatis mutandis pursuant to Article 62, Paragraph  (4) of the Antimonopoly Act following 
the deemed replacement of terms.]). To be accurate,  when the JFTC recognizes that it is 
necessary for promotion of fair and free competition (including cases in which the Suspected 
Violation has already ceased to exis t and there is a particular need for such procedures for 
promotion of free and fair competition.) (* except for hard -core cartels such as price -cartels or 
bid-rigging cases), the JFTC may commence the Commitment Procedures by issuing a written 
notice (here inafter referred to as the "Notice of Commitment Procedures ") to the enterprise 
conducting or has conducted the Suspected Violation, pursuant to the provisions of Article 48 -2 or 
Article 48 -6 of the Antimonopoly Act, of the following: (i) the overview of t he Suspected Violation; 
(ii) the clause of the laws and regulations for which there is or was suspicion of violation; and, (iii) 
the fact that is possible to make an application  for the approval of Commitment Plan which is 
necessary to eliminate the Suspec ted Violation or a Plan to Ensure Cessation which is necessary to 
ensure that the Suspected Violation has been eliminated (hereinafter collectively referred to as the 
"Commitment Plan "). 
When the enterprise that has received a Notice of Commitment Procedur es (hereinafter referred to 
as the "Notified Enterprise ") makes an Application for Commitment Approval, it needs to make an 
application within sixty days from the date when it received the Notice of Commitment Procedures 
pursuant to the provisions of Artic le 48 -3, paragraph (1) or Article 48 -7, paragraph (1) of the 
Antimonopoly Act.  
After the Notified Enterprise has made an Application for Commitment Approval, the JFTC makes a 
judgment as to whether or not the relevant Commitment Plan conforms to the requir ements for 
approval provided in both of the items of Article 48 -3, paragraph (3) or both of the items of Article WT/TPR/M/438/Add. 2 
 
- 34 - 
 
48-7, paragraph (3) of the Antimonopoly Act (hereinafter collectively referred to as the "Approval 
Requirements ") and approves the Commitment P lan when the JFTC recognizes that the 
Commitment Plan conforms to Approval Requirements.  
Concretely, the content of Commitment Measures or Measures to Ensure Cessation included in the 
Commitment Plan needs to satisfy  the following requirements for the appr oval: (i) they are 
sufficient for eliminating the Suspected Violation or to ensure that the Suspected Violation has 
been eliminated  and (ii) they are expected to be reliably conducted.  
Page 20, Para. 6.27  
The Japanese Government has accelerated taking meas ures towards the reduction of GHG 
emissions and stipulated future directions. It should take into account the Strategic Energy Plan, 
the Plan for Global Warming Countermeasures, and the Long -Term Strategy under the Paris 
Agreement, as well as other relevan t Agreements.  
Questions  
46. What are the supportive measures and policies for the plan?  
Response  
In order to simultaneously achieve economic growth, energy security, and decarbonization through 
the realization of GX, Japan formulated its Basic Policy for t he Realization of GX in February this 
year. In this policy, the government has indicated that, in order to overcome the current crisis, it 
will promote transition to renewable energy, nuclear power, and other power sources that 
contribute to energy securit y and have a high decarbonization effect. In addition, under the "Prp -
Growth Carbon Pricing Concept," the government has clarified its policy to support private sector 
investment in decarbonization by providing upfront investment support of JPY 20 trillion  over the 
next 10 years in order to accelerate GX investment.  
47. To boost green growth, the Japanese Government has made cross -sectoral policy tools, 
including improving regulations, mechanisms and standards. For example, it revised and optimized 
regulati ons, mechanism and standards for hydrogen refueling station, offshore wind power and 
storage batteries. Please provide further details about the improvement of the standards and plans 
for such improvement.   
Response  
Based on the Regulatory Reform Implementation Plan ( decided by the Cabinet in 2017 and 2020), 
we have been considering regulatory reforms for hydrogen stations in cooperation with industry 
associations and related businesses, and have taken steps such as allowing unmanned operation 
through remote monitoring, and we will continue to review regulations as necessary.  
Page 20, Para. 6.30  
In order to meet the intervention exemption level of the Codex Alimentarius Commission (Codex), 
which is a well -known international standard for the purpos e of international trade, Japan set the 
maximum levels of radioactive cesium in food to be 1mSv/year that FAO and WHO jointly stated 
as a general standard for contaminants and toxins in food an feed and considered as safe for the 
public, and in considerati on of the released nuclides and with highly conservative and hypothetical 
assumption that 50% of the food intake is contaminated.  
Question  
48. According to the general standards for contaminants and toxins in food and feed jointly 
released by FAO and WHO, the maximum level of radiation due to ingestion of radioactive nuclides 
in all situations is 1mSv/year. The standard is not just for radioactive cesium. How does Japan 
explain the discrepancy between its interpretation of the international standards and th at by the 
international organizations concerned? Does Japan agree with the opinion that according to its own 
explanation, this will lead to the increase in the maximum level for radioactive cesium?   WT/TPR/M/438/Add. 2 
 
- 35 - 
 
Response  
The Japanese maximum levels (JMLs) for radio -cesium are established for an effective dose of 
radionuclides (including strontium 90, plutonium, and ruthenium 106, having physical half -lives of 
more than a year) not to exceed 1mSv/year.  
The migration ratio of each radionuclide according to migration pathway was analyzed, and the 
contribution of radio -cesium according to food product and age categories was derived. In the 
long-term, most of the doses through food intake derived from the Fu kushima Daiichi Nuclear 
Power Station accident in 2011 were attributed to radio -cesium. The food monitoring results of 
these radionuclides other than radio -cesium show that they are minimal, either non -detected or at 
a level within the range of that before  the accident.  
Page 21, Para. 6.32  
Since the last sample in April 2013, none of the farm products and fishery harvests have ever 
exceeded the Codex Guideline level defined as safe for human consumption, and even wild edible 
plants such as fungi, fern sprou t and leaf buds have not exceeded the level for food with small 
consumed amounts, similarly for almost nine years. The only harvests that still exceed the level 
are certain game meat, although the detection rate is very low, and those detected are neither 
distributed nor exported.  
Question  
49. First, the Codex Guideline level defined as safe for human consumption covers 20 nuclides, but 
Japan only detects radioactive cesium. Therefore, it cannot arrive at the conclusion, "none of the 
farm products and fishe ry harvests have ever exceeded the Codex Guideline level defined as safe 
for human consumption." Second, according to the results of radioactive substances detected in 
food released by Japan's Ministry of Health, Labour and Welfare from 2020 to 2022, the l evel of 
radioactive substance in certain quantities of farm products exceeded the Japanese standards, and 
these farm products might have been distributed and exported. How does Japan explain the 
discrepancy between its interpretation of international stand ards and that by the international 
organizations concerned? For farm products whose radioactive substance exceeds the Japanese 
standards, how will Japan evaluate their safety risks when they are distributed and exported?  
Response  
(1) As explained in the r esponse to Q48, Japan takes international standards into consideration 
when setting domestic standards.  
(2) In the unlikely event that agricultural products are detected with radioactive materials 
exceeding the JMLs, the items exceeding the levels are reca lled and disposed of.  
Page 21, Para. 6.33  
The Japan's domestic standard is much more stringent compared to the Codex. The Japanese 
Maximum Levels of radioactive cesium (JMLs) of food in general set by the Ministry of Health, 
Labour and Welfare is implement ed as 100 Bq/kg in Japan7, while the corresponding Codex 
Guideline level is 1,000 Bq/kg (CXS193 -1995).  
Question  
50. The Codex defines the maximum levels of 20 radionuclides in four groups, noting the figure for 
each radionuclide within the same group needs to be added together. By contrast, Japan's 
maximum level is for just one single nuclide, which is the radioacti ve cesium. Given this, why 
would Japan believe its domestic standard is "much more stringent" compared to the Codex?  
Response  
As previously indicated, of the radionuclides released as a result of the accident, radio -cesium  is 
the dominant radionuclide in the long -term, and since the Codex Guideline level for radio -cesium  
(γ-ray emitting radionuclides) is either 1,000 Bq/kg or 10,000 Bq/kg for low consumption foods, 
the Japanese standard of 100 Bq/kg is more stringent than the Codex.  
Page 21, Para. 6.34  WT/TPR/M/438/Add. 2 
 
- 36 - 
 
Monitoring of food products, currently in Japan, is conducted in 17 prefectures to confirm 
compliance with the JMLs of 100 Bq/kg for radionuclides in food products, targeting radioactive 
cesium among the radionuclides that have relatively long half -lives and require consideration of 
their long -term effects. Based on domestic regulations, each municipality formulates and conducts 
monitoring plans. If the monitoring results exceed the JMLs, the entire lot is discarded. Japan's 
national laws mandate that food pro ducts which exceed these stringent JMLs be recalled and 
disposed of, and if a regional spread of exceeding the JMLs is recognized, shipment restriction 
measures are taken for that region based on the Government's instructions. As a result, food 
products or iginating from the restricted areas will not be distributed. Japan's regulatory framework 
thus ensures that food products exceeding the maximum level are neither distributed in the 
domestic market nor exported to overseas economies.  
Question  
51. Japan's 10 0 Bg/kg of maximum level of radioactive substance only applies to radioactive 
cesium. Detection only targets radioactive cesium rather than all or multiple radionuclides with 
regard to the Fukushima Daiichi Nuclear Disaster. This greatly limited the countr y's knowledge of 
contamination caused by radionuclides other than radioactive cesium. So, what's the scientific 
basis for Japan to evaluate the radionuclides risk with food just by detecting radioactive cesium?  
Response  
Please refer to the previous answer to the question 48.  
Page 21, Para. 6.35  
In this process, Japan reaffirmed that food products drastically exceeding the JMLs decreased in a 
few years after the accident and its detection rate has since been stable at minimal levels. The 
sampling is purposiv e to detect the contamination or to remove the restrictions and the majority of 
detections is limited to wild harvests monitored in areas where the distribution has already been 
restricted.  
Question  
52. The "detection rate" is closely associated with the " minimum limit of detection." Since 2020, 
the minimum limits of detection as defined by Japanese testing agencies have been ranging widely 
from 0.019 to 44 Bq/kg. Therefore, the statement that the "detection rate has since been stable at 
minimal levels" is not convincing as it gives no specific scope. Second, the "detection rate" is only 
about radioactive cesium rather than other radionuclides. So, how can Japan ensure that the 
detection rate is science -based and accurate? What's the scientific basis for Jap an to exclude 
radionuclides other than radioactive cesium from the scope of detection?  
Response  
The detection rate in this context is to the percentage of samples exceeding the JMLs. We would 
like to add that "food products exceeding the JMLs drastically d ecreased in a few years after the 
nuclear power station accident and the  percentage of samples exceeding the JMLs has remained at 
minimal levels since then. "  
Note: The rate has slightly increased since 2020, but it is only due to a change in the sampling: a  
decrease in beef samples due to the past test results, which met the JMLs for many years.  
Regarding the Limit of Detection(LOD), we will respond below:  
First, The source of the statement "Since 2020, the minimum limits of detection as defined by 
Japanese testing agencies have been ranging widely from 0.019 to 44 Bq/kg." is unclear.  
However, for your reference, the screening method for radioactive cesium in food pr oducts using 
NaI scintillation spectrometer requires a certain level of performance criteria for the analytical 
instrument used. The performance criteria for the analytical instrument include the following:   
・The screening level must be at least 1/2 of the  JMLs (50Bq/kg ）  
・Limit of Quantification (LOQ) must be lower than 1/4 of the JMLs (25Bq/kg ）  WT/TPR/M/438/Add. 2 
 
- 37 - 
 
For samples whose radio -cesium  could not be determined less than or equal to the JMLs as a result 
of screening, the reliability of the test results shall be confi rmed by using a test method, including 
Gamma -ray spectrometry using a germanium semi -conductor . 
With regard to "the scientific basis for Japan to exclude radionuclides other than radioactive 
cesium from the scope of detection", please refer to the previous  answer to the question 48.  
Page 21, Para. 6.36  
and so far 43 countries and regions out of 55 have removed their restrictions. The combination of 
these comprehensive approaches makes sure that Japanese food is qualified to be consumed 
worldwide.  
Question  
53. As far as we know, there are still five countries and regions prohibiting imports of Japanese 
food and farm products; 33 countries and regions require certificates of radioactive substance 
tests when importing some Japanese food and farm products; a sig nificant proportion of countries 
and regions still have restrictive measures in place. Can Japan provide the list of the "55 countries 
and regions"?  
Response  
Situation of the question may be that in early 2017.   
Please find the following list:  
https://www.maff.go.jp/j/export/e_info/attach/pdf/hukushima_kakukokukensa -59.pdf   
or that in Chinese: 
https://www.maff.go.jp/j/export/e_info/attach/pdf/hukushima_kakukokukensa -56.pdf   
Nowadays, significantly small proportion of countries and regions maintain import measures, 
including highly excessive import ba ns maintained by PR China.  
PART III: OTHER QUESTIONS  
54. Does Japan apply a different regulation model for the pricing and charges of public air 
transport and general aviation? Please introduce Japan's laws and regulations on public air 
transport, general aviation and airports and its airspace management system and air traffic 
management and operation model.  
Response  
In Japan, there are the following differences between public air transport, equivalent of scheduled 
air services in Japan, and general aviatio n in terms of regulations for fares and charges. As for 
scheduled air services, fares and charges for international scheduled flights are subject to approval 
regardless of the nationality of the airline, while those for domestic scheduled flights are subje ct to 
notification. However, in either case, the government may order a change in fares and charges if 
the treatment is unreasonably discriminatory against a particular passenger, etc.  General aviation 
is not regulated in terms of fares and charges, and ty pical examples of such operations include the 
operation of aircraft for administrative purposes and the operation of private aircraft for non -
commercial purposes.  
For airports, landing fees and other charges are set individually by the managing entity. Ple ase 
refer to ICAO Doc 7100 for information on charges at major airports in Japan.  
The ATM Center works to promote air traffic safety and to improve flight efficiency and to use 
airspace efficiently by integration of functions of Airspace Management which i s to use airspace 
efficiently and Air Traffic Flow Management which is to form smooth traffic flow.  
For more information, please refer to the following website : 
https://www.mlit.go.jp/en/kok u/content/001420932.pdf  
55. Has the Japanese Government enforced policies to regulate subsidies to the domestic air 
transport sector and restrict other countries' subsidies to the air transport sector?  WT/TPR/M/438/Add. 2 
 
- 38 - 
 
Response  
The Japanese Government hasn't enforced any policies to regulate subsidies to the domestic air 
transport sector and restrict other countries' subsidies to the air transport sector.  
56. Is there any market access restriction for foreign investment in Japan's civil aviation service 
sector s, including aircraft maintenance, passenger and freight agent services, ground services and 
computer reservation system? What are the legal bases for the regulation of the above -mentioned 
sectors and the management of market access to these sectors for fo reign investors? Are there 
restrictions of market access to civil aviation sectors other than the above -mentioned sectors? And 
what are the legal bases?  
Response  
As for aircraft manufacturing and repair services (limited to those conducted by aircraft 
manu facturers), based on the Foreign Exchange and Foreign Trade Act, prior -notifications to the 
authorities are required for inward foreign investment. Therefore, if foreign investors intend to 
acquire 1% or more of the listed shares or unlisted shares of a Ja panese company in the above 
business sector, the Foreign Exchange and Foreign Trade Act requires them to make prior -
notification.  
There are no foreign investment restrictions on passenger and freight agent services, ground 
services and computer reservation  system.  
In the civil aviation sector, other than the above, there are market access restrictions for foreign 
investment in air transport services and aerial work services. These businesses are subject to 
prior-notification under the regulations on inward direct investment, etc. in Japan based on the 
Foreign Exchange and Foreign Trade Act, and are primarily subject to the following regulations 
under the Civil Aeronautics Act.   
1. When operating air transport services as a domestic air carrier or operating a erial work services, 
a license from the Minister of Land, Infrastructure, Transport and Tourism under the Civil 
Aeronautics Act is required, but such license will not be granted if the applicant or its holding 
company, etc. falls under any of the following  categories.  
(i) any person who does not have Japanese nationality  
(ii) any foreign state or public entity or its equivalent in any foreign state  
(iii) any juridical person or body established in accordance with the laws and regulations of any 
foreign stat e 
(iv) any juridical person of which the representative is any one of those listed in the preceding 
three items or of which one -third or more of the officers are those persons or one -third or more of 
voting rights are held by those persons  
2. Any domestic air carrier and its holding companies, etc. may, when it is requested by a person 
who has obtained its shares and falls under any of the categories listed in paragraph 1 items (i) 
through (iii) to enroll or register that person's name and address in the sh areholders' list, refuse to 
enroll or register that name and address if the domestic air carrier and its holding companies, etc. 
has come to fall under item (iv) of the same paragraph by accepting that request.  
  WT/TPR/M/438/Add. 2 
 
- 39 - 
 
6  EUROPEAN UNION – FOLLOW -UP QUESTIONS  
WT/TPR/S/438 – WTO SECRETARIAT REPORT  
Paragraph 11, page 9  
11. In October 2020, Japan announced its plans to achieve net zero greenhouse gas emissions by 
2050. Moreover, in April 2021, it announced the goal of reducing emissions by 2030 to 46% fr om 
its 2013 levels. To this end, a long -term strategy under the Paris Agreement was elaborated in 
2019 and revised in 2021 to promote green innovations and finance, and an Environment 
Innovation Strategy in 2020, with action plans for each technology area.  Also in 2020, a new 
Green Growth Strategy was published.  
EU question 12  
Has Japan registered any progress in cutting emissions when implementing its strategic policies?  
Response  
Japan has been conducting annual inspections of the status of achievement of reduction targets, 
related indicators, and progress in individual measures and policies in the Plan for Global Warming 
Countermeasures.  
EU follow -up question 1  
Could Japan please elaborate of the results of its annual inspections on the achievements of the 
reduction targets and related indicators?  
Response  
Japan's total GHG emissions in FY2020 marked the 7th consecutive year of decrease and the 
emissions after r emovals by forests and other carbon sink measures, reflecting a 21.5% decrease 
compared to FY2013 as base year for reduction target.  
The detailed results of its annual inspections on the achievements of the reduction targets and 
related indicators  are pres sed in the below : (Japanese only)  
https://www.env.go.jp/press/111120.html  
For your information, on 21 April, Japan released its National Greenhouse Gas Emissions and 
Removals for FY 2021. The annual inspections is to be released later.  
https://www.env.go.jp/en/press/press_01366.html  
Paragraph 3.109, page 63  
3.109 Manufacturers of electrical and consumer products overseas may underg o conformity 
assessment and certification conducted in foreign countries by foreign -registered conformity 
assessment bodies, in accordance with relevant laws. According to the authorities, under the 
Consumer Product Safety Act, the Electrical Appliances an d Materials Safety Act, the Act on the 
Securing of Safety and the Optimization of Transaction of Liquefied Petroleum Gas, and the Gas 
Business Act, a foreign conformity assessment body needs to apply for registration with the 
Japanese Government in order t o be registered as a foreign -registered conformity assessment 
body under the Act. Upon receipt of the application, the Government shall register the foreign 
conformity assessment body as a foreign -registered conformity assessment body when the 
Government c onfirms that the foreign conformity assessment body satisfies all the provisions of 
the Act, including conformity with international standards for product certification bodies.  
EU question 30  
Could Japan provide information on whether it is only manufactur ers of electrical products and 
consumer products that can be certified by foreign -registered CABs for the Japanese market? If 
other products are allowed, please list.  
Response  
Under the Japanese legal system, manufacturers of gas appliances (for city gas) and liquefied 
petroleum gas appliances can be certified by foreign -registered conformity assessment bodies.  
EU follow -up question 2  WT/TPR/M/438/Add. 2 
 
- 40 - 
 
Could Japan please confirm that its response is exhaustive, and it means that apart from electrical 
products and consumer pr oducts only gas appliances (for city gas) and liquefied petroleum gas 
appliances can be certified by foreign -registered conformity assessment bodies. Can any other 
product be certified by foreign -registered CABs for the Japanese market.  
Response  
Certain electrical appliances, consumer products, liquefied petroleum gas appliances, and gas 
appliances (for city gas) designated under the Consumer Product Safety Act, the Electrical 
Appliances and Materials Safety Act, the Act on the Securing of Safety and the Optimization of 
Transaction of Liquefied Petroleum Gas, and the Gas Business Act are required to be certified 
through conformity assessment by a registered conformity assessment body, and all of these 
products are eligible for certification by a fo reign-registered conformity assessment body.  
Paragraph 3.216  
Japan does not pursue site -blocking as an anti -piracy tool to the same degree as other developed 
jurisdictions, largely due to concerns regarding consistency with Article 21(2) of Constitution an d 
Article 4 of the Telecommunications Business Act, relating to privacy and censorship. In 2018, the 
Government asked Internet service providers to voluntarily block three notorious manga pirate 
sites317 as an emergency measure while a panel was convened t o review potential site -blocking 
legislation. No such legislation has been presented to the Diet to date.  
EU question 38  
How does Japan rate the effectiveness of voluntary measures to block IP -infringing websites? Is 
Japan envisaging to introduce a website  blocking system comparable to other major economies?  
Response  
Legislation on site -blocking may be considered upon assessment of the damage caused by piracy 
and effects of other measures.  
EU follow -up question 3  
Could Japan provide its assessment of the e ffectiveness of voluntary measures to block IP -
infringing websites? Could Japan further explain in what circumstances it would consider legislation 
on site -blocking, and what other measures could be considered to address the issue?  
Response  
・The Japanese government did not assess the effectiveness of the voluntary measures since the 
three notorious manga pirate websites were closed immediately after announcement of the 
introduction of voluntary measures.  
・Relevant ministries and agencies implement  the necessary measures based on "the 
comprehensive measures and work schedule to combat against piracy distributed online " updated 
in April 2021. The government will carefully look into the effectiveness of those measures and the 
change of the damage to consider whether additional measure is necessary or not.  
Paragraph 4.124, page 122  
4.124. Regarding ports, in July 2022, the  Cabinet decided an annual Specific Port Facility 
Development Project Basic Plan. Based on the Plan, the MLIT is to facilitate financing JPY 83.5 
billion in the form of local government bonds that are used for developing facilities in ports and 
their surro unding industrial areas. The Plan targets 72 ports in Japan. In June 2022, Japan 
established a SDGs Partner Registration System for ports. The MLIT launched this system with a 
view to encouraging port operators to notice and visualize the impact of their o peration on SDGs. 
In addition, the MLIT is considering a certification system for decarbonization of port terminals.  
EU question 55  
Could Japan please clarify whether foreign -owned companies will be eligible to receive financing 
for developing facilities i n the targeted ports in Japan under the Specific Port Facility Development 
Project Basic Plan?  WT/TPR/M/438/Add. 2 
 
- 41 - 
 
Response  
Foreign -owned companies won't be eligible to receive financing for developing facilities on an 
annual Specific Port Facility Development Project Basic P lan. 
EU follow -up question 4  
Could Japan please explain why there is discrimination of foreign companies in terms of access to 
financing for developing facilities under the Specific Port Facility development Project Basic Plan?  
Response  
The annual Specific  Port Facility Development Project Basic Plan is a plan made to promote 
financing of local government bonds. According to the Local Autonomy Law of Japan, local 
governments can issue local bonds, but private companies including foreign companies cannot.  
  WT/TPR/M/438/Add. 2 
 
- 42 - 
 
7  UNITED STATES – FOLLOW -UP QUESTIONS  
Page 25, paragraph 2.5:  
Question 1: What coordination mechanisms exist between METI and other ministries and  
government agencies with trade policy responsibilities?  
 
Response  
Meetings and discussions are held both regula rly and ad hoc between ministries, government 
agencies and any other parties in concern.  
 
Follow -up question  
o Is there a formal process that establishes this coordination, or a body that carries out this 
coordination?  If so, please identify the process or the name of the body.  
 
Response  
There is no fixed formal process or body for such coordination. Overall coordination of trade 
policies rests with the Cabinet, and under this institutional framework take place the specific 
coordination of actors such as METI and MOFA.  
 
Question 12:  What information do pharmaceutical and medical device companies have to provide 
under this amendment?  
 
Response  
Marketing Authorization Holders are required to display the barcodes on the outside of the product 
packages , that allow healthcare professionals to access the information of the package insert.  
 
Follow -up questions  
o Is the same information required for both pharmaceutical and medical device products?  
o Does the amendment require the barcode be of a minimum/max imum size?  
o Are there flexibilities for products with packaging that is too small to display the barcode?  
 
Response  
o Yes, our barcode requirements for both pharmaceutical and medical device products are the 
same.  
o There is no requirement of the barcode size.  
o The product whose package is too small to display the barcode is allowed to show it in another 
manner such as inserting another material.  
 
Question 13:  Has there been an analysis on the impact of the amendment?  
 
Response  
In 2022, Pharmaceut icals and Medical Devices Agency (PMDA) conducted a survey of hospitals and 
community pharmacies regarding the availability of drug safety information . 
 
Follow -up questions  
o Were medical devices included in the survey?  
o If so, will the medical device and  pharmaceutical information be disaggregated when 
reporting the final analysis?  
 
Response  
It does not cover medical devices.  
 
Question 33:  Please explain if this grant was intended to improve the functioning of supply 
chains. If so, how successful has that effort been?  
 
Response  
The "Comprehensive Support Grant for Creating Strong Agriculture" is intended to provide support 
for constructing distribution centers of agricultural products necessary for joint delivery and 
fundamental facilities for farming in rural areas, and promoting pilot programs in an effort to 
develop innovative farming systems. This grant can cover supports for the improve ment of supply 
chains, including enhancement of quality and hygiene management of fresh food products, and 
optimization of logistics.  WT/TPR/M/438/Add. 2 
 
- 43 - 
 
 
Follow -up questions  
o Has Japan conducted any evaluation of supply chain improvement effects of this 
program me?  
o If so, please share the results of such an evaluation.  
 
Response  
Yes, Japan has conducted evaluation. For example, as for the support menu for wholesale 
markets, each wholesale market was required to prepare a plan for rationalization of distribution of 
food products, etc., and to submit a performance report every year during the implementation 
period. In the report submitted by wholesale markets that handle fruits and vegetables, significant 
reductions in logistics costs have been observed.  
 
Question 40:  Please explain if Japanese rice farmers can still grow table rice for exports to be 
eligible for domestic support programs. If so, what mechanisms exist to ensure that this rice is 
segregated and does not end up in the domestic table rice market?  
 
Response  
The program me is for the rice for processing and the rice for new demand, which is used for feed, 
the rice for flour, whole crop silage, early harvested rice plant, rice plant for straw and rice for new 
market development. Any of those is not distinguished wh ether it is for domestic or overseas 
markets.  
Besides those rises, the requirement of the submission of a sales contract is required to confirm 
that the rice is produced for purposes other than not for table use.  
 
Follow -up questions  
o Please confirm that farmers can receive payments under rice for new market development 
for table rice (i.e., rice virtually identical to table rice sold on the domestic market) that is 
exported.  
o Please also provide links to the relevant statutory and regulatory language de fining the 
scope of rice for new demand, including new market development.  
 
Response  
In case farmers export table rice, they cannot receive the payments under rice for new market 
development. Payments for rice for new market development is provided for ric e separately 
produced with prior distinction from table rice, whichever it is for the domestic or overseas 
markets.  
 
Please see the web site below  (in Japanese only)  
https://www.maff.go.jp/j/seisan/jyukyu/komeseisaku/attach/pdf/index -5.pdf 
 
Question 41:  Please explain what would happen if a farmer or handler tried to sell this rice into 
the domestic table rice market? Can the same rice be eligible for other uses, like rice flour or other 
processed products, or does it have to go through a pre -determined  channel based on the farmer's 
intent during planting?  
 
Response  
Regarding the rice for processing and for new demand, a sales contract is submitted to confirm 
that the rice is produced for purposes other than for table use. It is not allowed to sell the ri ce as 
table rice. Thus, if the rice is sold as such, the subsidy has to be returned and the offender is to be 
publicly announced.  
 
Follow -up questions  
o Please describe the program me requirements for the sales contracts.  
o Who are the parties to the contr acts?  
o What stages of the supply chain does the sales contract cover?  
o If table rice is to be exported would the contract with the farmer state that?  
o What documentation does MAFF require to confirm that exports have taken place in 
accordance with th e conditions of the contract?  
 
Response  WT/TPR/M/438/Add. 2 
 
- 44 - 
 
The requirements for the sales contract are as follows: (1) contracted quantity for shipment and 
planned production area of rice for processing and for new demand, (2) matters related to grade, 
(3) prohibition of div ersion to other purposes of use, and (4) penalty fees and other contractual 
measures.  
 
They are farmers who produce rice for processing and for new demand, and their users.  
 
It covers the stages from the farmers ' shipment of rice for processing and for ne w demand to the 
sale of the rice to the users.  
 
The Government does not set any restrictions on the export of table rice which is distinguished 
from rice for new market development.  
 
The Government requires users to maintain and report a shipping ledger or other records of rice 
for new market development to confirm it is used for new market development but does not 
require to distinguish between rice for the domestic or overseas markets.  
 
Question 42 : Please provide the quantity of rice exported th at received support under Rice for 
New Market Development for each year since 2018.  
 
Response  
The support for rice for new market development does not distinguish whether it is for domestic or 
overseas markets, and therefore the amount of exported rice subject to the support is not 
distinguished.  
 
Follow -up questions  
o Do the sales contracts indicate that table rice is intended for overseas markets?  
o Does MAFF keep records of the sales contracts? If not, who maintains these records?  
 
Response  
It is des cribed in the sales contract that the rice is for new market development.  
Sales contracts are kept between the contracting parties and are not kept by MAFF.  
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