WT/REG396/2  
 
14 October 2019  
(19-6619) Page: 1/14 
Committee on Regional Trade Agreements  Original: English  
 
 
ECONOMIC PARTNERSHIP  AGREEMENT BETWEEN T HE EUROPEAN UNION AN D JAPAN,  
(GOODS AND SERVICES)  
QUESTIONS AND REPLIE S 
 The following communication, dated 8 October 2019, is being circulated at the request of the 
delegations of  the European Union and Japan . 
 
_______________  
 
 
Question s from the delegation of Canada  
 
Import duties and charges, and quantitative restrictions  
 
General provisions  
 
1.1.  Paragraph 3.5  of the factual presentation states: "Article 2.8.4 provides that if a 
Party grants a more favourable tariff rate, higher quota volume or any other more 
favourable treatment than that provided under the Agreement to a third country in a 
manner that affects  the balance of either Party's market for such goods, the Parties shall 
undertake a review with a view to ensure the other Party obtains at least the same 
preference."  
 How will Parties determine whether tariff preference granted to a third country in 
an international agreement affects the balance in the European Union's or Japan's market 
of such goods?  
 
Response from the delegation of the European Union  
 
 If a Party deems that a tariff preference granted by the other Party to a third country 
undermines the  market access obtained in the Economic Partnership Agreement, this will trigger an 
immediate re -negotiation of the specific tariff lines affected.  
 
Response from the delegation of Japan  
 
 In such case s, according to Article 2.8.4 of the EU -Japan EPA , the Parties shall, with a view to 
ensuring that the other  Party obtains at least the same preference, commence such a review within 
three months of the date  of entry into force of the international agreement between the European 
Union and that third  country or  between Japan and that third country, and will conduct the review 
with the aim of  concluding it within six months of the same date .  
 
1.2.  Article 10.8: Technical specifications  of the Agreement lists conditions to respect 
when applying environment -friendly technical specifications.  
 Noting that Article X -Technical Specifications and Tender Documentation in the 
revised WTO Agreement on Government Procurement (GPA) applies, what i s the rationale 
for specifying which conditions the Parties must respect when applying environment -
friendly technical specifications?  
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  Response from the delegation of the European Union  
 
 The text goes into more detail than the GPA.  
 
Response from the del egation of Japan  
 
 GPA Article X.6 provides that "For greater certainty, a Party, including its procuring entities, 
may, in accordance with this Article, prepare, adopt or apply technical specifications to promote the 
conservation of natural resources or p rotect the environment ". In this respect, Article 10.8 of the 
EU-Japan EPA goes into more details than the GPA in specifying its technical specification based on 
the spirits of the GPA Article X.6.  
 
1.3.  Article 10.9: Test reports of the Agreement  states: "Each  Party, including its 
procuring entities, may require that interested suppliers provide a test report issued by a 
conformity assessment body or a certificate issued by such a body as a means of proof of 
conformity with the requirements or the criteria set out in the technical specifications, 
the evaluation criteria or any other terms or conditions."  
a. Noting that the GPA Article X -Technical Specifications and Tender Documentation 
applies, what is the rationale for including these more prescriptive provisions?   
Response from the delegation of the European Union  
 
 The text goes into more detail than the GPA. It highlights the legitimacy of requesting test 
reports or certificates, but links these practices to conditions. In particular, a link is made to an 
existing Agreement between Japan and the EU on mutual recognit ion of technical standards. The 
scope of that Agreement is limited at this time, but may become wider in the future.  
 
Response from the delegation of Japan  
 
 The Agreement on Mutual Recognition between the European Community and Japan, done at 
Brussels on 4 April 2001 , is effective, Article 10.9  of the EU -Japan EPA intends to make the best use 
of that Agreement.  
 
b. How is this Article implemented and under which circumstances is a test report 
required?  
Response from the delegation of the European Union  
 
 Procuring entities are free to determine whether a test report is required, provided it has to 
do with the subjec t matter of the procurement.  
 
Response from the delegation of  Japan  
 
 Procuring entities may determine whe n a test report is required, as long as  it has to do with 
the subject matter of the procurement.  
 
c. Where will the relevant information regarding the te st reports as well as the 
Parties' legislation and conformity assessment procedures and bodies be 
published?  
Response from the delegation of the European Union  
 
The Agreement does not mention the publication of relevant information.  
 
Response from the dele gation of Japan  
 
 The EU-Japan EPA  does not provide  the publication of relevant information.  
 
 
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  1.4.  Article 10.10: Environmental conditions  of the Agreement states: "Procuring entities 
may lay down environmental conditions relating to the performance of a procurement, 
provided that those conditions are compatible with the rules established by this Chapter 
and are indicated in the notice of in tended procurement or in another notice used as a 
notice of intended procurement or tender documentation."  
 Noting that the GPA Article X -Technical Specifications and Tender Documentation 
applies, what is the rationale for including these more prescriptive  provisions?  
 
Response from the delegation of the European Union  
 
 The Agreement clarifies that environmental conditions are a legitimate and indeed 
recommendable practice. They should however not be used with the intention of discriminating 
suppliers fro m the other Party.  
 
Response from the delegation of Japan  
 
 As the GPA Article X.6 provides that  "For greater certainty, a Party, including its procuring 
entities, may, in accordance with this Article, prepare, adopt or apply technical specifications to 
promote the conservation of natural resources or protect the environment ", the Article 10.10 of the 
Agreement provides more specific and concrete  conditions based on the spirits of the GPA Article  X.6. 
 
1.5.  Article 10.13: Collection and reporting of statistics  of the Agreement states: "Each 
Party shall communicate to the other Party available and comparable statistical data 
relevant to the procurement covered by Part 2 of Annex 10."  
 Will the statistics be published on an official website and will they be accessi ble to 
the public?  
 
Response from the delegation of the European Union  
 
 The Agreement does not contain any obligation for the Parties to publish these statistics, which 
are additional to the reporting requirements of the GPA.  
 
Response from the delegatio n of Japan  
 
 The EU-Japan EPA does not contain any more obligation for the Parties to publish these 
statistics  than the reporting requirements of the GPA.  
 
1.6.  Article 10.15: Cooperation  of the Agreement states: "The Parties shall endeavour to 
cooperate with a view to achieving enhanced understanding of their respective 
government procurement markets. The Parties also recognise that the involvement of 
related industries of the Parties, th rough means such as dialogues, is important for that 
purpose."  
 What are the key priorities and projects that the Parties plan to undertake to fulfil 
their commitments under Article 10.15?  
 
Response from the delegation of the European Union  
 
 The key project currently most in view is the Railways Industrial Dialogue between the two 
parties. Other such events might be organi zed in the future.  
 
Response from the delegation of Japan  
 
 In light of the Article 10.15 of the EU -Japan EPA,  Japan and the EU con duct EU-Japan Railway 
Industrial Dialogue.  
 
 
 
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  Question from the delegation of the Separate Customs Territory of Taiwan, Penghu, 
Kinmen, and Matsu  
 
Provisions on trade in goods  
 
Bilateral safeguards  
 
1.7.  Paragraph  3.54: Article 5.5 sets out notification obligations for the Party intending 
to impose a safeguard measure. Consultations on and possible compensation for a 
bilateral safeguard are provided for in Article 5.6. Provisional measures are permitted, 
under certain conditions, in Article 5 .7 for up to 200 days as in Article 6 of the WTO 
Agreement on Safeguards.  
 Are notification documents as set out in Articles 5.5 and 5.7.2 regarding bilateral 
safeguard measures  available to the public?  If not, can a Member of the WTO other than 
Parties to  this Agreement gain access to all the information? Can a Member of the WTO 
other than Parties to this Agreement apply for access to part of the information, such as 
evidence regarding a crisis in the domestic industry, evidence regarding serious injury or  
threat of serious injury to the domestic industry, or details of the provisional measure?  
 
Response from the delegation of the European Union  
 
 The obligations of notification under Article 5.5. and 5.7.2. are strictly bilateral. The findings 
of the inves tigation should however be publis hed according to Article 5.4.1.  and therefore available 
to other WTO Members at this stage.  
 
Response from the delegation of Japan  
 
 The Government of Japan publishes  the information on findings of investigations  in its official 
gazette. Such information includes, for example, the decision of the initiation, the description of the 
product involved, the proposed date of introduction and expected duration, and description of the 
proposed measures.  
 
Question s from the delegation of Switzerland  
 
Competition policy  
 
1.8.  Article 11.5 (Procedural fairness) provides that each Party shall respect the principle 
of procedural fairness.  
 Could the Parties provide further precision on the field of application of t his 
provision? Which procedural rules are included in this provision?  
 
Response from the delegation of the European Union  
 
 Under Article 11.6 of the EU -Japan EPA both sides have taken a commitment to respect the 
principles of procedural fairness in the en forcement of their respective competition legislations as 
referred to in Article 11.3. For the EU this means competition provisions of the Treaty of the 
Functioning of the European Union together with secondary legislation implementing the Treaty 
provision s on competition.  
 
Response from the delegation of Japan  
 
 Under Article 11.6 of the EU -Japan EPA , each Party shall treat enterprises in a fair manner, 
irrespective of the nationality or type of ownership of the enterprises.  For Japan, this procedures of 
the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade and its implementing 
regulations will be referred.  
 
1.9.  Article 11.8 (Enforcement cooperation), paragraph 2, foresees that competition 
authorities ma y exchange or otherwise communicate information, within the framework 
of the Agreement of 2003 between the Parties concerning cooperation on anticompetitive 
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   Does it mean the Parties could exchange confidential information, and if yes, could 
they exchange it even without the consent of the undertakings concerned?  
 
Response from the delegation of the European Union  
 
 The Agreement of 2003 between the Parties con cerning cooperation on anticompetitive 
activities, which the EU -Japan EPA refers to, allows the competition authorities of  the Parties to 
exchange  confidential information, if the persons, who have provided confidential information in 
connection with enfor cement activities of the Parties, consent to such exchange.  
 
Response from the delegation of Japan  
 
 The Agreement between the European Community and the Government of Japan concerning 
cooperation on anticompetitive activities, done at Brussels on 10 July 2003, which the EU -Japan EPA 
refers to, allows the competition authorities of the Parties to exchange confidential information, if 
the persons, who have provided confidential information in connection with enforcement activities 
of the Parties, consen t to such exchange (See Article 4.4 of that Agreement).  
 
Questions from the delegation of Thailand  
 
Provisions on trade in goods  
 
Liberalization s chedule  
 
1.10.   Paragraph 3.12: In their respective Annex 2 -A Schedules the Parties have agreed 
the following staging for tariff reductions in certain goods. (…)  
• Goods in category "X" are excluded from reduction or elimination commitments; 
(…) 
• Goods in categories "Xb", "Xq1, "Xq2" and "X" are exempt from reduction and 
elimination commitments; (…)  
 Accord ing to Annex 2 -A, the Parties have agreed to reduced or eliminate tariff of 
goods divided in categories. There are goods in the category "X" that are excluded from 
reduction or elimination commitments. Furthermore, there are goods in categories "Xb", 
"Xq1" , "Xq2" and  "X", which are also exempt from reduction and elimination 
commitments.  
 
 Please clarify why goods exempted from reduction and elimination commitments 
are divided into 4 categories, "X", "Xb", "Xq1", and "Xq2". What are the criteria used to 
distinguish one from another?  
 
Response from the delegation of the European Union  
 
 The details of the category "X" of goods that are excluded from reduction or elimination 
commitments are described under section A of part 3 of Annex 2 -A. They refer to tariff lines excluded 
from any commitment. The sub -letters or figures give additional information:  
 
 "Xb" products remain at the base rate; for "Xq1" or "Xq2" products there is a tariff rate quotas 
set out either in Japan's Schedule to the WTO Agreement, or by relevant cabinet orders of Japan; 
and "X" products do not have specific additional information.  
 
Response from the delegation of Japan  
 
 Commitments of exclusion in each category are defined as follows : 
 
- Customs duties on originating goods classified under the tariff lines indicated with "Xb" shall 
be excluded from any commitment of tariff eliminati on or reduction, and remain at the base 
rate. 
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  - Originating goods classified under the tariff lines indicated with "Xq1", for which tariff rate 
quotas are set out in Japan 's Schedule to the WTO Agreement , shall be excluded from any 
tariff commitment under  this Agreement.  
 
- Originating goods classified under the tariff lines indicated with "Xq2", for which tariff rate 
quotas are set out by relevant cabinet orders of Japan , shall be excluded from any tariff 
commitment under this Agreement.  
 
- Originating go ods classified under the tariff lines indicated with "X" shall be excluded from any 
tariff commitment referred to in paragraph 1 of Part 1 of Annex 2 -A and subparagraphs (a) to 
(yy) of paragraph 1 of Section A of Part 3 of Annex 2 -A. 
 
1.11.   Paragraph 3.16: Table  3.2 shows the EU's tariff elimination by HS section. The 
87 lines excluded from tariff elimination are found in HS Sections I (live animals), 
II (vegetable products) and IV (prepared food). These Sections (I, II, and IV) correspond 
to HS Chapters 02, 07, 08, 10, 11, 18, 19, 20, 21 and 22 Average tariffs on the lines 
remaining subject to duties range from 4.9% for HS Section IV to 10.3% for HS  Section  I. 
Tariff liberalization by HS Chapter set out in Chart 3.1 shows that preferential duties for 
imports from Japan are lower than the corresponding MFN average duties in Chapters 18 
(6% compared to the average MFN rate of 8%), 19 (5% and 6.8%) and 21 (3.8% and 
8.7%). Chapters 7, 8 and 20 contain tariff lines under the entry price system  while 
Chapter  11 cont ains specific duties.  
 Please explain the "entry price system" used for tariff lines under Chapter 7, 8 and 
20 and its difference from ad valorem  and specific duties.  
 
Response from the delegation of the European Union  
 
 In accordance with EU WTO commitmen ts, the entry price system applies to a limited number 
of fruits, vegetables and products thereof like some juices (please refer to Annex 2 of Commission 
Regulation (EC) No 1549/2006 of 17 October 2006 amending Annex I to Council Regulation (EEC) 
No 2658/8 7 on the tariff and statistical nomenclature and on the Common Customs Tariff1). 
 
 It consists in a two -tiered tariff. When the border price of imports into the EU is above the 
entry price for a product concerned, the said product is subject to an ad valor em tariff, whereas 
imports priced below the entry price level must pay a specific tariff on top of the ad valorem  tariff. 
The amount of the specific tariff depends on the relationship between the entry price level and the 
border price for the shipment: the  cheaper is the product, the higher is the specific tariff applied, 
with the aim to obtain a resulting price equal to the entry price. Thus, when the ratio border 
price/entry price ranges between 92% and 100%, the importer pays the difference between them 
(rounded in 2% steps). If the rate is lesser than 92%, the specific duty levied is a maximum tariff 
equivalent (MTE) according to WTO commitments.  
 
 To ease the implementation of the system, the European Commission calculates and publishes 
the Standard Imp ort Value (SIV) each day for relevant products and origin, as a valuation of the 
border price of imports. Details of the calculation of the SIV are laid down in Commission Regulation 
(EC) No 3223/94 of 21 December 1994 on detailed rules for the application  of the import 
arrangements for fruit and vegetables Regulation 3223/94 .2 
 
Finally, applicable entry price levels, ad valorem  and different duties are fixed for a said 
product according to the season in the year. Some products may even not be subject to the entry 
price system during certain periods in the year.  
 
Response from the delegation of Japan  
 
 Entry Price System  is the EU system.  
 
 
                                                
1 OJ L 301, 31.10.2006, p. 1.  
2 OJ L337, 24.12.1994, p. 66. Regulation as last amended by Regulation (EC) No 1212/2007 (OJ L 274, 
18.10.2007, p. 7).  
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  Export duties and charges, and quantitative restrictions  
 
1.12.   Paragraph 3.42: Article 2.17, on export (and import) licensing procedures restates 
the Parties obligations under the Agreement on Import Licensing  in respect of goods listed 
in Annex 2 -B to the Agreement. The Agreement on Import Licensing is incorporated i nto 
the Agreement mutatis mutandis.  
 Please specify the obligations under the Agreement on Import Licensing that are 
also applicable to export licensing procedures under Article 2.17.  
 
Response from the delegation of the European Union  
  
 Paragraph  2 of Ar ticle 2.17 of the EU -Japan Economic Partnership Agreement provides that:  
 
 "Each Party shall adopt or maintain export licensing procedures in accordance with 
paragraphs  1 to 9 of Article 1 and with Article 3 of the Agreement on Import Licensing Procedures.  
A Party may adopt or maintain export licensing procedures in accordance with Article 2 of the 
Agreement on Import Licensing Procedures. To that end, those provisions of the Agreement on 
Import Licensing Procedures are incorporated into and made part of this Agreement, mutatis 
mutandis, and shall apply to export licensing procedures between the Parties. " 
 
 The above text of Article 2.17 states that both Parties will apply to their export licensing 
procedures the following provisions of the GATT 1994 Agree ment on Import Licensing Procedures: 
paragraphs  1–9 of Article 1,  Articles 2 and 3.  
 
 As mentioned in the second sentence of the above -quoted Article 2.17, these three provisions 
on Import Licensing Procedures shall apply also to export licensing procedure s between the parties.  
 
Response from the delegation of Japan  
 
 Paragraphs 1 to 9 of Article 1 and Article 3 of the Agreement on Import Licensing Procedures  
can be referred .  
 
Special safeguards  
 
1.13.   Paragraph 3.56: Section C, Sub -section 1 of Annex 2 -A sets out the notes for the 
use of agricultural safeguard measures for Section C, including (a) the originating 
agricultural goods that may be subject to agricultural safeguard measures pursuant to 
paragraph 2 of Section A; (b) the trigger levels for applyi ng such measures; and (c) the 
maximum rate of customs duty that may be applied in each year for each such good. 
Sub-section 2 of Section C sets out agricultural safeguard measures for beef, 
sub-sections  3 for pork, and 4 for processed pork , 5 for whey prot ein concentrate, 6 for 
whey powder, 7 for fresh oranges, and 8 for race horses (see Table 3.5). 22 Under Section 
C, Japan may, as an agricultural safeguard measure, increase the rate of customs duty on 
an originating agricultural good to a level not exceed ing the lesser of (a) the most -
favoured -nation applied rate of customs duty in effect at the time of the application of the 
agricultural safeguard measure; (b) the most -favoured -nation applied rate of customs 
duty in effect on the day immediately preceding  the date of entry into force of this 
Agreement; and (c) the rate of customs duty set out in this Section.  
 According to paragraph 3.56 and footnote 22, it is stated that the agricultural 
safeguard measures will apply to pork "SG2 (pork)", however "SG2" is  not listed in 
Table  3.5: depicting Japan's quantity and price -based agricultural safeguards. Please 
clarify how the agricultural safeguard measures apply to pork.  
 
Response from the delegation of the European Union  
 
 SG2 applies to certain pork tariff lines. See below Table 3.5. , which has been amended for 
more clarity. Description on how the agricultural safeguard applies to pork is done in sub -section 3 
of section C of part 3 of Annex 2 -A.  
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  Table 3.5: Japan quantity and price -based agricultura l safeguards  
HS line number  
(Product description)  Safeguard  Timeframe  Trigger  Additional duty  
020110.000, 020120.000, 
020130.010, 020130.020, 
020130.030, 020130.090, 
020210.000, 020220.000, 
020230.010, 020230.020,  
020230.030, 020230.090  
020610.020, 020629020  Additional 
duty 15 years 
from entry 
into force  
During any 
four 
consecutive 
years after 
year 16, 
Japan shall 
not apply 
any further 
agricultural 
safeguard 
measures.  43,500MT 
(year 1) to 
50,500 MT 
(year 10)  
additional 385 
MT per year 
(years 11 -15), 
than previous 
year plus 
770MT (year 
16 onwards? ) SG1* Year 1: 38.5% to 18% 
year 15 then 1% less or same 
rate depending on whether 
measure applied in previous 
year;  
SG1** same but 39% first year  
020311.020, 020311.030, 
020311.040, 020312.021, 
020312.022, 020312.023,  
020319.021, 020319.022,  
020319.023, 020321.020,  
020321.030, 020321.040,  
020322.021, 020322.022,  
020322.023, 020329.023, 
020329.021, 020329.022, 
020630.093, 020630.092, 
020630.099, 020649.092, 
020649.093, 020649.099  Additional 
duty 11 years  The level is 
decided under 
the conditions 
set out in sub -
section 3.1.  SG2 
The additional duty is decided 
under the conditions set out in 
sub-section 3.2.  
021011.010, 021011.020, 
021012.010, 021012020,  
021019.010, 021019.020, 
021099.011, 021099.019, 
160241.011, 160241.019, 
160242.011, 160242.019, 
160249.210, 160249.220.  Additional 
duty 11 years  Years 1 -2 
115% of 
annual 
aggregate 
imports (3 yr 
maximum) to 
121% in year 
11 SG3 85% of base rate from year 
1 to 45% in year 11  
040410.129, 040410.139, 
040410.0149, 040410.169, 
040410.179, 040410.189  Additional 
duty 20 years  
During any 
three 
consecutive 
years after 
year 21, 
Japan shall 
not apply 
any further 
agricultural 
safeguard 
measures.  2000 MT 
(year 1)  
to 7,438 MT 
(year 20), 
from year  21 
previous 
trigger level 
plus 573 MT.  SG4* 29.8% plus 120 yen/kg in 
year 1 to 13.4% plus 75 yen/kg 
in year 20, then reduced by 
1.9% plus 10.7 yen/kg (if not 
applied in previous year), or 1% 
plus 5 yen/kg (if applied in 
previo us year.)   
040410.129, 040410.139, 
040410.149, 040410.169, 
040410.179, 040410.189  Additional 
duty 15 years  
During any 
two 
consecutive 
years after 
year 16, 
Japan shall 
not apply 
any further 
agricultural 
safeguard 
measures.  2300 MT in 
year 1 to 
5,190 in year 
15, from  
year 16 
previous 
trigger level 
plus 458 MT  SG4** 29.8% plus 75 yen/kg 
(year 1), to 13.4% plus 30 
yen/kg from year 11 -15, then 
reduced by (if not applied in 
previous year) 2% plus 4 
yen/kg, or (if applied in 
previous year) 1% plus 2 
yen/kg  
080510.000, - If imported 
from 1 December to 31 
March  Additional 
duty 7 years  If imports 
exceed 2000 
MT SG5 28% (from year 1 to 4), to 
20% (from year 5 to7)  WT/REG396/2  
 
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  HS line number  
(Product description)  Safeguard  Timeframe  Trigger  Additional duty  
010129.290  Additional 
duty 15 years  If the CIF 
import price 
per good is 
less than 90% 
of the trigger 
price (the 
trigger price 
shall be that 
agreed under  
paragraph 4, 
or 10.7 million 
yen if no 
specific 
agreement.)  SG6 30% of the difference 
between MFN duty and the duty 
under the Agreement (i f CIF 
import price greater than 10% 
but less than or equal to 40% of 
the trigger price), or 50% of the 
difference between the MFN 
duty and the duty under the 
Agreement (if difference 
between CIF import price 
greater than 40% but less than 
or equal to 60%).  70% of the 
difference between the MFN 
duty and the duty under the 
Agreement (if difference 
greater than 60% but less than 
or equal of 75% of the trigger 
price); and the difference 
between the MFN duty and duty 
under the Agreement (if 
difference between CI F import 
price and trigger price is greater 
than 75%)  
Source:  The Agreement.  
 
Response from the delegation of Japan  
 
 Pork products classified under "SG2" are from HS 020311.020 to 020649.099 listed in the 
second row of Table 3.5 . 
 
Anti-dumping and countervailing measures  
 
1.14.   Paragraph 3.63: Article 5.13 contains a public interest provision which requires the 
investigating authority of the importing Party to provide opportunities for producers in 
the importing Party, importers and indus trial users of the good and representative 
consumer organizations to submit their views in writing in relation to the anti -dumping 
or countervailing duty investigation including concerning the potential impact of a duty 
on their situation.  
a. According to Art icle 5.13 "Consideration of public interest", Thailand would like 
the European Union and Japan to clarify the public interest provision procedures 
as how and when to provide opportunities for producers in the importing Party, 
importers and industrial users  of the good and representative consumer 
organizations to submit their views in writing in relation to the anti  -dumping or 
countervailing duty investigation including concerning on the potential impact of 
a duty on them. Will this topic be mentioned in th e notice  of the initiation  of an 
anti-dumping or a countervailing  investigation? What is the time period for 
interested parties to present their opinions?  
Response from the delegation of the European Union  
 
 The EU domestic laws and regulations to which Ar ticle 5.13 makes reference are Regulation 
(EU) 2016/1036 of the European Parliament and of the Council of 8 June 2016 on protection against 
dumped imports from countries not members of the European Union3, in particular Article 21 thereof 
for anti -dumping investigations, and Regulation (EU) 2016/1037 of the European Parliament and of 
the Council of 8 June 2016 on protection against subsidised imports from countries not members of 
the European Union4, in particular Article 31 thereof for countervailing duty investigations. In line 
with the abovementioned legislation, the invitation and the procedures for the interested parties to 
provide their views for the assessment of the public interest always forms part of the notice of 
                                                
3 https://eur -lex.europa.eu/eli/reg/2016 /1036/oj/eng . 
4 https://eur -lex.europa.eu/legal -content/EN/TXT/?qid=1568378840496&uri=CELEX:32016R1037 . WT/REG396/2  
 
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  initiation. The deadline for provi ding such information is typically set to 37 days of the date of 
publication of the relevant notice of initiation, unless otherwise specified.  
 
Response from the delegation of Japan  
 
 In Japan, "THE GUIDELINES FOR PROCEDURES RELATING TO ANTI-DUMPING DUTY " and "THE 
GUIDELINES FOR PROCEDURES RELATING TO COUNTERVAILING DUTY " provide that the time period 
for interested parties to present their opinions is for four months from the beginning of the 
investigation.  
 
b. According to Article 5.14 "Ant i-dumping investigation", please clarify whether 
the notification for the initiation of an anti -dumping investigation at least 10 days 
in advance of the initiation of such investigation would be the practice only 
between the European Union and Japan under this Agreement or  a general 
practice for all WTO Member  Countries.  
Response from the delegation of the European Union  
 
 The deadline of 10 days before initiation for the notification foreseen under Article 5.14 is 
applicable only between the Parties to the  agreement.  
 
Response from the delegation of Japan  
 
 The said "at least 10 days " practice under Article 5.14 of the EU -Japan EPA is applied only 
between the European Union and Japan . 
 
Subsidies and State -aid 
 
1.15.   Paragraph 3.69: Article 12.7 establishes that legal or other arrangements whereby 
a government or public body is responsible for guaranteeing debts or liabilities of an 
enterprise without any limitation as to the amount or duration of a guarantee 
(Article  12.7(a)) and subsidies for re structuring an ailing or insolvent enterprise without 
the enterprise having to prepare a credible restructuring plan (Article 12.7(b)) that have 
or could have a significant negative effect on trade or investment between the Parties are 
prohibited subsidies  under the Chapter.  
 Article 12.7 specifies 2 cases of prohibited subsidies under the Agreement. Please 
clarify how the 2 cases fall within the scope of the prohibited subsidies established under 
the WTO Agreement on Subsidies and Countervailing Measures ( export and local content 
subsidies)  
 
Response from the delegation of the European Union  
 
 The two types of subsidies specified in the Agreement are covered by the ASCM, but are not 
prohibited by the ASCM. The ASCM only prohibits two other types of subsidi es (subsidies related 
export performance and local content) . 
 
 The two prohibitions specified in the Agreement apply to Japan and the EU in addition to the 
prohibitions set in the ASCM.  
 
Response from the delegation of Japan  
 
 The two cases of prohibited subsidies  specified in the EU -Japan EPA apply to the Parties in 
addition to prohibitions set in the WTO Agreement on Subsidies and Countervailing Measures.  
 
Provisions on trade in services and investment  
 
1.16.   Paragraph 4.3:  The Parties affirm their right to adopt regulatory measures 
necessary to achieve legitimate policy objectives, such as protection of public health, 
safety, the environment or public morals, social or consumer protection or the promotion 
and protection of c ultural diversity (Article  8.1.2). They agree that the Chapter does not 
apply to measures affecting natural persons of a Party seeking access to the employment WT/REG396/2  
 
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  market of the other Party, nor to measures regarding nationality or citizenship, residence 
or em ployment (Articles 8.1.3 -4). 
 Would there be an opportunity for either local or foreign investors, who might be 
affected from the regulatory measures, to participate in the process or to be informed 
before adopting them? What would be the process? Please e laborate.  
 
Response from the delegation of the European Union  
 
 Such issues are covered for instance in chapter 17 (Transparency).  
 
Response from the delegation of Japan  
 
 Such issues are covered in Chapter 17 (Transparency). Other than that, regulatory m easures 
may be publicly available through the implementation of Articles 8.29 -8.32 (Domestic regulation)  
and 8.33-8.35 (Provisions of general applications).  
 
National treatment and MFN  
 
1.17.   Paragraph 4.14: Concerning investment, Article 8.8 provides that each Party shall 
accord to entrepreneurs and covered enterprises of the other Party treatment no less 
favourable than it accords, in like situations, to its own entrepreneurs and their 
enterp rises in its own territory with respect to establishment and operation in its territory 
(Article 8.8.1 and 8.8.2). Article 8.8.3 provides that the Parties may establish statistical 
or information requirements in connection with the covered enterprises prov ided that 
such requirements do not constitute a means to circumvent the Party's national treatment 
obligations.  
 Under area concerning investment, it contains "in like situations" while it has not 
been mentioned in the area concerning cross border trade i n services. Please clarify 
whether the obligation concerning investment is designed to be narrower than cross 
border trade in services or not as there is no qualifier in comparison for cross border trade 
in services "in like situations".  
 
Response from the  delegation of the European Union  
 
 The comparison is qualified in both cases. The non -discrimination provisions in investment 
liberalization section use the "like situations " test to reflect the usual approach in investment 
agreements based on the existin g treaty practice and case law. The non -discrimination provisions in 
the section on cross border trade in services use the "like services/like suppliers " test to reflect the 
GATS approach.  
 
Response from the delegation of Japan  
 
 Investment section and CBT S (cross border trade in services ) section have different scopes 
respectively so that it is not easy to find whether one is narrower or not. Generally speaking, the 
term "like services or service suppliers " in NT clause of CBTS section has the function to narrow its 
scope, which is same as the GATS approach.  
 
MFN and horizontal commitments  
 
1.18.   Paragraph 4.31: Annex I also sets out MFN exemptions by individual EU Member 
States for the provision of certain business services (Legal services, patent agents, 
accounting, auditing, taxation advisory services, architecture, retail of pharmaceuticals, 
medical services, translation and interpretation, engineering, technical testing and 
analysis services, veterinary services and real estate services) and som e road transport 
services (freight and passengers). Reservations are also made with respect to existing 
measures applicable to the acquisition and use of land.  
 Could you please elaborate more on reservations made with respect to existing 
measure applicabl e to "the use of land"?  
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  Response from the delegation of the European Union  
 
 In Annex I there are reservations on the "acquisition of real estate " where the existing 
measures are described and full references are provided with regard to the legislation in  place in 
each of the concerned EU Member States, i.e. Latvia, Romania, Germany and Spain.  
 
Sector specific commitments  
 
1.19.   Table  4.2 Japan: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)  
Sector /Sub -sector   FTA   
GATS  Trade in services  Investment  
 Compared 
to GATS  Existing 
measures 
(Annex I)  Reserved 
sectors  
(Annex II)  Existing 
measures  
(Annex I)  Reserved 
sectors  
(Annex II)  
1. BUSINESS SERVICES        
A. Professional services  Partial  Similar  Partial  Partial  Partial  Partial  
B. Computer and related  
services  Full Same  Full Full Full Full 
C. Research and 
development  Partial  Improved  Partial  Partial  Partial  Partial  
D. Real estate  Partial  Similar  Partial  Partial  Partial  Partial  
E. Rental/Leasing services 
without operators  Partial  Similar  Partial  Partial  Partial  Partial  
F. Other  Partial  Similar  Partial  Partial  Partial  Partial  
2. COMMUNICATION 
SERVICES        
A. Postal  - Improved  Full Partial  Full Partial  
B. Courier  - Improved  Full Full Full Full 
C. Telecommunication  Partial  Improved  Partial  Partial  Partial  Partial  
D. Audiovisual  Partial  Excluded  Excluded  Excluded  Excluded  Excluded  
E. Other  - Improved  Partial  Partial  Partial  Partial  
 
 According to the Table 4.2, Japan excluded audiovisual services sub -sector from its 
schedule of specific commitments, whereas Japan has partially committed this sub -sector 
in Japan's schedule of commitment under the GATS. Please clarify the reason and whet her 
Japan has taken a step back on the liberalization regarding audiovisual services.  
 
Response from the delegation of the European Union  
 
 In the EU -Japan EPA, audiovisual services are carved -out in a reciprocal manner through a 
dedicated provision in th e text of the Agreement, which was based on the EU approach. See Section 
B Article 8.6.2 (c) and Section C Article 8.14.2 (d).  
 
Response from the delegation of Japan  
 
 Audiovisual service s are excluded from the scope of the EU-Japan  EPA pursuant to 
Article s 8.6.2 (c) and 8.1 4.2(d) as a result of the negotiations.  
 
Domestic regulation  
 
1.20.   Paragraph 4.70: Article 8.33, in sub -section 2 of section E, requires each Party to 
ensure that all measures of general application are administered in a reasonable, 
objective and impartial manner. This provision does not apply to measures listed in 
Annexe s I and II of Annex 8 -B to the Agreement (existing and future non -conforming 
measures) (Article 8.33.2). Article 8.34 requires each Party to maintain judicial, arbitral 
or administrative tribunals or procedures which provide for a prompt review of 
administ rative decisions that affect cross border trade in services, establishment or 
operation or the supply of a service through the presence of a natural person.  
 What are the existing judicial, arbitral or administrative tribunals or procedures 
which provide for a prompt review of administrative decisions, and how can the investors 
get accessed to them? Please clarify.  
 
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  Response from the delegation of the European Union  
 
 Reference is made to the tribunals and procedures in place in each EU Member State accor ding 
to its domestic legislation, as well as the ones available at the EU level based on EU law and in 
particular the Treaty on the Functioning of the EU (see for instance article 263).  
 
Response from the delegation of Japan  
 
 For Japan, reference is made to the tribunals and procedures in place pursuant to relevant 
provisions under the Administrative Case Litigation Act, the Administrative Complaint Review Act 
and other laws and regulations of Japan.  
 
General provisions of the agreement  
 
Intellectual prope rty rights  
 
1.21.   Paragraph 5.55: Sub -section 3, of Section B, Articles 14.22 -30 concerns 
Geographical Indications (GIs). Article 14.22 provides a definition of GIs which applies to 
the recognition and protection of GIs for wines, spirits and other alcoholic beverages as 
well as agricultural products which originate in the Parties.59 In Annex 14 -A the Parties 
list their laws concerning GIs (EU in Annex 14 -A Part 1, Japan in Part 2).  
 Thailand would like to seek clarification on how the European Union  and Japan 
protect non -agricultural GIs products originating in the territories of the Contracting 
Parties of the Economic Partnership Agreement between the European Union and Japan 
(Goods and Services).   
 
Response from the delegation of the European Union  
 
 As stated in paragraph  3 of Article 14.22  of the Agreement, each party protects only GIs that 
fall under the scope of their legislation listed under Annex 14 -A. 
 
Response from the delegation of Japan  
 
 For Japan, the competent authority protects GIs products for wine, sprits and other alcoholic 
beverages ( "liquor ") originating in the EU by the administrative action such as direction, public 
notice, order, penalty and revocation of liquor licen ce in accordance with its relevant laws and 
regulations.  
 
 In case the producer or distributor  uses GIs for liquor illicitly, the competent authority: 
(a) makes a direction to stop illicit use of GIs; (b)  if the user concerned does not stop illicit use, 
notices to the public or orders to stop illicit use of GIs; (c) if the user concerned does not stop illicit 
use, imposes penalty. Once the penalty is imposed on the producer or the distributor , the district 
director of the tax office may revoke liquor licen ce of the producer or the distributor .  
 
1.22.   Paragraph 5.56: Article 14.23 provides that each Party shall establish or maintain 
a system for the registration and protection of GIs in its territory. Article 14.2 4 concerns 
the lists of GIs that are annexed to the  Agreement. Articles 14.24.1 and 2 provide for an 
opposition procedure in relation to each Party's list of GIs, after which each Party will 
protect the GIs set out in the other Party's list. Each Party sha ll, in respect of GIs of the 
other Party, provide the legal means for interested Parties to prevent in its territory the 
use of a GI identifying a good for a like good not meeting the applicable requirement of 
specifications of the GIs (Article 14.25.1(a)) . Article 14.28 requires each Party to 
authorize its competent authorities to take appropriate measures to protect GIs ex officio 
or on request of an interested Party. Article 14.29 deals  with exceptions, and it allows to 
maintain "prior use" of a GI that is listed in Annex 14 -B as a GI of the other Party, which 
may remain for a transitional period of maximum 5 or 7 years, depending on the goods. 
Articles 14.29.2 -5 concern the conditions for transitional use of the concerned GI.  
 Please clarify if the Agreement has any mechanism for updating changes made to 
the list of GIs as annexed to the Economic Partnership Agreement between the European 
Union and Japan (Goods and Services).  WT/REG396/2  
 
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  Response from the delegation of the European Union  
 
 The provision for amendment  of the lists of GIs are in Article 14.30 of the Agreement.  
 
Response from the delegation of Japan  
 
 The provisions regarding amendment of the lists of GIs are in Article 14.30 of the EU -Japan 
EPA.  
 
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