RESTRICTED  
  
WT/TPR/G/397  
22 January 2020  
(20-0550) Page: 1/18 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY  
JAPAN 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Japan  is 
attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Japan . WT/TPR/G/397 • Japan  
 
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Contents  
1 TRADE AND ECONOMIC  ENVIRONMENT ................................ ................................ ... 3 
1.1  Japan's  Economic  Environment  ................................ ................................ ......................  3 
1.2  Trends  in Foreign  Trade  ................................ ................................ ................................  3 
1.3  Trends  in Foreign  Direct Investment  ................................ ................................ ..............  3 
2  TRADE AND INVESTMEN T POLICY  ................................ ................................ ...............  4 
2.1  Overview  ................................ ................................ ................................ ....................  4 
2.2  WTO ................................ ................................ ................................ ..........................  5 
2.2.1   Rule setting  ................................ ................................ ................................ .............  5 
2.2.2   Dispute  settlement  ................................ ................................ ................................ .... 5 
2.2.3   Development  ................................ ................................ ................................ ............  6 
2.3  FTA/EPAs  ................................ ................................ ................................ ....................  6 
2.4  Other Regional/Bilateral Arrangements  ................................ ................................ ...........  9 
2.4.1   Asia-Pacific Economic Cooperation (APEC)  ................................ ................................ ... 9 
2.4.2   Asia-Europe Meeting (ASEM)  ................................ ................................ ......................  9 
2.4.3   Japan's bilateral activities  ................................ ................................ ..........................  9 
2.5  Investment Policy  ................................ ................................ ................................ ...... 11 
2.5.1   Outlook ................................ ................................ ................................ .................  11 
2.5.2   Investment agreements ................................ ................................ ...........................  12 
3  TRADE AND DEVELOPME NT ................................ ................................ .......................  12 
3.1  Aid for Trade  ................................ ................................ ................................ .............  12 
3.2  Generalized  System  of Preferences (GSP)  ................................ ................................ ..... 13 
4  JAPAN'S DOMESTIC PO LICIES  ................................ ................................ ...................  13 
4.1  Abenomics  ................................ ................................ ................................ ................  13 
4.2  Intellectual  Property  Rights  ................................ ................................ .........................  14 
4.3  Financial Reform ................................ ................................ ................................ ........  14 
4.4  Competi tion Policy  ................................ ................................ ................................ ..... 16 
4.5  Current Situation and Measures for Radioactive Materials in Foods  ................................ .. 17 
 
 
  WT/TPR/G/397 • Japan  
 
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1 TRADE  AND ECONOMIC  ENVIRONMENT  
1.1  Japan's  Economic  Environment  
1.1.  The Japanese economy is recovering at a moderate pace. The private consumption and 
business investment are on the increase, supported by continued improvements in the employment 
and income situation and high corporate profits. However, due to the declining  global demand for 
IT-related goods and slowdown of the Chinese economy exports in certain sectors remain weak since 
2018. As a consequence, industrial  production has been in a weak tone. Further attention shall be 
given to international trade issues and a mbiguous economic trends and policies abroad, including 
the prospect of the Chinese economy.  
1.2.  In addition, as the Japanese economy recovers and the issue of low birth rate and longevity 
exacerbate, there is a rising concern of labor shortage in private sec tors. In order to sustain and 
enhance domestic market demands, the virtuous cycle of increasing wage to generate private 
consumption becomes a key factor. As a means to create such virtuous cycle, it is important to 
improve productivity of limited human re sources through innovation and human -capital investment . 
1.2  Trends  in Foreign  Trade  
1.3.  In 2018, the value of exports from Japan increased to JPY 81.5 trillion by 4.1% compared to 
the previous year and that of imports to Japan increased to JPY 82.7 trillion by 9. 7%. As a result, 
the trade balance turned into a deficit, amounted to JPY 1.2 trillion, for the first time since 2016.  
1.4.  The total value of exports from Japan in 2018 amounted to ¥81.5 trillion (an increase of 4.1% 
from 2017).  
− Regional trends in the total v alue of exports in 2018 (compared to 2017)  
China         up by 6.8%  
Chinese Taipei       up by 2.7%  
Republic of Korea       down by 3.1%  
ASEAN        up by 6.4%  
United States       up by 2.4%  
European Union (EU)      up by 6.4%  
1.5.  The total value  of imports  to Japan  in 2018 amounted  to ¥82.7  trillion  (an increase  of 9.7%  
from 2017).  
− Regional  trends  in the total value  of imports  in 2018  (compared  to 2017)   
China         up by 4.0%  
ASEAN        up by 7.4%  
Australia        up by 15.8%  
United States       up by 11.4%  
European Union (EU)      up by 11.0%  
Middle East        up by 25.9%  
1.3  Trends  in Foreign  Direct Investment  
1.6.  The amount of outward FDI stocks increased from JPY 175.1 trillion (32.1% of GDP) in 2017 to 
JPY 181.7 trillion (33.1% of GDP) in 2018. The amount of inward FDI stocks increased from 
JPY 28.9 trillion (5.3% of GDP) in 2017 to JPY 30.7 trillion (5.6% of GDP) in 2018.  
2018 Outward FDI  
 
1.7.  Japan's  outflow  of FDI (outward  FDI) decreased  from JPY 19,536.9  billion  in 2017 to 
JPY 17,578.8  billion  in 2018. The major characteristics of Japan's outward FDI in 2018 were as 
follows:  WT/TPR/G/397 • Japan  
 
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− By industry: in 2018, outward FDI in manufacturing industries decreased to 
JPY 6,057.5  billion (i.e. by -4.2%). The food and  precision machinery sectors decreased 
sharply. And Outward FDI in non -manufacturing industries decreased to JPY 9,750.8 billion 
(i.e. by -19.7%). The sectors such as services, wholesale and retail decreased sharply ; 
− By region: in 2018, outward FDI to Asia  increased by 26.9% to JPY 5,816.1 billion, and to 
Central and South America by 97.0% to JPY 2,699.4 billion. On the other hand, outward FDI 
to North America decreased by 52.8% to  JPY 2,671.7 billion, to Europe by 14.1% to 
JPY 5,959.5 billion.  
2018 Inward FDI 
 
1.8.  The FDI flow to Japan ( inward FDI) increased from JPY 2,296.3 billion in 2017 to 
JPY 2,859.0  billion in 2018. The major characteristics of inward FDI flow to Japan in 2018 were as 
follows:  
− By industry: in 2018, inward FDI in the manufacturing industries increased to 
JPY 1,462.4  billion (i.e. by 29.9%). The sector of chemicals and pharmaceuticals, electric 
machinery increased. On the other hand, inward FDI in the non -manufacturing industries 
decreased by JPY -373.9  billion. The sectors such as services, wholesale and retail 
decreased.  
− By region: in 2018, the inward FDI from Asia decreased by 11.9% to  JPY 552.2 billion, and 
from North America by 4.0% to JPY 668.1 billion. On the other hand, outward FDI from 
Central a nd South America increased by 52.8% to JPY 478.2 billion, and from Europe by 
30.4% to JPY 804.9 billion.  
2  TRADE AND INVESTMENT  POLICY  
2.1  Overview  
2.1.  Japan  has been committed  to trade  liberalization  under  the multilateral  trading  system  
centered  on the WTO.  Japan  is determined  to be fully engaged  in this non-discriminatory,  open 
and rule-based  regime.  
2.2.  While  committed  to the multilateral  trade negotiations,  Japan  is also pursuing  the conclusion  
of Economic  Partnership  Agreements  (EPAs),  bilateral  and regional,  and plurilateral  trade  
agreements.  The negotiations  of EPAs and plurilateral  agreements  will enhance  the transparency  
of the respective  member  country's  economic  policy  and reinforce  the competitiveness  of its 
industries,  which  will bring about  positive  impacts  on the multilateral  trade negotiations.  Japan  
also has in mind assessing the possibility  of reflecting  the outcomes  of the bilateral  and plurilateral  
initiatives  in the multilateral  trading  system.  
2.3.  Japan  is currently  a party to eighteen  EPAs.  Japan is aiming for the swift conclusion of RCEP 
negotiations among  16 countries, through which the FTA ratio1 will exceed 70%, as set out in the Growth 
Strategy 2019. Japan  has also promoted  its regional  and bilateral  trade policies  as a means  of 
complementing  the multilateral  trading  system under the WTO  and Japan  believes  that these  
agreements  will serve  as building  blocks  to achieve  higher  trade liberalization  at the multilateral  
level.  
2.4.  Regarding  plurilateral  negotiations  in relation  to the WTO,  Japan  has actively  participated  in 
plurilateral  negotiations  such as the Trade  in Services  Agreement  (TiSA)  and the Environmental  
Goods  Agreement  (EGA).  Although their negotiations have been under suspension since December 
2016, Japan hopes for its resumption at the earliest opportunity,  seeking to achieve the potential 
benefits from further liberalization of environmental  goods and services.  These  negotiations  will 
achieve  significant  progress  towards  multilateral  trade  liberalization.  
                                                
1 Share of trade in total Japanese trade value with countries with which EPA/FTA has entered into force 
or signed.  WT/TPR/G/397 • Japan  
 
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2.5.  With the rise of protectionism and trade -restrictive measures  around  the world,  Japan  
welcomes  the political  commitments  made at  international  fora such as G7, G20 and APEC to address 
such measures.  In this context,  Japan  fully supports  the WTO's  peer review  system  of Trade  
Policy  Review,  which  aim at curbing  protectionist  measures.  
2.6.  As the holder  of the G20 Presidency  in 2019,  Japan  hosted  the G20 Osaka  Summit  and led 
the discussion  on trade issues . The G20 leaders  confirmed  to strive to  realize a free, fair, non -
discriminatory, transparent, predictable and stable trade and investment environment, and to keep 
their markets open. They  also reaffirmed their support for the necessary reform of the WTO to 
improve its functions . 
2.2  WTO  
2.7.  Strengthening and maintaining the multilateral trading system, which forms the basis of global 
trade, is a main pillar of Japan's trade policy. Since the last review, Japan has always fully engaged 
in bringing about progress in the multilate ral trading system under the WTO. While respecting the 
principles of openness, transparency, non -discrimination and inclusiveness, Japan is setting out to 
offer new ideas and approaches to advance the trade negotiations under the WTO. In the lead up to 
the successful conclusion of the 11th WTO Ministerial Conference (MC11) in Buenos Aires in 2017, 
Japan has made significant contributions to the launch of the Joint Statement Initiative on Electronic 
Commerce based on the Join t Statement issued at MC11 (WT/MI N(17)/60). In this statement, 
signatories agreed to jointly initiate exploratory work toward future WTO negotiations on trade -
related aspects of electronic commerce. Japan, as a co -convener, has led exploratory work toward 
future WTO negotiations in 2018. In January 2019, another Joint Statement (WT/L/1056) was issued 
in Davos, in which 76 WTO Members confirmed their intention to commence WTO negotiations on 
trade-related aspects of electronic commerce. As of December 2019, the latter Joint Statement has 
been joined by 82 Members, and building on that, the like -minded Members have observed positive 
and effective progress in the negotiation. Furthermore, through the launch of the "Osaka Track " at 
the sideline of the G20 Osaka Summit, Japan seeks to achieve a high standard agreement on trade -
related aspects of e -commerce with the participation of as many WTO Members as possible, aiming 
at achieving substantial progress by MC12. Japan has made significant contributions to narrowing the 
gaps among WTO Members and  reaching consensus. Japan also believes that it is necessary to explore 
new approaches including up -to-date issues, in order to revitalize and reinforce the WTO's negotiation 
function.  
2.2.1   Rule setting  
2.8.  At MC10, over fifty Members concluded the ITA expansion n egotiations led by Japan as the 
Chair. Eliminating tariffs on 201 items valued at over US D 1.3 trillion per year by 53 Members who 
account for approximately 90% of world trade in the products proposed for inclusion in the product 
expansion is expected to b ring benefits to all WTO Members. The new agreement covers new 
generation semi -conductors, semi -conductor manufacturing equipment, optical lenses, GPS 
navigation equipment, and medical equipment such as magnetic resonance imaging products and 
ultra-sonic s canning apparatus. The agreement also contains a commitment to tackle non -tariff 
barriers in the IT sector, and to keep the list of products covered under review to determine whether 
further expansion may be needed to reflect future technological developme nts. To reflect its ITA 
expansion commitment, the modifications and rectifications of Japan 's Goods Schedule has entered 
into force on 16 May 2017.  
2.9.  Japan's dedication to making new rules and practices through negotiations on TiSA and EGA will 
contribute to  establishing a more solid and conducive basis for enhancing business and trade on a 
worldwide scale.  
2.2.2   Dispute  settlement  
2.10.   Observing  the compliance  with the WTO rules through  dispute  settlement  is one of the 
most important  and critical  roles played  by the WTO to maintain  an open and fair multilateral  
trading  system.  Japan  has actively  engaged  in the WTO dispute  settlement  mechanism  to resolve  
disputes  as both a party and a third party to a dispute.  Japan  continues  to make best efforts towards 
the reform of the  dispute settlement system, including the Appellate Body . WT/TPR/G/397 • Japan  
 
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2.2.3   Development  
2.11.   Development  was one of the major  components  agreed  among  the WTO Members  in the 
decisions  taken  at the Nairobi  Ministerial  Conference  in December  2015.  Among  the decisions,  
those  that are relevant to development  include i) Special  Safeguard  Mechanism  for Developing  
Country Members ; ii) Public  Stockholding  for Food Security  Purposes ; iii) Export  Competition ; 
iv) Cotton ; v) Preferential  Rules  of Origin  for Least developed countries;  and vi) implementation  of 
Preferential  Treatment  in Favour  of Services  and Service  Suppliers  of Least  Developed  Countries  
and Increasing  LDC Participation in Services  Trade. Through  its active  participation  in the Conference,  
Japan  has played  an important  role in leading  the outcome  of these  decisions.  
2.12.   Japan  has been actively  continuing  its participation  in the discussions  related  to various  
items  of the development  agenda  such as Aid for Trade,  recognizing  that integrating  developing  
and least-developed  countries in the multilateral  trading  system  is one of the essential  roles of the 
WTO.  In particular,  Japan  has actively  supported  LDC accessions  through  technical  assistance  to 
accession  applicants  to build their trade capacity.  
2.3  FTA/EPAs  
2.13.   Maintaining  and strengthening  the multilateral  trading  system  under  the WTO has been a 
main pillar of Japan's  external  economic  policy.  At the same  time, Japan  has also promoted  its 
regional  and bilateral  trade policies  as a means  of complementing  the multilateral  trading  system,  
particularly  through  Economic  Partnership  Agreements  that include  elements  of Free Trade  
Agreements  and institution -building.  
2.14.   The data concerning  the Economic  Partnership  Agreements  is summarized  in Table  2.1 
below  (as of December  2019).  
Table 2.1 
Country  Date of the entry 
into force  Additional information  
Entered into force  
Singapore  
(The Agreement between 
Japan and Republic of 
Singapore for a New Age 
Economic Partnership 
(JSEPA))  30 November 2002  The sixth and seventh Supervisory Committees were held 
in January and March 2016 respectively.  
The amended Agreement came into force in September  
2007.  
The partial amendment of the Annex (IIA "Product -
Specific Rules" and IIB "Minimum Data Requirement for 
Certificate of Origin") came into effect in January 2008.  
Mexico  
(The Agreement between 
Japan and the United 
Mexican States for the 
Strengthening of the 
Economic Partnership)  1 April 2005  The Protocol between Japan and the United Mexican 
States related to Improvement of Market Access 
Conditions based on paragraphs 3 and 5 of Article 5 of the 
Agreement between Japan and the United Mexic an States 
for the Strengthening of the Economic Partnership entered 
into force in April 2007.  
The Protocol Amending the Agreement between Japan and 
the United Mexican States for the Strengthening of the 
Economic Partnership was signed in September 2011 and  
entered into force in April 2012.  
Sub-Committees on Trade in Goods, SPS Measures, 
Technical Regulations, Standards and Conformity 
Assessment Procedures, Rules of Origin, Certificate of 
Origin and Customs Procedures, Cross -Border Trade in 
Services, Entry a nd Temporary Stay, Government 
Procurement, Cooperation in the Field of Trade and 
Investment Promotion, Cooperation in the Field of 
Agriculture, Cooperation in the Field of Tourism, and also 
the Special Sub -Committee on Steel Products and the 
Committees for  the Improvement of the Business 
Environment have been held to date.  WT/TPR/G/397 • Japan  
 
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Country  Date of the entry 
into force  Additional information  
Malaysia  
(The Agreement between 
the Government of Japan 
and the Government of 
Malaysia for an Economic 
Partnership)  13 July 2006  The third Joint Committee was held in February 2013  
Sub-Committees on Trade in Services, Improvement of 
Business Environment, Cooperation, Rules of Origin, 
Intellectual Property, Sanitary and Phytosanitary, 
Investment, Trade in Goods, and Technical Regulations, 
Standards and Conformity Assessment Procedures have  
been held to date  
Chile 
(The Agreement between 
Japan and the Republic of 
Chile for a Strategic 
Economic Partnership)  3 September 2007  - Meetings of the Commission, Committees on Trade in 
Goods and Improvement of Business Environment and the 
Working Group on Fish and Fishery Products have been 
held to date  
Thailand  
(The Agreement between 
Japan and the Kingdom of 
Thailand for an Economic 
Partnership)  1 November 2007  Sub-Committee on Trade in Goods was held in November 
2016 
Sub-Committee on Agr iculture, Forestry and Fisheries was 
held in June 2016  
Sub-committee on enhancement of business environment 
was held in March 2016  
Sub-Committees on Trade in Services, Rules of Origin, 
Small and Medium Enterprises, Paperless Trading, 
Enhancement of Busines s Environment, Customs 
Procedures, Tourism, Agriculture, Forestry and Fisheries, 
Trade in Goods, and Movement of Natural Persons have 
been held to date  
Indonesia  
(The Agreement between 
Japan and the Republic of 
Indonesia for an Economic 
Partnership)  1 July 2008  The fourteenth Joint Committee was held in November 
2019 
Sub-Committees on Rules of Origin, Trade in Goods, Trade 
in Services, Movement of Natural Persons, Cooperation, 
Investment, Intellectual Property, and Government 
Procurement have been held to date  
Brunei Darussalam  
(The Agreement between 
Japan and Brunei 
Darussalam for an 
Economic Partnership)  31 July 2008  - Sub-Committees on Trade in Services and Cooperation 
have been held to date  
ASEAN  
(The Agreement on 
Comprehensive Econo mic 
Partnership among Japan 
and Member States of the 
Association of Southeast 
Asian Nations)  1 December 2008 
(Japan, Lao P DR, 
Myanmar, Singapore, 
Viet Nam)  
1 January 2009 
(Brunei Darussalam)  
1 February 2009 
(Malaysia)  
1 June 2009 
(Thailand)  
1 December 2009 
(Cambodia)  
1 March 2010 
(Indonesia)  
1 July 2010 (The 
Philippines)  The 18th Joint Committee was held in December 2017  
Sub-Committees on Rules of Origin, Trade in Services, 
Investment and Economic Cooperation and Standards, 
Technical Regulation s and Conformity Assessment 
Procedures have been held to date.  
The Agreement is a legally independent agreement in 
relation to the bilateral EPAs between Japan and individual 
ASEAN Member States and thus the entry into force of the 
Agreement does neither n ullify nor integrate those 
bilateral EPAs  
The Philippines  
(The Agreement between 
Japan and the Republic of 
the Philippines)  11 December 2008  The ninth Joint Committee was held in April 2019  
Sub-Committees on Trade in Goods, Trade in Services, 
Rules of Ori gin, Investment, Movement of Natural 
Persons, Improvement of Business Environment, Mutual 
Recognition and Cooperation have been held to date  
Switzerland  
(The Agreement on Free 
Trade and Economic 
Partnership between Japan 
and the Swiss ) 
Confederation)  
▲欧東 1 September 2009  The forth Joint Committee was held in November 2018  
Sub-Committee on Rules of Origin, Customs Procedures 
and Trade Facilitation has been held since February 2011  WT/TPR/G/397 • Japan  
 
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Country  Date of the entry 
into force  Additional information  
Viet Nam  
(The Agreement between 
Japan and the Socialist  
Republic of Viet Nam for an 
Economic Partnership)  1 October 2009  - Sub-Committees on Movement of Natural Persons have 
been held to date  
India 
(Comprehensive Economic 
Partnership Agreement 
between Japan and the 
Republic of India)  1 August 2011  The fifth J oint Committee was held in December 2018  
The sub -committee on Rules of Origin, Customs 
Procedures, TBT/SPS, Trade Services, Movement of 
Natural Persons, and Improvement of Business 
Environment has been held to date  
Peru 
(The Agreement between 
Japan and the Republic of 
Peru for an Economic 
Partnership)  1 March 2012  - Meeting of the Commission and the Sub -Committee on 
Improvement of the Business Environment have been held 
to date  
Australia  
(The Agreement between 
Japan and Australia for an 
Economic Partner ship) 15 January 2015  The third meeting of the Joint Committee was held in 
Tokyo on 13 February 2019  
Sub-Committee on Promotion of a Closer Economic 
Relationship was held in Tokyo on 8 October 2015  
Mongolia  
(The Agreement between 
Japan and Mongolia for an  
Economic Partnership)  7 June 2016  The first Sub -Committee on Cooperation was held om 
Ulaanbaatar on 4 December 2018  
CPTPP ( Comprehensive and 
Progressive Agreement for 
Trans -Pacific Partnership ) 30 December 2018  The second TPP Commission was held in Auckland in 
October 2019  
EU (European Union)  1 February 2019  The first Joint Committee was held in Tokyo in April 2019  
Signed  
TPP (Trans -Pacific 
Partnership)  Signed on 4 February 
2016. (Japan 
participated in TPP 
negotiations in July 
2013)  Ministerial Meeting was held in Atlanta and an agreement 
in principle was reached on 5 October 2015  
Japan submitted the agreement to the Diet for approval 
on 8 March 2016  
Under negotiation  
The Republic of Korea  Negotiation 
suspended (The 
negotiations 
commenced in 
December 2003)  Six rounds of negotiations were held  
Although no negotiations have been held since the end of 
the sixth round held in November 2004, four rounds of the 
working -level consultation were held by December 2009 
to consid er the resumption of negotiations. Director -
general level consultations for the EPA were held in 
September 2010 and in May 2011. Several rounds of 
working -level consultations have been held since 2012  
GCC (Gulf Cooperation 
Council)  Negotiation 
postponed ( Formal 
negotiations 
commenced in 
September 2006)  - Two rounds of negotiations and four rounds of informal 
intermediate meetings were held. The latest meeting was 
held in March 2009  
Canada  Under negotiation 
(The negotiations 
commenced in 
November 2012)  - Seven rounds of negotiations were held. The latest 
meeting was held in Tokyo in November 2014  
Colombia  Under negotiation 
(The negotiations 
commenced in 
December 2012)  Thirteen rounds of negotiations were held. The latest 
meeting was held in Tokyo in September 2015  
CJK (China, Japan and 
Republic of Korea)  Under negotiation 
(The negotiations 
commenced in March 
2013)  - Sixteen rounds of negotiations were held. The latest 
meeting was held in Seoul in November 2019  
RCEP (Regional 
Comprehensive Economi c 
Partnership)  Under negotiation 
(The negotiations 
commenced in May 
2013)  - Twenty -eight rounds of negotiations were held. The 3rd 
RCEP Summit was held in Bangkok in November 2019  WT/TPR/G/397 • Japan  
 
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Country  Date of the entry 
into force  Additional information  
Turkey  Under negotiation 
(The negotiations 
commenced in 
December 2014)  - Seventeen rounds of negotiations were held. The latest 
meeting was held in October 2019  
2.4  Other Regional/Bilateral Arrangements  
2.4.1   Asia-Pacific Economic Cooperation (APEC)  
2.15.   Japan remains committed to APEC's mission of regional economic integration and to the Bo gor 
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 continue d to take a leading role in realizing this 
vision in close cooperation with other member economies. Against rising protectionist movements 
including unfair trade practices, Japan solidifies its resolve toward the promotion of free trade.  
2.16.   At the APEC Econom ic Leaders' Meeting in 2016 in Lima, Peru, APEC economic leaders 
reaffirmed their pledge against protectionism by extending a standstill commitment until the end of 
2020, and their commitment to rollback protectionist and trade -distorting measures, which w eaken 
trade and slow down the progress and recovery of the international economy. The Lima Declaration 
remains the backbone of APEC 's efforts in promoting free and open trade and investment. Against 
rising protectionism including unfair trade practices, Ja pan solidifies its resolve toward the promotion 
of free trade.  
2.17.   APEC's core mission continues to be further regional economic integration and expansion of 
trade in the Asia -Pacific region. The Leaders and the Ministers of APEC reiterate the commitment to 
build an open economy in the Asia -Pacific region at the Economic Leaders' Meetings and the 
Ministerial Meetings respectively by advancing regional economic integration and addressing next -
generation trade and investment issues, including through the measures  for achieving 
comprehensive and high-quality  Free Trade Area of the Asia -Pacific (FTAAP). In this regard, Japan 
has been taking the lead in working on initiatives related to quality infrastructure, which is one of 
the priority issues in various fora. Japa n also has been taking an initiative to implement APEC 
projects including competition policy in FTAs/RTAs, services, digital economy and food security.  
2.4.2   Asia-Europe Meeting (ASEM)  
2.18.   Japan believes that the economic dialogue and cooperation between Asia and Eu rope through 
ASEM will promote enhanced mutual understanding between the two regions on various economic 
issues, which could lead to increased trade and investment between Asia and Europe, as well as to 
the improved coordination of world economic issues of  mutual concern relating to the WTO, RTA/FTA, 
IPR, etc., thereby contributing to the development of the global economy.  
2.19.   Following the decision taken at the 12th ASEM Customs Directors -General and Commissioners 
Meeting in Berlin in October 2017, Japan, tog ether with the European side's coordinator, France, has 
taken the initiative to compile the situations and progress on "Border Enforcement on International 
Postal Items " in the ASEM members. The result of the initiative was presented in the 13th ASEM 
Custo ms Directors -General and Commissioners Meeting in Ha Long, Viet  Nam in October 2019.  
2.4.3   Japan's Bilateral Activities  
The United States  
 
2.20.   On the occasion of  the Japan -United States Summit meeting in April 2018, the leaders of 
Japan and the United States decided to launch new talks for free, fair and reciprocal (FFR) trade 
deals. At the summit meeting in September 2018, following the two rounds of the FFR in A ugust and 
in September 2018 , by Minister Motegi, then Minister in charge of Economic Revitalization (currently 
Minister for Foreign Affairs) and Ambassador Lighthizer, United States Trade Representative, Prime 
Minister Abe and President Trump agreed to ent er into bilateral trade negotiations. This decision was 
based on the view that further reinforcing economic ties between Japan and the United States would WT/TPR/G/397 • Japan  
 
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expand bilateral trade in a stable manner and contribute to free, fair and open development of the 
global economy and the two leaders issued a joint statement.  
2.21.   Following this leaders ' decision, Japan and the United States held bilateral negotiations, 
including eight ministerial -level negotiations between Minister Motegi and Ambassador Lighthizer in 
approx imately five months. At the summit meeting in September 2019, the two leaders confirmed 
that the both sides reached final agreement on the Japan -United States Trade Agreement and the 
Japan -United States Digital Trade Agreement. Those agreements were signed  in October and 
approved by the Japan 's Diet in December 2019. Japan and the United States are conducting their 
domestic procedures respectively, aiming at the early entry into force of the agreements.  
European Union  
 
2.22.   The trade turnover between Japan and t he EU has steadily recovered in recent years from the 
temporary decline in 2009 due to the world economic crisis. As the Ministry of Finance reports, the 
volume of mutual trade amounted to about JPY 19 trillion in 2018. Japan is the EU's seventh largest 
trading partner and the EU is Japan's third largest one. Regarding foreign direct investment in each 
other's economies, Japan invested about JPY 47 trillion and the EU invested about JPY 14 trillion in 
2018. The EU is the largest investor and the second larg est investee for Japan. According to a survey 
by the Ministry of Economy, Trade and Industry (METI), about 2,900 Japanese enterprises are 
operating businesses in the EU and creating more than half a million jobs.  
2.23.   On the occasion of the 26th Japan -EU Summit  Meetings on 25 April 2019, the leaders 
welcomed the entry into force of the Japan -EU Economic Partnership Agreement (EPA) in February 
this year. They also confirmed that the Japan -EU relations underwent transition to a new dimension 
owing to the entry int o force of the EPA, and that the Agreement has generally been implemented 
smoothly thereafter, along with the success of the first Joint Committee of the EPA held in April  2019, 
and acknowledged the importance of continuously promoting trade and investment between Japan 
and the EU based on the Agreement.  
Russian Federation  
 
2.24.   The Japan -Russia n Federation  trade volume in 2018 continued to record strong growth 
following on from the previous year. The major commodities imported to Japan from Russia n 
Federation  are oil and natural gases, and there was a significant increase in the amount of 
automobiles and related components exported from Japan to Russian Federation  (trade volume 
amounted to about JPY 2.5281 trillion in 2018 statistics, marking an increa se of about 13.7% over 
the previous year). The volume of direct investment from Japan to Russian Federation  increased 
slightly from JPY 175.7 billion (2016) to JPY 178.0 billion (2017).  
2.25.   With regard to the Eight -point Cooperation Plan for Innovative Reform in the field of Industry 
and Economy and a favorable living environment of the Russian Federation  proposed by Prime 
Minister Abe in May  2016, over 200 private sector projects have been established, and about half of 
the projects are in active status in suc h forms as signing contracts.  
China  
 
2.26.   The economic interdependence between Japan and China is growing deeper. China has been 
Japan's largest trading partner since 2007. The mutual trade amount in 2018 reached 
USD 317.5  billion. According to China's statisti cal data, Japan was China's second largest trading 
partner in 2018 and regarding foreign direct investment in China, Japan invested US D 3.81 billion 
in 2018. According to Japan's data, 32,349 Japanese enterprises and their branches were conducting 
business  in China as of October 2017. Japan has bilateral economic agreements and arrangements 
with China in the areas of trade, air transportation, maritime transportation, trademark protection, 
tax, investment, fisheries and mutual customs cooperation.  
2.27.   In 2007, for strategic economic dialogue at the ministerial level, Japan and China decided to 
establish the Japan -China High -Level Economic Dialogue. The fifth meeting was held in Beijing in 
April 2019 and both sides exchanged views regarding a wide range of topics  including trade and 
investment, as well as protection of IP rights. At the Japan -China Summit meeting  in June 2019 at 
the occasions of G20 Osaka Summit, the two leaders shared the view that, based on international WT/TPR/G/397 • Japan  
 
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standards and in the spirit of "from comp etition to cooperation, " the two countries would enhance 
mutually beneficial working -level cooperation in areas that have potential, such as third country 
markets, innovations and protection of intellectual property, trade and investment including foods 
and agricultural products, finance and securities, medical and nursing care, energy conservation and 
environment, and tourism exchanges, as well as further develop a free and fair trading system. In 
addition, to promote further bilateral cooperation in the e conomic field, various dialogues between 
Japan and China have been held.  
Republic of Korea  
 
2.28.   The mutual trade amount of Japan and the Republic of Korea reached US D 85 billion in 2018. 
Japan and the Republic of Korea were each other's third largest trading p artners after China and the 
United States in 2018. Regarding foreign direct investment in the Republic of Korea, Japan was the 
fourth largest investor with US D 1,301 million in 2018. Foreign direct investment from the Republic 
of Korea to Japan amounted to  USD 1,312 million in 2018.  
India  
 
2.29.   Based on the "Japan -India Special Strategic and Global Partnership", established by Prime 
Minister Abe and Prime Minister Modi in 2014, economic activities between two countries have  been 
steadily enhanced. The mutual tra de amount in 2018 reached US D 16 billion.  
2.30.   To further strengthen the bilateral economic partnership, Japan and India have been engaged 
in wide -ranging dialogues on trade, investment promotion, and improvement of the business 
environment. The Ninth Japan -India Strategic Dialogue on Economic Issues as well as the  fifth 
meeting of the Joint Committee meeting under Japan -India CEPA were held in December 2018 in 
New Delhi.  
Africa  
 
2.31.   On 28 –30 August 2019, the 7th Tokyo International Conference on African Development 
(TICAD 7) was held in Yokohama, Japan. On that occasion, Japan positioned business at the center 
of themes. The number of participating private companies doubled compared with the TICAD VI. 
Moreover, p rivate companies became official partners for the first time, and the Public -Private 
Business Dialogue between Japan and Africa was held as one of the plenary sessions. Participants 
discussed issues including unification of the African market as Africa 's own initiatives such as the 
African Continental Free Trade Area (AfCFTA), economic diversification and industrialization, 
necessity of sound fiscal management including debt transparency and sustainability, quality 
infrastructure, and human resource develop ment.  
MERCOSUR  
 
2.32.   In May 2017, the Fourth Dialogue to Strengthen the Economic Relationship between Mercosur 
and Japan was held in Buenos Aires, Argentine. In this Dialogue, both sides exchanged information 
on the current situations of trade and investment between Japan and Mercosur. They also exchanged 
their opinions over measures taken by both sides to promote free trade, and over possible measures 
to encourage more investment between the two parties.  
2.5  Investment Policy  
2.5.1   Outlook  
2.33.   In the Growth Stra tegy 2019 (decided by the Cabinet in June 2019), the Japanese 
Government stated that it will also aim to increase the amount of inward FDI stocks to  JPY 35 trillion 
by 2020 ( JPY 30.7 trillion at the end of 2018).  
2.34.   In March 2015, under the leadership of the Prime Minister, the Council for Promotion of 
Foreign Direct Investment in Japan adopted the "Five Promises for Attracting Foreign Businesses to 
Japan" as important items to be addressed going forward. In addition, in May 2016, this council 
adopted the "Pol icy Package for Promoting Foreign Direct Investment into Japan to Make Japan a 
Global Hub" to promote more FDI to make Japan an international trade and investment hub.  WT/TPR/G/397 • Japan  
 
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2.35.   The Working Group for Revising Regulations and Administrative Procedures under the Counc il 
for Promotion of Foreign Direct Investment in Japan discussed issues impeding foreign investment 
in the economy and compiled the Final Report in 2017. In addition, the Council launched the Support 
Program for Regional Foreign Direct Investment in Japan in 2018 to advance regional revitalization 
through FDI. In 2019, the Council adopted the Program to Intensively Attract Foreign Direct 
Investment in Regional Japan to strengthen the Support Program and provide intensive support to 
priority local government s. In addition, the Japanese Government will work to further improve 
Japan 's overall business environment. By following up the past plans and conducting those steadily, 
the Japanese Government aim to achieve the goal of doubling the inward FDI stocks to JPY 35 trillion 
by 2020.  
2.5.2   Investment Agreements  
2.36.   Japan has actively promoted the conclusion of investment agreements as they create stable, 
equitable, favourable and transparent conditions for greater investment through the removal of 
barriers to investment an d provision of investor protections. In the Japan Revitalization Strategy, 
the Japanese Government set the goal of signing and/or achieving entry into force of investment -
related agreements (investment agreements and economic partnership agreements with in vestment 
chapters) covering 100 countries/regions by 2020. As of November 2019, Japan has 
concluded/signed investment -related agreements with 76 countries and regions.  
3  TRADE AND DEVELOPMEN T 
3.1  Aid for Trade  
3.1.  In order  for developing  countries,  including  LDCs,  to reap further  benefit  from the multilateral  
trading  system,  trade liberalization  alone  is not sufficient.  Enhancing  capacities  on the supply  side 
and encouraging  assistance  for this purpose  is indispensable.  Since  Aid for Trade  (AfT) initiatives  
contribute  to enhancing  the trade  capacities  of developing  countries,  Japan  continues  to provide  
various  measures  for AfT to this end. 
Japan's  Development  Initiatives  for Trade  
3.2.  Japan  announced  the "Development  Initiative  for Trade",  prior to the WTO Ministerial  
Conference  in Hong Kong,  China  in December  2005. This  initiative  featured:  (a) implementation  of 
Duty-Free and Quota  Free Market  Access  for essentially  all products  originating  from LDCs; 
(b) provision  of USD 10 billion  of financial  assistance  including  trade,  production,  and distribution  
infrastructure  for three years  (2006 -08); and (c) as part of (b), the exchange  of a total of 
10,000  trainees  and experts  in trade-related  fields over the same  period, the  targets  of which  were 
fully achieved.  During  the designated  period  (2006 -08) of the initiative,  the total sum of financial  
assistance  amounted  to USD 17.66  billion,  greatly  exceeding  the target  at 177%.  
3.3.  Given  the successful  results  of the above -mentioned  first initiative,  Japan  announced  a new 
AfT strategy,  "Development  Initiative  for Trade  2009"  in July 2009. Its main pillar was 
USD 12 billion  of financial  assistance  for trade-related  projects  including  trade,  production  and 
distribution  infrastructure  for 3 years  from 2009 to 2011.  During  the designated  period  (2009 -11) 
of this initiative,  the total sum of financial  assistance  amounted  to USD 23.36 billion,  which reached  
195%  of the target,  well surpassing  the amount  of the first initiative.  Despite  the fact that no 
additional  development  initiative  has been launched  since then, Japan  has continuously  expanded  
its assistance . Since the adoption of the Hong Kong Declaration in 2005, Japan has provided 
approximately USD 72 billion worth of Aid for Trade related assistance as of 2017.  This is 
representative  of Japan's  strong  commitment  to AfT, which  Japan  considers  as important  to help 
beneficiary  countries  meet the new challenges  they face in the regional  and global economy.  
Tokyo  International  Conference  on African  Development  
3.4.  The 7th Tokyo International Conference on African Development (TICAD 7) was held in 
Yokohama, Japan, on 28 –30 August 2019. The Initiatives announced by Japan with regard to trade 
and development are as follows.  WT/TPR/G/397 • Japan  
 
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1. To launch Japan Business Council for Africa (JBCA) t o promote business between Japan 
and Africa; to organize the second Japan -Africa Public -Private Economic Forum ; 
2. To launch bilateral committees on improvement of business environment in seven 
countries; to improve the environment for trade and investment through Enhanced Private 
Sector Assistance for Africa (EPSA) with AfDB (EPSA4: Joint target with AfDB of 
USD 3.5 billion in 3 years) ; 
3. To introduce and match African start -ups with Japanese companies through JETRO Start -
up Cooperation Promotion Desk and pitch events; to collaborate with private funds for 
African entrepreneurs . 
 
Assistance to the One Village, One Produc t Movement  
 
3.5.  The One Village,  One Product  (OVOP)  is one of the typical  approaches  under  AfT initiatives.  
OVOP  is a movement  that supports  local economies  through  the development,  improvement  and 
promotion  of local products  (foods,  beverages,  textiles  & garments,  etc.) with the participation  of 
locals . This movement  was first initiated  in a southern  prefecture  in Japan  in the late 1970s  and 
later spread  to the other prefectures.  It has been introduced  in other Asian  countries  and has 
contributed  to the development  of local economies.  
3.6.  Japan  continues  supporting  this movement,  especially  the exports  of developing  countries  
and least developed  countries  through  technical  cooperation  such as the dispatch  of experts,  
educational  and training  program mes to create  competitive  products,  and support  through  
international  organizations.  In addition,  Japan  held exhibitions,  trade fairs, and opened  OVOP shops 
in 2006 at some  of Japan's international  airports  to introduce those  products  and encouraged  
consumers  to buy them.  
3.2  Generalized  System  of Preferences (GSP)   
3.7.  In order  to improve  market  access  for developing  countries,  Japan  introduced  a preferential  
tariff treatment  under  the GSP scheme  on 1 August  1971,  and has re-examined  it several  times  
since then. Furthermore,  under  the scheme,  Japan  has granted  special preferential  treatment  to 
LDCs since 1980,  including  additional  products  for which  preferences  are granted  only to LDCs.  
Currently,  128 developing  countries  and 5 territories,  including  all LDCs,  enjoy  the benefits  of the 
GSP scheme.  This scheme  has been vastly  improved  over the last several  years,  especially  in 2007 
and 2011.  In the comprehensive  "Development  Initiative  for Trade" launched  on 9 December  2005,  
Japan  announced its commitment to providing duty -free and quota -free (DFQF)  market  access  for 
essentially  all products  originating  from LDCs.  Japan  is fully committed  to implementing  the 
above  initiative,  thus, complying  with the decision  adopted  in the Hong Kong,  China  Ministerial  
Declaration.  In realization  to the above -mentioned  commitment,  on 1 April 2007,  Japan  expanded 
the area covered by the  DFQF  treatment  for LDCs. As a result,  the number  of agricultural  and fishery  
products  originating  from LDCs that receive  DFQF  preferential  treatment  increased  from 497 to 
1,523  and that of industrial  products  increased  from 4,185  to 4,244.  Consequently,  coverage  
r a t e  of DFQF  increased from  86% to approximately  98% as defined  at the tariff line level.  
On 1 April 2011,  Japan  extended  the effective  period  of the GSP scheme  to 31 March  2021,  abolished  
all ceiling -based  schemes  for certain  industrial  products,  and revised  the criteria  for application  of 
competitiveness -focused,  product -by-exclusion  measures.  The revision  was made  to make  the 
criteria  more objective  and transparent  and to allow less competitive  developing  countries  to 
benefit  more from the GSP scheme.  
4  JAPAN'S DOMESTIC POL ICIES  
4.1  Abenomics  
4.1.  Thanks to the promotion of Abenomics over the past seven years, the current Japanese 
economy is in the non -deflationary status and both nominal and real GDP have reached their highest 
level. Significantly, the employment and income environment, w hich are closely related to people 's 
lives, improved as well. Japan will further sustain and expand the virtuous economic cycle brought 
about by the Abenomics. According to the basic policy of "Without economic revitalization, there can 
be no fiscal consol idation, " Japan will implement the economic revitalization and fiscal consolidation 
in an integrated manner and aim for a realization of the nominal GDP JPY 600 trillion economy WT/TPR/G/397 • Japan  
 
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toward around 2020 and the fiscal consolidation target in FY2025. To reach thi s goal, the following 
viewpoints are taken into consideration in promoting the initiatives.  
➢ The first thing is to strengthen economic growth by boosting potential growth rate. 
Amid concerns that the growth of labor force population slows in the mid -term an d 
long-term, it is necessary to boost potential growth rate by further stimulating 
human/physical investment toward the age of "Society 5.0 " and dramatically 
improving productivity.  
 
➢ The second thing is to expand the virtuous cycle of growth and distributi on. It is 
necessary not only to strengthen the potential growth on the supply side, but also to 
seek to continuously expand domestic demand and acquire external demand toward 
the expansion of this virtuous cycle. In terms of domestic demand, it is importan t to 
expand corporate profits and seek continuous expansion of consumption through 
increases in wages and income of employees and in terms of external demand, it is 
important to take in foreign vitality from Asia and others making good use of Japan 's 
soft power or through the economic collaboration and inbound, etc.   
 
➢ The third thing is to create a society in which everyone plays an active role and feels 
secure. In anticipation of the arrival of an era of "100-year life spans ", to build a society 
in which e verybody including elderly people and young people can play an active role 
regardless of age, it is essential not only to promote "Human development revolution " 
to improve the quality of each person as human resource, but also to establish the 
social security system for all generations, with revising the conventional ways of 
thought and systems so that age doesn 't become the constraint in working, and 
expanding t he supporters of social security by allowing them to freely select their work -
styles regardless of age.  
 
4.2  Intellectual  Property  Rights  
4.2.  In June 2018, the Intellectual Property Strategy Headquarters established "The Intellectual 
Property Strategy Vision " as a new and mid -to long -term vision until 2030. In this vision, Japan set 
out a "value design society " to be realized in the future, wher e a variety of values that go beyond 
economic value are subsumed, where various individualities fully demonstrate multifaceted abilities, 
make good use of Japanese characteristics, make new values, and gain empathy of the world. Japan 
will actively and cre atively design the concrete systems to achieve the above -mentioned society.  
4.3.  The Intellectual Property Strategy Headquarters also finalized "The Intellectual Property 
Strategic Program 2018 " in June 2018. The new program was developed so that Japan sets the  
starting point for the new intellectual property strategy vision based on "pro-innovation strategy " 
under which Japan will not only respond promptly to changing times but also create positive changes 
by itself. The program see three targets which are "Cultivating human resources and business to 
meet future needs, " "Encouraging ambitious and creative activities, " and "Preparing environment 
and framework for innovation of new fields ", taking into account the direction indicated by the 
Intellectual Property S trategy Vision.  
4.3  Financial Reform  
4.4.  Japan has enacted the law for Partial Revision of the Payment Services Act, etc., to address 
the Diversification of Financial Transactions based on Advances in Information Technology  (enacted 
on 31st May 2019 ). The law inte nds to address greater diversification on financial transaction amid 
the development of the digital technology, and to enhance the credibility of financial function while 
securing user protection. The law stipulates regulations on crypto -asset Exchange Ser vice Providers, 
derivative /financing transactions using crypt -assets, and clearing a margin on OTC derivatives. The 
law also allows financial institutions to engage in the business of providing data held to a third party. 
The measures include the followin g: 
1．Issues with crypto -asset Exchange Service Providers  
• Where private keys for customers ' deposited crypto -asset are managed online, it requires 
service providers to maintain net assets and funds for reimbursement at the same or WT/TPR/G/397 • Japan  
 
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greater amount. The funds must consist of the same kinds as the deposited crypto -
assets ; 
• Develop framework to entitle customers to the statutory line that secures their claim to 
deposited crypto -assets ; 
• Prohibit service providers from advertisements/ solicitations that encourage speculative 
trading ; 
• Regulate as a part of crypto -asset exchange services, and apply the regulations on the 
custody of customers ' crypto -assets that currently apply to crypto -asset exchange service 
providers . 
 
2．Crypto -asset CFDs, ICOs (Initial Coin Offerings), etc.  
• Impose a registration requirement on service providers dealing in crypto -asset CFDs as 
foreign -exchange margin trading (Forex tr ading), and apply conduct regulations such as 
the prohibition of unrequested solicitation ; 
• Develop the following frameworks in light of high transferability of ICO tokens and risks 
to investors ; 
➢ When soliciting 50 or more investors, require the issuer to p rovide offering disclosure 
and continuous disclosure ; 
➢ Regulate brokers/dealers of investment -type ICOs on the same level as securities 
companies, and require that they examine the business and financial conditions of the 
issuer ; 
➢ Restrict solicitation to re tail investors in the same manner as the restriction on unlisted 
shares ; 
• Apply current unfair trading regulations . 
 
3．Addressing based on Advances in Information Technology  
• Considering the increasing use of data in society ; 
➢ Allowing banks, insurance companies, securities companies, and investment 
management companies to engage in the business of providing data held to a third 
party ; 
➢ Allowing insurance companies to hold subsidiary companies engaging in a wide range 
of business relating to dat a utilization ; 
• Legislating that banks, insurance companies, securities companies, and investment 
management companies could clear non -centrally cleared OTC derivatives margin 
through collateral contract compatible with cross -border trade practices.  
4.5.  Japan h as enacted the law for Partial Revision of the Banking Act etc, (enacted on 26 May  2017)  
to promote appropriate cooperation and collaboration between financial institutions and finance -
related IT companies as well as to ensure user protection, in response to IT development and its 
impact on financial services. The law stipulates regulations o n the Electronic Payment Service 
Provider. The measures include the following:  
1．Measures for Electronic Payment Service Provider regarding establishment of a system and 
safe control of information  
• Establishment of a system for user protection ; 
• Ensuring sa fe control of information ; 
• Securing a sufficient financial basis . 
 
2．Conclusion of a contract with financial institutions  
• Conclude a contract which includes the following particulars ; 
➢ Sharing responsibility between the Bank and the Electronic Payment Servi ce Provider 
of the liability to compensate for any loss or damage to users in connection with the 
Electronic Payment Service ; 
➢ Proper handling and safe control of the information on users . 
 
3．Measures for financial institutions regarding promotion of Open Innovation  
• Preparation and disclosure of the plans on cooperation and collaboration with Electronic 
Payment Service Provider ; 
• Preparation and disclosure of the standards relating to the connection with Electronic Payment 
Service Provider ; 
• Making effor ts to introduce a system for Open API . 
 WT/TPR/G/397 • Japan  
 
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4．Other measures  
• Allowing foreign bank branches in Japan to choose the  business year ( 1 April to 31 March of 
the following year or the same period as that of a business year of the Foreign Bank) for 
regulatory reporting under the Banking Act ; 
• Abolishing a notification requirement for Bank Agent in case of temporary change in the 
location of the business office.  
 
4.6.  In addition,  Japan has enacted the Law for Partial Revisions of the Financial Instruments and 
Exchange Act etc . (enacted on 17  May 2017) to respond to environmental transformation of 
Japanese financial and capital markets including IT development. The law stipulates regulation on 
faster trading, flexibility in business scope for exchange groups  and fair information disclosure by 
listed companies. The measures include the following:  
1．Responses to faster trading  
• Adopt a registration system and rules to enable confirmation by authorities of high -speed 
trading in stocks and other products ; 
➢ Measures related to system establishment and risk management ; 
▪ Suitable trading system control and operation ; 
▪ Suitable business operation framework, etc. ; 
➢ Measures for information provision to authorities ; 
▪ Notification of high -speed trading and trading strategy ; 
▪ Creation and retention of trading records, etc.  
 
2．More flexibility in business scope for exchange groups  
• Adjust exchange group business scope in light of diversification of exchange operations, 
globalization, and other changes in the ope rating environment  
➢ Consolidation of shared/overlapping group activities  
▪ Allow exchanges to handle group shared/overlapping activities, such as system 
development  
➢ Greater flexibility in investing in overseas exchanges  
▪ Allows ownership by the exchange group  even for a certain period (for example, 
five years) even if the subsidiary of a foreign exchange, etc. in which it owns a 
stake exceeds defined business scope . 
 
3．Fair information disclosure by listed companies  
• Establish rules on fair information disclosu re by listed companies to secure fairness in 
information among investors (fair disclosure rules) ; 
➢ When a listed company, etc. provides pre -disclosure important information to 
investors, securities firms, and others:  
▪ Just as in the case of intentional comm unication ; 
▪ It must jointly disclose the subject information on the web page in a prompt 
manner for unintended disclosure . 
 
4.4  Competition  Policy  
4.7.  On 19 June 2019, the Antimonopoly Act (AMA) Amendment Bill was approved in the 198th 
ordinary session of the Diet, and the enacted act was promulgated on 26 June 2019. The purpose 
of the amended act is to deter "unreasonable restraint of trade ", etc. effectively, invigorate the 
economy, and enhance consumer interests by fair and free comp etition, through increasing 
incentives for enterprises to cooperate in the Japan Fair Trade Commission (JFTC) 's investigation 
and imposing an appropriate amount of surcharges according to the nature and extent of the 
violation. The enacted act shall come i nto effect on the date specified in the Cabinet Order within 
one year and six months from 26 June 2019.  
4.8.  In accordance with the conclusion of the Trans -Pacific Partnership (TPP) agreement and the 
Comprehensive and Progressive Agreement for Trans -Pacific Par tnership (CPTPP), a scheme so -
called "Commitment Procedures " was introduced into the Antimonopoly Act (AMA). It has been put 
into force since 30 December 2018. The Commitment Procedures would enable the JFTC and 
alleged violators to communicate with each o ther throughout all the procedures after the launch of 
the investigation. It is considered that the Commitment Procedure would facilitate early resolution 
of competition concerns and contribute to the effective and efficient enforcement of the AMA by WT/TPR/G/397 • Japan  
 
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resolving more cases through cooperation between the JFTC and alleged violators. Ensuring the 
transparency and the predictability regarding the enforcement of the law related to Commitment 
Procedures, the JFTC established rules and policies such as the "Rules o n Commitment Procedures 
by the Fair Trade Commission " and the "Policies Concerning Commitment Procedures ". 
4.9.  The JFTC has been taking  rigorous  legal actions  against  violations  of the AMA. The number  
of legal cases  against  such violations  amounted  to 9 in 2017 and 19 in 2018.  (Please  refer to 
Table  4.1). 
Table 4.1  
 
Private monopolization  2017  2018  
Bid-rigging  7 14 
Cartels  (excluding bid -rigging)  1 2 
Unfair  trade practices  1 2 
Others  0 1 
Private  monopolization  0 0 
Total cases  9 19 
4.10.   The total amount  of surcharge  payment  orders  issued  by the JFTC was estimated  at 
JPY 7504.25 million  in 2017 and JPY 2153.21  million  in 2018.  
4.11.   The JFTC has adopted  a proactive  policy  of indicting  violations  of the AMA and imposing  
criminal  penalties  on violators.  In March  2018,  the JFTC indicted  one case. 
4.5  Current Situation and Measures for Radioactive Materials in Foods  
4.12.   Japan, shortly after the accident at the Tokyo Electric Power Co. (TEPCO) Fukushima Daiichi 
Nucle ar Power Station (NPS) in March 2011, has taken a comprehensive set of measures such as 
decontamination of the farm land and fruit trees, control over feeds and agricultural inputs and 
introduced a risk -based food monitoring scheme.  
4.13.   The maximum levels of r adioactive caesium in food were set to meet the intervention 
exemption level of the Codex Alimentarius Commission (Codex), 1mSv/year, considered as safe for 
the public, and in consideration of the released nuclides and with highly conservative and 
hypothet ical assumptions, including that 50% of the food intake is contaminated. Accordingly, the 
maximum level for food in general is set as 100 Bq/kg in Japan2, while the corresponding Codex 
guideline level is 1,000 Bq/kg (CXS 193 -1995).  
4.14.   Japan 's national laws ma ndate that food products which exceed these stringent maximum 
levels be recalled and disposed of, and if exceeding cases are observed in a particular product over 
an area, their distributions be restricted on an area basis. Japan's regulatory framework thu s ensures 
that food products exceeding the maximum level are neither distributed in domestic market nor 
exported to third countries.  
4.15.   As a result of these comprehensive approaches, food products drastically exceeding the 
Japanese maximum level decreased in a few years after the accident and the detection rate has 
been remaining low and stable for many years. The sampling is purposive 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.  
4.16.   Since early 2013 (the last case in April), none of the farm products and fishery harvests have 
ever exceeded the Codex guideline level defined as safe for human consumption, and even the wild 
edible fungi, fern sprout and leaf buds have not exceeded the level for food with small consumption, 
similarly for almost six years3 (the last case in May 2013). The only harvests which still exceed the 
level is certain game meat, although the detection rate  is very low, and those detected are neither 
distributed nor exported.  
                                                
2 Provisionally 500 Bq/kg before April 2012.  
3 None of them have exceeded the guideline level since the last case in September  2016.  WT/TPR/G/397 • Japan  
 
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4.17.   Above all, Japan needs to look at the dose in terms of human health. While food regulation is 
operationalized through maximum levels in food, what matters is overall annual dose exposur e from 
food. The biannual market basket surveys which have been conducted since September 2011 at 
plural study sites including Fukushima show that the estimated annual effective dose from 
radioactive caesium in food has been digits smaller than the interve ntion exemption level of 
1 mSv/year and is currently only detected at micro level.4 The effect is significantly lower for 
consumers in foreign countries, considering the committed share of Japanese food imports in the 
total food consumption.  
4.18.   The Joint FAO/ IAEA Division stated on 6 September 2019, Japan's "measures to monitor and 
respond to issues regarding radionuclide contamination of food are appropriate", and "the food 
supply chain is controlled effectively by the relevant authorities".  
__________  
                                                
4 Maximum 0.0011  mSv/year in Sep . - Oct. 2018, 1/1 ,000 of the intervention exemption level.