G/AG/N/JPN/220  
 
3 July  2017 
(17-3571) Page: 1/4 
Committee on Agriculture  Original: English  
 
 
NOTIFICATION  
The following submission, dated 28 June  2017, is being circulated at the request of the Delegation 
of Japan . The notification concerns new or modified domestic support measures exempt from 
reduction ( Table DS:2 ). G/AG/N/JPN/220  
 
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  Table DS:2  
DOMESTIC SUPPORT:  JAPAN  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction commitment  
(1) Full title of measure:   
Multifunctional Payme nt (Direct payment for multi -functionality of agriculture)  
a. Farmland Maintenance Payment  
b. Resource Improvement Payment  
(2) Domestic legislation reference:   
The Act on Multi -Functionality of Agriculture  
Administrative Orders for Multifunctional Payment  
(3) Detailed description of measure with reference to criteria, i.e. those in:  
The decline in the functions of rural communities associated with depopulation and aging of 
the population in Japan has been making it hard to conserve local resources such as 
farmland and irrigation canals. This issue needs to be addressed since it is hindering 
maintenance and demonstration of multifunctional roles of agriculture and rural areas such 
as conserving national land and recharging water.  
Under these circumstances, this p rogramme provides assistance for community -
collaborative activities with a view to fundamentally conserving and improving the rural 
environment, as well as land and irrigation canals.  
a. Farmland Maintenance Payment  
This government programme provides assistance for the collaborative of rural 
communities that preserve and improve rural resources such as farmland and 
irrigation canals.  
The programme conforms to the basic criteria of Paragraph 1 of Annex 2 of the 
Agreement on Agriculture:  
 
i. The support is provided through a publicly -funded government programme not 
involving transfers from consumers; and,  
ii. The support does not have the effect of providing price support to producers.  
In addition, it meets the criteria of Paragraph 12 of Annex 2 of the Agreement on 
Agriculture regarding environmental programmes:  
 
i. The payments are only provided for eligible rural communities which fulfil the 
requirements prescribed in the Administrative Order for Multifunctional Payment;  
ii. The amount of payments is limited to the extra costs necessary for collaborative 
activities of rural communities to conserve rural resources, such as shovelling  dirt 
of irrigation canals and weeding of farm roads shoulders.  
b. Resource Improvement Payment  
This government programme provides as sistance for the collaborative activities of 
rural communities that enhance quality of rural resources such as farmland and 
irrigation canals.  
The programme conforms to the basic criteria of Paragraph 1 of Annex 2 of the 
Agreement on Agriculture:  
 
i. The sup port is provided through a publicly -funded government programme not 
involving transfers from consumers; and,  G/AG/N/JPN/220  
 
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  ii. The support does not have the effect of providing price support to producers.  
In addition, it meets the criteria of Paragraph 12 of Annex 2 of the Agreement on 
Agriculture regarding environmental programmes:  
 
i. The payments are only provided for eligible farm groups which fulfil the 
requirements prescribed in the Administrative Order for Multifunctional Payment;  
ii. The amount of payments is limited to the  extra costs necessary for collaborative 
activities of rural communities to enhance quality of rural resources such as 
farmland and irrigation canals.   
(4) Cost of measure:  
Multifunctional Payment ( Farmland Maintenance Payment and Resource Improvement 
Payment): FY 2014: 45.3 billion Yen  
(5) Date of entry into effect:  1 April 20 14. 
(6) Period of application:  FY 20 14.  
(7) Product to principally benefit (if any individual products(s)):  None.  
 G/AG/N/JPN/220  
 
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  Table DS:2  
DOMESTIC SUPPORT:  JAPAN  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction commitment  
(1) Full title of measure:   
Agriculture, forestry and fisheries Fund corporation for Innovation, Value -chain and 
Expansion Japan (A-FIVE) . 
(2) Domestic legislation reference:  
The Act for Agriculture, forestry and fisheries Fund corporation for Innovation, Value -chain 
and Expansion Japan.  
(3) Detailed description of measure with reference to criteria, i.e. those in:  
This programme is  classified as "(f) marketing and promotion services" in “General services” 
of Paragraph 2 of Annex 2 of the Agreement on Agriculture.  
This government programme provides fund supply such as investment and subordinated 
loan and other support to activities t hat farmers, foresters and fishers develop new business 
areas in order to revitalize rural areas, stabilize and improve business in agriculture, forestry 
and fisheries through making agriculture, forestry and fisheries competitive. To be specific, 
the targ et of this programme is farmers, foresters and fishers whose business integration 
plans are approved under the Act on Affrinnovation  (sixth industrialization) and Local 
Consumption of Local Produce and also who satisfy some requirements.  
This programme conforms to the basic criteria of Paragraph 1 of Annex 2 of the Agreement 
on Agriculture, as the support:  (a) is provided directly or indirectly to farmers, foresters and 
fishers by A -FIVE, which is funded by the government, and not involving transfers fr om 
consumers; and (b) does not have the effect of providing price support to producers since 
the investment aims at developing new business areas by farmers, foresters and fishers.  
It also meets the criteria in (f) in Paragraph 2 of Annex 2 of the Agreemen t on Agriculture 
since the programme provides support to activities to develop new business areas through 
developing new products, introducing new sales measures by  farmers, foresters and fishers, 
aimed at promoting sales of agriculture, forestry and fish ery products.  
(4) Cost of measure:  
FY 2013:  91.5 million Yen  
FY 2014:  1,276.7 million Yen  
(5) Date of entry into effect:  
1 February 2013 (Opening date of A -FIVE)  
(6) Period of application:   
FY 2012  -  
(7) Product to principally benefit (if any individual  products(s)):  None 
 
 
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