WT/REG361/1/Rev.1  
28 April 2016  
(16-2391)  Page: 1/51  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
ECONOMIC PARTNERSHIP AGREEMEN T BETWEEN JAPAN AND AUSTRALIA 
(GOODS AND SERVICES) 
Report by the Secretariat 
Revision 
This report, prepared for the consideration of the Economic Partnership Agreement 
between Japan and Australia, has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The factual presentation reproduces as closely as possible the terminology used in the Agreement and in the comments provided and does not imply offi cial endorsement or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement. 
Any technical questions arising from this report may be addressed to 
Mr. Peter Milthorp (tel: +41 22 739 5016). Any statistical questions arising from this 
report may be addressed to Ms Rowena Cabos (+41 22 739 5185). 
 
  WT/REG361/1/Rev.1 
 
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TABLE OF CONTENTS 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
1.2   Trade in servic es and inve stment ................................................................................. 6  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 9  
2.1   Background  Information ............................................................................................. 9  
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 11  
3.1   General provisions .................................................................................................... 11 
3.2   Liberalization of trade and tariff lines ........................................................................... 11 
3.2.1   Liberali zation schedule............................................................................................ 11 
3.2.1.1   Japan ............................................................................................................... . 11 
3.2.1.2   Australia ........................................................................................................... . 13 
3.2.2   Tariff rate quotas ................................................................................................... 14 
3.3   Rules of origin .......................................................................................................... 15 
3.4   Export duties and charges,  and quantitative  restrictions ................................................. 15 
3.5   Regulatory provisions on trade in goods ....................................................................... 16 
3.5.1   Standards ............................................................................................................. 16 
3.5.1.1   Sanitary and phytosanitary measures .................................................................... 16 
3.5.1.2   Technical barriers to trade .................................................................................... 16 
3.5.2   Safeguard mechanisms ........................................................................................... 17 
3.5.2.1   Global safeguards ............................................................................................... 17 
3.5.2.2   Bilateral safeguards ............................................................................................. 17 
3.5.2.3   Special safeguards .............................................................................................. 18 
3.5.3   Anti-dumping and countervailing measures ............................................................... 18 
3.5.4   Subsidie s and State-aid .......................................................................................... 18 
3.5.5   Customs-re lated procedures .................................................................................... 18 
3.6   Sector-specific provis ions on trad e in goods ................................................................. 18 
3.6.1   Food  Security ........................................................................................................ 18 
3.6.2   Energy and Mineral Re sources ................................................................................. 19 
4   PROVISIONS ON TRADE IN SERVICES AND IN VESTMENT ......................................... 19  
4.1   Scope and definitions ................................................................................................ 19 
4.2   Denial of benefits ..................................................................................................... 20 
4.3   General provisions on trade in services and investment .................................................. 21 
4.3.1   Mark et acce ss ....................................................................................................... 21 
4.3.2   National treatment and MFN .................................................................................... 21 
4.3.3   Local presence ...................................................................................................... 21 
4.4   Performanc e requirements ......................................................................................... 21 
4.4.1   Senior management  and board of  direct ors ............................................................... 22 WT/REG361/1/Rev.1 
 
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  4.4.2   Movement of  natural persons .................................................................................. 22 
4.4.2.1   Australia ........................................................................................................... . 22 
4.4.2.2   Japan ............................................................................................................... . 23 
4.5   Liberalization commitments ........................................................................................ 24 
4.5.1   Australia ............................................................................................................... 24 
4.5.1.1   MFN and hori zontal comm itments .......................................................................... 24 
4.5.1.2   Sector Specific commitments ................................................................................ 24 
4.5.2   Japan ................................................................................................................... 29 
4.5.2.1   MFN and hori zontal comm itments .......................................................................... 29 
4.5.2.2   Sector sp ecific commitments ................................................................................ 29 
4.6   Regulatory provisions ................................................................................................ 34 
4.6.1   Domestic regulation ............................................................................................... 34 
4.6.2   Recognition ........................................................................................................... 34 
4.6.3   Subsidies .............................................................................................................. 34 
4.6.4   Safeguards ........................................................................................................... 34 
4.6.5   Expr opriation ........................................................................................................ 34 
4.7   Sector specific provis ions on trade in services ............................................................... 34 
4.7.1   Telecommunication Services .................................................................................... 34 
4.7.2   Financial Services .................................................................................................. 35 
4.7.3   Electronic Commerce .............................................................................................. 36 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 36  
5.1   Tran sparency ........................................................................................................... 36 
5.2   Current payments and capital movements .................................................................... 36 
5.3   Exceptions ............................................................................................................... 36 
5.4   Accession and Withdrawal .......................................................................................... 37 
5.5   Institutio nal framework ............................................................................................. 37 
5.6   Disput e settlement ................................................................................................... 37 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 40 
5.8   Government  procurement .......................................................................................... 40 
5.9   Intellectual property rights ......................................................................................... 41 
5.9.1   Competition and Consumer Protection ...................................................................... 41 
ANNEX 1 ....................................................................................................................... . 43 
ANNEX 2 ....................................................................................................................... . 49 
  WT/REG361/1/Rev.1 
 
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Key Facts 
 
Parties to the Agreement: Japan and Australia 
 
Date of Signature:   8 July 2014 
 
Date of Entry into Force:  15 January 2015 
 
Date of Notification:  12 January 2015 
 
Full implementation:  [1 April 2034] 
 
 
1  TRADE ENVIRONMENT 
1.1.  The Agreement between Australia and Japa n for an Economic Partnership, (hereinafter 
referred to as "the Agreement") is Australia's 9th free trade agreement and Japan's 13th free trade 
agreement.  
1.1  Merchandise trade 1.2.  In 2013 Australia's GDP was estimated at US$1,561 billion, with Japan's at US$4,901 billion. 
In the same year Australia's merchandise expo rts amounted to US$252 billion (1.34% of global 
exports) and imports amounted to US$242 billion (1.28% of global imports). In the same year Japan's merchandise exports amounted to US$717 (3.8% of global exports) and imports US$833 billion (4.41% of global imports)
1. The structure of their merchandise exports and imports 
are very different, with Australia exporting mainly fuels and mining products while imports are 
principally manufactures. Japan's exports are over whelmingly dominated by manufactures. Japan's 
imports are dominated by manufactures, fuels and mining products. 
1.3.  Chart 1.1A and B show global and bilateral trends in merchandise trade for the Parties for the 
period 2002-2014. Australia's merchandise trade (imports) with the world expanded from US$70 billion in 2002 to 250 billion in 2012 before trending downwards in the most recent period. Australia has run a consistent surplus in its trade with Japan.  
1.4.  Japan's import trade with the world rose from US$400 billion in 2002 to more than US$800 in 
2012, dropping slightly to 2014. Japan has run a consistent trade deficit with Australia over the period. The value of bilateral trade between the Pa rties has grown substantially over the period.  
                                               
1 Source: WTO Trade Profiles, June 2015. WT/REG361/1/Rev.1 
 
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  Chart 1.1 Japan and Australia: Merchandise bilateral trade and with world, 2002-2014 
020406080100
050100150200250300
2002 2004 2006 2008 2010 2012 2014B. Australia 2002-2014
(US$ Billion)
Imports from Japan (Right Axis)
Exports to Japan (Right Axis)
Total Imports
Total Exports
020406080100
01002003004005006007008009001,000
2002 2004 2006 2008 2010 2012 2014A. Japan 2002-2014
(US$ Billion)
Imports from Australia (Right Axis)
Exports to Australia (Right Axis)
Total Imports
Total Exports
 
Source: UNSD Comtrade database and Australian auth orities (bilateral and global imports for 2012-2014). 
 
1.5.  The commodity structure of trade among the Parties, as well as of their imports and exports 
to the world in the period 2012-2014, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections. Over the period, Australia's largest global export product categories were minerals 
(57%), precious stones, vegetable products, live animals, base metals and chemicals accounting 
for another 27% of its global exports. In comp arison, the majority of Japan's imports from 
Australia were minerals (85%), live animals, base metals and vegetable products (accounting for 
10.5%). Japan's largest global export product categories were machinery, vehicles, base metals 
and chemicals (76% of global exports). However, Australia's main imports from Japan were vehicles (48%), machinery (18%) minerals (14%) and base metals (6%)(86% of Japan's exports 
to Australia). Thus both parties appear to reflect a considerably different pattern of trade in their 
bilateral relations rather than globally.   WT/REG361/1/Rev.1 
 
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  Chart 1.2 Japan and Australia: product co mposition of merchandise trade, annual 
average (2012-2014) 
855335Japan imports from Australia (%)
37
19754333332226Japan's Global Imports (%)
57
6555532226Australia's Global Exports (%)
48
1814652223Australia's imports from Japan (%)
25
17
14964444339Australia's Global Imports(%)
35
249865211Japan's Global Exports(%)Total: US$ 52 billion Total: US$847 billion
Total: US$ 253 billion Total: US$733 billionTotal:  US$ 250 billion
Total: US$ 18 billion
 
Source: UNSD Comtrade database and Australian  authorities (bilateral and global imports). 
 
1.2  Trade in services and investment 
1.6.  Charts 1.3 and 1.4 depict the Parties' trade flows in services with each other and the world 
and by type of activity. In 2014 services global  exports from Japan amounted to US$162.4 billion 
(3.13% of world exports), and imports to US$ 191.6 billion (3.7% of world imports). Japan's 
exports of services to Australia amounted to US$2.68 billion in 20132 accounting for  1.2% of world 
exports, and imports of US$2.44 billion accounting for 1.12% of world imports. Transportation and 
communication services are Japan's largest export and import of services. It runs a deficit in its 
global trade in commercial services. 
1.7.  In 2013, travel services accounted for 42.6% of Australia's global services imports, transport 
services (24.7%) and other commercial services (32.7%). These categories were also those with 
the largest export shares of its global services exports; travel (59.4%) other commercial services 
(29.1%) and transportation (11.5%).  
1.8.  In terms of bilateral trade with Japan, Australia has run a near equal trade balance with 
Japan over the period. In 2013, travel services accounted for 60% of Australia's exports to Japan, 
followed by transport services (27.5%) and other business services (5.8%).  
                                               
2 The most recent year for which data  was provided by Australia was 2013. WT/REG361/1/Rev.1 
 
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  1.9.  On FDI, Chart 1.3 depicts Japan's FDI stock and flow with Australia and the world 
(2012-2014). Japan is a net exporter of global FD I in terms of both stocks and flows over the 
period analysed. FDI flows with Australia have re mained around the same level over the period. 
Chart 1.3 Japan's trade in commercial services  and investment with Australia and world 
050100150200
2002 2004 2006 2008 2010 2012 2014C. Japan imports from world
2002-2014
(US$ Billion)
050100150200
2002 2004 2006 2008 2010 2012 2014D. Japan exports to world
2002-2014
(US$ Billion)
012345
2012 2013A.  Japan imports from Australia
2012-2013
(US$ Billion)
012345
2012 2013B. Japan exports to Australia
2012-2013
(US$ Billion)
 
Note:  No trade data with the world for Royalties and license fees (2014); no bilateral export data for 
Personal, cultural and recreational services (2013). 
 Trade in services statistics is based on BPM6 from 2014. 
Source: WTO Statistics Database and data provided by the authorities of Japan.  WT/REG361/1/Rev.1 
 
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  Chart 1.4 Australia's trade in commercial services and investment with Japan and 
world
0.00.51.01.52.02.53.0
2011 2012 2013A. Australia imports from Japan
2011-2013
(US$ Billion) 
0.00.51.01.52.02.53.0
2011 2012 2013B. Australia exports to Japan
2011-2013
(US$ Billion) 
01020304050607080
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014C. Australia imports from world
2005-2014
(US$ Billion) 
01020304050607080
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014D.Australia exports  to world
2005-2014
(US$ Billion) 
Manufacturing services on physical inputs owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational services  
Note:  No bilateral trade on Manufacturing services  on physical inputs owned by others (2011-2013), 
Construction (2012-2013) and no bilateral imports on Construction (2011). No imports from world on Manufacturing services on phys ical inputs owned by others (2006-2014) and Construction (2005-
2014). 
 Trade in services statistics is based on BPM6. 
Source: WTO Statistics Database and data provided by the authorities of Australia. 
1.10.  Chart 1.5 depicts the Parties' FDI stock and flow bilaterally with the world. Australia was a 
net recipient of global FDI flows. Its global FDI stock continues to register a positive inward 
balance with inward FDI growing more rapidly than outward FDI especially since 2010. Japan is a net FDI investor, with outward investment growin g more rapidly during the period, with inward 
investment stagnating. Japan also remains a net investor in Australia. WT/REG361/1/Rev.1 
 
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  Chart 1.5 Australia and Japan: FDI stock an d flow with bilateral partner and world 
0100200300400500600700
2012 2013 2014Australia FDI stock with Japan
2012-2014
(US$ Billion) 
Outward
Inward
010203040506070
2012 2013 2014Australia FDI flow with Japan
2012- 2014
(US$ Billion) 
Outward
Inward
0100200300400500600700
2002 2004 2006 2008 2010 2012 2014Australia FDI stock with world
2002-2014
(US$ Billion) 
Outward
Inward
-40-20020406080
2002 2004 2006 2008 2010 2012 2014Australia FDI flow with world
2002-2014
(US$ Billion) 
Outward
Inward
02004006008001,0001,2001,400
2001 2003 2005 2007 2009 2011 2013Japan FDI stock with world
2001-2013
(US$ Billion) 
Outward
Inward
-20020406080100120140160180
2001 2003 2005 2007 2009 2011 2013Japan FDI flow with world
2001-2013
(US$ Billion) 
Outward
Inward
 
Source: UNCTAD and data provided by the authorities of Australia (2012-2014) and Japan (2012-2013). 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement between Australia and Japan fo r an Economic Partnership (hereinafter called 
"the Agreement") was signed by the Parties on 8 July 2014. It was notified to the WTO in document WT/REG361/N/1/Add.1 under Article XXIV:7(a) of GATT 1994 and Article V:7(a) of GATS on 12 January 2015 (S/C/N/787). The Agreement entered into force on 15 January 2015.  
2.2.  The text of the Agreement is available from the following websites: 
Australia: http://dfat.gov.au/trade/agreements/jaepa /official-documents/Documents/jaepa-
chapters-1-to-20.docx  
 
Japan:  http://www.mofa.go.jp/ecm /ep/page22e_000430.html   WT/REG361/1/Rev.1 
 
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  2.3.  The Agreement is composed of 20 Chapters and 13 Annexes (See Box 2.1 below). Chapter 1 
of the Agreement (Articles 1.1-1.14) sets out general provisions of the Agreement. Article 1.1 provides that the Parties hereby establish a free trade area consistent with Article XXIV of the GATT 1994 and Article V of the GATS. Article 1.2 sets out definitions used in the Agreement. 
Box 2.1 Contents of the Association Agreement  
Chapters, and Annexes Title/description  
Chapter 1 General Provisions 
Chapter 2 Trade in Goods 
Chapter 3 Rules of Origin 
Chapter 4 Customs Procedures 
Chapter 5 Sanitary and Phytosanitary Cooperation 
Chapter 6  Technical Regulations, Standards and Conformity Assessment Procedures 
Chapter 7 Food Supply 
Chapter 8 Energy and Mine ral Resources 
Chapter 9 Trade in Services 
Chapter 10 Telecommunications Services 
Chapter 11 Financial Services 
Chapter 12 Movement of Natural Persons 
Chapter 13 Electronic Commerce 
Chapter 14 Investment 
Chapter 15 Competition and Consumer Protection 
Chapter 16 Intellectual Property 
Chapter 17 Government Procurement 
Chapter 18 Promotion of a Closer Economic Re lationship 
Chapter 19 Dispute Settlement 
Chapter 20 Final Provisions 
  
Annexes Title 
Annex 1 Schedules in relation to Article 2.4 (Elimination or reduction of customs duties) 
Annex 2 Rules of Origin – Product Specific Rules (Chapter 3) 
Annex 3 Data Elements for Docu mentary Evidence of Origin (Chapter 3) 
Annex 4 List of Essential Food (Chapter 7) 
Annex 5 List of Energy and Mineral Resource goods (Chapter 8) 
Annex 6 Non-Conforming Measures relating to Paragraph 1 of Articles 9.7 and 14.10 
(Chapters 9 and 14) 
Annex 7 Non-Conforming Measures relating to Paragraph 2 of Articles 9.7 and 14.10 
(Chapters 9 and 14) 
Annex 8 Recognition of Qualifications of Service Suppliers (Chapter 9) 
Annex 9  Financial Services (Chapter 11) 
Annex 10 Specific Commitments on the Movement  of Natural Persons (Chapter 8) 
Annex 11 Subsidies (Chapter 14) 
Annex 12 Expropriation (Chapter 14) 
Annex 13 Government Procurement (Chapter 17) 
 WT/REG361/1/Rev.1 
 
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  3  PROVISIONS ON TRADE IN GOODS 
3.1  General provisions 3.1.  Chapter 2 of the Agreement, Articles 2.1-2.23 concerns trade in goods. It is split into 3 
sections on general rules, safeguard measures and other provisions. Article 2.1 sets out definitions 
used in the Chapter. Article 2.11 requires that all automatic and non-automatic import licences are 
administered in a transparent manner and in a ccordance with the WTO Agreement on Import 
Licensing Procedures. Following the entry into force of the Agreement, the Parties will notify each 
other of their import licensing procedures, includ ing the information specified in Article 5 of the 
WTO Agreement on Import Licensing Procedures. Any new procedures or changes to existing procedures will be published promptly and whenev er practicable, 21 days prior to the effective 
date of the change or new procedure but in any case not later than the effective date. 
3.2.  Article 2.3 provides that each party shall a ccord national treatment to the goods of the other 
Party in accordance with Article III of the GATT 19 94. Article III of the GATT 1994 is incorporated 
by reference into the Agreement.  
3.2  Liberalization of trade and tariff lines 
3.3.  Article 2.4.1 provides that except as othe rwise provided for in the Agreement, each Party 
shall eliminate or reduce its customs duties on or iginating goods of the other Party in accordance 
with its Schedule in Annex 1 to the Agreement. Either Party may also initiate further negotiations 
by request on improving market access conditions  on originating goods designated for negotiation 
in the Schedules to Annex 1.
3  
3.4.  Article 2.20.1 provides that for the purp oses of Article 2.4 of the Agreement, goods 
specifically indicated (marked with "S" in column 4 of the Schedule in Section 2 of a Party's 
Schedule to Annex 1 of the Agreement) in the Part ies' Schedules shall be subject to review by the 
Parties in the 5th year after entry into force of the Agreement (or earlier if agreed) with a view to 
improving market access conditions. Article 2.20.2 provides for a review in favour of Australia if 
the indicated goods are subject to a significant ch ange in competitiveness in the Japanese market 
as a result of Japan entering an international agreement with a non-party that is concluded with a 
view to providing equivalent treatment to the originating good of Australia. In such a case the 
Parties agree to commence a review within 3 months of entry into force of such an agreement, and aim to conclude it within 6 months. There is no similar provision in favour of Japan.  
3.2.1  Liberalization schedule 
3.2.1.1  Japan 
3.5.  Tariff elimination started on 15 January 2015, and subsequent reductions take place on 
1 April of each year. Except as otherwise prov ided, Japan eliminates customs duties on all 
originating goods listed in Annex 1 from the date  of entry into force of the Agreement. Tariff 
liberalization commitments are spread out over the period 2015-2031.
4 
3.6.  Table 3.1 below shows tariff and trade liberalization offered by Japan to Australia under the 
Agreement. In 2015, 40.3% of Japan's schedule was duty free on an MFN basis, corresponding to 
93.7% of its average imports from Australia duri ng 2012-2014. Upon the entry into force of the 
Agreement in 2015, Japan liberalized an additional 37.7% of the tariff lines corresponding to 1.2% 
of its imports during 2012-2014 from Australia. Following 10 years of liberalization, by 2024, 
Japan is expected to have liberalized 90.2% of its tariff lines for imports from Australia. In 2029 
around 9.5% of the tariff will remain subject to duty for imports from Australia, corresponding to 
4.2% of Japan's imports from Australia during 2012-2014. 
                                               
3 Article 2.22 concerns procedures for amendment of Annex 1 of the Agreement. 
4 Under the Agreement, tariff elimination  ends in 2029, tariff reduction  (without elimination) ends in 
2031.  WT/REG361/1/Rev.1 
 
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  Table 3.1: Japan 
Tariff elimination commitments under the Ag reement and corresponding average trade 
Duty 
phase-out 
period Number of 
lines % of total lines 
in Japan's tariff 
schedule Value of Japan's 
imports from Australia  
(2012-2014) 
US$ million % of Japan's total 
imports from  
Australia 
2012-2014 
MFN duty 
free (2015) 3,691 40.3 48,298.9 93.7 
January 
2015 3,447 37.7 622.6 1.2 
2017 25 0.3 0.5 0.0 
2018 452 4.9 1.5 0.0 
2019 118 1.3 64.6 0.1 
2021 218 2.4 209.3 0.4 
2024 308 3.4 204.6 0.4 
2029 24 0.3 4.1 0.0 
Remaining 
dutiable 868 9.5 2,153.2 4.2 
Total 9,151 100.0 51,559.4 100.0 
Note: Tariff lines subject to in-quota rates at th e MFN and Preferential level are excluded in the 
computation.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data from Japanese authorities. 
 
3.7.  Table 3.2 sets out the tariff lines by HS Section subject to immediate and staged 
liberalization by Japan. At the end of implementation, tariff lines remaining dutiable for imports from Australia will be found mainly in HS Sections I-IV but also in Sections VI, VIII, IX, XI and XII. 
Table 3.2: Japan - Tariff elimination under the Agreement, by HS Section 
 
HS 
Section MFN 
average 
% No. of 
lines 
Duty-free 
lines under 
the MFN 
2015 Number of duty-free lines under the 
Agreement 
Remain 
dutiable 
Avg. Final 
Tariff 
(Dutiable) January 
2015 
2017 
2018 
2019 
2021 
2024 
2029 
I 8.8 722 116 291 3  7 1 11  293 16.2 
II 6.0 586 184 177 13  42 23 36 5 106 20.3 
III 3.6 89 22 25   7 6 8 1 20 19.7 
IV 15.9 789 82 119 3  59 79 86 18 343 22.9 
V 0.7 255 174 80     1    
VI 2.3 1,077 395 670   1 2   9 13.0 
VII 2.5 296 103 166    25 2    
VIII 10.5 193 65      99  29 16.8 
IX 3.4 265 95 133  3     34 7.1 
X 0.0 166 166          
XI 6.4 1,969 86 1,360  446  72   5 6,087 yen/kg  
XII 16.4 105 6 23     47  29 25.5 
XIII 1.2 163 99 62     2    
XIV 1.4 78 56 17     5    
XV 0.9 846 609 213 6 1 2 10 5    
XVI 0.0 918 911 7         
XVII 0.1 145 144 1         
XVIII 0.2 271 262 6     3    
XIX 6.9 22  22         
XX 1.7 189 109 75  2   3    
XXI 0.0 7 7          
Total 4.8 9,151 3,691 3,447 25 452 118 218 308 24 868 19.2 
Note: Tariff lines subject to in-quota rates at th e MFN and Preferential level are excluded in the 
computation. For the calculation of averages , specific rates are excluded and only the ad valorem 
part of alternate rates is included.  
 Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on data from Japanese authorities. WT/REG361/1/Rev.1 
 
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  3.8.  Chart 3.1 shows average duties under the Ag reement and on an MFN basis by HS Chapter for 
Japan, once the Agreement is fully implemented. While for a number of Chapters the average MFN and preferential rates are the same suggesting  no preferential treatment for imports from 
Australia, the final average preferential tariff is lower than the MFN average in some Chapters, 
especially in HS Chapters 2 (preferential aver age of 14.8% compared to the MFN average of 
19.7%), 8 (15.8% compared to the MFN average of 19.7%), 18 (21.8% compared to 23.5%), 15 (19.7% and 21.3%) and 20 (23.8% and 24.5%).  
Chart 3.1 Japan: Average of du tiable rates by HS chapter 
05101520253035
01
0203040708
10
111215161718192021222324293541
42
4344
*50
64Rate of duty (%)
HS ChapterMFN Preferential
 
Note: *HS chapter 50 contains specific duties only. 
 For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2012 nomenclature. 
Source: WTO estimates based on data subm ission from the Japanese authorities. 
 
3.2.1.2  Australia 
3.9.  As shown in Table 3.3, 47.6% of Australia's  tariff lines were duty free on an MFN basis in 
2015, corresponding to 30.2% of Australia's to tal average imports from Japan in 2012-2014. 
Following the Agreement's entry into force (Janua ry 15 2015), Australia liberalized an additional 
43% of lines, representing 52.2% of its imports from Japan between 2012 and 2014. Liberalization 
continues until 2021 at which point 99.9% of tariff lines, corresponding to 99.8% of imports from 
Australia will be duty free. A total of 8 lines will  remain subject to duties once the Agreement is 
fully implemented.  
Table 3.3: Australia 
Tariff elimination commitments under the Ag reement and corresponding average trade 
Duty phase-out 
period Number 
of lines % of total lines 
in Australia's 
tariff schedule Value of Australia's 
imports from Japan 
(2012-2014) 
US$ million  % of Australia's 
total imports from  
Japan 
2012-2014 
MFN duty free (2015) 2,943 47.6 5,294.3 30.2 
January 2015 2,658 43.0 9,165.8 52.2 
2016 77 1.2 2,028.8 11.6 
2018 443 7.2 1,017.0 5.8 
2021 55 0.9 6.0 0.0 
Remain dutiable 8 0.1 32.4 0.2 
Total 6,184 100.0 17,544.3 100.0 
Note: Based on the HS 2012 nomenclature.  
 Exchange rate used for Australian dollar per US dollar: 0.966 (2012), 1.036 (2013), 1.109 (2014). 
Source:  WTO estimates based on da ta from Australian authorities.  WT/REG361/1/Rev.1 
 
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  3.10.  Table 3.4 sets out the tariff lines by  HS Section subject to immediate and staged 
liberalization by Australia until 2021. All the lines remaining dutiable at the end of implementation are in HS Section XVII (second hand motor vehicles). 
Table 3.4 Australia: Tariff elimination under the Agreement, by HS Section 
 
HS 
Section MFN 
average %  No. of 
lines Duty-free lines 
under the  
MFN 2015 Number of duty-free lines 
under the Agreement 
Remain 
dutiable Avg. Final 
Tariff 
(Dutiable) January 
2015 
2016 
2018 
2021 
I 0.0 339 332 7      
II 0.7 314 270 44      
III 1.8 49 31 18      
IV 2.6 287 139 148      
V 0.4 198 184 14      
VI 1.4 872 625 247      
VII 4.5 238 24 135 1 78    
VIII 3.4 92 29 60  3    
IX 3.3 143 50 93      
X 3.7 283 72 211      
XI 4.1 911 160 513  204 34   
XII 2.5 60 30 10   20   
XIII 3.4 161 50 101  10    
XIV 1.0 53 42 11      
XV 3.5 583 171 347 3 62    
XVI 2.9 953 405 484 21 43    
XVII 3.5 238 72 77 52 29  8 $12,000 each 
XVIII 0.9 240 196 35  8 1   
XIX 1.6 19 13 6      
XX 3.6 144 41 97  6    
XXI 0.0 7 7       
Total 2.6 6,184 2,943 2,658 77 443 55 8 $12,000 eacha 
a Note: this total is the average of all remaining duty rates.  
Note: Based on the HS 2012 nomenclature. Source:  WTO estimates based on da ta from Australian authorities. 
 
3.11.  Australia imposes an MFN combined ( ad valorem  and specific) duty on imports of second 
hand motor vehicles. Under the Agreement the ad valorem  component (5%) is eliminated, but the 
larger portion of the duty (specific) is retained for imports of second hand motor vehicles from Japan. This specific duty remains after liberalization, applying to 8 tariff lines. 
Table 3.5 Australia: Tariff lines remaining dutiable under the Agreement 
Tariff Line Description MFN 2015 Preferential 
87032111 --- Used or second hand vehicles 5%, and $12,000 each $12,000 each 
87032211 --- Used or second hand vehicles 5%, and $12,000 each $12,000 each 
87032311 --- Used or second hand vehicles 5%, and $12,000 each $12,000 each 
87032411 --- Used or second hand vehicles 5%, and $12,000 each $12,000 each 
87033111 --- Used or second hand vehicles 5%, and $12,000 each $12,000 each 
87033211 --- Used or second hand vehicles 5%, and $12,000 each $12,000 each 
87033311 --- Used or second hand vehicles 5%, and $12,000 each $12,000 each 
87039011 --- Used or second hand vehicles 5%, and $12,000 each $12,000 each 
Source:  WTO estimates based on da ta from Australian authorities. 
3.2.2  Tariff rate quotas 
3.12.  Article 2.8.2 provides that each Party shall ensure the transparency of its non-tariff 
measures permitted under paragraph 1, including quantitative restrictions. There are no specific 
provisions in the Agreement concerning tariff rate quotas (TRQs). Japan's MFN and preferential 
TRQs are set out in Part 3 of Annex 1 to the Agreement. Japan maintains 317 MFN TRQs of which 170 tariff lines are subject to in-quota duties. There are 111 products (under the categories Q and 
QS) which are subject to preferential treatmen t under the Agreement. The TRQs concern pork, WT/REG361/1/Rev.1 
 
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  edible bovine offal, poultry, yoghurt, cheese and curd, honey, malt, prepared and preserved 
meats, sugar confectionary, chocolates, orange and apple juice, ice cream and dextrins. Annex II lists the tariff lines concerned along with the qu ota quantities, and preferential and current MFN 
tariffs.  
3.3  Rules of origin 
3.13.  Chapter 3, Articles 3.1-3.29 and Annexes 2 and 3 of the Agreement concern rules of origin 
under the Agreement. Definitions used in the Chapter are set out in Article 3.1.  
3.14.  Article 3.2 provides that for the purposes  of the Agreement, a good shall be treated as 
originating if it (a) is wholly obtained in a Party per Article 3.3, (b) is produced entirely in the Party exclusively from originating materials of the Party, (c) satisfies the requirements of Article 3.4 as a 
result of processes performed entirely in one or both Parties by one or more producers and the last 
process of production of the good, other than the operations provided for in Article 3.7 was 
performed in the exporting Party, or (d) otherwise qualifies as an originating good. The good must also meet other applicable requirements of the Chapter.  
3.15.  Article 3.3, on wholly obtained goods, provides that the goods described in 
sub-paragraphs (a)-(l) will be considered wholly obtained in a Party.  
3.16.  Article 3.4 outlines the circumstances under which goods produced using non-originating 
materials may be considered originating. Article 3.4.1 provides that goods satisfying the product 
specific rules outlined in Annex 2 of the Agreement shall be considered originating. The product specific rules generally require a change in tariff classification (CTC), either at the Chapter, Heading or Sub-Heading levels. In some cases an alternate rule is available, for example either 
CTC or a qualifying value content (QVC) of 40%. In the case of some chemical, plastic products 
and textiles, production process rules are also provided as an alternate rule. According to Article 3.4.3, a good that does not meet the required CTC or a specific manufacturing or 
processing operation may still qualify as originating if the total value of non-originating materials 
used in the production of the good that have not undergone the required CTC or a specific manufacturing or processing operation does not exceed 10% of the FOB value of the good; for 
textiles (HS 50-63) the requirement is that the weight of all non-originating materials used in the 
production of the good that have not undergone the required CTC does not exceed 10% of the total weight of the good. This rule shall not apply to goods under HS 1-24 except where the non-originating material used in the production of th e good is under a different subheading than the 
good for which origin is being determined under Article 3.4. 
3.17.  Article 3.5.2 provides a formula for calculation of qualifying value content for an originating 
product specific good. Article 3.6 permits bilateral accumulation of origin when an originating good 
of a Party is used as a material in the production of the good in the territory of the other Party. 
Article 3.7 specifies non-qualifying operations. Articles 3.8-3.13 concern other elements in determination or retention of origin. Requirements concerning certificates of origin are set out in 
Articles 3.15 and 3.16. Verification of origin is described in Articles 3.21 and 3.22.  
3.18.  Annex 2 provides product specific rules for determination of origin for the products. The 
rules are set out in column 3 and 4 of Annex 2. Annex 3 to the Agreement sets out Data Elements for Documentary Evidence of Origin.  
3.4  Export duties and charges,  and quantitative restrictions 
3.19.  Article 2.6 provides that neither Party shall adopt or maintain any duties on a good exported 
from the Party into the other Party, unless those duties are not in excess of those imposed on the 
like good destined for domestic consumption.  
3.20.  Article 2.8.1 provides that the Parties shal l not adopt or maintain any non-tariff measures, 
including quantitative restrictions on the (import) or on export or sale for export of any good 
destined for the other Party, except in accordance with its rights and obligations under the WTO 
Agreement. Article 2.8.2 provides that each Party shall ensure the transparency of its non-tariff 
measures (NTMs) permitted under Article 2.8.1 and shall ensure that any such NTMs do not create 
unnecessary obstacles to trade between the Parties.   WT/REG361/1/Rev.1 
 
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  3.21.  There are also provisions on the restrict ion of exports related to essential foods under 
Chapter 7 of the Agreement (see section 3.5.1 below). 
3.5  Regulatory provisions on trade in goods 3.5.1  Standards 
3.5.1.1  Sanitary and phytosanitary measures 
3.22.  Chapter 5, Articles 5.1-5.6 concern sanitary and phytosanitary cooperation between the 
Parties. In Article 5.2 the Parties reaffirm their rights and obligations under the WTO Agreement on 
Sanitary and Phytosanitary Measures (Agreement on SPS) In Article 5.3.1 the Parties agree to give 
positive consideration to further cooperation through (a) exchanging views and information bilaterally and in relevant international bodies en gaged in food safety and human, animal or plant 
life or health issues, and (b) facilitating the timely exchange of information on their respective SPS 
measures. In Article 5.3.2 the Parties agree to share notifications made under subparagraph 5(b) 
or 6(a) of Annex B to the Agreement on SPS at the same time the notification is made to the WTO. 
3.23.  Article 5.4 establishes a Sub-Committee on Sanitary and Phytosanitary cooperation. Its 
functions are described in Article 5.4.2 and 3, an d include reviewing and monitoring operation and 
implementation of the Chapter; undertaking consultations to identify and address specific issues that may arise from the application of SPS meas ures with the objective of reaching mutually 
acceptable solutions; and reporting its findings, as appropriate, to and carrying out any other 
functions delegated by the Joint Committee. Its composition is described in Article 5.4 and it shall meet at such venues and times as determined by the Parties. In addition, a Chapter coordinator is established to inter alia  coordinate work of the Sub-Committee and answer all reasonable 
enquiries.
5 Article 5.6 provides that the dispute settlement provisions set out in Chapter 19 on 
Dispute Settlement do not apply to Chapter 5.  
3.5.1.2  Technical barriers to trade 
3.24.  Chapter 6, Articles 6.1-6.11 concern Technical Regulations, Standards and Conformity 
Assessment Procedures. Article 6.1 sets out the sco pe of the Chapter. Article 6.2 provides the 
definitions used in the Chapter. In Article 6.3 the Parties reaffirm their rights and obligations under 
the TBT Agreement. Article 6.4 concerns the use of international standards, guides or 
recommendations, and provides in 6.4.1 that subj ect to paragraph 4 of Article 2 and paragraph 4 
of Article 5 of the TBT Agreement, each Party sha ll use relevant international standards, guides or 
recommendation or their relevant parts as a basis for its technical regulations and conformity 
assessment procedures. Article 6.5 on technical regulations, provides in Article 6.5.1 that in 
accordance with paragraph 7 of Article 2 of the TBT Agreement, each Party shall give positive 
consideration to accepting as equivalent technical regulations of the other Party, even if the 
regulations differ from its own, provided that the Party is satisfied that these regulations 
adequately fulfil the objectives of its own regu lations. Article 6.6, on conformity assessment 
procedures provides that in accordance with Article 6 of the TBT Agreement each Party shall 
ensure to the extent possible that results of conformity assessment procedures conducted in the 
Area of the other Party are accepted. Article 6.7 creates transparency requirements. Under Article 
6.7.3 when making a notification in accordance with paragraph 9.2 or 10.1 of Article 2 or paragraph 6.2 or 7.1 of Article 5 of the TBT Agr eement the Parties shall share the information at 
the same time the notification is made to the WTO.  
3.25.  Article 6.8 establishes a Sub Committee on Technical Regulations, Standards and 
Conformity Assessment Procedures. Its functions ar e described in Article 6.8.2 and 3 and include 
exchanging information on technical regula tions, standards and conformity assessment 
procedures; reviewing and monitoring operation and implementation of the Chapter; consulting on 
TBT related issues including through ad hoc groups; discussing any issue related to the Chapter; 
and reporting its findings, as appropriate, to, and carrying out any other functions delegated by 
the Joint Committee. Its composition is given in Article 6.8.3 and it shall meet at such venues and times as determined by the Parties. In addition, a Chapter coordinator is established to inter alia  
                                               
5 These are the Department of Agriculture or its su ccessor for Australia and the Ministry of Foreign 
Affairs or its successor for Japan. WT/REG361/1/Rev.1 
 
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  coordinate work of the Sub-Committee and answer all reasonable enquiries.6 Article 6.11 provides 
that the dispute settlement provisions set out in Chapter 19 on Dispute Settlement do not apply to Chapter 6. 
3.5.2  Safeguard mechanisms 
3.5.2.1  Global safeguards 
3.26.  Article 2.19 sets out the relation between safeguard measures under the Agreement and 
under the WTO Agreement. Article 2.19.1 provides  that nothing in Chapter 2 of the Agreement 
shall prevent a Party from applying safeguard measures to an originating good of the other Party 
in accordance with (a) Article XIX of the GATT 1994 WTO Agreement on Safeguards or (b) Article 5 of the Agreement on Agriculture. Article 2.19.2 however stipulates that a Party shall not apply nor seek to extend application of a bilateral safeguar d measure on a good that is subject to a measure 
that the Party has applied pursuant to Article XIX of the GATT 1994 and the Agreement on 
Safeguards, or Article 5 of the Agreement on Agriculture. 
3.5.2.2  Bilateral safeguards 
3.27.  Articles 2.13-2.23 concern the application of bilateral safeguard measures. Article 2.13.1 
provides that during the transition period
7 each Party may apply a bilateral safeguard measure to 
the minimum extent necessary to prevent or remedy  the serious injury to a domestic industry of 
that Party and to facilitate adjustment if an originating good of the other Party, as a result of the 
liberalisation under the Agreement, is being imported into the territory of the first Party in such increased quantities, in absolute terms or rela tive to domestic production and under such 
conditions that the imports of the originating good constitute a substantial cause of serious injury 
or threat thereof to the domestic industry. Under Article 2.13.2, as a bilateral safeguard measure a 
Party may (a) suspend the further reduction of any rate of customs duty on the originating good or (b) increase the rate of customs duty on the orig inating good to a level not to exceed (i) the MFN 
applied duty in effect at the time of application of the bilateral safeguard measure and (ii) the MFN 
applied duty rate in effect on the day immediatel y preceding the date of entry into force of the 
Agreement.  
3.28.  Article 2.14 sets out procedural requirements for the conduct of bilateral safeguard 
investigations which shall be completed within one year of its initiation. Article 2.15 describes additional formalities for written notice of initiation of an investigation, determinations made during an investigation of or the imposition or modification of a bilateral safeguard measure. 
Safeguards may be taken for a maximum period of three years but may be extended in 
exceptional circumstances, provided that the tota l period, including extensions does not exceed 
four years. To facilitate adjustments, if a safeguard is expected to be maintained for more than 
one year, the Party maintaining the measure shall progressively liberalize the measure at regular 
intervals during the period of application. No bilateral safeguard shall be applied again to the 
import of a particular originating good which has been subject to bilateral safeguards for a period 
of time equal to the duration of the previous bilateral measure or one year, whichever is longer. 
Once the safeguard is terminated the rate of cu stoms duty for that good subject to the measure 
shall be the rate which would have been in effect but for the bilateral safeguard. Bilateral safeguards cannot be taken after the transition period has ended unless as agreed by the Parties. 
A review of these provisions is foreseen in the tenth year following the entry into force of the 
Agreement. Under Article 2.17 provisional safeguards  are permitted in critical circumstances where 
delay would cause damage which would be difficult to repair. Provisional safeguards may be taken 
following written notice to the other Party prior to  taking the safeguard, for a period not exceeding 
200 days which shall be counted as part of the over all period of the safeguard. Any duties charged 
as part of the provisional safeguard shall be refunded if the investigation does not reveal serious 
injury to domestic industry.  
                                               
6 These are the Department of Industry or its succe ssor for Australia and the Ministry of Foreign Affairs 
or its successor for Japan. 
7 Defined in Article 2.1(l) as "…in relation to a particular originating good, the period from the entry into 
force of the Agreement until eight years after the date of entry into force of this Agreement or five years after 
the date on which elimination or reduction of the customs duty on that good is completed in accordance with Annex 1 (Schedules in relation to Article 2.4 (Elimination or Reduction of Customs Duties)) whichever is longer.   WT/REG361/1/Rev.1 
 
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  3.29.  Article 2.16 concerns compensation in respect of the application of bilateral safeguard 
measures. If the Parties are unable to agree compensation within 30 days after the commencement of consultations, the Party against whose originating good the safeguard is applied shall be free to suspend the application of conc essions of customs duties only for the minimum 
period necessary to achieve the substantially equivalent effects and only while the safeguard is 
maintained. The Party suspending rights shall provide written notification to the other Party at least 30 days before the suspension.  
3.5.2.3  Special safeguards 
3.30.  Article 2.18 establishes a special safeguards measure for specific agricultural goods listed in 
the Parties goods schedule. Article 2.18.2 permits a Party to increase the rate of duty applied to such a product to a the lesser of (a) the MFN applied duty rate in effect at the time of the 
measure, (b) the MFN applied rate of duty in effe ct prior to the date of entry into force of the 
Agreement and (c) the base rate set out in the Party's goods schedule to the Agreement. According to the Parties the duty must not exceed the lowest rate in any of 12.8 (a), (b) or (c). 
The safeguard may be maintained until the end of the year in which it was imposed. Furthermore, 
neither Party shall apply or maintain a special safeguard and at the same time apply or maintain a bilateral safeguard measure, a provisional bilateral safeguard measure, or a measure applied 
pursuant to Article XIX of the GATT 1994 and the Agreement on Safeguards, on the same goods. 
3.31.  The provisions on special safeguards shall be subject to review in the tenth year following 
the entry into force of the Agreement or as otherwise agreed by the Parties. 
3.5.3  Anti-dumping and countervailing measures 
3.32.  Article 2.12 concerns anti-dumping and countervailing measures. In it the Parties reaffirm 
their commitment to the provisions of the WTO Ag reements on Application of Article VI of the 
GATT 1947 and the Agreement on Subsidies and Countervailing Measures.  
3.5.4  Subsidies and State-aid 
3.33.  Annex 11 of the Agreement provides a mechanism for a Party that considers that its 
interests have been adversely affected by a subsidy of the other Party to request consultations 
with a view to resolving the matter. The dispute settlement procedures in Chapter 19 do not apply 
to Annex 11. 
3.34.  Article 2.7 provides that neither Party shall introduce or maintain any export subsidy on any 
good destined for the other Party. 
3.5.5  Customs-related procedures 
3.35.  Chapter 4, Articles 4.1-4.9 of the Agreement concern customs procedures. Chapter 4 
applies to customs procedures applied to g oods traded between the Parties and shall be 
implemented by the Parties in accordance with the laws and regulations of each Party (Article 4.1). 
Definitions used in the Chapter are set out in Article 4.2. Article 4.3 sets out transparency requirements in relation to customs laws and pr ocedures. Article 4.3.1 requires each Party to 
ensure that all relevant information of general application pertaining to its customs laws is readily 
available to any interested person either in print or through the internet. Each Party shall designate one or more inquiry points to answer reasonable enquiries from any interested person of the Parties concerning customs matters (Article 4.3.4). Article 4.4 on Customs Clearance requires 
the Parties to apply their respective customs proced ures in a predictable, consistent, transparent, 
impartial and reasonable manner. The Parties shall permit the obtaining of advance rulings on tariff classification, customs valuation and origin of the good under Article 4.5 of the Agreement. 
3.6  Sector-specific provisions on trade in goods 
3.6.1  Food Security 3.36.   Chapter 7, Articles 7.1 to 7.5 concern food supply. Article 7.2 provides that for the 
purposes of the Chapter, "essential food" means any good listed in Annex 4 (List of Essential WT/REG361/1/Rev.1 
 
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  Food)8. Under Article 7.4 each Party shall designate a contact point to respond to all enquiries from 
interested parties in the other Party regarding investment in the food sector, and if appropriate, to provide the relevant information.
9 Article 7.5 sets out a process for conduct of consultations on 
essential foods, and creates an obligation to report if a significant decrease in the export volume of 
an essential food is foreseen.  
3.37.  Article 7.3 sets out requirements relating to the introduction of any export restrictions on 
essential foods, establishing (a) an obligation to limit any export prohibition or restriction on an 
essential food, giving due consideration to its possible negative effects on the other Party's food 
security, (b) notification requirements prior to introduction of any prohibition or export restriction and (c) to provide the other Party with a reasonable opportunity for consultation with respect to any matter related to the prohibition or restriction with a view to minimising the negative effects 
on the other Party's food security.  
3.6.2   Energy and Mineral Resources 3.38.  Chapter 8, Articles 8.1-8.8 concern Energy and Mineral Resources (as listed in Annex 5).
10 
In Article 8.1 the Parties recognise the importan ce of strengthening their stable and mutually 
beneficial relationship in the energy and mineral resource sector. Article 8.2 sets out definitions used in the Chapter. Article 8.3 recognises th e importance of a stable supply of energy and 
mineral resource goods and the role that trade investment and cooperation (including 
infrastructure development) play in achieving long term security – each Party shall take reasonable measures as may be available to it for that purpose. A mechanism for consultations in the event of a severe and sustained disruption to  supply of an energy good is established in 
Article 8.3.2.  
3.39.  Article 8.4 concerns export restrictions on energy and mineral resources. Article 8.4.1 
provides that the Parties shall endeavour not to introduce or maintain any prohibitions or 
restrictions on the exportation or sale for export of any energy and mineral resource goods as set 
out in paragraph 2(a) of Article XI or cons istently with Article XX(g) of the GATT 1994. 
Article 8.4.2 establishes additional obligations upon the Parties should they intend to take such an 
action. Provisions governing export licensing are set out in Article 8.5.  
3.40.  Article 8.6 on energy and mineral resource regulatory measures sets out additional 
obligations of the Parties in relation to the introd uction of any regulatory measure after entry into 
force of the Agreement, including an advance notification and consultation requirements. 
3.41.  Article 8.7 requires the Parties to promote cooperation for strengthening stable and 
mutually beneficial relationships in the energy and mineral resources sector. A Sub-Committee on Energy and Mineral Resources is established under Article 8.8.  
4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 
4.1  Scope and definitions 4.1.  Chapter 9 Articles 9.1-9.15 concern trade in  services. Article 9.1, entitled "Scope" provides 
that the Chapter applies to measures adopted or ma intained by a Party affecting trade in services.  
4.2.  Per Article 9.1.2, the Chapter does not apply to (a) air transport services, measures affecting 
air traffic rights or measures affecting services directly related to the exercise of traffic rights, other than (i) measures affecting aircraft repair and maintenance services, (ii) the selling and 
marketing of air transport services, and (iii) computer reservation services.
11 The Chapter also 
                                               
8 The list in Annex 4 comprises meat of bovine origin (including offal), dairy products and wheat and 
meslin.  
9 The Australian contact point is the Agriculture Office, Australian Embassy, Tokyo. The Japanese 
contact point is Invest Japan Suppo rt Division of Invest Japan Department of Japan External Trade 
Organization. 
10 Annex 5 includes ores, minerals, slag, ash and resi dues, coal and lignite, pe troleum products, oil and 
gases. aluminium and cobalt. 
11 Once the multilateral review of the Annex on Air Transport Services of the GATS is completed the 
Parties shall conduct a review for the purpose of discussing amendments to the Agreement (Article 9.1.2(a)).  WT/REG361/1/Rev.1 
 
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  does not apply to (b) government procurement, (c) subsidies provided by a Party or state 
enterprise, except as provided in Article 9.1112 (d) measures affecting natural persons of a Party 
seeking access to the employment market, nationality,  citizenship or residence. Definitions used in 
the Chapter are set out in Article 9.2. Article 9.2(n) describes the four modes of supply of a service 
used in the Agreement. 
4.3.  Chapter 14, Articles 14.1-19 and Annex 6 to the Agreement ((Non-Conforming Measures 
Relating to Paragraph 1 of Articles 9.7 and 14.10) concern investment. Definitions used in the 
Chapter are set out in Article 14.2.  
4.4.  Article 14.1.1 provides that the Chapter shall apply to measures adopted or maintained by a 
Party relating to (a) investors of the other Party, (b) covered investments, and (c) with respect to Article 14.9 (prohibition of performance requirements) all investments in the Area of the Party 
adopting or maintaining the measure. Article 14. 1.2 describes the hierarchy of provisions on 
investment – in the event of any inconsistency between Chapter 14 and another Chapter, the other Chapter shall prevail to the extent of the inconsistency. 
4.5.  Covered investments under the Chapter on investment, are investments in the Area of a 
Party in existence as of the date of entry into force of the Agreement, or established, acquired or expanded thereafter.  
4.6.  Article 14.9 on investment prohibits the application of any performance requirements that are 
inconsistent with the WTO TRIMs Agreement in connection with investment activities of an investor. A list of proscribed performance requirem ents are set out in Articles 14.9.2 and 14.9.3. 
Articles 14.10.1 and 14.10.2 provides that Articles 14.3, 14.4, 14.8 and 14.9 shall not apply to 
non-conforming measures set out in Schedules 6 and 7 to the Agreement. Article 14.7 provides 
that Articles 14.3, 14.4 and 14.8 do not apply to (a) government procurement and (b) subsidies or grants provided to a Party including government -supported loans, guarantees and insurance. 
4.7.  Article 9.15 establishes a Sub-Committee on Services. Its functions include reviewing the 
monitoring and implementation of the Chapter, an d reviewing the Chapter in light of developments 
elsewhere. A Sub Committee on Investment is created in Article 14.18, and its functions include 
exchanging information on exchanging information on matters related to the Chapter and 
reviewing and monitoring the implementati on and operation of the Chapter and the 
non-conforming measures set out in Annex 6 and 7 to the Agreement.  
4.8.  Article 14.19.1 provides for review of th e Chapter on Investment, including the possible 
improvement of the Chapter through creation of  an investor state dispute settlement system. 
Article 14.19.2 provides that following entry into fo rce of the Agreement, if Australia enters into a 
multilateral or bilateral investment agreement with an investor state dispute settlement provision, 
the Parties shall conduct a review with a view to establishing an equivalent mechanism under the 
Agreement. According to the Parties no review has so far taken place in view of subsequent 
agreements concluded by Australia containing such provisions.  
4.2  Denial of benefits 
4.9.  Article 9.14 provides that a Party may deny the benefits of the Chapter and of Chapter 10 
(Telecommunication Services) and Chapter 11 (Fin ancial Services) to a service supplier of the 
other Party where the denying Party establishes that the enterprise is owned or controlled by 
persons of a non-Party, and the denying Party does not maintain diplomatic relations with the 
non-Party or adopts or maintains measures with respect to the non-Party that prohibit transactions with the enterprise or that would be violated or  circumvented if the benefits of the Chapter and 
Chapters 10 and 11 were granted to the enterprise.  
4.10.  Article 9.14.2 permits the denial of benefi ts to a service supplier of the other Party where 
the denying Party establishes that the enterprise is owned or controlled by persons of a non-Party 
or of the denying Party and has no substantial business activities in the Area of the other Party. 
                                               
12 Article 9.11 on Subsidies (in services) requires the Parties to review the treatment of subsidies related 
to trade in services, enter into consultations on subsidies adversely affecting the interests of the other Party 
and provide information should consultations on a subsid y of the other Party affect the interests of the other 
Party.  WT/REG361/1/Rev.1 
 
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  4.11.  Denial of benefits of the Chapter on in vestment is permitted subject to the conditions 
described in Article 14.17. 
4.3  General provisions on trade in services and investment 4.3.1  Market access 
4.12.  Article 9.3.1 provides that with respect to market access through the modes of supply a 
Party shall not adopt or maintain numerical limits on service suppliers as set out in Article 9.3.1(a)-(f) (numerical limitations on  service operations or suppliers). 
4.3.2  National treatment and MFN 
4.13.  Article 9.4 on national treatment provides that each Party shall accord to services and 
service suppliers of the other Party treatment no less favourable than it accords to its own like services and service suppliers.  
4.14.  Article 9.5 on most favoured nation treatment provides that each Party shall accord to 
services and service suppliers of the other Party treatment no less favourable than that it accords to like services and service suppliers of any non-Party.  
4.15.  Article 14.3 provides that each Party shall accord to investors of the other Party and to 
covered investments, national treatment no less favo urable than it accords, in like circumstances, 
to its own investors and to their investments with respect to investment activities in its Area. 
Article 14.4 provides that each Party shall accord to investors of the other Party and to covered 
investments treatment no less favourable than that it accords to investors of a non-Party and to their investments with respect to investment activities in its Area. Article 14.5 sets out the minimum required standard of treatment, each Party shall accord to covered investments 
treatment in accordance with customary international law, including fair and equitable treatment 
and full protection and security. There are two Notes to the Article; the first concerning the customary international law minimum standard of treatment of aliens, the second providing that in 
the event of breach of another provision of the Agreement or of a separate international 
Agreement such breach does not establish that there has been a breach of Article 14.5. 
4.16.  Article 14.6 of the Agreement concerns acce ss to the courts of justice and provides in 
Article 14.6.1 that each Party shall accord to investors of the other Party (with respect to 
investment activities) treatment no less favourable than that it accords in like circumstances to its own investors or investors of a non-Party, with respect to access to its courts of justice and administrative tribunals and agencies. Article 14.6.2 provides that Article 14.6.1 does not apply to 
treatment provided to investors of a non-Party pursuant to an international agreement concerning 
access to courts of justice or administrative tribunals or judicial cooperation agreements.  
4.3.3  Local presence 
4.17.  Article 9.6 provides that neither Party shall require a service supplier of the other Party to 
maintain a physical presence in its Area as a condition for supply of a service – with the exception of mode 3 service suppliers.  
4.18.  Article 14.7.1 of the Agreement provides th at Article 14.3 shall not be construed to prevent 
a Party from maintaining measures that prescribe special formalities in connection with investment activities of investors of the other Party and covered investments such as compliance with registration or residency requirements, or that covered investments be legally constituted under 
the laws and regulations of the Party, provided th at those requirements do not materially impair 
the protections afforded to investors of the other Party and covered investments.  
4.4  Performance requirements 
4.19.  Article 14.9 on prohibition of performance requirements provides that neither Party shall 
impose or enforce any of the requirements set out in Article 14.9.2 (a)-(g). Article 14.9.3 provides that neither Party shall condition the receipt or continued receipt of a benefit on compliance with 
the kinds of performance requirements  set out in Article 14.9.3(a)-(d).  WT/REG361/1/Rev.1 
 
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  4.4.1  Senior management and board of directors 
4.20.  Article 14.8.1 provides that the Parties may not require that an enterprise that is a covered 
investment appoint to senior management positions nationals of any particular nationality. Article 14.8.2 provides that a Party may require that a majority or less of the board of directors or any 
committee of an enterprise that is a covered investment be of a particular nationality or resident in 
the Area of a Party, provided that the requirement does not materially impair the ability of the investor to materially control the investment. 
4.4.2  Movement of natural persons 
4.21.  Chapter 12, Articles 12.1-12.6 concern the movement of natural persons under the 
Agreement. The scope of the chapter is set out in Article 12.1.1 – it applies to measures affecting the movement of natural persons of a Party into the other Party who fall under one of the 
categories referred to in Annex 10 (Specific comm itments on the Movement of Natural Persons).  
4.22.  Article 12.3.1 provides that each Party shall grant entry and temporary stay to natural 
persons of the other Party in accordance with the Chapter and relevant laws and regulations of the 
former Party and subject to the specific commitments in Annex 10 to the Agreement.  
4.23.  Article 12.6 provides that the dispute settlement procedures in Chapter 19 will not apply to 
this Chapter unless (a) the matter involves a pattern of practice and (b) the natural persons of a 
Party concerned have exhausted the domestic remedies, where available, regarding the particular 
matter. 
4.24.  Annex 10 Part 1 contains the specific commitments of Australia. Part 1, paragraph 1 
provides that a natural person of Japan seeking entry and temporary stay in Australia under 
Chapter 12 must obtain prior to entry an appropriate visa or permit or other document or 
electronic authority. No numerical limitations on the total number of visas to be granted shall be imposed or maintained (paragraph 2).  
4.4.2.1  Australia 
4.25.  Section 1 of Part 1 of Annex 10 contains Australia's commitments on business visitors from 
Japan. Entry and temporary stay shall be granted to a natural person of Japan who is a seeking to 
travel to Australia for business purposes including for investment purposes, whose remuneration 
and financial support for the duration of the visit must be derived from sources outside Australia, 
and who must not engage in making direct sales to the general public or in supplying goods or services themselves for a period of up to 90 days (Section 1, sub-paragraph 3(a)). A service seller 
of Japan who is a natural person not based in Australia whose remuneration and financial support 
for the duration of the visit is derived from sources outside Australia and who is a sales representative of a service supplying enterprise, seeking entry and temporary stay for the purpose 
of negotiating for the sale of services or entering into agreements to sell services for that service 
supplying enterprise shall be granted entry and temporary stay for a period of up to six months with the possibility of a further stay. 
4.26.  Intra corporate transferees of Japan who ar e natural persons, working as an executive or 
senior manager responsible for at least a substantial part of the operations of the enterprise in Australia, as defined in section 2 of Part 1 sub-paragraph 3(a) shall be granted entry and temporary stay for a period of up to 4 years. Intra corporate transferees per section 2 of Part 1 
sub-paragraph 3(b) are entitled to entry and tempor ary stay for up to 2 years (with the possibility 
of extension). Entry and temporary stay of a natural person is subject to employer sponsorship.  
4.27.  Investors of Japan are covered by section 3 of part 1 of Annex 10. Entry and temporary stay 
will be granted to such an investor for up to two years. Investor of Japan is defined in paragraph 2 
of section 3 of Part 1 of Annex 10. Australia's commitments in relation to contractual service suppliers of Japan are set out in section 4 of Part 1 of Annex 10.  WT/REG361/1/Rev.1 
 
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  Table 4.1 Australia 
Category Migratory Condition Length of Stay 
Business Visitor (i) service sellers Initial stay of 6 months, renewable 
 (ii) business visitors (no direct sales) Maximum 90 day stay 
Intra Corporate 
Transferee* (i) Executives, senior managers,  
(ii) Specialists  (i) 4 years with the possibility of 
extensions (ii) 2 year periods with the possibility of extension. (i) and (ii) subject to sponsorship arrangements 
Investor Investor, natural person Up to two years 
Contractual Service Suppliers* Contractual Service suppliers (trade 
technical professional skills) Employer sponsorship required and – 
(subject to various additional conditions that may change) up to 12 months with possibility of extension 
Source: Australia's Annex 10 Schedule of Movement of natural persons commitments.   
4.28.  Spouses of these categories are accorded fu ll working rights when the partner is permitted a 
s t a y  o f  m o r e  t h a n  1 2  m o n t h s .  S p o u s e  l e n g t h  o f  s t a y  i s  f o r  t h e  s a m e  p e r i o d  a s  t h e  t e m p o r a r y  entrant (section 5 of part 1 of Annex 10).  
4.4.2.2  Japan 
4.29.  Part 2 of Annex 10 contains the specific commitments of Japan in relation to the movement 
of natural persons. Section 1 concern short term business visitors of Australia, section 2 intra 
corporate transferees of Australia, section 3 investors of Australia, section 4 natural persons who 
engage in professional services (legal, accounting or taxation service supplier), section 5 natural persons who engage in business activities (technical knowledge). Section 6 concerns accompanying spouses and children. 
4.30.  Section 1 of part 2 of Annex 10 provides that short term business visitors of Australia may 
be granted entry and temporary stay for a period  not exceeding 90 days (extendable) provided 
that the person does not acquire remuneration fr om inside Japan nor engage in direct sales in 
Japan. Section 2 concerns intra corporate transferees who may be granted entry and temporary 
stay for a period of one or three years (extendable) to a natural person of Australia who has been employed by an enterprise that invests in Ja pan at least 12 months previously, who has been 
transferred to Japan and who will engage in one of the activities listed in sub-paragraphs (a)-(e). 
Section 3, on investors from Australia provides that natural persons may be granted entry and temporary stay for a period of between one an d three years (extendable) to engage in the 
activities set out in sub-paragraphs (a)-(c). 
4.31.  Section 4 of Part 2 of Annex 10 provides that natural person who engage in professional 
services (in one of the activities described in sub-paragraphs (a)-(j) shall be granted entry and 
temporary stay for a period of one or three year s (extendable). Section 5 of Part 2 of Annex 10 
concerns natural persons who are independent contractors with specialised knowledge and 
provides that they shall be granted entry and temp orary stay for a period of one or three years. 
Section 6 of Party 2 of Annex 10 concerns accompanying spouses and children.  
Table 4.2 Japan 
Category Migratory Condition Length of Stay 
Business Visitor (i) goods or service sellers Maximum 90 day stay  
Intra Corporate 
Transferee (i) business visitors (no direct sales) One or three years, renewable 
* (ii) Executives, senior managers,  
(ii) Specialists   
  
Investor Investor, natural person One to three years, renewable 
Professional Service Suppliers* (i) Contractual Service suppliers 
(trade technical professional skills) Employer sponsorship required and – 
(subject to various additional conditions that may change) up to 12 months with possibility of extension 
Source: Japan's Annex 10 Schedule of Movement of natural persons commitments.   WT/REG361/1/Rev.1 
 
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  4.5  Liberalization commitments 
4.32.  The services commitments of the Parties under the Agreement are a "negative list" –all 
sectors are opened, except as specifically reserved and inscribed in Annexes 6 (current measures) and 7 (future measures) of the Agreement. This section of the Factual Presentation on the 
Agreement has been prepared using the GATS Schedu les of the Parties ("positive list") as a base 
for comparison with the ("negative list") reservat ions listed in Annex 6 and 7 of the Agreement. 
4.33.  Article 9.7 concerns non-conforming measures. Article 9.7.1 provides that non-conforming 
restrictions inconsistent with Articles 9.3, 9.4.1, 9.5 and 9.6 are only permitted if (a) inscribed in 
its Schedule to Annex 6 ("Non-Conforming Measures Relating to Paragraph 1 of Articles 9.7 and 14.10") or (b) if taken by a local government other than a prefecture or a state or territory on the 
date of entry into force of the Agreement.  
4.34.  Article 9.7.2 provides that non-conforming measures inconsistent with Articles 9.3, 9.4.1, 
9.5 and 9.6 with respect to sectors, sub-sectors or  activities set out in its Schedule to Annex 7 
("Non-Conforming Measures Relating to Paragraph 2 of Articles 9.7 and 14.10"). If a Party makes 
an amendment or modification to any non-conforming measure set out Annex 6 or adopts any new 
or more restrictive measure with respect to its Schedule in Annex 7, the Party shall provide advance notification or as soon as possible thereafter notify the other Party per Article 9.7.3(a)-
(c). The Parties shall endeavour, where appropriate, to reduce or eliminate the non-conforming 
measures set out in Annexes 6 and 7 to the Agreement.  
4.5.1  Australia 4.5.1.1  MFN and horizontal commitments 
4.35.  Under the GATS, Australia took commitments  in 103 out of 155 services sectors. It did not 
make commitments, inter alia , on certain specific business services; postal and courier services, as 
well as audio-visual services; some education services (primary and adult education services); 
sanitation and similar services; hospital and social services; entertainment services and libraries, 
archives, museums and other cultural services; and internal waterways, space and rail transport services.  
4.36.  Under the GATS, Australia only scheduled MFN exemptions for audio-visual services. The 
reserved areas cover co-production and/or actions taken to respond to any unreasonable measures imposed on Australian services or serv ice suppliers by another WTO Member. Under the 
GATS, Australia made horizontal reservations for establishment (mode 3) and in connection with 
the Foreign Acquisitions and Takeovers Act of 1975. Some residency requirements are also listed 
and preferential measures in favour of indigenous persons or organisations are unbound.  
4.5.1.2  Sector Specific commitments 
4.37.  Under the Agreement, as a negative list approach is chosen, in principle, all services sectors 
are covered, though a number of non-conforming measures are listed in Annexes 6 (current measures) and 7 (future measures) of the Agreement (see above). Table 4.3 (below) also includes 
Australia's registered non-conforming measures th at are or may be taken at sub-Federal level. 
L i m i t a t i o n s  i n  t h a t  r e g a r d  h a v e  b e e n  r e g i s t e r e d  i n  A u s t r a l i a ' s  G A T S  S c h e d u l e  a s  w e l l .  A s  a  consequence of the approach chosen (negative li st), the coverage of Australia's commitments 
under the Agreement is expanded for most sectors, as compared to its commitments under GATS, 
while some limitations (both horizontal and sector-specific) are introduced in its list of 
non-conforming measures, as compared to the limitations under the GATS. Australia indicates that a number of restrictions and limitations listed in relation to non-conforming measures are related 
to sub-sectors or activities that were not fully committed under GATS and/or related to matters for 
which GATS does not include an express obligation (in particular in relation to senior management and boards of directors, and local presence). It  therefore considers that the Agreement does not 
include additional limitations, as compared to its commitments under GATS, and that the 
treatment under the Agreement is similar as under GATS while additional transparency is provided 
through the use of the negative list approach.  WT/REG361/1/Rev.1 
 
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  4.38.  In section 1 of Annex 6 to the Agreement, Australia specifies a number of existing horizontal 
reservations. These reservations are in many cases more precise than the few set out in Australia's GATS Schedule, and could thus be viewed as more li beral, not least as the reservations are fewer.  
4.39.  In relation to reservation 4 in Annex 6 of the Agreement, covering local presence and senior 
management and Boards of Directors (all sectors) the Parties indicate that Australia's 
commitments under the GATS do not include a discrete local presence obligation similar to the reservation taken in respect of Articles 9.6 on senior management and Boards of Directors or in 
respect of Article 14.8. 
4.40.  In relation to reservation 5 (local presence, all sectors), the Parties indicate that Australia's 
GATS commitments do not include a discrete local presence obligation similar to the reservation 
taken in respect of Article 9.6 of the Agreement. 
4.41.  In relation to reservation 6, on Security Services, which appears to be less liberal than the 
corresponding GATS commitment, according to the Parties, the legislation mentioned therein has been amended so that the reservation has no effect. 
4.42.  According to the Parties reservation 7, co vering all services sectors, introduces a local 
presence requirement not found in Australia's GATS commitments.  
4.43.  According to the Parties, Reservation 8 on legal services corresponds to a GATS 
commitment on legal services on home country law, not host country law and the commitments 
under the GATS permit restriction of the right to provide legal services in South Australia.  
4.44.  In relation to reservation 9 on patents (legal services) the Parties consider that Australia's 
commitments under the GATS do not include a discrete local presence obligation similar to 
Article 9.6 of the Agreement.  
4.45.  For reservation 10 on professional services, the Parties indicate that Australia's GATS 
commitments do not include a discrete local presence obligation similar to Article 9.6 or 
Article 14.8. 
4.46.  In respect of reservation 11 which establishes a New South Wales restriction in relation to 
mode 3, according the Parties, Australia's GA TS commitments do not contain a discrete local 
presence obligation similar to Article 9.6. . Similarly, according to the Parties, Australia's GATS 
commitments do not include a discrete local presence obligation similar to reservation 12. 
4.47.  Reservation 13 on migratory agents contains an exemption on national treatment and most 
favoured nation treatment, in favour of New Zealand. According to the Parties migration agency 
services were not scheduled by Australia under th e GATS and the legal basis for the provision in 
favour of New Zealand is related to Trans-Tasman Travel Arrangement. 
4.48.  In relation to reservation 14 on customs brok ers, this sector is not contained in Australia's 
GATS commitments and is thus more liberal.  Reservation 15 on research and development 
appears to be more liberal as Australia did not undertake a commitment in respect of general scientific research.  
4.49.  In relation to reservation 16 (real estate and distribution services) the GATS schedule of 
Australia has no limitation expressed in the National Treatment column that corresponds to the reservation found in Annex 6 in respect of New South Wales. According to the Parties Australia's GATS commitments do not contain a discrete local presence obligation similar to Article 9.6 and 
the reservation in respect of New South Wales is not listed in Australia's GATS commitments. 
Accordingly the commitment appears less liberal than the corresponding GATS commitments. 
4.50.  According to the Parties, Annex 6 reservation 17 corresponds to Part II, 11(A)(3)(a) on 
Maritime Transport. Reservation 19 on distribution  (Rice and potato marketing boards) appears to 
be GATS plus and more liberal than Australia's GATS schedule. According to the Parties Australia's GATS commitments do not bind for commission agents or wholesale trade services with respect to 
agricultural raw materials.  WT/REG361/1/Rev.1 
 
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  4.51.  Reservation 20 concerns "Escort Services" (under other business services) and introduces a 
reservation in respect of Northern Territory Prostitution Regulation Act). According to the Parties Australia's GATS commitments on other business services do not include escort services.  
4.52.  Reservation 21 of Annex 6 (on communication services) does not include the corresponding 
GATS scheduled reservation in favour of "Optus" inscribed in Australia's GATS schedule. According 
to the Parties foreign ownership rules for Optus ha ve been relaxed such that the GATS reservation 
in respect of Optus is no longer necessary.  
4.53.  In respect of Reservation 22 of Annex 6 on distribution services, according to the Parties 
Australia's GATS commitments do not include a similar local content presence obligation.  
4.54.  According to the Parties, Australia's GA TS commitments do not include a discrete local 
presence obligation such as that contained in reservation 23 on distribution services (tobacco and 
alcohol).  
4.55.  In respect of reservation 24 (distribution services, performance requirements, regional, 
cannot obtain a licence to sell wine unless the wine was made from fruit grown by the person to 
which the licence relates) on sale of wine, according to the Parties, the reservation does not 
intersect with Australia's GATS commitments as the restriction does not restrict a foreign person from establishing a commercial presence to sell wine nor is it discriminatory. 
4.56.  In respect of reservation 25, the Parties conf irmed that the effect of this reservation (health 
services) is more liberal than Australia's GATS commitments. However in respect of reservations 26 and 27 according to the Parties Australia's GATS commitments do not include a discrete local presence obligation similar to Article 9.6 of the Agreement. 
4.57.  Reservations 31, 32 and 33 are GATS plus in effect and thus more liberal than Australia's 
GATS schedule.  
4.58.  According to the Parties, reservations 34 (Financial services, reservation in respect of 
Western Australia) and 35 (financial services, reservation in favour of Queensland) do not have 
discrete local presence obligation equivalents in comparison to Australia's GATS commitments.  
4.59.  Annex 7 describes non-conforming measures which may be created in the future relating to 
Articles 9.7.2 and 14.10.2. Part 1 sets out Australia's reservations. 
4.60.  According to the Parties, reservation 1 of  Annex 7 (Specific Commitments on movement of 
natural persons) is subject to Annex 10 and Chapter 12 and is GATS plus, with all of Australia's GATS horizontal commitments being contained in Annex 10. Reservation 2 is a horizontal limitation 
in relation to indigenous persons and corresponds to Australia's horizontal GATS limitations.  
4.61.  Australia's reservation 3 (all sectors) in  Annex 7 is defined in scope by reference to 
Australia's Revised Services Offer of 31 May 2005. According to the Parties, that Revised Services 
Offer (which is GATS plus) has no legal effect of itself, but is a defined reference point for the 
Agreement and is given legal effect through the Agreement.  
4.62.  According to the Parties, Reservation 4 (all  sectors) corresponds to Australia's horizontal 
commitment in its GATS schedule on foreign investment policy guidelines (Foreign Acquisitions and 
Takeovers Act 1975) concerning holdings of Australian urban land. Also according to the Parties, Australia's GATS commitments do not include a prohibition of performance requirements similar to Article 14.9 of the Agreement. 
4.63.  In relation to reservation 6 of Annex 7 (all sectors) according to the Parties the 
corresponding provision is found in Australia's horizontal commitments relating to Australia's foreign investment policy guidelines in Australia's GATS schedule. 
4.64.  Reservations 7, 8 (all sectors), 9, 10 (broadcasting) and 11 (recreation) are more liberal 
than the committed sectors set out in Australia's GATS Schedule.  WT/REG361/1/Rev.1 
 
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  4.65.  In relation to Australia's reservation 12 (distribution), which appears to be GATS minus in 
comparison to Australia's GATS commitments, accord ing to the Parties, Australia relies on GATS 
General Exceptions Article XIV (1)(a) and (b).  
4.66.  Reservation 13 (on primary education) is consistent with Australia's GATS commitments on 
Education services, where primary education is not scheduled. 
4.67.  In relation to reservation 14 (education services, national treatment, performance 
requirements) the Parties advise that Australia's GATS commitments do not include a discrete local 
presence obligation similar to Article 9.6, nor obligations in relation to senior management and 
boards of directors, or prohibition of perfor mance requirements. The Parties noted that the 
reservation is non-discriminatory in application. Australia's GATS commitments in Educational services are found in Part II(5) of its Schedule  and the horizontal commitments on mode 4.  
4.68.  For reservation 15 (gambling and betting) the Parties note that Australia's GATS 
commitments do not include a discrete local presence obligation similar to Article 9.6, nor obligations in relation to senior management and boards of directors, or prohibition of performance 
requirements. The Parties noted that the reservation is non-discriminatory in application. 
According to the Parties, Australia also has no binding in its GATS schedule in relation to gambling and betting services, (CPC 96492, see Part II, 10(D) Other Recreational Services, Australia's 
commitments only cover Recreation Park and Be ach Services (CPC 96491). In relation to 
reservation 20 (financial services sector, national treatment), according to the Parties Australia's GATS scheduled commitments on Banking and Othe r financial services (excluding insurance) 
provides under limits on national treatment that Commonwealth owned entities which may conduct 
financial operations are guaranteed by the Commonwealth Government. 
4.69.  According to the Parties, reservation 21 (financial services, market access, national 
treatment, MFN) is intended to establish new obligations with respect to Japanese service 
suppliers, and should be read in conjunction with, not instead of, Australia's GATS commitments.  
4.70.  The Parties consider that reservation 22 (financial services, market access, national 
treatment, MFN, local presence, senior management and board of directors) is intended to 
establish new obligations with regard to Japanese service suppliers and should be read in 
conjunction with, not instead of, Australia's GATS commitments. According to the Parties, in comparison to reservation 23 (financial services sector, prohibition of performance requirements) Australia's GATS commitments do not include a prohibition of performance requirements similar to 
Article 14.9. In relation to reservation 24 (financi al services, market access, MFN, local presence) 
the Parties consider that this provision reserves Australia's ability to protect consumers consistent with, inter alia , GATS Article XIV(1)(c)(i). 
Table 4.3 Australia: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)  
Sectors (CPC Classification) GATS FTA  
Sectoral 
Commitments 
(except as 
indicated in 
the GATS 
horizontal 
commitments 
("positive 
list") Compared to 
the GATS, 
sectoral 
commitments 
("negative 
list" except as 
indicated in 
the FTA 
horizontal 
reservations) 
are: Commitments 
on existing 
measures Commitments 
on future 
measures 
1. BUSINESS SERVICES     
A. Professional services Partial Similar* Partial Partial 
B. Computer and related services  Partial  Improved Partial Partial 
C. Research and development Partial Similar Partial Full 
D. Real estate Partial Similar* Partial Full 
E. Rental/Leasing services without 
operators Partial Improved Full Full 
F. Other business services Partial Improved* Partial Partial  WT/REG361/1/Rev.1 
 
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  Sectors (CPC Classification) GATS FTA  
Sectoral 
Commitments 
(except as 
indicated in 
the GATS 
horizontal 
commitments 
("positive 
list") Compared to 
the GATS, 
sectoral 
commitments 
("negative 
list" except as 
indicated in 
the FTA 
horizontal 
reservations) 
are: Commitments 
on existing 
measures Commitments 
on future 
measures 
2. COMMUNICATION SERVICES     
A. Postal - Impr oved Full Full 
B. Courier - Improved Full Full 
C. Telecommunication  Partial Improved Partial Full 
D. Audio-visual - Improved Full Partial 
E. Other - Improved Full Full 
3. CONSTRUCTION AND 
RELATED ENGINEERING 
SERVICES     
A. General construction work for 
buildings Full Similar Full Full 
B. General construction work for 
civil engineering Full Similar Full Full 
C. Installation and assembly work Full Similar Full Full 
D. Building completion and finishing 
work Full Similar Full Full 
E. Other - Improved Full Full 
4. DISTRIBUTION SERVICES     
A. Commission agents' services Partial Similar Partial Full 
B. Wholesale trade services Partial Similar* Partial  Partial 
C. Retailing services Partial Similar* Partial Partial 
D. Franchising Full Similar Full  Full 
E. Other - Improved Full Full 
5. EDUCATION SERVICES     
A. Primary education services - Improved Full Partial 
B. Secondary education services Partial Similar Full Partial 
C. Higher education services Partial Similar Full  Partial 
D. Adult education services - Improved Full Partial 
E Other education services Partial Similar Full  Partial 
6. ENVIRONMENTAL SERVICES     
A. Sewage services Full Similar Full Full 
B. Refuse disposal services Full Similar Full  Full 
C. Sanitation and similar services Full Similar Partial Full 
D. Other - Improved Partial Full 
7. FINANCIAL SERVICES     
A. All insurance and insurance-
related services Partial Similar Partial Partial 
B. Banking and other financial 
services Partial Similar Partial Partial 
8. HEALTH RELATED AND 
SOCIAL SERVICES     
A. Hospital services - Improved Partial Full 
B. Other human health services Partial Similar* Partial Full 
C. Social services - Improved Full Full 
D. Other - Improved Full Full 
9. TOURISM AND TRAVEL 
RELATED SERVICES     
A. Hotels and restaurants Full Similar Full Full 
B. Travel agencies and tour 
operators Partial Similar Partial Full 
C. Tourist guides Full Similar Full Full 
D. Other - Improved Full Full 
10. RECREATIONAL, CULTURAL 
AND SPORTING SERVICES     
A. Entertainment services - Improved Full Partial 
B. News agency services Full Similar Full Full 
C. Libraries, archives, museums 
and other cultural services - Improved Full Partial 
D. Sporting and other recreational 
services Partial  Improved Full Partial 
E. Other - Improved Partial Full WT/REG361/1/Rev.1 
 
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  Sectors (CPC Classification) GATS FTA  
Sectoral 
Commitments 
(except as 
indicated in 
the GATS 
horizontal 
commitments 
("positive 
list") Compared to 
the GATS, 
sectoral 
commitments 
("negative 
list" except as 
indicated in 
the FTA 
horizontal 
reservations) 
are: Commitments 
on existing 
measures Commitments 
on future 
measures 
11. TRANSPORT SERVICES     
A. Maritime Transport services Partial  Improved Partial Partial 
B. Internal waterways transport - Improved Full Full 
C. Air transport services Partial Improved Partial Partial 
D. Space transport services - Improved Full Full 
E. Rail transport services  - Improved Full Full 
F. Road transport services  Partial  Improved Partial Full 
G. Pipeline transport Full Similar Full Full 
H. Services auxiliary to all modes of 
transport Partial Improved Full Full  
I. Other - Improved Full Full 
12. OTHER SERVICES NOT 
INCLUDED ELSEWHERE - Improved Full Full 
Note:  
-: No commitments either under the GATS or the Agreement. 
Improved: Improved commitments made under the Agreement compared to those under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly, in individual cases, with limited 
improvements and/or limited  additional reservations. 
*: Subject to the interpretation of Article XVII of the GATS. Source: S/DCS/W/AUS, prepared by the Secretariat (in 2003), and relevant section of Annexes 6 and 7 to 
the Agreement. The comparison only concerns mode s 1-3, market access, national treatment, and 
additional commitments; it does not concern commitments under mode 4. 
4.5.2  Japan 
4.5.2.1  MFN and horizontal commitments 
4.71.  Under the GATS, Japan took commitments in  112 out of 155 services sectors. It did not 
make commitments, inter alia , on certain specific sectors; integrated engineering, postal and 
courier services; some audio-visual and telecommunication services; some health and social 
services; space and some rail transport services . Japan's scheduled GATS horizontal exemptions 
(market access and national treatment) concern mode 4 generally, and legal and certain other categories of professional service suppliers under mode 4. 
4.72.   Under the Agreement, as a negative list approach is chosen, as a principle, all services 
sectors are covered, though a number of non-conf orming measures are listed in Annexes 6 and 7 
of the Agreement.  
4.5.2.2  Sector specific commitments 
4.73.  Under the GATS, Japan's committed sectors ar e defined by reference to CPC codes. Japan's 
reservations under the Agreement are defined by reference to Japan's "JSIC" standards. 
4.74.  Annex 6 Part 2 contains the reservations of Japan in relation to existing measures. Annex 6, 
Part 2, Reservation 1 is a horizontal limitation on Agricultural, forestry and fisheries that has no corresponding GATS commitment and is therefore an improvement in comparison to the GATS.  
4.75.  According to the Parties, in relation to Reservation 2 (automobile repair, market access, 
local presence) the interpretation of obligations under the GATS and the Agreement are different, 
hence some commitments seem different.  WT/REG361/1/Rev.1 
 
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  4.76.  In relation to reservation 3 (business serv ices, market access, local presence)  according to 
the Parties, Japan has made commitments on 29 business sectors for job placement services and on 16 business sectors for worker dispatching se rvices under the GATS, which sectors are not 
restricted under the Agreement. As a result, according to the Parties, the commitments are thus 
GATS plus. 
4.77.  Reservation 4 (collection agency servic es, market access, local presence) the Parties 
appears to be more liberal in effect owing to th e absence of a GATS commitment in the sector by 
Japan.  
4.78.  According to the Parties, reservation 5 (construction services, market access, local 
presence) which appears to introduce a new restriction in comparison to the GATS Schedule which contains "none", the interpretation of obligations  under the GATS and the Agreement are different, 
and hence some commitments seem different. 
4.79.  Reservation 6 (distribution services) is a marginal improvement in comparison with Japan's 
commitments under the GATS as beverages were not included in Japan's commitment on 
franchising. Reservation 7 appears to be smaller in scope and thus more liberal than Japan's 
corresponding GATS commitments. 
4.80.  According to the Parties reservations 9 (financial services) and 10 (financial services, 
insurance) correspond to Japan's GATS commitments under national treatment mode 3, section 
7(B).and market access, modes 1 and 2 of sectio n 7(A) respectively which are therefore of the 
same scope as commitments under the GATS.  
4.81.  Reservations 11, 13, 15, 16 and 46 create a prior notification requirement. According to the 
Parties, the sectors are not covered by Japa n's GATS commitments. A prior notification 
requirement under the Foreign Exchange and Foreig n Trade Law was established prior to the entry 
into force of the GATS and the law has not change d since then. The Parties note that the scope of 
exceptions of the GATS such as General Exceptions  and Security Exceptions are different from the 
Agreement. Japan understands prior notification requirements are consistent with the GATS and 
the Agreement. 
4.82.  Reservation 12 on Telecoms provides a di fferent voting threshold and a restriction on 
Directors in comparison to Japan's GATS commitments. According to the Parties, as for foreign capital participation, Japan has committed a more liberal restriction than under the GATS, on the other hand, as for the nationality requirement on directors, Japan's restriction is the same as 
under the GATS. 
4.83.  Reservation 14 on ship repair is a new commitment and an improvement in comparison to 
Japan's GATS commitments. In respect of rese rvations 15 and 16 (manufacturing, drugs and 
leather, national treatment) according to the Parties, Japan had not made commitments under the 
GATS, and accordingly Japan's commitments are more liberal in comparison. 
4.84.  Reservation 17 in relation to nationality of a ship and reservation 18 on measuring and 
inspection services are newly committed subsecto rs and therefore an improvement in comparison 
to the GATS.  
4.85.  In relation to reservation 19 (medical, heal th care and welfare (insurance), market access, 
local presence) according to the Parties Japan has not committed this sector under the GATS.  
4.86.  Reservations 20 (Mining), 21 (Oil), 22 (professional services, lawyers offices) appear to be 
improvements in comparison to Japan's GATS commitments. Reservation 23 (professional services, lawyers offices) appears to be the same in scope as Japan's GATS commitments. 
4.87.  According to the Parties, Reservations 24 (patent attorneys) is of the same scope as Japan's 
GATS commitments. In respect of reservations 25 an d 26, (notaries public and judicial scriveners), 
according to the Parties Japan has not made commitments under the GATS and accordingly the 
Agreement represent improvements compared  to Japan's commitments under the GATS. WT/REG361/1/Rev.1 
 
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  4.88.  Reservations 27, 28, 29 (professional services) are consistent with Japan's GATS 
commitments. According to the Parties reservations 30 and 31 (professional services, social insurance and labour consultants, administrative scriveners (market access, local presence), Japan 
has not made commitments in respect of these sectors under the GATS and therefore these 
represent an improvement in comparison. Reservat ion 32 and 33 (professional services) appear to 
be an improvement, in setting a condition to supply services as a maritime procedure agent ("Kaijidairishi") and land and house surveyors for services not committed by Japan under the 
GATS. Reservations 34, 35, 36, 37 and 38 appear consistent with and not to expand Japan's GATS 
commitments. 
4.89.  In respect of reservation 39 (surveying services) according to the Parties Japan's 
commitments are of the same scope as under the GATS, and note that such reservations are not 
applied for service suppliers who survey land outside Japan.  
4.90.  Reservations 40, 41 and 42 (air transport)  are outside the coverage of the GATS and by 
virtue of Article 9.1.2 of the Agreement. According to the parties reservation 43 (transport, 
customs brokerage, market access, local presence) the interpretation of obligations under the 
GATS and the Agreement are different, and hence some commitments seem different. 
4.91.  Reservations 44 and 45 (transport) appear to be more liberal as they are effectively newly 
committed sub sectors in comparison to Japan's commitments under the GATS. Reservations 47 
and 48 (road transport) appear consistent with Japan's existing GATS commitments.  
4.92.  Reservation 49 (transport, services incident al to) is GATS plus as Japan has not undertaken 
commitments in the sector. Reservation 50 (transport, services incidental to, maritime pilots) 
appears to cover a new sector and is thus more liberal than Japan's GATS commitments. 
Reservations 51 and 52 (water transport) concern a non-committed sector under the GATS and are thus more liberal. Reservation 56 (wholesale and retail trade) was also not committed under 
Japan's GATS Schedule and therefore is a GATS plus commitment. 
4.93.  Part 2 of Annex 7 contains 15 Japan's reservations in respect of future measures. According 
to the Parties, horizontal reservations 1 and 2 (a ll sectors, market access and national treatment) 
Japan did not enter make commitments in the GATS in relation to these sectors.  
4.94.  In relation to reservation 3 (all sectors,  MFN), according to the Parties, under the GATS, 
EPA/FTAs qualifying under Article V are treated as an MFN exception. The Parties also consider that in the Agreement, EPA/FTAs entered into force prior to the entry of the Agreement are 
reserved but not future EPA/FTAs.  
4.95.  Reservation 4 (unrecognised or technically unfeasible services) concerns service sectors not 
recognised under the GATS at the time of its en try into force (except new financial services).  
4.96.  In relation to reservation 5 (aircraft and space, aircraft industry, market access, national 
treatment) according to the Parties each sector wi thin the schedule of the GATS is identified by 
CPC, while the schedule of Japan under the Agreement do not refer to CPC. 
4.97.  Reservation 6 (arms and explosives) and 7 concern sectors not committed by Japan under 
the GATS and is thus more liberal in comparison. Concerning reservation 7 (information and communication services, market access, national treatment, local presence) appears to create a newly committed subsector. Reservation 8 (education, primary and secondary educational 
services, market access, national treatment) appears to be a new restriction in comparison to the 
GATS. According to the Parties (both reservation 7 and 8) each sector within the schedule of the 
GATS is identified by CPC, while the schedule of  Japan under the Agreement do not refer to CPC. 
4.98.  Reservation 9 creates a new commitment in energy industry services (in comparison to the 
GATS). According to the Parties each sector within  the schedule of the GATS is identified by CPC, 
while the schedule of Japan under the Agreement does not refer to CPC. 
4.99.  According to the Parties, reservations 10 and 11 correspond to 7 (Financial Services) B and 
A of II (sector specific commitments) under the GATS respectively. The Parties consider reservation 10 to be more open than Japan's GATS commitments and reservation 11 is on the  WT/REG361/1/Rev.1 
 
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  same level as those. Reservation 12 creates a ne w commitment in fisheries services. Concerning 
reservations 13 and 15, the Parties consider that Japan had not made commitments under the GATS. Reservation 14 concerns the provision of public services.  
Table 4.4 Japan: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4) 
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
("positive 
list" except as 
indicated in 
the GATS 
horizontal 
commitments)  Compared to 
the GATS, 
sectoral 
commitments 
("negative 
list", except 
as indicated 
in the FTA 
horizontal 
reservations) 
are: Commitments 
on existing 
measures Commitments 
on future 
measures 
1. BUSINESS SERVICES     
A. Professional services Partial Improved Similar Partial 
B. Computer and related services  Partial Improved Full Full 
C. Research and development Partial Improved Full Full 
D. Real estate Full Similar Full Full 
E. Rental/Leasing services without 
operators Partial Improved Full  Full 
F. Other Full Similar Full  Full 
2. COMMUNICATION SERVICES     
A. Postal - Impr oved Full Full 
B. Courier - Improved Full Full 
C. Telecommunication  Partial Improved Similar Full 
D. Audiovisual Partial Improved Full Full 
E. Other - Improved Full Full 
3. CONSTRUCTION AND RELATED 
ENGINEERING SERVICES     
A. General construction work for 
buildings Full Similar Similar Full 
B. General construction work for civil 
engineering Full Similar Similar Full 
C. Installation and assembly work Full Similar Similar Full 
D. Building completion and finishing 
work Full Similar Similar Full 
E. Other Full Similar Full Full 
4. DISTRIBUTION SERVICES     
A. Commission agents' services Full Similar Similar Full  
B. Wholesale trade services Full Similar Full Full 
C. Retailing services Full Similar Full Full 
D. Franchising Full Similar Full Full 
E. Other Full Similar Full Full 
5. EDUCATION SERVICES     
A. Primary education services Full Similar Full Partial 
B. Secondary education services Full Similar Full Partial 
C. Higher education services Full Similar Full Full 
D. Adult education services Full Similar Full Full 
E Other education services Full Similar Full  Full 
6. ENVIRONMENTAL SERVICES     
A. Sewage services Full Similar Full Full 
B. Refuse disposal services Full Similar Full  Full 
C. Sanitation and similar services Full Similar Full  Full 
D. Other Full Similar Full Full 
7. FINANCIAL SERVICES     
A. All insurance and insurance-
related services Full Similar Full Full 
B. Banking and other financial 
services Full Similar Full  Full 
8. HEALTH RELATED AND SOCIAL 
SERVICES     
A. Hospital services Full Similar Full Full 
B. Other human health services - Similar Full Full 
C. Social services - Improved Full Full 
D. Other - Improved Full Full WT/REG361/1/Rev.1 
 
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  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
("positive 
list" except as 
indicated in 
the GATS 
horizontal 
commitments)  Compared to 
the GATS, 
sectoral 
commitments 
("negative 
list", except 
as indicated 
in the FTA 
horizontal 
reservations) 
are: Commitments 
on existing 
measures Commitments 
on future 
measures 
9. TOURISM AND TRAVEL 
RELATED SERVICES     
A. Hotels and restaurants Partial Improved Full  Full 
B. Travel agencies and tour 
operators Full Similar Full  Full 
C. Tourist guides Full Similar Full  Full 
D. Other - Improved  Full  Full 
10. RECREATIONAL, CULTURAL 
AND SPORTING SERVICES     
A. Entertainment services Full Similar Full Full 
B. News agency services Full Similar Full Full 
C. Libraries, archives, museums and 
other cultural services Full Similar Full Full 
D. Sporting and other recreational 
services Full Similar Full Full 
E. Other - Improved Full  Full 
11. TRANSPORT SERVICES     
A. Maritime Transport services Partial  Improved Full Full 
B. Internal waterways transport Partial  Improved Full Full 
C. Air transport services Partial  Improved Similar Similar 
D. Space transport services - Improved Full Full 
E. Rail transport services  Partial  Improved Similar Full  
F. Road transport services  Partial  Improved Similar Full 
G. Pipeline transport Partial  Improved Full Full 
H. Services auxiliary to all modes of 
transport Partial  Improved Full Full 
I. Other - New Full Full 
12. OTHER SERVICES NOT 
INCLUDED ELSEWHERE - Improved Full Partial 
Note: 
-:  No commitments. New:  New commitments made under the Agreement (with or without limitations).  Improved: Overall improved commitm ents made under the Agreement compared to those under the GATS. 
Similar:  Similar commitments (Agreement vs GATS); though possibly, in individual cases, with limited 
 improvements and/or limited  additional reservations . 
Source:  Draft Consol idated GATS Schedule of Specific Comm itments (S/DCS/W/JPN), prepared by the 
Secretariat (in 2003), and relevant section of Anne xes 6 and 7 to the Agreement. The comparison 
only concerns modes 1-3, market access, national treatment, and additional commitments; it does 
not concern commitments under mode 4.  WT/REG361/1/Rev.1 
 
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  4.6  Regulatory provisions  
4.6.1  Domestic regulation 4.100.  Article 9.8.1 on domestic regulation provides that each Party shall ensure that measures of 
general application affecting trade in services are administered in a reasonable, objective and 
impartial manner. Article 9.8.4 provides that with a view to ensuring that any measure adopted or 
maintained by a Party relating to the authorisation, licensing or qualification of service suppliers or to the technical standards of the other Party does not constitute an unnecessary barrier to trade in 
services, each Party shall endeavour to ensure that such measure (a) is based on objective and (b) 
is not more burdensome than necessary to ensure the quality of services; and (c) does not constitute a disguised restriction on the supply of  services. Article 9.8.6 describes transparency 
requirements where a Party maintains measures relating to licensing requirements and 
procedures, qualification requirements and procedures and technical standards or requires 
authorisation for supply of a service.  
4.6.2  Recognition 
4.101.  Article 9.9.1 provides that a Party may recognise the education or experience obtained, 
requirements met, or licences or certifications granted in the other Party for the purposes of the fulfilment, in whole or in part, of its standards or criteria for the authorisation, licensing or 
certification of service suppliers of the other Party. Such recognition may be pursuant to an 
agreement or arrangement between the Parties or may be accorded unilaterally (Article 9.9.2). Recognition shall not be accorded in a manner which would constitute a means of discrimination between the other Party and non-Parties (Article 9.9.4).  
4.6.3  Subsidies 
4.102.  Article 9.11.1 provides that each Party sh all review the treatment of subsidies related to 
trade in services taking into account the development of multilateral disciplines pursuant to 
paragraph 1 of Article XV of the GATS. If either  Party considers that its interests have been 
adversely affected by a subsidy of the other Party, the Parties shall, on request of the former Party, enter into consultations with  a view to resolving the matter.  
4.6.4  Safeguards 
4.103.  The Agreement contains no provisions on safeguards in services. Temporary safeguards 
measures in investment are permitted under Article 14.16. Article 14.16.1 permits the imposition of temporary safeguard measures (a) in the event of serious balance of payments measures or (b) 
in exceptional cases where movements of capital cause or threaten to cause serious difficulties for 
macroeconomic management, in particular monetary and exchange rate policies. 
4.6.5  Expropriation 
4.104.  Article 14.11 (and Annex 12) concern expropriation (and compensation) of investments. 
Article 14.11 provides that neither Party shall expropriate a covered investment either directly or indirectly except (a) for a public purpose, (b) on a non-discriminatory basis, (c) in accordance with 
due process of law, (d) upon payment of prom pt, adequate and effective compensation. The 
compensation calculation and payment modalities are set out in Article 14.11.2-5 inclusive. Article 14.12 concerns treatment in case of strife. Article 14.13 on transfers, requires each Party to allow 
all transfers to be made freely into and out of its Area without delay, and contains an illustrative 
list of included types of transfers. Article 14.15 sets out general exceptions from the obligations 
contained in Articles 14.3, 14.4, and 14.9.  
4.7  Sector specific provisions on trade in services 
4.7.1   Telecommunication Services 
4.105.  Chapter 10, Articles 10.1-23 concern telecommunication services. The scope of the 
Chapter is set out in Article 10.1. The Chapter provides for commitments additional to Chapters 9 
and 14 in relation to telecommunications services (Article 10.1.1). The Chapter applies to WT/REG361/1/Rev.1 
 
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  measures adopted or maintained by a Party affecting telecommunications services. Definitions 
used in the Chapter are set out in Article 10.2. 
4.106.  Article 10.3 provides that each Party shal l ensure that any service supplier of the other 
Party is accorded access to and use of public telecommunications transport networks and services 
in a timely fashion on transparent, reasonable and non-discriminatory terms and conditions 
(Article 10.3.1). Article 10.3.2 provides that each Party shall ensure that service suppliers of the 
other Party have access to and use of any public telecommunications transport network or service 
offered within or across the border of that Party, including private leased circuits, and to this end 
shall ensure that such suppliers are permitted to en gage in the activities listed in 10.3.2 (a)-(e).  
4.107.  Parties are required to maintain appropriate measures for the purpose of preventing 
suppliers who alone or together are engaging in continuing anticompetitive practices (Article 
10.7.1). Article 10.7.2 provides illustrative exam ples of proscribed anticompetitive behaviour. 
Article 10.8 requires the Parties to ensure that major suppliers in its Area accord suppliers of public telecommunications transport networks or services of the other Party treatment no less 
favourable that such major supplier accords in like circumstances to its subsidiaries, its affiliates or 
any non-affiliated service suppliers regarding (a) th e availability, provisioning, rates or quality of 
like telecommunications services and (b) the availability of technical interfaces necessary for 
interconnection.  
4.108.  Interconnection is dealt with under Article 10.10, and each Party shall ensure that 
suppliers of public telecommunications transport networks in its Area provide directly or indirectly interconnection with the suppliers of public telecommunications transport networks or services of 
the other Party on commercial terms (Article 10.10.1). Article 10.11 on the unbundling of network 
elements requires each Party to provide its tele communications regulatory body with the authority 
to require that major suppliers in its Area provide suppliers of public telecommunications networks 
or services of the other Party with access to network components or services on an unbundled 
basis, in a timely fashion on terms and conditions that are reasonable, non-discriminatory and transparent. Access to facilities is covered by Ar ticle 10.14. Universal service is defined by each 
Party (Article 10.16).  
4.109.  Article 10.19 on transparency provides th at Parties shall endeavour to ensure that (a) 
telecommunications service suppliers are provided with adequate advance notice of and opportunity to comment on any regulatory decision of general application that its 
telecommunication regulatory body proposes and (b) suppliers of public telecommunications 
transport networks or services of the other Part y are, on request, provided with a clear and 
detailed explanation of reasons for any decision to deny access of the kind specified in Articles 
10.10, 10.13 and 10.14 where that decision is made, approved or authorised by the Party. Article 
10.21 on resolution of telecommunications disputes contains obligations for each Party to seek information or domestic review of a telecommunications decision.  
4.110.  A Sub-Committee on Telecommunications is established by Article 10.22. 
4.7.2  Financial Services 4.111.  Chapter 11, Articles 11.1-11.12 concern Financial Services. The scope of the Chapter is set 
out in Article 11.1 – it provides for commitments a dditional to Chapters 9 (Trade in Services) and 
14 (Investment) in relation to financial services. Definitions are contained in Article 11.2.  
4.112.  Article 11.4 on domestic regulation provid es that nothing in the Agreement shall prevent a 
Party from adopting or maintaining measures relating to financial services or the financial system 
for prudential reasons including for the protection of investors, depositors, policy holders, or 
persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the Party's financial system. Article 11.5.1 (recognition) permits the Parties to 
recognise prudential measures of any international regulatory body or non-Party in determining 
how the Party's measures relating to financial services shall be applied. Recognition may be achieved through harmonization or otherwise, ma y be based upon an agreement or arrangement 
with the international regulatory body or non-Party concerned or may be accorded autonomously.   WT/REG361/1/Rev.1 
 
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  4.113.  Article 11.7 on regulatory transparency pr ovides that each Party shall promote regulatory 
transparency in financial services (Article 11.7.1). A Sub-Committee on Financial Services is established by Article 11.10. Article 11.12.1 on dispute settlement provides that arbitrators appointed under Article 19.6 on dispute settlement shall have expertise or experience in laws or 
practice of financial services.  
4.7.3  Electronic Commerce 4.114.  Chapter 13, Articles 13.1-10 concerns electronic commerce. Definitions used in the 
Chapter are set out in Article 13.2. Article 13.3 provides that the Parties shall continue their 
practice of not imposing customs duties on elec tronic transmissions between the Parties. Neither 
Party may accord less than favourable treatment to like digital products (Article 13.4), subject to the exclusions described in Article 13.5.3. Domestic regulation shall not unreasonably prohibit or 
restrict electronic commerce or its development (Article 13.5.1). Article 13.9 concerns paperless 
trade administration. Under Article 13.10 the Parties agree to, when appropriate, cooperate and participate actively in regional and multilateral  fora to promote the development of electronic 
commerce.  
5  GENERAL PROVISIONS OF THE AGREEMENT 5.1  Transparency 
5.1.  Article 1.3 of the Agreement provides that ea ch Party shall ensure that its laws, regulations, 
administrative procedures and rulings of general application as well as international agreements to which the Party is a party with respect to any matter covered by this Agreement are promptly published or otherwise made publicly available in such a manner as to enable interested persons 
and the other Party to become acquainted with them (Article 1.3.1). Article 1.3.3 provides that 
each Party shall, upon request of the other Party, respond to specific questions from and provide information to the other Party with respect to matters referred to in Article 1.3.1. When 
introducing or changing its laws, regulations or administrative procedures that significantly affect 
the implementation of the Agreement, each Party shall endeavour to take appropriate measures to 
enable interested persons and the other Party to become acquainted with such introduction or 
change. Article 1.4 provides (to the extent practica ble and subject to its laws and regulations) that 
each Party shall provide a reasonable opportunity for comments on any measure of general application it proposes to adopt with respect to  any matter covered by the Agreement. Article 1.5 
sets out requirements in relation to administrative proceedings.  
5.2  Current payments and capital movements 
5.2.  Except in Articles 9.12, 9.13, 11.9 and 14.13, the Agreement contains no specific provisions 
on current payments and capital movements. 
5.3  Exceptions 
5.3.  Article 1.9 provides that for the purposes of Chapters 2 (Trade in Goods), 3 (Rules of Origin) 
4 (Customs Procedures), 5 (Sanitary and Phytosanitary Cooperation), 6 (Technical Regulations, 
Standards and Conformity Assessment Procedures), 7 (Food Supply), 8 (Energy and Mineral 
Resources) and 13 (Electronic Commerce), Article XX of the GATT 1994 is incorporated by reference and forms part of the Agreement (Article  1.9.1). For the purposes of Chapters 9 (Trade 
in Services), 10 (Telecommunications Services), 11 (Financial Services), 12 (Movement of Natural 
Persons) and 13 Article XIV of the GATS is incorporated by reference and forms part of the 
Agreement.  
5.4.  Article 1.10 of the Agreement sets out securi ty exceptions and provides that nothing in the 
Agreement shall be construed to require a Party to furnish any information the disclosure of which 
it considers contrary to its essential security interests; to prevent a Party from taking any action which it considers necessary to its essential security interests (defined by exclusive examples in 
sub-paragraphs (i)-(iii)) or to prevent a Party from taking any action in pursuance of its obligations 
under the UN Charter for the maintenance of international peace and security.  WT/REG361/1/Rev.1 
 
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  5.5.  Article 1.8 of the Agreement sets out the circumstances in which the Agreement will apply to 
taxation measures. In the event of any inconsistency relating to a tax measure between the Agreement and any tax agreement, the latter shall prevail to the extent of the inconsistency. In the case of a tax agreement between the Parties any consultations about whether an inconsistency 
exists shall include the competent authorities of each Party under that tax agreement. 
Furthermore nothing in the Agreement shall oblige a Party to apply any MFN obligation in the Agreement with respect to an advantage accorded by a Party pursuant to a tax agreement. 
5.4  Accession and Withdrawal 
5.6.  Article 20.6 provides that either Party ma y terminate the Agreement by giving one year's 
advance notice in writing to the other Party. The agreement contains no provisions on accession to 
the Agreement. Article 20.5 provides that unless th e Parties otherwise agree, they shall undertake 
a general review of the implementation and operat ion of the Agreement in the sixth year following 
the date of entry into force of the Agreement or at any time agreed by the Parties. 
5.5  Institutional framework 
5.7.  In addition to the specific sub-Committees noted above, Chapter 18 creates a Sub-
Committee on promotion of a closer economic relationship. The functions of the Committee set out in Article 18.2 are reviewing and monitoring the implementation and operation of the Chapter, 
discussing any issues related to the Chapter including ways to promote a closer economic 
relationship between the Parties, further removal of obstacles to trade and investment, possibilities for additional cooperation in government and business sectors to promote bilateral trade and 
investment, discussing finding and outcomes of discussions of the Joint Committee.  
5.6  Dispute settlement 
5.8.  Chapter 19, Articles 19.1-18 concern dispute settlement under the Agreement. Article 19.3.1 
provides that nothing in the Chapter shall prejudice any rights of the Parties to have recourse to 
dispute settlement procedures available under any other international agreement to which both 
Parties are party. This expressly includes the WTO Agreement. Article 19.3.2 provides that notwithstanding Article 19.3.1, once a dispute settlement procedure has been initiated by a Party 
under Chapter 19 or under any other international agreement to which both Parties are party with 
respect to a particular dispute, that Party shall not initiate another dispute settlement procedure with respect to that particular dispute, unless (a) substantially separate and distinct rights or obligations under different international agreements are in dispute; (b) the dispute settlement 
procedure which has been initiated fails to make findings on the issues in dispute for jurisdictional 
or procedural reasons; or (c) the complaining Party terminates the dispute settlement procedure which has been initiated prior to the issuance of  any award or report by the dispute settlement 
body, whether draft, interim or final.  
5.9.  Under Article 19.4, either Party may request consultations with the other if it considers (a) 
any benefit accruing to it directly or indirectly under this Agreement is being nullified or impaired 
as a result of (i) the application of a measure which is inconsistent with the Agreement or (ii) the 
failure of the other Party to carry out its obligations under the Agreement or (b) any benefit accruing to it directly or indirectly under Chapter 2, 3, 4, 9 or 16 is being nullified or impaired as a result of the application by the other Party of a measure that is not inconsistent with the provisions 
of those Chapters, provided that the complaining Party presents a detailed justification in support 
of any complaint relating to the measure.  
5.10.  Good offices, conciliation or mediation are dealt with in Article 19.5. Procedures for 
establishment of and composition of arbitral panels are set out in Article 19.6. Article 19.8 
describes the functions of arbitral panels, and Article 19.9 the proceedings of arbitral panels. 
Article 19.11.1 provides that the arbitral panel may suspend its work (for a maximum of 
12 months) upon request by the complaining Party and with the consent of the other Party. The 
Parties also can agree to terminate the proceedings per Article 19.11.2. The requirements for the award of the arbitral panel are set out in Article 19.12. A specific implementation recommendation can be suggested by the panel, if requested by ei ther Party. The findings and suggestions of the 
arbitral panel shall not add to or diminish the rights of the Parties under the Agreement or any  WT/REG361/1/Rev.1 
 
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  other international agreement. The draft award shall be to enable each Party to review it 
(Article 19.12.6). The award of the panel shall be fi nal and binding on the Parties (Article 19.12.8).  
5.11.  Implementation of the award is cove red by Article 19.13. Article 19.14 concerns 
disagreement between the Parties concerning im plementation of an award per Article 19.13, 
including the reconvening of the arbitral pa nel to determine whether its award has been 
implemented. Compensation and suspension of conc essions is provided for in Article 19.15. Rules 
of procedure for the arbitral panel are to be created by the Joint Committee, under Article 19.16. 
According to the Parties, the Joint Committee which was held on 15 January 2015 adopted Rules of 
Procedure for arbitral tribunals in accordance with Article 19.16.1. WT/REG361/1/Rev.1 
 
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  Chart 5.1 - Chapter 19, Annex on Rules of Pr ocedure for Arbitral Tribunal proceedings 
 Written request for 
consultations (Art. 19.4.1) 
Response to the written request 
(Maximum 30 day, or 15 days if 
urgent re: peri shable goods) 
(Art. 19.4.3) 
Good offices (Art. 19.5 ) 
Written request for the 
establishment of arbitral 
tribunal (Art. 19.6.1 ) 
Appointment of arbitrators/chair 
by each party / composition of  
arbitral tribunal  
(within 30/45 days) 
(Art. 19.6.4-12) 
Timetable and terms of 
reference 
(Art. 19.7, 19.9) 
Issuance of arbitral tribunal’s 
draft award to the Parties 
(Art. 19.12.6) 
Opportunity for the Parties to 
review the draft award 
(minimum 30 days prior to 
issuance of final award)  
and provide comments  
(within 15 days)  
(Art. 19.12.6) Arbitral tribunal reconvened at 
request of either party to 
determine "reasonable time" 
within 45 days 
(Art. 19.13.3-4) Failure to agree on "reasonable 
time" within 45 days  
(Art. 19.13.3) 
Disagreement as to compliance 
with implementation of  
award or failure to comply  
within a reasonable time  
(Art. 19.14) 
Reconvening of arbitral tribunal 
at request of Party (Art. 19.14) 
Opportunity for the Parties to 
review the draft award (minimum 
30 days prior to issuance of final 
award) and provide comments 
(within 15 days) (Art. 19.14.8) Issuance of arbitral tribunal’s 
final award (Art. 19.2.3) 
Prompt implementation of the 
final award or implementation 
within a "reasonable time" as 
notified (Art. 19.13)  
Request consultations on mutually 
acceptable compensation 
(Art. 19.15) 
Issuance of reconvened arbitral 
tribunal’s draft award to the 
Parties (Art. 19.14.8) 
Issuance of reconvened arbitral 
tribunal's final award  
(Art. 19.14.8) Where Party complained against 
considers it impracticable to comply or 
notifies that it has failed to comply 
within a reason able time  
(Art. 19.15.1) 
Where award includes finding of 
non-compliance (Art. 9.15.1)  Where no agreement on mutually 
acceptable compensation within 20 days, 
Party provides notification of intention to 
suspend concessions or obligations  
(Art.19.15.2) 
 
Party may 
request 
consultations re: 
level of 
suspension 
(within 30 days 
of above 
notification) 
(Art. 19.15.4, 
19.15.7 ) 
Issuance of 
arbitral award 
within 45 days of 
reconvening  
(Art. 19.15.5, 
19.15.7) 
Suspension of concessions or other 
obligations until compliance with initial 
arbitral award (Art. 19.15.2)  
After 30 days of 
notification  
and  
no counter 
request for 
consultations 
made within 20 
days of 
notification  
(Art. 19.15.2) 
Where Party considers level of suspension 
is manifestly excessive, it may again seek 
consultations and reconvene an arbitral 
tribunal (Art. 19.15.7) Reconvening of 
arbitral tribunal 
(Art. 19.15.4, 
19.15.7) Where no 
agreement 
within 20 days  
(Art. 19.15.4, 
19.15.4.7)  WT/REG361/1/Rev.1 
 
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5.7  Relationship with other agreements concluded by the Parties 
5.12.  Article 1.11 concerns the relation be tween the Agreement and other Agreements. In 
Article 1.11.1 the Parties reaffirm their rights and obligations under the WTO Agreement. 
Article 1.11.2 provides that in the event of an y inconsistency between the Agreement and the WTO 
Agreement or any other agreement to which the Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution. If an international 
agreement to which the Parties are party and which is incorporated by reference into the 
Agreement is amended the Parties shall consult on whether it is necessary to amend the Agreement.  
5.13.  Table 5.1 below sets out the other RTAs to which the Parties are party.  
Table 5.1 Japan and Australia: Participation in  other RTAs (notified and non-notified in 
force), as of 12 November 2015 
RTA Name Date of 
entry into 
force Coverage GATT/WTO Notification 
Year WTO Provision 
JAPAN 
Japan - Peru 01-Mar-12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
India - Japan 01-Aug-11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
Japan - Viet Nam 01-Oct-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Japan - Switzerland 01-Sep-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Japan - Philippines 11-Dec-08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
ASEAN - Japan 01-Dec-08 Goods 2009 GATT Art. XXIV 
Brunei Darussalam - Japan 31-Jul-08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Japan - Indonesia 01-Jul-08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Japan - Thailand 01-Nov-07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Chile - Japan 03-Sep-07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Japan - Malaysia 13-Jul-06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Japan - Mexico 01-Apr-05 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Japan - Singapore 30-Nov-02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
AUSTRALIA 
Republic of Korea - Australia 12-Dec-14 Goods & Services 2014 GATT Art. XXIV & GATS Art. V 
Malaysia - Australia 01-Jan-13 Goods & Serv ices 2013 GATT Art. XXIV & GATS Art. V 
ASEAN - Australia - New 
Zealand 01-Jan-10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Australia - Chile 06-Mar-09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Thailand - Australia 01-Jan-05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
United States - Australia 01-Jan-05 Goods & Se rvices 2004 GATT Art. XXIV & GATS Art. V 
Singapore - Australia 28-Jul-03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Australia - New Zealand 
(ANZCERTA) 01-Jan-83 
01-Jan-89 Goods & Services 1983 
1995 GATT Art. XXIV  
GATS Art. V 
South Pacific Regional Trade 
and Economic Cooperation 
Agreement (SPARTECA) 01-Jan-81 Goods 1981 Enabling Clause 
Australia - Papua New Guinea (PATCRA) 01-Feb-77 Goods 1976 GATT Art. XXIV 
Source: WTO Secretariat. 
 
5.8  Government procurement 
5.14.  Chapter 17, Articles 17.1-25 and Annex 13 concern Government Procurement, and applies 
to any measure regarding covered procurement (Article 17.1.1).  
5.15.  Japan is a Party to the WTO Government Procurement Agreement (GPA). Australia is not a 
member of the GPA, but is an Observer to the Government Procurement Committee, and has recently announced it will commence negotiations to join the GPA. WT/REG361/1/Rev.1 
 
- 41 - 
 
  5.16.  The scope of the Chapter and definition of covered procurement is set out in Article 17.1.2. 
Excluded procurements are described in Article 17.1.3. Definitions used in the Chapter are contained in Article 17.2. The thresholds for covered procurement are set out in Article 17.5 and Annex 13 to the Agreement.
13  
5.17.  As a member of the WTO Government Procurement Agreement (GPA), Japan has 
undertaken commitments that are compared to the commitments under the Agreement; the entities and thresholds listed by Japan under  the GPA and the Agreement are identical.  
5.18.  Article 17.3 concerns national treatment and non-discrimination and provides in Article 
17.3.1 that each Party shall accord, immediately and unconditionally, to the goods, services and suppliers of the other Party treatment no less favourable that in accords to domestic goods, services and suppliers in respect of covered investments.  
5.19.  Article 17.24 provides that if a Party offers a non-party additional advantages of binding 
access to its government procurement market beyond what has been provided under the Chapter, the former Party shall, upon request, enter into  negotiations with a view to extending those 
advantages to the other Party on a reciprocal basis.  
5.9  Intellectual property rights 5.20.  Chapter 16, Articles 16.1-16.21 concern intellectual property. Article 16.1.1 provides that 
each Party shall grant and ensure adequate, effective and non-discriminatory protection of 
intellectual property, administration of its intellectual property system and provide for adequate and effective enforcement of intellectual property rights against infringement, including counterfeiting and piracy. In Article 16.1.2 each Party reaffirms its rights and obligations under the 
international agreements relating to intellectual property to which both Parties are party.  
5.21.  Definitions used in the Chapter are set out in Article 16.2. Under Article 16.3, the Parties 
shall accord the nationals of the other Party treatment no less favourable than the treatment it 
accords to its own nationals with regard to the protection of intellectual property, subject to 
exceptions provided in the TRIPS Agreement.  
5.22.  Article 16.8 provides that the Parties shall cooperate to enhance mutual utilisation of search 
and examination results to as to allow applicants to obtain patents in an efficient and expeditious 
manner. Under Article 16.9, provides that signs capa ble of distinguishing the goods and services of 
one undertaking from those of other undertaki ngs shall be registerable as trademarks. 
Article 16.10.1 on geographical indications provides that each Party shall recognise that 
geographical indications are eligible for protection through a trade mark system or other legal 
means. Article 16.1.2 states that the relationship between the protection of trade mark rights and 
that of geographic indications shall be in acco rdance with the TRIPS Agreement. Article 16.11 on 
new varieties of plants requires each Party to (in accordance with its rights and obligations under 
the UPOV Convention, provide for protection of plan t varieties by granting and protecting rights in 
a plant variety where the variety is new, distinct, uniform and stable. Article 16.12 concerns 
copyright and related rights. Article 16.13 requires each Party to protect undisclosed information in 
accordance with Article 39 of the TRIPS Agreement. The Parties reaffirm their rights and obligations for the protection of utility models in accordance with the Paris Convention in Article 16.14. Effective protection against acts of unfair competition is required by Article 16.15. In 
Article 16.16 the Parties are required to take approp riate measures to limit the liability of internet 
service providers for copyright infringement. Intellectual property enforcement is covered by Articles 16.17-16.20. A Sub-Committee on Intellectual Property is established in Article 16.21. Its 
functions are described in Articles 16.21.2 and 16.21.3. 
5.9.1  Competition and Consumer Protection 5.23.  Chapter 15, Articles 15.1-15.9 concern competition and consumer protection. Article 15.1 
describes the objectives of the Chapter – to contri bute to the fulfilment of the objectives of the 
Agreement by promoting economic efficiency and consumer welfare through the promotion of 
                                               
13 Annex 13, Part 1 specifies Australia's applicable procurement thresholds. Part  2 of Annex 13 sets out 
Japan's procurement thresholds (ide ntical to its GPA commitments).   WT/REG361/1/Rev.1 
 
- 42 - 
 
  competition and cooperation on consumer protection. Article 15.3.1 provides that each Party shall 
take measures which it considers appropriate, especially by addressing anticompetitive activities. Article 15.4 on state owned enterprises provides that in addition to Article 15.3, the Parties 
recognise that seeking to ensure that governments do not provide competitive advantages to state 
owned enterprises simply because they are stat e owned can contribute to the promotion of 
competition. Article 15.8 sets out disciplines on confidentiality of information. 
5.24.  Article 15.9 provides that the dispute settl ement procedures provided for in Chapter 19 shall 
not apply to Chapter 15.  
 WT/REG361/1/Rev.1 
 
- 43 - 
 
  ANNEX 1 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on MF N imports is shown in Tables A1.1 (Japan) and 
A1.2 (Australia), by agricultural (WTO definition ), non-agricultural and total products. Applied MFN 
duty rates in 2015 serve as a comparison.  
2. Japan's overall average applied MFN tariff rate in 2015 was 4.8%. The average applied tariff 
on agricultural goods was 11.2%, compared to an average applied tariff of 3.4% on 
non-agricultural products. Duty-free tariff lines a ccounted for 40.3% of all tariff lines. As of the 
entry into force of the Agreement, Australian expo rters enjoy duty-free access in 78% of all goods; 
86.7% of non-agricultural tariff lines became duty  free, compared to 42.9% of agricultural tariff 
lines. As a consequence Australian exporters to Japan benefited from an average margin of 
preference of 43.8% over the overall MFN tariff (67.6% for non-agricultural products and 14.3% 
for agricultural products). Following ten years of implementation in 2024 90.3% of all tariff lines are due to become duty free for imports from Australia (96.9% for non-agricultural products and 
63.3% for agricultural products). At the end of im plementation in 2031 90.5% of all tariff lines will 
become duty free (96.9% for non-agriculture and 64.6% for agriculture).  
Table A1.1 Japan: Indicators of MFN tariff ra tes and preferential rates for imports from 
Australia 
Origin of 
goods Year ALL PRODUCTS Agricultural productsa Non-agricultural 
products 
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2015 4.8 8.3 40.3 11.2 15.7 25.3 3.4 6.2 44.1 
Australia January 
2015 2.7 13.2 78.0 9.6 18.5 42.9 1.1 8.6 86.7 
 April 
2015 2.5 12.2 78.0 9.2 17.7 42.9 1.0 7.4 86.7 
 2016 2.3 11.2 78.0 8.8 17.0 42.9 0.8 6.3 86.7 
 2017 2.1 10.4 78.3 8.4 16.5 43.9 0.7 5.2 86.8 
 2018 1.9 12.7 83.2 8.0 15.8 43.9 0.5 7.7 93.0 
 2019 1.8 13.2 84.5 7.6 17.3 50.0 0.5 7.3 93.0 
 2020 1.7 12.6 84.5 7.4 16.7 50.0 0.5 6.7 93.0 
 2021 1.6 14.6 86.9 7.1 18.8 56.0 0.4 7.9 94.5 
 2022 1.6 14.2 86.9 7.0 18.5 56.0 0.4 7.5 94.5 
 2023 1.6 13.8 86.9 6.8 18.1 56.0 0.4 7.1 94.5 
 2024 1.6 18.9 90.3 6.6 22.2 63.3 0.4 11.6 96.9 
 2025 1.5 18.8 90.3 6.6 22.1 63.3 0.4 11.6 96.9 
 2026 1.5 18.8 90.3 6.6 22.0 63.3 0.4 11.6 96.9 
 2027 1.5 18.7 90.3 6.6 21.9 63.3 0.4 11.6 96.9 
 2028 1.5 18.6 90.3 6.5 21.9 63.3 0.4 11.6 96.9 
 2029 1.5 19.2 90.5 6.5 22.8 64.6 0.4 11.6 96.9 
 2030 1.5 19.2 90.5 6.5 22.8 64.6 0.4 11.6 96.9 
 2031 1.5 19.2 90.5 6.5 22.8 64.6 0.4 11.6 96.9 
a WTO Definition. 
Note: Tariff lines subject to in-quota rates are exclud ed in the computation; fo r calculation of averages, 
specific rates are excluded and the ad valorem part of alternate rates are included. 
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data su bmission from the Japanese authorities.  WT/REG361/1/Rev.1 
 
- 44 - 
 
  3. Table A1.2 shows the market access opportunities in Japan for Australia's top 25 exports, 
which in 2012-2014 accounted for an average of 74.3% of Australia's global exports. The table shows in which year all HS 8-digit tariff lines co rresponding to the product definition will become 
duty free in Japan.  
4. Australia's top 25 exports (at the HS 6 digit leve l) cover a total of 84 Japanese national tariff 
lines of which 44 were already duty-free on an MFN basis in Japan in 2015. Upon entry into force of the Agreement a further 22 lines became duty fr ee. In 2029, six lines will become duty-free, 
with 14 lines remaining dutiable.  
Table A1.2 Japan: Market access opportuniti es under the Agreement for Australia's top 
25 exports to the world and to Japan.
 
Australia's top export products in 2012-2014 Access Conditions to Japan's import markets 
MFN (2015)
Duty-free in 
Remain  
dutiable HS number and description of the product 
Share in 
global exports 
(%) 
Share in total 
exports to 
Japan (%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff lines 
Duty-free 
Dutiable 
January 
2015 
2019 
2021 
260111 Non-agglomerated iron ores and 
concentrates (exc l. roasted iron 
pyrites) 24.46 27.65 0.0 1      
270112 Bituminous coal, whether or not 
pulverised, non-agglomerated 15.42 41.71 0.0 5      
271111 Natural gas, liquefied 5.92 - 0.0 1      
710813 Gold, incl. gold plated with 
platinum, in semi-manufactured 
forms, for non-monetary 
purposes 5.33 0.02 0.0 2      
270900 Petroleum oils and oils obtained 
from bituminous minerals, crude 3.96 1.86 0.0 2      
100199 Wheat and meslin (excl. seed for 
sowing, and durum wheat) 2.37 1.09 6.7 2 4    4 
281820 Aluminium oxide (excl. artificial 
corundum) 2.06 - 0.0 1      
260300 Copper ores and concentrates 2.05 4.55 0.0 1      
020230 Frozen, boneless meat of bovine 
animals 1.40 2.12 38.5  4    4 
740311 Copper, refined, in the form of 
cathodes and sections of 
cathodes 1.24 0.56 2.0 1 2  2   
300490 Medicaments consisting of mixed 
or unmixed products for therapeutic or prophylactic purposes, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. medicaments containing antibiotics, medicaments containing hormones or steroids used as hormones, but not containing antibiotics, 
medicaments containing alkaloids 
or derivatives thereof but not containing hormones or antibiotics and medicaments containing provitamins, vitamins or derivatives thereof used as vitamins) 1.01 0.19 0.0 4      
760110 Aluminium, not alloyed, 
unwrought 0.99 2.83 0.0 1      WT/REG361/1/Rev.1 
 
- 45 - 
 
  Australia's top export products in 2012-2014 Access Conditions to Japan's import markets 
MFN (2015)
Duty-free in 
Remain  
dutiable HS number and description of the product 
Share in 
global exports 
(%) 
Share in total 
exports to 
Japan (%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff lines 
Duty-free 
Dutiable 
January 
2015 
2019 
2021 
520100 Cotton, neither carded nor 
combed 0.94 0.10 0.0 1      
510111 Greasy shorn wool, incl. fleece-
washed wool, neither carded nor 
combed 0.88 0.01 0.0 1      
271019 Medium oils and preparations, of 
petroleum or bituminous minerals, not containing biodiesel, n.e.s. 0.85 0.02 2.2 9 22 22    
020130 Fresh or chilled bovine meat, 
boneless 0.80 2.56 38.5  4    4 
120510 Low erucic acid rape or colza 
seeds "yielding a fixed oil which 
has an erucic acid content of < 2% and yielding a solid component of glucosinolates of < 30 micromoles/g" 0.68 0.24 0.0 1      
100390 Barley (excl. seed for sowing) 0.59 0.36 - 2 2    2 
260800 Zinc ores and concentrates 0.58 0.51 0.0 1      
220421 Wine of fresh grapes, incl. 
fortified wines, and grape must 
whose fermentation has been 
arrested by the addition of 
alcohol, in containers of <= 2 l 
(excl. sparkling wine) 0.54 0.09 -  2  1 1  
260200 Manganese ores and 
concentrates, incl. ferruginous manganese ores and concentrates, with a manganese content of >= 20%, calculated on the dry weight 0.54 0.18 0.0 4      
870323 Motor cars and other motor 
vehicles principally designed for 
the transport of persons, incl. 
station wagons and racing cars, 
with spark-ignition internal 
combustion reciprocating piston 
engine of a cylinder capacity > 
1.500 cm³ but <= 3.000 cm³ 
(excl. vehicles for the transport 
of persons on snow and other 
specially designed vehicles of 
subheading 8703.10) 0.46 0.00 0.0 1      
260700 Lead ores and concentrates 0.43 0.54 0.0 1      
261690 Precious-metal ores and 
concentrates (excl. silver ores 
and concentrates) 0.42 0.34 0.0 1      
880330 Parts of aeroplanes or 
helicopters, n.e.s. (excl. those for gliders) 0.42 0.02 0.0 1      
Total of above 74.33   44 40 22 3 1 14 
- combination of ad valorem  and specific duties. 
Note: Based on the HS 2012 nomenclature. 
Source: WTO estimates based on data provided by Ja panese authorities and UNSD, Comtrade database.  
   WT/REG361/1/Rev.1 
 
- 46 - 
 
  5. Australia's overall average applied MFN tariff rate in 2015 was 2.6%. The average applied 
tariff on agricultural goods was 1.3%, compared to an average applied tariff of 2.8% on non-
agricultural products. Australia unilaterally reduce d MFN tariff rates from 10 to 5% on 226 tariff 
lines on 1 January 2015. The base rate for tariff reductions under the Agreement is 10%. Duty-
free tariff lines accounted for 47.6% of all tariff li nes; 73% of agricultural tariffs were duty free, 
while 43.6% of non-agricultural products entered du ty free on an MFN basis. As of the entry into 
force of the Agreement, Japanese exporters enjo y duty-free access in 90.6% of all goods, 100% 
for agricultural products and 89.1% for non-agri cultural products. Japanese exporters benefited 
from a relative margin of preference of 84.6% overall, 100% for agricultural products and 82.1% 
for non-agricultural products. By the end of impl ementation by Australia in 2021 99.9% of tariffs 
will be duty free for imports from Japan with 100% of agricultural tariffs and 99.9% of non-
agricultural tariffs duty free.  
Table A1.3 Australia: Indicators of MFN tari ff rates and preferential rates for imports 
from Japan 
Origin of 
goods Year ALL PRODUCTS Agricultural productsa Non-agricultural 
products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2015 2.6 5.0 47.6 1.3 5.0 73.0 2.8 5.0 43.6 
Japan January 
2015 0.4 4.4 90.6 0.0 0.0 100.0 0.5 4.4 89.1 
 April 
2015 0.4 3.7 90.6 0.0 0.0 100.0 0.4 3.7 89.1 
 2016 0.3 3.2 91.8 0.0 0.0 100.0 0.3 3.2 90.5 
 2017 0.1 1.8 91.8 0.0 0.0 100.0 0.2 1.8 90.5 
 2018 0.0 3.5 99.0 0.0 0.0 100.0 0.0 3.5 98.8 
 2019 0.0 2.5 99.0 0.0 0.0 100.0 0.0 2.5 98.8 
 2020 0.0 1.3 99.0 0.0 0.0 100.0 0.0 1.3 98.8 
 2021 0.0 0.0 99.9 0.0 0.0 100.0 0.0 0.0 99.9 
a WTO Definition. 
Note: Based on the HS 2012 nomenclature.  Source:  WTO estimates based on data subm ission from the Austra lian authorities. 
6. Table A1.4 shows the market access opportunities in Australia for Japan's top 25 exports, 
which in 2012-2014 accounted for an average of 74.3 % of Japan's global exports. The table shows 
in which year all HS 8-digit tariff lines corresponding to the product definition will become duty 
free in Australia.  
7. Japan's top 25 exports at HS 6 digit level cover a total of 73 Australian national tariff lines of 
which 35 were already duty-free on an MFN basis in 2015. On entry into force of the Agreement in 
2015 15 lines became duty free. In 2018 a further ei ght lines will become duty-free, with 5 lines 
(second hand vehicles) remaining dutiable once the Agreement is fully implemented.  WT/REG361/1/Rev.1 
 
- 47 - 
 
  Table A1.4 Australia: Market access opportun ities under the Agreement for Japan's top 
25 exports to the world and to Australia.  
Japan's top export products in 2012-2014  Access Conditions to Australia's import 
markets 
MFN (2015) 
Duty-free in 
Remain  
dutiable HS number and description of the product  
Share in global 
exports (%) 
Share in total 
exports to Japan 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines Duty-free 
Dutiable 
January 
2015 
2016 
2018 
870323 Motor cars and other motor vehicles principally 
designed for the transport of persons, incl. station wagons and racing cars, with spark-ignition internal combustion reciprocating piston 
engine of a cylinder capacity > 1.500 cm³ but 
<= 3.000 cm³ (excl. vehicles for the transport of persons on snow and other specially designed vehicles of subheading 8703.10) 6.75
 21.92  5.0  4 3   1 
870324 Motor cars and other motor vehicles principally 
designed for the transport of persons, incl. 
station wagons and racing cars, with spark-
ignition internal combustion reciprocating piston 
engine of a cylinder capacity > 3.000 cm³ 
(excl. vehicles for the transport of persons on 
snow and other specially designed vehicles of 
subheading 8703.10) 3.65 4.46 5.0  4  3  1 
870840 Gear boxes and parts thereof, for tractors, 
motor vehicles for the transport of ten or more 
persons, motor cars and other motor vehicles 
principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles, n.e.s. 2.27
 0.74 3.6 2 5   5   
890190 Vessels for the transport of goods and vessels 
for the transport of both persons and goods 
(excl. refrigerated vessel s, tankers, ferry-boats 
and vessels principally designed for the 
transport of persons) 1.88 0.02 2.5 1 1 1    
271019 Medium oils and preparations, of petroleum or 
bituminous minerals, not containing biodiesel, n.e.s. 1.62
 14.48  0.0 12      
844399 Parts and accessories of printers, copying 
machines and facsimile machines, n.e.s. (excl. 
of printing machinery used for printing by 
means of plates, cylinders and other printing 
components of heading 8442) 1.44 1.22 0.0 1      
854239 Electronic integrated circuits (excl. such as 
processors, controllers, memories and 
amplifiers) 1.44 0.01 0.0 1      
854232 Electronic integrated circuits as memories  1.22 0.00 0.0 1      
842952 Self-propelled mechanical shovels, excavators 
and shovel loaders, with a 360° revolving 
superstructure 0.97 2.84 2.5 1 1 1    
848620 Machines and apparatus for the manufacture of 
semiconductor devices or of electronic 
integrated circuits 0.91 0.00 2.5 2 2 2    
870322 Motor cars and other motor vehicles principally 
designed for the transport of persons, incl. station wagons and racing cars, with spark-ignition internal combustion reciprocating piston engine of a cylinder capacity > 1.000 cm³ but 
<= 1.500 cm³ (excl. vehicles for the transport 
of persons on snow and other specially designed vehicles of subheading 8703.10) 0.90
 2.91 5.0  4 1 2  1 
852580 Television cameras, digital cameras and video 
camera recorders 0.90 0.74 2.5 1 1 1    
901380 Liquid crystal devices, n.e.s. and other optical 
appliances and instruments not elsewhere specified in chapter 90 0.83
 0.00 0.0 1       WT/REG361/1/Rev.1 
 
- 48 - 
 
  Japan's top export products in 2012-2014  Access Conditions to Australia's import 
markets 
MFN (2015) 
Duty-free in 
Remain  
dutiable HS number and description of the product  
Share in global 
exports (%) 
Share in total 
exports to Japan 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines Duty-free 
Dutiable 
January 
2015 
2016 
2018 
870899 Parts and accessories, for tractors, motor 
vehicles for the transport of ten or more 
persons, motor cars and other motor vehicles 
principally designed for the transport of 
persons, motor vehicles for the transport of 
goods and special purpose motor vehicles, 
n.e.s. 0.77 0.28 3.8 1 3   3  
840991 Parts suitable for use solely or principally with 
spark-ignition internal combustion piston engine, n.e.s. 0.76
 0.31 2.5 1 1 1    
854231 Electronic integrated circuits as processors and 
controllers, whether or not combined with 
memories, converters, logic circuits, amplifiers, 
clock and timing circuits, or other circuits 0.74 0.00 0.0 1      
847989 Machines and mechanical appliances, n.e.s.  0.72 0.06 2.5 1 1 1    
870422 Motor vehicles for the transport of goods, with 
compression-ignition internal combustion piston 
engine "diesel or semi-diesel engine" of a gross 
vehicle weight > 5 t but <= 20 t (excl. 
dumpers for off-highway use of subheading 
8704.10 and special purpose motor vehicles of 
heading 8705) 0.72 3.12 5.0  1 1    
854140 Photosensitive semiconductor devices, incl. 
photovoltaic cells whether or not assembled in 
modules or made up into panels; light emitting 
diodes (excl. photovoltaic generators) 0.69 0.01 0.0 1      
853690 Electrical apparatus for switching electrical 
circuits, or for making connections to or in 
electrical circuits, for a voltage <= 1.000 V 
(excl. fuses, automatic circuit breakers and 
other apparatus for protecting electrical circuits, 
relays and other switches, lamp holders, plugs 
and sockets) 0.61 0.02 2.5 1 1 1    
870333 Motor cars and other motor vehicles principally 
designed for the transport of persons, incl. 
station wagons and racing cars, with compression-ignition internal combustion piston engine "diesel or semi-diesel engine" of a cylinder capacity > 2.500 cm³ (excl. vehicles 
for the transport of persons on snow and other 
specially designed vehicles of subheading 8703.10) 0.61
 7.54 5.0  4 1 2  1 
880330 Parts of aeroplanes or helicopters, n.e.s. (excl. 
those for gliders) 0.60 0.03 0.0 1      
870332 Motor cars and other motor vehicles principally 
designed for the transport of persons, incl. station wagons and racing cars, with compression-ignition internal combustion piston 
engine "diesel or semi-diesel engine" of a 
cylinder capacity > 1.500 cm³ but <= 2.500 cm³ (excl. vehicles for the transport of persons on snow and other specially designed vehicles of subheading 8703.10) 0.60
 2.17 5.0  4  3  1 
845710 Machining centres for working metal 0.59 0.05 0.0 1      
382490 Chemical products and preparations of the 
chemical or allied industries, incl. those consisting of mixtures of natural products, n.e.s. 0.59
 0.04 1.0 4 1 1    
Total of above 32.80  62.98   35 38 15 10 8 5 
Note: Based on the HS 2012 nomenclature. 
Source: WTO estimates based on data provided by the Australian authorities and UNSD, Comtrade database. 
  WT/REG361/1 /Rev.1  
 
- 49 - ANNEX 2 
Table A1.1 Japan: Preferential tariff rate quotas 
Tariff line MFN 2015 Quota quantity In quota duties 
010121290 3,400,000 yen each 30 Annual reduct ion of duties from 3,400,000 yen in Fiscal Year 1 to 1,700,000 
yen in Fiscal Year 7. 
020311020, 020321020 361 yen/kg 5,600 MT in Fiscal Year 1; 7,280 
MT in Fiscal Year 2; 8,960MT in 
Fiscal Year 3; 10,640 MT in Fiscal 
Year 4; 12,320 MT in Fiscal Year 
5; and 14,000 MT in Fiscal Year 6 
and onwards 401.65 yen/kg minus the value for customs duty/kg, or 361 yen/kg, 
whichever is less 
020311030, 020321030 Min (361 yen/kg; difference 
between the standard import 
price and the value for 
customs duty per kg) 401.65 yen/kg minus the value for customs duty/kg 
020311040, 020319022, 
020321040 4.3% 401.65 yen/kg minus the value for customs duty/kg or 2.2% whichever is 
the greater 
020312021, 020319021, 
020322021, 020329021 Min (482 yen/kg; difference 
between the standard import 
price and the value for 
customs duty per kg) 535.53 yen/kg minus the value for customs duty/kg 
020312022, 020322022, 
020329022 4.3% 535.53 yen/kg minus the value for customs duty/kg or 2.2%, whichever is 
the greater 
020312023, 020319023, 
020322023, 020329023 482 yen/kg 535.53 yen/kg minus the value for customs duty/kg or 482 yen/kg or 
whichever is less 
020649091, 160241019, 
160242019, 160249220 8.5% 4.3% 
160241011, 160242011, 
160249210 Min (1,035 yen/kg; 
difference between the value 
obtained by multiplying the 
standard import price by 1.5 
and the value for customs 
duty by 0.6 per kg) (577.15 yen minus the value for customs duty times 0.6)/kg or 4.3% 
whichever is greater 
160241090, 160242090, 
160249290 20% 16% 
020610011, 020610019, 020621000, 020622000, 
020629010 12.8% 17,000 MT in Fiscal Year 1; 
17,400 MT in Fiscal Year 2; 17,800 MT in Fiscal Year 5; 18,200 MT in Fiscal Year 6; 18,600 MT in Fiscal Year 7; 19,000 MT in Fiscal Year 8; 19,400 MT in Fiscal Year 9; 
19,800 MT in Fiscal Year 10; 
20,200 MT in Fiscal Year 11; 
20,600 MT in Fiscal Year 12; and 
21,000 MT in Fiscal Year 13 and 7.6% 
020610020 50% 30% 
020610090 21.3% 12.7% 
020629020 50% 30% 
020629090 21.3% 12.7% 
021020000, 021099020 161.50 yen/kg 96.90 yen/kg  
  WT/REG361/1 /Rev.1  
 
- 50 - Tariff line MFN 2015 Quota quantity In quota duties 
subsequent years 
020711000, 020712000 11.9% 40MT in Fiscal Year 1 increasing 
annually by 16 MT to 200 MT in 
Fiscal Year 11, and onwards 10.7% 
020713100 8.5% 7.6% 
020713200 11.9% 10.7% 
020714210 8.5% 6.8% 
020714220 11.9% 8.5% 
160210000 21.3% 17% 
160231210, 160232210 21.3% 19.1% 
160232290 6% 3.6% 
160239210 21.3% 19.1% 
040310211 26.3% 100 MT in Fiscal Year 1 increasing 
annually by 10 MT to 200 MT in 
Fiscal Year 11. 26.3% with annual reductions to 13. 2% in Fiscal Year 10 and unchanged 
onwards 
040310219 29.8% 29.8% with annual reductions to 14.9% in Fiscal Year 10 and unchanged 
onwards 
040610090 040640090, 
040690090 29.8% 4,000 MT in Fiscal Year 1, 
increasing annually to 20,000 MT 
by Fiscal Year 21 and subsequent 
years . 
 Zero 
040620100 40% 200 MT in Fiscal Year 1, 
increasing by 80 MT per year to 
1,000 MT by Fiscal Year 11 and 
subsequent years 25.1% with annual reductions to 13. 2% in Fiscal Year 10 and unchanged 
onwards 
040620200 26.3% 25.1% with annual reductions to 13. 2% in Fiscal Year 10 and unchanged 
onwards 
040630000 40% 50 MT per year in Fiscal Year 1, 
increasing by 5 MT per year to 
100 MT by Fiscal Year 11 and 
subsequent years 40% with annual reductions to 20% in Fiscal Year 10 and unchanged 
onwards 
040690090 29.8% 1,000 MT in Fiscal Year 1, 
increasing by 400 MT per year to 
5,000 MT by Fiscal Year 11 and 
subsequent years Zero 
04090000 25.5% 80 MT in Fiscal Year 1, increasing 
annually to 160 MT by Fiscal Year 
11 and subsequent years 25.5% with annual reductions; zero in Fiscal Year 10 and thereafter 
110710029 21.30 yen/kg 8,600 MT in Fiscal Year 1, 
increasing annually to 86,000 MT 
by Fiscal Year 11 and subsequent 
years Zero 
160100000 10% 1,100 MT in Fiscal Year 1, 
increasing annually to 2,700 MT in 
the sixth year and subsequently 8% 
160220010,  21.3% 17% 
160250210 21.3% 5,300 MT in Fiscal Year 1, 17%  
  WT/REG361/1 /Rev.1  
 
- 51 - Tariff line MFN 2015 Quota quantity In quota duties 
160250291 25% increasing by 300 MT per year to 
8,300 MT in Fiscal Year 11 and 
subsequent years 20% 
160250292, 160250299, 160250320, 160250391, 160250399, 160250490, 
160250600, 160250700 21.3% 17% 
160250410, 160250420 25% 20% 
160250510, 160250520, 
160250590 10% 8% 
160250810 45% 36% 
160250890 38.3% 30.6% 
160250910, 160250991, 
160250999 50% 30% 
170490230, 170490290 25% 100 MT per year 20% 
180620290 21.3% 1,000 MT in Fiscal Year 1, 
increasing by 200 MT per year to 
3,000 MT in Fiscal Year 11 and 
subsequent years Zero 
200911110 25.5% 1,300 MT per year 12.8% 
200911190, 200912190, 
200919190 The greater of 29.8% or 23 
yen/kg 14.9% or 11.50 yen/kg whichever is the greater 
200911210, 200912210, 
200919210 21.3% 10.7% 
200911290, 200912110, 
200912290, 200919290, 
200919110 25.5% 12.8% 
200971110, 200979110 23% 1,600 MT per year 11.5% with annual reductions; zero by Fiscal Year 10 and thereafter 
200971190, 200979190 The greater of 34% or 23 
yen/kg 17% or 11.5 yen/kg, whichever is greate r, with annual reductions; zero in 
Fiscal Year 10 and thereafter 
200971210, 200979210 19.1% 9.5% with annual reductions; zero in Fiscal Year 10 and thereafter 
200971290 29.8% 14.9% with annual reductions; zero in Fiscal Year 10 and thereafter 
200979290 29.8% 14.9% with annual reductions; zero in Fiscal Year 10 and thereafter 
210500111, 210500113 21% 180 MT in Fiscal Year 1, 
increasing annually to 2,000 MT in 
Fiscal Year 11 and for subsequent 
years. 20% with annual reductions to 10.5 % in Fiscal Year 10 and unchanged 
onwards 
210500191 29.8% 29.8% with annual reductions to 14.9% in Fiscal Year 10 and unchanged 
onwards 
210500210 21.3% 21.3% with annual reductions to 10. 7% in Fiscal Year 10 and unchanged 
onwards 
350510100 6.8% 14,000 MT per year Zero 
 
__________