WORLD TRADE  
ORGANIZATION   
WT/TPR/M/276 
13 June 2013 
 (13-3062) 
Trade Policy Review Body 
19 and 21 February 2013  
 
 
 
TRADE POLICY REVIEW 
 
JAPAN 
 
Record of the Meeting 
 
Chairperson:  H.E. Mr. Shahid Bashir (Pakistan) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF JAPAN  5 
III. STATEMENT BY THE DISCUSSANT 9 
IV. STATEMENTS BY MEMBERS 14 V. REPLIES BY THE REPRESENTATIVE OF JAPAN AND ADDITIONAL 
 COMMENTS  52 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 60 
 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Japan are 
reproduced in document WT/TPR/M/276/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/276 
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  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON  
1. The eleventh Trade Policy Review of Jap an was held on 19 and 21 February 2013. 
The Chairperson H.E. Mr. Shahid Bashir (Pakista n) welcomed the delegation of Japan headed by 
H.E. Mr. Jun Yokota, Ambassador in charge of econom ic diplomacy, Ministry of Foreign Affairs; the 
rest of the delegation from Japan and colleagues from the mission in Geneva; and the discussant, 
H.E. Mr. Jonathan Fried (Canada). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting. The report by Japan was contained in document WT/TPR/G/276 and 
that of the WTO Secretariat in WT/TPR/S/276. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to  the delegation of Japan: Ukraine;  Colombia;  Switzerland;  
Singapore;  Australia;  United States;  Hong Kong, China;  South Africa;  the Republic of Korea;  China;  Canada;  Brazil;  Chile;  Me xico;  Norway;  Argentina;  New Zealand;  Costa Rica;  India;  
EU;  Indonesia;  ASEAN;  Thailand;  Chinese Taipei;  and Ecuador. Th e following delegations 
submitted written questions after the two-week deadli ne: Turkey;  Trinidad and Tobago;  Dominican 
Republic;  and the Philippines. 
4. Japan refrained from raising new trade barrier s during the period under review (2011-2012) 
despite a severe negative impact of the global financial and economic cr isis, and the March 2011 
Great East Earthquake and Tsunami on its econom y.  The Japanese economy contracted since its 
previous Trade Policy Review in 2011, exports cont inued to decline and as a result Japan recorded a 
trade deficit for the first time since 1980, which r esulted in the current account surplus declining to 
2% of GDP (from nearly 3% of GDP in 2009).  In  response to the earthquake and tsunami, national 
and local governments implemented supplementary budgets, while monetary policy was also eased at 
the same time. It appears that these measures were successful and the Japanese economy has rebounded.   
5. While looser macroeconomic policies have helped  Japan's recovery from the crisis, its long 
term structural problems continue to impede gr owth.  The Japanese authorities have taken certain 
measures such as a reduction in the statutory corporate tax rate so as to encourage investment as well 
as a gradual increase in the consumption tax rate.  Members would be interested in knowing what 
other steps the authorities are taking or plan to take  to address Japan's struct ural issues including trade 
liberalization. 
6. The report by the Secretariat notes that in the aftermath of the severe accidents at nuclear 
power plants in north-eastern Japan, the Government  is reviewing whether to adopt any regulatory 
reform in the energy and utilities sector and also its  energy mix.  Members would be interested in 
knowing what steps have been planned in this rega rd especially in light of a new government coming 
to power in Japan. 
7. Concerning Japan's trade policy regime, while it remains committed to the multilateral trading 
system and to an early conclusion of the Doha Ro und, it has also been intensifying its pursuit of 
bilateral/regional free trade agreements with some of its trading partners, and has notified the entry 
into force of two new economic partnership agreem ents since 2011, while several others are being 
negotiated.  Japan maintains that these agreements will serve as building blocks to reach higher trade 
liberalization at the multilateral level.  Members woul d be interested in learning more about how the 
Government of Japan hopes to accomplish this goal. 
8. Overall, this Review provided Members an opportunity to exchange on certain systemic 
issues of interest to all policy makers.  These included: WT/TPR/M/276 
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   Non- ad valorem  duties, account for 6.6% of Japan's tariff lines, tend to involve high AVEs, 
 and are an important feature of Japan's ta riff, particularly for agricultural products. 
 Tariff rate quotas, the quota allocation method and process remain somewhat intricate. 
 Agriculture, the sector remains a small part of  the economy despite relatively high levels of 
 support.  WT/TPR/M/276 
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  II. OPENING STATEMENT BY THE REPRESENTATIVE OF JAPAN 
9. It gives me great pleasure to represent my country for the third time in a Trade Policy 
Review. I would like to express Japan's sincere apprec iation to all the Members participating in this 
Review; to the Chair, Ambassador  Bashir; and to the distinguished discussant, Ambassador Fried. I 
would also like to acknowledge the excellent c ontribution of the Trade Policy Review Division. 
Mr. Eglin and his team, Mr. Hayafuji, Mr. Latrille a nd Mr. Khilji, have worked very hard to produce a 
truly comprehensive and on the whole fair report. 
10. More than 700 questions from 29 Members attest to the keen interest they have in Japan's 
economic and trade policies. I am pleased to ann ounce that the responses to all the questions 
submitted by the closing date are being distributed today in written form. 
11. The Trade Policy Review has proven its worth as a tool to achieve greater transparency in the 
trade policies of Members. Japan c ontinues to remain strongly committe d to this valuable mechanism. 
One indicator of this commitment is the fact that I am heading a team of 14 persons to travel from 
Tokyo specifically for this purpose. In addition, mo re seriously, our commitment to the enhancement 
of transparency can be seen in the fact that we  have constantly supplied the Secretariat with the 
required data in a timely manner. We would like to encourage all the Members to do likewise, if they 
have not already done so. 
Recovery from the Great East Japan Earthquake  
12. On 11 March 2011, one month after the last TPR  for Japan, my country was struck by the 
Great East Japan Earthquake. Helping hands were ex tended to us from all over the world and we wish 
to reiterate our heartfelt gratitude for that. The da mage both in terms of human lives and material was 
massive and is still weighing on our economy. But, it should be noted that Japan has not adopted any 
protectionist measure as a result. The Secretariat's report mentions that since the last TPR, Japan has 
not even used the gap between the bound and the applie d MFN tariffs to raise them. In spite of all the 
difficulties, Japan's GDP remains the third largest in the world; and the vo lume of trade, which 
dropped in 2008 due to the financial crisis, has recovered steadily from US$1 trillion in 2009 to 
US$1.3 trillion in 2012, placing Japan in the fourth place in terms of volume of trade. One issue of 
serious concern to us related to the disaster is that some countries still maintain a blanket import ban 
on foodstuffs from some areas of Japan, citing radioac tive contamination. Very soon after the disaster, 
we have set up a large scale monitoring system for foodstuffs so that contaminated foods do not reach 
consumers. Under this monitoring system, around 375, 000 inspections have been carried out to date, 
and the screening data is posted on the internet  immediately, ensuring complete transparency. 
Moreover, last April, stricter standards of limit va lues for radioactive materials in food products were 
introduced when carrying out these inspections. As a r esult, Japan has so far managed to avoid having 
foods breaching the standards distributed and reaching consumers. Today, almost two years after the disaster, Japan requests those Members still maintain ing special border measures occasioned by it to 
weigh carefully the scientific grounds for doing so, pa rticularly in view of the fact that many WTO 
Members have already lifted such measures, some as early as only three months after the earthquake, 
without any hitch being reported. 
Global Value Chain  
13. Now, turning to another point related to the Gr eat East Japan Earthquake and also to the flood 
that hit Thailand in the same year, we think that these two disasters starkly demonstrated the extent of 
the so-called Global Value Chain and the ripple effe ct a breakdown of even one link may have on the 
entire Chain. Following the disaster, the temporary shutdown of many factories producing high-tech 
products, often key components of final products pr oduced in other countries, had the potential to 
severely disrupt the global industrial production. In vi ew of this experience, Japan wishes to see the WT/TPR/M/276 
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  WTO address these issues more deeply  so that the salient features of today's intricate trade could be 
better understood. In this regard, Japan attaches im portance to the joint research with the OECD to 
understand the reality of Trade in Value Added. Th e Institute of Developing Economies of the Japan 
External Trade Organization has contributed to th e understanding of Trade in Value Added through 
its research over the years which have culminated  in the joint report with the WTO in 2011.  
New government's economic policy 
14. As the Members are well aware, my country h as a new Government since last December. The 
Abe administration attaches its highest priority to revitalizing the economy by first attacking deflation 
which has been plaguing us for a long time. It  is pressing forward with a three-pronged strategy, 
consisting of aggressive monetary policy, flexible fi scal policy, and a growth strategy that encourages 
private-sector investment. 
15. This clear commitment to pro-growth policies ha s already been welcomed enthusiastically in 
the Tokyo Stock Exchange, where share prices are substantially higher than when Mr. Abe took 
office. In addition, the strategy has received broad attention in various international fora such as the 
World Economic Forum Annual Meeting this year. 
16. Of course, there is still much to be done. Above  all, a major challenge we are currently facing 
is how to implement the third arrow namely a growth strategy that encourages private-sector investment. We plan to adopt this new growth strate gy in the middle of the year, though some parts of 
it will be implemented even before the finalization of the entire strategy. Emphasis will be placed on 
strengthening the competitiveness of our economy ov er the mid- to long-term, through innovation and 
accelerating the removal of domestic in stitutional and regulatory obstacles. 
Open trading system WTO 
17. Bearing in mind that international trade plays an  important role in accelerating the integration 
of the world economy, Japan continues to adhere  to the non-discriminatory principles of the 
multilateral trading system (MTS) under the WTO. It is therefore in our view essential to achieve 
concrete outcomes at the ninth Ministerial Conference (MC9) in order that the WTO retains its 
credibility.  
Resisting protectionism 
18. Strongly concerned by growing instances of protectionism around the world, I would like to 
point out, especially to the Members of G20 an d APEC, the successive commitments their leaders 
have made in this regard. In order to counteract  this tendency, Japan fully supports the idea of 
strengthening the monitoring exercises of the WTO.   
Accession 
19. As integration into the MTS is beneficial fo r developing countries, Japan has consistently 
supported the accession negotiations of new Members and will continue to do so in the future. 
FTAs/EPAs 
20. On FTAs/EPAs, Japan is currently developing a network of FTAs/EPAs. Of course, careful 
attention is paid so that they conform fully to the WTO rules and obligations. At present, with the 
addition of the Economic Partnershi p Agreements with India and with the Republic of Peru that took  WT/TPR/M/276 
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  effect after the last TPR, Japan has concluded 13 EPAs. The amount of our trade covered by these 
EPAs is about 19%. Aside from ongoing EPA negotiati ons with Australia, Mongolia, Canada and the 
Republic of Colombia, Japan is about to start negotiating the so-called Regional Comprehensive 
Economic Partnership (RCEP) ne gotiations, and the Free Trade Agreement negotiation among Japan, 
China and Korea. Additionally, following the adopt ion of the negotiating mandates for a Japan-EU 
EPA by the Foreign Affairs Council of the EU, Japan and the EU are preparing for an early launch of 
the negotiations.  
Investment Agreements 
21. Japan has actively pursued concluding investment  agreements as a means to create stable, 
equitable, favorable and transparent conditions for increased investment. Since its last TPR, Japan has 
so far signed 4 bilateral investment agreements, one trilateral investment agreement and one EPA 
containing an investment chapter. 
Asia- Pacific Economic Cooperation 
22. We have also been a promoter of trade and investment liberalization through the economic 
integration of the Asia-Pacific region, in the framework of the Asia- Pacific Economic Cooperation 
(APEC). In this vein, last year, Japan actively cont ributed to the development of the APEC List of 
Environmental Goods.  
Aid for Trade (AfT) 
23. We believe that attracting foreign direct i nvestment is the most efficient way for the 
developing countries to further benefit from the MT S. Aid-for-Trade can play a significant supporting 
role in creating a better investment climate if it is  combined with home-grown, spontaneous effort by 
the developing countries themselves. 
Development Initiative for Trade 
24. Japan has been active in enhancing AfT-related measures. In this regard, Members may recall 
that my country undertook an Aid-for-Trade initia tive entitled "Development Initiative for Trade", for 
two consecutive 3 year periods and has fully implem ented its commitment of US$22 billion aid. As 
the major provider of AfT, Japan will continue to contribute to the expansion of trade by the 
developing countries. 
Enhancement of Connectivity 
25. One of the key components of Japan's AfT is Enhancement of Connectivity in South-East 
Asia and Africa. 
26. At the Japan-ASEAN Summit Meeting in Nove mber 2011, then Prime Minister Noda 
announced "Flagship Projects" which comprised of  33 projects for enhancing ASEAN Connectivity. 
These projects are making steady headway.  
27. For Africa, believing that it is one of the pl aces where the development of inter-regional trade 
is most important for economic growth, Japan announced a project called One Stop Border Post under the framework of the Tokyo International Confer ence on African Development (TICAD) to promote 
smooth and efficient cross-border procedures. Assistan ce has already been provided in 14 locations in 
Africa. At TICAD V taking place in 1-3 June 2013  in Yokohama, robust and sustainable economic 
growth is one of the three themes to be discussed . Participants are expected to address the issue of 
improvement of trade-related capacity building. WT/TPR/M/276 
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  Aid for Trade Asia-Pacific Regional Technical Group 
28. A group consisting of Asia-Pacific countries including Japan organized a small voluntary 
expert group called the "Regional Technical Gr oup (RTG)". This group is  conducting continuous 
discussions on how to implement effective Aid-for-T rade measures in light of Asian experiences. 
Japan has been serving as a co-cha ir of this group since its inception in 2009. In March 2013, Japan 
will host the Sixth RTG meeting in Tokyo to comple te the second report, which will be submitted to 
the Fourth Global Review in July. 
Duty-Free, Quota Free Market Ac cess to products from LDCs 
29. Japan has provided Duty-Free, Quota-Free Market Access to products from the least 
developed countries (LDCs). The items subject to the preferential treatment cover 98% of products, 
which exceeds the level agreed to in Hong Kong. Import volume from LDCs has doubled from 2005 
to 2011. 
Conclusion 
30. The notion that Japan owes its present economic  prosperity to the opportunities for growth 
provided by the post-Second-World-War multi-lateral trading system is deeply ingrained in us. 
Today, as cross-border economic integration is rapidly advancing among Members, developing 
country Members included, Japan reiterates its willingness to promote trade liberalization and its commitment to contributing to the strengthening of the multi-lateral trading system.   WT/TPR/M/276 
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  III. STATEMENT BY THE DISCUSSANT (H.E. MR. JONATHAN FRIED (CANADA)) 
31. Greetings to his Excellency, Mr. Jun Yokot a, Ambassador in Charge of Economic 
Diplomacy; to his delegation; to Ambassador Otab e; to Ambassador Bashir; and to Members.   
32. Before starting, I should note that my presentation and remarks are in my own personal 
capacity.   
33. My comments should be received against the backdrop outlined by Mr. Yokota, which 
includes Japan's leadership at the WTO, commitment to the multilateral trading system, and the 
importance Japan attaches to the trade policy review mechanism. 
34. I wanted to do something a little different today by situating my comments in a broader 
context, supported by visual aids.   
35. Japan experienced a tragic start to the review period. 
36. 3'11 was as formative for Japan as 9'11 was for other countries, and is the single largest 
influence on Japan's trade policies and practices during the review period.  
37. Coupled with the earthquake, and subsequent ts unami, are radiation fallout from Fukushima, 
and (a few months later) severe flooding in Th ailand, which as Mr. Yokota highlighted, had a 
significantly negative impact on trade through impacting key supply chains.  
38. It is against this backdrop that I would like to: (1) begin by reminding Members why Japan 
matters; (2) highlight the inherent strength Japan carries; (3) outline some of the challenges facing 
Japan (which Mr. Yokota also highlighted); and (4 ) look ahead to some of the policy initiates and 
reforms we might expect from Japan. 
39. Japan matters, perhaps more than you think.  
40. Japan remains the third largest country by GDP , with a large and diverse economy that is 
comprehensively integrated into global supply chains.  
41. Supporting Japan's economy is a deep and integrated connection to the world through 
significant international trade flows.   
42. And Japan continues to be the world's fourth  largest exporter and importer of goods (even 
when counting the European Union as one).  
43. Japan is globally integrated, not only through its deep commitment to th e multilateral trading 
system, but also through a growing number of fr ee trade, or Economic Partnership Agreements 
(EPAs).  
44. Japan has often been criticized of not being sufficiently open to trade, and Members have 
submitted many questions regarding Japan's approach to EPAs.  
45. What is clear, however, is that Japan has an  ambitious trade agenda, as illustrated by the 
graphic.   
46. In my view, Japan's pursuance of bilateral and re gional trade agreements is not incompatible 
with the WTO.  Japan should be commended, not only for exercising on-going leadership at the WTO, but also for advocating a stronger role for the WTO vis-à-vis RTAs.  WT/TPR/M/276 
Page 10  
 
  47. Japan builds from a foundation of financial strength. 
48. Japan has the second largest foreign exchange r eserves and considerable household assets.  In 
effect Japan is cash rich. 
49. Japan also has a strong corporate sector full of well-established firms with international 
brands made famous for their reputa tion for quality products and services.  
50. Japanese companies have also increasingly taken advantage of overseas growth opportunities.  
Outbound mergers and acquisitions have surged  since late 2009, with 2012 witnessing record 
breaking values of acquisitions.  
51. Regarding Japan's large debt, despite very low yields, debt continues to be overwhelmingly 
held domestically, which significantly diminishes systemic risk. 
52. As pointed out by Mr. Yokota, Japan has been a significant contributor to global growth and 
development. 
53. Japan is a leader and champion of aid for trade, pledging US$12 billion in assistance for 
2009-2011, bringing its total commitments si nce 2002 to an astounding US$50 billion. 
54. And we heard that, notwithstanding the events of  3'11, Japan has resisted protectionism and 
should be commended on adhering to its G20 commitments, despite ch allenging domestic conditions.  
55. In fact, Japan is a significant facilitator of tr ade through foreign direct investment, and is the 
largest investor in China; Japan's stock of invest ment in China has grown over 21% a year on average 
over the last 10 years.  
56. And Japan remains an innovator.  Based on WIPO's  most recent statistical releases, Japan has 
granted more patents than any other country in 2011.   
57. Over 300,000 patents were granted in Japan in 2011, more than 50% greater than the patents 
granted by the next leading country (the U.S.).   
58. As shown on the graph on the right, Japan is  also a major investor in Research and 
Development, both from public and private sources.  
59. Turning from strengths to challenges, the gr aph on the right shows a pronounced double-dip 
recession.  Just as Japan had started to recover fro m Lehman, it faced successive natural disasters in 
the forms of an earthquake, tsunami , and later floods in Thailand.  
60. Add to this weak global demand, particularly in the EU, U.S., and a high Yen, and it is not 
surprising that Japan's trade balance moved into deficit in 2011.  
61. We should also consider the shift from technolog y-intensive exports of finished products to 
capital equipment, components, and other unfinis hed products, which had a pro-cyclical effect, 
aggravating the downturn in Japanese exports as companies put off long-term capital investments. 
62. One final factor is the decrease in domestic energy production, due to the Fukushima nuclear 
accident, causing Japan to dramatically increase energy imports, at a time of rising energy prices. 
63. From situational factors, I would like to move to  structural challenges, which have also been 
highlighted by Mr. Yokota in his opening remarks.  WT/TPR/M/276 
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  64. We've already touched on Japan's debt.  Simply  put, Japan spends more than it raises in 
revenues, leading the debt-to-GDP ratio to rise steadily, to above 200% in 2011. 
65. Although Japan pays low interest, the servicing of Japan's debt will become increasingly 
expensive as shown on the graph on the right.  
66. That is why it is imperative that the Japanese government act now to put itself on a 
sustainable fiscal path.   
67. Japan also faces deflation, which partially e xplains its weak growth and worsening debt. 
68. Mild deflation for over a decade has reduced pr ivate investment and domestic consumption, 
and an exit from deflation is therefore essentia l to achieving growth and facilitating fiscal 
consolidation.  
69. Mr. Yokota has also mentioned Japan's aging popul ation.  The graph on the right dramatically 
shows that Japan's aging population will reach a cr itical phase over the next ten years, necessitating 
measures to increase the labour force.   
70. Japan, frankly, is middling with respect to  productivity, according to the OECD.   
71. As shown on the graph on the left, in 2010 labour  productivity in Japan was the lowest in the 
G7 and well below the OECD average.   
72. Although Japan has been energy self-sufficient fo r many years, it should come as no surprise 
that 3'11 and Fukushima have led to a surge in energy imports to Japan.  
73. The graph on the right shows that domest ic power generation fell below domestic 
consumption in 2011, mostly due to the sh arp decline in nuclear power generation.  
74. Japan must now decide on longer term structur al changes as to how energy is produced and 
consumed in Japan. 
75. Mr. Yokota highlighted Prime Minister Abe's th ree pronged approach to achieve sustainable 
growth.  
76. Under the first arrow, the government has adopted flexible fiscal policies, including 
significant short term stimulus.  
77. Under the second arrow, the government has pursued bold monetary policies, including a 
commitment to unlimited asset purchases, in an attempt to reach its new 2% inflation target – moves which were supported by the G7 and G20. 
78. Trade alone cannot be the primary engine of growth as Japanese expor ts have not accounted 
for more than 20% GDP. 
79. In contrast, domestic demand accounts for an overwhelmingly large proportion of GDP, with 
over 60% coming from the private sector.   
80. Thus, encouraging demand must be an integr al component of any comprehensive plan to 
return to growth. WT/TPR/M/276 
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  81. It is therefore necessary to undertake structural reforms, including to encourage risk capital, 
foster inward investment, and raise the labour supply.  
82. But trade can still be an important lever for growth.  
83. The graphic on the left shows the value of the components and labour of an iPod assembled in 
China, with Japan accounting for the largest proportion of value-added trade. 
84. The right graphic shows a broader story, not only about Japan's integration into Asia, but also 
Asia's deep integration into the rest of the world.  
85. Although more than half of Asian exports go direc tly to the rest of the world, exports within 
Asia are often inputs for further production, and ultima tely almost 3/4 of Asian exports are destined to 
non-Asian markets. 
86. So we can see that, just as the well-being of japan is good for the world, what is good for the 
world is also good for Japan.  
87. Regarding structural reforms, trade can still be an important level for growth.  
88. Regarding agriculture, Japanese farmers are al so aging and agricultural output is on a 
consistent decline. One reason may be Japanese po licies that require all farmland to be worked 
directly by its owners.   
89. As a result, Japan's farms have remained sm all, especially compared  to those in other 
countries. For example, the average size of a farm  in Japan was only 1.9 hectares in Japan, and only 
1.7% of farmers in Japan cultivate more than 12.5 acres of land. 
90. Regarding services, Merrill Lynch economist Jesp er Koll noted in 2000 that "Japan has 
392,000 wholesalers - a staggering number. Yet two-thirds  of them just sold things to each other and 
not retailers or producers, and four-fifths of Japanese wholesalers have less than 10 employees each."   
91. Japan's sclerotic wholesaling, warehousing, and logistical services sectors create unnecessary 
bottlenecks, choking the supply of trade and commerce facilitating services.    
92. Finally, regarding telecommunications, Japan's st rength is also a curse.  The incompatibility 
of Japanese technology has created near-monopolistic  situations, leading to high communication 
charges.   
93. Opening Japan's agricultural, services, and in pa rticular telecom, sectors, to greater foreign 
competition would increase competition, leading to gr eater efficiency, productivity, and cost savings 
for Japanese consumers and businesses.   
94. Let me say a word about labour.  
95. As shown on the graph on the right, Japan's shar e of foreign workers and female participation 
in the labour force are well below other G7 countries.  
96. To address its aging population and shrinking la bour supply, Japan could consider policy 
changes to encourage female labour, raise the reti rement age, and increase foreign labour through 
immigration reform.   
97. Regarding productivity, I would like to say a few words about risk capital.    WT/TPR/M/276 
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  98. As shown on the graphs, Japan ranks quite lo w on encouraging risk capital and inward 
investment, making it difficult for SMEs to access start-up funding.  
99. For example, as shown on the graph on the right, Japan has the lowest venture capital 
investment in the G7, and is well below the OECD average.   
100. Increasing foreign equity investments to Japan ese firms can also improve competitiveness by 
increasing market discipline, and address corporat e governance issues, such as self-dealing and other 
conflicts of interest, by bette r aligning management incentives with sound business decisions.   
101. The IMF conservatively estimates that modest reforms to increase the supply of labour, to 
encourage risk capital, SME startup, trade integra tion, and deregulation could increase GDP by 1.5% 
per year.  
102. Although 1.5% may not seem significant, it would be more than double the average growth 
rates for G7 countries in 2011.   
103. In conclusion, I would like to encourage Japan  to be like Ultraman, a wonderful character 
from Japanese popular culture, and undertake needed re forms, including to deepen trade integration.  
104. I hope that provides a useful beginning for constructive discussions in the TPR.  WT/TPR/M/276 
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  IV. STATEMENTS BY MEMBERS 
UKRAINE 
105. Despite the global crisis, the trade turnover be tween Ukraine and Japan had grown by 30%.  
At the same time, there is the significant unt apped potential of bilateral trade and economic 
co-operation between the countries. 
106. Ukraine considers Japan as a prospective tr ade partner and seeks to strengthen economic 
relations by giving a new impetus to sustainable trade. 
107. Ukraine takes specific interest in the new facts and developments in Japan's trade regime, and 
this TPR provides an ample opportunity to discuss it.  Since Japan's previous Trade Policy Review in 
2011, the trade regime is stable, th ere has been almost no change in  its trade and related policies. 
108. Nevertheless, there are some facts that have dr awn our closer attention and we would like to 
indicate some still existing issues as follows: 
 Japan's tariff is low, but remains complex: the non- ad valorem  rates of duty account for 6.6% 
 of all tariff lines and apply to fats and oils, footwear, prepared foods, live animals and animal 
 products, textiles and clothing, vegetables, a nd mineral products. Besides Japan has not 100% 
 binding coverage. 
 The agriculture sector continues to receive substantial government support, comoprising, inter 
 alia , a relatively high average MFN applied rate  compared with other sectors; tariff quotas; 
 income support; and, in some  subsectors, production controls. 
109. Support is provided mainly through market price support; in addition, relatively high tariffs 
and production restrictions are in place, which lead to higher pri ce. Agricultural products receive 
much higher tariff protection than non-agricultural products:  the simple aver age for agriculture is 
17.5%, compared with 3.7% for non-agricultural products. 
110. State-trading activities in Japan involve, inter alia , rice, wheat, barley and milk products that 
complicate access of foreign producers and exporters  to these markets and results in high prices for 
Japanese consumers. 
111. Ukrain believes that further liberalization of Japan's services industries,  such as insurance, 
telecommunications, maritime transport, and medical and health services is an important contribution 
to sustainable growth of the global economy. 
112. Ukraine urges Japan as G-20 member to continue  its liberalization of trade and lead by 
example. 
COLOMBIA  
113. Since the previous Trade Policy Review (TPR), Japan has been shaken by an earthquake and 
a tsunami, which devastated the eastern part of th e country on 11 March 2011. Today, a mere two 
years after this tragedy, Japan is showing signs of recovery and its real GDP is expected to experience 
positive growth of around 2.4%, bearing witness to th e courage and resolve with which the country 
has faced adversity. 
114. Growth is being driven by reconstruction of the country, to which ¥17 billion, roughly 4% of 
GDP, have been dedicated. These resources have been  used not only to re build Japan's physical  WT/TPR/M/276 
 Page 15 
 
 
  infrastructure, but also to create new, innovative an d far reaching programmes: (1) the creation of new 
innovative industries: environmentally friendly indus tries, life sciences, science and technology, and 
information and communications sectors; (2) the promotion of SMEs as an engine of growth and revitalization; and (3) the programme for prom oting Japan. These programme s will help Japan to 
emerge from the tragedy stronger than ever. 
115. Other OECD figures support this belief: R&D acco unts for 3.4% of GDP, the fourth highest 
among OECD countries; the share of the adult popula tion that has completed tertiary education in 
Japan is the second highest in the OECD area at 43% ; and the performance of Japanese students in the 
OECD's PISA assessment is outstanding. In 2009, Japan ranked second among OECD countries in 
science, fourth in mathematics and fifth in reading. 
116. These strengths obviously form a solid foundation on which to build a brilliant economic 
future. However, recovery is still fragile and thr eatened by serious circumstantial and structural 
problems, the most worrisome of which include: th e appreciation of the yen, deflation, the aging 
population, the relatively low level of foreign direct investment, and lastly, the magnitude of the fiscal 
problem, with a fiscal deficit exceeding 10% of GDP  and government debt of close to 230%, which 
was already around 220% prior to the earthquake. 
117. We therefore encourage Japan to continue with tax reforms to curb the growing public debt 
and maintain fiscal discipline, these being important  conditions for maintaining market confidence in 
Japan's public finances and in an economy that is fundamental for global prosperity and the expansion 
of international trade. Data show that there is still room for increasing revenues and relieving fiscal 
pressures. According to the OECD, Japan's tax/GDP ratio is among the lowest and Doing Business 
ranks Japan 120th in terms of tax payments. 
118. Moreover, we believe that greater openness would help revitalize the Japanese economy. 
While it is true that many of the applied MFN rates are the same as the bound rates and that the arithmetic average of applied tariffs in 2012 was relatively low at 6.3%, there are still significant non 
tariff barriers to trade hindering market access. It should be noted that agricultural products, 
made‑up articles and articles of apparel – sectors of major interest to developing countries – 
continue to be subject to high tariff peaks, quotas and state trading practices. We therefore urge Japan 
to achieve even greater integration in the worl d economy by reducing barriers to trade and easing 
restrictions on foreign investment. 
119. At the bilateral level, we have negotiated a reciprocal investment promotion and protection 
agreement, which has established a transparent lega l framework for the promotion and protection of 
foreign direct investment flows, and have just begun negotiating a free trad e agreement. We believe 
that these agreements will consolidate our relations w ith the Asia Pacific region, which we consider of 
prime importance for our country's trade policy in the coming years. 
120. At the multilateral level, we wish to highlight the active role played by Japan in driving the 
Doha Round negotiations. In partic ular, we support its efforts as a member of the Friends of Anti 
Dumping Negotiations, a group in which we are work ing together to clarify and strengthen the 
disciplines of the Agreement and eliminate trade distorting measures, such as "zeroing" negative 
dumping margins and excessively extending anti dumping duties. 
SWITZERLAND 
121. As Ambassador Yokota mentioned, only days after Japan's last Trade Policy Review in 
February 2011, the north-east of Japan was hit by a major earthquake. Amidst the loss of lives and 
livelihoods, Japan's recovery ended up abruptly. Foll owing the slump in world trade in the wake of 
the global financial crisis, the Japanese Government reacted with a large spending oriented stimulus WT/TPR/M/276 
Page 16  
 
  programme, which however further exacerbated an alr eady dire debt problem. While disaster recovery 
gave a short-lived push to the Japanese economy, other external factors hit its world-class export 
industry hard. Meanwhile, some other sectors of the domestic economy continue to suffer from old 
structural weaknesses and a lack of competitiveness.  
122. Given these gloomy prospects, against a backgr ound of widespread precarious employment 
for the young and a rapidly aging society, domest ic demand remains weak . Additional spending 
increased the debt to GDP ratio already highest among advanced economies with only modest effects to the economy. Speaking also from the Swiss experience of stagnation during the 90s, I am 
convinced that only far-reaching structural reform s and further efforts to open up markets in all 
domestic sectors will be the way ahead. At the same  time, Japan needs to increase revenues because, 
in our view, even though the debt is mostly domest ically held, it clearly see ms to be unsustainable. 
Given that the present income and consumer tax leve ls are fairly low in international comparison, 
there seems to be a margin of maneuver which shoul d be used to re-establish a better fiscal balance 
while reducing the pressure on monetary policy. 
123. Regarding the bilateral economic  relations between Switzerland and Japan, I am pleased that 
they were only slightly affected by the crisis. I am convinced that one main reason for this is the 
comprehensive bilateral Free Trade and Economic Partnership Agreement es tablished between our 
two countries.  
124. Turning to the TPR at hand, Switzerland has s ubmitted a series of questions in writing and I 
would like to thank the Japanese Delegation for the r espective answers we have just received. We will 
examine them with great interest.  
125. Please allow me to highlight some of those qu estions. They range from important draft bills 
which do or do not have to undergo ex-ante regulatory impact analyses to Japan's decision to lift import bans on beef for some countries but not for others where the same conditions prevail with 
regard to their risk status in the World Organisa tion for Animal Health OIE. Some of these decision 
making processes are perceived to lack transparency w ith the danger of arbitrary decisions and thus 
discrimination.  
126. Another set of questions are related to agricultural policy, a field where Switzerland and 
Japan usually share similar interests. We are, fo r example, interested in the reasons behind the 
exclusion of certain products from Japan's GSP sche me in which developing countries would have a 
comparative advantage and we would like to know more about a possible shift of Japan's subsidy programmes towards more conformity with the Green Box criteria. 
127. Before I conclude, I would like to highlight the important and constructive role of Japan in the 
WTO work and in particular also the good coopera tion Switzerland and Japan enjoy in this forum. For 
exporters of high-value, high-technology goods  and services like our two countries, a strong 
rules-based system, as provided by the WTO, remains essential. We look forward to pursuing and further enhancing our already very close cooperation in this regard. 
SINGAPORE 
128. Singapore and Japan enjoy an excellent multi-facet ed bilateral relationship.  In 2012, Japan 
was our eight largest trade partner, with bilateral trade at US$52.1 billion.  Bilateral investment flows 
span an increasing array of sectors, reflecting the ma turity of our relationshi p.  At end 2011, Japan 
was Singapore's third-largest investor. Cumulative investments totaling US$52 billion were made in 
electronics, chemicals and engineering, and more recently, biomedical sciences and water technology.  
Singapore was also Japan's third largest source of  cumulative investments between 2006 and 2011.   WT/TPR/M/276 
 Page 17 
 
 
  Singapore companies actively participate in the real  estate, hospitality and logistics sectors in Japan, 
and more recently, in food services, chemicals,  electronics and precision engineering.    
129. Our strong economic relationship is underpi nned by the Japan-Singapore New-Age Economic 
Partnership Agreement (JSEPA) which entered into force in 2002.  JSEPA will undergo its third 
review this year to further update the agreement to  reflect our evolving business needs, and help spur 
growth in bilateral trade and investment.  
130. I wish to echo the Discussant's assessment th at Japan's network of FTAs underscores her 
pro-liberalization stance. We warmly welcome Japan's  interest in regional integration initiatives such 
as the Trans-Pacific Partnership (TPP), and its participation in the ASEAN-led Regional Comprehensive Economic Partnership (RCEP), whic h will help foster closer regional economic 
integration.  These are signs of Japan's c ontinued commitment towards increasing trade and 
investment relations in the region, buildi ng up its early commitment to the ASEAN-Japan 
Comprehensive Economic  Agreement (AJCEP). 
131. Singapore appreciates that, despite the tremendous  economic costs of the Fukushima disaster 
in March 2011, Japan has not raised tariffs and h as made little use of contingency measures.  Instead, 
Japan has lowered applied MFN tariffs on a number  of products, and conti nued to actively pursue 
trade liberalisation through economic partnership ag reements and regional initiatives.  Here at the 
WTO, at the G20 and APEC, Japan has also led with  a firm voice to consistently remind its trading 
partners of their pledges against protectionism, and to roll back trade restri ctive measures.  Japan's 
steadfast efforts in this regard must be co mmended during this TPR, especially given the severe 
domestic challenges that Japan has faced in this period under review.   
132. We also welcome Japan's initiatives to help en courage inward FDI, such as the reduction in 
corporate tax rates, and the Program for Promoting Japan as an Asian Business Centre and Direct Investment into Japan. To help address its longstanding structural problems, Singapore wishes Japan well in staying the course with reforms, particularly in improving productivity in the services sector, and reducing the ratio of public debt to GDP. We  also encourage Japan to contribute to the 
multilateral trade negotiations through the liberalisation of its agriculture sector. 
133. I support Ambassador Yokota's remarks earlier that  the work on value chain analysis, which 
Japan itself began 20 years ago, will be helpful to  members in understanding how to better integrate 
into the multilateral trading system. Taking the exam ples cited this morning about the iPod, and the 
supply chain relationship between Japan and Tha iland during the tsunami and floods, both show how 
integrated we are, and how much Japan can  catalyse the regional and global economy.  
134. Here in Geneva, our delegation appreciates th e close cooperation with Ambassador Yoichi 
Otabe and his colleagues.  Apart from Japan's strong and consistent support for development 
intiatives, we will also continue our close cooperation with Japan in areas of sh ared interest such as 
the Trade Facilitation negotiations and ITA expansion.   We very much share and appreciate Japan's 
constructive positions towards our common goal of advancing the Doha Round and a successful 9th 
Ministerial Conference in Bali.   
AUSTRALIA 
135. Australia and Japan enjoy a strong and highly complementary trading relationship.  We work 
together across a range of international bodies, in cluding the WTO, to advance our respective trade 
agendas.  We are also close partne rs in the G20.  Australia looks forward to the opportunity to work 
more closely with Japan on trade liberalization, and other economic policy issues, leading up to and 
during Australia's term as chair of the G20 in 2014. WT/TPR/M/276 
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  136. Japan is Australia's second largest export ma rket, and will remain so for the foreseeable 
future.  In 2011-12, Japan was Australia's second-la rgest trading partner in goods and services, with 
trade valued at around US$76 billion.  Japan is also  Australia's third most important investment 
partner, with two-way investme nt totalling about US$158 billion, of  which about US$52 billion is 
direct investment. 
137. Australia notes that, for Japan, much of the re view period was dominated by its response to 
the Great East Japan Earthquake in 2011. Japan's recovery has thrown up enormous and ongoing 
challenges that are likely to continue to be importa nt influences for Japan fo r some time.  Australia 
has sought to support Japan's reconstruction effort s and welcomes the progress Japan has made to 
date. 
138. The report notes Japan's strong support for th e multilateral trading system, and Australia 
welcomes Japan's continued contribution to the work of the WTO.  As is clear from Japan's report, 
Japan has continued to play a significant role in promoting trade as a tool for development and increased prosperity, particularly in East Asia but also globally.  Japan has provided extensive 
financial and other support to assist a range of count ries in East Asia and the Pacific improve their 
trade capacity, including through facilitating customs and related procedures.  Japan also plays a key 
role in the Aid for Trade Asia-Pacific Regional Technical Group, work that Australia supports. 
139. Australia has significant interests in the Japane se agriculture market.  While there are clearly 
domestic sensitivities in this sector, Australia con tinues to be concerned by the high tariff and 
non-tariff barriers that Japan imposes on a range of agricultural products, and by the very high levels 
of support Japan provides its farmers.  These levels  of support impede trade and impose significant 
costs on Japanese consumers.  They also make Japan  a less attractive market for food exporters from 
other countries, undermining Japan's stated aim of increasing food security. 
140. As a strong supporter of the multilate ral trading system, Japan has an important role to play in 
the continuing efforts to find new ways to make  progress in the Doha Round negotiations.  Japan has 
supported progress in negotiations on trade facilitation,  and Australia encourages Japan to continue to 
demonstrate the flexibility that all Members need to show if the negotiations are to be concluded by 
MC9.  Japan has also been engaging construc tively on other proposals for outcomes at MC9, 
including on areas of sensitivity for it, such as agri culture.  Australia welcomes this demonstration of 
commitment by Japan to moving ahead with negotiations in Geneva. 
141. Australia also welcomes Japan's willingness to explore new pathways to move negotiations 
forward, such as in relation to services.  Bey ond Doha, Japan is playing a prominent role in 
negotiations on expanding the Info rmation Technology Agreement.  Australia looks forward to 
continued Japanese leadership and to working closely with Japan on these and other issues in the lead-
up to MC9. 
142. The Australia-Japan Free Trade Agreement is a key trade policy priority for Australia and 
would deliver significant economic benefits for both c ountries, as well as strengthening our strategic 
relationship.  Australia is committed to concl uding a high-quality agreement with Japan, and is 
pleased that the Japanese Government  has committed to take major st eps to increase its efforts to 
promote high-level free trade agreements with ma jor trading partners, including with Australia.  
Australia looks forward to concluding free trad e agreement negotiations with Japan as soon as 
possible. 
UNITED STATES 
143. 
Japan faced a major, historic challenge immediat ely following its last Trade Policy Review in 
2011 when the Great East Japan Earthquake and tsun ami struck off the coast of northern Japan.  The  WT/TPR/M/276 
 Page 19 
 
 
  ensuing tragedy created lasting impacts for Japan's  economy.  In the immediate aftermath of the 
disaster, the United States Government mobilized all available resources to come to the aid of our friends in Japan as countless Americans offe red their support and their prayers.   
144. Despite this enormous challenge, Japan has move d forward with its recovery and continues to 
be a key player in the international trading system and an important partner of the United States.  In 
the Asia-Pacific region, the foundations of an am bitious trade liberalization agenda within APEC 
made substantial progress while Japan served as hos t of APEC in 2010, working to further update 
APEC as an institution and to advance our mutu al goals of broadening trade and investment 
opportunities in the Asia-Pacific.  Japan has continue d to be an important proponent of driving this 
agenda forward. 
145. Within the WTO, the United States has valued our  close work with the Government of Japan 
and our WTO partners to strengthen and to bui ld upon the WTO's rules-based and cooperative 
foundation. We commend Japan's long-time support for the non-discriminatory and rules-based multilateral trading system embodied by the WTO.  We also note Japan's steadfast commitment to ensuring that the important progress made in r ecent decades, in opening markets around the world, 
does not suffer a setback as a result of the unilate ral introduction of new protection measures within 
the global trading system. 
146. Looking ahead, the United States welcomes the oppo rtunity to work with Japan and nineteen 
other partners on negotiations for a new agreement on international trade in services.  We believe this 
agreement will be instrumental in promoting ser vices trade and economic development now and into 
the future.  We also appreciate the strong work ing relationship between our teams on the ITA 
expansion initiative, particularly  as negotiations intensify.  We  look forward to continuing our 
cooperation in the coming months as we work to push  an agreement across the finish line this year. 
147. In the two years since the last Trade Polic y Review, Japan has continued to bring new 
Economic Partnership Agreements into force, most  recently with India and Peru.  However, as the 
Secretariat highlighted, Japan will only liberalize 59.6%  of its agricultural tariff lines as part of its 
new agreement with India, and only 61.6% of agricu ltural tariff lines as part of its agreement with 
Peru.  When looking at these two FTAs, together with  Japan's other FTAs, it becomes apparent that as 
a global leader with important responsibilities within the world trading system, it remains incumbent upon Japan to do more to set a higher standard of ta riff elimination in future free trade agreements. 
148. Prime Minister Abe, in a speech to the Japanese Diet just last month, said that the "greatest 
issue…for Japan is the revival of the economy."  We are hopeful that the new Abe Government will 
pursue a trade policy that incorporates the high sta ndards necessary to promote mutually beneficial 
economic expansion.   
149. In this regard, should Japan be ready to pursue this path through participation in the Trans 
Pacific Partnership negotiations, it would be an impor tant step that could substantially contribute to 
meeting Japan's goal for economic growth.  This is an important decision for Japan to make, and it is 
a decision that only Japan can make.   
150. As the new Abe Government further develops its  policies and priorities, we are hopeful that 
Japan will undertake ambitious domestic regulatory re form and other structural measures to stimulate 
competition and new economic opportunities.  In the ar ea of agriculture, Japan's high tariffs and other 
barriers to trade in this sector remain a major impediment.  This is a sector where discussions of reform continue within Japan.  Renewable energy is also an area where we hope to see increased 
market access.  And although Japan's industrial tari ffs are generally low, significant non-tariff barriers 
remain.  As a result, the United States continues to look to Japan to take new, bold steps to increase 
transparency, to reduce un necessary regulation, and to remove ot her non-tariff barriers to trade.   WT/TPR/M/276 
Page 20  
 
  151. From this perspective, one key priority that  the United States continues to urge Japan to 
address is to ensure a level playing field between Ja pan Post and the private sector in the insurance, 
banking, and express delivery sectors.  Another prio rity area is for Japan to ensure that its SPS 
measures are based on science and brought into consis tency with international standards.  The United 
States also urges Japan, among other steps, to remove non-tariff barriers that impede foreign 
automotive manufacturers from competing on a level playing field with their Japanese competitors; to 
take steps to ensure Japan's information tec hnologies and communications market is open and 
promotes fair competition; to ensure transparent and fair opportunities for foreign companies to 
compete for government procurement contracts; and to ensure equivalent access for foreign 
companies to qualify for government-funded fiscal and s ubsidy programs offered in specific sectors.   
152. In closing, the United States appreciates the step s taken by Japan to promote the expansion of 
global trade, and its commitment to the multilatera l trading system.  The United States values our 
close work with the Government of Japan, and looks  forward to working with the new government to 
continue these efforts to make substantia l progress on our mutual areas of concern.   
HONG KONG, CHINA 
153. Japan has been one of our top three trading partners for decades.  Both merchandise and 
services trade between Hong Kong, China and Japan have grown steadily over the last few years.  In 2012, Japan was our third largest trading partner,  with total merchandise trade between the two 
economies exceeded US$58 billion.  Japan is also one of our major sources of inward direct 
investment.  We look forward to fostering even closer economic and trade cooperation with Japan, especially in expanding services trade and promoting bilateral investments. 
154. We are pleased that Japan has been making stead y progress in its recovery after the traumatic 
Great East Japan Earthquake in Ma rch 2011.  We will continue to support Japan in its recovery and 
rebuilding efforts.   
Tariffs 
155. Turning to some specific aspect s of Japan's trade policy, we appreciate that Japan has bound 
98.3% of its total tariff lines.  We are pleased that the difference between its average bound MFN 
tariff (6.4%) and average applied MFN tariff (6.3%)  in 2012 was negligible, providing a high degree 
of predictability to Japan's tariff regime.  We are also glad that Japan reduced the applied MFN rates 
of a number of products to zero in 2012.  However,  there are non-ad valorem duties in 6.6% of its 
tariff lines, and tariff peaks as high as 295% applied to  certain leather, rubber, footwear and travel 
goods.  We would encourage Japan to work on these areas. 
Agriculture 
156. We note that Japan's agricultural sector remain s highly protected and continues to receive 
substantial government support.  Relevant measu res include a higher average MFN applied rate 
compared with other sectors, tariff quotas, income  support, price support a nd production controls.  
From a systemic point of view, we consider that  these tariff and non-tariff barriers not only restrict 
trade and foreign investment, but also impose high costs on Japanese consumers.  While we 
understand the specificities and sensitivities of Japan 's agricultural sector, we encourage Japan to 
move towards further liberalisation by review ing the existing tariff and non-tariff measures. 
Services 
157. On trade in services, we note with keen interest  the development of the privatisation of Japan 
Post Holdings which will have significant beari ng on the competitive environment of the financial  WT/TPR/M/276 
 Page 21 
 
 
  services market in Japan.  We welcome the relaxa tion of the regulatory conditions for the sale of 
insurance by foreign insurance comp anies during when they transform br anches into subsidiaries.  We 
however are aware that foreign ownership remains marginal in Japan's banking services sector.  We 
also see room for greater foreign investment particip ation in other strategic services sectors in Japan, 
including telecommunication services. 
158. As for the WTO services negotiations, we appreci ate Japan's active participation on both the 
market access and rule-making front s, and its leading role in seeking ambitious outcomes in maritime 
transport services which is a key component to the gl obal supply chain.  We look forward to continual 
and closer cooperation with Japan in achieving  our common goal to pursue continuous and 
progressive liberalization in trade in services. 
Trade Facilitation 
159. Regarding trade facilitation, we are pleased to note Japan's continued efforts in improving its 
customs clearance procedures.  Fo r instance, the amendment to its  Authorized Economic Operator 
(AEO) programme in 2011 allows import cargo decl ared by AEO customs brokers or produced by 
AEO manufacturers to be released before the cust oms duty declaration is filed.  Moreover, further 
facilitation is given to supply chain business.  At th e request of importers and other concerned parties, 
Japan also provides written advance rulings of cust oms duty.  Since February 2010, the electronic 
application formalities among various agencies have  been unified through the completion of the 
common portal.  Such efforts have resulted in more efficient customs clearance and benefited the trade. 
160. On the multilateral front, we appreciate Japan's very active and construc tive participation in 
the WTO Trade Facilitation negotiations.  We look fo rward to working closely with Japan towards an 
early conclusion of the negotiations. 
Aid for Trade 
161. May I also here appreciate the significan t role Japan plays in Aid for Trade. 
Information Technology Agreement 
162. Both Hong Kong, China and Japan are Member s of the Information Technology Agreement 
(ITA) and offer duty free access to a wide range of IT products.  Currently, both of us are working 
closely together with other WTO Members towards expanding the product covera ge of the ITA.  We 
are encouraged by the positive progress made in the discussion.  We look forward to continued 
cooperation with Japan with a view to bringing the discussion to a fruitful conclusion by this year.   
Contingency Trade Measures 
163. We appreciate Japan's good compliance record  in fulfilling notification obligations on 
contingency measures and that Japan exercises great caution in using such measures.  On the Rules 
negotiations, Japan and Hong Kong, China work cl osely together in seeking practical and pro-
liberalisation improvements to the WTO disciplines so  as to prevent abusive use of contingency trade 
measures.  Hong Kong, China values its long-term pa rtnership with Japan, and also looks forward to 
continued cooperation with Japan and other Members with a view to bringing the Rules negotiations 
to a satisfactory conclusion when the time is ripe. WT/TPR/M/276 
Page 22  
 
  KOREA 
164. I am pleased to note that the bilateral econom ic relations between Korea and Japan remain 
strong and vibrant.  Last year, Japan was the 2nd largest trading partner for Korea, while Korea was 
the 4th top trading partner for Japan with bila teral trade figures reaching US$103.2 billion.   
165. It is yet another demonstrated reflection of our strong relationship that Japan has been the 
second largest investor in Korea. We thus welcome the recent upward trend in terms of FDI in-flows 
from Japan.  
166. On the other hand, as a country that registers a large scale of trade deficit with Japan over the 
past decades, Korea remains keen in  finding ways to address this pe rsistent reality. The reasons for 
this chronic trade deficit could be diverse and thus  a single 'magic' solution would not be possible.  
We see that the situation could be alleviated to a certain degree, if the issues surrounding Non-Tariff 
Measures (NTM) could be addressed in a speedy and systemic manner.  
167. Turning to Japan's overall economic performa nce during the period under review, we would 
like to note that Japan's GDP growth rebounded in 2 012 thanks to its stimulus package. We also wish 
to echo that, in order to get the world economy b ack on right track, major economies, such as Japan, 
should regain their full strength and vitality as soon as possible.   
168. Now, I wish to refer to the Secretariat report that and as Ambassador Fried indicated Japan's 
expansionary macroeconomic polic ies do not address its long-standing structural problems such as 
those related to high public debt and the rapidly agin g population. We share the view that it would be 
advisable for Japan to carry out far-reaching stru ctural reforms based on trade liberalization and 
stimulus to competition. Furthermore, we also share the view that, as pointed out in major 
international fora including G-20, currencies shoul d not be a tool for competitive devaluation.  
169. We have submitted advance writte n questions to Japan, including those related to specific 
restrictions on inward FDI in such sectors as te lecommunications and broadcasting, policies on 
government procurement, trade in services, compe tition policies applied to the telecommunications 
sector, renewable energy, and copyrights.  Our qu estions also touch upon some TBT-related issues, 
including Japan's amended safety and environmental regulations for road vehicles.  We thank the 
Japanese delegation for providing answers to tho se questions, which we will review carefully.  
Overall we look forward to the strengthening of cooper ation with Japan on the bilateral, regional, and 
multilateral fronts, particularly as we look ahead to  ensuring both the success of the MC9 in Bali this 
year and beyond. 
CHINA 
170. During the review period, the Japanese economy contracted in 2011 and its trade account 
recorded a deficit for the first ti me since 1980. Thanks to the surg e of domestic demands stimulated 
by its consumption promoting measures, tax redu ction and post-disaster reconstruction, Japan's 
economy has shown signs of recovery and a rebound in GDP growth of 2.4% in 2012 is expected. 
That being said, the recovery is still fragile and the Japanese economy faces persistent structural 
challenges. As indicated in the Secretariat Report,  Japan should speed up its structural reform to 
overcome these challenges. China w ould be interested to know what policies Japan would adopt in the 
future to push forward its structural reform.     
171. China shares similar concerns with the Secretariat report on the following:  
 Investment regime. The Secretariat's report poi nted out that Japan's inward FDI remains 
 substantially lower than its outward FDI a nd falls far behind that  of other developed  WT/TPR/M/276 
 Page 23 
 
 
   economies. High operating costs, high corporation tax, difficulties in obtaining visas, together 
 with some regulatory barriers hinder foreign investors from investing in Japan. China noted 
 that Japan has adopted some facilitative meas ures under its "Program for Promoting Japan as 
 an Asian Business Center and Direct Investme nt into Japan", and would encourage Japan to 
 take more proactive actions to f acilitate foreign investment in Japan. 
 Technical regulations and SPS measures. As i ndicated in the Secretariat Report, no cost-
 benefit analyses on the technical regulation were made available to the public. Many 
 regulatory and quarantine measures increase the costs of enterprises, undermine  competitiveness of their products, hence create trade barriers for imports. China hopes that  Japan will review the rationality of such regulatory measures on sound scientific basis. 
 Subsidies to agricultural products. It is known in  this house that Japan grants high subsidies to 
 its agricultural products and imposes tariff quotas on quite a number of agricultural products 
 such as rice. Transparency is  also a big issue for Members. For example, for many years 
 relevant information on quota allocation figures remain to be provided. China would like to 
 encourage Japan to correct the trade-distortion in agriculture and make efforts in providing 
 more transparency. 
172. Finally, let me briefly touch upon Japan's ro le in the multilateral trading system. Japan has 
been an active participant in the multilateral trad ing system. However, some of its long-standing 
policies such as high subsidies on agricultural products , tariff quotas, tariff peaks are of great concern 
to other Members, particularly the developing ones. Lack of agreement on the resolution of such central issues is also partially responsible for th e lack of progress in the Doha Round. It is our hope, 
and also the hope of many other Members, that Jap an can seriously review its position on those issues 
and continue to play a positive role in materializ ing the early harvest and eventually a full conclusion 
of the Doha Round. 
CANADA 
173. Allow me to begin by saying a few words about  Canada and Japan's b ilateral relationship, 
before moving on to the broader tr ade and economic environment.  
174. Canada and Japan have built a strong and d ynamic partnership based on shared values, 
including mutual recognition of the importance of  open and fair trade to economic growth and 
prosperity. This understanding underscores our importa nt bilateral relationship, and extends to the 
WTO.  
175. From a bilateral perspective, our two count ries have long been important political and 
economic partners, with significant two-way trade in goods and services, investment, and flows of 
technology, knowledge, and people. For example, Ja pan was by far the largest source of investment 
inflows from Asia to Canada at the end of 2011, with a stock of investment valued at nearly 
US$12.8 billion. In 2012, Japan was Canada's fourth  largest export destination and import source, 
with US$10.4 billion in merchandise expor ts and US$15 billion in imports.  
176. Our mutually beneficial trading relationship extends to the WTO where Canada and Japan 
exercise leadership by engaging in new approach es to move negotiations forward where progress is 
possible.  In particular, Canada would like to th ank Japan for its efforts in moving forward services 
discussions, its constructive role in trade facilitati on negotiations, and for its efforts in raising the 
profile of discussions to expand the International Technology Agreement. WT/TPR/M/276 
Page 24  
 
  177. Canada also recognizes Japan's contribution in  bringing to conclusion the negotiations to 
revise the Agreement on Government Procurement. We  hope that Japan will continue its support with 
early ratification of the Protocol. 
178. The Canada-Japan relationship is poised to take its next step following the launch of 
negotiations toward a comprehensive Economic Pa rtnership Agreement (EPA) on 25 March 2012. An 
ambitious bilateral trade agreement would help unl ock the full potential of our economic relationship, 
leading to increased competition, innovation, and boosting GDP growth by an estimated 
US$3.8 billion in Canada and US$4.4 billion in Japan.  
179. We view these negotiations as a complement to our mutual commitment to the multilateral 
trading system, as well as our shared goals of m oving towards a Free Trade Area of the Asia-Pacific 
(FTAAP).  Canada is also working towards this goal as an ambitious member of the Trans-Pacific 
Partnership (TPP) negotiations, and,  in this regard, we welcome Japan's interest in the TPP.  
180. Deepening the Canada-Japan relationship is well timed, particularly given the many 
challenges Japan has faced during the trade policy re view period.  Canada joins other Members in 
expressing our deep condolences over the devasta tion caused by the earthquake and subsequent 
tsunami in March 2011.  In addition to the tragic loss of human life, businesses and households were 
faced with enormous challenges, such as disruptions to supply-chains and reductions in electricity, 
and Japan should be commended on its decisive ac tions which helped limit the economic effects of 
these shocks.  
181. Beyond the short term recovery, Japan c ontinues to face a number of significant and 
interrelated challenges in the medium to long term.  On the fiscal side, reducing the public debt 
burden remains a top priority, and the Japanese  government should be commended on its planned 
consumption tax increase as a positive step.  Howeve r, as noted in the Secretariat report, further 
consolidation is necessary to achieve the Governme nt's plan of putting the public-debt-to-GDP ratio 
firmly on a downward path.  On the monetary side, the Japanese government should be commended 
for renewing its strong commitment to fighting deflati on.  However, structural reforms will also be 
needed to defeat deflation, address an aging population, and achieve sustainable growth.   
182. Canada believes that reforms to Japan's trad e policy regime can help address structural 
challenges, such as low labour productivity, by impr oving competition, particularly in the services 
and agricultural sectors.   
183. Regarding agriculture, Japan is Canada's se cond largest export market for agricultural 
products, and Canada has been, and continues to be , a consistent supplier of high-quality agriculture 
and agri-food products to Japanese suppliers, proces sors and consumers.  Ca nada looks forward to 
agriculture playing a key role in the Canada-Jap an Economic Partnership Agreement negotiations.  
184. While we have had some bilateral trade issu es, Canada welcomes Japan's revision of its 
import requirements for beef which came into effect on 1 February 2013. These changes expand 
access to the Japanese market for Ca nadian beef derived from animals under the age of 21 months to 
animals under the age of 30 months. Canada looks fo rward, in due course, to further science-based 
discussions with Japan towards full b eef access.  Canada also continu es to work closely with Japanese 
officials to resolve other technical issues that arise fro m time to time in our bilateral trade relationship.  
185. Regarding services, this Trade Policy Review period has seen changes come into force for 
Japan Post, with new legislation on the revised Post al Service Privatization Act, passed by the Diet in 
April 2012. The newly passed legislation puts at risk the important progress made in recent years 
towards completing the privatization of Japan Post and establishing a completely level playing field in 
the Japanese market. It is Canada's hope that the im plementation of this reform to the regulatory and  WT/TPR/M/276 
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  legislative regime governing Japan Post will ensure a level playing field for private service providers 
in the Japanese insurance sector. Canada would be in terested to hear from Japan any clarification on 
the Government's implementation plan for the revi sed Postal Service Privatization Act, including 
opportunities for further consultation with private service providers. 
186. With respect to timber, Canada is concerned about the national content requirements applied 
to government procurement regarding wood frame buildings. Although Japan maintains that its law 
promoting of the use of wood in the construction of public buildings makes no distinction between 
domestic and foreign suppliers, this does not appear to be the case in practice, particularly at local 
government level. 
187. Canada has submitted written questions that refl ect our concerns regarding a number of trade-
policy related measures that may impede market access or otherwise constrain mutually beneficial 
growth in trade and investment between our two countries.  We look forward to Japan's responses, 
and more generally to a constructive exchange of views on all aspects of Japan's trade policy, and to 
Japan's responses. 
BRAZIL 
188. After a significant contraction of its GDP in the wake of 2008 global crisis, Japan's economy 
entered a period of recovery as a result of both hi gher exports and a stimulus package designed to 
expand domestic demand.  
189. And then came the natural catastrophe of March 2011. 
190. Beyond the tragic toll in human lives, beyond the huge negative impact on the country's infra-
structure, the Great East Japan Earthquake disrupt ed entire supply chains and halted production across 
the country, in particular in the car and electronic se ctors. This has resulted in a sharp drop in exports 
and in the first trade deficits since 1980. The recons truction costs, the effects of which will be felt 
until 2016, have deepened the fiscal deficit, causing gross government debt to rise to more than twice 
the value of GDP, in 2011. 
191. Against this backdrop of hardship, actions taken by the Japanese Government merit our 
attention, in particular the recognition of the need  for structural reform as a means to boost recovery 
and to increase overall productivity in the econom y. Brazil commends Japan for these actions.  
192. However, such a strategy is more likely to be  successful if it includes all sectors in the 
economy, including agriculture. Trade in agriculture is highly distorted by trade barriers and domestic 
support in Japan.  Products such as rice, wheat, and barley remain heavily protected. Non ad-valorem 
duties, which account for 6.6% of Japan's tariff lines, are used to hide tariff peaks in a sector that is 
responsible for no more than 1% of the GDP. 
193. In the last TPR, held in 2011, the delegation of Japan mentioned that domestic agricultural 
production had decreased by 20% in the previous two decades, partly due to the aging of its working 
force. The Japanese delegation mentioned then, tw o years ago, that a key component of the 
"21st-century opening of Japan" would be the reviva l of its agriculture through "drastic domestic 
measures" to improve competitiveness.  
194. In this regard, we praise efforts by Japan ese authorities to move away from price support 
towards income support. 
195. On sanitary and phytosanitary issues, my dele gation reiterates the importance of technical 
evidence as the basis for the appli cation of any restrictive measures.  We regret that some Brazilian WT/TPR/M/276 
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  exports of agriculture goods are still subjected in Japan to unjustified SPS barriers, and we urge Japan 
to fully comply with international standards and guidelines established by the World Organization for 
Animal Health, in particular regard ing imports of beef. Furthermore, we renew our interest in working 
with Japan, bilaterally and multilaterally, on the principle of regionalization for SPS measures. 
196. Japan is one of Brazil's major trading partners , currently our second largest partner in Asia 
and the fifth largest in the world. Bilateral trade flows have significantly expanded in the last few 
years. From 2008 to 2012, they have increased by  around 21%, with a relatively balanced pattern 
between exports and imports. Brazil's exports are heavily concentrated on agricultural and mineral 
raw materials, which account for 75% of the tota l, whereas nearly all imports from Japan, around 
99%, are of manufactured goods. 
197. Japan is also an important investor in Brazil' s economy, being the fourth largest source of FDI 
inflows. In 2011 alone, the Japanese private sector  invested over US$7.5 billion in a vast array of 
sectors, from automotive and mining to electronics and agriculture.  We hope to continue receiving such a robust flow of Japanese investments, mo stly in high-tech industries, shipbuilding and 
infrastructure.  
198. Beyond trade and investments, the human di mension is a distinctive feature of the 
relationship between Japan and Brazil. Brazilians  of Japanese descent amount to one and a half 
million.  
199. Our countries have also forged a close partners hip in cooperation projects. If today the central 
area in Brazil called "cerrado" is a world-wide comp etitive producer of different crops, this is due in 
part to a program of soil fertilization carried out in partnership with Japan that dates back to 
mid-seventies. Brazil and Japan are also cooperating in joint projects of capacity building and 
technical assistance for Least Developed Countries in farming in the savannahs in Africa, a program 
that is in place since 2009. 
CHILE 
200. Japan is Chile's third largest trading partner,  with trade totalling close to US$11 billion in 
2012. 
201. Bilaterally, Chile and Japan signed a Strategi c Economic Partnership Agreement in 2007, 
which covers a wide variety of areas of bilateral trade, such as two way investment, services and trade 
in goods. 
202. In terms of results, since the agreement's entr y into force bilateral trade has grown at an 
average annual rate of 11%, which, for us, is a resounding success. In particular, the elimination of 
tariffs on almost 82% of total exports from Chile to  Japan is a great achievement. Moreover, over the 
past three years Japan has been th e primary foreign investor in Chile, accounting for 31% of the total 
amount invested during the period 2010-2012. Most of these resources are concentrated in the mining sector. 
203. Turning to regional trade agreements, Chile we lcomes Japan's participation as an "observer" 
in the Pacific Alliance process. Its presence will undoubtedly strengthen the channels of commercial 
interaction between the member countries of the Alliance and Japan. 
204. Furthermore, we appreciate Japan's interest in  the Trans Pacific Partnership (TPP) process, 
and hope that Japan will decide to participat e in the process following its internal debate.  WT/TPR/M/276 
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  205. Likewise, we welcome Japan's entry into the Regional Comprehensive Economic Partnership, 
which aims to create one of the largest free trade zones in the world and is certainly of great interest to 
all of the countries along the Pacific. 
206. In the framework of the multilateral trading system, Chile and Japan hold similar views on 
various issues, for example in the Friends of Anti Dumping Negotiations (FANs) group and in the 
Services Council, and on transparency relate d matters in the Committee on Regional Trade 
Agreements. 
207. As regards developments in Japan's trade po licy since the country's previous Trade Policy 
Review, we would highlight its efforts in the area of agriculture. However, a great deal clearly remains to be done to advance the liberalization of agricultural trade, especia lly in terms of tariffs, 
output controls and subsidies. 
208. We commend the way in which Japan has faced the aftermath of the 2011 earthquake and 
tsunami, which are major challenges for a c ountry, as we know from personal experience. 
MEXICO 
209. The 11th TPR of Japan is taking place not onl y in an uncertain international economic 
environment, but also in the wake of the greatest disaster of the post war period. I am referring to the 
devastating earthquakes and tsunami that not only claimed thousands of Japanese lives but also had 
serious repercussions on Japan's industry, infrastru cture and public finances. Mexico reiterates its 
solidarity with Japan and is confident that the country 's recovery will serve, as it has in the past, as an 
example of strength. 
210. We are pleased to see the progress that Japan has made over the p ast two years, in areas such 
as: 
 The Authorized Economic Operator (AEO) programme. While no significant changes have 
 been made to customs clearance procedures and valuation, as of Octobe r 2011, importers with 
 a good compliance record have been able to have their goods released before filing the 
 customs declaration. 
 Intellectual property (IP). Amendments to various laws, such as the laws  on patents, industrial 
 designs and copyright, are noteworthy, as is th e establishment of the National IP Strategic 
 Programme in 2011, which seeks to adapt to the rapid development of digital technology. 
 Financial services. The revised Postal Service Privatization Act, passed in April 2012, which 
 stipulates that the Japan Post Group will have  to provide universal postal services as well as 
 savings and insurance services all over Japan, is also noteworthy. 
 Competition policy. The draft law submitted to the Diet to amend the Antimonopoly Act 
 (AMA) is another area worthy of mention. This is an excellent opportunity to reduce the  spectrum of exemptions. 
211. In spite of these significant advances, it is impor tant to highlight a few challenges that Japan 
should address over the next few years: 
212. The agricultural sector remains one of the mo st protected. According to OECD estimates, 
"total support" during the peri od 2002-2008 accounted for 1.1% of  GDP and was provided mainly 
through price support. Furthermore, tariffs remain ve ry high and are almost five times higher than in WT/TPR/M/276 
Page 28  
 
  the industrial sector. Japan reportedly ranks 94th among countries with the highest average applied 
tariff in this sector. 
213. The fact that labour productivity has grown at an annual rate of just 1.5% over the past decade 
gives cause for concern. To resolve this issue, we consider it most important that Japan should focus 
on four main points: 
 Reducing the exemptions in competition legislati on, such as those relating to the maritime 
 sector. 
 Speeding up the implementation of regulatory reforms by, for example, removing complex 
 administrative burdens for opening new businesses in Japan. 
 Promoting international competition in key services such as retail trading, energy, 
 transportation and business services. 
 Establishing policies aimed at halting the decline of the labour force, which is reduced by 1% 
 every year, mainly due to the aging of the Japanese population. Increasing the participation of 
 women in the labour market would be an important step requiring fundamental changes in 
 labour practices. It would also be helpful to open the market to specialized foreign workers. 
214. There are also some macroeconomic  problems that are directly or indirectly affecting Japan's 
competitiveness. 
215. Japan's public debt, which is more than twi ce its GDP (218% in 2012) and the highest among 
OECD countries, is expected to rise even more ow ing to a budget deficit of close to 9% of GDP. 
Although this has been manageable pr imarily due to low interest rates,  studies show that if Japan's 
interest rate rose by one percentage point, its debt  would increase by ¥1 trillion, which is close to 
0.2% of its GDP. 
216. In order to remedy this problem, Japan will have  to implement an aggressive fiscal reform to 
maintain confidence on the financial markets and t hus the stability of its interest rate, through a 
credible fiscal consolidation plan that includes both cutbacks in expenditures and increased revenues. 
217. The yen has recently been the subject of consider able debate because of its rapid depreciation. 
Yesterday the exchange rate was ¥93.5 to the dollar. In October 2012, it was ¥76 to the dollar, and in 
October 2008, it stood at ¥110. There are various causes of these fluctuations, ranging from the yen's conversion into a "carry on currency" to the recen t monetary policy aimed at escaping the Keynesian 
liquidity trap and thus deflation. However, the ma in difficulty seems to be, at the WTO, to establish 
trade and exchange rate linkages.  In October 2012, Japan reportedl y applied a countervailing tariff of 
30% compared to 2008. Today we would apply to Ja pan a 20% tariff. This weekend the G20 issued a 
declaration undertaking to refrain from competitive de valuations. Mexico sees this as fundamental 
and is against this practice, which was disastrous  in the 1930s, but linking it with trade policy would 
only make matters worse, as shown by the evolution of the yen.  
NORWAY 
218. Japan is an important and stable trading part ner for Norway, and one of the most important 
markets for Norwegian fish and seafood. Japan is also  a very important market for maritime services 
as well as Norway's tourism sector.  
219. Maritime transportation is an important facilitato r of world trade. Japan controls the world's 
second largest merchant fleet, while Norway controls  the 5th largest fleet. Norway and Japan have a  WT/TPR/M/276 
 Page 29 
 
 
  shared interest in securing a level playing field in  the global market for maritime services. Better 
access to and supply of maritime transport services on open and equal market conditions is beneficial 
to all WTO-members and crucial to economic development.  
220. Norway believes that improved offers and bi nding commitments in the maritime services 
sector are important for securing fair competition and stimulating economic growth. We appreciate 
the long-standing and close cooperation with Japan in  this area within the framework of the WTO, 
and the constructive contribution from Japa n as chair of the Maritime Friends Group. 
221. We are encouraged by the statement made in Paragraph 15 of the Report by the Government 
of Japan that "Japan welcomes further liberaliza tion of trade in services". We look forward to 
continue working with Japan and other WTO member s in pursuing further liberalization of trade in 
services.  
222. While bilateral trade with Japan has been re latively stable over the last few years, the 
development of trade has not been as positive as with other major and emerging economies. While 
this somewhat disappointing development may be due to a number of factors, allow me to point out that exporters have indicated concerns related to  some of the challenges they are facing in the 
Japanese market.  
223. For instance, Norwegian exporters  of maritime equipment have indicated that shipyards and 
ship owners have a preference for Japanese products when contracting and building ships. Let me take 
this opportunity to encourage the Government of Ja pan to reconsider or dismantle any measures that 
may in effect hinder or discourage shipyards and ship owners from buying foreign maritime equipment.  
224. In general, Norway would like to encourag e Japan to continue opening its market to 
international competition both by reducing tariffs  and by removing non-tariff barriers to trade. 
Norway welcomes the improvements in harmonization of Japanese Industrial Standards to international standards, and also the progress ma de in the area of test-procedures for medical 
equipment. We would like to stress the importance of further harmonization of Japanese regulations, 
standards and procedures with international standards.  
225. Norway welcomes new measures in troduced by the Government of Japan to stimulate the 
development of alternative energy sources. In this context, we believe that Japan could benefit greatly 
from further opening its energy market to foreign companies.  
226. Norway and Japan work closely together on mo st issues discussed in this house, including 
issues on the Doha Development Agenda. Both coun tries have a vulnerable agricultural sector, and 
Norway appreciates the close cooperation with Japan in the G10 on our shared interest in 
safeguarding non-trade-concerns. We are looking forwar d to continue working with Japan in the years 
to come, and appreciate Japans strong commi tment to the multilateral trading system. 
NEW ZEALAND 
227. Japan is one of New Zealand's most important  trading partners, and as such New Zealand 
takes a close interest in its trade policy and reform agenda. We welcome the fact that Japan has played 
an active role in WTO processes and is a strong proponent of the multilateral trading system. We 
encourage Japan's efforts to work towards furt her progress on and an eventual successful conclusion 
of the Doha Round negotiations.  
228. Since the previous Trade Policy Review in 2011, Japan has suffered the impact of the 
March 2011 Great East Japan earthquake and tsunami . New Zealand, which had experienced its own WT/TPR/M/276 
Page 30  
 
  significant earthquake a month prior to this event,  well understands the harsh effects of unforeseen 
natural disasters, including their massive impacts on an economy. Following this traumatic event, 
Japan's economy contracted and it recorded its firs t trade deficit in over 30 years. Despite these 
setbacks Japan has not taken any si gnificant protectionist measures and continues to look for new 
ways to strengthen and liberalise its economy.  New Zealand congratulates Japan on the approach it 
has taken here.  
229. Alongside its commitment to the multilateral syst em, Japan has pursued free trade agreements 
with some of its trading partners. New Zealand has had concerns in the past at some aspects of Japan's 
FTAs, in particular the wide exclusions on agricultu ral products, some of whic h have been referred to 
by others today.  We have therefore been en couraged by the Japanese government's interest in 
studying how best to reform certain sectors includi ng the agricultural sector. We encourage Japan to 
reform protected sectors of its economy as a mean s to participate more widely in high-quality, 
comprehensive free trade agreements. In this vein , New Zealand welcomes the interest shown by the 
Japanese government in joining the Trans-Pacific Partnership negotiations at the same time it 
strengthens the international comp etitiveness of its agricultural sector. 
230. Like many other WTO members, we see potential for significant further reform in the 
agricultural and fisheries sectors where subsidies and tariffs continue to be at high levels despite 
Japan's goal of reducing trade barriers: 
231. Changes to agricultural policy would provide an  opportunity to increase the competitiveness 
of the sector, reduce the fiscal burden of agricultura l support, raise incomes in the rural sector and 
develop a stronger agricultural export sector – in short to turn agriculture into a growth sector that will 
contribute to the wider economy.   A strong domestic production base can also enhance food security, 
alongside other measures such as stronger food trade rela tionships with partners such as New Zealand.   
There are clearly a number of significant issues in ag riculture that remain to be addressed.  We do 
however welcome that Japan has recently published reductions in the level of agricultural subsidies 
overall and we would encourage Japan to pursu e further steps in this direction.   
232. Similarly, reform of the substantial support pr ovided to the fisheries sector would generate 
benefits for the sector and wider economy.  In par ticular, reducing the level of fisheries subsidies 
would contribute to the recovery of Japans fish stoc ks, 40% of which are at low levels, and respond to 
the Rio +20 calls for fisheries subsidy reform. 
233. We welcome the contribution Japan has made to  the multilateral trading system to date and 
encourage the swift implementation of further lib eralisation policies. Although this will inevitably 
require short-term adjustments, the longer term  prospects of strengthening Japan's economy by 
becoming a more competitive trade and investment partner should not be overlooked.  
COSTA RICA 
234. Costa Rica is participating in this TPR of Japan  with great interest. Japan is an important 
trading partner for us in Asia. It is our country's  second largest source of imports from that region and 
the fifth largest consumer of our exports. 
235. My delegation also wishes to acknowledge the impor tant role played by Japan at the WTO, its 
firm support for the multilateral trading system, its  commitment to ensuring the successful conclusion 
of the Doha Round negotiations and its valuable contribution to the WTO's Aid for Trade programme. 
Costa Rica and Japan have a common interest in se eking an early harvest on trade facilitation, an 
issue on which we have worked very closely as memb ers of the Colorado Group. There has also been 
joint work in services and in the expansion of the Information Technology Agreement. We have  WT/TPR/M/276 
 Page 31 
 
 
  common interests in other areas as well, such as stre ngthening the WTO rules, especially in the area 
of anti dumping, reviewing the Dispute Settlement Understanding and examining global value chains. 
236. Both the Secretariat Report and the policy presentation made by the Japanese Government 
refer to the Japanese economy's recovery in 2012, driven by domestic demand and the expansionary 
fiscal policy aimed at rebuilding the country foll owing the earthquake in March 2011. However, the 
Secretariat Report emphasizes that while these more expansionary economic policies have stimulated 
the economy, they do not resolve Japan's structur al problems, brought on, inter alia, by its aging 
population or persistent deflation, which have led to slow economic gr owth. We therefore think that it 
would be very useful during this review to lear n about the Japanese Government's future plans to 
address these structural problems, especially measures aimed at liberalizing trade, boosting 
competition and attracting more foreign direct inv estment, as mentioned in Japan's opening statement. 
237. As others have pointed out, over the past fe w days we have learned through the press that 
Japan has introduced monetary policy measures aime d at depreciating the yen as part of a set of 
measures to revitalize its economy and stop deflation. It would also be interesting to learn more from 
Japan about these and other measures. 
238. The high level of protection afforded to the agricultural sector through different measures 
including high tariffs, tariff quotas, domestic s upport policies and non tariff measures, remains 
striking. As a result, according to OECD data, total support for agriculture is estimated to be 1.1% of 
GDP, and consumer prices are still well above the average in other developed countries. Moreover, 
reports show that Japan has continued to move away from price support toward income support. We 
would like to know what other steps Japan is taking towards market oriented agricultural trade and to 
increase the competitiveness and productivity of this sector in the long term. 
INDIA 
239. The period under review has been a difficult one for Japan. Just as it was recovering from the 
aftermath of the global economic crisis of 2008, the Japanese economy and exports were badly hit 
once again by the massive earthquake and tsun ami of 2011, resulting in a sharp decline in 
consumption and production caused by supply chain disruptions and shutting down of nuclear power 
plants.  
240. It is encouraging to note that the Japanese economy  is again on its path to recovery, driven by 
reconstruction, consumer spending and inventory building. However, the recovery remains fragile in 
view of the Japanese economy's linkages with the rest  of the world through trade and supply chains, 
making it vulnerable to shocks in the global eco nomic environment and performance of its main 
trading partners.  
241. Other challenges to long term growth include high public debt, an expanding fiscal deficit, 
shrinking labour supply due to a rapidly aging population, low investment and productivity. On the external front, Japan must cope with a trade defi cit for the first time in 3 decades, resulting from a 
drop in exports due to the tsunami and an appreci ating Yen, which has eroded the international 
competitiveness of Japanese exports, while imports continue to rise on account of reconstruction 
spending and increased fuel imports. Inward FDI in to Japan has remained much lower than outward 
FDI due to an appreciating exchange rate, hi gh cost of doing business in Japan and regulatory 
barriers. As a friend and partner, India would like to wish Japan success in its endeavours to address 
the various challenges facing its economy. 
242. India and Japan enjoy close and friendly re lations, which saw steady progress during the 
period under review. Our Strategic and Global Pa rtnership, established in 2006, has gained 
momentum through Annual Summits and wide-ra nging cooperation. India and Japan signed a WT/TPR/M/276 
Page 32  
 
  Comprehensive Economic Partnershi p Agreement (CEPA) in February 2011, which has the potential 
of giving a further boost to our bilateral trade which has witnessed significant growth and 
diversification in recent years.  
243. Trade between India and Japan reached US$18.43  billion in 2011-12 reflecting a 34% growth 
from the previous year. Japan is the fourth largest  investor in India with total investments of 
US$13.88 billion since April 2000, accounting for over 7%  of the FDI inflows into India. India is also 
one of the largest recipients of Japanese Overse as Development Assistance (ODA) being used to 
finance several infrastructure projects including the Western Dedicated Freight Corridor and the 
Delhi-Mumbai industrial corridor. There are ne arly a thousand Japanese affiliated companies 
operating in India. 
244. However, a few areas of concern remain. I woul d like to highlight here some of them:   
 Japan's decision to subject shrimp exports fro m India to mandatory testing for residues of 
 ethoxyquin and fixing a maximum residue level (MRL) of 0.01 ppm without a risk  assessment analysis of the tolerance limit for ethoxyquin, has led to a significant drop in 
 India's exports of fish and fish products to Japan. We urge Japan to fix an MRL based on 
 scientific evidence.  
 Further, pharmaceutical exports from India face regulatory barriers in Japan in the form of 
 slow and cumbersome procedures for produc t registration and marketing approvals for 
 generic medicines and active pharmaceuticals ingredients (API), licensing requirements and  need for bioequivalence studies using Japanese subjects. We encourage Japan to simplify its 
 regulatory procedures to facilitate im ports of pharmaceutical products.   
 Japan's restrictions on imports of fruits, lik e grapes and mangoes, from India on grounds of 
 existence of certain pests, despite India's pr esentations of scientific studies to the contrary, 
 have adversely affected India's exports of these products to Japan. A pest risk analysis would 
 be helpful in allaying c oncerns in this regard.  
 The agriculture sector in Japan continues to  receive substantial government support and 
 remains highly protected with an average app lied MFN rate of 17.8% compared to the overall 
 average rate of 6.7%. We would welcome greater openness in agriculture. 
 Though 93% of tariff lines are subject to ad-valorem rates, non-ad valorem rates on the 
 remaining lines conceal significant tariff peaks. A rationalization of Japan's tariff structure  would help in providing greater market access for products from developing country. Further, 
 Japan's extensive use of voluntary standard s, food labeling requirements and SPS measures 
 act as major non-tariff barriers to trade. We encourage Japan to streamline its non-tariff  measures for improving market access.  
 Japanese requirement for a graduate degree as a minimum qualification is acting as a 
 deterrent to the movement of Indian softwa re professionals. Recognition of diplomas from 
 reputed software companies would go a long way in promoting the flow of skilled IT experts 
 from India.  
245. As the world's third largest economy, Japan continues to play an important role in global 
trade. We therefore look towards Japan to play a leadership role in the WTO to ensure an early 
conclusion of the Doha Round.   WT/TPR/M/276 
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  EUROPEAN UNION 
246. Since the last Japan TPR in 2011, the two years that have passed must not make us forget how 
the population has suffered and the admirable effort s and solidarity that the Japanese people have 
demonstrated to cope with the extreme c onditions that affected them in March 2011. 
247. The EU welcomes the Government's prioriti es attached to trade and its willingness to 
contribute, together with the WTO membership, to overcome the DDA impasse. Needless to say, 
Japan is a key trade partner for many of the WT O members and for the EU. Japan is a strategic 
partner for the EU on many issues that include, but are not limited to trade and investment.  
248. This TPR comes at a special moment. Japan and the EU are very close to launching FTA 
negotiations after having carefully examined the possi ble scope for such an agreement. Overall, our 
impression is that there is an untapped trade poten tial between the EU and Japan.  For the moment, 
over the period 2007-2011, EU exports of goods to Japan only increased by a total of 14% while the EU total exports between 2007 and 2011 grew by a tota l of 25%.  Japan used to be EU's third main 
export destination in 2003 and only ranks seventh today.  
249. I would now like to address some economic and trade policy measures which are reflected in 
the EU advanced questions.  
250. Overall, regulatory obstacles to trade in goods , services, investment and public procurement 
remain high. The EU very much appreciated the efforts conducted by the Government Revitalization 
Unit (GRU) and would therefore like to know more about the new structures that will replace it. The 
EU hopes that Japan's commitment to regulatory reform will remain unaltered, and in fact will be reinforced under the new governme nt of Prime Minister Abe. 
251. Regarding investment, the level of inward FDI in  Japan continues to be very low compared to 
other major economies. In its report, Japan mentioned measures to attract FDI. Th e EU is interested to 
know more about which measures may be taken to enc ourage inward FDI.  In this perspective, Japan 
could consider measures such as lifting restrictions in certain sectors or removing regulatory obstacles such as those linked with corporate governance issues. It is also very important that in some sectors 
such as Financial Services, Japan does not discour age Foreign Investment by giving advantages to 
public operators with a dominant position in other sectors (i.e. Japan Post). 
252. Regarding public procurement, we note that despite Japan being a party to the WTO GPA, 
Japan has committed a small share of its procuremen t market, leaving therefore a too narrow market 
open to foreign bidders. The EU welcomes Japan's  commitment to soon implement the revised GPA 
agreed in December 2011. However this would only be  one of the measures the EU would wish Japan 
to take. In particular, there are a number of restrictions that contribute to narrowing possibilities for 
foreign bidders; I may quote those related to proc urement on railway and urban transport operators 
through the "operational safety clause" in the GPA, as well as very high thresholds in public works and administrative hurdles for suppliers. 
253. On trade in goods, Japan's technical requirements in a number of areas diverge from the 
international standards or add specific, cumbersome  and redundant procedures or requests. We would 
therefore encourage Japan to ensure a greater convergence between Japanese Industrial Standards 
(JIS) and international standards.  
254. Lengthy approval procedures are also very much an issue in the area of food regulation, and 
notably food additives where Jap an still needs to accelerate appr oval procedures for these food 
additives that are widely used around the world an d that have been assessed safe by international 
bodies.  WT/TPR/M/276 
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  255. The same is true for pharmaceuticals and medical devices, where approval procedures are 
lengthier and more cumbersome than in other majo r markets. This delays the placement of innovative 
products and state-of-the-art medical technology on the Japanese market, to the detriment of Japanese 
consumers.   
256. Finally, regarding SPS issues we would like to welcome Japan's recent decision to allow the 
import of beef from animals of under 30 months from several of its WTO partners including the 
Netherlands and France in the EU. But let me express my strong hope that this is only a first step and 
that Japan will now soon extend this authorisatio n to other Member States who have applied for 
market access for beef, and who have subm itted the required application questionnaire. 
ARGENTINA 
257. Japan is a developed country and a "successful" Member of the WTO that plays a key role in 
international trade. It has known how to benefit from the policies and rules promoted by this 
Organization, going back to the days of the GATT, in  order to reach the level of development that it 
boasts today. Nonetheless, continued agricultura l protectionism and its position on the commitment 
under the Uruguay Round Agreement on Agriculture to pursue the process of agricultural trade 
liberalization are an obstacle to the multilateral trading system's progress towards that goal. 
258. Indeed, the Japanese agricultural sector is still hi ghly distorted and not very market oriented, 
due to an unusual combination of: (i) extremely high  tariff barriers, a large percentage of which are 
non ad valorem duties; (ii) tariff quotas; (iii) para tariff barriers; (iv) special safeguard measures; 
(v) production restrictions; (vi) domestic support in the form of price and income support; and 
(vii) imports made by public cor porations. We might also add that Japan has historically provided 
substantial domestic support for the fisheries sector, i rrespective of the emergency aid granted to meet 
the needs arising from the tsunami in March 2011. 
259. Allow me to digress. Noticeably, this strong prot ectionist aspect of Japan's trade policies is 
not fully reflected in the Report prepared by the S ecretariat. The Report stresses that there has been 
"little change" in the implementation of these policies since the previous Review in 2011, 
downplaying the fact that the Japanese agricultural sect or has been enjoying an extremely high bound 
level of protection for many years. This is what we  are referring to when we talk about, as we have 
done on other occasions, the "double standard" with respect to the criteria used for evaluating the performance of WTO Members. 
260. It should also be noted that the aforementione d Japanese measures are particularly harmful to 
a country like Argentina, whose export performance , and hence its balance of payments, heavily 
depends on trade in agricultural raw materials and processed foods. 
261. I would like to take this opportunity to re iterate our concern over the difficulties that 
Argentine exporters of beef, citrus fruits and bees face in accessing the Japan ese market. We urge, as 
we did two years ago, Japanese authorities to ease th e formalities required to authorize the entry of 
these products. 
262. In contrast, exports from Japan to Argentina, which are mostly industrial goods, have steadily 
grown between 2009 and 2012, on the heels of the intern ational financial and ec onomic crisis that we 
are still experiencing. I wish to digress once again.  As you are well aware, Japan and Argentina are 
currently involved in dispute se ttlement proceedings in which our country is being questioned over 
market access. While this is not  the place to enter into the matter, this strikes me as a good 
opportunity to mention the figures for our imports from Japan, given that they have risen by 66% over 
the past four years from US$880 million in 2009 to US$1.46 billion in 2012.  WT/TPR/M/276 
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  263. Japan is an active and committed particip ant in the Doha Round negotiations, firmly 
promoting advances in the liberalization of industri al goods and services. However, it has a different 
attitude towards agriculture. 
264. I suggest jogging our memories a bit. During th e 9th TPR of Japan in 2009, the Government 
Representative of Japan acknowledged that the bilate ral trade imbalance with various Members was 
"linked to high levels of border pr otection, particularly in agriculture". Two years later, during Japan's 
10th TPR, the Government Representative of Japan expected his country to "eagerly push forward 
necessary reforms in Japan's agricu lture". However, four years after this acknowledgement and two 
years after this promise, we can see, as the Secr etariat notes in its Report, that there has been 
practically no change to Japan's agricultural policies. 
265. In light of its particular economic weight, Jap an plays a leading role in global trade and 
therefore in the negotiations that are conducted in th is Organization. We believe that it could make a 
decisive contribution to progress in the Doha Round,  if it showed the same commitment to trade 
liberalization in the agricultural sector as it seeks in other areas of the negotiations. This would 
certainly benefit the multilateral trading system and especially the developing countries for which 
agriculture is a key sector of the economy. 
INDONESIA 
266. Indonesia regards its trade and investment rela tions with Japan as very important. In 2007 
Indonesia and Japan established the Indonesia–Jap an Economic Partnership Agreement (IJEPA). 
Although Indonesia's trade surplus with Japan decr eased 18.6% during the period under review, the 
trade balance between the two countries grew 1. 45%, reaching US$49 billions in 2012 compared to 
US$48.2 billion in 2011. I have every confidence that  our economic partnership will continue to grow 
higher in the future.  
267. Despite these figures, Indonesia places its conc ern on some of Japan's trade policies which 
affect the market ac cess of Indonesia's products to Japan. Such  policies include the implementation of 
Maximum Residues Limits (MRLs) on agricultural pr oducts. Exports of Indonesian coffee beans to 
Japan have been denied due to the discovery of  chemical residues of carbaryl that exceeded the 
threshold standard in Japan of 0.01 ppm.   
268. Indonesia would like to seek further clarificati on of the parameter used for determining this 
standard. It is our wish that the MRL's carbaryl st andard by the European Union at 0.1 ppm or by the 
United States at 0.3 ppm could be used as references. In addition, in order to be able in comply with 
the standard, Indonesia request for the support of  the Japanese government to provide technical 
assistance for Indonesian exporters to enhance the quality of their products. 
269. Indonesia has also previously submitted several  written questions concerning Japan's trade 
and investment policies, and we thank for the info rmative replies. On this opportunity, we would like 
to raise additional questions as follows: 
 On page 85, paragraph 37 of the Secretariat Report, states that Japan's manufacturing sector 
 remains open, with a simple average MFN ta riff for industrial products of 3.6% in 2012, 
 compared with 15.3% for Agricultural products , and an overall simple average MFN rate of 
 6.3%. However, tariff rates for textile and cl othing and for leather products and footwear are 
 significantly higher. We would like to seek clarification why tariff rates for these products  remain higher. 
 Paragaraph 38 of the same page states that in  2009 two institutions were established to 
 provide financial supports to companies that are deemed to have revitalization potential and WT/TPR/M/276 
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   are highly indebted, including those in manufacturing. Would Japan kindly provide further 
 details of which companies are entitled to receive these financial supports, what the  requirements are, and whether foreign compan ies in Japan or Japanese companies located in 
 other countries are also eligible in the scheme.  
ASEAN 
270. ASEAN notes the Secretariat's observation on the contraction of Japan's economy and 
commends Japan on the continued economic recovery following the Great East Japan Earthquake of 
2011 shortly after the Global Financial Crisis of 2009.  However, tariffs remain to be of concern such 
as the rise in the simple average applied MFN tari ff rates. On agriculture, ASEAN hopes that Japan 
will continue to constructively reduce high protection in the agriculture sector. We also appreciate 
Japan's current policies with regard to SPS measures and would like to urge Jap an to take into account 
the capabilities of developing countries and to cons ider the market access of their products in 
implementing these measures. 
271. In other areas, Japan's revision of the Au thorized Economic Operator programme shows 
progress on trade facilitative measures with regard to the release of imports. Furthermore, ASEAN 
also praise's Japan's noteworthy improvement on standards and TRIPs and looks forward to seeing 
more of these promising efforts.  
272. ASEAN and Japan continue to be important trading partners, particularly as ASEAN and 
Japan are both each other's second largest trading part ners, where in 2011 total trade amounted to just 
under US$300 billion. Japan has moved up from bei ng ASEAN's third largest export destination in 
2010 to the region's top export destination in 2011. Th is has also been reflec ted in Japan's Report, 
which shows a 12.5% increase of imports from ASEAN.  Japan also remains an important source of 
foreign direct investment, accounting for 17% of total inward investment in ASEAN where it 
increased significantly from US$11 billion in 2010 to  US$15.3 billion in 2011, a 39% increase in FDI. 
273. ASEAN and Japan signed the ASEAN-Japan Comp rehensive Economic Partnership in April 
2008 which covers trade in goods, trade in ser vices, investment and economic cooperation. Our 
Leaders at the 15th ASEAN-Japan Summit, held in  November last year in Phnom Penh, also 
welcomed the endorsement of the ASEAN-Japan 10-year Strategic Economic Cooperation Roadmap 
which aims to promote strategic partnership in a wi de range of areas including the improvement of the 
business environment, trade and investment facilitati on and liberalization, infrastructure development 
and connectivity, with the aim to achieve our obj ective of doubling bilateral trade and investment 
flows between ASEAN and Japan by 2022. We also look forward to working closely with Japan 
towards the conclusion of the recently announced  Regional Comprehensive Economic Partnership 
(RCEP) involving ASEAN and six of its FTA partners.    
274. Japan has been a steadfast supporter of ASEAN initiatives such as her significant contribution 
to the implementation of the Master Plan on ASE AN Connectivity such as the "Formation of the Vital 
Artery for East-West and Southern Economic Corridor", "Maritime Economic Corridor", "Mekong-
Japan Cooperation" and various soft infrastructure pr ojects. We are also appr eciative to Japan for its 
initiative in training 1,000 trainees from East Asia in the field of infrastructure. Japan has also actively 
assisted ASEAN in the promotion of trade, invest ment and tourism through the ASEAN-Japan Centre, 
which plays a pivotal role in boosting economic development between Japan and ASEAN Members 
States. 
275. ASEAN would also like to express our appreciation to Japan for its contribution and efforts to 
narrow intra-ASEAN economic gaps through its Offi cial Development Assistance being the largest 
ODA donor to ASEAN, contributing to infrastruct ure development, cons truction of schools and  WT/TPR/M/276 
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  hospitals and focusing on human resource developmen t as well as the development of the Mekong 
region. 
276. ASEAN is happy to note that Japan remains an  active participant in the multilateral trading 
system and has been supportive of the need to pus h forward towards a success ful conclusion of the 
DDA negotiations. ASEAN would particularly like to  thank Ambassador Otabe and his delegation for 
their tireless efforts and constructive engagement  with delegations, including individual ASEAN 
Members, here in Geneva. We look forward to wo rking closely with Ambassador Otabe to find a 
successful conclusion and outcome for MC9. 
THAILAND 
277. Japan and Thailand have established and maintain ed a strong bilateral trade relationship.  
Japan ranks first as Thailand's trading partner, with  the total trade value in 2012 at approximately 
US$73.06 billion, increasing from 2011 by 10.57%.  Jap an is the largest importer to Thailand and 
comes second as our top export destinations.  On the other hand, Thailand is Japan's sixth export 
destination and tenth import source.  In terms of investment, Japan is also our largest foreign investor, 
and Thailand is Japan's second largest destination for outflow investment. 
278. Our bilateral relationship beyond trade has been  affirmed through usual visits between our 
leaders and ministers, the latest of which include Prim e Minister Shinawatra's o fficial visit to Japan in 
March 2012 and Prime Minister Abe's official visit to Thailand during his Southeast Asia trip last 
month.  In the latest meeting, the two leaders sh ared the view that the two countries would closely 
cooperate with each other for the smooth opera tion of the Japan-Thailand Economic Partnership 
Agreement, infrastructure developmen t in Thailand and other matters. 
279. Thailand considers our relationship with Japan  as very close and solid.  The bilateral 
relationship has been supported by the regional one, that is, the ASEAN-Japan relations which 
celebrate its 40th anniversary of Friendship and Co operation this year.  Among these relations is the 
trade bond under the ASEAN-Japan Comprehensive Ec onomic Partnership covering a wide range of 
issues of goods, services, invest ment and economic cooperation. 
280. As for the multilateral trading system, we are gr ateful for Japan's lead ing role in the World 
Trade Organization.  Thailand agrees with Japan th at the regional and bilateral trade agreements 
complement the multilateral system.  Japan has sh own her commitments in the multilateral trading 
system in her little use of contingency measures, her relatively low average applied MFN tariff rate, 
and her efforts towards a successful conclusion of  the DDA negotiations.  Thailand also appreciates 
Japan's Generalized System of Preferences scheme and her assistance to developing and least-
developed countries. 
281. Thailand would like to express a concern with regard to Japan's complex system of import 
quota allocation, of which we believe Japan could in crease transparency by providing specific details 
of the procedure and monitoring and tracking mech anism for traders.  Other particular concern 
involves labeling standards under the Japan Agricultu ral Standards Law, which may not fully align 
with international standards.  Our authorities would also like updated information on Japan's 
consideration of lifting an import ban on our frozen  poultry products as Thailand has been free from 
avian flu since 2008. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
282. Since its last Review in 2011, Japan has made a series of structural policy moves in response 
to the earthquake and tsunami, the appreciations of  the yen, the floods in Thailand, weak global 
demand, etc. Japan's central and local governme nts have made use of supplementary budgets WT/TPR/M/276 
Page 38  
 
  amounting to about 3.6% of GDP. Reconstruction work is expected to cost around 4% of GDP and to 
continue through to the end of March 2016. We ar e pleased to see these expansionary macroeconomic 
policies being implemented in support of Japan's econo my. In fact, 2012 is expecte to show a return to 
GDP growth, mainly as a result of this higher spe nding and the inventory rebuilding in the wake of 
the supply chain disruption. 
283. However, the recovery is somewhat fragile , with Japan's economy still being rather 
susceptible to shocks in the global economic environm ent. For growth to be sustained in the longer 
term, it will need to be driven by continued dom estic demand. Domestically, Japan faces some big 
challenges, such as the very high level of public de bt, the rapidly aging population and the prospect of 
further deflation, and it is good to see that the government has undertaken significan structural 
reforms, inter alia , in an attempt to improve productivité, esp ecially in the servic es sector, the labour 
market, and in the area of taxation. 
284. Bilaterally, Japn has always been one of our t op three trade and investment partners, and we 
continue to enjoy a close cooperative relationship.  Some significant progress was achieved in 2011 
when we together signed an Agreement on Investme nt to develop bilateral investment opportunities 
and new potential markets, which we firmly believe  will further strengthen our trade and investment 
partnership in the future. 
285. One aspect of Japan's external trade policy we have  noted with particular interest is that, since 
its last review, various measures have been taken to  further promote the liberalization of international 
trade. Together with its continuing efforts to advance the ongoing DDA negotiations, Japan also 
moved forward with various bila teral negotiations. We share Japan's view that RTAs can be 
complementary to the multilateral trading system a nd a stepping stone to the further opening up of 
multilateral trade. We also believe that closer ec onomic integration means a more liberalized trade 
regime. Therefore, while Japan is expanding  its trading opportunities by signing Economic 
Partnership Agreements (EPAs) with a number of our  neighbouring partners, we would ask it to also 
consider the close industrial value chain that our  both economy already represents as a way of further 
expanding its cooperative activities in the global market. 
286. We very much appreciate Japan's clear statem ent that maintaining and strengthening the 
multilateral trading system under the WTO remains a fundamental basis of its trade policy. Despite 
the impasse reached in the Doha Development Ag enda negotiations, Japan continues to play an 
important role in pursuing progress. In line with th e MC8 guidelines, Japan is committed to exploring 
different negotiating approaches while respecting the principles of transparency and inclusiveness. At 
this critical juncture, we certainly look to Japan to continue its role in bridging the differences 
between major players, with the hope that all Me mbers will soon be able to enjoy the fruits of the 
outcome that the DDA has promised to deliver. 
287. Japan is not only one of the world's most important economy, it is also the leading economy 
in the region. Our close relationship is not just a bout the industrial supply chain, but also our cultural 
and historical connections. We want Japan's econom y to recover significantly as soon as possible and 
we would like to see it resume its role as the engi ne of regional economic gr owth, which will benefit 
both the region and the world. 
ECUADOR 
288. In the 11th Trade Policy Review of Japan we note the progressive, albeit slow, recovery of 
the country's economy. Trade in goods and services h as performed well since the last Review in 2009. 
In fact, since 2010, the economy has grown at an a nnual rate of 2.2%, although the pace of recovery 
slackened in 2011 and is forecast to be similarl y slower in 2012. However, between 2010 and 2011 
merchandise trade rebounded, surpassing 2008 levels. Exports and imports grew by 16%, although the  WT/TPR/M/276 
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  latter exceeded the former, worsening the massive exis ting deficit. On the other hand, trade in services 
has recorded a solid and increasing surplus in recent years, which has helped the current balance. 
During the review period, the financial services s ector accounted for 8.5% of the country's GDP. 
289. In light of the above and the still fragile state of the global economy, in response to the crisis 
Japan has formulated and implemented export prom otion and investment policies aimed at doubling 
exports within a period of five years and fo r this purpose has increased financing by the US 
Export‑Import Bank and adopted the National Expor t Initiative and the Export Control Reform 
Initiative. The figures thus reflect the importance of exports, which reached an historic high of 13.8% 
of GDP in 2011. More specifically, during the review period exports in the merchandise sector rose to US$1,497 billion, while in the services sector exports grew by 9.2%. 
290. Since the last Review, Japan's trade policy fra mework has been multifacet ed. Firstly, there is 
the commitment to the multilateral trading system th rough MFN treatment of its trading partners at 
multilateral level (WTO) and the gene ral application of the multilateral trading rules. Secondly, there 
is the continuation and emphasis on regiona lism through the negotiation, approval and 
implementation of free trade agreements such as t hose signed with Korea, Colombia and Panama as 
well as the upcoming Trans ‑Pacific Partnership, among other initiatives. Finally, the third facet 
concerns the renewal of two non ‑reciprocal preference schemes, su ch as the extension of two 
programmes that had lapsed: the Generalized System  of Preferences and the Andean Trade Preference 
Act (ATPA). The importance of the preferential trade relationship in Japan is noteworthy, given that it 
accounts for 20.1% of the country's imports, onl y 3.7% of which corresponds to unilateral 
preferences. 
291. As regards the state of bilateral trade between Ecuador and Japan, Ecuador has imported an 
annual average of US$5.9 billion and exported ar ound US$8.6 billion since October 2009. Between 
January and October 2012, Japan was the prim ary destination for Ecuador's petroleum and 
non‑petroleum exports, while Ecuador's petroleum and non ‑petroleum imports were mainly from 
Japan. In short, Japan was the main  market for Ecuadorian exports with a 44.6% share, and Ecuador's 
second largest supplier of imports, accounting fo r 26.9%. Ecuador has recorded positive trade 
balances with Japan, its principal trading partner, largely due to exports of crude petroleum, which 
account for roughly 70% of the Ecuadorian supply. 
292. The possible non -renewal of the ATPA could affect Ecuador's trade balance with Japan, 
reducing it to deficit levels. This is why Ecuador, currently the sole beneficiary of the system, wishes 
to express its appreciation for the tariff prefer ences granted, which undoubtedly provide clear, 
substantial support for the country's efforts in th e unequal battle against drug trafficking and related 
offences. In addition to making a significant cont ribution to economic growth and employment in 
Ecuador, the ATPA is an essential aspect of bilate ral relations between our countries, as it is a key 
tool in Ecuador's fight against drug trafficking in  the Andean region. This is why, based on the 
principle of co responsibility and the positive impact  that this preferential system has had in Ecuador, 
we urge Japan to give favourable  consideration to the extension of  the ATPA for longer periods of up 
to three to five years. We would also like to reiterate the importance for developing countries in 
general and Ecuador in particul ar of maintaining and expanding the GSP as a means of facilitating 
development. 
293. In this area, Ecuador believes that our count ries can gradually develop a bilateral working 
agenda, bearing in mind the existing asymmetries, which stabilizes trade relations between the two 
parties, through the negotiation of a trade agreemen t targeting development and mutual benefit. In 
light of the above, we would like to add that Ecua dor hopes shortly to resume the specialized dialogue 
and discussion of specific trade and economic issues in the Bilateral Trade and Investment Council. 
Lastly, Ecuador agrees with the statements made by Cuba during this morning's session, especially WT/TPR/M/276 
Page 40  
 
  regarding the importance of Members' compliance with the recommendations and rulings of the WTO 
Dispute Settlement Body, which is the cornerstone of the multilateral trading system. 
TURKEY 
294. Needless to say, Japan is one of the leading economies of the World. Japanese economic 
policy-making and technological management strategy have always been and still are a role model for 
many economies globally. For this reason, we consider  that the trade policy review of Japan is an 
interesting and important exercise for both the Geneva trade community and capitals alike. 
295. As we all know, Japan has recently faced one  of the greatest earthquakes and ensuing 
disasters of our time. These disasters struck Japan after a prolonged period of stagnation.  However, thanks to the effective steps taken by the Japanese government, the Japanese economy has quickly 
rebounded. Yet, it seems that the recovery process is also facing some tough policy challenges. The 
expansionary fiscal policies due to the supplementary  budgets, together with inflationary targeting 
programme adopted against the background of a defl ationary environment seem to have accelerated 
the appreciation of the Yen thus reducing the competitiveness of the Japanese economy. 
296. We hope that the Japanese government will be able to calibrate an optimum fiscal and 
monetary policy-mix to reverse the trend that  reduces the competitiveness of the Japanese economy. 
297. The importance of Japan in the global tradi ng system and the crucial role that it plays 
multilaterally are obvious. We all know  and observe the valuable contributions that Japan makes to 
our daily work in the WTO. 
298. As one of the largest and most important ec onomies globally, Japan maintains strong support 
for the rules-based multilateral trading system embodi ed in the WTO.  Japan  has a transparent and 
predictable trading system that relies mostly on cust oms tariffs as the main border restriction. That is 
highly appreciated. 
299. All the members of the WTO and the international community are very well aware of the 
Japanese leadership role in international developmen t and aid activities. In this context, I would like 
to mention that, Turkey strongly appreciates Japan 's determination to provide comprehensive and 
large aid packages to the LDCs including the 'Dev elopment Initiative for Trade', 'One Village, One 
Product' and DFQF. 
300. Coming to our bilateral relations, I should mention that Japan has been a long-standing and 
valuable partner with which we have always enjoye d an excellent political relationship. However, at 
around US$4 billion, our commercial trade volume neith er reflects the potential of our two economies 
nor mirrors our perfect political relations. It should also be pointed out that our trade with Japan 
registers an enormous surplus in the latter's favour . Such imbalance cannot be sustained in the long-
term. Also, within the last decade, although Turkey  has attracted an FDI inflow of US$111 billion,  
the share of Japanese FDI in the same period has been limited to just US$755 million. In addition to 
traditional trade in goods, Turkey also aims at enha ncing its investment and services relations with 
Japan, taking into account the increasing role that these sectors play in economic relations. 
301. Considering these facts, in July 2012, the Turkish and Japanese Governments have signed a 
Memorandum Establishing a Framew ork for Cooperation in Economic  Relations. This Memorandum 
establishes a framework for cooperation in economic relations to strengthen and further develop our 
bilateral economic and trade relations. 
302. It mainly aims at developing and expanding the scope of cooperation in the fields of trade and 
investment, as well as technology transfer, deve loping and enhancing re lations between the  WT/TPR/M/276 
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  governments and private sectors through establishi ng a mechanism for enhancing the business 
environment and solving problems which the private sectors of either country may encounter in the other country. 
303. The Memorandum also aims at  promoting cooperation between  the two countries concerning 
bilateral, regional and global issues of mutual in terest and encouraging joint investments in third 
countries by Japanese and Turkish companies.  
304. In addition to this framework for cooperation, Tu rkey and Japan also agreed to form a 'joint 
working committee' to initiate talks on a Free Trade Agreement between the two countries. 
305. We are also very happy that Japan does not maintain any trade defence measure against 
Turkey. However, I should like to mention that due to the complex nature of the Japanese SPS 
legislations, there exist undue restrictions on expor ts to Japan of several important agricultural 
products such as poultry, cherries and citrus. I should like to take this opportunity to also express our 
readiness to sign an agricultural cooperation agreemen t with Japan with a view to alleviating such 
problems. 
TRINIDAD AND TOBAGO 
306. 2014 has been designated the Japan-CARICOM Friendship year to enhance the 
Japan-CARICOM relationship in trade, tourism a nd culture. In keeping with the spirit of this 
upcoming event, Trinidad and Tobago as a CARICOM Member state, is pleased to participate in the eleventh Trade Policy Review of Japan. 
307. The trading relationship between Trinidad and T obago has increased in recent times, with thte 
trade balance being in Japan's favour. As our Minist er of Foreign Affairs stated two years ago during 
a visit to Tokyo, the Government wishes to collabor ate with Japan to explore opportunities to further 
strengthen our economic and commercial ties. 
308. It is with is in mind that my delegation not ed with interest the number of Aid-for-Trade 
initiatives highlighted in the Government of Japan's  report. One initiative that stood out is Japan's 
assistance to the "One Village, One Product Move ment" which seeks to support the local economies 
of developing and least-developed countries, thr ough the development, improvement and promotion 
of local products such as foods, beverages, textile s and garments with the participation of local 
people. Trinidad and Tobago would welcome bei ng a beneficiary of such an initiative and my 
delegation therefore hopes that this may cons titute an avenue for further exploration. 
309. Trinidad and Tobago also acknowledge Japan's  contribution to the Standards and Trade 
Development Facility (STDF). Improving capacity and expertise to implement international standards 
on sanitary and phytosanitary measures is key to de veloping countries as we seek to increase our 
maket access. Assistance provided through th e STDF is one avenue toward this end. 
310. In relation to its macroeconomic policies and st ructural policies, my delegation noted with 
interest the Government of Japan 's approach to recovering from th e earthquake and tsunami in 2011. 
In addition to rebuilding the physical infrastructur e, the Government's focus for rebuilding is on job 
creation, with an emphasis on the development of small and medium enterprises as an engine of 
growth and revitalization. This approach is indeed commendable. 
311. Also noteworthy is the Government's efforts to increase female participation in the work force 
by providing better and more childcare facilities.  The recently introduced points-based preferential 
treatment for highly skilled foreign professionals in immigration procedures is another initiative 
aimed at increasing the Japanese labour force worthy of special mention. WT/TPR/M/276 
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  312. In its report the Government of Japan stat es "maintaining and strengthening the multilateral 
trading system under the WTO remains a fundamental  basis of Japan's trade policy". My delegation 
welcomes this firm commitment to  the multilateral trading system, a nd hopes that as a key member of 
the global economic community, Japan will make an even more substantive contribution to 
re-energizing the stalled Doha ne gotiations, in a manner that upholds the key principles of the Doha 
Development Agenda. 
DOMINICAN REPUBLIC 
313. On the occasion of this 11th Trade Policy Revi ew we would like to congratulate the Japanese 
Government for coping not only with the internatio nal economic crisis but also with the destruction 
caused by the 2011 earthquake and tsunami, in a manne r we consider to be satisfactory given the 
difficulty of the situation. We note from the Secretar iat Report that exports are the driving force of the 
Japanese economy. Between 2002 and 2007, real GDP grew at an average annual rate of 
approximately 1.8%, underpinned by exports, which gr ew at an average annual rate of over 9% during 
the same period. In the aftermath of the global ec onomic crisis in 2008, exports collapsed, resulting in 
the Japanese economy contracting in 2008 and 2009. Recovery in 2010 was again export led. The 
earthquake and tsunami in 2011 resulted in sharp dec lines in private consumption and stock building, 
and widespread supply chain disruptions affecting production across the country, particularly in export dominant sectors, such as automobiles and electronics. Production was also affected by the 
shutdown of nuclear power plants, wh ile exports were impacted by the floods in Thailand. Due to all 
these factors, exports declined and the economy contracted in 2011. 
314. As stated in the Report, the Japanese economy has rebounded since then and real GDP growth 
is expected to be 2.4% in 2012. Recent growth h as not been driven by exports, but has come on the 
back of reconstruction spending, consumer spending (helped by government subsidies for 
environmentally friendly automobiles), and inve ntory building in the wake of supply chain 
disruptions. However, the recovery is fragile and the Japanese economy is suscep tible to shocks in the 
global economic environment especially in key tr ading partners such as the EU and China. 
315. The Report indicates that to be able to sustain growth in the medium to longer term, domestic 
demand will need to continue to drive growth. Othe r challenges to longer term growth include very 
high public debt, the rapidly ag ing population, and de flation. To overcome these challenges, the 
Japanese economy will need to undergo structural refo rms, inter alia, to improve productivity in the 
services sector, reform the labour market, and reform taxation. 
316. According to the Report, the tariff continues to be Japan's main border restriction and average 
applied MFN tariffs rose by 5.8% in 2010 and by 6.3% in 2012, mainly due to higher average ad 
valorem equivalents of non ad valorem duties. It also points out that non- ad valorem  duties, which 
account for 6.6% of Japan's tariff lines, tend to i nvolve high AVEs, and are an important feature of 
Japan's tariff, particularly for agricultural produc ts. We would therefore encourage Japan to use only 
ad valorem tariffs, as do most developing countries , in order to ensure greater transparency and 
predictability, and to avoid su ch unexpected tariff increases. 
317. We welcome the fact that Japan applies few contingency measures. It has also amended 
various laws on intellectual property rights in or der to, inter alia, improve the convenience and 
effectiveness of patent and design systems. A dr aft law to amend the Anti Monopoly Act (AMA) has 
been submitted to the Diet. We commend Japan for its efforts. 
318. We have noted with concern that the agricu ltural sector continues to receive substantial 
government support including, for example, a rela tively higher average applied MFN tariff rate 
compared to other sectors, tariff quotas, income support and production control measures. We  WT/TPR/M/276 
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  encourage the Japanese Government  to introduce the reforms need ed to further liberalize the 
agricultural sector. 
319. We also would like to congratulate Japan for ad opting the Postal Service Privatization Act in 
April 2012. 
320. The Dominican Republic has submitted several qu estions to Japan relating to support policies 
and tariff quota administration in the agricultura l sector, and their consistency with the WTO 
Agreements, and also to the country's tourism polic y. We would like to end by congratulating Japan 
and urging it to continue implementing the structural  reforms needed to improve the functioning of its 
economy. We wish it every success in its 11th Trade Policy Review and for the future.  
PHILIPPINES 
321. Japan is the third largest economy in the world. Among the G20 nations, Japan has the 
highest industrial production growth rate in electronics manufacturing.  Japan's long history of monotsukuri, the culture of continuously improving th ings, has helped the country maintain its stature 
as the world's leader in both produc tion and technologi cal advancements. 
322. Services also play a dominant role in the Jap anese economy contributing to about one-third of 
its GDP. While Agriculture's contribution is fairly small, it remains to be a highly important and a 
highly protected sector of Japan's economy. 
323. Putting all these elements together, it is therefore no surprise that the domestic aftershocks 
caused by the Great East  Japan Earthquake in March 2011 reverberated equivalent trembles and 
hiccups to Japan's major trading partners, including  the Philippines, particularly to specific sectors 
and firms for which trade and investment with Jap an is particularly important. Beginning 2012, the 
Japanese economy was on the way to recovery mainly driven by domestic demand including 
reconstruction activities.   
324. The Philippines and Japan enjoy dynamic ec onomic relations including robust trade, 
investments and development cooperation. The rela tionship is mutually complementary with Japan 
possessing advanced technology and capital while the Ph ilippines having an excellent labor force with 
high technical skills. 
325. The Philippines biggest export destination is Jap an and, conversely, the Philippines' imports 
from Japan accounts for the largest share among its tr ading partners. Japan also remains to be the 
biggest trade and investment source of the Philippines.   This year marks the 5th year since the entry 
into force of the Philippines-Japan Economic Partnership Agreement (PJEPA). 
326. To promote the regional economic integration,  the Philippines and Japan are party to the 
Agreement on Comprehensive Economic Partners hip among Japan and Member States of the 
Association of Southeast Asian Nations (AJCEP) . The Philippines is actively supporting for the 
acceleration of the inter-governmental study pro cess and work towards commencing the negotiations 
of the East Asian Free Trade Area (EAFTA) and th e Comprehensive Economic Partnership in East 
Asia (CEPEA). 
327. The Philippines and Japan also promote mar itime connectivity through the "Maritime 
ASEAN Economic Corridor", the initiatives to contribute to the implementation of the Master Plan on ASEAN Connectivity (MPAC), and cooperation u nder the framework of the Japan-BIMP/EAGA 
(Brunei, Indonesia, Malaysia, the Philippines - E ast ASEAN Growth Area), while coordinating with 
the Comprehensive Asia Development Plan (CADP) formulated by the Eco nomic Research Institute 
for ASEAN and East Asia (ERIA). WT/TPR/M/276 
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  328. In the wake of the Great East Japan Earthquake , the Philippines, in its own little way, sent 
emergency relief supplies and dispatched a medical a ssistance team to the disaster-affected areas.  A 
news article even mentioned that the last house st anding against the tsunami in Iwaki city, Fukushima 
prefecture is a pre-fabricated housing unit manuf actured in Cavite, Philippines. The Philippine 
President's State Call on His Majesty the Emperor of Japan and visit to the Ishinomaki City in Miyagi 
Prefecture further reaffirmed the Philippines r eadiness to extend furthe r assistance to Japan. 
329. The two economies also expanded people-to-peopl e exchanges by strengthening the "Kizuna" 
the bonds of friendship. Former Prime Minister Mr. Yoshihiko Noda rolled out the "Philippines-
Tohoku Goodwill Ambassadors" initiative that is ai med to gain a deeper understanding of Japanese 
culture, as well as to learn from Japan's recovery effo rts, disaster risk management and the concept of 
a "greener environment". Over 400 high school and college students have bene fited in the programme 
and there is a plan to invite another batc h of close to 300 students by March 2013.  
EL SALVADOR 
330. It is a pleasure for our delegation to participat e in this Review, especially as our two countries 
have maintained bilateral relati ons since 1935 and in recent years have worked extremely hard on 
issues such as risk management, strengthening of trade links and cooperation. Japan has become one 
of our main suppliers of capital goods and a large number of Japanese companies are established in El 
Salvador, chiefly in the sector involving automotive and technological products. 
331. Our country is home to major Japanese bus inesses such as IUSA, INSINCA, YKK, Itochu 
Corporation, Mitsubishi Corporation, Panasonic,  Nippon Koei and Metal One Corporation. It is 
interesting to note that in 1955, Toyobo ( 東洋紡 ) set up an affiliated company, Industrias Unidas S.A. 
(IUSA), which continues to produce fabrics and yarn s in El Salvador today. Moreover, the Toyota 
distributor in El Salvador is the second oldest authorized distributor in the world. 
332. With regard to trade, El Salvador's exports  to Japan rose substantially during the period 
2008-2011. The main export products included beverages, shrimps, sesame seeds, condiments, leather 
and jewellery cases, footwear and prepared foods. Imports from Japan consisted, inter alia, of 
vehicles, flat rolled products of iron, tractors, bicycles and other road vehicles, copper and copper 
articles. It should be underlined that the output of our economies is complementary. 
333. Our trade links with Japan continue to grow st ronger, as evidenced by the recent visit by the 
Director of the Japan External Trade Organizati on (JETRO) to further promote trade and encourage 
greater Japanese investment in our country's produc tive sectors. JETRO is an important information 
provider and development ally, not only for El Salvador but for the entire region. 
334. In terms of cooperation, it is important to  highlight the support received from the Japanese 
Government for the construction of major infrast ructure works, which have contributed to the 
development of El Salvador, such as the building of  the modern Port of the Union, which we believe 
will allow for a greater flow of goods, among other things. 
335. Under the multilateral framework and since the re view of its trade policy in 2011, Japan has 
taken various measures to further promote liberaliza tion of international trade. In addition to its 
continuing efforts to advance the on going Doha De velopment Agenda negotiations and with a view 
to capacity building, in December last year Japan donated CHF 395,604 to the WTO training 
programme for developing countries. 
336. As one of the largest trading economies in the world and an important member of the 
Organization, Japan continues to support, throug h its government, the non discriminatory and rules 
based multilateral trading system provided by the WTO, as a driver of growth of the world economy  WT/TPR/M/276 
 Page 45 
 
 
  and for the benefit of developing countries. It has continued to promote initiatives to advance the 
Doha Round negotiations and ac tively participates in negotiating processes on various DDA issues, 
such as the Committee on Trade and Development, Ai d for Trade, Market A ccess, Agriculture and 
Services, and has also moved forward with its bilateral negotiations on  Economic Partnership 
Agreements (EPAs), which have made positive progress and complement the multilateral trading 
system. 
337. Japan has made active use of the WTO dispute settlement mechanism, both as a party and as a 
third party, to resolve disputes and continues to seek improvements and clarifications of the Dispute 
Settlement Understanding (DSU) with a view to e nhancing compliance with trade rules and ensuring 
the integrity and credibility of the rules based trading system. 
NIGERIA 
338. We are pleased to participate in the 11th Trade Policy Review of Japan. As Japan is one of the 
world's major trading nations and is  undergoing its 11th Review, it is important for it to maintain its 
commitment to the success of the DDA and keep up its  efforts to reach an agreement. The main 
features of Japan's trade policy have remained unc hanged despite the natural disasters that occurred. 
Manufactured products still dominate exports, acc ounting for 88.1% of total merchandise exports. 
However, due to the slowdown in Asian economies, it may not be possible to maintain this trend. We 
are encouraged to see in the Secretariat Report th at Japan continues to adopt measures to improve 
transparency in its trade, policies, practi ces and procedures, thereby enhancing its public 
accountability. These actions will help to  improve the economic situation. 
339. We would ask Japan to take into account the fo llowing issues. The regime is liberal yet the 
situation is complex. It is important to bear in mi nd that the interests of developing countries must be 
safeguarded. These countries still face ta riff peaks. Agricultural policies in developing countries must 
be protected. We therefore encourage Japan to pu rsue its policy reform process to improve market 
access, particularly in agriculture and services, so that countries such as Nigeria can benefit from its 
participation in the multilateral system. 
340. The One Village One Product programme aims to support countries on the African continent 
and we would like Japan to expand on the way in which it evaluates the impact of the programme and on the reactions of the Sub Saharan African count ries. We congratulate Japan for adopting this 
initiative and organizing a conference on development in Africa. This cooperation needs to be stepped 
up in order to ensure growth in Africa. 
341. Bilateral relations between Nigeria and Japan have been sustained over the years and are 
based on cooperation and trust. This should enab le our countries to move forward and address 
important issues that are still outstanding in th e field of bilateral re lations and cooperation. 
342. In conclusion, Nigeria acknowledges that Japan is an important WTO Member that plays a 
crucial role in the DDA, contributes to greater transp arency in the WTO, to its rule making, and to 
enhancing the efficiency of the system by regular ly providing information on the notification process. 
We thank Japan for participating in the Aid for Trade initiative and for helping LDC countries take 
advantage of the available opportunities to participate in multilateral trade.  
URUGUAY 
343. Our country has a friendly and constructive re lationship with Japan in several bilateral 
spheres, at both the political and the economic level, and in creating forums for trade, technological, social and cultural cooperation. WT/TPR/M/276 
Page 46  
 
  344. It is important to mention the significant progress made in the bilateral agenda and the high 
level of dialogue and coordinati on between the two countries at the regional and international levels. 
345. Uruguay acknowledges and appreciates the financ ial, economic and technical cooperation of 
the Japanese Government. Since 1976, more than 43 Uruguayans have conducted research at Japanese 
universities through grants awarded by the Government. It is also important to underscore the dispatch 
of Japanese experts to transfer technology to technicians and officials in the Uruguayan public 
service. Other noteworthy aspects include the donati on of equipment, various technical cooperation 
projects, Japanese missions to carry out developmen t studies in our country, the valuable work done 
by the senior volunteers, and the non refundable financial assistance programmes to support 
community projects in fields such as human safety,  the environment, climate change and culture. 
These are actions that reflect the excellent fri endly and cooperative rela tionship uniting our two 
countries. With regard to bilateral trade in goods, it is important to note that the trade balance between 
Uruguay and Japan has recorded a growing deficit in recent years. This deficit is mainly due to a 
steady rise in Uruguayan imports. In 2009 these fell by 17.5%, however, the deep ening of the deficit 
being attributable to a sharp decline in Uruguayan exports (88.6%). 
346. The main product exported to Japan is "wool and fine or coarse animal hair", which 
accounted for 48% of total exports  in 2009. The second and third ma in exports are "wool grease and 
fatty substances derived therefrom" and "frozen fish". 
347. Uruguayan imports grew steadily until 2008, from a low of US$43 million in 2005 to a high 
of US$89 million in 2008. The main import categor y is "motor cars and other motor vehicles", which 
accounted for 25.8% of total imports in 2009. The second and third main imports in the same year 
were "synthetic rubber" and "new rubber tyres". 
348. During the year 2012, Uruguayan exports to Japan amounted to just over US$10 million 
whereas its imports totalled around US$100 million. 
349. It is important to highlight Uruguay's inte rest in accessing the Jap anese market for fresh 
boneless bovine meat and the progress achieved in the health certification process for re entry of the 
product.  
350. Given the excellent health conditions in Ur uguay, the requested certification process is 
expected to be concluded quickly and successful ly, with the requisite scientific guarantees, 
considering the quality of Uruguayan meat and the effo rts made by our country to  regain and maintain 
its "free with vaccination" status. A visit to Uruguay by a Japanese mission to analyse the health 
situation on site and contin ue with the above certifica tion process has been agreed. 
351. As a final comment we would emphasize the intere st of both countries in joining efforts to 
achieve the successful completion of the Doha De velopment Round and to strengthen a multilateral 
trading system based on predictable, transparent and balanced rules. 
MOROCCO 
352. Following a period of stagnation, owing mainly to  the tragic earthquake and tsunami that hit 
Japan in March 2011, the country's economy picked  up as production supply chains were gradually re 
established. 
353. Morocco commends the impressive performance of the Japanese economy, which is now on 
the path to moderate recovery and is expected to grow by 2.5% during fiscal year 2013-2014, based 
on the assumption that the fiscal and monetary polic ies implemented by the Government will bear 
fruit, pulling the world's third largest economic power out of recession and away from deflation.  WT/TPR/M/276 
 Page 47 
 
 
  354. According to the reports submitted by the WTO Secretariat and Japan, few changes have been 
made to Japan's trade policies since the country's last Review in 2011. 
355. Since that date, Japan has nonetheless taken sever al measures to promote international trade 
liberalization. Alongside its efforts to advan ce the ongoing Doha Development Agenda (DDA) 
negotiating process, Japan has continued to negotia te bilateral Economic Pa rtnership Agreements 
(EPAs), which have made positive progress and complement the multilateral trading system. 
356. We are therefore pleased to see Japan adopting a larger number of international standards. 
Morocco would like to take this opportunity to cong ratulate Japan for the efforts it has made to move 
the DDA negotiations forward in spite of the deadlock  they had reached. Japan is one of the world's 
leading economies and trading nations, and has made  a significant contribution to the efforts to 
maintain and strengthen the multilateral tr ading system within the WTO framework. 
357. Morocco praises Japan for the active role it h as played in the multilateral trading system, 
particularly by providing financial and technical  assistance, including its official development 
assistance and various regional economic cooperation in itiatives, as well as its contribution to Aid for 
Trade, thereby recognizing that integration of the developing and least devel oped countries (LDCs) in 
the multilateral trading system is one of the core missions of the WTO. 
358. Morocco also commends Japan for supporting the accession of new Members, and in 
particular for the active support given to LDCs by providing candidates with technical assistance so as 
to help them develop their trade capacity. 
359. Japan's approach to development emphasizes economic growth and the involvement of 
beneficiaries in "country owned development". This approach h as appealed to many African 
countries. 
360. In June 2013, Japan will host TICAD V, the Fifth Tokyo International Conference on African 
Development to commemorate the 20th anniversar y of the TICAD process. This conference has 
become a leading world forum for the promotion of development in Africa and attracts high level 
participants from African countries and their de velopment partners. Under this process, Japan 
emphasizes trade facilitation through the promotion of regional integration. 
361. This Japanese initiative, co or ganized by the UN, UNDP and the World Bank, was launched 
in 1993. TICAD takes place every five years a nd aims to advance the dialogue between African 
leaders and high level officials from countries or inte rnational organizations i nvesting in development 
aid. 
362. Since 1993, TICAD has established a global fra mework for cooperation between African 
countries and their development partners. Past conf erences have enabled Japan to forge strong links 
with African countries. 
363. In order to evaluate the progress achieved in implementing the Yokohama Action Plan 
adopted at TICAD IV and to engage in discussion on TICAD V, a ministerial follow up meeting was 
organized by Morocco in May 2012. 
364. During this meeting, the participants agreed  that TICAD V would be an important step 
towards achieving more inclusive and sustainable gr owth and building resilient societies in Africa. 
365. I would like to congratulate the Japanese G overnment on its successful and impressive 
performance in recent years, and on its rema rkable dynamism within multilateral trade. WT/TPR/M/276 
Page 48  
 
  VENEZUELA 
366. The period under review has not been easy for Japan, not only because it has had to cope, like 
many others Members, with the adverse impact of the current world economic and financial crisis but 
also because it was severely affect ed by the earthquake, tsunami and subsequent accidents at the 
nuclear power plants in March 2011, and the tragic  consequences of these events which caused untold 
human and material losses, leaving Japan and its Government faced with immense and complex 
economic, fiscal and energy related challenges in an  unfavourable environment. The world recognizes 
that Japan has a people and a Government th at know how to overcome their difficulties. 
367. During the period in question, Japan, like other developed and developing countries, 
experienced sharp fluctuations in its national currency on several occasions, as a result of the 
monetary policy it implemented. These have presente d vast challenges in terms of productivity and 
competitiveness and have affected Japan's foreign trad e and its participation in the multilateral trading 
system. 
368. Moreover, it has been noted that the structur al problems responsible for sluggish economic 
growth during the past decade or so in Japan have worsened. 
369. The above challenges require the introduction of in depth reforms and we recognize the 
enormous efforts made to achieve this. We unde rstand that the road ahead is not an easy one. 
370. With regard to Japan's trade policy and followi ng our analysis of the Secretariat Report, we 
note that the tariff is still Japan's  main border restriction. The non- ad valorem  duties that Japan 
continues to apply tend to involve high AVEs, particularly for agricultural products. 
371. We also understand that for food security reasons and with the most vulnerable segments of 
the population in mind, Japan is still implementing non tariff border measures, specifically in the 
fisheries sector, without withdrawing a number of  behind the border measures, such as significant 
government support for the agricultural sector, which continues to be a concern for some Members. 
372. Bilateral relations between Japan and Venezuel a have flourished since 2009, a year in which 
the Venezuelan president visited Japan. Since th en, the two Governments have strengthened their 
relations, which are based on energy cooperation. 
373. In 2011, for example, trade between Venezuela and Japan averaged around US$513 million. 
With this in mind, Japan is implementing an indust rial and economic developm ent model that offers a 
range of opportunities to further consolidate b ilateral cooperation and increase trade, based on an 
energy oriented approach. 
374. However, aside from the Generalized System of Preferences, there is no bilateral legal 
framework to facilitate economic and trade rela tions between Venezuela and Japan. The Japanese 
Government has expressed interest in deepening tr ade negotiations, in response to which we have 
suggested opening negotiations for a possible agre ement on the reciprocal protection and promotion 
of investments and an agreement on avoidance of  double taxation, so as to create a more secure 
environment for the vast number of trade transactio ns and investment relationships between the two 
countries. Meanwhile, it should be pointed out that in 2011, the two countries signed five 
comprehensive cooperation agreem ents on petroleum and gas, finance, petrochemicals, the 
environment, electricity and alternative energy. 
375. In the two year period under review, Japan's im ports from Venezuela have continued to grow 
steadily while Japanese exports to Venezuela have declined, even though Japan's trade balance is  WT/TPR/M/276 
 Page 49 
 
 
  satisfactory. Unalloyed aluminium, raw cocoa, ir on ore and aluminium alloys are among Venezuela's 
main exports. The main products importe d from Japan are still motor vehicles. 
376. Japan could boost economic development in Venezuela by providing support for the 
processing of raw materials and inputs used in the country's production network chain. Our Government has identified the following strategic sectors as possible complementary economic areas 
for Japan and Venezuela: agriculture and crops, th e food industry, stone, ceramics, gypsum, glass and 
glassware. 
SAUDI ARABIA 
377. The Kingdom of Saudi Arabia wishes to congratulate Japan for the efforts it undertook 
following the Great East Japan Earthquake in Marc h 2011.  Despite the hardship it recently went 
through, Japan remained an active supporter of the mu ltilateral trading system and did not resort to the 
adoption of protectionist measures.   
378. Japan's macroeconomic policies have supported Japan's economy since its last Trade Policy 
Review and the great disaster that took place sinc e then.  In these difficult years, Japan has also 
initiated structural reforms that will help it to re inforce its economy and, as a consequence, reinforce 
the world economy.  The Kingdom of Saudi Arabia we lcomes, in particular, Japan's decision to cut 
the statutory corporation tax rate so to improve in centives to invest, including  inward foreign direct 
investment (FDI) and wishes Japan success in con tinuing its reforms.  Ja pan's trade partners, 
including Saudi Arabia, will benefit from a rein forced and more open economic environment.  
379. The Kingdom of Saudi Arabia and Japan enjoy long and deep trade, economic, technical and 
political relations.  After the establishment of dipl omatic relations in 1955, the Governments of the 
two countries signed a first ec onomic and technical cooperation agreement in 1975.  A Joint 
Committee was established on this occasion to furt her strengthen economic and trade relations and 
has been regularly meeting ever since.   
380. Trade between Saudi Arabia and Japan complement  one another.  Saudi Arabia is the largest 
supplier of crude oil to Japan and it imports indus trial products, machinery, electronics and vehicles 
from Japan.  During the first half of 2012, trade be tween Saudi Arabia and Japan increased by 15% 
while trade between Japan and Saudi Arabia in creased by 36%.  The Kingdom of Saudi Arabia 
welcomes a further development of trade and is k een to attract new Japanese investments and promote 
exchanges and transfers of know-how necessary to co ntinue the diversification of the Saudi economy. 
381. The Kingdom of Saudi Arabia commends the G overnment of Japan for its support of the 
WTO system.  Japan is one of the world's largest  trading economies and has continuously supported a 
ruled-based multilateral trading order where least-d eveloped, developing and developed countries are 
able to benefit from the opportunities resulting from an open and fair trading environment.  As 
members of the G-20, Japan and the Kingdom opposed  the rise of protectionism and supported the 
statement on standstill and rollback commitment.   
382. In addition to its active engagement in the WTO and its support for the conclusion of the 
Doha Development Agenda, Japan ha s concluded a number of bilateral and plurilateral agreements.  It 
is negotiating the additional preferential agreemen ts, including with the Cooperation Council of the 
Arab States of the Gulf (GCC).  Through its Generalized System of Preferences (GSP) and various development initiatives and programs, Japan is al so promoting a balanced approach to the 
development of trade. WT/TPR/M/276 
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  HONDURAS 
383. According to the Secretariat Report, the Japanese economy was experiencing a period of 
expansion and recovery following the 2008 world fina ncial crisis, thanks to its export growth. The 
damage from the 2011 earthquake and tsunami caused a decline in private consumption and stock 
building, and widespread supply chain disr uptions, which affected domestic production. 
384. It is admirable that the Japanese economy is making a rapid recovery despite the negative 
effects caused by economic and natural events. Its recent growth has been driven by reconstruction 
expenditure, consumer spending an d inventory building in the wake of supply chain disruptions. 
However, Japan still faces a number of significant  challenges, mainly with regard to its aging 
population, improvement of productivity in the services sector and tax system reforms, among others. 
We recognize that Japan will continue to make ever y effort to find solutions to all these challenges. 
385. We are pleased to note that in Septem ber 2012, the Japanese Government issued the 
Innovative Strategy for Energy and the Environment. The strategy is based on three basic principles: achieving a society that is not dependent on nuclear  energy, bringing about a green energy revolution 
and establishing a stable supply of energy. 
386. Under its trade policy framework, Japan has in troduced various measures aimed at further 
promoting the liberalization of international trade. At the multilateral level, Japan participates in and 
supports the Doha Development Agenda, and hop es that agreement can be reached in the 
negotiations. Japan considers that its bilateral and regional trade agreements complement the 
multilateral system and are positive developments. 
387. We are glad to see that enhancing transparency is  one of Japan's priorities in policy making. It 
also continues to grant preferential treatment to products from certain developing countries and least 
developed countries under its Generaliz ed System of Preference (GSP) scheme. Preferential treatment 
coverage, which was previously a pproximately 86%, has risen to approximately 98% as defined at the 
tariff line level. The Japanese Government has exte nded the effective period of the GSP scheme to 
31 March 2021. 
388. With regard to Japan's bilateral relations w ith Honduras, Japan is one of our main export 
destinations. Honduras exports products such as coffee, bovine meat, potatoes, aluminium and tobacco, while Japan exports vehicles, engines, medical and dental instruments, medicines and 
communication devices. We hope that this trade relationship continues to grow stronger. 
389. We would like to take this opportunity to thank the Japanese Government for providing our 
country with permanent support through its Intern ational Cooperation Agency (JICA), which has 
implemented technical cooperation projects for education, health, disaster risk management and 
strengthening micro, small and medium ‑sized enterprises. 
NEPAL 
390. Japan is playing an important role in the prom otion of global trade. We appreciate Japan's 
contribution to the rule-based multilateral trading system.    
391. It is encouraging to note that the Japanese economy is recovering after the 'great earthquake'. 
This is mainly due to the appropriate macr oeconomic policy measures implemented by the 
Government of Japan.  
392. We would also like to commend a number of new policy measures adopted by the 
Government of Japan during the review period.  The important measures include, and we note:  WT/TPR/M/276 
 Page 51 
 
 
   Abolition of all ceiling based schemes in its GSP. 
 Measure to further liberalize and promote intern ational trade by lowering non-tariff barriers. 
 Technical assistance particularly for acceding LDCs. 
 Increase in the FDI outflows. 
 Supportive policy for the "One Village One Product" programme. 
 Further extension of GSP scheme till 2021 March. 
 New policy of movement of natural persons ta rgeted to Highly Skilled foreign nationals. 
393. While we welcome the liberal policy in mode four , we would expect that the policy be further 
liberalized to include other than highly skilled ones as well. 
394. All LDCs, including Nepal, are expecting that all LDCs related trade commitments including 
DFQF will be implemented in an effective and timely manner and in their entirety. In this context, we 
appreciate the Government of Japan for the implementation of duty free quota free (DFQF) market 
access for all products originating from LDCs.  
395. Japanese FDI outflow is still concentrated on certain geographic areas and selected sectors. 
As a result, the poorest and resource-constraint count ries are not receiving their due share.  A special 
intensive package to the investors to invest in LDCs in line with the Istanbul Programme of Action 
(IPOA) would help bridge the resource gap in these countries.  
396. Japan is one of the major partners for Ne pal's development initiatives. We commend the 
government of Japan for its continued support in all ar eas. We anticipate that the flow of financial and 
technical co-operation will be enhanced in meeting our trade capacity building needs and 
infrastructure development.   WT/TPR/M/276 
Page 52  
 
  V. REPLIES BY THE REPRESENTATIVE OF JAPAN AND ADDITIONAL 
COMMENTS 
397. Please allow me to dispense with the diplomatic  formulae and go straight into the subject. I 
wish to thank Ambassador Fried, for employing diffe rent statistics to convey his central message that 
Japan matters to the world. Indeed, one of the lesser  known facts that come to my mind is the strength 
of the small and medium sized companies of my country, which was exemplified by the launching 
into orbit of a satellite entirely built by themsel ves about four years ago. Of course, Ambassador 
Fried's accompanying message that Japan can do better in areas that are crucial for its future is well 
taken note.  
398. Listening to the subsequent interventions, my impression was that our trade policy in its broad 
orientation met the approval of the Members, but, as in the case of Ambassador Fried, advices to do 
better in certain specific areas were given to us from Members. 
399. We are the first to want to ensure that the Japanese economy will place itself solidly on the 
path towards a sustainable growth. As for the method to be employed to achieve this, a lively debate 
is actually taking place in Japan and many Members will be delighted to find that within that debate, 
quite similar opinions as theirs are being expressed. 
400. Our delegation, composed of representatives fro m a number of ministries, will report back to 
our headquarters the discussions that took place duri ng this TPR. The record of the proceedings will 
be quickly shared within all br anches of the Japanese government.  
401. I would like to comment on several issues which seem to attract the attention of a relatively 
large number of Members, while our comments on the rest of the issues will be found in the responses 
already supplied on the first day. Answers to fr esh questions will be submitted in due course. 
Regulatory Reform and Fiscal Consolidation 
402. On the first day, many Members expressed their interest in our new Government's economic 
policy, in particular concerning regulatory reform, and urged the implementation of further reforms. 
As I already mentioned, thanks largely to the m easures already in place or announced, the share prices 
in the Tokyo Stock Exchange have risen sharply, and I can tell you that there is a sea change in 
business confidence and consumer mind set.    
403. The Government of Japan is acutely aware, however, that other measures, especially 
belonging to the so-called third arrow category, namely, formulation and implementation of a new 
growth strategy, including substantial structur al reform should follow in a timely manner.  
Regulatory Reform 
404. The Government of Japan has started a new regulatory reform process, based on Prime 
Minister Abe's instruction on January 25 this year, to  adjust domestic regulati ons so that they conform 
to the world's most advanced standards chosen through international benchmark tests. With these 
efforts, Japan aims to implement audacious re forms in the designated priority areas such as 
employment, health/medicine and energy/environment,  and to create the best investment environment 
in the world. At the same time, reforms in other areas are discussed  in the Headquarters for Japan's 
Economic Revitalization. The Abe administration w ill make the best use of available resources, 
including seeking advice from business and academic leaders.  WT/TPR/M/276 
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  Fiscal consolidation 
405. We have also received various comments about th e need for fiscal consolidation. In fact, the 
long-term outstanding debt to GDP ratio of the cen tral and local governments of Japan will reach 
200% at the end of fiscal year 2013. Hence, a mid- to-long term plan for fiscal consolidation is very 
important. Japan is taking measures to halve the prim ary deficit to GDP ratio of the central and local 
governments by fiscal year 2015 from that in fiscal year 2010, and to achieve a primary surplus of the 
central and local governments by fiscal year 2020. As the increase in social  security expenditure, 
caused by ageing population and the diminishing number of children, has become the major factor in the budget deficit, the Japanese government has launched a "Comprehensive Reform of Social 
Security and Tax", in order to secure both stable financial resources for social security and achieve 
fiscal consolidation. Within the framework of this Comprehensive Reform, the Diet passed a bill last 
August raising the consumption tax rate from the current 5% to 10% in two phases by October 2015. 
Trade Policies 
FTAs/EPAs 
406. With regard to our FTAs/EPAs, while criticism was made about the low coverage of certain 
products, I was strongly encouraged by various positive comments from our FTAs/EPAs partners. In 
particular, I was pleased to hear that the EPAs th at I have negotiated as Chief Negotiator, namely 
Chile, ASEAN and Switzerland are functioning well. I would like to point out one aspect of our 
FTAs/EPA's that our Singapore colleague noted, which is  their evolving nature. They "grow" with the 
passage of time. Some may have noticed that in my initial statement, I did not include any mention of 
the TPP. That was for the simple reason that ther e was no government position on the matter the day 
before yesterday and the situation remains the same today.  
Tariff 
407. Some Members raised concerns about non-ad va lorem rates and high rates of duty. I would 
like to reiterate in this regard, th at Japan applies its tariff rates to respective products appropriately, 
taking into consideration the situati on in relevant domestic sectors. It  should also be recalled that our 
current tariff regime results from previous negotiations. 
408. I would also like to state that non- ad valorem  duties are applied to certain products by reason 
of their advantages, namely, in the case of specific duties, the ease and the transparency of calculating 
the duty amounts because they are based on the num ber or weight of imported goods resulting in 
saving of administrative costs.  
Agricultural Policy and Reform 
409. In relation to some Members' comments on our agricultural policy and its reform, I would 
first like to bring to the attention of Members th e fact that Japan is the biggest net-food importing 
country in the world. We depend on imports fo r more than 60% of our food consumption on a 
calorific basis. As an example of extreme depende ncy on imported food, I can cite the case of soybean 
where 93% of our domestic consump tion is imported from abroad, or of wheat where the ratio is 89%. 
We are importing countless other products, providi ng a large food market for many exporters.  
410. As pointed out on the first day, Japanese agricu lture is faced with the challenge of raising 
productivity against the backdrop of its aging farm population, and needless to say that this topic is being hotly debated back home. The structural refo rm promoted by the Government to tackle this 
challenge, include the consolida tion of farmland and the strengthe ning of coordination between the 
agricultural sector and the food manufacturing sector. The policy efforts to date have yielded some WT/TPR/M/276 
Page 54  
 
  tangible results. For example, from 1995 to 2011, the average size of crop farm increased by 30% and 
dairy farm by 60%, and that of hog fa rm by 200%. Further, these efforts are also reflected in the level 
of the current Aggregate Measurement of Suppor t (AMS) having gone down to about 14% of the 
commitment level in our Schedule. 
411. At the same time, we are of the view that a ce rtain level of support continues to be necessary, 
especially for the land-intensive sector, where the size of management is very small compared to other 
countries, as was shown in the presentation by Amb assador Fried. We can also cite the following 
figures to show the enormous discrepancy in the av erage size of a crop farm where it is 2 hectares in 
Japan, 170 in the United States and 2,970 in Australia. 
412. Details of the agricultural policy measures that the new administration is going to introduce 
are yet to be decided, but the government will continue  to promote structural reform in the agricultural 
sector in conformity with the WTO Agreements. 
SPS 
413. On the first day, some Members commented th at Japan's SPS regulations are more stringent 
than the internationally established guidelines. Howe ver, Japan has conducted ri sk assessment prior to 
the implementation of its SPS measures in a transparent manner and on the basis of scientific findings, 
taking into account international standards established by internati onal standard setting bodies, such 
as the Codex, the International Epizootic Office  (OIE) and the International Plant Protection 
Convention (IPPC). Regarding the maximum residue  limits (MRLs), in 2006 Japan established its 
MRLs on the basis of those of the Codex and other major countries. In addition, in order to ensure 
food safety, Japan has introduced safety verificatio n measures for existing food additives, some of 
which used to be approved in Japan without risk assessment. As for the EU comments on food 
additives, Japan is accelerating th e procedures for the designation of internationally used substances. 
Currently, 2 substances out of 15 that ar e being processed have  been designated. 
414. Finally, with regard to the import ban on beef, requests from a number of countries are 
currently being processed, but I wo uld like to point out that the speed with which they will be 
processed depends in part on the required data being a ppropriately submitted in a timely manner by 
the interested country. 
Productivity of Service Sector 
415. Let me say just one word on the service sector , as some members have indicated that the 
productivity in that sector is low in Japan. I have difficulty in reconciling this assertion with what I observe daily in my country where the quality of service is without comparison to what I find 
elsewhere. I have no doubt that those who have vi sited or lived in Japan  can attest to that. 
Government Procurement 
416. Regarding the comments made by the EU on our  government procurement market, especially 
with regard to the operational safety clause, I would like to recall the EU that we have been dealing 
with a certain number of issues including this one through the so-called scoping exercise and that they 
will continue to be dealt with in accordance with the understanding reached within that framework.  
417. Just so that Members have an accurate idea about the bilateral EU-Japan trade in the railroad 
area, I would like to point out that Japan's trade bala nce of railway and related sectors is constantly in 
the negative for Japan, resulting in an annual aver age trade surplus for Europe of 4.1 billion YEN 
during the period 2001 to 2010.   WT/TPR/M/276 
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  418. And, by the way, Japan Rail East, a 100% priv atized company, but still linked in our Annex 
to the GPA because of objection from one Member , has announced, just a few hours ago that it has 
narrowed down its potential supplier of CBTC system to two French compani es. JR East will work 
further with these two companies to arrive  at the final selection of one company. 
Development 
419. It is my understanding that comments from many  Members indicated that Japan is on the right 
track on trade-related development assistance. 
One village, one product 
420. I was particularly pleased to note that the idea wh ich originated in southern Japan in the late 
70s, has now grown to be widely accepted in Asia and in Africa. We will continue to promote this 
idea and interested countries are invited to contact our diplomatic mission or JICA office. This year, 
two major international gatherings will mark our effort in this developmental assistance area: 
TICAD V from 1 to 3 June and the special su mmit of ASEAN+Japan leaders in December to 
commemorate the 40th anniversary of our relationship. 
Conclusion 
421. I would like to conclude my remarks by th anking you, Ambassador Bashir, Ambassador 
Fried, the Secretariat team headed by Richard Eg lin and all the Members for their contribution to 
making this eleventh review of Japan a produc tive one. I look forward to listening to further 
comments from Members. 
DISCUSSANT 
422. I would like to thank His Excellency, Ambassa dor Yokota, Ambassador Otabe and their team, 
both from Tokyo and the Japanese Mission in Geneva. 
423. You've providing timely and comprehensive writte n replies to the over 700 questions received 
from WTO Members. 
424. I am sure Japan will be equally diligent in providing responses to Members follow-up 
questions that may arise.   
Importance of Japan – Trade and Investment 
425. Let me summarize my impressions of the discussion and written documentation.  
426. As noted by Mr. Yokota, the review undersco red the great importance Members attach to 
Japan, both as a leader at the WTO and as an engine of growth and stability to the global economy.  
427. In effect, to summarize in a single sentence, th ere seems to be a common understanding that if 
Japan succeeds, we all stand a better chance of succeeding. 
428. Regarding trade, Members highlighted Japan's continued efforts to reach out to the world 
through an ambitious bilatera l and regional trade agenda. 
429. We have also all recognized that Japan rema ins the world's fourth largest importer and 
exporter of goods and services.  WT/TPR/M/276 
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  430. Beyond the aggregate numbers, for me, the di scussion revealed a broad understanding of the 
important role Japan's plays in global value chains  through the export of key inputs, such as capital 
equipment and technologically advanced components,  which are integral to the success of firms and 
countries across the globe.    
431. Members also expressed appreciation for Japan as an important source of foreign direct 
investment, which fuels the growth and development of many countries around the world.  
Japan as a Global Citizen 
432. The second major theme arising from the review  is Japan's role as a global citizen.  
433. In this regard, we have heard 36 WTO Memb ers (from various geographies and levels of 
development) comment on Japan's unique contributions.   
434. We have learned that Japan's trade policies and practices are outward looking, encouraging 
the development and integration of other countries into global value chains.   
435. We saw that Japan is a leading contributor and champion of Aid-for-Trade.  Members noted 
the important development assistance Japan has provi ded to ASEAN integration and to Africa through 
various programs, including the one underscored by Mr. Yokota:  the "One-Village, One Product" 
scheme.   
436. Many Members also noted the 20th anniversar y of TICAD this coming June, and the ASEAN 
summit in December.  
437. We also heard several complements regarding Jap an's leadership at the WTO, and how Japan 
supports the multilateral system by engaging in ne w approaches to move negotiations forward where 
progress is possible.   
438. In particular, many Members thanked Japan fo r its constructive role in services discussions 
and trade facilitation negotiations, and for its efforts in raising the profile of discussions to expand the 
International Technology Agreement. 
439. Several Members also commended Japan for its  strong adherence to the G20 standstill and 
rollback commitments, and for continuing to reject protectionism and not turning inwards in times of 
economic difficulty.  
440. So on the positive side, this review has highli ghted that Japan is one of the WTO's model 
citizens, with across-the-board engagement to prom ote trade, development, and growth on a global 
scale.  
Concerns 
441. However, a number of concerns were again by many Members (across regions and various 
levels of development); and these c oncerns were both consistent and pe rsistent with respect to specific 
trade-related polices.   
442. I will not review all the concerns Members ra ised in great detail; the Chair's concluding 
remarks, Mr. Yokota's eloquent statement, and the 'main-points' document distributed by the 
Secretariat will provide a more comprehensive summary of all the issues raised.      WT/TPR/M/276 
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  443. However, it is worth noting a few of the most  common concerns in hopes of stimulating 
further discussion.   
444. First, most Members who intervened raised con cerns regarding Japan's agricultural, and to a 
somewhat lesser extent, fisheries policies.   
445. In agriculture, Members highlight ed high average MFN rates, tariff peaks, tariff quotas, price 
support, income support, special safeguards, and other measures, which collectively present barriers 
to access and competition in Japan's agricultural sector. 
446. We also heard pervasive concerns regardi ng various SPS measures, and we heard Members 
call on Japan to improve transparency by providing  science-based justification for its measures, and 
urged Japan to bring itself into alignment with international standards.  But we also heard a 
commitment by Mr. Yokota for Japan to move towards international standards.  
447. A smaller number of Members also raised con cerns regarding Japanese support to its fisheries 
sector.  
448. The second main basket of concerns revolves around the lack of inward investment to Japan.  
I say that because what we have heard from many Members an array of policies that discourages 
investment. 
449. We heard concerns ranging from mode 4 market access and immigration to questions of 
corporate governance and competition, including the i ssue of whether there is a level-playing field in 
financial services, and the several outstanding questio ns related to the privatization of Japan Post.  
450. I can not resist responding to Mr. Yokota's comment on services.  Indeed services standards in 
Japan are impeccable and probably one of, if not the b est, in the world.  But this comes at a cost, one 
that deprives the services sector from the competiti on needed to grow in a global economy.   
451. So in summary, there were general views that  opening up of Japan's agricultural and services 
sectors to increased competition would reduce pri ces and improve efficiency, without sacrificing 
service quality.  
Broader Context 
452. Finally, as Members, Mr. Yokota, and I set out in our statements, Japan's challenges must be 
viewed in a broader context.  
453. Members recognized that Japan faced tremendous  challenges over the review period, which 
has helped spur an ambitious reform ag enda under Prime Minister Shinzo Abe.  
454. Prime Minister Abe has outlined three areas, or 'arrows' for achieving sustainable growth in 
Japan.   
455. We have heard that the government has undert aken dramatic fiscal and monetary polices 
under the first two arrows, and Members have  commended Japan on the initial success of its 
expansionary policies. 
456. But we have also heard from Members that the short term recovery needs to be supported by 
structural reforms to support sustainable growth in the medium to long term.  
457. Mr. Yokota has made a commitment for Japan to move forward on the third arrow.  WT/TPR/M/276 
Page 58  
 
  458. What does that mean for us in this house?  Do  we wait another two years to hear an update on 
Japan's structural reforms, or (as the implementa tion of the 3rd arrow unfolds) many may share my 
view that the Japanese authorities might  consider how best to keep Memb ers informed and updated 
on Japan's progress for achieving structural reforms, in stead of simply waiting for the next TPR.  That 
is something for us all to consider.  
CHINA 
459. The trade policy review is a good opportunity for the Members of WTO to engage in the 
useful exercise of transparency. China attaches impor tance to this exercise and my delegation includes 
representatives from the Capital Beijing and from Ch inese Embassy in Tokyo. Let me take this 
opportunity to express our appreciation to Japan for its timely replies to our written questions.  
460. During the past two weeks, Chinese people had been enjoying the traditional holidays of the 
Lunar New Year. Nevertheless, the trade policy revi ew of Japan attracted much attention of the 
stakeholders in China, including government  agencies and business community. We submitted our 
follow-up written questions concerning Japan's agri culture policy and practices, foreign direct 
investment and some market access issues, for which we believe further clarifications are needed. We 
are expecting replies from Japan in due time.  
461. Apart from those general points we made in the first session of this TPR, China notes that 
Japan is still implementing some contentious anti- dumping measures against certain products from the 
Members of this house. We hope Japan could respect the facts of anti-dumping investigations so as to 
ensure the parties concerned be treated fairly. 
462. As the discussant H.E. Mr. Jonathan T. Fried h as pointed out in his presentation that China is 
the largest market for Japan's exports. The Government  Report of Japan for this review also that "The 
economic interdependence between Japan and China is growing deeper." To follow up on this point, 
here I would like to share with the Members some  recent development of the bilateral trade and 
economic relations betw een China and Japan. 
463. Japan once was China's biggest trading partne r, but since 2004, it has been surpassed 
successively by US, EU, ASEAN and Hong Kong China.  Now Japan is China's fifth largest trading 
partner and the largest importing country of commod ity. According to Chinese statistics, in 2012, the 
total trade value between China and Japan was US $329.45 billion. Japan ranked No. 1 in terms of 
China's utilization of foreign investments by the end of 2012. On the other hand, the overall volume of Chinese investment in Japan is relatively small, but some trends analysis seems to suggest that 
more Chinese enterprises are considering investing in Japan along with the substantial improvement 
of Japan's investment environment. 
464. The year 2012 was the 40th anniversary of the normalization of diploma tic relations between 
China and Japan and both countries have made effort s to seize the crucial opportunity to further 
develop and deepen bilateral economic ties. It is a pity that the bilateral trade declined in 2012, 
especially in the fourth quarter, reflecting dec lining demands in both China and Japan. Despite the 
challenges we face, there are still opportunities. As  China and Japan are respectively the second and 
the third largest economies in the world, our trad e relationship could have significant impact on the 
regional or global economies. China and Japan should maintain a sustainable and robust trade relationship. An improved b ilateral economic cooperation be tween the two countries should 
contribute positively to the regional and global prosperity.   WT/TPR/M/276 
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  EUROPEAN UNION 
465. The EU would like to acknowledge and express its  appreciation for the efforts made by the 
delegation of Japan by presenting the replies to Members, numerous advance questions. We would 
like to thank for the information received this morn ing. The EU has carefully started looking at the 
replies which provide us with valuable informati on that we find necessary to understand the situation 
in Japan on issues that we raised on our first submission. However, in some areas, we would 
appreciate additional clarification regarding certain  measures, in particular those that affect 
investment, offer competition between nationa l operators and third countries operators.  
466. First, regarding Mode 4, we would like to know what exactly is the period of stay granted for 
the entry of different categories of natural persons in Japan. This is in the context of the new policy 
measure introduced in May 2012 for the purpose of promoting the acceptance of more highly skilled 
foreign nationals.  
467. Second, regarding public procurement, we w ould be interested to know more about the 
measures taken by the Government to prevent abu se for procuring entities of slizing up measures, in 
particular when does slizing-up measures are not necessary or are even contreproductive from our 
technical point of view.  
468. Finally, regarding the Pharmaceutical Affair s Law and the postal services reform, we are 
interested in having some further information to alleviate our concerns that we expressed in our 
advance written questions. We would submit these questions in writing and look forward to the 
replies to complete our better unde rstanding of Japan's trade policy. 
UNITED STATES 
469. The United States wishes to than k Japan for its efforts to prep are this Trade Policy Review 
and for its responses to our advance written questi ons and the large number of other advance written 
questions that they received. We have some follo w-up questions which we have submitted in writing. 
We remain interested in certain information regard ing advance rulings that we had requested in our 
initial submission. We also have some follow-up qu estions in the area of agriculture. And finally, 
Japan has indicated that notifications are under wa y on direct payment programme and several other 
crops and the U.S. looks forward to these notifications.  
CANADA 
470. Thank you to the Japanese delegation for their very comprehensive answers. We have some 
follow-up questions in the areas of TBT, Gove rnment procurement and agriculture and have 
submitted them in writing to the Secretariat.  We look forward to Japan's responses.  WT/TPR/M/276 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
471. This eleventh Trade Policy Review of Japan h as provided an excellent opportunity for all of 
us to improve our understanding of Jap an's trade and related policies.  Our discussions have benefited 
from the active participation of the Japanese delega tion led by Ambassador H.E. Mr. Jun Yokota from 
Tokyo and Ambassador H.E. Mr. Yoichi Otabe from Geneva, the informative and thought-provoking 
presentation and interventions by the discussant, Amb assador H.E. Mr Jonathan Fried of Canada, and 
the many interventions by Members.  Japan's answers to the large number of questions, made 
available before the beginning of this meeting, are well appreciated. 
472. Members look forward to a swift recovery of Japan's economy, which will enable it to 
become once again an engine for economic growth in  the world economy.  Many remarked that Japan 
is still the third largest economy in the world and as such it plays a vital role for all WTO Members.  
In addition, many noted that the impact of the Great East Japan Earthquake and flood in Thailand 
underlined Japan's deep integration into the gl obal supply chain.  Members commended Japan for 
avoiding protectionism, particularly in the af termath of the global financial crisis.   
473. Members felt that the accommodative macroecono mic policies being pursued, particularly by 
the new government, can help Japan to recover from the recent economic downturn, but that they 
need to be accompanied by far-reaching structural refo rms.  Trade liberalization can play a key role in 
these reforms, to stimulate competition and impr ove productivity, especially in agriculture and 
services. 
474. Members praised Japan for its active role in  the multilateral trading system, including its 
constructive participation in the trade facilitation and services negotiations and efforts to expand the 
Information Technology Agreement and revise the Agreement on Government Procurement.  They 
looked to Japan, as one of the world's largest ec onomies and traders, for leadership in finding new 
ways to make progress for the conclusion of the on-going Doha Development round. 
475. Members commended Japan for its financial and technical assistance (including its Official 
Development Assistance and One Village, One Product initiatives), as we ll as its contribution to aid 
for trade.  They expressed appreciation for preferential market access provided by Japan by the 
extension of its Generalized System of Preferen ces (GSP) and duty-free quota-free (DFQF) treatment. 
476. Members noted Japan's increasing involvement in regional trading arrangements (RTAs), 
including the recent entry into force of its Economic  Partnership Agreements with India and Peru and 
its interest in the Trans-Pacific Partnership agre ement.  Some urged Japan to expand the scope of 
these agreements to cover more fully all sectors of trade, including agriculture.  
477. Members looked forward to steps to remove re maining impediments to inward foreign direct 
investment, which it was noted remains relatively low in comparison with other OECD countries. 
478. While noting Japan's relatively liberal trad e regime for manufactured goods and some 
services, Members suggested the following areas for a ttention from the Japanese authorities.  We have 
taken careful note of the comments provided t oday by Ambassador Yokota in this regard: 
 Tariffs and other border measures:   Members noted that although Japan's tariff is low, it 
 remains complex.  Products of export interest to developing countries, notably agricultural  products, textiles and clothing, leather produc ts and footwear, continue to encounter 
 significant tariff peaks, and state trading. 
 
Sanitary and phytosanitary (SPS) measures,  standards, and technical regulations:   
 Concern was raised over the complexity and lack of transparency, according to some, of  WT/TPR/M/276 
 Page 61 
 
 
   Japan's SPS measures as well as standards and technical regulations.  Some Members 
 questioned the appropriateness of Japan's risk  assessment practices regarding SPS measures.  
 Concerns were raised in approval procedur es for inter alia food a dditives, pharmaceuticals 
 and medical devices.  Members encouraged Jap an to increase its utilization of international 
 standards in these areas in particular.  
 Government procurement:   concern was raised about certain restrictions on foreign access 
 to Japan's government procurement.  Members encouraged Japan to en sure transparency and 
 level-playing field in this area. 
 Agriculture and fisheries:   Members expressed concern about the long-standing restrictions 
 on Japan's domestic market for food, partic ularly border measures and the relatively high 
 level of overall domestic support for agriculture .  Some Members encouraged Japan to reduce 
 the level of its fisheries subsidies. 
 Energy and services:   Members encouraged Japan to continue reforms to enhance 
 competition in energy and services sectors.  Th ey encouraged Japan to ensure a level playing 
 field in its major services markets, particular ly insurance, telecommunications, and medical 
 and health services.  In this context, Member s also raised concerns about whether the recent 
 revision of legislation regarding Japan Post w ill ensure a level playing field for the insurance 
 market.  
479. Before closing, I wish to highlight the high level of transparency of its trade policies and 
measures that Japan has demonstrated in the prepar ation and conduct of this TPR.  This has enabled 
the Secretariat to provide comprehensive background  information for the review, and it has enriched 
the value of the exercise for all Members. 
480. I would like to thank the Japanese delegation fo r its active participation in this Review, 
including its written responses provided before this meeting.  We look forward to receiving remaining 
answers within one month.  The keen interest shown by Members, as reflected in the large number of advance written questions, numerous interventions, and high attendance, shows the importance they 
attach to Japan's leadership role in the multilateral trading system.  I am encouraged that the statement 
by Japan indicated its willingness to promote trade liberalization and its commitment to contributing 
to strengthening the multilateral trading system.  In closing, I would like to thank all delegations for 
the successful review of the trade policy of Japan. 
__________