WT/REG300/1/Rev.1  
30 September 2013  
(13-5181)  Page: 1/44  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN JAPAN AND INDIA 
(GOODS AND SERVICES) 
Report by the Secretariat 
Revision 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Japan and India has been drawn up by the WTO Secretariat on its own responsibility 
and in full consultation with the Parties. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to 
Mr. Peter Milthorp (tel: +41 22 739 5016). Any statistical questions arising from this report may be addressed to Ms. Rowena Cabos (tel: +41 22 739 5185). 
 
 
 WT/REG300/1/Rev.1 
 
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TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
1.2   Trade in servic es and inve stment ................................................................................. 6  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 7  
2.1   Background  Information ............................................................................................. 7  
3   PROVISIONS ON TRADE IN GOODS ............................................................................. 8  
3.1   Import duties and charges, and quantitative restrictions ................................................. 8  
3.1.1   General provisions .................................................................................................. 8  
3.1.2   Liberalization of  trade and ta riff lines ......................................................................... 9  
3.1.3   Liberali zation schedule............................................................................................ 10 
3.1.3.1   Japan ............................................................................................................... . 10 
3.1.3.2   India ............................................................................................................... .. 11 
3.1.4   Tariff rate quotas ................................................................................................... 12 
3.2   Rules of origin .......................................................................................................... 12 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 14 
3.4   Regulatory provisions on trade in goods ....................................................................... 14 
3.4.1   Standards ............................................................................................................. 14 
3.4.1.1   Sanitary and phytosanitary measures, Technical Barriers to Trade .............................. 14 
3.4.2   Safeguard mechanisms ........................................................................................... 15 
3.4.2.1   Global safeguards ............................................................................................... 15 
3.4.2.2   Bilateral safeguards ............................................................................................. 15 
3.4.2.3   Special safeguards .............................................................................................. 15 
3.4.2.4   Balance of payments safeguards ........................................................................... 16 
3.4.3   Anti-dumping and countervailing measures ............................................................... 16 
3.4.4   Subsidie s and State-aid .......................................................................................... 16 
3.4.5   Customs-re lated procedures .................................................................................... 16 
3.5   Sector-specific provis ions on trad e in goods ................................................................. 16 
4   PROVISIONS ON TRADE IN SERVICES AND IN VESTMENT ......................................... 16  
4.1   Scope and definitions ................................................................................................ 16 
4.2   Denial of benefits ..................................................................................................... 17 
4.3   General provisions on trade in services and investment .................................................. 18 
4.3.1   Mark et acce ss ....................................................................................................... 18 
4.3.2   National and MFN tr eatment .................................................................................... 18 
4.3.3   Performance requ irements (investment) ................................................................... 19 
4.3.4   Movement of  natural persons .................................................................................. 19 
4.3.5   Other measur es on inve stment ................................................................................ 23 
4.4   Liberalization commitments ........................................................................................ 27 
4.4.1   India .................................................................................................................... 27 WT/REG300/1/Rev.1 
 
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  4.4.2   Japan ................................................................................................................... 29 
4.5   Regulatory provisions ................................................................................................ 31 
4.5.1   Domestic regulation ............................................................................................... 31 
4.5.2   Recognition ........................................................................................................... 31 
4.5.3   Subsidies .............................................................................................................. 31 
4.5.4   Safeguards ........................................................................................................... 31 
4.5.5   Other ................................................................................................................. .. 32 
4.6   Sector specific pr ovisions on servic es .......................................................................... 32 
4.6.1   Financial services ................................................................................................... 32 
4.6.2   Telecommunications services ................................................................................... 32 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 33  
5.1   Tran sparency ........................................................................................................... 33 
5.2   Current payments and capital movements .................................................................... 33 
5.3   Exceptions ............................................................................................................... 33 
5.4   Accession and withdrawal .......................................................................................... 34 
5.5   Institutio nal framework ............................................................................................. 34 
5.6   Disput e settlement ................................................................................................... 34 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 36 
5.8   Government  procurement .......................................................................................... 37 
5.9   Intellectual property rights ......................................................................................... 38 
5.10   Other .................................................................................................................. .. 38 
5.11   Competition ........................................................................................................... 38 
5.12   Improvement of Business envi ronment ...................................................................... 38 
5.13   Co-o peration .......................................................................................................... 38 
5.14   Envi ronmen t .......................................................................................................... 39 
ANNEX 1 ....................................................................................................................... . 40 
 WT/REG300/1/Rev.1 
 
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Key Facts 
 
Parties to the Agreement:  India and Japan  
 
Date of Signature:   16 February 2011  
 
Date of Entry into Force:  1 August 2011  
 
Date of Notification:   14 September 2011  
 
Full implementation:   Japan 2026 
     India 2021 
 
 
1  TRADE ENVIRONMENT 
1.1.  The Comprehensive Economic Partnership Agreement between Japan and India is Japan's 
12th ("the Agreement") RTA as notified to the WTO and its first RTA with an Asian Member which is 
not a member of the Association of South-east Asian Trading Nations (ASEAN). It is India's 15
th notification to the WTO and its first with a developed Member in the region.1 
1.2.  The Parties to the Agreement have very di fferent economies in terms of size, profile and 
development. In 2010 Japan's GDP was estimated at US$5,459 trillion, and India's at US$1,727 trillion. In terms of trade, Japan's to tal merchandise exports and imports totalled 
US$770 billion and 694 billion respectively (excluding intra-EU trade), making it the world's 
4
th largest export and importer in 2010. India's total merchandise exports and imports totalled 
US$219 billion and 350 billion respectively, making it the world's 20th largest exporter and 
13th largest importer (excluding intra EU trade).  
1.3.  In commercial services, in 2010 Japan was ranked 4th in export of services (US$139 billion) 
and 4th in import of services (US$156 billion) (excluding intra EU trade). India's exports of 
commercial services (excluding intra EU trade) totalled US$123 billion, and imports US$116 billion, ranking it 5
th globally in both exports and imports.  
1.4.  Manufactures dominate Japan's trade (88.4% of exports, 50% of imports). Japan's imports of 
fuels and mining products represent 36.7% of its imports. India's exports are dominated by 
manufactures (63.9%) and fuels and mining products (25.4%). India's main imports are more 
evenly split between manufactures (44.5%) and fuel s and mining products (38.8%). The trade to 
GDP ratios of the Parties are 30.9 for Japan and 47.7 for India. 
1.1  Merchandise trade 
1.5.  Trade between the Parties has grown steadily over the past 10 years. In 2010 India was 
Japan's 24th largest import market (US$5.7 billion) an d 16th export market (US$9 billion). In the 
same year Japan was India's 13th largest import market (US$8.3 billion) and 7th export market 
(US$4.8 billion).2  
1.6.  Recent developments in global and intra-party trade are presented in Charts 1.1 and 1.2. 
Over the period 2000-2010 India has had a growing deficit in global trade while Japan's steady surplus was reduced in 2008 and 2009 due to the gl obal economic slowdown. In bilateral trade, 
India has also run a growing deficit with Japan throughout the period.  
                                               
1 WTO RTA Information System. 
2 UNSD, Comtrade Database, excluding intra-EU trade. WT/REG300/1/Rev.1 
 
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  Chart 1.1 - India: Merchandise trad e with world and Japan, 2000-2010 
051015202530
050100150200250300350400450500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionImports from Japan
Exports to JapanTotal imports
Total exportsLeft hand scale: Right hand scale:
 
Source: UNSD, Comtrade Database. 
 
Chart 1.2 - Japan: Merchandise trade with world and India, 2000-2010 
05101520
0100200300400500600700800900
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionImports from India
Exports to IndiaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
Source: UNSD, Comtrade Database. 
 
 1.7.  Chart 1.3 shows the composition of global and bilateral trade between the Parties during the 
three year period 2008-2010 by HS section. India's three largest categories of global exports 
(minerals, precious stones and textiles accounted for 47.4% of its global exports in 2008-2010). Machinery, base metals and chemicals comprise d 70.8% of India's main imports from Japan. 
Japan's three largest categories of global exports (machinery, vehicles and base metals) comprised 
69.2% of global exports between 2008-2010. Japan's 3 largest imports from India (minerals, chemicals and prepared foods) comprised 60.2% of total imports from India.  WT/REG300/1/Rev.1 
 
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Chart 1.3 India and Japan: product compositi on of merchandise trade, annual average 
(2008-2010) 
20.3 
14.7 
12.4 
10.1 9.3 8.4 6.2 4.4 2.6 2.3 1.7 1.2 6.3 
43.3 
8.8 8.1 7.1 7.1 6.8 6.5 4.5 2.9 4.9 36.6 
23.5 9.1 7.3 5.1 5.0 2.1 1.4 1.2 1.2 7.5 
35.2 
16.6 15.3 9.1 6.1 4.8 2.5 1.6 1.5 1.2 1.2 5.0 
35.1 
19.4 7.2 4.8 4.8 3.5 3.2 3.2 3.1 2.9 2.4 2.0 8.4 45.5 
16.0 9.3 9.2 5.3 5.1 3.8 5.8 India's imports from Japan
Japan's imports from IndiaPer cent
Total:  US$ 7 billion
Total:  US$ 5 billionTotal:  US $284 billion
Total: US $ 669 billionTotal:  US $ 711 billion
Total:  US$ 193 billionJapan's global exports
India's global exportsIndia's global imports
Japan's global imports
Animal 
products
Vegetables
Fats and oilsPrepared 
foods
Minerals
ChemicalsPlastics, 
rubber
Raw hides
TextilesStone, 
cement
Precious 
stones
Base metalsMachinery
Vehicles
OpticalOtherMiscellaneous
 
 
1.2  Trade in services and investment 
1.8.  Table 1.1A shows India and Japan's total commercial services trade during 2008-2010. Japan 
maintained a global deficit over the period, but a bilateral surplus. India had a global surplus over the period, a bilateral surplus in 2008 but deficits in 2009 and 2010. Japan's main services sectors 
comprised transport, royalty and service fees and construction. India's main services sectors were 
transport, travel and financial services.  
1.9.  Table 1.1B also indicates trends in foreign direct investment ("FDI"). Japan was a net global 
exporter of FDI during the period, with inward in vestment averaging an increase over the period. 
Japanese FDI in India increased over the period. India was a net global recipient of FDI over the period. Indian FDI in Japan remained at low levels.  
Table 1.1 Trade in commercial services and in vestment with India and world, 2008-2010 
A. Japan 
Unit: in billion US$ 
Service Item World India 
Exports Imports Exports Imports 
2008 2009 2010 2008  2009  2010  2008 2009  2010 2008 2009  2010  
Total commercial services 148.7 128.2 141.3  169.4  148.7  157.4  1.6 1.3 2.1 0.8 0.7  0.7 
Transportation services 47.0 31.6 38.9 54.1 40.5 46.4 0.4 0.2 0.3 0.1 0.1 0.1 
Travel 10.8 10.3 13.2  27.9 25.1 27.9 0.1 0.1 0.1 0.1 0.1  0.1 
Communication services  0.7 0.7 0.7 1.1 1.1 1.0 0.0 0.0 0.0 0.0 0.0 0.0 
Construction 13.7 12.4 10.6  11.3 11.4 7.9 0.2 0.2 0.1 0.2 0.1  0.1 
Insurance services    0.9 0.9 1.3 5.1 5.1 6.8 0.0 0.0 -0.0 0.0 0.0 -0.0 
Financial services 5.5 4.8 3.6  4.0 3.1 3.1 0.0 0.0 0.0 0.0 0.0  0.0 
Computer and 
information services 0.9 0.9 1.0 4.0 3.8 3.6 0.0 0.0 0.0 0.1 0.1 0.1 WT/REG300/1/Rev.1 
 
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  Service Item World India 
Exports Imports Exports Imports 
2008 2009 2010 2008  2009  2010  2008 2009  2010 2008 2009  2010  
Royalties and licence 
fees 25.7 21.7 26.7  18.3 16.8 18.8 0.4 0.4 0.7 0.0 0.0  0.0 
Other business services 41.1 42.5 42.5 40.4 38.9 39.2 0.6 0.4 0.8 0.2 0.3 0.2 
Personal, cultural and 
recreation services 0.2 0.2 0.1  1.2 1.1 0.9 0.0 … … 0.0 … 0.0  
 World India 
 Outward Inward Outward Inward 
 2008 2009 2010 2008  2009  2010  2008 2009  2010 2008 2009  2010  
Total FDI stocks 680.3 740.9 831.1 203.4  200.1  214.9  8.25 8.84 12.59 0.02 0.03 0.04 
Total FDI flows 128.0 74.7 56.3 24.4 11.9 -1.3 … … … … … … 
 
Note:  Exchange rates used for converting data from Japanese yen to US dollar were: 103.359 (2008), 
93.57 (2009) and 87.78 (2010). 
 Source: Data from national authorities and UNCTAD. 
 
Table 1.1A Trade in commerc ial services and investment  with Japan and world, 
2008-2010 
B. India  
Unit: in billion US$ 
Service Item World Japan 
Exports Imports Exports Imports 
2008 2009  2010  2008  2009  2010  2008  2009  2010 2008 2009  2010  
Total commercial services 106.7 92.6  123.3  87.8 80.3 116.1  2.07 0.79 1.09 1.41 1.12  1.70 
Transportation services 11.6 11.0 13.2 42.7 35.4 46.4 0.03 0.02 0.03 0.16 0.10 0.20 
Travel 11.8 11.1  14.2 9.6 9.3 10.6 0.02 0.02 0.02 0.04 0.03  0.05 
Communication 
services 2.5 1.5 1.4 1.0 1.3 1.2 0.01 0.00 0.00 0.00 0.00 0.00 
Construction 0.8 0.8  0.5 0.7 1.1 1.0 0.02 0.01 0.01 0.01 0.02  0.02 
Insurance services    1.6 1.5 1.8 4.3 4.0 5.0 0.02 0.01 0.01 0.01 0.01 0.01 
Financial services 4.3 3.7  6.0 3.5 3.8 6.8 0.02 0.01 0.13 0.11 0.08  0.32 
Computer and 
information services … 33.8 … 3.8 2.3 2.5 0.15 0.09 0.07 0.05 0.02 0.02 
Royalties and licence 
fees 0.1 0.2  0.1 1.5 1.9 2.4 0.00 0.00 0.00 0.26 0.35  0.48 
Other business 
services … 28.5 … 20.3 21.0 39.7 1.79 0.62 0.81 0.75 0.50 0.62 
Personal, cultural and 
recreation services 0.7 0.5  0.3 0.3 0.3 0.5 0.00 0.00 0.00 0.00 0.00  0.00 
 World Japan 
 Outward Inward Outward Inward 
 2008 2009  2010  2008  2009  2010  2008  2009  2010 2008 2009  2010  
Total FDI stocks 63.3 79.2 92.4 125.2  167.0  197.9  … … … … … … 
Total FDI flows 19.4 15.9 14.6 42.5 35.6 24.6 0.03 .001 .002 … 1.0 1.3 
 
Source: IMF, UNCTAD and data  from national authorities. 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 2.1.  The Agreement was signed by the Parties on 16 February 2011 and entered into force on 
1 August 2011. It was notified to the WTO pursuant to Article XXIV:7(a) of GATT 1994 and 
Article V:7 of the GATS on 14 September 2011.
3 
2.2.  The text of the Agreement, and its Anne xes are available from the following websites: 
India:  http://www.commerce.nic.in  
 
Japan:  http://www.mofa.go.jp/region/asia -paci/india/epa201102/index.html  
 
2.3.  The Agreement is composed of 15 Chapters, and 10 Annexes.  
                                               
3 WT/REG300/N/1 and S/C/N/601. WT/REG300/1/Rev.1 
 
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Box 2.1 
Preamble 
Chapter 1   General Provisions  
Chapter 2   Trade in Goods 
Chapter 3   Rules of Origin 
Chapter 4   Customs Procedures  
Chapter 5   Technical Regulations, Standards and Conformity Assessment Procedures,Sanitary and 
   Phytosanitary Measures 
Chapter 6   Trade in Services  
Chapter 7   Movement  of Natural Persons 
Chapter 8   Investment 
Chapter 9   Intellectual Property 
Chapter 10   Govern ment Procurement 
Chapter 11   Competition 
Chapter 12   Improvement of Business Environment 
Chapter 13   Cooperation 
Chapter 14   Dispute Settlement 
Chapter 15   Final Provisions 
 
Annex 1   Schedules in relation to Article 19 (Chapter 2) 
Annex 2   Product Specific Rules (Chapter 3) 
Annex 3   Operational Certification Procedures (Chapter 3)  
Annex 4   Financial Services (Chapter 6) 
Annex 5   Telecommunications Services (Chapter 6) 
Annex 6   Schedules of Specific Commitments in relation to Article 62 (Chapter 6) 
Annex 7   Specific Commitmen ts for the Movement of Na tural Persons (Chapter 7) 
Annex 8   Reservations Measures refe rred to in Article 90.1 (Chapter 8) 
Annex 9   Reservations Measures refe rred to in Article 90.2 (Chapter 8) 
Annex 10   Expropriation (Chapter 8) 
 
Source:   WTO Secretariat, based on the Agreement.  
 
3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 3.1.  Each Party accords national treatment to the goods of the other Party in accordance with 
Article III of the GATT 1994 (Article 18 of the Agreement). Under Article 19 tariff elimination or 
reduction is to be carried out in accordance with the Parties' Schedules in Annex 1 to the Agreement which specifies the various categories of products whose tariffs are to be reduced over 
the transition period before being eliminated exce pt as otherwise provided for in the Agreement. 
Tariff reductions are to be based on the Harmon ized System as amended on 1 January 2007. The 
base rate for tariff reductions is the applied MFN tariff on 1 April 2007 for India. The base rate for Japan's tariff reductions is the applied MFN tariff or the GSP rate in force on 1 April 2007 as 
specified in column 3 in Japan's Schedule.
4The first tariff reduction took place on the date of entry 
into force of the Agreement; the following reductions will take place on an annual basis on 1 April, with some exceptions.
5 Paragraph 2 of Article 19 furthermore indicates that where the MFN applied 
rate is lower than the rate of customs duty to be  applied under this Annex, the Parties shall apply 
the lower of the two rates. 
3.2.  Article 22.1 of the Agreement provides that  the Parties shall not introduce or maintain any 
prohibitions or restrictions other than customs duty upon the import or export of any good to the 
other Party if it is inconsistent with the WTO Agreement. Article 22.2 provides that if a Party introduces a prohibition or restriction pursuant to the WTO Agreement it shall provide detailed information on the measure to the other Party as s oon as possible after the measure is introduced.  
                                               
4 For Japan this is the applied MFN tariff or the GSP rate on or after 1 April 2007. According to the 
General note 4 to Annex 1 to the Agreement, the base rate for tariff reduction is the applied MFN tariff on 
1 April 2007.   
5 For India after the first reduction on the date of  entry into force of th e Agreement, tariffs on 
HS 84082020 and 87084000 are to be reduced annually on 1 January (Annex I, paragraph 6(b)). WT/REG300/1/Rev.1 
 
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  3.3.  No quantitative restrictions or import prohibitions are described in the Parties Schedules to 
Annex 1 of the Agreement. 
3.1.2  Liberalization of trade and tariff lines 3.4.  Tables 3.1A and 3.1B show tariff and trad e liberalization by Japan and India, respectively 
under the Agreement.  
3.5.  In 2011 3,678 lines in Japan's tariff were already duty free on an MFN basis, corresponding 
to 72.1% of its imports from India during the period 2008-2010.
6 As a result of the Agreement, 
Japan liberalized a further 3,476 lines (39.3% of the tariff) for imports from India, covering 20.4% 
of its imports from India. By 2018, eight years fo llowing entry into force of the Agreement, Japan 
would have liberalized an additional 46 tariff lines. By the end of implementation in 2026 88.9% of its tariff will be duty free for imports from  India, covering 97.7% of its imports. 
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade A. Japan
 
Duty phase-out period Number of 
lines % of total lines 
in Japan's tariff 
schedule Value of Japan 
imports from India 
(2008-2010) in 
million US$ % of Japan's 
total imports 
from India 
2008-2010 
MFN duty free (2011) 3,678 41.6 3,490.2 72.1 
2011 3,476 39.3 989.1 20.4 
2018 46 0.5 1.3 0.0 
2021 620 7.0 236.9 4.9 
2026 40 0.5 10.9 0.2 
Remain dutiable 986 11.1 113.2 2.3 
Total 8,846 100.0 4,841.5 100.0 
 
Note: For tariff lines subject to TRQs at the MFN level, only the out-of-quota duty is included in the 
tariff-related calculations. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided by Japan and WTO-IDB. 
 
3.6.  In 2011, 340 lines in India's tariff were already duty free on an MFN basis, corresponding to 9.2% of its imports from Japan during the period 2008-2010
7. As a result of the Agreement, India 
liberalized a further 1,828 tariff lines (16.2% of th e tariff) for imports from Japan, covering 2.6% 
of its imports from Japan. By 2021, eleven years fo llowing entry into force of the Agreement, (and 
the end of the implementation period for India) India would have liberalized an additional 7094 
tariff lines, representing 62.9% of tariff lines and 60.4% of India's historical imports from Japan. 
By 2021, 1508 lines will remain dutiable, representing 13.4% of India's tariff and 16.2% of India's imports from Japan.   
Table 3.1 Tariff elimination commitments under the Agreement and corresponding 
average trade 
B. India
 
Duty phase-out 
period Number of 
lines % of total lines in 
India's tariff 
schedule Value of India 
imports  
from Japan 
(2008-2010) in 
million US$ % of India's 
total imports 
from Japan 
2008-2010 
MFN duty free 
(2011) 340 3.0 708.6 9.2 
2011 1,828 16.2 199.2 2.6 
2016 508 4.5 881.9 11.5 
2018 2 0.0 5.5 0.1 
                                               
6 Japan's applied MFN tariff in 2011 contained 8,846 lines at the HS 9 digit level.  Of these 8,246 had 
ad valorem  rates of duty, 202 lines had specific duties, 32 had compound and 318 had mixed rates of duty.  
48 lines carried other rates of duty. 
7 India's applied MFN tariff in 2011 contains 11,280 lines at the HS 8-digit level. Of these, 10,579 have 
ad valorem  rates of duty (93.8%), 4 tariff lines with specific  duties (0.04%), 693 (6.14%) with mixed rates of 
duties and 4 tariff lines with other duties (0.04%). WT/REG300/1/Rev.1 
 
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Duty phase-out 
period Number of 
lines % of total lines in 
India's tariff 
schedule Value of India 
imports  
from Japan 
(2008-2010) in 
million US$ % of India's 
total imports 
from Japan 
2008-2010 
2021 7,094 62.9 4,633.6 60.4 
Remain dutiable 1,508 13.4 1,238.6 16.2 
Total 11,280 100.00 7,667.3 100.0 
 
Note: Based on the HS 2007 nomenclature.  Source:  WTO estimates based on da ta provided by India, informatio n from the Agreement, WTO-IDB and 
UNSD, Comtrade database. 
 
3.1.3  Liberalization schedule 
3.1.3.1  Japan 
3.7.  Further details of Japan's tariff liberalization under the Agreement according to HS section is 
provided in Table 3.2 and by HS Chapter in Chart 3.1 below. The bulk of liberalization took place 
with the entry into force of the Agreement in August 2011, when tariffs on 3,476 lines were 
eliminated. In 2021 (ten years after entry into force) a further 620 lines will be duty free. By the 
end of implementation in 2026 the remaining dutiable tariff lines will be mainly in Sections I, II and IV. Chart 3.1 below shows that for the HS Chapters for which tariffs remain after the end of implementation, the average preferential duties are the same as the corresponding MFN average. 
Tariff averages are especially high in sugars and sugar confectionary (HS 17) (42.4%), cereals 
(HS 10) (35%), dairy products (HS 4) (25.6%) as well as other edible preparations (HS 21) (24.6%). 
Table 3.2 Japan: Tariff elimination under the Agreement, by HS section
 
HS 
section MFN 
average
% Total 
No. of 
lines MFN 
duty-free 
(2011) Number of duty-free lines No. of 
lines 
remaining 
dutiable Avg. Final Tariff 
(Dutiable) % 2011 2018 2021 2026 
I 7.3 518 112 35 11 76  284 12.2 
II 6.1 530 166 126 9 108 15 106 19.9 
III 3.8 86 20 22 1 6  37 12.9 
IV 16.4 763 79 45 3 183 25 428 22.6 
V 0.5 216 163 24  28  1 - 
VI 2.3 1,070 401 656 1 3  9 13.5 
VII 2.4 296 103 167 12 14    
VIII 10.5 193 65 3  98  27 17.8 
IX 3.4 263 94 83 1 45  40 7.0 
X 0.0 169 169       
XI 6.4 1,981 87 1,888    6 - 
XII 16.4 104 6 23  27  48 20.2 
XIII 1.2 164 99 63  2    
XIV 1.3 79 57 17  5    
XV 0.9 852 615 210 8 19    
XVI 0.0 918 911 7      
XVII 0.1 146 145 1      
XVIII 0.2 278 269 6  3    
XIX 6.9 24  24      
XX 1.7 189 110 76  3    
XXI 0.0 7 7       
Total 4.7 8,846 3,678 3,476 46 620 40 986 18.0 
 
- specific duties  Note: For tariff lines subject to TRQs at the MFN level, only the out-of-quota duty is included in the 
tariff-related calculations; for the calculation of averages, specific duties are excluded and the 
ad valorem  parts of alternate rates are included. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided by Japan. WT/REG300/1/Rev.1 
 
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  Chart 3.1 Japan: Average of du tiable rates, by HS Chapter 
01020304050
1234789 1 0 1 1 1 2 1 3 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 9 3 5 4 1 4 2 4 3 4 4 5 0 6 4HS Chapter
MFN PreferentialAverage rate of duty (%)  
 
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. For HS Chapters 25 and 50 the average tariffs only contain specific duties. 
 Source: WTO Secretariat estimates based on the data provided by Japan. 
 
3.1.3.2  India 
3.8.  Details of India's tariff liberalization under the Agreement according to HS Section are set out 
in Table 3.3 and by HS Chapter in Chart 3.2 below. Although India liberalized 1,828 tariff lines in 2011 when the Agreement entered into force, the bulk  of it's liberalization is backloaded to 2021, 
when tariffs on 7,094 items are scheduled to be eliminated. At the end of the implementation 
period the remaining dutiable tariff lines will be mostly in Sections I-VII, XVI and XVII. The final 
average tariffs on dutiable tariff lines will be 26 .7%, ranging from 8.1 in Section XVI (machinery 
and mechanical appliances) to74.3% in Section IV (prepared foodstuffs). Chart 3.2 shows that 
although both agricultural and industrial products will remain subject to tariffs after the Agreement 
is fully implemented, the highest average remaining tariffs are found in agricultural products especially beverages and spirits (HS 22) (146.2%), edible preparations (HS 21) (113.1%), coffee 
and tea (HS 9) (67.9%) and cereals (HS 10) (58%). As for Japan for lines remaining subject to 
duties once the Agreement is fully implemente d, there is no difference between the average 
preferential and MFN tariffs. 
Table 3.3 India: Tariff elimination under the Agreement, by HS section
 
HS 
section MFN 
average
% Total 
No. of 
lines MFN duty-
free 
(2010) Number of duty-free lines No. of lines 
remaining 
dutiable Avg. Final Tariff 
(Dutiable) 
% 2011  2016 2018 2021 
I 30.9 349     243 106 32.5 
II 35.5 558 23  6  342 187 50.9 
III 17.7 119 23    35 61 20.2 
IV 46.8 406     244 162 74.3 
V 6.0 313 8 2  2 287 14 9.5 
VI 8.5 2,234 4 3   1,945 282 8.8 
VII 9.6 585  5   315 265 10.4 
VIII 7.1 134 35    99   
IX 9.1 193     192 1 10.0 WT/REG300/1/Rev.1 
 
- 12 - 
 
HS 
section MFN 
average
% Total 
No. of 
lines MFN duty-
free 
(2010) Number of duty-free lines No. of lines 
remaining 
dutiable Avg. Final Tariff 
(Dutiable) 
% 2011  2016 2018 2021 
X 9.2 272 14  3  240 15 10.0 
XI 9.9 1,870 14 1,795    60 1 30.0 
XII 10.0 105     77 28 10.0 
XIII 9.5 263     245 18 8.1 
XIV 7.0 91 23    68   
XV 7.0 1,259 2  493  759 5 9.0 
XVI 7.2 1,662 151 23 6  1,235 247 8.1 
XVII 29.6 263 10    144 109 54.6 
XVIII 8.1 353 25    322 6 8.3 
XIX 10.0 20     20   
XX 9.7 214 5    208 1 10.0 
XXI 8.2 17 3    14   
Total 12.4 11,280 340 1,828  508 2 7,094 1,508 26.7 
 
Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided  by India and information from the Agreement. 
 
Chart 3.2 India: Average of du tiable rates, by HS Chapter 
050100150
01
020304
06
0708
09
1011
12
1516
17
1819
20
2122
23
24050100150
25
27
28
29
32
33
34
35
3638
39
40
44
48
50
64
68
69
70
73
74
8485
87
90
94HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
 Source: WTO Secretariat estimates based on the da ta provided by India and information from the 
Agreement. 
 
3.1.4  Tariff rate quotas 
3.9.  There are no TRQs specified in the Agreement.  
3.2  Rules of origin 3.10.  Chapter 3, Articles 26-41 and Annex 2 to the Agreement set out rules governing the 
determination of origin of a good. Article 26 sets out the definitions used in the Chapter. Article 27 WT/REG300/1/Rev.1 
 
- 13 - 
 
  provides that a good shall qualify as an originating good when it is (a) wholly obtained or produced 
entirely in the Party as provided for in Article 28, or (b) although not wholly obtained or produced entirely in the Party satisfies the requirements of Article 29 (goods produced using non-originating materials).  
3.11.  Article 28, paragraphs (a)-(l) set out the conditions under which goods will be deemed to be 
wholly obtained or produced in a Party. Article 29,  paragraphs 1-3 provide that a good shall qualify 
as an originating good of a Party if the good has a qualifying value content (calculated pursuant to 
Article 30) of not less than 35% (Article 29.1(a)), and all non-originating materials used in the 
production of the good have undergone in the Part y a change in tariff classification at the 6 digit 
level (Article 29.1(b)). Article 29.2 provides that notwithstanding paragraph 1, a good subject to product specific rules will qualify as an originating good if it meets the product specific rules of 
origin set out in Annex 2 to the Agreement. Article 29.3 stipulates that the rule that materials used 
must undergo a change in tariff classification or a specific manufacturing or processing operation shall apply only to non-originating materials.  
3.12.  Article 30 establishes the methodology for ca lculation of qualifying local content ("Q.V.C.") 
based on the value of non-originating materials or the value of the originating materials used in the production of a good.
8  
3.13.  Article 30.3 provides that the value of a mate rial used in the production of a good in a Party 
shall be the CIF value (Article 30.3(a)) or the first ascertainable price paid for the material in the Party but may exclude all the costs associated with transporting the material from the supplier to the producer (Article 30.3(b)). Article 30.4 provides that in determining the value of a good or 
non-originating material (per Article 30.2(b) or 3(a)) the WTO Agreement on Customs Valuation 
will be applied mutatis mutandis  to domestic transactions or to the cases where there is no 
domestic transaction of the good or non-originating material. 
3.14.  Article 31 concerns accumulation of origin. An originating good of a Party used as a material 
in the production of a good in the other Party may be treated as an originating material, provided that the good has undergone its last production process in the other Party, and that the process 
goes beyond the operations provided for in Article 33 of the Agreement.  
3.15.  Article 32 on de minimis , provides that non-originating materials used in the production of a 
good shall be disregarded if the totality of such materials does not exceed specific percentages set 
out in paragraphs (a), (b) and (c) of Article 32. Article 33 describes non-qualifying operations in 
paragraphs (a)-(m) inclusive. Article 34.1 provides that an originating good shall be deemed to 
meet the consignment criteria when it is (a) transported directly from the other Party or (b) transits or is temporarily stored in one or more non-Parties, provided that it does not undergo 
operations other than unloading, reloading and any other operation to preserve it in good 
condition. Article 35 provides that where a good sa tisfies the provisions of Articles 27-33 and is 
imported into one Party from another Party, in an non-assembled form, but is classified as an 
assembled good pursuant to Rule 2(a) of the General Rules for the Interpretation of the 
Harmonized System, it shall be considered to originate in the territory of the second Party.  
3.16.  Article 36.1 on fungible goods and materials provides that when fungible originating 
materials of a Party and fungible non-originating materials that are mixed in an inventory are used 
in the production of a good, the origin of the materials may be determined pursuant to an 
inventory management method under the Generally Accepted Accounting Principles in the Party. 
Article 36.2 provides that when fungible originating and non-originating materials are mixed in an 
inventory and do not undergo any production process or operation the origin of the goods may be 
determined pursuant to an inventory manage ment method under the Generally Accepted 
Accounting Principles in the Party where they were mixed. 
3.17.  Article 37 of the Agreement provides that indirect materials shall be considered to be 
originating materials in the Party where the good is produced. Article 38.1 provides that when determining whether all non-originating materials used in production of a good undergo a change in tariff classification or a specific manufacturing or processing operation, accessories, spare parts, 
tools and instructional or other information materials delivered with the good shall be disregarded 
if they are not separately invoiced and the supply of those materials are customary for the good. 
                                               
8 The two formulas are provided in Article 30.1 of the Agreement. WT/REG300/1/Rev.1 
 
- 14 - 
 
Article 38.2 provides that if a good is subject to  a qualifying value content requirement, the value 
of accessories, spare parts, tools and instructional or other information materials shall be considered "as the value of originating or non-originating material", as the case may be, in calculating the qualifying value of the good.  
3.18.  Article 39 concerns the treatment of packagin g materials and containers which if used in the 
retail sale of a good (a) shall be disregarded if they are classified pursuant to Rule 5 of the General Rules for Interpretation of the Harmonized system; and if the good is subject to a qualifying value 
content requirement the value of such packaging materials and containers shall be taken into 
account as originating or non-originating materials, as the case may be, in calculating the qualifying value content of the good.  
3.19.  Article 40 provides that the operational certification procedures set out in Annex 3 to the 
Agreement shall apply with respect to procedures regarding certificates of origin and related 
matters. Article 41.1 establishes a Sub-Committee on Rules of Origin, effective from the date of entry into force of the Agreement. The functions of the Committee are described in Article 41.2.  
3.3  Export duties and charges,  and quantitative restrictions 
3.20.  Under Article 22.1, each Party shall not maintain any export prohibitions or restrictions 
other than customs duties of goods destined for the other Party in a manner inconsistent with the 
WTO Agreement.  
3.21.  Article 22.2 provides that any restrictions on exports to a Party that the exporting Party 
justified under the WTO Agreement shall, upon request be described and detailed to the importing Party, unless the provision of such information is prejudicial to the public interest.  
3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures, Technical Barriers to Trade 
3.22.  Chapter 5 of the Agreement, Articles 50-56 concerns Technical Regulations, Standards and 
Conformity Assessment and Sanitary and Phytosanitary Measures. The Chapter applies to technical regulations, standards and conformity assessmen t procedures as defined in the WTO Agreement 
on TBT and sanitary and phytosanitary measures as set out in the WTO Agreement on SPS 
(Article 50).  
3.23.  In Article 51 the Parties reaffirm their rights and obligations under the WTO Agreements on 
TBT and SPS. Article 52 requires each Party to  designate an enquiry point that can provide 
answers to enquiries from the other Party relating to TBT or SPS.
9 Article 53 establishes a 
Sub-Committee on Technical Regulations, Standa rds and Conformity Assessment Procedures and 
SPS Measures. The functions of the Sub-Committee are described in Article 53.2(a)-(i).  
3.24.  Article 54, on Co-operation on Generic Medicine, provides in paragraph 1 that the Parties 
shall exchange information on their respective re gulatory measures concerning generic medicine. 
Article 54.2 defines "generic medicine" as drugs approved by the competent regulatory authority 
of a Party as equivalent, in their terms of active  ingredients, dosages, usages and indications to 
the drugs preceding the former drugs. Article 54.3 requires that an application by a person of a 
Party for registration of for release of a generic medicine in the market of the other Party shall be considered by the authorities of the other Party. Such applications shall be accorded treatment no 
less favourable than that accorded to that accorded to like applications by to the persons of the 
other Party.  
3.25.  Article 55 concerns mutual recognition. It provides in Article 55.1 that the Parties shall 
discuss the feasibility of developing mutual reco gnition agreements ("MRA") in sectors such as 
electrical products, telecommunications terminal equipment, radio equipment and other sectors as 
                                               
9 For Japan the enquiry point is the Southwest Asia Division, Ministry of Foreign Affairs. For India the 
enquiry point is the Foreign Trade North East Asia (NEA) Division in the Depa rtment of Commerce.   WT/REG300/1/Rev.1 
 
- 15 - 
 
  may be mutually agreed. The Sub-Committee shall meet within 3 months of the date of entry into 
force to discuss the feasibility of MRAs in sectors referred to in Article 55.1.10 Article 56 provides 
that Chapter 14's dispute settlement procedures sh all not apply to Chapter 5 of the Agreement.  
3.4.2  Safeguard mechanisms 
3.4.2.1  Global safeguards 
3.26.  Article 23.6 states that the Parties are not prevented from applying safeguard measures in 
accordance with Article XIX of the GATT 1994 and th e Agreement on Safeguards or Article 5 of the 
Agreement on Agriculture.  
3.4.2.2  Bilateral safeguards 3.27.  Article 23 concerns the imposition of b ilateral safeguard measures. Article 23.1 of the 
Agreement permits the imposition of bilateral safeguard measures to the extent necessary to 
prevent or remedy serious injury to a domestic in dustry of a Party, provided that the originating 
good of the other Party, as a result of the elimination or reduction of a customs duty, is being imported in such increased quantities, in absolute terms or relative to domestic production that 
cause or threaten serious injury. Such bilateral safeguard measures may involve either suspension 
of a bound reduction in the customs duty rate under the Agreement on an originating good, or increase the rate of duty to the lesser of the MFN applied rate on either the date when the 
safeguard measure is taken or the day preceding the entry into force of the Agreement 
(Article 23.2).  
3.28.  Safeguard investigation procedures are to comply with the requirements set out in Article 3 
and sub-paragraph 2(c) of Article 4 of the WTO Agreement on Safeguards. The investigation must 
be completed within a year of the date of initiation (Article 23.3(b)). Article 23.4 sets out a series 
of conditions and limitations for application of a bilateral safeguard measure including adequate opportunity for prior consultations between the Parties and reaching an agreement on 
compensation. The initiation of an inquiry must be communicated to the other Party which 
provides all pertinent information on the proposed measure (Article 23.4(a) and (b), Bilateral safeguards may not be maintained except to the extent and for the time necessary to prevent or 
remedy serious injury and to facilitate adjust ment, provided it does not exceed three years 
although the total period can be extended to five years in exceptional circumstances; where the expected duration of a bilateral safeguard measure is over one year, the safeguard is to be progressively liberalized during the period of application (Article 23.4(d)). Once the measure is 
terminated, the customs duty of the product concerned will be at the rate which would have been 
in effect but for the safeguard measure (Article 23.4 (f)). Article 23.5 (a) requires that the Party imposing a safeguard measure must provide to the other Party mutually agreed compensation in 
the form of substantially equivalent concessions. If the parties cannot agree on the compensation 
within 30 days of commencing consultations per Article 23.4(c), the Party against whose originating goods the measure is proposed shall be free to suspend the application of concessions 
under the Agreement (Article 23.5(b)). Article 23.5(c)(i) provides that the right to claim the 
compensation and right of suspension shall not be  exercised for the first two years the bilateral 
safeguard measure is in effect - if the measure has been applied on the basis of an absolute increase in imports, in conformity with Article 23.  Article 23.8 permits the imposition of provisional 
bilateral safeguard measures in critical circumstances, where delay would cause damage difficult to 
repair. Article 23.8 (b)-(d) set out particular proc edures and conditions for imposition of such a 
provisional measure.  
3.4.2.3  Special safeguards 
3.29.  There are no provisions on special safeguar ds in this Agreement, excepting the reference to 
the provisions of Article 5 of the WTO Agreement on Agriculture in Article 23.6(b) of the 
Agreement (see above).  
                                               
10 The first meeting of the Sub-Committee on TBT/SPS issues was held in October 2011 to discuss the 
feasibility of MRAs.  The second meeting took place in October 2012.   WT/REG300/1/Rev.1 
 
- 16 - 
 
3.4.2.4  Balance of payments safeguards  
3.30.  Article 25.1 of the Agreement provides that the Agreement shall not prevent a Party from 
taking any measure for balance-of-payments purposes, provided that the Party takes the measure in accordance with the provisions of Articl e XII of the GATT 1994 and the Understanding on 
Balance-of-Payments Provisions of the GATT 1994.  Article 25.2 provides that nothing in the 
Chapter shall prevent the use of exchange controls or restrictions in accordance with the Articles of Agreement of the IMF.  
3.4.3  Anti-dumping and countervailing measures 
3.31.  Article 24 of the Agreement provides that  when the authority of a Party competent for 
initiating investigation under Article 5 of the Agreement on Anti-Dumping receives an application for the initiation of such investigation in respect of exports from the other Party, the former Party 
shall, at least ten working days in advance of the initiation of such investigation, notify the other 
Party, and provide a complete copy of the applicat ion, subject to the need to protect confidential 
information as set out in paragraph 5 of Article 6 of the WTO Agreement on Anti-Dumping.  
3.4.4  Subsidies and State-aid 
3.32.  There are no provisions in the Agreemen t concerning subsidies and state aid. Export 
subsidies or domestic support, which are inconsistent with the Parties' obligations under the WTO 
Agreements, on any agricultural products listed in Annex I of the WTO Agreement on Agriculture 
are prohibited by Article 21 of the Agreement. 
3.4.5  Customs-related procedures 3.33.  Chapter 4 of the Agreement, Articles 42- 49 concern Customs Procedures. Article 42 sets out 
the scope of the Chapter. Article 43 defines the term "customs laws". Article 45, on Customs 
Clearance, sets out obligations to ensure the pred ictable, consistent and transparent processing of 
the customs clearance of goods. Article 45.3 provides that each Party must ensure that affected 
parties have access to administrative and judicial review of actions taken in relation to customs 
matters. Article 46, on temporary admission and g oods in transit, requires in Article 46.1 that 
Parties continue to facilitate procedures for th e temporary admission of goods traded between the 
Parties consistent with the A.T.A. Carnet for th e Temporary Admission of Goods (ATA Convention). 
Article 46.2 requires the Parties to facilitate customs clearance of goods in transit in accordance with paragraph 3 of Article V of the GATT 1994. Article 47 concerns advance customs rulings on tariff classification, valuation and origin of a good. Article 48 requires the Parties to 
cooperate and exchange information on customs matters, including the matters listed in 
sub-paragraphs 48.1(a)-(e). Article 49 establishes a Sub-Committee on Customs Procedures.  
3.34.  Article 20 of the Agreement provides that for the purposes of customs valuation, the 
provisions of Part I of the WTO Customs Valuation Agreement shall apply mutatis mutandis.   
3.5  Sector-specific provisions on trade in goods 3.35.  Other than Article 21 of the Agreement which prohibits export subsidies or domestic support 
inconsistently with its obligations under the WTO Agreement on Agriculture there are no sector 
specific provisions.  
4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 4.1  Scope and definitions 
4.1.  Chapter 6 of the Agreement, Articles 57-72 and Annexes 4, 5 and 6 concern trade in services 
while Chapter 7 (see below) deals with the movement of natural persons. Chapter 8, 
Articles 83-101 and Annexes 8, 9 and 10 of the Agreement concern investment (in both goods and 
in services).  
4.2.  Article 57.1 provides that Chapter 6 applies to measures by a Party affecting trade in 
services. Under Article 57.2 sub-paragraph (a), Chapter 6 does not apply to air transport services, WT/REG300/1/Rev.1 
 
- 17 - 
 
  measures affecting traffic rights or measures affecting services directly related to the exercise of 
traffic rights, apart from measures affecting aircraft repair and maintenance services, the selling and marketing of air transport services and comp uter reservation system services. Article 57.2 
sub-paragraphs (b) and (c) provide that Chapter 6 also does not apply to cabotage in maritime 
transport services
11 and measures affecting natural persons seeking access to the employment 
market of a Party, measures regarding nationality or citizenship or residence or employment on a permanent basis. Article 57.3 provides that Ar ticles 59 and 60 do not apply to government 
procurement. Article 57.5 provides that Anne x 4 to the Agreement sets out supplementary 
provisions to Chapter 6 on financial services, including the scope and definition of those terms. The coverage of Annex 4 to the Agreement and the GATS Annex on Financial Services is the same.  Annex 5 contains supplementary provisions on telecommunication services, including the scope 
and definition of the terms (Article 57.6). The scope  of Annex 5 of the Agreement is wider than the 
GATS Annex on Telecommunications, as it covers trade in telecommunications as a whole and is not limited to the public telecommunica tions network and services (PTTNS). 
4.3.  Article 58 establishes the definitions used in Chapter 6. Article 84 establishes the definitions 
used in Chapter 8.  
4.4.  Article 83.1 provides that Chapter 8 applies to measures adopted or maintained by a Party 
relating to investors of the other Party and their investments in the Area of the former Party. 
Article 83.2 provides that an investor of a Party whose investments are not made in accordance with laws and regulations of the other Party which are consistent with the Agreement shall not be entitled to submit an "investment dispute" to conciliation or arbitration under paragraph 4 of 
Article 96.  
4.5.  Article 83.3 of the Agreement establishe s a hierarchy of precedence between Chapter 8 
(Investment) and certain provisions of Chapter 6 (Services). In the event of an inconsistency 
between matters covered by Articles 85 (National Treatment), 86 (Most Favoured Nation) or 89 
(Prohibitions on Performance Requirements) and Chap ter 6 on Services, Chapter 6 shall prevail. In 
the event of an inconsistency between a matter no t covered by Articles 85, 86 or 89, Chapter 8 
will prevail.  
4.2  Denial of benefits 4.6.  Article 11.2 of the Agreement provides that  for the purposes of Chapters 6 and 8 of the 
Agreement (services and investment respectively) Articles XIV and XIV bis o f  t h e  G A T S  a r e  
incorporated into the Agreement. Article 11.3 pr ovides that the Agreement shall not prevent a 
Party from taking any action it considers necessary to protect critical public infrastructure, including communications, power and water infrastructure from deliberate attempts to disable or 
degrade the infrastructure. Article 11.4 provides that a Party shall not be required to accord the 
benefits of the Agreement to the other Party wher e the Party adopts or maintains measures in any 
legislation for protection of its essential security interests in respect of a non-Party to the 
Agreement which would be violated or circumvented if the benefits of the Agreement were 
accorded to the other Party. Article 11.5 also permits a Party to deny the benefits of the 
Agreement on services or investment if the juridica l person or enterprise is owned or controlled by 
a person or investor of a non-Party, and the denying Party (a) does not maintain diplomatic 
relations with the non-Party or (b) has measures with respect to the non-Party that prohibit 
transactions with the enterprise or that would be violated or circumvented if the benefits of the Agreement were accorded to the juridical pe rson , enterprise or its investments.  
4.7.  Article 11.6 (subject to a requirement of pre-notification and consultation) permits a Party to 
deny the benefits of Chapter 6 to a service su pplier of the other Party if the denying Party 
establishes that (a) the service supplier is a juridica l person that is owned or controlled by persons 
of a non-Party and has no substantial business activities in the Area of the other Party, (b) the 
service is supplied from or in the Area of a non-Party, (c) in case of a maritime transport service, 
                                               
11 Article 57 of the Agreement (Scope) sets out exclusions of certain air transport services (measures 
affecting traffic rights, however granted, or to measures affecting se rvices directly related to the exercise of 
traffic rights, other than measures affecting: aircraft repair and maintenance services; the selling and 
marketing of air transport services; and computer rese rvation system services) and cabotage in maritime 
transport services. WT/REG300/1/Rev.1 
 
- 18 - 
 
the service is supplied (i) by a vessel registered in a non-Party and (ii) by a person who operates 
the vessel is of a non-Party, or (d) the service supplier is not of the other Party. 
4.8.  For the purposes of investment, Article 11.7 permits a Party (subject to a requirement of 
pre-notification and consultation) to deny the benefits of Chapter 8 to an investor of the other 
Party and to its investments if the denying Party establishes that (a) the enterprise has no 
substantial business activities in the Area of the other Party, and (b) the enterprise is owned or 
controlled by an investor of a non-Party or of the denying Party.  
4.3  General provisions on trade in services and investment 
4.3.1  Market access 4.9.  Market access is granted on the basis of a positive list of commitments set out in Annex 6 to 
the Agreement. Part 2 comprises the commitments of India and Part 3 contains the commitments 
of Japan. The structuring of the Schedu les commitments is similar to the GATS. 
4.10.  Article 59.1 of the Agreement provides that with respect to the supply of services across the 
four modes of supply, each Party must accord services and service suppliers of the other Party 
treatment no less favourable than that set out in its Schedule of Specific Commitments in Annex 6. 
Article 59.2 mirrors Article XVI.2 of the GATS, providing that when market access commitments are undertaken a Party shall not maintain or adopt measures set out in sub-paragraphs (a)-(f).
12 
Article 59.3 provides that the Parties shall ende avour to reduce the requirements for a service 
supplier to establish a representative office or any ot her form of enterprise or to be resident in its 
Area as a condition for cross border supply of a service. This "endeavours" clause is apparently greater in depth than the GATS.  
4.11.  Article 61 provides that the Parties may negotiate commitments with respect to measures 
affecting trade in services not subject to scheduling under Articles 59 and 60 of the Agreement, including on qualifications, standards or licensing matters. Those commitments shall be inscribed 
in the Party's Schedule of Specific Commitments in Annex 6.  
4.3.2  National and MFN treatment 4.12.  Article 60 of the Agreement concerns nation al treatment for services. Article 60.1 provides 
that each Party shall accord services and suppliers of the other Party no less favourable treatment 
than it accords its own like services and suppliers in the sectors inscribed in the Schedule of Specific Commitments in Annex 6 to the Agreement. Article 60.2 provides that a Party may comply with Article 60.1 by according to services and serv ice suppliers of the other Party either formally 
identical treatment or formally different treatment to that accorded to its own services and service 
suppliers.
13  
4.13.  Article 63 of the Agreement concerns most-favoured-nation treatment for services. It 
provides that if a Party to the Agreement enters into an agreement with a non-Party on trade in 
services, it shall consider a request by the other Party to incorporate in the provisions of this Agreement treatment no less favourable than that provided under the other agreement. The final 
sentence of Article 63 also requires that any such incorporation should maintain the overall 
balance of commitments undertaken by the Parties.  
4.14.  For investment Article 85.1 provides that the Parties shall accord national treatment to 
investors and investments of the other Party with respect to investment activities in the respective 
Areas. Article 85.2 notes that the national tr eatment obligation requires regional or local 
government to apply treatment no less favourable than the most favourable treatment accorded, in like circumstances, by the regional or local government to investors and investments of the 
Party to which it forms a part.  
                                               
12 Unless otherwise specified in its Schedule set out in Annex 6 to the Agreement.   
13 Article 60.3 provides that treatment will be considered less favourable if it modifies the conditions of 
competition in favour of the services or service providers of a Party compared to like services and suppliers of the other Party.   WT/REG300/1/Rev.1 
 
- 19 - 
 
  4.15.  Article 86 requires the application of th e most-favoured nation treatment applied to any 
non-Party to investors and their investments of the other Party to the Agreement14. Article 86's 
obligations extend to the "… management, conduc t, operation, maintenance, use, enjoyment and 
sale or other disposition of investments …". Article 87.1 provides that each Party shall accord to 
investments of investors of the other Party treatment that accords with international law, including 
fair and equitable treatment and full protection an d security. Article 88 requires that such investors 
shall enjoy national treatment access to courts of justice and administrative tribunals in all degrees 
of jurisdiction, in pursuit and defence of investor's rights. 
4.3.3  Performance requirements (investment) 4.16.  Article 89 of Chapter 8 concerns the prohib ition of any performance requirements, many of 
which concern both goods (with TRIMS type prohibitions) and services. Article 89.1 specifies a list 
of nine types of prohibited requirements (for  goods and services): export requirement, local 
content or purchase requirements, import and expo rt balancing, restriction on domestic sales, 
export restrictions, nationality of executive or ot her officers, transfer of technology or supply to 
particular destinations requirements. Article 89. 2 provides that Article 89.1 does not preclude 
either Party from imposing the two sorts of perfor mance requirements listed in Article 89.1(h) and 
(i) as a condition to receive advantages in  connection with investment activities.  
4.3.4  Movement of natural persons 
4.17.  Chapter 7 of the Agreement, Articles 73-82 and Annex 7 of the Agreement concern 
movement of natural persons. The coverage of Chapter 7 and Annex 7 is broader than the GATS Annex on the Movement of Natural Persons. Articl e 73.2 provides that the Chapter also applies to 
investment activities undertaken by natural pers ons. Article 79 extends the scope of the Chapter 
to the spouses of natural persons covered by Article 76.1 (and the commitments contained in Annex 7 to the Agreement). Article 78.2 also requires the Parties to undertake consultations on 
the feasibility of concluding a social security agreement.
15  
4.18.  Article 73 concerns general principles of the Chapter. Article 73.1 provides that the Chapter 
reflects the preferential trading relationship between the parties and their mutual desire to 
facilitate entry and temporary stay of natural pers ons on a comparable basis. Article 73.2 requires 
each Party to apply its measures relating to the provisions of the Chapter in an expeditious manner that avoids impairing or delaying trade in goods or services or investment activities under this Agreement.  
4.19.  Article 74 on the scope of the Chapter provides in Article 74.1 that the Chapter applies to 
measures affecting the movement of natural persons who enter the other Party and fall under one of the categories set out in Annex 7 to the Agreem ent. Article 74.2 provides that the Chapter does 
not apply to measures affecting natural persons on access to the employment market, nationality 
or citizenship. Article 74.3 states that the Chapter shall not prevent a Party from applying measures to regulate the entry or temporary stay of natural persons, provided that such measures 
are not applied in such a manner so as to nullify or impair the benefits according to the other Party 
under the terms of specific commitments. Article 76 concerns the specific commitments of the Parties. Article 76.1 provides that each Party shall grant entry and temporary stay to natural 
persons of the other Party
16 in accordance with the Chapter and the Party's commitments set out 
in Annex 7 of the Agreement. Article 76.2 provides  that neither Party shall maintain any numerical 
limitations upon the total number of visas to be granted (unless otherwise specified in Annex 7).  
4.20.  Article 77 concerns regulatory transparency , and is broader in scope than Article III of the 
GATS. In Article 77.1 the Parties are obliged to create mechanisms to respond to inquiries by 
interested persons of the other Party concerning regulations on entry or temporary stay. 
                                               
14 As some of the investment commitments of the Pa rties concern trade in services, this leads to a 
"GATS plus" outcome when comparing Article 86 of the Agreement ("…shall accord to investors of the other 
Party and to their investments treatment no less favourab le than that it accords, in like circumstances, to 
investors of the other Party…) with Article II.1 of the GATS ("…accord…treatment no less favourable than that it accords to like services and service suppliers of any other country."). 
15 A social security Agreement was signed on 16 November 2012. 
16 "Natural persons of a Party" is defined in Article 75 of the Agreement as "(a) in respect of India, … 
citizens of India;  and (b) in resp ect of Japan, … nationals of Japan." WT/REG300/1/Rev.1 
 
- 20 - 
 
Article 77.2 requires each Party to allow a reasonable period of time between the publication of 
such regulations and their entry into force. Article 77.3 requires each Party to exchange information on the procedures for processing of applications for entry and temporary stay by the date of entry into force of the Agreement, as well as any amendments thereto. Article 77.4 
requires each Party to notify natural persons of the other Party of its final determination and terms 
and conditions regarding the application for entry and temporary stay. Article 77.5 exhorts each Party to endeavour, to the extent possible, to take measures to simplify requirements and 
facilitate and expedite procedures relating to th e movement of natural persons of the other Party. 
4.21.  Article 78 concerns general principles for the grant of entry and temporary stay, mandating 
processing of applications without delay (Article 78.1) and consultations on the feasibility of concluding a social security agreement between the Parties (Article 78.2). Article 79 establishes 
that accompanying spouse or dependents of persons granted entry and temporary stay (under 
Article 76.1) shall be entitled to work provided they meet any legal requirements in the Party. 
Article 80 provides that the dispute settlement provisions of Chapter 14 shall not apply to 
Chapter 7 unless the matter involves a pattern of practice and all domestic remedies have been 
exhausted by the natural person concerned.  
4.22.  Article 81provides that the commitments undertaken by the Parties shall be subject to any 
limitations or reservations set out in the Annex 6 Schedule of Specific Commitments of the Parties. 
Article 82 requires the Parties to enter into further negotiations in accordance with Annex 7 of the Agreement. 
4.23.  Annex 7 of the Agreement sets out the Parties' Specific Commitments for the Movement of 
Natural Persons. Part 1 of Annex 7 concerns the commitments of India for the movement of 
natural persons from Japan. 
Table 4.1 India length of stay  for Japanese natural persons 
Category Migratory Condition Length of Stay 
Business Visitor Business Up to 180 days (extendable) 
Intra-corporate transferees Worker Up to 1 year, renewable, provided conditions for 
issue are maintained. Maximum total period 
5 years. 
Contractual Service Provider Business employees Up to 1 year or period of contract, whichever is 
less, provided conditions for issue are maintained.  
Independent Professionals  Independent 
professional Up to 1 year, or period of contract whichever is 
less, conditions for issue are maintained. 
 Source: Annex 7 (pursuant to Chapter 7) of the Agreement.  
4.24.  Section 1.1 of Part 1 of Annex 7 provides that business visitors from Japan visiting India 
temporarily who will not receive remuneration from within India shall be one of the following (a) a 
service seller for negotiating and entering into agre ements for the supply of services, (b) a service 
seller undertaking preparatory work for the establishment of a commercial presence in India, or (c) an investor (or employee thereof) as defined in Section 2 of Part 1 of Annex 7. Section 1.2 of Part 2 provides that any such business visitors shall not be engaged in direct sales to the general 
public or making investments themselves.  
4.25.  Sections 1.3(a) and 1.3(b) of Part 1 of  Annex 7 provides that a visa must be granted 
provided that the applicant complies with applicable immigration measures and presents proof of 
nationality. Section 1.4 of Part 1 of Annex 7 provides that entry and temporary stay shall be 
granted for a period not more than 180 days, whic h may be extended at the discretion of India.  
4.26.  Under Section 2 of Part 1 of Annex 7, entry and temporary stay of intra corporate 
transferees from Japan in the employment of a corporation and temporarily transferred to a 
branch, representative office or corporation in the capacity of (a) manager, (b) executive or (c) specialist who meet the criteria for an immigration visa shall be granted for an initial period of up to one year, extendable on a year to ye ar basis to a maximum of five years.  WT/REG300/1/Rev.1 
 
- 21 - 
 
  4.27.  Section 3.1 of Part 1 of Annex 7 provides that the section applies to contractual service 
suppliers17 from Japan who are (a) employees of a Japan based company or partnership and who 
travel to India for short periods up to one year in order to perform a service pursuant to a contract between their employer and a client located in India or (b) employees of a Japan based company 
or partnership who travel to India for short periods of up to one year to fulfil qualification and 
licensing requirements for which their presence in India is an essential condition. Section 3.2 provides that entry of such persons has to be  in (a) engineering services, (b) integrated 
engineering services, (c) architectural services, (d) urban planning and landscape architectural 
services, (e) computer and related services, (f ) R + D services, (g) management consulting 
services (excluding all services related to legal consultancy), (h) services related to management consulting (excluding all services related to legal consultancy), (i) hotel and restaurant services, 
(j) travel agency and tour operator services, or (k) tourist guides services.
18 
4.28.  Section 3.3 of Part 1 of Annex 7 provides that access for contractual service suppliers from 
Japan to India shall be available only under the specific service sector in respect of which the 
contract has been entered. The employee should  have appropriate qualifications. Section 3.4 
provides that entry and temporary stay shall be granted for a maximum period of one year, subject to compliance with all applicable immigration measures. Section 3.5 further notes that 
entry and temporary stay under the section is su bject to holding the required visa and meeting 
any specified conditions thereto, as well as meeting the conditions specified in the rest of Section 3 and any other condition set out in India's immigration regulations.  
4.29.  Section 4 of Part 1 of Annex 7 provides that the section will apply to natural persons who 
are independent professionals of Japan (a) travelling  to India for a stay of up to 12 months (with 
permission to extend for a maxi mum of 3 months) in order to perform a service pursuant to a 
contract for which they are appropriately qual ified and are registered with the appropriate 
professional body and are paid directly and (b) travelling to India for short periods up to 
12 months in order to fulfil qualification and licensing requirements where presence in India is an essential condition for fulfilment of such requirements. Section 4.2 provides that such persons' 
entry must be in relation to one of the following sectors: (a) accounting and book-keeping 
services, (b) engineering services, (c) integrated engineering services, (d) architectural services, 
(e) urban planning and landscape architectural services, (f) computer and related services, (g) R + D services, (h) management consulting services (excluding all services related to legal 
consultancy), (i) services related to management consulting (excluding all services related to legal 
consultancy), (j) hotel and restaurant services, (k) travel agency and tour operator services, or (l) tourist guides services.
19  
4.30.  Section 4.3 of Part 1 of Annex 7 provides that access for independent professionals from 
Japan to India shall be available only under the specific service sector in respect of which the contract has been entered. The employee should  have appropriate qualifications. Section 4.4 
provides that entry and temporary stay of indepe ndent professionals from Japan is for an initial 
period of up to one year, or the period of the contract (whichever is shorter), subject to compliance with all applicable immigration measures. Section 4.5 further notes that entry and temporary stay under the section is subject to ho lding the required visa and meeting any specified 
conditions thereto, as well as meeting the conditions specified in the rest of Section 4 and any 
other condition set out in India's immigration regulations. 
4.31.  Part 2 of Annex 7 concerns the specific commitments of Japan for the movement of natural 
persons from India.  
Table 4.2 Japan: length of stay for Indian natural persons 
Category Migratory Condition Length of Staya 
Business Visitor  Business 90 days, which may be extended.  
Intra Corporate 
Transferee   Intra company 
transferees From 1 up to 3 years, which may be extended provided that 
the conditions for issue are maintained 
Investors Prospective investors From 1 up to 3 years, which may be extended, provided that 
the conditions for issue are maintained.  
Qualified Professionals  Professional services From 1 to 3 years, which may be extended provided that the 
                                               
17 Section 3.1 of Part 1 of Annex 7 defines contractual service providers as "employees of juridical 
persons". 
18 As specified in India's Schedule of Specific Commitments in Annex 6 to the Agreement. 
19 As specified in India's Schedule of Specific Commitments in Annex 6 to the Agreement. WT/REG300/1/Rev.1 
 
- 22 - 
 
Category Migratory Condition Length of Staya 
conditions for issue are maintained 
Independent 
Professionals Professional services From 1 to 3 years, which may be extended provided that the 
conditions for issue are maintained 
Contractual Service 
Suppliers Contract service 
suppliers From 1 to 3 years, which may be extended provided that the 
conditions for issue are maintained 
Instructors Instructors From 1 to 3 years, which may be extended provided that the 
conditions for issue are maintained 
 
a According to the amendment to the Ordinance for Enforcement of the Immigration Control and 
Refugee Recognition Act, which came into force on  9 July 2012, the period of stay of a natural 
person who falls in one of the categories provided  for in Part 2 of Annex 7 except for "Business 
Visitor" has been changed to 3 months, 1 year, 3 years and 5 years; "3 months" and "5 years" are 
newly established. 
 Source: Annex 7 (pursuant to Chapter 7) of the Agreement.  
4.32.  Part 2A of Annex 7 concerns specific commitments of Japan under Article 76 of the 
Agreement and also includes the CPC lists set out in Appendix 1 and 2 to the Annex. Section 1 of Part 2 provides that business visitors of India shall be granted entry and temporary stay for a 
maximum period of 90 days (with the possibility of extension). Such natural persons shall not 
obtain remuneration from within Japan, nor engage in direct sales, supply of services directly, and only for the purpose of participating in business contacts including negotiations for the sale of 
goods or services or other similar activities. Section 2 concerns intra corporate transferees, in 
respect of whom entry and temporary stay shall be granted for a maximum period of one or three years (with the possibility of extension). Section 2 describes the required experience, employment 
status and planned activities of the transferee.  
4.33.  Section 3 of Part 2A of Annex 7 concerns investors of India. Investors shall be granted entry 
and temporary stay for a period of one or three years (with the possibility of extension). Investors shall be natural persons engaging in (a) activities to invest or manage investments in Japan, (b) 
the management of a business on behalf of a non Japan investor, or (c) the conduct of a business 
in Japan invested by a non Japan investor.  
4.34.  Section 4 of Part 2 A of Annex 7 concerns qualified professionals of India. Qualified 
professionals shall be granted entry and temporary stay for one or three years (with the possibility 
of extension). Qualified professionals (natural persons) of India shall be legal, accounting or taxation service suppliers qualified under the laws and regulations of Japan engaged in the 
provision of (a) legal services supplied by a qualified "Bengoshi" lawyer, (b) legal advisory services 
supplied by a person qualified as a "Gaikoku-H o-Jimu-Bengoshi", (c) legal judicial scrivener 
services supplied by a qualified "Shiho-shoshi", (d) legal administrative scrivener services supplied by a qualified "Gyouesi-shoshi", (e) legal social insurance and labour consultancy services by a 
qualified "Shakai-Hoken-Romushi", (f) legal patent attorney services supplied by a qualified 
"Benrishi", (g) legal maritime procedure agent services by a qualified "Kaijidairishi", (h) accounting, auditing and bookkeeping services supp lied by a qualified "Koninkaikeishi", (i) taxation 
services supplied by a qualified "Z eirishi", or (j) legal land and ho use surveyor services supplied by 
a qualified "Tochi-Kaoku-Chosashi".  
4.35.  Section 5 of Part 2A of Annex 7 concerns independent professionals of India. Independent 
professionals (natural persons) of India shall be granted entry and temporary stay for one or three 
years (with the possibility of extension). Indepe ndent professionals from India shall engage in 
certain activities under one of the following residence status under Japan's Immigration Control and Refugee Recognition Act: (a) "Engineer"; (b) "Specialist in Humanities/International Services", 
or (c) "Skilled labour" (in relation to Indian cuisine).  
4.36.  Section 6 of Part 2 A of Annex 7 concerns contractual service providers of India. Contractual 
service providers as natural persons of India shal l be granted entry and temporary stay for one or 
three years (with the possibility of extension). En try shall be granted to such persons who engage 
in certain activities under one of the following residence status under Japan's Immigration Control and Refugee Recognition Act: (a) "Engineer", (b) "Specialist in Humanities/International Services", 
or (c) "Skilled labour" (in relation to Indian cuisine).  
4.37.  Section 7 of Part 2A of Annex 7 concerns instructors from India. Natural persons of India 
shall be granted entry and temporary stay for a peri od of one or three years (with the possibility of WT/REG300/1/Rev.1 
 
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  extension) to provide one of the following services  under the residence status of "Instructor" under 
Japan's Immigration Control and Refugee Recognition Act: (a) teaching Indian yoga, (b) teaching Indian cuisine, (c) teaching Indian classical music or dance, or (d) teaching English language.  
4.3.5  Other measures on investment 
4.38.  As mentioned above, Article 90 sets out reservations and exceptions with regard to 
investment. Article 90.1 provides that Articles 85 (National Treatment), 86 (MFN) and 89 (Performance Requirements) shall not apply to any existing non-conforming measure that is 
maintained by a central government, prefecture of Japan or a state or an Union territory of India 
as described in Schedules set out in Annex 8 of the Agreement
20, and by local government. 
4.39.  Tables 4.3 and 4.4 below lists the exclusions set out in Annex 8 of the Agreement for India 
and Japan respectively. Most of Japan's reservations concern investment in services sectors.  
Table 4.3 Reservations on existing measur es under Article 90.1 of the Agreement - 
Annex 8: India 
Reservation 
No. Description of sector/restriction Type of reservation (Most 
Favoured Nation 
(MFN)/National Treatment 
(NT)), Performance 
requirement (PR) 
1 All sectors (non resident investors)  
(non-resident/non-nationals) MFN, NT 
2 All sectors (prior approval for additional investments in same 
technology/trademark field)  MFN, NT 
3 All sectors (Central Bank approval waivers for forex investments) MFN, NT 
4 All sectors (items reserved for manufacture by micro, small and 
medium enterprises) PR 
5 Atomic Energy (FDI ban) MFN, NT 
6 Chit Fund Business, Nidhi, Transferable Development rights, 
Agriculture and Plantation, Real estate21 (non-residents) MFN, NT 
7 Manufacture of tobacco products (FDI ban) MFN, NT 
8 Gambling, Betting Lottery (non-residents)22 MFN, NT 
9 Acquisition of Land (non-residents)23 MFN, NT 
10 Agriculture (exceptions to general prohibition on foreign 
investment in sector) MFN, NT 
11 Animal Husbandry, Pisciculture and Aquaculture (subject to 
conditions) NFN, NT 
12 Mining (diamonds and precious stones, gold and silver) (subject 
to conditions) MFN, NT, PR 
13 Mining and quarrying (coal and lignite)  (subject to conditions) MFN, NT, PR 
14 Mining and quarrying (uranium and thorium) (nationality and 
additional conditions) MFN, NT, PR 
15 Mining and quarrying (iron ore, metal ores, non-metallic minerals, 
(other than petroleum and gas) (subject to conditions) MFN, NT, PR 
16 Other mining and quarrying (quarrying of stone, sand and clay) 
(subject to conditions) MFN, NT, PR 
17 Titanium bearing minerals and ores (p rior approval requirement) MFN, NT, PR 
18 Defence industry (non-resident investment limits and other 
conditions) MFN, NT, PR 
19 All services sectors (general reservation)24 MFN, NT, PR 
20 All Sectors (general reservation)25 MFN, NT, PR 
 
Source: Annex 8 of the Agreement. 
                                               
20 Annex 8 describes existing non-conforming measures of the Parties, 20 for India and 22 for Japan.    
21 Note: these measures may concern trade in services  and the commitments of India in Annex 6 to the 
Agreement. 
22 Note: these measures may concern trade in services  and the commitments of India in Annex 6 to the 
Agreement. 
23 Note: these measures explicitly concern trade in se rvices and the commitments of India in Annex 6 to 
the Agreement. 
24 Note: these measures may concern trade in services  and the commitments of India in Annex 6 to the 
Agreement. 
25 Any existing measures by State Governments/Union territories/local governments are not subject to 
national treatment, most favoured nation or prohibitio n of performance re quirements obligations contained in 
Chapter 8 of the Agreement.   WT/REG300/1/Rev.1 
 
- 24 - 
 
Table 4.4 Reservations on existing measur es under Article 90.1 of the Agreement - 
Annex 8: Japan 
Reservation 
No. Description of sector/restriction Type of reservation (Most 
Favoured Nation 
(MFN)/National Treatment 
(NT)), Performance 
requirement (PR) 
1 Agriculture, Forestry and Fisherie s (plant breeders rights)  MFN, NT 
2 Finance (banking, deposit insurance) NT 
3 Heat Supply (prior notification requirement) NT 
4 Information and Communication s (foreign share-holding 
limitations) and nationality requirement for directors or 
auditor in NTT) NT, PR 
5 Information and Communications (prior notification 
requirement, telecommunication and internet based services) NT 
6 Manufacturing (prior notification requirement, "biological 
preparations manufacturing industry") NT 
7 Manufacturing (prior notifica tion requirement, leather and 
leather products manufacturing)  NT 
8 Matters related to nationality of a ship NT, PR 
 
9 Mining (Japanese nationality requirement) NT 
10 Oil industry (prior noti fication requirement) NT 
11 Agriculture, forestry and fi sheries and related services 
(except fisheries within the territorial waters, exclusive economic zone and continental shelf)
26 (prior notification 
requirement) NT 
12 Security guard services (prior notification requirement) NT 
13 Transport (air transport) (prior notification requirement, 
Japanese nationality requirements) MFN, NT, PR 
14 Transport (aerial work) (prior notification, Japanese 
nationality requirements) NT, PR 
15 Transport (registration of ai rcraft) (Japanese nationality 
requirement) NT, PR 
16 Transport (freight forwarding (non-air)) (registration 
requirements) MFN, NT, PR 
17 Transport (freight forwarding (air)) (Japanese nationality 
requirement, registra tion requirements) MFN, NT, PR 
18 Transport (railway) (prior notification requirement) NT 
19 Transport (road passenger transport) (prior notification 
requirement) NT 
20 Transport (water) (prior notification requirement) NT 
21 Transport (water) (Japanese flag requirement) MFN, NT 
22 Water supply and waterworks (prior notification  
requirement) NT 
 
Source: Annex 8 of the Agreement.  
4.40.  Article 90.2 provides that Articles 85, 86 and 89 shall also not apply to any measure that a 
Party adopts or maintains and is set out in its Schedule to Annex 9 of the Agreement.27 Tables 4.5 
and 4.6 below set out the limitations reserved by  the Parties in Annex 9 to the Agreement.  
Table 4.5 Reservations for future measur es under Article 90.2 of the Agreement - 
Annex 9: India 
Reservation 
no. Description of sector/restriction Reservation type (Most 
Favoured Nation (MFN), 
National Treatment (NT), 
Performance requirement (PR)  
1 Agriculture (All agriculture activities like farming and 
plantation) (reservation of ri ghts in respect of sector) MFN, NT 
2 Farming of animals (cattle, sheep, goats, horses, asses, 
mules and hinnies; dairy farming including mixed farming,  MFN, NT, PR 
                                               
26 Note also reservation no. 7 in  Annex 9 Schedule of Japan. 
27 Part 1 of the Annex lists 24 sectors, sub-sectors or activities for India; Part 2 lists 10 sectors, 
sub-sectors or activities for Japan. See Table 4.5 and 4.6. WT/REG300/1/Rev.1 
 
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  Reservation 
no. Description of sector/restriction Reservation type (Most 
Favoured Nation (MFN), 
National Treatment (NT), 
Performance requirement (PR)  
(reservation of rights in respect of sector)  
3 Forestry (logging and relate d services, (reservation of 
rights in respect of sector)  MFN, NT, PR 
4 Fishing (operation of fish ha tcheries and farms; services 
incidental to fishing) (reservation of rights in respect of 
sector)  NT 
5 Dairy products (reservation of rights in respect of sector) PR 
6 Canning and Preservation of fruits and vegetables 
(reservation of rights in respect of sector) PR 
7 Processing, canning and preservation of fish, crustacean 
and similar foods (reservation of  rights in respect of sector)  PR 
8 Bakery products (reservation of  rights in respect of sector) PR 
9 Hydrogenated Oils, Vanaspati, Ghee, vegetable oils 
(reservation of rights in respect of sector) PR 
10 Distilling, Rectifying and Blending of Spirits, Ethyl alcohol 
production from fermented mate rials, manufacture of wines 
(reservation of rights in respect of sector) PR 
11 Wood and wood products (reservation of rights in respect 
of sector) PR 
12 Leather and leather products (reservation of rights in 
respect of sector) PR 
13 Cement and asbestos (reservati on of rights in respect of 
sector) PR 
14 Air conditioner, refrigerators and fire fighting 
equipment(reservation of righ ts in respect of sector) PR 
15 Industrial Explosives, Safety  fuse, detonator, fireworks 
(reservation of rights in respect of sector) MFN, NT, PR 
16 Manufacture of Hazardous Chemicals (reservation of rights 
in respect of sector) MFN, NT, PR 
17 
 Tobacco stemming and Manufacturing of Products 
containing Tobacco or Tobacco substitutes, including manufacture of bidi (reservation of rights in respect of sector) MFN, NT 
18 Drugs and Pharmaceuticals (reservation of rights in respect 
of sector) MFN, NT, PR 
19 All Services sectors (reservation of rights in respect of 
investments in services sectors (subject to Chapter 6))28 MFN, NT, PR 
20 All sectors (reservation of righ ts in respect of investments 
as per laws and regulations of  state/Union territories/local 
governments) MFN, NT, PR 
21 All sectors (reservation of rights in respect of measures 
that accord rights or preferen ces to economically backward 
regions in the interests of balanced economic 
development/social equality) MFN, NT, PR 
22 All sectors (reservation of rights in respect to transfer or 
disposal of equity interests in or assets of state enterprises  
or governmental authorities) MFN, NT, PR 
23  Acquisition of land (reservati on of rights, non-residents) NT 
24 All Sectors (reservation of rights in respect of technology 
transfer and senior management positions) PR 
 
Source: Annex 9 of the Agreement. 
                                               
28 Note: This reservation concerns trade in services  and the commitments of India in Annex 6 of the 
Agreement. WT/REG300/1/Rev.1 
 
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Table 4.6 Reservations for future measures in Annex 9, Japan 
Reservation 
no. Description of sector/restriction Reservation type (Most 
Favoured Nation (MFN), 
National Treatment (NT), 
Performance requirement 
Performance requirement 
(PR) 
1 All sectors (reservation of rights in respect to transfer or 
disposal of equity interests in or assets of state enterprises or governmental entities) NT, PR 
2 All sectors (reservation of rights in respect of privatization of 
certain sectors) NT, PR 
3 All sectors (subsidies) MFN, NT 
4 Aerospace industries (aircraft and space) (reservation of 
rights in respect of sector) NT, PR 
5 Arms and Explosives industry (r eservation of rights in respect 
of sector) NT, PR 
6 Energy (electricity utilities, gas utilities, nuclear industry) 
(reservation of rights in respect of sector  NT, PR 
7 Fisheries (within territorial sea, internal waters, exclusive 
economic zone and continental shelf) (reservation of rights in respect of sector)  MFN, NT, PR 
8 Information and communications (broadcasting) (reservation 
of rights in respect of sector)  NT, PR 
9 Land transactions (reciprocal restriction) MFN, NT 
10 Public law enforcement and correctional services and social 
services (reservation of ri ghts in respect of sector) MFN, NT, PR 
 
Source: Annex 9 of the Agreement.  
4.41.  Article 90.3 provides that after entry into force of the Agreement, neither Party shall require 
any investor of the other Party to divest itself of any investment covered by its Annex 9 Schedule 
on the basis of nationality. Article 90.4 provides that if a Party amends or modifies any existing 
non-conforming measure set out in its Schedule to Annex 8 of the Agreement, or where a Party 
adopts any new or more restrictive measure in the sectors, sub-sectors or activities listed in Annex 9, it shall, prior to implementation (or in exceptional circumstances, as soon as possible 
thereafter) notify the other Party and hold (if requested) consultations in good faith. Article 90.5 
exhorts the Parties to, where appropriate, reduce  or eliminate the exceptions specified in its 
Schedules in Annexes 8 and 9. Article 90.6 notes that Articles 85 and 86 shall not apply to any measure covered by the exceptions to, or derogati ons from obligations set out in Articles 3 and 4 
of the TRIPS Agreement. Article 90.7 provides that Articles 85, 86 and 89 shall not apply to any 
measure with respect to government procurement. 
4.42.  Article 92 concerns expropriation and compensation.
29 Article 92.1 provides that neither 
Party to the Agreement shall take any measure of expropriation or nationalisation against 
investments of investors of the other Party in its Area except: (a) for a public purpose, (b) on a non-discriminatory basis, (c) in accordance with due process of law, and (d) upon payment of 
prompt, adequate and effective compensation. Article 92.2 describes the determination of fair 
market value of an investment. Article 92.3 sets out how compensation shall be paid. Article 92.4 provides that investors shall have a right of access to courts of justice or administrative tribunals of the other Party to seek prompt review of th eir case and the amount of compensation, without 
prejudice to Article 96.  
4.43.  Article 93 requires that in the event of  loss or damage resulting from civil strife, 
compensation payable to investors shall be accorded on a national and MFN treatment basis. 
Article 94 requires the Parties to ensure that transfers relating to investments can be freely made 
without delay, subject to certain defined exceptions in Article 94.3. Article 95 concerns subrogation and recognition of assignment of a right. Article 96 concerns settlement of investment disputes 
between a Party and an investor of the other Part y. Article 96.1 defines an "investment dispute". 
Articles 96.2-21 describe the procedures for settlement of an investment dispute between a Party and an investor of the other Party as well as the fora having capacity to hear such a dispute.  
                                               
29 Annex 10 on "Expropriation" describes  the Parties understanding on the in terpretation of Article 92.1.   WT/REG300/1/Rev.1 
 
- 27 - 
 
  4.4  Liberalization commitments 
4.44.  Article 62.1 of the Agreement provides that the Parties Schedules' of Specific Commitments 
in Annex 6 to the Agreement shall contain (a) terms, limitations and conditions on market access, (b) conditions and qualifications on national treatment, (c) undertakings relating to additional 
commitments and (d) the time-frame for implementation of the commitments. Article 6.1.2 
provides that limitations inconsistent with Articles 59 and 60 must be inscribed in the column relating to Article 59 and will then be considered to provide a qualification to the national 
treatment obligations contained in Article 60.  
4.45.  Article 71 concerns review of specific commitments on services under the Agreement. 
Article 71.1 provides that the Parties shall revi ew their commitments on services within three 
years of the date of entry into force of the Agreement with a view to improving the overall 
commitments undertaken by the Parties. Article 71.2 requires that the Parties take into account 
paragraph 1 of Article IV of the GATS when un dertaking such a review of their commitments. 
Article 72 establishes a Sub-Committee on Trade in Services. Its functions are described in 
Article 72.2.  
4.4.1  India 4.46.  Table 4.7 below summarizes India's commitments under the Agreement in comparison with 
its GATS commitments. 
Table 4.7 India: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)
 
Sectors GATS RTA Reservations 
Annex 8* 
India reserves 
all services 
sectors (19) in 
Annex 8 Reservations 
Annex 9 
1. BUSINESS SERVICES √ √   
A. Professional services √ Improved   
B. Computer and related services  √ Improved   
C. Research and development √ Improved   
D. Real estate √ Improved 6,9  
E. Rental/Leasing serv ices without operators - √   
F. Other √ improved   
2. COMMUNICATION SERVICES √ Improved   
A. Postal - -   
B. Courier - -   
C. Telecommunication  √ Improved   
D. Audiovisual √ Improved   
E. Other - -   
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES √ Improved   
4. DISTRIBUTION SERVICES - √   
5. EDUCATION SERVICES - √   
6. ENVIRONMENTAL SERVICES - √   
7. FINANCIAL SERVICES √ Improved   
A. All insurance and in surance-related services  √ Improved   
B. Banking and other financial services √ Improved   
8. HEALTH RELATED AND SOCIAL SERVICES √ Improved   
9. TOURISM AND TRAVEL RELATED SERVICES √ Improved   
A. Hotels an d restaurants √ Similar   
B. Travel agencies and tour operators √ Similar   
C. Tourist guides - √   
D. Other - -   
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES - √ 8  WT/REG300/1/Rev.1 
 
- 28 - 
 
Sectors GATS RTA Reservations 
Annex 8* 
India reserves 
all services 
sectors (19) in 
Annex 8 Reservations 
Annex 9 
11. TRANSPORT SERVICES - √   
A. Maritime - √   
B. Internal waterways - -   
C. Air  - √   
D. Space - -   
E. Rail  - -   
F. Road - -   
G. Pipeline - -   
H. Services auxiliary to all modes of transport - -   
I. Other - -   
12. OTHER SERVICES NOT INCLUDED ELSEWHERE  - -   
 
Note: √:  Commitments in the GATS schedule (with or without limitations). 
-:  No commitments. New:  New commitments made under the Agreement (with or without limitations).  Improved: Overall improved commitm ents made under the Agreement compared to those under the GATS. 
Similar:  Similar commitments made under the Agreement as those under the GATS. *  See also description in relevant paragraph.  Source:   Draft Consolidated GATS Schedule of Sp ecific Commitments (S/DCS/W /IND), prepared by the 
Secretariat (in 2003), and relevant section of A nnex 4 to the Agreement. The comparison only 
concerns modes 1-3, market access, national treatment, and additional commitments; it does 
not concern commitments under mode 4. 
 
4.47.  India has undertaken commitments in many new sectors under the Agreement in 
comparison to the GATS. The 51% limitation expres sed in India's GATS Schedule under computer 
and related services are eliminated under the Agreement. The same limitation has also been 
eliminated under Research and Development services. India has undertaken new commitments in 
Real Estate and Rental/Leasing services under the Agreement, in comparison to no commitments under the GATS. Under the Agreement India undertook commitments under a greater range of sub-sectors under "Other" business services.  
4.48.  India undertook commitments on a broader range of sub-sectors under Telecommunication 
Services
30, and also eliminated market access limitations concerning permissions required from 
licensing authorities and foreign equity caps of 25% (now 74%, subject to FIPB approval). 
Limitations on national treatment are now bound, in comparison to the GATS commitments. Under 
Audiovisual services, restrictions on national trea tment have been removed in respect of mode 3.  
4.49.  Under Construction services, India has undertaken commitments on a broader range of 
sectors. In addition the 51% foreign equity ceilings on market access and national treatment have 
been eliminated. India did not undertake commitments under Distribution, Education and Environment Services under the GATS, but has done so under the Agreement.  
4.50.  In respect of Financial Services, A. Insurance India has undertaken commitments under the 
Agreement, which are broadly similar to the numbe r of sub-sectors committed, as well as the 
commitments on market access and national treatment in the GATS. India has undertaken similar c o m m i t m e n t s  i n  r e s p e c t  o f  B a n k i n g ,  a l t h o u g h  l i m itations on national treatment are expressed 
differently and are slightly less restrictive. A numerical limit on the annual number of licences 
granted has been eliminated. Under Financial leasing a 51% equity limit on market access has been eliminated. New commitments have been undertaken on several sub sectors, including 
provision and transfer of financial information.  
 
                                               
30 Note also Annex 5 of the Agreement, concerning Telecommunication services. WT/REG300/1/Rev.1 
 
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  4.51.  Under Health services, India has increased from 51-74% the equity cap on mode 3 in 
market access. Under Tourism and related services, India has bound modes 1 and 2 for market access and national treatment, and also entered commitments for Tour guide services, in comparison with its GATS schedule. India has undertaken new commitments for the Recreational, 
Cultural and Sporting services. India has also undertaken commitments on Transport services, 
which it did not in its GATS commitments. 
4.4.2  Japan 
4.52.  Table 4.8 below summarizes Japan's commitm ents under the Agreement in comparison with 
its GATS commitments.  
Table 4.8 Japan: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4) 
Sectors GATS RTA Reservations Reservations 
1. BUSINESS SERVICES √ √   
A. Professional services √ Improved   
B. Computer and related services  √ √   
C. Research and development √ Improved   
D. Real estate √ √  9 
E. Rental/Leasing services without 
operators √ Improved   
F. Other √ Improved 1, 9, 10, 11, 12 5,7 
2. COMMUNICATION SERVICES √ √   
A. Postal - √   
B. Courier - √   
C. Telecommunication  √ Improved  4,5 8 
D. Audiovisual √ Improved   8 
E. Other -  -   
3. CONSTRUCTION AND RELATED 
 ENGINEERING SERVICES √ Improved   
4. DISTRIBUTION SERVICES √ Improved   
5. EDUCATION SERVICES √ Improved   
6. ENVIRONMENTAL SERVICES √ √ 22  
7. FINANCIAL SERVICES √ √   
A. All insurance and insurance-
related services √ Improved   
B. Banking and other financial √ Similar 2  
8. HEALTH RELATED AND SOCIAL 
 SERVICES √ √   
9. TOURISM AND TRAVEL RELATED 
 SERVICES √ √   
A. Hotels an d restaurants √ √   
B. Travel agencies and tour √ √   
C. Tourist guides √ √   
D. Other √ √   
10. RECREATIONAL, CULTURAL AND 
 SPORTING SERVICES √ √  10 
11. TRANSPORT SERVICES √ Improved   
A. Maritime √ Improved 8,20,21  
B. Internal waterways √ Improved 20,21  
C. Air  √ √ 13, 14, 15 17 4 
D. Space - -  4 
E. Rail  √ √ 18  WT/REG300/1/Rev.1 
 
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Sectors GATS RTA Reservations Reservations 
F. Road √ Improved 16,19   
G. Pipeline √ √   
H. Services auxiliary to all modes 
of transport √ √   
I. Other - -   
12. OTHER SERVICES NOT INCLUDED 
ELSEWHERE - -   
 
Note: √:  Commitments in the GATS schedule (with or without limitations). 
-:  No commitments. New:  New commitments made under the Agreement (with or without limitations).  Improved: Overall improved commitm ents made under the Agreement compared to those under the GATS. 
Similar:  Similar commitments made under the Agreement as those under the GATS.  
Source:   Draft Consolidated GATS Schedule of Sp ecific Commitments (S/DCS/W /JPN), prepared by the 
Secretariat (in 2003), and relevant section of A nnex 4 to the Agreement. The comparison only 
concerns modes 1-3, market access, national tr eatment, and additional commitments; it does 
not concern commitments under mode 4. 
 
4.53.  Japan has undertaken similar commitments in  respect of Professional services, although 
with some adjustments to market access and national treatment limitations. Japan undertook new commitments on inter alia , urban planning, medical and dental, veterinary, midwives and 
registered physiotherapists services.  
4.54.  Under Research and Development services, Japan has added commitments on research and 
development on social sciences and humanities. Japan has entered new sub sectors in its 
commitments on rental and leasing services without operators. Under other business services 
Japan has listed new sub sectors, including technical testing, services incidental to mining, investigation services, related scientific and technical consulting services related to petroleum, credit reporting, collection agency services, telephone answering and call centre services and 
duplication services, in comparison with its GATS commitments.  
4.55.  On Communication Services, Japan has undertaken new commitments on Postal and courier 
services, including Special Correspondence De livery Business. Under Telecommunication 
services
31, Japan has added commitments on both Basic service and Value added services. Japan's 
audiovisual commitments under the Agreement are broader vis-a-vis  its GATS commitments, with 
radio and television and transmission services added.  
4.56.  On Construction and related engineering services Japan has added commitments on other, 
services related to mining. Commitments on Distribution Services has added commitments on franchising services related to petroleum products, alcoholic beverages and public wholesale market services.  
4.57.  On Financial Services
32, Insurance services, Japan has removed its 60% limitation in respect 
of modes 1-3 on market access, thus improving the scope of its commitments under the Agreement in comparison to the GATS. The limitati ons on market access in respect of Banking and 
other financial services are redrawn, and on  mode 3 are more liberal than the GATS. 
4.58.  Under Maritime transport, Japan has ente red new commitments on rental of vessels with 
crew, maintenance and repair of vessels, salvaging, maritime cargo handling, container station 
and depot services and maritime freight forwarding services. A new commitment has been 
undertaken in respect of maintenance and repair of vessels, and an improvement has been added 
by elimination of an exclusion to the definition of salvaging and refloating services in comparison with Japan's GATS commitments. New commitments have been undertaken on rental of 
commercial vehicles with operator and maintenance and repair services of road transport 
equipment, in comparison with  Japan's GATS commitments. 
 
                                               
31 See also Annex 5 to the Agreement. 
32 See also Annex 4 of the Agreement. WT/REG300/1/Rev.1 
 
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  4.5  Regulatory provisions  
4.5.1  Domestic regulation 4.59.  Article 64 of the Agreement concerns domestic regulation. Articles 64.1-8 mirror 
Article VI.1-6 of the GATS, and include provisions on nullification and impairment (Article 64.6).  
4.5.2  Recognition 
4.60.  Article 65 of the Agreement concerns recognition. Article 65.1 mirrors the first sentence of 
Article VII.1 of the GATS. Article 65.2 requires the parties to enter into negotiations concerning 
recognition of education, experience, licences or certification in respect of specific services sectors 
with a view to concluding those negotiations within 3 years of entry into force of the Agreement, and is thus broader than the requirements of Arti cle VII of the GATS. These negotiations have not 
yet commenced.  
4.61.  Article 65.3 requires that upon written request by a Party, the Parties should encourage 
their respective professional bodies negotiate and conclude within 12 months any arrangement for mutual recognition of education, experience, licences or certification with a view to the early 
outcomes. Any failure to reach and conclude an agreement shall not be regarded as a breach of a 
Party's obligations nor subject to dispute settlem ent under Chapter 14 of the Agreement, although 
progress shall be periodically reviewed by the Joint Committee established under Article 14 of the 
Agreement. Article 65.4 provides that when a Part y grants recognition of education, experience, 
licences or certification to a non-Party through an agreement, the first Party shall provide the other Party to the Agreement an opportunity to accede to that other agreement or to negotiate a comparable agreement.  
4.5.3  Subsidies 
4.62.  Article 70 of the Agreement concerns subsid ies in the services sector. Article 70.1 provides 
that each Party shall review the treatment of subsidies related to trade in services taking into 
account the development of the negotiations taking place under Article XV.1 of the GATS. 
Article 70.2 provides that if a Party considers that its interests have been adversely affected by a subsidy the Parties shall enter into consultations upon the request of the former Party. The 
modalities and considerations described in Article 70.3 are broader than Article XV.1 of the GATS. 
Dispute settlement under Chapter 14 will not apply to Article 70 (Article 70.4).  
4.5.4  Safeguards 4.63.  There are no specific provisions in the Agreement on safeguards in services. 
4.64.  Article 97 concerns temporary safeguard measures in relation to investments. Article 97.1 
permits the adoption of temporary safeguard measures that do not conform with Article 85 relating to cross border capital transactions, and Article 94 in the event of: (a) serious balance of 
payments and external financial difficulties or thre at thereof, or (b) in exceptional circumstances, 
movements of capital causing or threatening to cause serious difficulties for macroeconomic management. Pursuant to Article 97.2 any such measures must (a) be consistent with the 
Articles of Agreement of the IMF, (b) not exceed those necessary to deal with the circumstances, 
(c) be temporary and eliminated as soon as conditions permit, (d) be promptly notified to the other Party, and (e) avoid unnecessary damage to the commercial interests of the other Party. Action under Article 97 may be the subject of consultations upon request by the other Party 
(Article 97.3). Article 69 concerns restrictions to  safeguard the balance of payments, and mirrors 
Article XII of the GATS. It permits a Party to take restrictions on trade in services on which it had undertaken commitments, in the event of serious balance-of-payments and external financial 
difficulties. The conditions for application of such measures are described in Article 69.2. WT/REG300/1/Rev.1 
 
- 32 - 
 
4.5.5  Other 
4.65.  Article 66 of the Agreement concerns tran sparency. Article 66.1 requires the establishment 
of enquiry points33, notified to the other Party upon the entry into force of the Agreement. 
Article 66.2 is broader than the requirements of Article III of the GATS and provides that each 
Party shall endeavour to provide to the other Party and make public a list of all measures within 
the scope of Chapter 6 which are inconsistent with Articles 59 and/or 60, whether or not those measures are included in the Schedule of Specific Commitments set out in Annex 6. Article 66.3 
provides that dispute settlement procedures in Chapter 14 of the Agreement shall not apply to 
Articles 66.1-2.  
4.66.  Article 67 concerns monopolies and exclusive service suppliers. Articles 67.1-4 mirror 
Article VIII.1-3 and 5 of the GATS.  
4.6  Sector specific provisions on services 
4.6.1  Financial services 4.67.  Annex 4 of the Agreement concerns financial services and contains several regulatory 
provisions. Section 1 sets out the scope and definitions used in the Annex. Section 1.2 defines the 
term financial services. Under Section 2.1, notwithstanding the provisions of Chapters 6, 7 and 8, a Party shall not be prevented from taking measures for prudential reasons, including ensuring the 
integrity and stability of the financial system. Section 3.1 provides that a Party may recognise the 
prudential measures of any international standard setting body or non-Party in determining its prudential measures. Section 4 requires that any arbitral tribunals set up under Article 136 for disputes on prudential measures must have necessary expertise relevant to the specific financial 
service under dispute. 
4.68.  Section 5 of Annex 4 concerns new financial services. Section 5.1 provides that a Party shall 
permit a financial service supplier that has a commercial presence and is properly authorized to do 
business in its Area to supply any new financial service that the Party would permit its own service 
providers to supply. Section 6 precludes the Parties from taking measures that prevent transfers of information or the processing of financial information by electronic or other means that are 
necessary for the ordinary business of a financial service supplier. Section 7 requires the Parties to 
hold meetings to exchange views on issues relating to financial services through appropriate fora existing at the time of entry into force of the Agreement. 
4.6.2  Telecommunications services 
4.69.  Annex 5 of the Agreement concerns telecommunication services and contains several 
regulatory provisions. Section 1.1 provides that the Annex applies to trade in telecommunication services. Section 1.3 states that the Annex shall not apply to measures affecting broadcasting 
services. Section 1.4 provides that the Annex shall not be construed (a) to require a Party to 
authorise a service supplier to set up telecommunications transport networks or services, otherwise as set out in its commitments under Annex 6, or (b) to require a Party to set up 
telecommunications transport networks or services not offered to the public generally. Section 2 
contains definitions of telecommunications terms used in Annex 5. Section 3.1 concerns access to and use of public telecommunications transport networks and services. It requires that each Party ensure that any service supplier is accorded access to and use of public telecommunications 
networks and services on non-discriminatory terms and conditions, for the supply of a service set 
out in its Schedule of Commitments in Annex 6 to the Agreement. Section 3.2 lists particular obligations in respect of the requirement set out in Section 3.1 to ensure that any service supplier 
of the other Party is accorded access to and use of public telecommunications transport networks 
and services on reasonable and non-discriminatory terms and conditions. Several of the obligations are broader than the GATS Annex on Telecommunications. Section 3.3 requires the 
Parties to ensure that service suppliers are able to use public communications transport networks 
for the movement of information within and across borders, including for intra-corporate communications. Section 3.4 permits a Party to take actions to ensure the security and 
                                               
 33 For Japan: Southwest Asia Division, Southeast and Southwest Asian Affairs Department, Ministry of 
Foreign Affairs. For India: Trade Policy Division (Ser vices) Department of Commer ce, Ministry of Commerce 
and Industry. WT/REG300/1/Rev.1 
 
- 33 - 
 
  confidentiality of messages or to protect the person al data of users, provided that such measures 
are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade in services. Sections 3.5, 3.6 and 3.7 describe the rights of the Parties to impose additional conditions on access to public telecommunications 
transport networks.  
4.70.  Section 4 of Annex 5 requires that a Party ensure interconnection between a supplier of 
public telecommunications transport networks and other suppliers. Section 7 requires each Party 
to ensure that any major supplier (who have control over essential facilities) in its Area accords 
suppliers of public telecommunications transport networks or services of the other Party treatment no less favourable than it accords itself. Section 8 requires the Parties to maintain measures for the purpose of preventing major suppliers from en gaging in anti-competitive behaviour. Section 9 
provides that each Party shall ensure that major suppliers provide interconnection at any specified 
technically and commercially feasible point in the network. Section 10 provides that Parties shall endeavour to encourage major suppliers in its Area (who have control over essential facilities) 
provide suppliers of the other Party with leased circuit services that are public telecommunications 
transport services on terms that are not unduly unfavourable or disadvantageous.  
4.71.  Section 11 concerns the obligation of each Party to ensure universal service in a 
transparent, non-discriminatory and competitively neutral manner. Section 12 requires that 
criteria for the administration of a telecommunications licence be publicly available. Section 13 requires each Party to ensure that its telecoms  telecommunications regulatory body and dispute 
resolution body are independent and not accountable to any of its suppliers. Section 14 contains 
more detailed requirements on allocation and us e of resources than the GATS Telecommunications 
Reference Paper. Section 15 requires that suppliers have timely access to the telecommunications regulatory body or dispute resolution body. Section 16 sets out transparency obligations for access 
to and use of public telecommunications transport networks and services. Section 17 permits the 
Parties to take action against unsolicited commercial emails for advertising purposes.  
5  GENERAL PROVISIONS OF THE AGREEMENT 
5.1  Transparency 
5.1.  Article 4 of the Agreement concerns transpar ency. Article 4.1 requires that each Party publish 
or otherwise make publicly available laws, regulations, administrative procedures and administrative rulings and judicial decisions of general application, with respect to any matter 
covered by the Agreement. Article 4.2 requires the Parties to make available the contact details of 
the authorities responsible for the matters referred to in Article 4.1. Article 15 on communications, requires that the Parties designate contact points for communications between the Parties on any 
matter covered by the Agreement.  
5.2  Current payments and capital movements 5.2.  Article 25.1 provides that nothing in Chapter 2 (trade in goods) shall be construed to prevent 
a Party from taking any measure for balance-of-payments purposes. A Party taking such measures 
shall do so in accordance with the conditions established under Article XII of the GATT 1994 and the Understanding on Balance-of-Payments Provis ions of the GATT 1994 in Annex 1A of the WTO 
Agreement. Article 25.2 notes that nothing in Chapter 2 shall be taken to preclude the use of 
exchange controls or exchange restrictions in a ccordance with the Articles of Agreement of the 
IMF.  
5.3.  Article 68 of the Agreement (on payments an d transfers) mirrors Article XI of the GATS and 
provides that a Party shall not apply restrictions on international transfers and payments, except 
as provided in Article 69. Article 69, which mirrors Article XII.1-4 of the GATS, permits the taking of balance of payments actions in the event of or threat of a serious balance of payments and 
external financial difficulties, subject to the cond itions set out in Article 69.2 of the Agreement.  
5.3  Exceptions 5.4.  Article 11 of the Agreement concerns exceptions. Article 11.1 provides that Articles XX and 
XXI of the GATT 1994 are incorporated into the Agr eement, mutatis mutandis, except in respect of WT/REG300/1/Rev.1 
 
- 34 - 
 
Chapters 6 (trade in services) and 9 (intellectua l property). Article 11.2 provides that for the 
purposes of Chapters 6 and 8 (investment), Articles XIV and XIV bis of the GATS are incorporated 
into the Agreement, mutatis mutandis. Article 10 of the Agreement excludes any measures on 
taxation from the provisions of the Agreement, unless otherwise provided for in the Agreement. 
The Agreement will not affect the rights and obligations of the Parties under any tax convention 
which will prevail in the event of any inconsistency with the Agreement. 
5.4  Accession and withdrawal 
5.5.  There are no provisions on accession to  the Agreement. Either Party may terminate the 
Agreement by giving one year's advance notice to the other Party (Article 147). 
5.5  Institutional framework 5.6.  Article 13 of the Agreement provides that the Governments of the Parties shall conclude a 
separate agreement setting forth the details and procedures for the implementation of the 
Agreement ("the Implementing Agreement"
34). Article 14.1 of the Agreement provides that a Joint 
Committee shall be established to review and mo nitor the implementation of the Agreement, 
consider and recommend amendments to the Agreem ent, and supervise and coordinate work of all 
sub-committees under the Agreement. The Committee is also responsible for adopting the Implementing Procedures referred to in Section 11 of Annex 3 and any necessary decisions.  
5.6  Dispute settlement 
5.7.  Chapter 14, Articles 133-142, concern dispute settlement. Article 133.2 provides that nothing 
in the Chapter shall prejudice any right of th e Parties to dispute settlement under the WTO 
Agreement. Article 133.3 provides that once an arbitral tribunal has been established under the 
Chapter, or a panel is established under the WTO DSU, that tribunal or a panel shall be used to the 
exclusion of any other procedure for that particular dispute.  
5.8.  Article 134 provides that the dispute settl ement procedures shall be commenced through a 
written request (134.1) to engage in consultations (134.2). Article 134.2 further provides that 
upon receipt the defending Party shall engage in consultations in good faith within 30 days
35, with 
a view to reaching a mutually satisfactory solution to the dispute. Article 135 permits the use of 
good offices, conciliation or mediation at any stage in a dispute, upon request by either Party. 
Article 136 concerns the establishment of Arbi tral Tribunals. Article 136.1 provides that a 
complaining Party may request the establishment of an arbitral tribunal (a) if the other Party does not respond to a request for consultations per Article 134.2 within the applicable time-limit, or (b) 
if the Parties fail to resolve the dispute through consultations within 60 days. The complaining 
Party must consider that a benefit accruing to it directly or indirectly under the Agreement is being nullified or impaired as a result of the failure of the respondent Party to respect its obligations 
under the Agreement or as a result of the appl ication by the respondent Party of measures 
inconsistent with the Agreement. Article 136.2 requires that the application for establishment of an arbitral tribunal must identify the factual and legal basis of the complaint.  
5.9.  Article 137 establishes the functions of arbitral tribunals. Article 138 sets out the rules of 
procedure for arbitral tribunals. Article 140.1-9 conc erns the implementation of an award issued by 
an arbitral tribunal. Article l41 provides that, unl ess otherwise agreed by the Parties, each Party 
shall bear costs of an arbitral tribunal in equal shares and their own expenses. 
                                               
34 See the Implementing Agreement between the Government of Japan and the Government of the 
Republic of India, pursuant to Article 13 of the Comprehensive Economic Partnership Agreement between 
Japan and the Republic of India.   
35 15 days in cases of urgency, including those concerning perishable goods.   WT/REG300/1/Rev.1 
 
- 35 - 
 
  Chart 5.1 Dispute Settlement Mechanism of the Agreement 
 
 
  
 
  
 
   
 
  
 
  
 
   
 
  
 
  
 
   
 
  
 
  
 
   
 
  
 
  
 
   
 
  
 
Source: The Agreement. 30 days 30 days (15 days for urgent 
matters/perishable goods) 
Request for establishment of Arbitral Tribunal (Art. 136) 
30-45 days 
Arbitral Tribunal Established 
Final Award (Art. 138.7)  
Implementation (20 days to notify if will 
require additional time) (Art. 140) Notification of Suspension of 
benefits (Art. 140.3.5) 
Request for Arbitral Panel to review  
compliance or level 
of suspension of benefits  
(Art. 140.7) 120 days 
Tribunal examination of compliance  
Draft Award to Parties (15 days to review) (Art. 138.6) 
Decision of Arbitral 
Tribunal Request for Consultations  
(Art. 134) 
(60 days for urgent 
matters/perishable 
goods) 
60 da ys Consultations Non-implementation (Art. 140.3-5)  
Within 30 days No compensation 
is agreed 
(within 30 days). 
30 days Tribunal confirms 
non-compliance (Art. 140.5) 
30 days Request for a Tribunal to 
review implementation 
(Art. 140.4) Consultations for 
compensation (Art. 140.3) 
Suspension of benefits (Art. 140.6)  If the Party complained against 
considers it impracticable to comply with the award within 
the implementation period. If the complaining Party 
considers that the Party complained against
 failed 
to implement the award. 
60 days  
(30 days for urgent matters/ 
perishable goods) 
Request for Consultations by the Party complained against (Art.
 140.7)  
Consultations (within 10 days)  WT/REG300/1/Rev.1 
 
- 36 - 
 
5.7  Relationship with other agreements concluded by the Parties 
5.10.  Article 12.1 of the Agreement provides that the Parties reaffirm their rights and obligations 
under the WTO Agreement and any other agreements to which both Parties are parties. Article 12.2 provides that in the event of any inconsistency between the Agreement and any other 
Agreement to which the Parties are parties, the Parties shall immediately consult with each other 
with a view to reaching a mutually satisfactory solution, taking into consideration general principles of international law. Table 5.1 below shows participation by the Parties in other RTAs 
(notified and non-notified if any). 
Table 5.1 India and Japan: Participation in other RTAs (notified and non-notified in 
force), as of 9 July 2013 
Partner/ 
Agreement Date of 
entry 
into 
force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
INDIA 
Malaysia 01.07.11 Goods & 
Services 2011 Enabling Clause & GATS Art. V  
ASEAN 01.01.10 Goods 2010 Enabling Clause 
Rep. of Korea 01.01.10 Goods & 
Services 2010 GATT Art. XXIV, Enabling 
Clause & GATS Art. V 
Nepal 27.10.09 Goods 2010 Enabling Clause 
MERCOSUR 01.06.09 Goods 2010 Enabling Clause 
Chile 17.08.07 Goods 2009 Enabling Clause 
Bhutan 29.07.06 Goods 2008 Enabling Clause 
SAFTA 01.01.06 Goods 2008 Enabling Clause 
Singapore 01.08.05 Goods & 
Services 2007 GATT Art. XXIV & GATS Art. V 
Afghanistan 13.05.03 Goods 2010 Enabling Clause 
Sri Lanka 15.12.01 Goods 2002 Enabling Clause 
SAPTA 07.12.95 Goods 1997 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
APTA 17.06.76 Goods 1976 Enabling Clause 
Thailand (Early Harvest) 01.09.04 Goods Not notified 
JAPAN 
Peru 01.03.12 Goods & 
Services 2012 GATT Art. XXIV & GATS Art. V 
Viet Nam 01.10.09 Goods & 
Services 2009 GATT Art. XXIV & GATS Art. V 
Switzerland 01.09.09 Goods & 
Services 2009 GATT Art. XXIV & GATS Art. V 
Philippines 11.12.08 Goods & 
Services 2008 GATT Art. XXIV & GATS Art. V 
ASEAN 01.12.08 Goods 2009 GATT Art. XXIV 
Brunei Darussalam 31.07.08 Goods & 
Services 2008 GATT Art. XXIV & GATS Art. V WT/REG300/1/Rev.1 
 
- 37 - 
 
  Partner/ 
Agreement Date of 
entry 
into 
force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
Indonesia 01.07.08 Goods & 
Services 2008 GATT Art. XXIV & GATS Art. V 
Thailand 01.11.07 Goods & 
Services 2007 GATT Art. XXIV & GATS Art. V 
Chile 03.09.07 Goods & 
Services 2007 GATT Art. XXIV & GATS Art. V 
Malaysia 13.07.06 Goods & 
Services 2006 GATT Art. XXIV & GATS Art. V 
Mexico 01.04.05 Goods & 
Services 2005 GATT Art. XXIV & GATS Art. V 
Singapore 30.11.02 Goods & 
Services 2002 GATT Art. XXIV & GATS Art. V 
 
ASEAN: Association of So utheast Asian Nations 
SAFTA: South Asian Free Trade Agreement SAPTA: South Asian Preferential Trade Arrangement GSTP: Global System of Trade Preferences APTA: Asia Pacific Trade Agreement  
Source:  WTO Secretariat. 
 
5.8  Government procurement 
5.11.  Chapter 10, Articles 110-115 concern government procurement. Japan is a Party to the 
WTO Agreement on Government Procurement (GPA). India is an Observer to the GPA.  
5.12.  Article 110 establishes a "procurement principle" and requires both Parties to ensure the 
transparency of the measures regarding government procurement (in accordance with their respective national laws and regulations). Article 111 on non-discrimination provides that in 
respect of any measure regarding government procurement, each Party shall provide to the goods, 
services and suppliers of the other Party treatment no less favourable than that it accords to a non-Party's goods services and suppliers in accordance with its laws and regulations.  
5.13.  Article 113 provides that the Parties shall enter into negotiations to review Chapter 10 with 
a view to achieving a comprehensive chapter on government procurement. Such negotiations are mandated to commence when India expresses its intention to become a Party to the WTO Agreement on Government Procurement (GPA).
36 Article 114 provides that if a Party offers a 
non-Party any advantageous treatment concerning measures regarding government procurement, 
including access to its government procurement market, the Party shall, upon request of the other Party, afford the other Party an adequate opportunity to enter into negotiation with a view to 
extending such advantageous treatment to the other Party on a reciprocal basis. Article 115, on 
exceptions, provides in paragraph 1 that the Ch apter shall not apply to state governments and 
their entities and local governments for India, and to local governments for Japan. Article 115.2 
provides that nothing in the Chapter shall prevent a Party from taking action it considers necessary 
relating to the protection of its essential securi ty interests or for national security purposes.  
                                               
36 A Note to Article 113 of the Agreement provides "If the GPA is amended or is superseded by another 
agreement, "the GPA", for the purposes of this Chapte r, shall refer to the GPA as amended or such other 
agreement." WT/REG300/1/Rev.1 
 
- 38 - 
 
5.9  Intellectual property rights 
5.14.  Chapter 9, Articles 102-109 of the Agreement concern intellectual property. Article 104 
enjoins the Parties to take measures to enhance public awareness of the protection and enforcement of intellectual property rights.  
5.15.  Article 105, on patents, provides in paragraph 1 that neither Party shall require the rejection 
of a patent application on the grounds that the application includes a computer programme. Article 105.2 requires a competent authority that intends to refuse an application for a patent to 
provide advance notice of the reasons for such rejection and provide the applicant with an 
opportunity to comment on the proposed refusal within a reasonable period of time. Article 105.3 requires that a patent owner may seek to correct the description, scope of the claim or drawings attached to the patent application for the purpose of restriction of the scope of the claims.  
5.16.  Article 106 concerns trademarks. Article 106.1 requires each Party to protect "well-known" 
trademarks. Article 106.1(a) provides that each Party may determine in accordance with its laws whether a trademark is "well-known". Article 106.1(b)  requires each Party to refuse an application 
for or invalidate any application to register a trademark that is identical or similar to a well-known 
trademark in accordance with certain criteria. Article 106.1(c) provides that each Party shall determine that a trademark is well known if it is well known in the other Party, or if it is well 
known in both Parties. 
5.17.  Article 107 on geographical indications provid es that each Party shall ensure protection of 
geographical indications in accordance with its laws and regulations and in conformity with the 
WTO Agreement on TRIPS. Article 108 on unfair competition requires each Party to ensure 
protection against acts of unfair competition in accordance with Article 10 bis of the Paris 
Convention for the Protection of Industrial Prop erty. Article 109 on security exceptions expressly 
incorporates Article 73 of the Agreement on TRIPS into the Agreement, mutatis mutandis . 
5.10  Other  
5.11  Competition 5.18.  Chapter 11, Articles 116-122 of the Agreement concern competition. Article 116 requires 
each Party (in accordance with its laws and regulations) to take measures it considers appropriate 
against anticompetitive activities in order to facilitate trade and investment flows between the Parties and the efficient functioning of the market . Article 118 enjoins the Parties to endeavour to 
cooperate on anticompetitive activities subject to their resources and in accordance with their laws 
and regulations. Article 119 requires each Party to apply its competition laws and regulations in a 
manner which does not discriminate between persons in like circumstances on the basis of nationality. Article 120 concerns procedural fair ness requirements. Article 121 requires each Party 
to promote transparent implementation of its competition laws, regulations and policy. Article 122 
provides that Chapter 14 on dispute settl ement shall not apply to Chapter 11.  
5.12  Improvement of Business environment 
5.19.  Chapter 12, Articles 123-127 concerns the improvement of the business environment. 
Article 123 sets out basic principles, and provides that the Parties shall take appropriate measures in accordance with its laws and regulations to further improve the business environment for the enterprises of the other Party conducting business activities in its Area. Article 124 establishes a 
Sub-Committee on improvement of the business enviro nment. Its functions are described in Article 
124.2. Article 127 provides that the dispute settlement procedures in Chapter 14 shall not apply to this Chapter.  
5.13  Co-operation 
5.20.  Chapter 13, Articles 128-132 concern co-operation. Article 128 sets out the basic principles 
of the Chapter. Article 129 describes the fields of co-operation under the Chapter; (a) 
environment, (b) trade and investment promotion, (c) infrastructure, (d) information and 
communications technology, (e) science and technology, (f) energy, (g) tourism, (h) textiles, (i) small and medium enterprises, (j) health, (k) en tertainment and information, (l) metallurgy and WT/REG300/1/Rev.1 
 
- 39 - 
 
  (m) other fields to be mutually agreed by the Parties.37 Article 130 provides that the scope and 
forms of co-operation may be set forth in the implementing Agreement. Chapter 4 of the Implementing Agreement, Articles 17-29 set out the scope and form of co-operation under the 
fields identified in Article 129 of the Agreement. Article 131.1 requires the Parties to initiate and 
promote discussions between individual implementing  agencies to explore potential co-operation 
activities under the fields listed in Article 129, and to respect the established consultation mechanism between them. Article 132 provides that dispute settlement procedures provided for in 
Chapter 14 shall not apply to the Chapter.  
5.14  Environment 5.21.  Article 8 of the Agreement, on environmen tal protection, requires that the Parties ensure 
that their laws and regulations provide for adequate levels of environmental protection and strive 
to improve such laws and regulations (Article 8.1). Article 8.2 requires each Party to take 
appropriate governmental action such as monitoring compliance with, and investigating violations of environmental laws and regulations. Article 8.3 exhorts the Parties to endeavour to (a) increase 
public awareness of environmental policy an d (b) encourage trade and dissemination of 
environmentally sound goods and services. In Article 8.4 the Parties reaffirm their rights and obligations under any international agreements concerning the environment to which both Parties 
are party.  
5.22.  Article 99 of the Agreement provides that each Party recognizes that it is not appropriate to 
encourage investment activities by relaxing environmental measures. The Parties are encouraged to not waive or otherwise derogate from environmental measures as an encouragement for 
establishment, acquisition, or expansion of investments in its Area. 
 
                                               
37 No additional fields for co-operation ha ve yet been agreed by the Parties.   WT/REG300/1/Rev.1 
 
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ANNEX 1 
MARKET ACCESS INDICATORS 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and MFN average rates in force on the date  of entry into force of the Agreement is shown 
below in Tables A1.1 (for Japan), and A1.2 (for In dia). The figures are shown for total, agricultural 
and non-agricultural products.  
2. Table A1.1 shows that in 2011, around 41.6% of Japan's tariff was duty free, 25.5% for 
agricultural products and 45.5% for non-agricultural products. The overall average MFN tariff was 
4.6%, 11% for agricultural products compared to 3.3% for non-agricultural products. As a result 
of the entry into force of the Agreement, an additional 39.3% of the tariff became duty free for imports from India, providing Indian export ers with an average margin of preference
1 of 53.2%, of 
which 12.7% for agricultural and 78. 8% for non-agricultural products. 
3. After 10 years of implementation the share of  duty free lines for imports from India is 
expected to rise to 88.4%, of which 57.2% for agricultural products and 95.9% for 
non-agricultural products. By the end of the implem entation period, 88.9% of all products will be 
liberalized; 95.9% of non-agricultural product tariff lines will be liberalized and 59.6% for agricultural products.  
Table A1.1 Japan: Indicators of MFN tariff ra tes and preferential rates for imports from 
India
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2011 4.7 8.1 41.6 11.0 15.5 25.4 3.3 6.0 45.5 
India 2011 2.2 13.2 80.9 9.6 17.6 39.7 0.7 7.6 90.8 
 2012 2.2 12.9 80.9 9.4 17.2 39.7 0.6 7.3 90.8 
 2013 2.1 12.5 80.9 9.2 16.8 39.7 0.6 7.0 90.8 
 2014 2.1 12.2 80.9 9.0 16.4 39.7 0.6 6.7 90.8 
 2015 2.0 11.9 80.9 8.8 16.0 39.7 0.6 6.4 90.8 
 2016 1.9 11.5 80.9 8.6 15.7 39.7 0.5 6.1 90.8 
 2017 1.9 11.2 80.9 8.4 15.3 39.7 0.5 5.8 90.8 
 2018 1.8 11.2 81.4 8.1 15.1 40.4 0.5 5.8 91.2 
 2019 1.8 10.8 81.4 7.9 14.7 40.4 0.5 5.5 91.2 
 2020 1.7 10.5 81.4 7.7 14.4 40.4 0.4 5.2 91.2 
 2021 1.6 17.4 88.4 7.5 21.6 57.2 0.4 10.0 95.9 
 2022 1.6 17.4 88.4 7.5 21.5 57.2 0.4 10.0 95.9 
 2023 1.6 17.3 88.4 7.5 21.4 57.2 0.4 10.0 95.9 
 2024 1.6 17.3 88.4 7.4 21.3 57.2 0.4 10.0 95.9 
 2025 1.6 17.2 88.4 7.4 21.2 57.2 0.4 10.0 95.9 
 2026 1.6 18.0 88.9 7.4 22.8 59.5 0.4 10.0 95.9 
 
a WTO Definition.  Note: For tariff lines subject to TRQs at the MFN level, only the out-of-quota duty is included in the tariff-
related calculations; for the calculation of av erages, specific duties are excluded and the ad valorem  
parts of alternate rates are included. 
Based on the HS 2007 nomenclature. 
 Source:  WTO estimates based on data provided by Japan.  
4. In 2011 (Table A1.2) 3.0% of India's tariff was duty free on an MFN basis, 6% for 
agriculture and 2.6% for non-agricultural prod ucts. The overall average MFN tariff was 12.4%, 
with non-agricultural products 9.3% and agricultural goods at 34.2%. As a result of the 
                                               
1 MOP = ((MFN-Preferential)/MFN) x 100 (Relative MOP). WT/REG300/1/Rev.1 
 
- 41 - 
 
  Agreement's entry into force, the share of duty free lines for imports from Japan rose to 19.2% 
from 3.0% (MFN). The preference margin for all goods was 18.5%, 5.6% for agricultural goods, and 25.8% for non-agricultural goods.  
5. At the end of the implementation period (2021)  the share of duty free lines for imports from 
Japan is expected to rise to 86.6%, of which 67.3% for agricultural products and 89.4% for 
non-agricultural products.  
Table A1.2 India: Indicators of MFN tariff ra tes and preferential rates for imports from 
Japan
 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2011 12.4 12.8 3.0 34.2 36.4 6.0 9.3 9.5 2.6 
Japan 2011 10.1 12.5 19.2 32.3 35.0 7.6 6.9 8.7 20.9 
 2012 9.4 11.7 19.2 31.0 33.6 7.6 6.3 8.0 20.9 
 2013 8.8 10.9 19.2 29.6 32.1 7.6 5.8 7.3 20.9 
 2014 8.1 10.1 19.2 28.3 30.6 7.6 5.2 6.6 20.9 
 2015 7.5 9.3 19.2 26.9 29.1 7.6 4.7 5.9 20.9 
 2016 6.8 8.9 23.7 25.4 27.6 8.1 4.1 5.6 26.0 
 2017 6.2 8.1 23.7 23.7 25.8 8.1 3.6 4.9 26.0 
 2018 5.5 7.2 23.7 22.1 24.1 8.1 3.1 4.2 26.0 
 2019 4.9 6.4 23.7 20.5 22.3 8.1 2.6 3.5 26.0 
 2020 4.2 5.5 23.7 18.9 20.5 8.1 2.1 2.8 26.0 
 2021 3.6 26.7 86.6 17.2 52.7 67.3 1.6 15.0 89.4 
 
a WTO Definition.  Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. 
 Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided  by India and information from the Agreement. 
 
6. Tables A1.3 and A1.4 below show market access opportunities for India's top 25 exports to 
Japan and for Japan's top 25 exports to India. Th e tables show how many of the top 25 exports 
have improved market access as a result of the Agreement. 
7. Table A1.3 shows that India's top 25 exports which accounted for 47.3% of its global 
exports were covered by 87 tariff lines. Of these, 35 were already duty free on an MFN basis in 
2011 whilst 52 were subject to tariffs. In 2011, 14 further tariff lines became duty free, and at the end of the implementation period 33 items will be duty free, with 5 remaining dutiable (frozen beef products and rice).  
Table A1.3 Japan: Market access opportuniti es under the agreement for India's top 25 
exports
 
India's top export products in 2008-2010  Access Conditions to Japan's import markets  
MFN (2011)  Duty-free 
in 
Remain 
dutiable  
HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  No. of tariff lines  
Duty
-free  Dutiable 2011 2021  
271019 Petroleum oils & oils obtained 
from bituminous minerals (other than crude) & preparations not elsewhere specified/incld., containing by weight 70 %/more of 
petroleum oils/of oils obtained from 
bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils & light oils & preparations 9.9 2.2 9 22 4 18  WT/REG300/1/Rev.1 
 
- 42 - 
 
India's top export products in 2008-2010  Access Conditions to Japan's import markets  
MFN (2011)  Duty-free 
in 
Remain 
dutiable  
HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  No. of tariff lines  
Duty
-free  Dutiable 2011 2021  
710239 Diamonds, non-industrial other than 
unworked/simply sawn/cleaved/bruted 9.0 0.0 1     
271011 -- light oils and preparations 5.7 1.3 5 11 1 10  
711319 -- of other precious metal, whether or 
not plated or clad with precious metal 3.8 5.3  3  3  
260111 -- non-agglomerated 2.9 0.0 1     
300490 Medicaments (excluding goods of 
heading 30.02/30.05/30.06/3004.10-
3004.50) consisting of mixed/unmixed 
products for therapeutic/prophylactic 
uses, put up in measured doses 
(including those in the form of 
transdermal administration systems)/in 
forms/packings for retail sale 1.6 0.0 4     
100630a - semi-milled or wholly milled rice, 
whether or not polished or glazed 1.3 0.0 1 1   1 
740311 -- cathodes and sections of cathodes 1.2 2.0 1 2  2  
294200 Other organic compounds. 1.2 3.9  1 1   
870322 -- of a cylinder capacity exceeding 
1,000 cc but not exceeding 1,500 cc 1.0 0.0 1     
520100 Cotton, not carded or combed. 1.0 0.0 1     
230400 Oil-cake and other solid residues, 
whether or not ground or in the form of 
pellets, resulting from the extraction of 
soyabean oil. 0.9 0.0 1     
730511 -- longitudinally submerged arc welded 0.9 0.0 2     
851712 -- telephones for cellular networks or 
for other wireless networks 0.9 0.0 1     
610910 T-shirts, singlets & other vests, 
knitted/crocheted, of cotton 0.8 9.7  3 3   
711419 -- of other precious metal, whether or 
not plated or clad with precious metal 0.7 3.3  1 1   
020230 Meat of bovine animals, frozen, 
boneless 0.6 38.5  4   4 
870321 -- of a cylinder capacity not exceeding 
1,000 cc 0.6 0.0 1     
620630 Women's/girls' blouses, shirts & shirt-
blouses (excl. knitted/crocheted), of cotton 0.5 8.8  3 3   
880330 - other parts of aeroplanes or 
helicopters 0.5 0.0 1     
890590 Light-vessels, fire-floats, floating cranes 
& other vessels the navigability of which 
is subsidiary to their main function; floating docks 0.5 0.0 1     
721049 Flat-rolled products of iron/non-alloy 
steel, of a width of 600mm/more, other 
plated/coated with zinc (excl. 
electrolytically), other than corrugated 0.5 0.0 2     
890190 - other vessels for the transport of 
goods and other vessels for the transport of both persons and goods 0.4 0.0 1     
720241 -- containing by weight more than 4% 
of carbon 0.4 0.0 1     
030613 -- shrimps and prawns 0.4 1.0  1 1   
Total of above 47.3  35 52 14 33 5 
 
a Combination of duty- free and specific duty. 
 Note: Total share of top 25 products in global exports does not match the sum of each product's share 
because of round off. 
 Based on HS 2007 nomenclature.  Source: WTO estimates based on data provid ed by Japan and UNSD, Comtrade database.  WT/REG300/1/Rev.1 
 
- 43 - 
 
  8. Japan's top 25 exports to India in 2008-2010 accounted for 33.7% of its global exports. 
Twenty lines were duty free on an MFN basis in 2011, 87 lines were subject to duties. As a result 
of the Agreement 3 further tariff lines became duty free in 2011. In 2018 2 additional items will 
become duty free, and in 2021, 10 years after entry into force, 49 further lines will become duty 
free. At the end of the implementation period 33  items mainly relating to motor vehicles will 
remain dutiable.  
Table A1.4 India: Market access opportuni ties under the Agreement for Japan's top 
25 exports  
Japan's top export products in 2008-2010  Access Conditions to India's import markets  
MFN (2011)  Duty-free 
in 
Remain 
dutiable  HS number and description of the 
product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines  
Duty-
free Dutiable  
2011 
2018 
2021 
870323 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc 5.9 100.0  5    5 
870324 -- of a cylinder capacity exceeding 
3,000 cc 3.7 100.0  5    5 
890190 - other vessels for the transport of 
goods and other vessels for the transport of both persons and goods 1.9 10.0  1   1  
844399 -- other 1.7 1.7 7 2   2  
870840 - gear boxes and parts thereof 1.7 10.0  1    1 
271019 -- other 1.7 8.6 1 8  2 5 1 
854239 -- other 1.6 7.5  1   1  
870322 -- of a cylinder capacity exceeding 
1,000 cc but not exceeding 1,500 
cc 1.5 100.0  5    5 
852580 - television cameras, digital 
cameras and video camera recorders 1.4 10.0  4 1  3  
854232 -- memories 1.2 0.0 1      
890120 - tankers 1.1 10.0  1   1  
854231 -- processors and controllers, 
whether or not combined with 
memories, converters, logic 
circuits, amplifiers, clock and 
timing circuits, or other circuits 1.0 0.0 1      
852990 - other 0.9 8.3  3 1  2  
842952 -- machinery with a 360° revolving 
superstructure 0.9 7.5  1   1  
870899 -- other 0.8 10.0  1    1 
854140 - photosensitive semiconductor 
devices, including photovoltaic cells 
whether or not assembled in 
modules or made up into panels; 
light emitting diodes 0.8 0.0 4      
848620 - machines and apparatus for the 
manufacture of semiconductor 
devices or of electronic integrated circuits 0.8 7.5  1 1    
847989 -- other 0.7 7.5  9   9  
840991 -- suitable for use solely or 
principally with spark-ignition internal combustion piston engines 0.7 7.5  10   2 8 
870332 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 2,500 
cc 0.7 100.0  5    5 
870422 -- g.v.w. exceeding 5 tonnes but 
not exceeding 20 tonnes 0.6 6.7 1 2    2 
901380 - other devices, appliances and 
instruments 0.6 3.8 1 1   1  WT/REG300/1/Rev.1 
 
- 44 - 
 
Japan's top export products in 2008-2010  Access Conditions to India's import markets  
MFN (2011)  Duty-free 
in 
Remain 
dutiable  HS number and description of the 
product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines  
Duty-
free Dutiable  
2011 
2018 
2021 
381800 Chemical elements doped for use 
in electronics, in the form of discs, wafers or similar forms; chemical 
compounds doped for use in electronics. 0.5 0.0 2      
851770 - parts 0.5 0.0 2      
382490 - other 0.5 7.5  21   21  
Total of above 33.7  20 87 3 2 49 33 
 
Note: Total share of top 25 products in global exports does not match the sum of each product's share 
because of round off. 
 Based on HS 2007 nomenclature.  Source:  WTO estimates based on data provided by India, inform ation from the Agreement and UNSD, 
Comtrade database. 
 
__________