WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/JPN/58 
22 October 2012 
 (12-5751) 
Committee on Subsidies and  
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by BRAZIL1 Regarding the 
New and Full Notification of JAPAN2 
  
 The following communication, dated 19 October 2012, is being circulated at the request of the Delegation of Japan. 
 
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Question 1 
 
 According to para. 1, under section I - 'I ndustry' (page 5), the sole recipient of the 
'Subsidy of Expense to Investigate the Developm ent of Next Generation Airplanes' would be 
'The Japan Aircraft Development Corp'.  Plea se provide details about the eligibility criteria 
used, amount, recipients and a list of research proj ects that have been funded by this program. 
 
Reply 
 
 The applicant of this program needs to fulf il the general eligibility criteria such as having 
juridical personality, appropriate managerial and technical skills to accomplish the project, etc.  
  The recipient of this program is Japan Airc raft Developing Corp. The amount of subsidy 
actually paid each year is found in paragraph 8 of page 5 of our notification (G/SCM/N/220/JPN). 
  This program subsidizes market research  and competitiveness assessments of commercial 
airplanes with new technologies.  
 
Question 2 
 
 Could Japan identify among the programs listed in the 2011 NFN those which made disbursements in 2009/2010 for the aircraft manufacturing sector?  
 Reply 
 
 Japan notified 67 programs in its 2011 New and Full Notification. Among those notified, the 
program meant for disbursement to the aircraft indus try is the Subsidy of Expense to Investigate the 
Development of Next Generation Airplanes.  
 
                                                      
1 G/SCM/Q2/JPN/57. 
2 G/SCM/N/220/JPN.   G/SCM/Q2/JPN/58 
Page 2 
 
 
  Question 3 
 
 Could Japan provide details about the International Aircraft Development Fund (IADF)?  Could Japan describe terms and condition s, eligibility criteria and the total amount of 
the fund? 
 
Reply 
 
 The International Aircraft Development Fund  (IADF) is a public interest incorporated 
foundation established under the Act on Authorization of Public Interest Incorporated Associations 
and Public Interest Incorporated Foundation. IADF is engaged in and promot es the international and 
joint development of civil aircrafts. The endowment  fund of IADF is approximately 4.4 billion JPY. 
 
Question 4 
 
 Brazil would like to receive further information about the sectors that have received assistance through the "Subsidy for Research  and Development of Next Generation 
Technology". 
 
Reply 
 
 Construction, manufacturing, info rmation, and communications, etc. 
 Question 5 
 
 If possible, please provide also a list of projects that have received assistance through the "Subsidy for Research and Development of Next Generation Technology". 
 Reply 
 
 Examples of projects: 
 
Grand source heating system Photo catalyst materials New packing machine New stretching textile Application software for next generation vehicle 
 
Question 6  
 According to para. 1.7, section IV – Lo cal Governments, 'enterprises' and 'other 
entities' are eligible for the program.  What are the entities that have so far received assistance 
through this program?  Is there any institution, enterprise or entity taking part in this program 
that is related to the aircraft manufacturing sector? 
  G/SCM/Q2/JPN/58 
 Page 3 
 
 
  Reply 
 
 Only enterprises have received assistance through this program. None of them are related to 
the aircraft manufacturing sector. Providing the names of beneficiaries is not required under the 
Subsidies Agreement. 
 
Question 7 
  Regarding the 'subsidy for technologies for oil fuels contributing to the preservation of 
environment', what are the criteria used to meas ure if a given technology in fact contributes 
effectively to the preservation of environment?  
Reply 
 
This program aims at developing technology whic h contributes to the improvement of the quality of 
fuel. Whether or not the developed technology contributes to the preservation of the environment is assessed by the reduced emission of NOx (Nitroge n Oxide), PM (particulate matter), etc.   
 
Question 8 
 
 Please describe what econo mic sectors have received fundi ng through the "Subsidy for 
developing advanced future fuel technology". 
 
Reply 
 
 This program subsidizes research and devel opment which contribute to hydrogen production 
at the existing facilities in refineries or at gas st ations. Any economic sectors which are interested in 
this kind of research and developm ent are eligible for this program and the beneficiaries are quite 
diverse, including non-profit research institutions, petroleum institutions, etc.    
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