G/C/W/681  
 
24 July 2013  
(13-3970)  Page: 1/2  
Council for Trade in Goods  Original: English  
 
 
 
 QUESTIONS TO JAPAN REGARDING ITS WOOD USE POINTS PROGRAM 
 
 The following communication dated 16 July, 2013 is being circulated at the request of the 
delegation of Canada. 
   
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Background 
 1.1.  On 1 April 2013, Japan implemented the Wood Use Points Program. Under this initiative, 
participating consumers who purchase new homes built with a minimum of 50.1% of Chiikizai 
(local) wood products will be eligible to receive up to 300,000 Wood Use Points (with an equivalent value in Yen), which can be redeemed  through the purchase of specified local forestry/agriculture/fishery products, or alternatively, donated to support certain local economic 
activities.  
1.2.  According to Japan's Forest ry Agency, the purpose of the prog ram is to increase the supply 
and utilization of Japanese forest products in the domestic market. Funding for the program was 
provided for one year (until 31 March 2014); however, it is possible that the program could be 
renewed. With an initial budget allocation of ¥41 billion, this program could potentially impact construction on more than 135,000 new homes. 
1.3.  Information on the program conveyed thus far by Japan does not provide certainty with 
respect to the treatment of non-Japanese forest products or the anticipated duration of this initiative. Canada and the European Union requeste d that the issue be placed on the agenda for 
the 11 July 2013 meeting of the Council for Trade in  Goods.  In advance of that meeting, Canada 
submitted the following questions to Japan concerning the Wood Use Points Program. As indicated 
during the CTG meeting, Canada is hereby circulating these questions to Members for their information.  
a. What is the objective of the Wood Use Points Program? 
b. What impact does Japan envisage that there might be on imported wood products as a 
result of Wood Use Points Program? 
c. How will the Wood Use Points Program be consistent with Japan's WTO commitments, 
specifically the commitment to accord "… treatment no less favourable than that accorded to like products of national origin in respect of all laws, … or use" as provided for by Article 3.4 of the GATT? 
d. There is a lack of transparency associated with the eligibility criteria related to 
construction methods related to wood materi als. The examples provided on the Japan 
Forestry Agency web site only identify Japanese tree species and specific construction 
products. Does Japan intend to publish clearer eligibility criteria and include examples of G/C/W/681 
 
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  potentially eligible non-Japanese tree species and examples of a variety of potentially 
eligible construction products, such as oriented strand board?  
e. Why does the Wood Use Points Program require that wood products originate specifically 
from "growing forest resources", instead of accepting wood from all sustainably 
managed forests, including stable forest resources?  
f. What is the scope of products/services that can be purchased through the redemption of 
points acquired through this program? Will the list of eligible products/services vary from 
prefecture to prefecture? Can points be redeemed for imported products? Is the 
redemption of points limited to private citizens or can other entities also redeem points? 
g. Can Japan please confirm that the Wood Use Points Program requires exporters to 
provide an economic impact assessment of their wood products in the Japanese 
marketplace? If yes, can Japan explain what information is being sought? Is this 
requirement also imposed on Japanese producers? 
h. We understand that, in order for wood products to be accepted to the program, it must 
be demonstrated, by species, that the wood products come from a "growing resource". 
Please clarify, if the terminology "growing resource" is with respect to the specific region in which the species grows, or if it is to be considered across all forest regions, even if 
the species does not exist in other forest regions. 
 
  
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