RESTRICT ED 
  
WT/TPR/G/35 1 
18 January  2017 
(17-0320) Page: 1/18 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
JAPAN 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Japan  is 
attached.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Japan . WT/TPR/G/35 1 • Japan  
 
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  Contents  
1   TRADE AND ECONOMIC E NVIRONMENT  ................................ ................................ ....... 3 
1.1   Japan's Economic Environment  ................................ ................................ ......................  3 
1.2   Trends in Foreign Trade  ................................ ................................ ................................  3 
1.3   Trends in Foreign Direct Investment  ................................ ................................ ..............  3 
2   TRADE AND INVESTMENT  POLICY  ................................ ................................ ...............  4 
2.1   Overview  ................................ ................................ ................................ ....................  4 
2.2   WTO ................................ ................................ ................................ ..........................  5 
2.2.1    Rule setting  ................................ ................................ ................................ .............  5 
2.2.2    Dispute settlement  ................................ ................................ ................................ .... 5 
2.2.3    Development  ................................ ................................ ................................ ............  5 
2.3   FTA/EPAs  ................................ ................................ ................................ ....................  6 
2.4   Other Regional/Bilateral Arrangemen ts ................................ ................................ ...........  8 
2.4.1    Asia-Pacific Economic Cooperation (APEC)  ................................ ................................ ... 8 
2.4.2    Asia-Europe Meeting (ASEM)  ................................ ................................ ......................  8 
2.4.3    Japan's Bilateral Activities outside of FTAs  ................................ ................................ ... 9 
2.5   Investment Policy  ................................ ................................ ................................ .......11 
2.5.1    Outlook  ................................ ................................ ................................ .................. 11 
2.5.2    Investment Agreements  ................................ ................................ ........................... 11 
3   TRADE AND DEVELOPMEN T ................................ ................................ .......................  12 
3.1   Aid for Trade  ................................ ................................ ................................ .............. 12 
3.2   Generalized System of Preferences (GSP)  ................................ ................................ ......13 
4   JAPAN'S DOMESTIC POL ICIES  ................................ ................................ ...................  13 
4.1   Abenomics  ................................ ................................ ................................ ................. 13 
4.2   Intellectual Property Rights  ................................ ................................ .......................... 14 
4.3   Financial Reform ................................ ................................ ................................ ......... 15 
4.4   Agricultural Reform  ................................ ................................ ................................ .....16 
4.5   Competition Policy  ................................ ................................ ................................ ......17 
4.6   Services-Related Policies  ................................ ................................ ............................. 18 
 
 WT/TPR/G/35 1 • Japan  
 
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  1  TRADE AND E CONOMIC ENVIRONMENT  
1.1  Japan 's Economic Environment  
1.1.  The Japanese economy has continued to recover moderately since November 2012, on the 
back of improvements in the employment and income en vironments. Nominal GDP, real GDP and 
the GDP deflator in FY2015 grew simultaneously from the previou s year for the first time in 
18 years. The current administration 's economic policies, "Abenomics ," are still at about the 
halfway point, but progress has been made in reviving economic activities and overcoming 
deflation as a whole.  However , the domestic economy lacks momentum in private consumption 
and business fixed investment  in spite of improving corporate profits, employment and income. 
Major risks are  still attached to the uncertainty over the global economy including emerging 
economies.  
1.2  Trends in Foreign Trade  
1.2.  In 201 5, the value of exports from Japan increased to ¥75.6 trillion and that of imports to 
Japan decreased to ¥78.4 trillion. As a result, the  trade deficit shrunk to ¥2.8 trillion. Th is 
shrink age resulted in a deficit trade balance for  the first time since 2011.  On the other hand, both 
the volume of exports from Japan and that of imports to Japan showed negative growth compared 
to the previous year, exports decreased by 1% and imports decreased by 2.8% . 
1.3.  The total value of exports from Japan in 2015 amounted to ¥ 75.6 trillion ( an increase 
of 3.4% from 2014). 
- Regional trends in the total value of exports in 2015 (compared to 2014) 
 
China  down  by 1.2% 
Chinese  Taipei  up by 5.7% 
Republic of Korea  down by 2.4%  
ASEAN  up by 3.7% 
United States  of America  up by 11.5% 
European Union (EU)  up by 5.3% 
 
1.4.  The total value of imports to Japan in 2015 amounted to ¥ 78.4 trillion (a decrease  of 8.7% 
from 2014). 
- Regional trends in the total value of imports in 2015 (compared to 2014) 
 
China  up by 1.3% 
ASEAN  down  by 3.3% 
Australia  down  by 17.3% 
United States of America  up by 6.9% 
European Union (EU)  up by 5.6% 
Middle East  down  by 39.5% 
 
1.3  Trends in Foreign Direct Inves tment  
1.5.  The amount of Outward FDI stocks increased from ¥119.3 trillion (24.9% of GDP) in 2013 to 
¥151.6 trillion (30.4% of GDP) in 2015.  The amount of Inward FDI stocks increased from 
¥19.6  trillion (4.1% of GDP) in 2013 to ¥24.4 trillion (4.9% of GDP) in 2 015.  
2015 Outward FDI  
1.6.  According to a Ministry of Finance report, Japan's outflow of FDI (Outward FDI) increased to 
¥15,828.7 billion in 2015, which represents an increase of 9.4% from 2014 (an increase of 
¥1,357.8 billion). The major characteristics of Ja pan's Outward FDI in 2015 were as follows:  
- By Industry: In 2015, Outward FDI in manufacturing i ndustries decreased to 
¥5,756.2  billion (i.e. by -15.6%). The petroleum and food sectors decreased sharply . 
On the other hand, Outward FDI in non -manufacturing  industries incr eased to WT/TPR/G/35 1 • Japan  
 
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  ¥9,816.5  billion (i.e. by 43.3%). The sectors such as transportation, real estate, finance 
and insurance increased sharply.  
- By Region: In 2015, Outward FDI to North America increased by 4.6% to 
¥5,559.9 billion. On the other hand , Outward FDI to Asia decreased by -14.9% to 
¥3,905.7 billion, to Europe by 43.2% to ¥4,195.1 billion, and to Central & 
South  America by 33.8% to ¥9 35.8 billion . 
2015 Inward FDI  
1.7.  The FDI flow to Japan (Inward FDI) decreased from ¥1,924.3 billion in 2014 to minus 
¥16.4  billion in 2015. The major characteristics of inward FDI flow to Japan in 2015 were as 
follows : 
- By Industry: In 2015, Inward FDI in the manufacturing industries decreased to minus 
¥289.4 billion. The sector of chemicals and pharmaceuticals, t ransportation equipment 
decreased. And Inward FDI in the non -manufacturin g industries decreased to 
¥17.0  billion. The sectors of real estate, wholesale and retail decreased.  
- By Region: In 2015, the Inward FDI from all regions decreased.  
2  TRADE AND INVEST MENT POLICY  
2.1  Overview  
2.1.  Since the twelfth  meeting of the Trade Policy Review on Japan in 201 5, Japan has been 
committed  to trade liberalization under the multilateral trading system centered on the WTO. 
Japan is determined to be fully engaged in this non-discriminatory, open and rule -based regime.  
2.2.  While committed  to the multilateral trade negotiations, Japan is also pursuing the conclusion  
of Economic Partnership Agreements (EPAs) , both bilateral and regional,  and plurilateral trade 
agreements. The negotiation s of EPAs and plurilateral agreements will enhance the transparency  
of the respective member country 's economic policy and reinforce the competitiveness of its 
industr ies, which will bring about positive impacts on the multilateral trade negotiations. Japan 
also has in mind that we should assess the possibility of reflecting the outcomes of the  bilateral 
and plurilateral initiatives in the multilateral trading system.  
2.3.  Japan is currently a party to  sixteen  EPAs. Through the  "Japan Revitalization Strategy " issued 
by the Government in June 201 3, Japan is committed  to increasing the FTA coverage ratio to 70% 
by 2018 from the current figure of 39.5 %. Regional trade agreements and multilateral trading  
system under the WTO should complement one another and Japan be lieves that these regional 
agreements will serve as building blocks to achieve higher trade liberalization at the multilateral  
level.  
2.4.  Regarding plurilateral negotiations  in relation to the WTO , Japan has actively participated  in 
plurilateral negotiation s such as the Trade in Services Agreement (TiSA) and the Environmental 
Goods Agreement (EGA) . As for TiSA, the leaders of the G7 declared at the G7 Ise -Shima Summit 
that they look forward to concluding negotiations on an ambitious, balanced and mutually 
benef icial agreement by the end of 2016.  As for EGA, in the Leader 's Communique of the G20 
Hangzhou Summit 2016 , the EGA members welcomed the landing zone achieved in the WTO EGA 
negotiations, and reaffirmed their aim to redouble efforts to bridge remaining gap s and conclude 
an ambitious, future -oriented EGA that seeks to eliminate tariffs on a broad range of 
environmental goods by the end of 2016. These negotiations will achieve significant progress 
towards multilateral trade liberalization.  
2.5.  With the rise of pr otectionism around the world, Japan welcomes the political commitment s 
made at international fora such as G7, G20 and APEC on the standstill  and rollback of protectionist 
measures. In this context, Japan fully supports the WTO 's peer review system  of Trade  Policy 
Review and Trade Monitoring , which aim at curbing protectionist measures.  WT/TPR/G/35 1 • Japan  
 
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  2.6.  As holder of the G7 Presidency in 2016, Japan hosted  the G7 Ise -Shima Summit and led the 
discussion  on trade issues  that took place there . The G7 leaders reconfirmed the impo rtance of 
free trade and their  commitment to  fight against protectionism. They also confirmed their intent to 
strengthen the multilateral trading system centred  on the WTO and actively promote plurilateral 
negotiations within the WTO specific areas . 
2.2  WTO  
2.7.  Strengthening and maintaining the multilateral trading system, which forms the basis of 
global trade, is a pillar of Japan's trade policy.  Since the last review, Japan has always fully 
engaged in bringing about progress in the multilateral trading system  under the WTO. While 
respecting the principle s of transparency and inclusiveness, Japan is setting out to offer  new ideas 
and approaches to advance the trade negotiations under the WTO. In the lead up to the successful 
conclusion of the 10th Ministerial Confe rence (MC 10) in Nairobi  in 201 5, Japan has made 
significant contributions to narrowing the gap s among member countries and reaching consensus.  
Considering the future WTO negotiation function, including whether to continue DDA, was the 
biggest issue at hand  before the conference . However, no concrete decision has been made on this 
issue due to confrontation among members. Japan assumes that each of the eight areas covered 
by D DA, including development , remain important . However  Japan also believe s that it is 
necessary to explore new approaches including "up -to-date" issues, in order to revitalize and 
reinforce the WTO's negotiation function.  
2.2.1   Rule setting  
2.8.  At MC10 , over fifty members concluded the ITA expansion negotiations led by Japan as the 
chair. Eliminatin g tariffs on 201 items  valued  at over US$1.3 trillion per year by 53 members who 
account for approximately 90 % of world trade in the products proposed for inclusion in the product 
expansion  is expected to bring benefits to all WTO members.  The new accord c overs new 
generation semi -conductors, semi -conductor manufacturing equipment, optical lenses, GPS 
navigation equipment, and medical equipment such as magnetic resonance imaging products and 
ultra-sonic scanning apparatus.  The agreement also contains a comm itment to tackle non -tariff 
barriers in the IT sector, and to keep the list of products covered under review to determine 
whether further expansion may be needed to reflect future technological developments.  
2.9.  Japan 's dedication to making new rules and pract ices through the ongoing negotiations on 
TiSA and EGA will contribute to establishing a more solid and conducive basis for enhancing 
business and trade on a worldwide scale.  
2.10.   In April 2014, the revision of the Government Procurement Agreement (GPA) came int o 
force for Japan. With its revision, Japan has expanded its coverage  in terms of the threshold of the 
central governmental entities, entities of sub -central level, as well as covered services.  
2.2.2   Dispute settlement  
2.11.   Observing the compliance with the WTO rules  through Dispute Settlement is one of the 
most important and critical role s played by the WTO to maintain an open and fair multilateral 
trading system. Japan has actively engaged in the WTO dispute settlement mechanism to resolve 
disputes as both a party a nd a third party to a dispute. Japan continues to seek improvement s and 
clarifications of the Dispute Settlement Understanding (DSU) which will serve member s' shared 
interests by enhancing compliance with trade rules and ensuring the integrity and credibil ity of the 
rule-based trade system . 
2.2.3   Development  
2.12.   Development was one of the big components agreed among the WTO members in the 
decisions taken at the Nairobi  Ministerial Conference  in December 201 5. Among those  decisions , 
those that  have relevance for devel opment include 1) Special Safeguard Mechanism for Developing 
Country Members , 2) Public Stockholding for Food Security Purposes , 3) Export Competition , 
4) Cotton , 5) Preferential Rules of Origin for Least -Developed Countries  and 6) implementation of 
Prefer ential Treatment in Favour of Services and Service Suppliers of  Least Developed Countries 
and Increasing LDC Participation in Services Trade . Through its  active participation in the WT/TPR/G/35 1 • Japan  
 
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  Conference, Japan has played an important role in leading  the outcome of t hese decisions and has 
been meticulously monitoring  whether  those decisions are in effect and in action even after the 
Conference.  
2.13.   Japan has been actively continuing its participation  in the discussions related to various 
items of the development agenda su ch as Aid for Trade, recognizing that integrating developing 
and least -developed countries in the multilateral trading system is one of the essential roles of the 
WTO.  In particular, Japan has actively supported LDC accessions through technical assistance to 
accession applicants to build their trade capacity . 
2.3  FTA/EPAs  
2.14.   Maintaining and strengthening the m ultilateral trading system under the WTO has been a 
main pillar of Japan 's external economic policy. At the same time, Japan has also promoted its 
regional a nd bilateral trade policies as a means of complementing the multilateral trading system, 
particularly through Economic Partnership Agreements that include elements of Free Trade 
Agreements and institution -building.  
2.15.   The data concerning the Economic Partners hip Agreements is summarized in Table 2.1 
below  (as of December  2014) . 
Table 2.1 
Country  Date of the entry into 
force  Additional information  
Entered into force    
Singapore  
(The Agreement between Japan 
and Re public of Singapore for a 
New Age Economic 
Partnership(JSEPA))  30 November 2002  - The sixth and seventh Supervisory Committees were held 
in January and March 2016 respectively.  
 
- The amended Agreement came into effect in September 
2007.  
- The partial amen dment of the Annex (IIA "Product -Specific 
Rules " and IIB "Minimum Data Requirement for Certificate 
of Origin ") came into effect in January 2008.  
Mexico  
(The Agreement between Japan 
and the United Mexican States 
for the Strengthening of the 
Economic Partne rship)  1 April 2005  - The Protocol between Japan and the United Mexican States 
related to Improvement of Market Access Conditions based 
on paragraphs 3 and 5 of Article 5 of the Agreement 
between Japan and the United Mexican States for the 
Strengthening of  the Economic Partnership entered into 
force in April 2007.  
- The Protocol Amending the Agreement between Japan and 
the United Mexican States for the Strengthening of the 
Economic Partnership was signed in September 2011 and 
entered into force in April 201 2. 
- Sub-Committees on Trade in Goods, SPS Measures, 
Technical Regulations, Standards and Conformity 
Assessment Procedures, Rules of Origin, Certificate of 
Origin and Customs Procedures, Cross -Border Trade in 
Services, Entry and Temporary Stay, Government 
Procurement, Cooperation in the Field of Trade and 
Investment Promotion, Cooperation in the Field of 
Agriculture, Cooperation in the Field of To urism, and also 
the Special Sub -Committee on Steel Products and the 
Committees for the Improvement of the Busine ss 
Environment have been held to date.  
Malaysia  
(The Agreement between the 
Government of Japan and the 
Government of Malaysia for an 
Economic Partnership)  13 July 2006  - The third Joint Committee was held in February  2013. 
- Sub-Committees on Trade in Ser vices, Improvement of 
Business Environment, Cooperation, Rules of Origin, 
Intellectual Property, Sanitary and Phytosanitary, 
Investment, Trade in Goods, and Technical Regulations, 
Standards and Conformity Assessment Procedures have 
been held to date.  
Chile 
(The Agreement between Japan 
and the Republic of Chile for a 
Strategic Economic Partnership)  3 September 2007  - Meetings of the Commission, Committees on Trade in 
Goods and Improvement of Business Environment and the 
Working Group on Fish and Fishery Pro ducts have been 
held to date.  WT/TPR/G/35 1 • Japan  
 
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  Country  Date of the entry into 
force  Additional information  
Thailand  
(The Agreement between Japan 
and the Kingdom of Thailand 
for an Economic Partnership)  1 November 2007  - Sub-Committee on Trade in Goods was held in June 2015.  
- Sub-Committee on Agriculture, Forestry and Fisheries wa s 
held in June 2016  
- Sub-committee on enhancement of business environment 
was held in March 2016  
- Sub-Committees on Trade in Services, Rules of Origin, 
Small and Medium Enterprises, Paperless Trading, 
Enhancement of Business Environment, Customs 
Procedur es, Tourism, Agriculture, Forestry and Fisheries, 
Trade in Goods, and Movement of Natural Persons have 
been held to date.  
Indonesia  
(The Agreement between Japan 
and the Republic of Indonesia 
for an Economic Partnership)  1 July 2008  - The fourth Joint Comm ittee was held in December 2015.  
- Sub-Committees on Rules of Origin, Trade in Goods, Trade 
in Services, Movement of Natural Persons, Cooperation, 
and Investment have been held to date.  
Brunei Darussalam  
(The Agreement between Japan 
and Brunei Darussalam for an 
Economic Partnership)  31 July 2008  - Sub-Committees on Trade in Services and Cooperation 
have been held to date.  
ASEAN  
(The Agreement on 
Comprehensive Economic 
Partnership among Japan and 
Member States of the 
Association of Southeast Asian 
Nations)  1 December 2008 ( Japan, 
Lao People's Democratic 
Republic, Myanmar, 
Singapore, Viet  Nam)  
1 January 2009 
(Brunei  Darus salam) 
1 February 2009 (Malaysia)  
1 June 2009 (Thailand)  
1 December 2009 
(Cambodia)  
1 July 2010 (The 
Philippines)  - The 15 th Joint Committe e was h eld in June 2016 . 
- Sub-Committees on Rules of Origin, Trade in Services, 
 Investment and Economic Cooperation and Standards, 
Technical  Regulations and Conformity Assessment 
Procedures have been  held to date.  
- The Agreement is a legally independe nt agreement in 
relation to the bilateral EPAs between Japan and individual 
ASEAN Member States and thus the entry into force of the 
Agreement does neither nullify nor integrate those bilateral 
EPAs.  
The Philippines  
(The Agreement between Japan 
and the Re public of the 
Philippines)  11 December 2008  - The fifth  Joint Comm ittee was held in May 2016 . 
- Sub-Committees on Trade in Goods, Trade in Services, 
Rules of Origin, Investment, Movement of Natural Persons, 
Improvement of Business Environment, Mutual Recog nition 
and Cooperation have been held to date.  
Switzerland  
(The Agreement on Free Trade 
and Economic Partnership 
between Japan and the Swiss 
Confederation)  1 September 2009  - The third Joint Committee was held in October 2016.   
- Sub-Committee on Rules of  Origin, Customs Procedures 
and  Trade Facilitation has been held after December 
2014 to date.  
Viet Nam   
(The Agreement between Japan 
and the Socialist Republic of 
Viet Nam for an Economic 
Partnership)  1 October 2009  - Sub-Committees on Movement of Natur al Persons have 
been held to date.  
India 
(Comprehensive Economic 
Partnership Agreement 
between Japan and the 
Republic of India)  1 August 2011  - The third Joint Committee was held in July 2016.  
- The sub -committee on Rules of Origin, Customs 
Procedures, TBT/SPS , Trade Services, and Improvement of 
Business Environment has been held to date . 
Peru 
(The Agreement between Japan 
and the Republic of Peru for an 
Economic Partnership)  1 March 2012  - Meeting of the Commission and the Sub -Committee on 
Improvement of the Business Environment have been held 
to date.  
Australia  
(The Agreement between Japan 
and Australia for an Economic 
Partnership)  15 January 2015  - The first meeting of the Joint Committee was held in Tokyo 
on  15 January 2015.  
- Sub-Committee on Promoti on of a Closer Economic 
Relationship  was held in Tokyo on 8 October 2015.  
Mongolia  
(The Agreement between Japan 
and Mongolia for an Economic 
Partnership)  7 June 2016   
Signed    
TPP (Trans -Pacific Partnership)  Signed on 4  February  2016. 
(Japan participa ted in TPP 
negotiations in July  2013)  - Ministerial Meeting was held in Atlanta and an agreement 
in  principle was reached on 5 October 2015.  
- Japan submitted the agreement to the Diet for approval on 
 8 March  2016.  WT/TPR/G/35 1 • Japan  
 
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  Country  Date of the entry into 
force  Additional information  
Under negotiation    
The Republic of Ko rea Negotiation suspended (The 
negotiations commenced in 
December 2003)  - Six rounds of negotiations were held.  
- Although no negotiations have been held since the end of 
the sixth round held in November 2004, four rounds of the 
working -level consultation were held by December 2009 to 
consider the resumption of negotiations. Director -general 
level consultations for the EPA were held in September 
2010 and in May 2011. Several rounds of working -level 
consultations have been held since 2012.  
GCC (Gulf Coopera tion Council)  Negotiation postponed  
(Formal negotiations 
commenced in September 
2006)  - Two rounds of negotiations and four rounds of informal 
intermediate meetings were held. The latest meeting was 
held in March 2009.  
Canada  Under negotiation (The 
negoti ations commenced in 
November 2012)  - Seven  round s of negotiations w ere held. The latest meeting 
was held in Tokyo in November 2014 . 
Colombia  Under negotiation (The 
negotiations commenced in 
Decem ber 2012)   Thirteen rounds of negotiations were held. The la test 
meeting was held in Tokyo in September 2015  
CJK (China, Japan and Republic 
of Korea)  Under negotiation (The 
negotiations commenced in 
March  2013) - Ten rounds of negotiations were held. The latest meeting 
was held in Seoul in June 2016  
RCEP (Regiona l Comprehensive 
Economic Partnership)  Under negotiation (The 
negotiations commenced in 
May 2013) - Fifteen rounds of negotiations were held. The latest 
meeting was held in China in October 2016 . 
EU (European Union)  Under negotiation (The 
negotiations comm enced in 
April 2013) - Seventeen rounds of negotiations were held. The latest 
meeting was held in Brussels in September 2016 . 
Turkey  Under negotiation (The 
negotiations commenced in 
December 2014)  - Five rounds of negotiations were held. The latest meetin g 
was held in June 2016  
2.4  Other Regional/Bilateral Arrangements  
2.4.1   Asia-Pacific Economic Cooperation (APEC)  
2.16.   Japan remains committed to APEC 's mission of regional economic integration and to the 
Bogor Goals of free and open trade and investment. In 2010, APEC L eaders set forth the 
Yokohama Vision, which is a comprehensive, forward -looking framework for achieving growth and 
prosperity in the Asia -Pacific region in the 21st Century. Japan has continued and will continue to 
take a leading role in realizing this vis ion in close cooperation with other member economies.  
2.17.   At the APEC Economic Leaders ' Meeting in Beijing  in 2014, APEC economic leaders extended 
their standstill commitment through the end of 2018 to refrain from introducing new protectionist 
measures, and r eaffirmed commitment (i) to rollback protectionist and trade -distorting measures 
and (ii) to continue maximum restraint in implementing WTO -consistent measures with a 
significant protectionist effect.   
2.18.   APEC's core mission continues to be further regional e conomic integration and expansion of 
trade in the Asia -Pacific region. Against rising skepticism over trade and stagnated trade growth, 
the Leaders and the Ministers of APEC reiterate the commitment to build an open economy in the 
Asia and Pacific at the A nnual Economic Leaders ' Meeting and the Annual Ministerial Meeting 
respectively and APEC has pursued these objectives in 2016 by advancing regional connectivity 
and addressing next -generation trade and investment issues, including through the Free Trade 
Area of the Asia Pacific (FTAAP). It also finalized the Collective Strategic Study on Issues Related 
to the Realization of the FTAAP and adopted the APEC Services Competitiveness Roadmap (ASCR), 
both of which contribute to further promote free and open trade  and investment and accelerate 
regional economic integration. In this regard, Japan took the lead in the Study on Infrastructure 
Investment in the APEC Region and Exploration on Strengthening of Maritime Connectivity. Japan 
also took the initiative to impl ement the Study on Improving the Investment Climate for GVCs 
Development, the Study on Enhancement of Integration of Regional  Value Chains in Asia and 
Latin America and Caribbean and Enhance resiliency of GVCs.  
2.4.2   Asia-Europe Meeting (ASEM)  
2.19.   Japan believes tha t the economic dialogue and cooperation between Asia and Europe 
through ASEM will promote enhanced mutual understanding between the two regions on various WT/TPR/G/35 1 • Japan  
 
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  economic issues, which could lead to increased trade and investment between Asia and Europe, as 
well as to the improved coordination of world economic issues of mutual concern relating to the 
WTO, RTA/FTA, IPR, etc ., thereby contributing to the development of the global economy.  
2.20.   Following the decision taken at the tenth ASEM Customs Directors General -Comm issioners 
Meeting in Goa, India in October 2015, Japan, together with the European side's coordinator, 
Slovakia, has taken the initiative to compile the situations and progress made in the field of the 
Authorized Economic Operator (AEO) programmes in the A SEM members. In addition, Japan is 
taking a leading role as the Asian side's Coordinator on the subject of Passenger Name Record 
(PNR) in t he ASEM Customs work for 2016 -17. The tenth ASEM Working Group Meeting on 
Customs Matters in Bandar Seri Begawan, Brunei Darussalam  in April 2016 endorsed the action 
plan on this subject.  
2.4.3   Japan 's Bilateral Activities outside of FTAs  
The United States  
2.21.   Japan and the United States conducted negotiations on non -tariff measures (NTMs) and on 
motor vehicle trade in parallel to  the Trans -Pacific Partnership (TPP) negotiations. The negotiation 
on NTMs included the areas of Insurance, Transparency/Trade Facilitation, Investment, Intellectual 
Property  Rights  (IPR), Standards, Government Procurement, Competition Policy, Express Deli very 
and SPS. The negotiation on motor vehicle trade included Special Motor Vehicle Safeguard, 
Transparency, Standards, Preferential Handling Procedure ( PHP) Certification System, 
Green/New  Technology Vehicles, Financial Incentives, Distribution, Third Cou ntry Cooperation and 
Other Issues. In February 2016, the Government of Japan signed the TPP Agreement along with 
representatives from the other 11 participating countries, while the Ambassador of Japan to the 
United States of America Kenichiro Sasae and th e United Stat es Trade Representative 
Michael  Froman also signed letters to confirm the outcomes of the parallel negotiations.  
2.22.   Japan and the United States held the Seventh Director Ge neral-Level Meeting of the 
U.S.-Japan Policy Cooperation Dialogue on the I nternet Economy in Tokyo in February 2016. This 
dialogue included a session with representatives from the private sector. Participants had candid 
and vibrant discussions on important topics on the Internet and Information and Communication 
Technologies (IC T) such as the Internet of Things (IoT) and Smart Cities, International 
Coordination and the Free Flow of Information, Addressing Global Challenges through ICT, Use of 
Personal Data and Protection of Privacy, Cybersecurity, and 5G (Fifth Generation Mobile 
Communications System). Such policy -level dialogues are aimed at deepening bilateral policy 
coordination and laying the groundwork for greater Japan -U.S. cooperation in the international 
fora. 
European Union  
2.23.   The trade turnover between Japan and the EU has steadily recovered in recent years from 
the temporary decline in 2009 due to the world economic crisis. As the Ministry of Finance reports, 
the volume of mutual trade amounted to about ¥17 trillion in 2015. Japan is the EU's seventh 
largest trading partner  and the EU is Japan's third largest one. Regarding foreign direct investment 
in each other 's economies , Japan invested about ¥35 trillion and the EU invested about ¥10 trillion 
in 2015. The EU is the largest investor and the second largest investee for Ja pan. According to a 
survey by the Ministry of Economy, Trade and Industry (METI), about 2,500 Japanese enterprises 
are operating businesses in the EU and creating about half a million jobs.  
2.24.   On the occasion of the 23rd Japan -EU Summit Meetings on 29 May 201 5, the leaders 
recognized the active and continued contribution of the EU -Japan Business Round Table (BRT) to 
further development of the bilateral economic relationship, and welcomed the recommendations 
BRT adopted in April 2015.  
Russian Federation  
2.25.   The tra de and economic relationship between Japan and Russia has been growing steadily in 
recent years. The trade turnover between the two countries reac hed a record high level of 
US$34.8  billion in 2013. Automobile -related products occupy more than 60% of Japane se exports WT/TPR/G/35 1 • Japan  
 
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  to Russia and three -quarters of Japanese imports from Russia  are oil, gas and other 
mineral -related materials. The total trade volume between Japan and Russia in 2015 amounted to 
US$20.9 billion, declining about 40% from the previous year. Under  the situation that the overall 
trade with Russia  has decreased, the main reasons for the declin e is the decrease of automobile 
exports from Japan and the prolonged downfall of prices of natural resources , which are the main 
imported items from Russia.  
2.26.   In the course of the Japan -Russia summit meeting held in May 2016, the Japanese Prime 
Minister Shinzo Abe presented a n eight-point cooperation plan to Russian President Vladimir Putin, 
aiming at the development of Japan -Russia economic relations. Both leaders  agreed to materialize 
the plan. The points of the plan are (1) Extending healthy life expectancies; (2) Developing 
comfortable and clean cities that are easy to reside and live in; (3) Fundamental expansion of 
medium -sized and small companies' exchange an d cooperation; (4) Energy;  (5) Promoting 
industrial diversification and enhancing productivity in Russia; (6) Developing industries and 
export bases in the Far East; (7) Cooperation on cutting -edge technologies; and  (8) Fundamental 
expansion of people -to-people interaction.  In addition to Russia's economic slowdown, sanctions 
by G7 countries towards Russia have had a negative impact on Japan -Russia business and 
economic relations. Statistics show a rapid decline in exports from Japan to Russia over the peri od 
from March to September 2014 compared to the same period of the previous year.  
China  
2.27.   The economic interdependence between Japan and China is growing deeper. China has been 
Japan's largest trading partner since 2007. The mutual trade amount in 2 015 reach ed 
US$270  billion. According to China's statistical data, Japan was China's second largest trading 
partner in 2015 and regarding foreign direct investment in China, Japan invested US$3.2 billion in 
2015. According to Japan's data, 33,390 Japanese enterpris es and their branches were conducting 
business in China as of Oct ober 2015. Japan has bilateral economic agreements and arrangements 
with China in the areas of trade, air transportation, maritime transportation, trademark protection, 
tax, investment, fishe ries and mutual customs cooperation.  
2.28.   In 2007, for strategic economic dialogue at the ministerial level, Japan and China decided to 
establish the Japan -China High -Level Economic Dialogue. The first meeting was held in Beijing in 
December 2007, the second me eting was held in Tokyo in June 2009 and the third meeting was 
held in Beijing in August 2010 . At these meetings  both sides expressed views to strengthen 
exchanges and cooperation in the fields of trade, investment, and protection of intellectual 
property rights, among other areas. In addition, to promote further bilateral cooperation in the 
economic field, various dialogues between Japan and China ha ve been held.  
Republic of Korea  
2.29.   Japan and the Republic of Korea maintain a mutually dependent economic relat ionship and 
it is growing steadily. The mutual trade amount in 2015 reached US$71.5 billion. Japan and the 
Republic of Korea were each other's third largest trading partner s after China and the US in 2015. 
Regarding foreign direct investment in the Republi c of Korea, Japan was the fourth largest investor 
with US$1,665 million in 2015. Foreign direct investment from the Republic of Korea to Japan 
amounted to US$1,716 million in 2015.  
2.30.   In order to strengthen the economic relationship between Japan and the Republic of Korea, 
the 14th Japan -Republic of Korea High -Level Economic Consultation was held on 12 January 2015. 
Both sides exchanged views to promote bilateral trade and investment, and reaffirmed the 
importance of cooperation on global issues such as energy  security and the environment. In 
addition, both sides confirmed the recent development of cooperation between Japanese and 
Korean enterprises in third countries on projects of resource development and infrastructure, and 
exchanged views to promote further  bilateral cooperation in various economic fields.  
India  
2.31.   Based on the "Japan -India Special Strategic and Global Partnership ", established by Prime 
Minister Abe and Prime Minister Modi in 2014, economic activities between two countries have WT/TPR/G/35 1 • Japan  
 
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  been steadily en hanced. The mutual trade amount in 2015 reached US$14.5 billion. This figure is 
twice the amount reached in 2005.  
2.32.   To further strengthen the bilateral economic partnership, Japan and India have been 
engaged in wide -ranging dialogues on trade, investment pr omotion, and improvement of the 
business environment. The Eighth Japan -India Strategic Dialogue on Economic Issues was held in 
July 2016 in Tokyo.  
Africa  
2.33.   On 27 and 28  August 2016, the Sixth Tokyo International Conference on African 
Development (TICAD VI) was held in Nairobi, the Republic of Kenya.  On that occasion, Japan 
announced that for a period of three years from 2016 to 2018, it will invest for the future of Africa 
through implementing measures centering on developing quality infrastructure, promotin g resilient 
health systems , and laying the foundations for peace and stab ility, amounting to approx. 
US$30  billion under public -private partnership. These measures include human resource 
development to 10 million people ( "Empowerment ") by making use of the  strength of Japan 
("Quality "). These measures are the very first step for Japan to translate the outcomes of the G7 
Ise-Shima Summit (quality infrastructure, health, and women) into actions.  
MERCOSUR  
2.34.   In May 2016, the Third Dialogue to Strengthen the Econ omic Relationship between Mercosur 
and Japan was held in Montevideo, Uruguay. In this Dialogue, both sides exchanged information 
on the current situations of trade and investment between Japan and Mercosur. They also 
exchanged their opinions over measures taken by both sides to promote free trade, and over 
possible measures to encourage more investment between the two parties.  
2.5  Investment Policy  
2.5.1   Outlook  
2.35.   In the Japan Revitalization Strategy 2016 (decided by the Cabinet in June 2016), the 
Japanese Government s tated that it "will also aim to increase the amount of inward FDI to 
¥35 trillion by 2020 (¥24.4 trillion at the end of 2015) ".  
2.36.   In March 2015,  under the leadership of the Prime Minister, the Council for Promotion of 
Foreign Direct Investment in Japan adop ted the "Five Promises for Attracting Foreign Businesses to 
Japan " as important items to be addressed going forward. In addit ion, in May 2016, this council 
adopted the "Policy Package for Promoting Foreign Direct Investment into Japan to Make Japan a 
Globa l Hub" to promote more FDI to make Japan an international trade and investment hub.  
2.37.   Currently, in accordance with the  "Five Promises for Attracting Foreign Businesses to Japan " 
and the  "Policy Package for Promoting Foreign Direct Investment into Japan to M ake Japan a 
Global Hub ", through a steady driving growth strategy including discussion  and drawing 
conclusions so as to simplify regulations and administrative procedures relevant to foreign 
companies, the Government of Japan will actively improve Japan 's business and living 
environment, and actively attract foreign investment.  
2.5.2   Investment Agreements  
2.38.   Japan has actively promoted the conclusion of investment agreements as they create stable, 
equitable, favourable and transparent conditions for greater investme nt through the removal of 
barriers to investment and provision of investor protections. In the Japan Revitalization Strategy 
(decided by the Cabinet in June 2016), the Japanese Government set the goal of signing and/or 
achieving entry into force of investm ent-related agreements (investment agreements and 
economic partnership agreements with investment chapters) covering 100 countries/regions by 
2020. As of September 2016, Japan has concluded bilateral investment agreements, and a 
trilateral investment agree ment, with 35 countries and regions as well as EPAs that contain 
investment chapters with 12 cou ntries.  WT/TPR/G/35 1 • Japan  
 
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  3  TRADE AND DEVELOPMEN T 
3.1  Aid for Trade  
3.1.  In order for developing countries including LDCs to reap further benefit from the multilateral 
trading system, trade  liberali zation alone is not sufficient. Enhancing capacities on the supply side 
and encouraging assistance for this purpose is indispensable. Since Aid for Trade (AfT) initiatives 
contribute to enhancing the trade capacities of developing countries, Japan  continues to provide 
various measures for AfT to this end, in addition to  promoting the "One Village, One Product " 
movement.  
Japan 's Development Initiatives for Trade  
3.2.  Japan announced the "Development Initiative for Trade ", prior to the WTO Ministerial 
Conference in Hong Kong, China  in December 2005. This initiative featured : (a) implementation of 
Duty-Free and Quota Free Market Access for essentially all products originating from LDCs, 
(b) provision of US$10 billion of financial assistance including trade,  production , and distribution 
infrast ructure for three years (2006 -08), and (c) as part of (b), th e exchange of a total of 
10,000  trainees and experts in trade -related fields over the same period, the targets of which were 
fully achieved. Durin g the design ated period (2006 -08) of the initiative, the total sum of financial 
assistance amounted to US$17.66 billion, greatly exceeding the target at  177%.  
3.3.  Given the successful results of the above -mentioned first initiative, Japan announced a new 
AfT strategy, "Development Initiative for Trade 2009 " in July 2009. Its main pillar was 
US$12  billion of financial assistance for trade -related projects including trade, production and 
distribution infrastructure for 3 years from 2009 to 2011. During the designated period (2009-11) 
of this initiative, the total sum of financial assistance amounted to US$ 23.36 billion, which reached 
195% of the target , well surpass ing the amount of the first initiative. Despite  the fact that  no 
additional development initiative has been laun ched since then, Japan has continuously expanded 
its assistance to a total of US$31.65 billion for the 3 years from 2013 to 2015 . This is 
representative of Japan's  strong commitment to AfT , which Japan considers as important to help 
beneficiary countries m eet the new challenges they face in the regional and global economy.  
Aid for Trade Asia -Pacific Regional Technical Group  
3.4.  Japan is executing not only a quantitative commitment but also a qualitative commitment 
under the Initiative 2009 , which aims for impro vement in efficiency of AfT. For instance, Japan has 
been fully involved in the AfT Asia -Pacific RTG (Regional Technical Group) since its inception in 
March  2009. The purpose of the RTG is to discuss the successful and rich experiences of aid 
activities in  the Asia -Pacific region, to find out  some elements of effective aid and share them with 
other regions, particularly Africa. Japan hosted the  Sixth RTG meeting in Tokyo in March 2013  to 
complete a second report titled "Aid for Trade in Asia and the Pacific : Driving Private Sector 
Participation in Global Value Chains ", which highlights the link between mainly the Japanese 
private sector participation in trade capacity building and the ability of firms to plug into value 
chains and was submitted to the Fourth  Global Review in July 2013.  
Tokyo International Conference on African Development  
3.5.  The Sixth Tokyo International Conference on African Development (TICAD VI) was held in 
Nairobi, the Republic of Kenya, on 2 7 and 2 8 August 2016.  Commitments announced by Jap an 
with regard to trade and development are as follows . 
1. JETRO will strengthen the partnership with African investment agencies and set up a 
"Japan Desk " in the investment promotion agencies of 9 African countries.  
2. Japan will launch the "Japan -Africa Public -Private Economic Forum " in order to support 
private -sector companies in establishing businesses in Africa . 
3. Japan will aim by 2020  to have agreements related to investment signed or entered into 
force with 100 countries and regions, and will intensively wo rk towards concluding them WT/TPR/G/35 1 • Japan  
 
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  with African countries. Japan will also aim to conclude  tax treat ies to further accelerate 
economic interaction and investment between Japan and African countries.  
Assistance to the One Village, One Product Movement  
3.6.  The One Villa ge, One Product (OVOP) is one of the typical approaches under AfT initiatives. 
OVOP is a movement that supports local economies through the development, improvement and 
promotion of local products (foods, beverages, textiles & garments, etc.) with the part icipation of 
local people. This movement was first initiated in a southern prefecture in Japan in the late 1970s 
and later spread to the other prefectures. It has been introduced  in other Asian countries  and has 
contributed to the development of local econ omies.  
3.7.  Japan continues supporting  this movement, especially the exports of developing countries 
and least developed countries through technical cooperation such as the dispatch of experts, 
educational and training programs to create competitive products, a nd support through 
international organizations. In addition, Japan has held exhibitions and trade fairs inviting buyers 
and has also opened shops (OVOP markets) since 2006 in some of Japan 's international airports in 
order to introduce products and encoura ge consumers to buy them . 
3.2  Generalized System of Preferences  (GSP)  
3.8.  In order to improve market access for developing countries, Japan introduced a preferential 
tariff treatment under the GSP scheme on 1 August 1971, and has re -examined it several times 
since then. Furthermore, under the scheme, Japan has granted special preferential treatment to 
LDCs since 1980, including additional products for which preferences are granted only to LDCs. 
Currently,  137 developing countries and 6 territories, including all LD Cs, enjoy the benefits of the 
GSP scheme. This scheme has been vastly improved over the last several years, especially in 2007 
and 2011.  In the comprehensive "Development Initiative for Trade " launched on 
9 December  2005, Japan announced its commitment to providing duty -free and quota -free (DFQF) 
market access for essentially all products originating from LDCs.  Japan is fully committed to 
implementing the above initiative thus complying with the decision adopted in the Hong  Kong, 
China  Ministerial Declarati on. In realization to the above -mentioned commitment, o n 1 April 2007 
Japan started improved DFQF treatment for LDCs by adding a vari ety of items to the treatment . As 
a result, the number of agricultural and fishery products originating from LDCs that receive DFQF 
preferential treatment increased from 497 to 1,523 and that of industrial products increased from 
4,185 to 4,244 . Consequently, coverage  of DFQF treatment for LDCs , which was previously 
approximately 86% , has risen to approximately 98% as de fined at the tariff line level.  On 
1 April 2011, Japan extended the effective period of th e GSP scheme to 31 March 2021 , abolished 
all ceiling -based schemes for certain industrial products , and revised the criteria for application of 
competitiveness -focused, product-by-exclusion measures.  The revision was made to make the 
criteria more objective and transparent and to allow less competitive developing countries to 
benefit more from the GSP scheme . 
4  JAPAN 'S DOMESTIC POLICIES  
4.1  Abenomics  
4.1.  The "three arrows " of Abenomic s (aggressive monetary policy, flexible fiscal policy, growth 
strategy that promotes private investment) have shifted market expectation, ensured that  Japan 's 
economy is no longer a deflationary one, boosted corporate profits, and expanded national 
employm ent and income. In order to consolidate the current positive cycle into "a Virtuous Cycle 
of Growth and Distribution ", we have created a set of ambitious  targets . These targets are namely 
"a nominal GDP of ¥600 trillion (the largest in post -war history) ", "the desirable birth ra te of 1.8 ", 
and "zero cases of persons forced to leave their jobs for nursing care ". Furthermore, three new 
arrows is now being released toward s these three targets. Through these efforts, we will build a 
society in which all citizen s participate, including  women and men, older persons  and the young , 
people who have experienced  failure, people with disabilities , and people fighting illness, and we 
will enable them  to play active roles in their respective homes, workplaces , and local c ommunities 
or any other plac es. Details of t he three new arrows are as follows:  WT/TPR/G/35 1 • Japan  
 
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   First arrow : We will achieve a 600 trillion economy by utilizing the full range of policies. 
Through improvement in productivity and ensuring of labour allowed by innovation an d 
working -style reform, we will enhance the supply side, make a virtuous circle of an 
economy that continues to stimulate potential demands, which will lead to expansion of 
domestic demands.  
 Second arrow : We will enable more youths to make their hopes of m arriage and 
childbirth come true. This is what the goal of "the desirable birth -rate of 1.8 " means. 
Towards a society where people can have and raise children  with a sense of security, 
we will ensure childcare arrangements are put in place and promote comp rehensive 
measures including improvement in working conditions of childcare providers. We will 
also improve the educational environment so that all children can receive desirable 
education.  
 Third arrow : Currently, the annual number of people leaving their jobs to provide their 
family members with nursing care exceeds 100,000. Under the clear goal of "no one 
forced to leave their jobs for nursing care ", which means people can keep on working 
while providing nursing care at the same time, we will ensure nursi ng care 
arrangements are put in place and promote comprehensive measures, including 
improvement in working conditions of nursing care providers. We will also promote 
employment of older persons . 
4.2  Intellectual Property Rights  
4.2.  On 7 June 2013, the Intellectual  Property Strategy Headquarters1 formulated the Intellectual 
Property Policy Vision (hereinafter referred to as the "Vision "). On the same day, the Cabinet 
adopted the essence of the Vision as the Basic Policy Concerning Intellectual Property Policy, and 
its measures were partially reflected in the Japan Revitalization Strategy, which is one of the 
"three arrows " of the current administration 's economic policy. Therefore, intellectual property 
policy is regarded as one of the most important efforts for enha ncing Japan 's industrial 
competitiveness.  
4.3.  Based on t he Basic Policy Concerning Intellectual Property Policy, the efforts of the past  
10 years  has been reviewed  and was set the following three goals.  
− Build an intellectual property system that attract s users  and inno vation investment from 
overseas  
− Make Japan 's intellectual property system become a stand ard in emerging nations in Asia 
− Continuously produc e human resources with creativity and strategic capability for global 
intellectual property activities . 
 
4.4.  Towards these goals , the following four pillars of the Vision, including policy challenges and 
efforts in the field of intellectual property  were organized, looking at medium - and long -term goals 
as approximately ten years into the future.  
− Building up a globa l intellectual property system for enhancing industrial competitiveness  
− Support ing the enhancement of  intellectual property management by SMEs and venture 
companies  
− Improving the environment for adjusting to a digital network society  
− Strengthening soft po wer focusing on the content industry . 
 
4.5.  The Intellectual Property Strategic Program is reviewed annually a s a short-term action pl an 
that operationalizes  the Basic Policy and the Vision.  
4.6.  On 9 May 2016 the Intellectual Property Strategy Headquarters decided  on the  Intellectual 
Property Strategic Program 2016. In this Program, 145 concrete actions were formulated under  
the following four goals : 
                                                
1 The Intellectual Property Strategy Headquarters , a body chaired by the Prime Minister, was established  
in 2003, and coordinate s Intellectual Property policies from all related ministries and formulates an annual 
Intellectual Property Strategy Program.  WT/TPR/G/35 1 • Japan  
 
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  − Promotion of Intellectual Property Innovation for the 4th Industrial Revolution  
− Spread/Penetration of Intellectual Pr operty Awareness/Activity  
− Promotion of the Content Industry into New Areas 
− Development of Intellectual Property System Infrastructur es. 
 
4.3  Financial Reform  
Banking and securities sector  
4.7.  The Financial Services Agency enacted "the Bill to Partially Amend the B anking Act, etc., to 
Respond to the Environmental Changes such as Advances in Information Technology ", which 
established a legal framework to respond to the environmental changes surrounding financial 
groups, including rapid progress of integration between  finance and information technology. The 
details are as follows . 
1. Enhancement of business management : 
 
Given that each financial group has its own "management style", the amended Act 
clarified  the "functions" that financial groups should perform to make bu siness 
management of each financial group fully effective.  
2. Strengthening financial intermediation by consolidating common/duplicate operations : 
 
In order to achieve effective business operation and strengthen financial intermediation, 
the amended Act facil itated consolidation of common/duplicate operations in financial 
groups.  
3. Response to rapid progress IT innovation : 
 
The amended Ac t enabled financial group s to conduct business activities flexibly, 
incorporating IT innovation in a strategic manner, f acilitated provision of 
payment -related services responsive to IT progress , and ensured user protection.  
4. Actions on Virtual Currencies (VC) : 
 
Following the agreement on VC at the G7 summit, the amended Act introduced 
measures on anti -money laundering and counter -terrorist financing (AML/CFT) as well as 
user protection.  
4.8.  The Financial Services Agency recognized it was necessary to appropriately prevent harm to 
investors to ensure reliability for the funds and the smooth supply of funds for growth, and revised  
the Financial Instruments and Exchange Act (enacted on 27 May 2015) . The following steps have 
been taken for "funds for professionals ". 
1. Notified  requirements, etc.: introduction of reasons for disqualification, expansion and 
publication of notification forms, e tc. 
2. Expansion of regulations on activities : principle of suitability (prohibition of inappropriate 
solicitations in light of the customers ' knowledge, experience, etc.), accountability (duty 
to explain) with regard to risk, etc.  
3. Administrative responses to  problem operators, etc.: issuing orders to improve, suspend, 
abolish the business; strengthening of penal provisions, etc.  
4.9.  In addition, the scope of investors is limited to persons closely related to investors and fund 
operators with a certain level of ab ility to make investment decisions (administrative order 
matters).  
4.10.   With regard to venture funds that have in place a corresponding system, including ensuring 
governance and implementation of accounting audits by certified public accountants, investment is WT/TPR/G/35 1 • Japan  
 
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  possible by persons with practical experience, such as officers of listed companies and persons 
who have launched a new business.  
Insurance sector  
4.11.   The Act on the Partial Revision of the Insurance Business Act etc. was promulgated on 
30 May 2014. The Act wa s enforced on 29 May 2016 with related provisions consolidated as below 
to enforce items that were scheduled to become effective within 2 years . 
4.12.   The r evision of the Ordinance for Enforcement of the Insurance Business Act and the 
Comprehensive Guidelines fo r Supervision of Insurance Companies  includes the following 
elements.  
1. Related internal rules should be put in place in accordance with introduction of obligation 
to supply information to customers:  
• points , such as product information , that are necessary for customer s to judge whether 
or not they should subscribe to an insurance contract , should be prescribed in internal 
rules as points that have to be explained to customers in insurance solicitation; and  
• in addition to the above, in regard to  comparing insu rance products  of a number of 
insurance firms  and recommending specific ones  as part of the sales process , it should 
be prescribed that information concerning the "general description of products subject to 
comparison" and the "reason they compare and reco mmend specific products" should be 
supplied to customers.  
2. Related internal rules should be put in place in accordance with introduction of obligation 
to ascertain customer 's intention:  
• an example of the concrete process of ascertainment of customer's inten tion should be 
illustrated in order to seek an insurance solicitor to ascertain the customer's intention 
according to insurance products and the solicitation situation.  
3. Related internal rules should be put in place in accordance with the introduction of 
obligation of an insurance solicitor to consolidate the system:  
• in addition to education, management , and guidance by insurance firms, a relevant 
system  should be prescribed in order for the insurance solicitor itself to properly carry 
out its business.  
4. Others: 
• "purpose of insurance solicitation" and "solicitation related operation s" should be clarified 
in internal rules; and  
• points of supervision concerning insurance solicitation by telephone should be prescribed 
in internal rules.  
4.4  Agricultural Reform  
4.13.   In ord er to address challenges such as aging society and declining population, in 
March  2015 the government revised "the Basic Plan for Food, Agriculture and Rural Areas ", which 
consists of industrial policy and regional policy . 
4.14.   Furthermore, the government estab lished "the Plan for Empowering Export on Agriculture, 
Forestry and Fisheries " in May 2016, in order to promote Japanese agricultural, forestry and 
fishery products , and food in the global market.  
4.15.   In addition, the government is committed to implement furth er reform with a view to 
enhancing the competitiveness of agriculture.  WT/TPR/G/35 1 • Japan  
 
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  4.16.   Besides system reform, the government is taking various measures for enhancing 
productivity, for example, an automatic tractor driving system can be commercially available under 
manned monitoring by 2018 and can be utilized through remote monitoring by 2020.  
4.5  Competition Policy  
4.17.   On 7 December 2013, the Antimonopoly Act (AMA) Amendment Bill was approved in the 
185th extraordinary session of the Diet, and the en acted act was promulgated on 
13 December  2013. It contains the abolition of the JFTC's hearing procedure and necessary 
revisions to develop procedures for hearings prior to the Japan Fair Trade Commission (JFTC) issue 
of administrative orders such as cease and desist orders. The enacte d act shall come into force 
from the date specified by Cabinet Order within a period not exceeding one year and six months 
from the day of promulgation.  
4.18.   The Trans -Pacific Partnership Agreement, signed by 12 countries including Japan, on 
4 February 2016, in cludes an article which prescribes that "Each Party shall authorise its national 
competition authorities to resolve alleged violations voluntarily by consent of the authority and the 
person subject to the enforcement action ". On 8 March 2016, a bill for re levant law amendments 
associated with conclusion of the Trans -Pacific Partnership Agree ment was submitted to the 
190th ordinary Diet session and carried over to the 192nd extraordinary Diet session. The bill 
includes an amendment of the AMA to introduce a commitment procedure to implement the 
article . The procedure's outline is as follows.  1) The JFTC notifies an enterprise of suspicion of 
violating AMA; 2) The enterprise can voluntarily submit a plan concerning measures necessary to 
cease and desist the re levant conduct to the JFTC ; 3) When the JFTC certifies that the plan 
submitted is enough and the enterprise carries out the plan, the JFTC shall not issue a cease and 
desist order or a surcharge payment order.  
4.19.   Also, the bill to amend the AMA, including the  abolition of the JFTC's Hearing Procedure for 
appealing against the JFTC's administrative orders and the necessary revisions to develop 
procedures for hearings prior to the issue of the JFTC's administrative orders, was p ut into force on 
1 April 2015.  In accordance with the amendment of the AMA above, the JFTC allows the would -be 
addressees of the cease and desist order to read and copy evidence that proves the fact found by 
the JFTC.  
4.20.   The JFTC has been taking rigorous legal actions against violations of th e AMA. The number 
of legal cases against such violations amounted to 14 in 2014 and 8 in 2015. (Please refer to 
Table  4.1) 
Table 4.1 
Private monopolization  2014  2015  
Bid-rigging  4 3 
Cartels (excluding bid -rigging)  9 1 
Unfair trade practices  1 1 
Others  0 2 
Private monopolization  0 1 
Total cases  14 8 
 
4.21.   The total amount of surcharge payment orders issued by the JFTC was estimated at 
¥41204.48 million in 2014 and ¥2286.02 million in 2015.  
4.22.   The JFTC has adopted  a proactive policy of indicting violations of the AMA and imposing 
criminal penalties on violators. In March 2014, the JFTC indicted one case. In February 2016, the 
JFTC indicted one case.  
4.23.   In order to strengthen the role of the JFTC as a guardian of the m arket, the JFTC increased 
the number of their personnel to 840 in 2016 and most of them were assigned to the investigation 
section.  WT/TPR/G/35 1 • Japan  
 
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  4.6  Services -Related Policies  
4.24.   Japan has promoted reforms in several service -related sectors.  
4.25.   Based on the "Japan Revitalization Strategy (Revised in 2014) ", the FSA conducted a 
fact-finding survey and interviews to ascertain how companies that have voluntarily adopted IFRS 
overcame any challenges they faced during their transition to IFRS, as well as the advantages 
brought about by  their shift to IFRS, and published "IFRS Adoption Report " on April 2015 to serve 
as a useful reference for companies considering adopting IFRS.  
4.26.   As for  the telecommunications sector, in keeping with  the spread of the smart phone and 
diversification of publ ic wireless LAN, the definition of a public wireless LAN access service was 
widened in order to impose obligations on Telecommunications Carriers to explain condition s of 
offering services when concluding a contract . The G7 ICT Ministers' Meeting in Takama tsu, 
Kagawa, which was held on 29 -30 April 2016, was the first time in about 20 years for an ICT  
Ministers' Meeting to be held as a part of the Summit . At the meeting, Japan led a vigorous 
discussion on such topics as promoting economic growth and promotin g and protecting the fr ee 
flow of information in a society where the Internet of Things (IoT), Artificial Intelligence (AI) , and 
other emerging ICTs are becoming widespread. As a result, Japan and the other G7 ICT  Ministers 
successfully adopted three outco me documents, the Charter, the J oint Declaration and the 
G7 Opportunities for Collaboration (annexed to the Joint Declaration), which summarized the 
fundamental principles and action plans for achieving a "Digitally Connected World " where all 
people and th ings are connected globally. The G7, which shares fundamental values such as 
freedom and democracy, issued a message of unity to the world.  
 
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