WT/REG309/1/Rev.1  
2 October 2013  
(13-5308)  Page: 1/47  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN JAPAN AND PERU  
(GOODS AND SERVICES) 
Report by the Secretariat 
Revision 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Japan and Peru 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 Jean-Daniel Rey 
(tel: +41 22 739 5264). Any statistical questions arising from this report may be addressed to Ms. Rowena Cabos (tel: +41 22 739 5185). 
 
 WT/REG309/1/Rev.1 
 
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  TABLE OF CONTENTS 
Page 
 
1  TRADE ENVIRONMENT ................................................................................................. 5  
1.1  Overview ................................................................................................................... 5  
1.2  Merchandise trade ...................................................................................................... 5  
1.3  Trade in services  and invest ment .................................................................................. 7  
2  CHARACTERISTIC ELEMEN TS OF THE AGREEMENT ....................................................... 9  
2.1  Background Information .............................................................................................. 9  
2.2  Structure of the Agreement.......................................................................................... 9  
3  PROVISIONS ON TRADE IN GOODS ............................................................................ 10  
3.1  Import duties and charges, and quantitative restrictions ................................................. 10 
3.1.1  General provisions .................................................................................................. 10 
3.1.2  Liberalization of  trade and ta riff lines ......................................................................... 10 
3.1.3  Liberaliza tion schedule ............................................................................................ 11 
3.1.3.1  Japan's libe ralization programme............................................................................ 11 
3.1.3.2  Peru's libe ralization pr ogramme ............................................................................. 13 
3.1.4  Tariff ra te quotas .................................................................................................... 15 
3.2  Rules of origin ........................................................................................................... 15 
3.3  Export duties and charges, and quantitative restrict ions .................................................. 16 
3.4  Regulatory provisions on trade in goods ........................................................................ 17 
3.4.1  Standards .............................................................................................................. 17 
3.4.1.1  Sanitary and ph ytosanitary measures ..................................................................... 17 
3.4.1.2  Technical barriers to trade ..................................................................................... 17 
3.4.2  Safeguard mechanisms ............................................................................................ 18 
3.4.2.1  Global  safeguards ................................................................................................ 18 
3.4.2.2  Bilateral safeguards .............................................................................................. 18 
3.4.2.3  Special safeguards ............................................................................................... 19 
3.4.2.4  Balance of Pa yments safeguards ............................................................................ 19 
3.4.3  Anti-dumping and countervailing measures ................................................................ 19 
3.4.4  Subsidies and State-aid ........................................................................................... 19 
3.4.5  Customs-related procedures ..................................................................................... 19 
4  PROVISIONS ON TRADE IN SERVICES ........................................................................ 20  
4.1  Scope and definitions ................................................................................................. 20 
4.2  Denial of benefits ...................................................................................................... 20 
4.3  General provisions on trade in services ......................................................................... 21 
4.3.1  Market  access ........................................................................................................ 21 
4.3.2  National an d MFN trea tments ................................................................................... 21 
4.3.3  Local presence ....................................................................................................... 21 
4.3.4  Movement of  natural persons ................................................................................... 21 
4.3.5  Performanc e requirements ....................................................................................... 22 WT/REG309/1/Rev.1 
 
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  4.3.6  Senior managers and board of direct ors ..................................................................... 22 
4.3.7  Other provisions ..................................................................................................... 23 
4.3.7.1  Notification  and transp arency ................................................................................ 23 
4.3.7.2  Review of the implemen tation ................................................................................ 23 
4.4  Liberalizati on commit ments......................................................................................... 23 
4.4.1  Japan's liberali zation commi tments ........................................................................... 23 
4.4.2  Peru's liberali zation commi tments ............................................................................. 24 
4.4.3  Sector specific commit ments on trade in services ........................................................ 24 
4.4.3.1  Busine ss services ................................................................................................. 27 
4.4.3.2  Communication services ........................................................................................ 28 
4.4.3.3  Construction and re lated engineering services .......................................................... 28 
4.4.3.4  Distribution services ............................................................................................. 28 
4.4.3.5  Educatio nal services ............................................................................................. 28 
4.4.3.6  Environm ental services ......................................................................................... 28 
4.4.3.7  Financial services ................................................................................................. 29 
4.4.3.8  Health related and social servic es ........................................................................... 29 
4.4.3.9  Tourism and Trav el related services ........................................................................ 29 
4.4.3.10  Recreational, cultur al and sporting  services ............................................................ 29 
4.4.3.11  Transp ort serv ices .............................................................................................. 29 
4.5  Sector specific pr ovisions in services ............................................................................ 30 
4.5.1  Telecommunica tion services ..................................................................................... 30 
4.5.2  Financial services .................................................................................................... 30 
4.6  Regulatory provisions ................................................................................................. 30 
4.6.1  Domestic  regulation ................................................................................................ 30 
4.6.2  Recognition ............................................................................................................ 31 
4.6.3  Subsidies ............................................................................................................... 31 
4.6.4  Safeguards ............................................................................................................ 31 
5  GENERAL PROVISIONS OF THE AGREEMENT .............................................................. 31  
5.1  Transp arency ............................................................................................................ 31 
5.2  Current payments and capital movements ..................................................................... 31 
5.3  Exceptions ................................................................................................................ 32 
5.4  Accession and Withdrawal ........................................................................................... 32 
5.5  Government  procurement ........................................................................................... 32 
5.6  Intellectual property rights .......................................................................................... 33 
5.7  Other ....................................................................................................................... 35 
5.7.1  Competition ........................................................................................................... 35 
5.7.2  Improvement of th e business environment ................................................................. 35 
5.7.3  Coop eration ........................................................................................................... 35 
5.7.4  Trade an d environment ........................................................................................... 35 
5.8  Institutio nal framework .............................................................................................. 35 WT/REG309/1/Rev.1 
 
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  5.9  Dispute settlem ent .................................................................................................... 36 
5.10  Relationship with other agr eements concluded by the Parties ......................................... 38 
ANNEX 1 ....................................................................................................................... . 41 
ANNEX 2 ....................................................................................................................... . 46 WT/REG309/1/Rev.1 
 
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Key Facts 
 
Parties to the Agreement:  Japan and Peru 
 
Date of Signature:   31 May 2011. 
 
Date of Entry into Force:  1 March 2012. 
 
Date of Notification:   24 February 2012. 
 
Full implementation:   1 April 2027. 
 
 
1  TRADE ENVIRONMENT 
1.1  Overview1 
1.1.  The Free Trade Agreement (hereinafter re ferred to as the Agreement) between Japan and 
Peru is Japan's 13th and Peru's 14th RTA.2  
1.2.  In 2011, with a population of over 127 million, Japan's GDP was estimated at 
US$5'867 billion while that of Peru, with a popu lation of over 29 million was estimated at 
US$176 billion. While Japan exported mainly manufactured goods (88.2% of Japan's total 
exports), Peru's main export category was composed of fuels and mining products (49.5% of Peru's total exports). Japan and Peru were both essentially importing manufactured goods (47% of Japan's total imports and 70.7% of Peru's). The Parties' respective trade (goods and services) to 
GDP ratio were 29.8, for Japan, and 49.8, for Peru. 
1.2  Merchandise trade 1.3.  In 2011, Japan's share in total worl d exports and imports was 4.51% and 4.64% 
respectively, while Peru's shares were 0.25% for exports and 0.21% for imports. With total 
merchandise exports of US$823 billion and imports of US$855 billion (both in progression after the 
sharp decline in 2009), Japan ranked 4
th in world exports and imports compared to Peru's ranking 
at 41st for exports and 40nth for imports (with global exports and imports of US$46 billion and 
US$38 billion). 
1.4.  In 2011, Japan was Peru's 11th largest source of imports and 6th largest destination for 
export, accounting for respectively 3.5% of its total imports and 4.8% of its total exports.3 For 
Japan, Peru represented 0.3% of its total imports, making Peru Japan's 30th largest source of 
imports - while it was Japan's 41st largest destination for exports, accounting for 0.1% of Japan's 
total exports.4 
1.5.  Developments in global and intra-Party trade are presented in Charts 1.1 and 1.2, using 
figures from the UNSD, Comtrade database. Trade between Japan and Peru generally followed the pattern of both Parties' trade with the world, with  sharp declines both globally and bilaterally in 
connection with the 2008-2009 financial crises. Since 2009, trade is recovering, though at a slower 
pace bilaterally than with the rest of the world. In its bilateral relation with Peru, Japan 
experienced a trade deficit throughout the period.  
                                               
1 Source for this section: WTO Trade Profiles 2012 (2 011 data) Export figures are calculated f.o.b. and 
import figures are calculated c.i.f. Ranking in world tr ade excluding intra-EU trade.  For bilateral trade, the 
figures as reported by the Parties to  UNSD, Comtrade database are used. 
2 Agreements in goods and services counted as one an d only agreements in force, notified to the WTO, 
counted. 
3 In 2010 the five top sources of imports for Peru were: the US (19.7%), China (16.7%), the EU27 
(10.9%), Brazil (6.4%), and Ecuador (5%); the five top export destinations from Peru were: the EU27 
(18.2%); China (15.3%); the US (13.3%); Switzerland (12.9%); and Canada (9.2%). 
4 In 2010, the five top sources of imports for Japan were: China (21.5%), the EU27 (9.4%), the 
US (8.9%), Australia (6.6%), and Saudi Arabia (5.9%); the five top destinations of exports from Japan were:  China (19.7%), the US (15.5%), the EU27 (11.6%), Korea (8%), and Chinese Taipei (6.2%). WT/REG309/1/Rev.1 
 
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  Chart 1.1 - Japan: Merchandise trade with world and Peru, 2000-2011 
0246810
0100200300400500600700800900
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$billion US$billionImports from Peru
Exports to PeruTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
Source: WTO Secretariat, based on  the UNSD, Comtrade database. 
 
Chart 1.2 - Peru: Merchandise trade with world and Japan, 2000-2011 
0246810
05101520253035404550
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$billion US$billionImports from  Japan
Exports to JapanTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
Source: WTO Secretariat, based on  the UNSD, Comtrade database. 
 
1.6.  The commodity structure of trade among the Pa rties, as well as with the world in the period 
2009-2011, is shown in Chart 1.3 on the basis of Harmonized System (HS) sections. Vehicles, Aircraft, and Vessels accounted for more than half (53.7%) of Peru's imports from Japan. This 
sector was Japan's second largest global exports (22.2%), after machinery (36.4% of Japan's 
global exports), which was also Peru's second largest import from Japan (22.6%). Japan's imports from Peru essentially comprised mineral products (80.4%), which was also Peru's largest global 
export (38.2%). Prepared foodstuffs and base metals were Japan's second and third largest 
imports from Peru, representing 7.8% and respecti vely 5.5% of its imports of Peruvian products. 
These two sectors were also Peru's third and fo urth largest global exports (10.8% and 7.6% 
respectively).  WT/REG309/1/Rev.1 
 
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  Chart 1.3 Japan and Peru: product compositi on of merchandise trade, annual average 
(2009-2011) 
 
36.4 
22.2 9.2 7.6 5.5 5.5 2.0 1.7 9.9 
53.7 
22.6 8.2 6.6 3.4 2.4 3.1 38.2 
23.5 10.8 7.6 6.6 4.7 2.2 6.6 
34.4 
19.5 7.8 5.0 4.5 3.5 3.4 3.3 3.0 2.8 2.6 1.9 8.3 
24.7 
15.4 
10.2 10.2 9.0 6.9 4.7 4.2 3.6 2.6 8.5 80.4 7.8 5.5 2.4 3.9 Japan's imports from Peru
Peru's imports from JapanPer cent
Total:  US$ 2.1 billion
Total:  US$ 1.2  billionTotal:  US $700 billion
Total: US$ 30 billionTotal:  US$ 36 billion
Total:  US$ 725 billionPeru's global exports
Japan's global exportsJapan's global imports
Peru's global imports
Animal products
Vegetables
Prepared foodsMinerals
ChemicalsWood pulp
Textiles
Precious stonesBase metals
Machinery
VehiclesOptical
Miscellaneous
Other Plastics, rubber 
 
1.3  Trade in services and investment 
1.7.  In 2011, Japan's share of total commercial services exports was 3.42%, while its share of 
total imports was 4.19%. Peru's shares represented respectively 0.11% and 0.17% of world 
exports and imports. With total commercial serv ices exports of US$142 billion, and imports of 
US$166 billion, Japan was the world 4th largest exporter and importer compared to Peru's ranking 
as 47th largest exporter and importer (with commer cial services exports of US$4.6 billion and 
imports of US$6.7 billion).5  
1.8.  Tables 1.1 and 1.2 below show the breakdown of trade in commercial services and 
investment for Japan and Peru, as communicated by the Parties and complemented by UnctadStat. 
On trade in commercial services, the available data set shows a trade deficit with the world for 
Japan, while Peru's global trade shows a surplus.  Notable also from these partially lacunar data 
(particularly on bilateral flows) is the increase of Japan's Total inward and outward FDI stocks from 
the world, reaching an unprecedented level at the end of the periods considered, while Peru's Total 
inward FDI stocks have also progressed between 2009 and 2011.  
Table 1.1 Japan: Trade in commercial servic es and investment with Peru and world, 
2009-2011  
Unit: in billion US$ 
Service Item World Peru 
Exports Imports Exports Imports 
2009 2010 2011  2009  2010  2011 2009  2010  2011 2009 2010 2011 
Total commercial 
services 125.8 138.7 142.6  146.9  155.6  165.7  - - - - - - 
Transportation 
services 31.6 38.9 38.3 40.5 46.4 49.4 - - - - - - 
Travel 10.3 13.2 11.0 25.1 27.9 27.2 - - - - - - 
Communication 
services 0.7 0.7 0.8 1.1 1.0 1.0 - - - - - - 
Construction 12.4 10.6 11.0 11.4 7.9 7.7 - - - - - - 
                                               
5 Source for this section: WTO Trade Profiles 2012 (2011 data). WT/REG309/1/Rev.1 
 
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  Service Item World Peru 
Exports Imports Exports Imports 
2009 2010 2011  2009  2010  2011 2009  2010  2011 2009 2010 2011 
Insurance 
services   0.9 1.3 1.7 5.1 6.8 6.8 - - - - - - 
Financial 
services 4.8 3.6 4.1 3.1 3.1 3.3 - - - - - - 
Computer and 
information 
services 0.9 1.0 1.2 3.8 3.6 4.2 - - - - - - 
Royalties and 
licence fees 21.7 26.7 29.1 16.8 18.8 19.2 - - - - - - 
Other business 
services 42.5 42.5 45.4 38.9 39.2 45.9 - - - - - - 
Personal, 
cultural and recreation services 0.2 0.1 0.2 1.1 0.9 1.0 - - - - - - 
 World Peru 
 Outward Inward Outward Inward 
 2009 2010 2011  2009  2010  2011 2009  2010  2011 2009 2010 2011 
Total FDI stocks 740.9 831.1 962.8  200.1  214.9  225.8  - - - - - - 
Total FDI flows 74.7 56.3 114.4  11.9 -1.3 -1.8 0.06 0.05 0.05 - - - 
 
Exchange rate: Japanese yen per U.S. dollar: 2009 (93.5701), 2010 (87.7799), 2011 (79.8070). 
Table 1.2 Peru: Trade in commercial services  and investment with Japan and world, 
2009-2011  
Unit: in billion US$ 
Service Item World Japan 
Exports Imports Exports Imports 
2009 2010 2011  2009  2010  2011  2009  2010  2011 2009 2010  2011  
Total commercial 
services 3.5 3.6 4.2 4.6 5.8 6.3 - - - - - - 
Transportation 
services 0.8 0.9 1.0 1.7 2.5 2.5 - - - - - - 
Travel 2.0 2.0 2.4 1.1 1.3 1.4 - - - - - - 
Communication 
services 0.1 0.1 0.1 0.2 0.2 0.2 - - - - - - 
Construction 
and installation 0.0 0.0 0.0 0.0 0.1 0.1 - - - - - - 
Insurance 
services   0.3 0.2 0.2 0.4 0.5 0.6 - - - - - - 
Financial 
services 0.0 0.1 0.1 0.1 0.0 0.1 - - - - - - 
Computer and 
information 
services 0.0 0.0 0.0 0.2 0.2 0.2 - - - - - - 
Royalties and 
licence fees 0.0 0.0 0.0 0.2 0.2 0.2 - - - - - - 
Other business 
services 0.3 0.3 0.4 0.8 0.9 1.1 - - - - - - 
Personal, 
cultural and recreation services 0.0 0.0 0.0 0.0 0.0 0.0 - - - - - - 
 World Japan 
 Outward Inward Outward Inward 
 2009 2010 2011  2009  2010  2011  2009  2010  2011 2009 2010  2011  
Total FDI stocks 2.3 3.3 3.1 34.5 43.0 51.2 - - - 0.19 0.23  0.23 
Total FDI flows 0.4 0.3 0.1 6.4 8.5 8.2 0.0 0.0 0.0 0.02 0.04 0.01 
 
Source: Japan and Peru authorities, OECD and UNCTAD (F DI with world).  WT/REG309/1/Rev.1 
 
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  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 2.1.  The Agreement was signed on 31 May 2011 and entered into force on 1 March 2012. The 
Parties notified the goods and services aspects of the Agreement to the WTO on 24 February 2012, 
in document WT/REG309/N/1–S/C/N/617. The notification was made pursuant to Article XXIV:7(a) 
of the GATT 1994 for goods, and to Article V:7(a) of  GATS for services. The text of the Agreement, 
together with its Annexes, is availabl e on the Parties' official websites: 
 Japan : 
http://www.mofa.go.jp/region/la tin/peru/epa201105/index.html   
 
 Peru : 
http://www.acuerdoscomerciales.gob.pe/index .php?option=com_content&view=category&la
yout=blog&id=92&Itemid=115  
 
2.2  Structure of the Agreement 
2.2.  The Agreement is composed of a Preamble and sixteen Chapters. It is complemented by 
ten Annexes, referred to in specif ic Chapters of the Agreement and including the Parties' Schedules 
related to their liberalization commitments in g oods and in services. Moreover, an Implementing 
agreement, also signed on 31 May 2011, and conclu ded pursuant to Article 16 of the Agreement, 
sets forth the details and procedures for the implementation of certain provisions of the Agreement. On the occasion of the signing of th e Agreement, Japan and Peru also issued joints 
statements on biodiversity, access to genetic resources and traditional knowledge, and on trade 
and environment, which are not, per se , parts of the Agreement.  
2.3.  Box 2.1 below summarizes the legal framework established by the Agreement. 
Box 2.1 - Structure of the Agreement 
Chapters, and Annexes Title/description 
Preamble  
Chapter 1 General provisions 
Chapter 2 Trade in goods 
Chapter 3 Rules of origin 
Chapter 4 Customs procedures and trade facilitation 
Chapter 5 Sanitary and Phytosanitary measures 
Chapter 6 Technical regulations, standards and conformity assessment procedures 
Chapter 7 Cross-border trade in services 
Chapter 8 Telecommunications services 
Chapter 9 Entry and temporary stay of nationals for business purposes 
Chapter 10 Government procurement 
Chapter 11 Intellectual property rights 
Chapter 12 Competition 
Chapter 13 Improvement of the business environment 
Chapter 14 Cooperation 
Chapter 15 Dispute settlement 
Chapter 16 Final provisions 
Annex 1 Schedules in relation to Art. 21 (trade in goods) 
Annex 2 Measures of Peru in relation to Art. 20 and Art. 22 (trade in goods) 
Annex 3 Product specific rules (rules of origin) WT/REG309/1/Rev.1 
 
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  Chapters, and Annexes Title/description 
Annex 4 Proofs of origin (rules of origin) 
Annex 5 Schedules (cross-border trade in se rvices - existing non-conforming 
measures) 
Annex 6 Schedules (cross-border trade in serv ices - new/future non-conforming 
measures) 
Annex 7 Financial services 
Annex 8 Specific commitments for entry and temporary stay of nationals for 
business persons 
Annex 9 Government procurement 
Annex 10 Geographical indications for wines and spirits 
Implementing Agreement  (pursuant to Art. 16 of the Agreement) 
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 shall accord national treatment to  the goods of the other Party in accordance with 
Article III of the GATT 1994, which is incorporated into and made part of the Agreement, mutatis 
mutandis (Article 20). However, a number of meas ures taken by Peru, and referred to in Annex 2 
of the Agreement, are reserved.
6 
3.2.  Neither Party shall introduce or maintain any prohibition or restriction other than customs 
duties on imports of any good from the other Party, which is inconsistent with its obligations under 
Article XI of the GATT 1994 and the other provisio ns of the WTO Agreement. Additionally, neither 
Party shall require its importers to have a contractual or other relationship with a distributor in the 
importing Party as a condition for engaging in imports or for the import of a good, which is 
inconsistent with Article XI of the GATT 1994 (Article 22). Neither Party shall adopt or maintain a measure that is inconsistent with the Agreement on Import Licensing Procedures, which is incorporated into and made part of the Agreement, mutatis mutandis (Article 23). WTO consistent 
import licensing procedures applied by a Party to a good of the other Party shall be notified. 
3.3.  A Sub-Committee on Trade in Goods is established by Article 37, inter alia , to review and 
monitor the implementation and operation of Chapter 2 of the Agreement. 
3.1.2  Liberalization of trade and tariff lines 
3.4.  Elimination or reduction of customs duties is governed by Article 21. The tariff elimination 
programme is contained in Annex 1 of the Agr eement, which is divided into three Parts.  
3.5.  Part 1 contains general notes and clarifies that the Parties Schedules are based on the 
HS 2007, and that, for the purposes of implementing equal annual instalments, the reduction for the first year shall take place on the date of entry into force of the Agreement (1 March 2012) 
followed by annual reductions on 1 April of each year
7 (the second reduction took place on 1 April 
2012). 
                                               
6 These measures concern: (i) used clothing and footwear pursuant to Law No. 28514; (ii) used vehicles 
and used automotive engines, parts and replacements pursuant to Legi slative Decree No. 843, and Urgent 
Decrees N. 079-2000 and 050-2008; (iii) used tires pursuant to Supreme Decree No. 003-97-SA; and (iv) used goods, machinery and equipment which utilize radioactive energy sources pursuant to Law No. 27757.  
7 "For the purposes of [Annex 1], the term "year" means, with respect to the first year, the period from 
the date of entry into force of [the Agreement] until the coming March 31 and, with respect to each 
subsequent year, the twelve-month period which starts on April 1 of that year" (Annex 1 referred to in Chapter 2 Schedules in relation to Article 21, Part 1, General Notes, paragraph 5). WT/REG309/1/Rev.1 
 
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  3.6.  Part 2 contains the Schedule of Japan and Notes clarifying, inter alia , the timetable and, in 
certain cases, the modalities for Japan's tariff elimination / reduction commitments. Seven categories establish modalities for the elimination of certain tariffs.
8 For the longest transitional 
period (Category "B16"), Peruvian goods will ente r duty free into Japan by April 2027. Category P 
establishes modalities for the reduction of certain tariffs.9 A ninth category Q describes modalities 
for one of the six types of Tariff Rate Quotas for Peruvian products. Categories "X" and "R" include goods excluded from liberalization. For the goods in  Category "R", negotiations to liberalize tariffs 
between the Parties are foreseen in the fifth year from the date of entry into force of the 
Agreement (i.e. 2016). 
3.7.  Part 3 contains the Schedule of Peru
10 and corresponding Notes. It defines nine categories, 
which establish modalities for the elimination of certain tariffs.11 As for Japan, under the longest 
transitional period (Category "B16"), Japanese go ods will enter duty free into Peru by April 2027. 
The Peruvian Schedule does not have any category which reduces tariffs rather than eliminating them, nor for TRQs. However, two categories R and X include goods which are excluded from 
liberalization although for the goods in Category R negotiations to liberalize tariffs between the 
Parties are foreseen in the fifth year from the date of entry into force of the Agreement (2016). Moreover, certain products remain subject to the Price Band System established by Peru.
12 Finally, 
Peru excludes used goods13 from liberalization. 
3.8.  Upon request by either Party, the Parties sh all negotiate on issues such as improving market 
access conditions on originating goods designated for negotiation in the Schedules in Annex 1 in accordance with the terms and conditions set out in such Schedules. Also, the Parties shall consult 
to consider accelerating the reduction or broadening the scope of the elimination of customs duties 
set out in their Schedules from the fifth calendar year following the calendar year in which the Agreement enters into force (2017) (Article 21.4). 
3.1.3  Liberalization schedule 
3.9.  The Tables in the following sections present the liberalization programme applicable to the 
Parties. 
3.1.3.1  Japan's liberalization programme 
3.10.  Japan's applied tariff in 2012 consisted of 8,846 lines at the HS nine-digit level (HS 2007). 
600 tariff lines were non ad valorem, representing 6.78% of the entire tariff.
14 Table 3.1 shows the 
scheduled duty elimination in terms of tariff lines and trade, as applied by Japan to imports from 
Peru. Before the entry into force of the Agreement, 3,678 tariff lines (41.6% of Japan's tariff) were 
already duty-free on an MFN basis, representing  92.4% of Japan's imports by value from Peru 
(during 2009-2011). Upon entry into force of the Agreement, an additional 3,551 lines (40.1% of 
the tariff) became duty-free for imports from Peru. As a result, 81.7% of Japan's tariff became 
duty free for imports from Peru, corresponding to 96.2% of imports by value from Peru. After ten years of implementation, in 2021, 7,873 lines (89%  of the tariff), corresponding to 99% of the 
value of imports from Peru are to become duty-f ree. By the end of the implementation period 
(2027), 7,954 tariff lines, 89.9% of Japan's tariff, corresponding to 99% of the value of its imports from Peru, will be duty free. 892 tariff lines (10.1%  of Japan's tariff) are excluded from any tariff 
elimination, representing a 1% of imports by value from Peru. 
                                               
8 Categories "A", B3", "B5" , B7", "B10", "B15", and "B16". 
9 Tariff reduction take place immediat ely at the entry into force of the Agreement. However, applicable 
preferential tariffs are set at 2%, 3%, 4%, 5%, or 8% for the goods listed in Japan's Schedule under 
Category "P".  
10 The Schedule of Peru shall be inte rpreted pursuant to the official na tional tariff nomenclature of Peru. 
11 Categories "A", B3", "B4", "B5" , B7", "B9", "B10", "B15", and "B16". 
12 The Price Band System is established under th e Supreme Decree No. 115-2001-EF, in accordance 
with Article 28 of the Agreement. 
13 "Used goods, also include those goods that are reconstructed, repaired, recovered, remanufactured or 
other similar name given to goods that, after having been  used, have been subject to some kind of process to 
restore their original characteristics or specifications, or to restore the functionality they had when they were 
new" (paragraph 3 of Part 3, Section 1, in Annex 1). 
14 As is standard practice, the WTO Secretariat does not include tariff lines which are subject to in-quota 
rates in its calculations. WT/REG309/1/Rev.1 
 
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  Table 3.1 Japan: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase-out 
period Number of 
lines % of total lines 
in Japan's tariff 
schedule Value of Japan's 
imports from Peru 
(2009-2011) in 
million US$ % of Japan's 
total imports 
from Peru 
2009-2011 
MFN duty free (2012)  3,678 41.6 1,891.6 92.4 
2012 a 3,551 40.1 77.7 3.8 
2014  26 0.3 0.3 0.0 
2016 137 1.5 3.5 0.2 
2018 161 1.8 6.8 0.3 
2021 320 3.6 46.2 2.3 
2026 77 0.9 0.0 0.0 
2027 4 0.0 0.0 0.0 
Remain dutiable 892 10.1 21.5 1.0 
Total 8,846 100.00 2,047.6 100.0 
 
a  On 1 March. All subsequent reductions shall take place on 1 April.  
Note: Tariff lines subject to in-quota ra tes are excluded in the computation. 
 Based on the HS 2007 nomenclature.  Source: WTO estimates based on data  provided by Japan and WTO-IDB. 
 
3.11.  Table 3.2 and Chart 3.1 show Japan's tariff elimination, by HS section and remaining tariffs 
by HS Chapter respectively. 892 tariff lines, in sections I through VI, VIII, IX, XI, and XII (Live 
animals and animal products, vegetable products, an imal or vegetable fats and oils, prepared food, 
minerals, chemical and chemical products, plastics and rubber, and wood and articles, textiles and 
textiles articles, and footwear and headgear) will re main subject to duties once implementation is 
completed in 2027, with final preferential tariff  rates averaging 19%; the highest average rates 
are found in Chapters 10 (cereals), and 17 (Sugar ). The preferential averages are equal to the 
average MFN applied rates for the lines remaining subject to duty, with the exception of those 
included in Chapters 3, 11, 16 and 20.  
Table 3.2 Japan: Tariff elimination under the Agreement, by HS section  
HS 
section MFN 
average
% Total 
No. of 
lines MFN 
duty-
free 
(2012) Number of duty-free lines 
No. of lines 
remaining 
dutiable 
Avg. Final 
Tariff 
(Dutiable) 
% 2012 a 2014 2016  2018  2021  2026 2027 
I 8.3 518 112 44 10 79 15 11 4  243 15.0 
II 6.1 530 166 138 4 14 34 58 17  99 20.6 
III 3.8 86 20 24  2 3    37 14.5 
IV 16.4 763 79 55 12 12 48 112 54 4 387 23.0 
V 0.5 216 163 34  18     1 0.5 
yen/kg 
VI 2.3 1,070 401 658  1 1 1   8 14.2 
VII 2.4 296 103 182  3  8     
VIII 10.5 193 65 3   29 56   40 15.2 
IX 3.4 263 94 76  7 4 37 2  43 6.9 
X 0.0 169 169          
XI 6.4 1,981 87 1,888       6 Specific 
duties 
XII 16.4 104 6 26   19 25   28 25.7 
XIII 1.2 164 99 63  1  1     
XIV 1.3 79 57 17    5     
XV 0.9 852 615 229   2 6     
XVI 0.03 918 911 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 3,551 26 137 161 320 77 4 892 19.0 
 
  WT/REG309/1/Rev.1 
 
- 13 - 
 
  a  On 1 March. All subsequent reductions shall take place on 1 April. 
Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad  valorem parts of altern ate rates are included. 
 Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on data provided by Japan. 
 
Chart 3.1 Japan: Average of du tiable rates, by HS Chapter 
 
01020304050
1
2
3
4
7
8
10
11
12
13
1516
17
1819
20
21
22
232401020304050
*25
2935414243
44
*50
64HS  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. 
* HS chapters 25 and 50 contain specific duties only.   Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on the data provided by Japan. 
 
3.1.3.2  Peru's liberalization programme 
3.12.  Peru's tariff schedule 2012 consisted of 7,370 lines at the HS ten-digit level (HS 2007). 
Table 3.3 shows the scheduled duty elimination in terms of tariff lines and trade, as applied by 
Peru to imports from Japan. Before the entry into force of the Agreement, 4,098 tariff lines (55.6% 
of Peru's tariff) were already duty-free on an MF N basis, representing 62.4% of Peru's imports by 
value from Japan (during 2009-2011). Upon entry into force of the Agreement, an additional 1,842 lines (25% of the tariff) became duty-free for imports from Japan. As a result, 80.6% of 
Peru's tariff became duty free for imports from Japan, corresponding to 65.5% of imports by value 
from Japan. After 10 years of implementation, in 2021, 7,175 lines (97.4% of the tariff) are to become duty-free, amounting to close to 100% of the value of imports from Japan. By the end of 
the implementation period (2027), 7,212 tariff lines, corresponding to 98.8% of Peru's tariff will be 
duty free for imports from Japan, representing close to 100% of the value of its imports from Japan. 158 tariff lines (2.1% of Peru's tariff) are excluded from any tariff elimination, representing a negligible part of imports by value from Japan. Peru may maintain its Price Band System for the 
products identified as eligible in its Schedule
15 (Article 28). 
                                               
15 Certain dairy products, certain ty pes of rice, maize (corn), certain maize products, and certain sugar 
products. WT/REG309/1/Rev.1 
 
- 14 - 
 
  Table 3.3 Peru: Tariff elimination commitments under the Agreement and corresponding 
average trade 
Duty phase-
out period Number of 
lines % of total lines 
in Peru's tariff 
schedule Value of Peru 
imports from Japan 
(2009-2011) in 
million US$ % of Peru's total 
imports from Japan 
2009-2011 
MFN duty free 
(2012) 4,098 55.6 750.1 62.4 
2012 a 1,842 25.0 37.1 3.1 
2014 21 0.3 0.3 0.0 
2015 9 0.1 143.1 11.9 
2016 643 8.7 7.0 0.6 
2018 47 0.6 1.4 0.1 
2020 25 0.3 250.2 20.8 
2021 490 6.6 13.3 1.1 
2026 34 0.5 0.0 0.0 
2027 3 0.0 0.0 0.0 
Remain dutiable 158 2.1 0.0 0.0 
Total 7,370 100.00 1,202.5 100.0 
a  On 1 March. All subsequent reductions shall take place on 1 April. 
Note: Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided by Peru. 
 
 
3.13.  Table 3.4 and Chart 3.2 show Peru's tariff elimination, by HS section and remaining tariffs 
by HS Chapter respectively. 158 tariff lines, in sections I through VI (Live animals and animal 
products, vegetable products, animal or vegetable fats and oils, prepared food, minerals, and 
chemicals and chemical products), XI (Textile s and textiles articles), and XII (Footwear and 
headgear) will remain subject to duties once implementation is completed in 2027, with final 
preferential tariff rates averaging 6.9% and ra nging between 6% and 11%; the highest average 
rates are found in Chapters 63, 64 (textiles arti cles and footwear), and 8 (fruits and nuts). The 
preferential averages are equal to the average MF N applied rates for the lines remaining subject to 
duty.  
Table 3.4 Peru: Tariff elimination un der the Agreement, by HS section  
HS 
section MFN 
average
% Total 
No. of 
lines  MFN 
duty-
free 
(2012) Number of duty-free lines 
No. of 
lines 
remaining 
dutiable 
Avg. Final 
Tariff 
(Dutiable) 
% 2012 a 
2014 
2015 
2016 
2018 
2020 
2021 
2026 
2027 
I 2.2 308 207 46   8   1   46 7.4 
II 4.3 384 130 121   46 11  22 9  45 6.9 
III 2.6 64 36 15   7   2   4 6 
IV 3.6 301 126 41   40 3  13 24 3 51 6.4 
V 1.8 214 151 41   18      4 6 
VI 2.0 1465 970 174 7  171   138   5 6 
VII 2.2 312 196 4 1 1 40 8  62     
VIII 5.3 79 9 16   32   22     
IX 4.4 107 28 19   37 1  22     
X 3.7 246 93 50   71   32     
XI 9.2 966 63 897      5   1 11 
XII 8.8 56  4   24 18  8   2 11 
XIII 2.3 174 106 1   35 1 2 29     
XIV 3.5 57 24 10   15   8     
XV 1.0 700 581 26 5 4 32 2  50     
XVI 1.1 1195 991 120  1 28 1 4 50     
XVII 1.2 226 181 12  3 1  18 11     
XVIII 2.4 290 175 106   7   1 1    
XIX 6.0 69  69           
XX 4.8 150 31 63 8  31 2 1 14     
XXI 6.0 7  7           
Total 3.2 7,370  4,098 1,842 21 9 643 47 25 490 34 3 158 6.9 
a  On 1 March. All subsequent reductions shall take place on 1 April. 
Note: Based on the HS 2007 nomenclature. Source: WTO Secretariat estimates based on data provided by Peru. WT/REG309/1/Rev.1 
 
- 15 - 
 
  Chart 3.2 Peru: Average of duti able rates, by HS Chapter 
051015
02 03 04 05 07 08 10 11 12 13 15 16 18 19 20 21 22 25 35 63 64HS ChapterAverage rate of duty (%)  
MFN = Preferential
 
 
Source: WTO Secretariat estimates based on data provided by Peru. 
 Based on the HS 2007 nomenclature. 
 
3.1.4  Tariff rate quotas 
3.14.  In addition to tariff elimination and reduction commitments, Japan grants preferential 
access for some products originating in Peru through six different types of preferential TRQs. These are summarized in Annex II to this factual presentation. In most cases quota quantities are to increase annually while in-quota rates are unchanged; the TRQs are to remain in place once the 
Agreement is fully implemented. In most cases, th e tariff rate quota shall be implemented through 
a certificate of tariff rate quota issued by the importing Party. The operational procedures applicable to the Japanese TRQs are contained in Section 3 of Annex 1 of the Agreement.
16 Peru's 
Schedule does not contain any commitments on TRQs. 
3.2  Rules of origin 3.15.  Disciplines regarding rules of origin are set out in Chapter 3 of the Agreement. They have to 
be read in conjunction with Annex 3, which contains the product specific rules applicable when the 
good is produced entirely in the Party using non-originating materials. 
 
3.16.  According to Article 39, a good qualifies as an originating good of a Party where it: 
a. is wholly obtained or produced entirely in the Party
17; 
b. is produced entirely in the Party, exclusively from originating materials of the Party; or  
c. satisfies the product specific rules, contained in Annex 3 of the Agreement. 
                                               
16 See the summary contained in Anne x II to this factual presentation. 
17 Article 40 defines further the conditions to be fulfilled to qualify as "Wholly obtained goods". WT/REG309/1/Rev.1 
 
- 16 - 
 
  3.17.  Article 42 identifies the operations that do not confer origin on goods neither wholly 
obtained nor produced in a Party. 
3.18.  Article 43 permits cumulation by materials and production process when determining 
whether a good is an originating good of a Party, provided that such good has undergone its last 
production process in the exporting Party and that such production process goes beyond the 
non-qualifying operations described in Article 42. 
3.19.  When goods are neither wholly obtained no r produced in a Party, or when they are not 
entirely produced in the Party exclusively from originating materials of the Party, they must satisfy 
the product specific rules in Annex 3, when the goods are produced entirely in the Party using non-originating materials. The product specific rules are based on the HS 2007 nomenclature. In most 
cases, they require a change in tariff classification  rule (CTC rule), sometimes with exceptions (for 
instance for textiles products). For a number of products, no change in tariff classification is 
required provided that a qualifying value content (usually of no less than 50%
18) is reached. In a 
few cases, the product specific rules define a manufacturing or processing operation that confers 
origin. 
3.20.  A good that does not satisfy a change in the tariff classification requirement in Annex 3 shall 
be considered as an originating good if the value of all non-originating materials used does not 
exceed 10% of the FOB value of the good19 or 10% of the total weight of the good.20 
3.21.  Additional disciplines on unassembled or di sassembled goods, fungible goods or materials, 
sets, accessories, spare parts and tools, packaging materials and containers for retail sale, packing materials and containers for shipments, indirect materials, and consignment criteria are contained 
in Articles 45 to 52. 
3.22.  Moreover, a series of administrative rules applicable to proofs of origin
21, rules on 
certificates of origin - which shall conform to the specimen provided in Annex 4 of the Agreement22 
-, certificate of origin issued retrospectively, issuance of a duplicate certificate of origin, origin 
declaration, and approved exporter are established by Articles 53 through 58.  
3.23.  Disciplines related to the claim for preferential treatment, the production of supporting 
documents and other obligations related to importat ions, the validity of proof of origin, and the 
preservation of documents and records are contained in Articles 60 through 64. 
3.24.  A detailed verification process is also established by the Agreement (Article 66). Penalties 
against violation of each Party's laws and regulations shall be adopted (Article 67). Article 68 
establishes confidentiality rules. 
3.25.  A Sub-Committee on Rules of origin is established to review and make appropriate 
recommendations, as necessary, to the Commission, which may adopt Operational Procedures that 
provide detailed guidelines regarding the provisions of Chapter 3. 
3.3  Export duties and charges,  and quantitative restrictions 
3.26.  Neither Party shall introduce or maintain any prohibition or restriction23 other than customs 
duties on the exportation or sale for export of any good destined for the other Party, which is 
inconsistent with its obligations under Article XI of the GATT 199424 and the other provisions of the 
WTO Agreement. Additionally, neither Party shall require the other Party or exporters to adopt or 
                                               
18 The QVC is defined in Article 41.  In a limited number of cases, the QVC is set at 45% or 40%. 
19 In the case of a good classified under HS Chapters 1,4 through 15, or 17 through 24 (in relation with 
the conditions set in Article 44, paragraph 1a), or cl assified under HS Chapters 25 through 49, or 64 through 
97 (in relation with the conditions set in Article 44, paragraph 1b).  
20 In the case of a good classified under HS Chapter 50 through 63. 
21 Under a certain ceiling, proof of origin may not be required (Article 60). 
22 The form of the Parties' Certificate of origin as well as, inter alia , the names of the certification bodies 
shall be notified to the other Party (Article 59). 
23 Except as provided for in Annex 2 of the Agreem ent (related to measures taken by Peru regarding 
certain used products). 
24 Article XI of the GATT 1994 is incorporated into and made part of the Agreement, mutatis mutandis .  WT/REG309/1/Rev.1 
 
- 17 - 
 
  maintain voluntary undertakings inconsistent with the Agreement on Antidumping or the 
Agreement on Subsidies and Countervailing Measures, or voluntary export restraints inconsistent with the Agreement on Safeguards (Article 22). 
3.27.  Neither Party shall introduce or maintain any duties, fees nor other charges of any kind 
imposed on a good exported from the Party to the other Party, unless such duties, fees or other 
charges are not in excess of those imposed on the like good destined for domestic consumption (Article 25). 
3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures 3.28.  Chapter 5 of the Agreement covers Sanitary and Phytosanitary Measures (SPS). The Parties 
reaffirm their rights and obligations relating  to SPS measures under the WTO SPS Agreement 
(Article 87).  
3.29.  Enquiry Points shall be designated
25 by the Parties and a Sub-Committee on SPS Measures 
is established to, inter alia , review the implementation and operation of Chapter 5.  
3.4.1.2  Technical barriers to trade 3.30.  Chapter 6 of the Agreement covers Te chnical Regulation, Standards and Conformity 
Assessment Procedures (TBT). The Parties reaffirm their rights and obligations relating to TBT 
measures under the WTO TBT Agreement (Article 93).  
3.31.  Each Party shall use relevant international standards and guides or recommendations to the 
extent provided in the TBT Agreement, as a ba sis for its technical regulations and conformity 
assessment procedures. Moreover, Each Party shall encourage its national standardizing bodies to 
cooperate with the relevant national standardizing bodies of the other Party in international activities (Article 94).  
3.32.  Positive consideration shall be given by each Party to accepting as equivalent technical 
regulations of the other Party, even if these regulations differ from its own, provided the objectives of its own regulations are fulfilled. In case equivalence is not granted, Parties' decisions shall be 
explained (Article 95). 
3.33.  Each Party shall notify electronically to the other Party's enquiry point its proposed technical 
regulations and conformity assessment procedures at the same time it notifies to the WTO Secretariat. The notification shall include a link to, or if requested by the other Party, a copy of, 
the English version of such technical regulation  and conformity assessment procedures. Whenever 
possible, each Party shall accredit, designate or  recognize conformity assessment bodies in the 
other Party on terms no less favourable than those it accords to conformity assessment bodies in 
its Area. Whenever a Party does not accept the re sults of conformity assessment procedures in the 
other Party, or in case a request to enter into negotiations to conclude an arrangement for recognition of the results of conformity assessmen t procedures is declined, an explanation of the 
reasons shall be given to the other Party (Article 96).  
3.34.  Where a Party detains at a port of entry a good exported from the other Party due to a 
perceived failure to comply with a technical regulation, it shall endeavour to immediately notify the importer of the reasons for the detention of the good (Article 97). 
3.35.  The provision of technical co-operation between the Parties is encouraged (Article 98), and 
rapid exchange of information, when foreseen by the Agreement, is required (Article 100). 
3.36.  Enquiry Points established in the context of the Parties' obligations under the WTO TBT 
Agreement shall be used also in the context of the Agreement, inter alia  for notification obligations 
                                               
25 Enquiry Points have not yet been designated by the Parties. WT/REG309/1/Rev.1 
 
- 18 - 
 
  (Article 97), and a Sub-Committee on Technical Regulations, Standards and Conformity 
Assessment Procedures is established to, inter alia , monitor the implementation and operation of 
Chapter 6 (Article 99).  
3.4.2  Safeguard mechanisms 
3.4.2.1  Global safeguards 
3.37.  Each Party retains its rights and obligations under Article XIX of the GATT 1994, and the 
Agreement on Safeguards (Article 29, paragraph 1). 
3.4.2.2  Bilateral safeguards 
3.38.  Articles 30 to 36 establish the modalities applicable to bilateral safeguard measures that 
may be taken by a Party if an originating good of the other Party, as a result of the elimination or reduction of a customs duty in accordance with Article 21 (liberalization programme), is being 
imported into the former Party in such increased quantities, in absolute terms, and under such 
conditions that the imports of that originating good constitute a substantial cause of serious injury, or threat thereof, to the domestic industry of th e former Party. In such a case, the importing Party 
may (a) suspend the further reduction of a customs duty on the originating good; (b) increase the 
duty rate to a level not to exceed the lesser of the applied MFN rate in effect when the safeguard 
action is taken, the base rate as specified in the Schedules contained in Annex 1, and the MFN 
applied rate in effect on 28 February 2012. 
3.39.  The measure may only be applied following an investigation by the Party's competent 
authorities in accordance with procedures similar as those contained in Articles 3, and 4.2(c) of the WTO Agreement on Safeguards and to the minimum extent necessary to prevent or remedy the 
serious injury to a domestic industry and to facilitate adjustment. A Party must inform the other 
Party in writing of the initiation of an investigation and the decision to apply or extend a bilateral safeguard. That Party must also provide adequate opportunity for prior consultations with the 
other Party with a view to reviewing the proposed measure and reaching an agreement on the 
level of compensation. The maximum duration of measures is two years which can, in highly exceptional circumstances, be extended to a to tal maximum period of three years. The measure 
must not be reapplied to goods which have already been subject to a bilateral safeguard, for a 
period of time equal to the duration of the prev ious measure or one year, whichever is longer.  
3.40.  The Party proposing to apply a bilateral safeguard must provide to the other Party mutually 
agreed adequate means of trade compensation at a level substantially equivalent to the safeguard. 
Compensation takes the form of duty concessions on imports whose value is substantially 
equivalent to that of the additional customs duties on imports expected to result from the bilateral safeguard. If the Parties are unable to agree on compensation within 30 days following 
commencement of the consultations, the Party against which the measure is taken will be free to 
suspend the application of duty concessions under the Agreement to a level substantially equivalent to the bilateral safeguard. The right of suspension is limited to what is necessary to 
achieve the substantially equivalent effects of the safeguard. 
3.41.  Provisional measures (Articles 33-35) may be taken in critical circumstances where delay 
would cause damage which would be difficult to repair. The imposition of such a measure requires written notice and a preliminary determination of clear evidence that increased imports of an 
originating good have caused or are threatening to cause serious injury to a domestic industry. A 
provisional measure cannot exceed 200 days. If the investigation fails to determine that the increased imports from the other Party constitute a substantial cause of serious injury, or threat 
thereof, the Party applying the measure must refund or liberate any additional duties collected as 
a result of the measure. 
3.42.  A Party applying a safeguard on the import of an originating good of the other Party in 
accordance with Article XIX of the GATT 1994 and the Agreement on Safeguards, or Article 5 of 
the Agreement on Agriculture, may not apply at the same time a bilateral safeguard measure to that import (Article 29). WT/REG309/1/Rev.1 
 
- 19 - 
 
  3.43.  A review of the safeguard provisions of th e Agreement, if necessary, is envisaged ten years 
from the date of entry into force of the Agreement,  in particular to determine the need to maintain 
the bilateral safeguard mechanism. 
3.4.2.3  Special safeguards 
3.44.  Each Party retains its rights and obligations  under Article 5 of the Agreement on Agriculture 
(Article 29, paragraph 1). 
3.4.2.4  Balance of Payments safeguards 
3.45.  Temporary safeguard measures are allowe d by the Agreement, in the event of serious 
balance-of-payments and external financial difficulties or threat thereof, or in cases where movements of capital cause or threaten to cause serious difficulties for macroeconomic management, in accordance with Article XII of the GATT 1994 and the Understanding on the BOP 
provisions of the GATT 1994 (Article 13).  
3.4.3  Anti-dumping and countervailing measures 3.46.  The Agreement does not contain any specific provision referring to antidumping or 
countervailing measures other than that neither Party shall require the other Party or exporter to 
adopt or maintain voluntary undertakings inconsistent with Article 8 of the WTO Agreement on Antidumping and Article 18 of the Agreement on Subsidies and Countervailing Measures 
(Article 22). 
3.4.4  Subsidies and State-aid 3.47.  Export subsidies on any agricultural good
26 exported by one Party to the other may not be 
introduced, maintained or reintroduced by any Party. Should a Party consider that the other Party 
has done so, it may request consultations with a view to arriving at a mutually satisfactory 
solution, in particular, through specific measures that the importing Party may adopt to counter the effect of such subsidized export (Article 27). 
3.4.5  Customs-related procedures 
3.48.  Although customs-related matters are also contained in other parts of the Agreement, 
Chapter 4 covers specifically customs procedures and trade facilitation. The Chapter applies to 
customs procedures required for the clearance of goods traded between the Parties and for 
customs control on goods traded between the Partie s, including means of transport, which enter or 
leave the customs territory of the Parties. It establishes a framework to ensure transparency, 
proper application of customs laws and prompt cl earance of goods, and foresees the promotion of 
co-operation in customs procedures between the Parties. 
3.49.  The provisions range from transparency, to  ensure that relevant information are properly 
and promptly disseminated, inter alia , through enquiry points (Article 76) and the promotion of the 
use of information and communication technologies (Articles 77), to the maintenance of a risk 
management systems (Article 78). Predictable, consistent and transparent procedures and efforts for prompt customs clearance are required (Art icle 79) and separate and expedited customs 
procedures for shipments are foreseen (Article 80). Advance rulings and easily accessible 
processes of administrative and judicial reviews are regulated by Articles 81 and 82. Penalties and 
sanctions against violations of customs laws, for the purposes of Chapter 4, shall be adopted or maintained by the Parties (Article 84). The Agreement also establishes customs co-operation and 
exchange of information mechanisms (Article 83), further elaborated in Chapter 1 of the 
Implementing Agreement.
27  
                                               
26 Listed in Annex 1 to the WT O Agreement on Agriculture. 
27 Chapter 1 of the Implementing Agreement elaborates on mutual assistance, information and 
communications technology and risk management, author ized economic operator, enforcement against illicit 
trafficking, the application of border measures related to the protection of intellectual property rights, and 
exchange of information. It also identifies a few exceptions related to the communication of certain information. WT/REG309/1/Rev.1 
 
- 20 - 
 
  3.50.  A Sub-Committee on Customs Procedures and Trade Facilitation is established to review the 
implementation and operation of Chapter 4 (Article 85). 
3.51.  In addition to Chapter 4, the provisions of the Agreement on Implem entation of Article VII 
of the GATT 1994 (Agreement on Customs Valuation), which is incorporated into and made part of 
the Agreement, mutatis mutandis, are applicable  for the purposes of determining the customs 
value of goods trade between the Parties (Article 26). Administrative Fees and Formalities are to be applied by the Parties in conformity with Ar ticle VIII of the GATT 1994, which is incorporated 
into and made part of the Agreement, mutatis mutandis  (Article 24). Additionally, neither Party 
shall require consular transactions in connection with the importation of a good of the other Party.  
4  PROVISIONS ON TRADE IN SERVICES 4.1  Scope and definitions 
4.1.  In the Agreement, rules governing trade in services are found in Chapters 7 (cross-border 
trade in services
28), 8 (telecommunications services), and 9 (entry and temporary stay of nationals 
for business purposes). Annexes 5 and 6 respectively list the existing non-conforming measures 
and the sectors, sub-sectors or activities in which the Parties may adopt or maintain 
non-conforming measures. Annexes 7, on financial services, and 8, related to Chapter 9, contain 
specific commitments for the entry and temporary stay of nationals for business purposes. 
4.2.  Measures covered by the disciplines contained in the Agreement are the measures adopted or 
maintained by a Party affecting cross-border trade in services by service suppliers of the other Party, including those affecting: (i) the supply of a service; (ii) the purchase or use of, or payment 
for, a service; (iii) the access to and the use of services offered to the public generally, including 
distribution, transport or telecommunications networks and services, in connection with the supply 
of a service; (iv) the presence in the Area of a Party of a service supplier of the other Party; and (v) the provision of a bond or other form of financial security as a condition for the supply of a 
service. However, certain measures affecting traffic rights or services directly related to the 
exercise of traffic rights with respect to air transport services
29, as well as government 
procurement are not covered by Chapter 7. Moreover, the disciplines in Chapter 7 related to 
subsidies (Article 103), market access (Article 106), transparency (Article 110), and domestic 
regulations (Article 111), also apply to measures by a Party affecting the supply of a service by 
covered investments30, which is equivalent to trade in service through mode 3 according to the 
GATS definition of modes of supply (paragraph 3 of Article 101).  
4.3.  Furthermore, the Agreement between Japan and the Republic of Peru for the Promotion, 
Protection and Liberalization of Investment (BIT),  signed in 2008 by both Parties, which covers 
measures related to trade in service through mode 3, is incorporated into and made part of the 
Agreement (paragraph 3 of Article 2). 
4.4.  The Agreement shall not impose any obligation on a Party with respect to a national of the 
other Party seeking access to its employment mark et, or employed on a permanent basis in that 
Party. Also, it shall not confer any right on that national with respect to that access or 
employment, and shall not apply to services supp lied in the exercise of governmental authority 
(Article 101). 
4.2  Denial of benefits 
4.5.  Under Article 115, a Party may deny the benefits of Chapter 7 to a service supplier of the 
other Party that is an enterprise of the other Party, where the former Party establishes that the 
                                               
28 "Cross-border trade in services" refers to the supp ly of a service through modes 1, 2, or 4 according 
to the GATS definition of modes of supply. 
29 Chapter 7 however applies to measur es affecting (i) aircraft repair and maintenance services; (ii) the 
selling and marketing of air transport services; and (iii) computer reservation systems (CRS) services. 
30 "Covered investments" means, with respect to a Pa rty, investments of an in vestor of the other Party 
in the Area of the Party existing on the date of entry into force of the Agreement or established, acquired or 
expanded thereafter. WT/REG309/1/Rev.1 
 
- 21 - 
 
  enterprise is owned or controlled by persons of a non-Party, and the former Party31: (i) does not 
maintain diplomatic relations with the non-Party; or (ii) adopts or maintains measures with respect to the non-Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of Chapter 7 were accorded to the enterprise. Moreover, subject to 
prior notification and consultation, a Party may deny the benefits of Chapter 7 to a service supplier 
of the other Party that is an enterprise owned or controlled by persons of a non-Party and that has no substantial business activities in the Area of the other Party. 
4.3  General provisions on trade in services 
4.3.1  Market access 4.6.  Article 106 on market access mirrors, to a large extent, Article XVI (a)-(e) of the GATS, 
which lists the types of measures which shall not be maintained or adopted either on the basis of a 
regional subdivision or the entire territory of th e Party. Article 106 does not apply to existing non-
conforming measures listed by each Party in Annex 5 to the Agreement, and to any measure that a Party adopts (in the future) or maintains with resp ect to sectors, sub-sectors or activities, listed 
by each Party in Annexe 6 to the Agreement. 
4.3.2  National and MFN treatments 4.7.  Under Articles 104 and 105, the Parties agree to accord to services and service suppliers of 
the other Party, treatment no less favourable than that they accord, in like circumstances, to 
services and service suppliers of any non-Party (MFN treatment), and to their own services and service suppliers (national treatment). On national treatment, the Parties clarify, in a note, that 
nothing in Article 104 shall be construed to require either Party to compensate for any inherent 
competitive disadvantages which result from the foreign character of the relevant servicers or 
service suppliers. Articles 104 and 105 do not appl y to existing non-conforming measures listed by 
each Party in Annex 5 to the Agreement and to any measure that a Party adopts (in the future) or 
maintain with respect to sectors, sub-sectors or activities, listed by each Party in Annexe 6 to the 
Agreement. 
4.3.3  Local presence 
4.8.  Neither Party shall require a service supplier of the other Party to establish or maintain, a 
representative office, a branch or any form of enterprise, or to be resident, in its Area as a condition for the cross-border supply of a service (Article 107). Article 107 does not apply to the existing non-conforming measures listed by each Party in Annex 5 to the Agreement and to any 
measure that a Party adopts (in the future) or ma intain with respect to sectors, sub-sectors or 
activities, listed by each Party in Annexe 6 to the Agreement. 
4.3.4  Movement of natural persons 
4.9.  Chapter 9 of the Agreement covers entry and temporary stay
32 of nationals for business 
purposes. The chapter reflects the preferential trading relationship between the Parties, their 
mutual desire to facilitate entry and temporary stay of nationals for business purposes on a 
reciprocal basis, in accordance with Annex 8, an d the need to establish transparent criteria and 
procedures for entry and temporary stay. It also reflects the need to ensure border security and to protect the domestic labour force and permanent employment in either Party. Chapter 9 does not apply to measures regarding nationality or citizenship, or residence or employment on a 
permanent basis, or immigration. Moreover, nothing in the chapter shall be construed to impose 
obligations with respect to other chapters of the Agreement. 
4.10.  Each Party commits to grant entry and temporary stay to nationals for business purposes of 
the other Party who comply with existing immigration measures, in conformity with the modalities 
                                               
31 For the purposes of Chapter 7 of the Agreement, an  enterprise is: (i) "owned" by a person if more 
than 50% of the equity interests in it is beneficially ow ned by the person; and (ii) "c ontrolled" by a person if 
the person has the power to name a majority of its di rectors or otherwise to legally direct its actions. 
32 The term "entry and temporary stay" means entry into  and stay in a Party by a national for business 
purposes of the other Party without the intent to establish permanent residence. WT/REG309/1/Rev.1 
 
- 22 - 
 
  in Annex 8. They also commit to ensure that the fees for processing applications are not 
unjustifiable impediment, and are charged having regard to the administrative costs involved.  
4.11.  Annex 8 to the Agreement identifies the categories of business activities33 by the Parties' 
commitments contained in Chapter 9 and defines the modalities applicable to entry and temporary 
stay of nationals of the other Party. The Parties' commitments build on, and expand certain 
aspects of their GATS commitments. In most cases,  a Party may continue to require proof of the 
nationality of the applicant, details of the activi ty to be conducted in the other Party, and its 
international character. In certain cases, proof of qualification, including academic or technical 
diplomas, may be required. 
4.12.  Japan and Peru agree to prepare, publish and make available in the Parties, explanatory 
material regarding the requirements for entry and temporary stay under Chapter 9 of the 
Agreement. The objective is to enable nationals of the other Party to become acquainted with the 
conditions applicable to them. This information shall be made available no later than six months after the date of entry into force of the Agreement
34. Moreover, each Party shall endeavour, to the 
extent possible, to respond to enquiries from in terested persons regarding entry- and temporary 
stay-related applications and procedures. 
4.13.  The Parties agree to exchange views regarding, inter alia , visa policy, and the 
implementation of programmes and technology affe cting the entry and temporary stay of nationals 
for business purposes. They also will endeavour to coordinate actively in multilateral fora with respect to the matter. 
4.14.  A Sub-Committee on Entry and Temporary Stay of Nationals for Business Purposes is 
established, inter alia , to review the implementation and the operation of Chapter 9 of the 
Agreement (Article 138). 
4.15.  A Party may not initiate the Agreement's dispute settlement procedures regarding a refusal 
to grant entry and temporary stay under Chapter 9, except if there is a recurrent pattern of 
practice, and if the affected business person has exhausted all internal administrative recourses available to him/her. 
4.3.5  Performance requirements 
4.16.  The Agreement does not contain any specific provision on performance requirements. 
However, Article 12 of the BIT, which is incorporat ed into and made part of the Agreement, still 
provides for a set of rules on performance requirements on investment. 
4.3.6  Senior managers and board of directors 
4.17.  The Agreement does not contain any specific provision on senior managers and boards of 
directors. However, Article 12 of the BIT contains rules on senior managers and board of directors 
on investment. 
                                               
33 The categories of business activities identified by the Parties by Japan ar e: "short-term business 
visitors", "intra-corporate transf erees", "investors", "nationals for business purposes who engage in 
professional services", "nationals for business purposes who engage in  business activities, which require 
technology or knowledge at an advance level or which require specialized skills belonging to particular fields of industry, on the basis of a personal contract with a publ ic or private organization". Those identified by Peru 
are: "business visitors", "intra-corporate transferee s", "investors", and "profe ssionals and technicians". 
 34 Japan published the explanatory material at: 
http://www.mofa.go.jp/region/latin/peru/entry_info1208.html  and Peruvian publications are available at: 
http://www.acuerdoscomerciales.gob.pe/images/stories /japon/ingles/peruvian_consolidated_document_tempo
rary_entry_w.pdf , as well as at: 
http://www.acuerdoscomerciales.gob.pe/images/stori es/japon/ingles/japanes_consolidated_temporary 
entry_w.pdf . WT/REG309/1/Rev.1 
 
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  4.3.7  Other provisions 
4.3.7.1  Notification and transparency 4.18.  Article 109 foresees that a Party notifies the other Party in case it makes an amendment or 
a modification to any existing non-conforming measures, registered in each Party's Schedule 
contained in Annex 5, or adopts any measures with respect to sectors, sub-sectors or activities 
registered by each Party in Annex 6. Moreover, the Parties shall endeavour to ensure greater transparency related to subject matters of Chapter 7, as compared with the level of transparency 
required by Chapter 1 of the Agreement. 
4.3.7.2  Review of the implementation 4.19.  The review of the implementation of Chapter 7 (cross-border trade in services) shall be 
pursued within the framework of the Commission, through consultations, together with the 
consideration of other matters of mutual interest affecting cross-border trade in services. 
4.4  Liberalization commitments 4.20.  Liberalization modalities in Chapter 7 follow a "negative list" approach which assumes that 
all sectors or sub-sectors covered by these chapters are liberalized, in terms of national treatment, 
market access, MFN, and local presence, unless otherwise provided in the Parties' lists of non-conforming measures contained in Annexes 5 and 6, which are described below.
35 
4.21.  The Parties increase the coverage of commi tted sectors as compared to their GATS specific 
commitments particularly in the sectors for which Japan and Peru had not made specific commitments under GATS or where they had introd uced substantial limitations to market access 
and/or national treatment. The level of preferenti al access and/or treatment for trade in services 
depends however upon the coverage of the reserv ation in the Parties' lists of non-conforming 
measures. 
4.4.1  Japan's liberalization commitments 
4.22.  In its GATS schedule, Japan made specific commitments in all services sectors.
36 Japan also 
took additional commitments in telecommunications services, is a signatory to the Fourth Protocol on basic telecommunications, and made additional commitments in financial services.
37  
4.23.  While, under the GATS, Japan did not list  any MFN exemptions, under the Agreement, it 
registers reservations on the MFN provisions of Chapter 7 for existing measures for freight forwarding business, and for water transport (subject to reciprocity, or related to entering ports in 
Japan). Japan also reserves, for all sectors, its right to adopt or maintain any measure that 
accords differential treatment to countries under any bilateral or multilateral agreement in force 
on, or signed prior to, the date of entry into force of the Agreement (Annex 6 to the Agreement). The granting of differential treatment is also reserved for future bilateral or multilateral 
agreements involving aviation, fisheries, or maritime matters, including salvage. MFN reservations 
are moreover entered for future measures relating to new services
38 (in all sectors), the energy 
sector39 and fisheries.40 
                                               
35 Annex 7 also contains supplementary provisions to Chapter 7, which apply to trade in financial 
services. 
36 See WTO document GATS/SC/46. 
37 Respectively, WTO documents GATS/S C/46/Suppl.2 and GATS/SC/46/Suppl.3. 
38 Japan's Schedule refers to "new services" other th an those recognized owing to the circumstances at 
the time of entry into force of the Agreement by the Government of Japan.  It notes that any services classified positively and explicitly in JSIC or CPC at the time of entry into force of the Agreement should have been recognized by the Government of Japan at that time.  Moreover, Japan reserves the right to adopt or maintain any measure relating to the supply of services in any mode of supply in which those services were not technically feasible at the time of entry into force of the Agreement. 
39 In particular in relation with machine repair rela ted to nuclear energy, services incidental to energy 
distribution (transmission services on  a fee or contract basis of electricity), specified radioactive waste final 
disposal services, and transportation services of natural gas on a fee or contract basis. WT/REG309/1/Rev.1 
 
- 24 - 
 
  4.24.  Under the GATS, Japan's horizontal limitati ons cover essentially mode 4, which is unbound 
except for measures concerning the entry and temporary stay of several categories of natural persons. Moreover, research and development subs idies are also registered by Japan as unbound 
for modes 3 and 4. Under the Agreement, Japan does not make reservations applicable to all 
sectors for existing measures. It however registers some reservations applicable to all sectors, 
related to future bilateral and multilateral agreement and to new services. 
4.4.2  Peru's liberalization commitments 
4.25.  In its GATS schedule, Peru has made commitments in 42 out of 155 services sectors, 
essentially in mode 3, with some commitments in modes 1, 2, and - to a limited extent - 4, in telecommunications, and some insurance subsectors.  
4.26.  Peru's GATS MFN exemptions cover measures implementing its reciprocal labour 
agreements or on dual nationality; land and sea transport measures taken in the Andean context; 
land transport measures implementing the Conven tion on International Land Transport, the law 
promoting Latin American artists interpreting Latin American themes and certain measures 
designed to ensure reciprocity for certain financial intermediation services. Under the Agreement, 
Peru takes MFN reservations on radio transmission services within border areas, subject to authorizations, for existing measures. MFN-related general reservations are also registered for 
future measures in all sectors, as in the case of  Japan, for any measure that accords differential 
treatment to countries under any bilateral or multilateral agreement in force on, or signed prior to, the date of entry into force of the Agreement. The granting of differential treatment is also 
reserved for future bilateral or multilateral agreements involving aviation, fisheries, or maritime 
matters, including salvage. Moreover, Peru reserves the right to adopt or maintain any measure 
according rights for the protection of indigenous, native and peasant communities, in matters related to fishing, cultural industries, audio-visual industries, social services, certain educational 
services, or in relation to the granting of a concession for the installation, operation and 
exploitation of public telecommunication services, as well as international land transportation of cargo or passengers in border areas. Future subsid ies or grants by the State are also registered by 
Peru as a reservation applicable to all sectors. 
4.27.  Under the GATS, Peru's horizontal limitations cover mainly modes 3 and 4 (the other modes 
not being covered in most cases) with limitations on the form and modalities applicable to commercial presence and foreign investment, including on the repatriation of capital by foreign 
companies established in Peru, as well as, inter alia , limitations of up to 20% on foreigners 
employed in enterprises established through foreign investment. Under the Agreement, Peru registers horizontal limitations, covering national  treatment, in addition to the above-mentioned 
MFN reservations, with regard to future subsidie s or grants provided by the State. A general 
limitation, applicable for all sectors, also requires, inter alia , that all employers in Peru, 
independently of their activity or nationality, sh all give preferential treatment to nationals when 
hiring its employees, and that a company established in Peru employs at least 80% of Peruvian 
staff, representing at least 70% of the total payr oll of the company. A general reservation, related 
to market access obligations, is also registered for future measures and is applicable to all sectors and subsectors except those which are listed, in sheet number 17 of Peru's Schedule (Annex 6, 
Part 2 of the Agreement). For each sector or subsector, for which Peru commits to ensure market 
access, limitations and applicable conditions are entered for each mode of supply. 
4.4.3  Sector specific commitments on trade in services 
4.28.  Structural differences between the GATS and the trade in services provisions of the 
Agreement have to be taken into account when considering this section.  
4.29.  Tables 4.1 and 4.2 below summarize the specific commitments made by the Parties under 
the Agreement (including the BIT, covering national treatment on mode 3, as incorporated into 
and made part of the Agreement), by main sect ors and subsectors, and compare them with the 
Parties' GATS Schedules. The Tables also indicate in which sector or subsector Parties have made reservations. Improvements in existing GATS  commitments are either a reduction of the 
limitations applicable to market access and/or national treatment, further sub-sectors in which 
                                                                                                                                               
40 The reservation is for fisheries wi thin the territorial sea, internal waters, exclusive economic zone and 
continental shelf. WT/REG309/1/Rev.1 
 
- 25 - 
 
  commitments are made, and/or addi tional commitments. Horizontal limitations recorded in GATS 
Schedules of Specific Commitments and reservations  covering all sectors registered in Annexes 5 
and 6 of the Agreement and Annexes I and II of  the BIT, as well as MFN reservations or 
exemptions, are, in principle, not captured in the following Tables but have been summarized in 
the previous section. Mode 4 commitments are also excluded from the Tables. 
4.30.  A more detailed examination of the Parties' sector-specific non-conforming measures that 
are different from their GATS commitments follows the Tables, which should also be read in 
conjunction with the Parties' Schedules in Anne xes 5 and 6 of the Agreement and Annexes I and II 
of the BIT. 
Table 4.1 Japan: comparison between the GA TS and Agreement specific commitments in 
trade in services  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-
conforming 
measure(s) Reservation(s)  
for future 
measures 
 
1. Business services     
A. Professional Services Partial Improved   
B. Computer and Related Services  Full Similar   
C. Research and Development Services  Partial Improved   
D. Real Estate Services  Partial Similar   
E. Rental/Leasing Servic es without Operators  Partial Improved   
F. Other Business Servic es Partial Improved   
2. Communication services      
A. Postal services --- Similar   
B. Courier services --- New   
C. Telecommunication services  Partial Improved   
D. Audio-visual services Partial Improved   
3. Construction and related engineering 
services      
A. General construction work for buildings Full Similar   
B. General construction work fo r civil Engineering Full Similar   
C. Installation and assembly work  Full Similar   
D. Building completion and finishing work  Full Similar   
E. Other Full Similar   
4. Distribution services     
A. Commission ag ents' services Partial Improved   
B. Wholesale trade services Partial  Improved   
C. Retailing services Partial  Improved   
D. Franchising Partial  Improved   
5. Education services     
A. Primary education services Partial Similar   
B. Secondary education services  Partial Similar   
C. Higher education services  Partial improved   
D. Adult education Full Similar   
E. Other education services  --- New   
6. Environmental services     
A. Sewage services Full Similar   
B. Refuse disposal services Partial improved   
C. Sanitation and similar services  Full Similar   
D. Other Full Similar   
7. Financial services     
A. All insurance and insu rance-related services  Partial Similar   
B. Banking and other financia l services Partial Improved   
8. Health related and social services     
A. Hospital services Partial Similar   
B. Other Human Health Services --- Similar   
C. Social Services --- Similar   
D. Other --- Similar   
9. Tourism and travel related services      
A. Hotels and restaurants (including catering) Full Similar   
B. Travel agencies and tour oper ators services Full Similar   
C. Tourist guides services Full Similar   WT/REG309/1/Rev.1 
 
- 26 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-
conforming 
measure(s) Reservation(s)  
for future 
measures 
 
10. Recreational and cultural and sporting 
services     
A. Entertainment services Full Similar   
B. News agency services Full Similar   
C. Libraries, archives, museums and other 
cultural services Full Similar   
D. Sporting and other recreational services  Full Similar   
11. Transport services      
A. Maritime Transport Services Partial Improved   
B. Internal Waterways Transport Partial Improved   
C. Air Transport Services Partial Improved   
D. Space Transport  --- New   
E. Rail Transport Services Partial Improved   
F. Road Transport Services Partial Improved   
G. Pipeline Transport  Partial Improved   
H. Services auxiliary to all modes of transport  Partial Improved   
I. Other Transport Se rvices  --- New   
 
Table 4.2 Peru: comparison between the GATS and the Agreement specific commitments 
in trade in services  
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-
conforming 
measure(s) Reservation(s)  
for future 
measures 
 
1. Business services     
A. Professional Services Partial Improved   
B. Computer and Related Services  --- New   
C. Research and Development Services  --- New   
D. Real Estate Services  --- New   
E. Rental/Leasing Servic es without Operators  Partial Improved   
F. Other Business Servic es Partial Improved   
2. Communication services      
A. Postal services --- New   
B. Courier services --- New   
C. Telecommunication services  Partial Improved   
D. Audiovisual services --- New   
3. Construction and related engineering 
services      
A. General construction work for buildings --- New   
B. General construction work fo r civil Engineering --- New   
C. Installation and assembly work  --- New   
D. Building completion and finishing work  --- New   
E. Other --- New   
4. Distribution services     
A. Commission ag ents' services --- improved   
B. Wholesale trade services Partial improved   
C. Retailing services Partial improved   
D. Franchising --- improved   
5. Education services     
A. Primary education services --- New   
B. Secondary education services  --- New   
C. Higher education services  --- New   
D. Adult education --- New   
E. Other education services  --- New   
6. Environmental services     
A. Sewage services --- New   
B. Refuse disposal services --- New   
C. Sanitation and similar services  --- New   
D. Other --- New   
7. Financial services     
A. All insurance and insu rance-related services  Partial  
Similar   WT/REG309/1/Rev.1 
 
- 27 - 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments  Compared 
to the 
GATS Existing  
non-
conforming 
measure(s) Reservation(s)  
for future 
measures 
 
B. Banking and other financia l services Partial improved   
8. Health related and social services     
A. Hospital services --- New   
B. Other Human Health Services --- New   
C. Social Services --- New   
D. Other --- New   
9. Tourism and travel related services      
A. Hotels and restaurants (including catering) Partial Improved   
B. Travel agencies and tour operat ors services Partial Improved   
C. Tourist guides services --- New   
10. Recreational and cultural and sporting 
services     
A. Entertainment services Partial Improved   
B. News agency services --- Improved   
C. Libraries, archives, museums and other 
cultural services --- Improved   
D. Sporting and other recreation al services  Partial Improved   
11. Transport services      
A. Maritime Transport Services Partial Improved   
B. Internal Waterways Transport Partial Improved   
C. Air Transport Services --- New   
D. Space Transport  --- New   
E. Rail Transport Services --- New   
F. Road Transport Services --- New   
G. Pipeline Transport  --- New   
H. Services auxiliary to all modes of transport  --- New   
I. Other Transport Se rvices  --- New   
Note:   
Partial: GATS commitments subject to some limitation(s ) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes (excluding "unbound" due to lack of technical feasibility) 
---: No commitments under GATS. New: New commitments made under the Agreement and the BIT (Full or partial, with or without 
limitations). "New" can always  be seen as "improved". 
Improved: Overall improved commit ments made under the Agreement and the BIT as compared to those 
under the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly with limited improvements and/or 
limited additional reservations. 
: Reservation listed under the FTA (including the BIT) Party's Schedule (existing or future 
non-conforming measures). 
 Source:  Draft Consol idated GATS Schedule of Specific Comm itments (S/DCS/W/JPN), prepared by the 
Secretariat (in 2003) and Japan's Schedule annexed to the Agreement.  
 
4.4.3.1  Business services 
4.31.  Japan builds on its GATS commitments and extends coverage to sub-sectors not previously 
covered in its GATS Schedule, particularly for some professional services, R&D services, rental and 
leasing services, as well as some other business services. In the Agreement, Japan also registers 
non-conforming measures for existing measures for some professional services, real estate 
services, and in a number of other business services, which either replicate limitations in Japan's 
GATS Schedules or reduce the number and extent of such limitations. In relation with placement 
and supply services of personnel, as well as some maintenance and repair of equipment, Japan registers non-conforming measures which differ from limitations introduced under the GATS. Such 
reservations are, however, applicable only to the extent the measures are not inconsistent with 
Japan's GATS commitments. Japan reserves its right to take future measures in services incidental to fishing, manufacturing, and energy distribution  - three sub-sectors not covered under GATS - as 
well as in some services related to placement and supply services of personnel. 
4.32.  Peru covered some sub-sectors under the GATS. Under the Agreement, the whole sector is 
covered and limitations are registered, for exis ting non-conforming measures, for some legal WT/REG309/1/Rev.1 
 
- 28 - 
 
  services, auditing and architectural services, R&D services, advertising services, services incidental 
to fishing, energy distribution, and investigation and security; as well as, for future measures, in taxation services, services incidental to fishing and printing and publishing. 
4.4.3.2  Communication services 
4.33.  Japan builds on its GATS commitments and extends coverage to sub-sectors not previously 
covered in its GATS Schedule, particularly for postal and courier services and some audio-visual sub-sectors. It, however, makes some reservat ions for postal, telegraph, and broadcasting 
services sectors which are unbound under the GATS.  
4.34.  Peru has covered, under the GATS, some telecommunication services only. Under the 
Agreement, it expands coverage to postal and courier services, additional sub-sectors under telecommunication services, as well as audio-visual services. Peru registers, however, limitations 
for future measures in telecommunication services, particularly on call-back services (as under the 
GATS), as well as on audio-visual services (through a "cultural" reservation), including broadcasting. 
4.35.  A summary of Chapter 8 of the Agreement, which contain certain disciplines specific to 
telecommunication, is provided in the following section of this factual presentation. 
4.4.3.3  Construction and related engineering services 
4.36.  Japan registers, in Annex 5, a market acce ss and local presence reservation for construction 
and equipment installation work, which only partly mirrors the limitations scheduled under the GATS (none for modes 2 and 3, and unbound for mode 1 - due to the lack of feasibility - and partly for mode 4). Japan introduces limitations to market access and local presence by requiring 
permission to be obtained for persons intending to  conduct construction business in Japan, as well 
as establishment and registration in Japan for persons intending to conduct demolition work business, two requirements not listed as limitations in Japan's GATS Schedule. Other limitations in 
Japan's GATS Schedule are however dropped under the Agreement.  
4.37.  No commitments were made by Peru under the GATS. Under the Agreement, it covers the 
sector without reservations.  
4.4.3.4  Distribution services 
4.38.  Japan improves its GATS commitments und er the Agreement, although maintaining some 
limitations on commission agent services, wholesale trade services and retailing services.  
4.39.  Peru has included part of this sector under the GATS. Under the Agreement, it covers the 
whole sector without reservations.  
 
4.4.3.5  Educational services 
4.40.  Compared to Japan's GATS commitments, under the Agreement, Japan improves its 
commitments with regard to higher education services, though with a restriction on market access and local presence. 
4.41.  Peru has not taken any commitment under the GATS for this sector. Under the Agreement, 
it makes several reservations for future measures in the sector, which is however fully covered.  
4.4.3.6  Environmental services 4.42.  Japan does not register any existing non-conforming measures under the Agreement. It 
however lists specified radioactive waste final disposal services as a subsector for which it has 
reserved the right to adopt or maintain any measure. 
4.43.  Under the Agreement, though Peru introduces a reservation for future measures related to 
sewage services, the rest of the sector (unbound  under GATS) is covered without any limitations. WT/REG309/1/Rev.1 
 
- 29 - 
 
  4.4.3.7  Financial services 
4.44.  While Japan broadly matches its GATS commitments in insurance and insurance-related 
services, under the Agreement, it slightly improves the extent of its coverage in banking and other financial services, though Japan reserves the right to adopt or maintain any measures with respect 
to cross-border trade in financial services.  
4.45.  For Peru, the financial services sector is bound with limitations under the GATS. Under the 
Agreement, Peru registers existing non-conforming  measures in relation with certain forms of 
asset management and certain types of advisory and other auxiliary financial services. Moreover, 
like Japan, it introduces a reservation for future measures for several specified financial services activities. 
4.46.  A summary of Annex 7 to the Agreement, which contain certain disciplines specific to 
financial services, is provided in the following section of this factual presentation. 
4.4.3.8  Health related and social services 4.47.  This sector is only partly covered by Japan's commitments under the GATS. Under the 
Agreement, Japan has introduced a reservatio n for future measures under this sector. 
4.48.  The whole sector, which is unbound under the GATS, is covered by the Agreement, though 
Peru introduces a sector-wide reservation for future measures. 
4.4.3.9  Tourism and Travel related services 
4.49.  Under the GATS, Japan has fully covered the sector for modes 2 and 3. Under the 
Agreement, Japan makes full commitments, without any limitations.  
4.50.  Peru took commitments under the GATS in relation with hotels and restaurants and travel 
agencies and tour operators services. Under the Ag reement, the whole sector is covered with no 
limitations.  
4.4.3.10  Recreational, cultural and sporting services 
4.51.  While the whole sector is covered under the GATS, without limitations for modes 2 and 3, 
under the Agreement, Japan expands the coverage in terms of modes of supply but introduces a limitation related to national treatment, mark et access, and local presence for betting and 
gambling, inter alia , in the context of privatization. 
4.52.  Peru's commitments under the GATS only  cover some aspects of sporting and other 
recreational services. Under the Agreement, the whole sector is covered although with 
reservations on existing measures for certain entertainment services and sporting and other 
recreational services. Peru also reserves futures measures related to, inter alia  culture-related 
services.  
4.4.3.11  Transport services 
4.53.  A number of air transport services are ex cluded, from the outset, from the Agreement. 
4.54.  While Japan covers only some sub-sectors under the GATS, the whole sector is covered in 
the Agreement. Japan, nevertheless registers a number of non-conforming measures, inter alia , in 
maritime transport services, some air transp ort services, and road transport services. 
4.55.  Peru's specific commitments in the GATS  are limited to passenger transportation (for 
maritime transport services and internal waterway s transport). Under the Agreement, Peru covers 
the entire sector, with reservations covering futu re measures in maritime and internal waterways 
transports as well as certain road transport services. On services related to passenger 
transportation (maritime transport services and in ternal waterways transport) while referring to 
the same legislation, certain measures are described differently than in Peru's list of GATS specific 
commitments, making a comparison difficult. Peru also reserves measures in freight transportation WT/REG309/1/Rev.1 
 
- 30 - 
 
  (for maritime transport services, and road transport), support services for road transport services, 
and certain services auxiliary to all modes of  transport (storage and warehouse services). 
4.5  Sector specific provisions in services 4.56.  In addition to the provisions contained in  Chapter 7 of the Agreement on cross-border trade 
in services, the Agreement establishes specific disciplines for telecommunication services 
(Chapter 8) and for financial services (Annex 7 to the Agreement). 
4.5.1  Telecommunication services  
4.57.  In relation with telecommunication services, Chapter 8 of the Agreement contains disciplines 
applicable to measures adopted or maintained by a Party relating to access to, use of, and obligations of suppliers of, as well as other measures relating to public telecommunications transport networks and services. Chapter 8 includes additional commitments on basic 
telecommunication contained in the Reference Paper attached to the Parties' WTO specific 
commitments on basic telecommunications. Chapter 8 covers topics such as access and use (Article 118), number portability (Article 119), competitive safeguards (Article 120), treatment by 
major suppliers (Article 121), resale (Article 122), interconnection (Article 123), provisioning and 
pricing of leased circuit services (Article 124), independent telecommunications regulatory body (Article 125), universal service (Article 126), public availability of licensing criteria (Article 127), 
allocation and use of scarce resources (Article 128), transparency (Article 129), settlement of 
telecommunications disputes (Article 130), and relation to international organizations (Article 131). In the event of any inconsistency between Chapter 8 and other chapters of the Agreement, Chapter 8 on telecommunication se rvices shall prevail to the extent of the 
inconsistency, with some exceptions. Chapter 8 does not apply to measures by a Party affecting 
broadcasting services, including cable distribution of radio and television programming. 
4.5.2  Financial services  
4.58.  Annex 7 to the Agreement contains supplementary provisions to Chapter 7 on measures by 
a Party affecting trade in financial services. Annex 7 builds on the disciplines contained in the Annex on financial services negotiated under the auspices of the WTO and goes further by 
expanding the coverage of commitments. The Parties may also adopt or maintain measures for 
prudential reasons (Article 8 of Annex7 and part of the chapeau introducing the Parties Schedules in Annexes 5 and 6). Additional reservations applic able to Peru are contained in the Appendix to 
Annex 7, which clarifies that Chapter 7 on cross-border trade in services and Annex 7 on financial 
services does not apply, for Peru, to banking and other financial services (excluding insurance) to 
the extent that Peru reserves such activities or services for the Government, a public entity or a 
financial service supplier and that are not supplied in competition with another financial services 
supplier; or in cases where the supply of such activities are reserved. Annex 7 must be read in 
conjunction with the specific commitments made by the Parties and the non-conforming measures listed in Annexes 5 and 6 of the Agreement and br iefly presented in the previous section of this 
factual presentation. 
4.6  Regulatory provisions  4.6.1  Domestic regulation 4.59.  Article 111 contains disciplines on domestic regulations applicable where a Party requires 
authorization for the supply of a service. It lists conditions to be met relating to qualification 
requirements and procedures, technical standards and licensing requirements of service suppliers 
of the other Party, in order to ensure that the measures adopted or maintained by a Party do not 
constitute an unnecessary barrier to trade in services. These commitments are binding upon a 
Party only in sectors in which it has undertaken specific commitments in its GATS Schedule. The Parties however agreed to also apply these conditions, to the extent possible, to the sectors where 
a Party has not undertaken specific commitments under the GATS. 
4.60.  The Parties also affirm their commitments with respect to the development of any necessary 
disciplines pursuant to paragraph 4 of Article VI of the GATS. Should any such disciplines be WT/REG309/1/Rev.1 
 
- 31 - 
 
  adopted by the WTO Members, the Parties shall revi ew them jointly with a view to incorporating 
them into Chapter 7 of the Agreement, as appropriate. 
4.6.2  Recognition 4.61.  Article 112 of the Agreement covers recognition. A Party may recognize the education or 
experience obtained, requirements met, or licences or certifications granted in a particular country. 
Such recognition, through harmonization or otherw ise, may be agreed with the country concerned 
or may be accorded autonomously. The commitments on MFN treatment (Article 105) shall not 
require the Parties to accord such recognition to the education or experience obtained, 
requirements met, or licences or certifications granted in the other Party. However, a Party that is a party to an agreement or arrangement with a no n-Party shall afford adeq uate opportunity for the 
other Party, if that other Party is interested, to negotiate its accession to such an agreement or 
arrangement, or to negotiate one comparable with it. In case recognition is accorded 
autonomously by a Party to a non-Party, adequate opportunity should be afforded to the other Party to demonstrate that education or experience obtained, requirement met or licences or 
certifications granted in that other Party should also be recognized. Recognition shall not be 
accorded by a Party in a manner that would constitute a means of discrimination between countries, or a disguised restriction on cross-border trade in services.  
4.6.3  Subsidies 
4.62.  Each Party shall promptly and at least annually inform the other Party of the introduction of 
any new subsidy or grant which significantly affects trade in services covered by its specific commitments under the GATS. If a Party considers that a subsidy adversely affects it, 
consultations with the other Party may be requested (Article 103).  
4.63.  If the results of multilateral negotiations on paragraph 1 of Article XV of the GATS enter into 
force for the Parties, the Parties shall jointly review the results and incorporate them, as 
appropriate, into the Agreement. 
4.6.4  Safeguards 4.64.  Temporary safeguard measures are allowe d by the Agreement, in the event of serious 
balance-of-payments and external financial difficulties or threat thereof, or in cases where 
movements of capital cause or threaten to cause serious difficulties for macroeconomic management, in accordance with Article XII of the GATS (Article 13).  
5  GENERAL PROVISIONS OF THE AGREEMENT 
5.1  Transparency 
5.1.  Publication obligations applicable to the Parties are contained in Article 5 (Transparency) and 
cover laws, regulations, administrative procedures rulings and judicial decisions of general 
application as well as international agreement to which the Parties are a party, which pertain to or 
affect the operation of the Agreement. The Agre ement foresees a best endeavour to provide an 
opportunity for comments from the public on any regulation of general application that affects any 
matter covered by the Agreement (Article 6). Arti cle 7 addresses the protection of confidential 
information exchanged between the Parties (Article 7). 
5.2  Current payments and capital movements 5.2.  All transfers and payments shall be freel y allowed between the Parties relating to the 
cross-border supply of services (Article 113). A Party may, however, prevent or delay a transfer or 
payment through the equitable, non-discriminatory and good faith application of its laws relating to (i) bankruptcy, insolvency or the protection of the rights of creditors; (ii) issuing, trading or 
dealing in securities, futures, options or derivative s; (iii) financial reporting or record keeping of 
transfers when necessary to assist law enforcement or financial regulatory authorities; (iv) criminal or penal offences; or (v) ensuring compliance with orders of judgements in judicial or 
administrative proceedings. The rights and obligat ions of the Parties as members of the IMF are 
reserved.  WT/REG309/1/Rev.1 
 
- 32 - 
 
  5.3  Exceptions 
5.3.  On general exceptions, for purposes of Ch apters 2 through 6, Article XX of the GATT 1994, 
and, for purposes of Chapters 7 through 9, Article XIV of the GATS are incorporated into and made part of the Agreement, mutatis mutandis (Article 10). 
5.4.  On security exceptions, for purposes of Chapters 2 through 6, Article XXI of the GATT 1994, 
and, for purposes of Chapters 7 through 9, Article XIV bis of the GATS are also incorporated and 
made part of the Agreement, mutatis mutandis (Article 11). 
5.5.  The rights and obligations of the Parties under the WTO Agreement shall not be affected by 
Article 12 on taxation. This Article specifies that nothing in the Agreement shall apply to taxation measures except the provisions of paragraphs 1 and 2 of Article 5 (on transparency), and paragraph 1 of Article 7 (on the protection of confidential information).  
5.4  Accession and Withdrawal 
5.6.  The Agreement does not contain any accessi on clause. Withdrawal is however regulated by 
the terms of Article 224, establishing that the Agreement may be terminated one year after a 
Party has given written notification of its intention to terminate it. 
5.5  Government procurement 5.7.  Government procurement is covered by Chapter 10 of the Agreement, which applies to 
goods, services and construction services specifie d in Annex 9 of the Agreement. Annex 9 also lists 
the procuring entities to which the disciplines are applicable, as well as the threshold value of the 
contracts above which the rules contained in Chapter 10 apply
41, and the goods and services to 
which Chapter 10 is applicable. In the case of Japan, which is a Party to the plurilateral Agreement 
on Government Procurement (GPA) negotiated un der the auspices of the WTO, the thresholds 
indicated in the Agreement42 mirror the one contained in Japan's Annexes 1, 2, and 3 of the GPA. 
Peru is not a signatory of the GPA. Table 5.1 summarizes the different thresholds applicable to 
Japan and Peru in the context of their commitm ents contained in Annex 9 of the Agreement. 
Table 5.1 Respective Thresholds for Japan an d Peru - valued expressed in SDR (Special 
Drawing Rights) 
 Annex 9, Section 1  Annex 9, Section 2  Annex 9, Section 3  
 Goods Services 
except 
constructio
n services Construct-
ion 
services Goods  Services 
except 
construct
-ion 
services Construction 
services Goods Services 
except 
construct
-ion 
services Construction 
services Japan 130,000 130,000 4,500,000 
 
Architectural 
services: 
450,000 200,000 200,000 15,000,000 
 
Architectural 
services: 
1,500,000 130,000 130,000 4,500,000 or 
15,000,000 
Architectural 
services: 
450,000 Peru 130,000 130,000 5,000,000 
Architectural 
services: 
450,000 200,000 200,000 15,000,000 
Architectural 
services: 
1,500,000 160,000 160,000 15,000,000 
Architectural 
services: 
450,000 
 
Section 1 (corresponding to Annex 1 of the GPA): Central government entities. 
Section 2 (corresponding to Annex 2 of the GPA): Sub-central government entities. Section 3 (corresponding to Annex 3 of the GPA): All other entities which procure in accordance with the 
Agreement, in general public  enterprises or public authorities such as utilities. 
GPA: Government Procurement Agreement negotiated under the auspices of the WTO.  
                                               
41 Article 147 clarifies how the value of contracts shall be determined. Offsets, as defined in Article 148, 
are also prohibited. 
42 Thresholds are expressed in Special Drawin g Rights (SDR) both for Japan and for Peru. WT/REG309/1/Rev.1 
 
- 33 - 
 
  5.8.  Rectifications or modifications relating to Annex 9 shall be notified by a Party to the other 
Party, and consultations shall take place between th e Parties in case of an objection by one Party 
to a proposed rectification or modifi cation by the other (Article 162).  
5.9.  A Party may deny the benefits of Chapter 10 to an enterprise of the other Party if the 
enterprise is owned or controlled by persons of  a non-Party, and the former Party (i) does not 
maintain diplomatic relations with the non-Party; or (ii) adopts or maintains measures with respect to the non-party that prohibit transactions with the enterprise of that would be violated or 
circumvented if the benefits of Chapter 10 were ac corded to the enterprise (Article 164). Denial of 
benefits may also take place in relation to an enterprise of the other Party controlled by persons of a non-party and not having substantial business activities in the Area of the other Party.  
5.10.  The Parties grant each other national treatment with respect to any measures regarding 
government procurement covered by Chapter 10 (Article 145).  
5.11.  The rules of origin applicable for government procurement shall not be different from those 
applied by the Parties in the normal course of trade (Article 146). 
5.12.  The Agreement defines standards and modalities applicable to matters such as technical 
specifications, tendering procedures, notice of intended procurement, notice of planned procurement, time-limits for tendering, tender documentation, awarding of contracts, and limited 
tendering (Articles 149 through 157). Opportunities for government procurement to be undertaken 
through the Internet or a comparable compute-based telecommunications network shall be sought by the Parties (Article 160).  
5.13.  The Parties shall ensure transparency in relation with the government procurement covered 
by the Agreement
43 (Article 158) and shall provide for challenge procedures (Article 159). 
5.14.  Chapter 10 shall not apply to a procuring entity which has undergone privatization - 
compensation not needing to be proposed -, notwithstanding continued government holding 
thereof or appointment of members of the board of directors thereto (Article 163). 
5.15.  The Parties agree to enter into negotiations in case a Party offers a non-Party, after the 
entry into force of the Agreement, additional ad vantages of access to its government procurement 
market beyond that provided to the other Party under Chapter 10 (Article 165).  
5.16.  A Sub-Committee is established for the effective implementation and operation of 
Chapter 10 (Article 166). 
5.6  Intellectual property rights 
5.17.  Chapter 11 of the Agreement covers Intellectual Property Rights. The Parties reaffirm their 
existing rights and obligations under the TRIP S Agreement, and other multilateral agreements 
related to IPR to which they are both party, in cluding those concluded under the auspices of the 
WIPO. Nothing in Chapter 11 shall derogate from their existing rights and obligations under the 
TRIPS Agreement or other multilateral agreements related to IPR to which they are both party (Article 167). The IPR provisions of the Agreement are also to be interpreted and implemented in a 
manner supportive of the Parties' rights to take measures to protect public health in accordance 
with the TRIPS Agreement and the decisions by the WTO Ministerial Conference or the General 
Council, related to the TRIPS Agreement and public health (Article 188). 
5.18.  National treatment and MFN treatment shall be provided in accordance with Articles 3, 4 
and 5 of the TRIPS Agreement (Article 168 and 169). 
5.19.  The Parties shall endeavour to streamline its administrative procedures concerning 
intellectual property and use an international classification for patents, utility models and 
trademarks (Article 170). Further, the Parties shall ensure that the procedures, subject to 
compliance with the substantive conditions for acquisition of the right, are conducive to the 
                                               
43 Article 161 foresees a number of exceptions related, inter alia , to the disclosure of certain 
information. WT/REG309/1/Rev.1 
 
- 34 - 
 
  g r a n t i n g  o r  r e g i s t r a t i o n  o f  I P R s  w i t h i n  a  r e a s o n a b l e  p e r i o d  o f  t i m e  s o  a s  t o  a v o i d  u n w a r r a n t e d  
curtailment of the period of protection (Article 171). 
5.20.  Systems for the registration of trademarks44, industrial designs and patents45 shall be 
provided for by the Parties along the modalities defined in Article 171.  
5.21.  The Parties commit to ensure transparency  (Article 172), and to promote public awareness 
concerning protection of intellectual property (Article 173). 
5.22.  On Patent protection, each Party shall ensure that any application for a patent is not 
rejected solely on the grounds that the subject matter claimed in the application is related to a 
computer programme. Nevertheless, the Parties maintain their autonomy to exclude from 
patentability computer programmes (Article 174). On Industrial designs, the Agreement clarifies that the registrability of the industrial design may be considered by the competent authority based 
on the design of a part of an article instead of that of the whole article (Article 175). On 
Trademarks, the Agreement particularly addresses e ligibility for registration of signs, such as 
words including personal names, letters, numeral s, figurative elements, and combinations of 
colours. Where signs are not inherently capable of distinguishing the relevant goods or services, 
each Party may make registratiblity dependant on distinctiveness acquired through use. Well-known marks shall be protected in accordance with  Article 6bis of the 1967 Paris Convention for 
the protection of industrial property (Article  176). On Copyrights, the Agreement reaffirms the 
Parties' existing rights and obligations under the Berne Convention for the protection of literary and artistic works, the Rome convention for the protection of performers, producers or phonograms and broadcasting organization, the WIPO copyright treaty, and the WIPO performance 
and phonograms treaty (Article 178). The protection of Geographical Indications (GI) is covered by 
Article 177 and Annex 10 of the Agreement and calls for ensuring adequate and effective protection for GIs, in accordance with the TRIPS Agreement. Annex 10 identifies goods as 
originating in Japan, or Peru, where a given quality,  reputation or other characteristic of the good 
is essentially attributable to its geographical origin and is protected as a GI within the meaning of paragraph 1 of Article 22 of the TRIPS Agreement under their respective laws and regulations.  
5.23.  On the occasion of the signing of the Agreement, Japan and Peru also adopted a Joint 
Statement on Biodiversity, Access to Genetic Resources and Traditional Knowledge, which states that they, inter alia , reaffirm the importance of certain provisions in the Convention on Biological 
Diversity
46, and will endeavour to seek ways to share information that may have a bearing on the 
patentability of inventions based on genetic resources or traditional knowledge associated with 
genetic resources, with a view to promoting quality patent examination to ensure the conditions of patentability are satisfied. The Parties also establish that the Joint Statement does not prejudice 
on-going negotiations and their outcome in other for a in which both sides are participating. 
5.24.  The protection of undisclosed information sh all be ensured by the Parties in accordance with 
Article 39 of the TRIPS Agreement (Article 179), and each Party shall provide for effective 
protection against acts of unfair competition in accordance with Article 10 bis of the Paris 
Convention (Article 180). 
5.25.  Disciplines on enforcement are contained in Articles 181 to 184 and cover, inter alia , border 
measures, as well as civil and criminal remedies. 
5.26.  Each Party shall establish a legal framework fo r the limitation of liabilities of internet service 
providers (ISPs) for the purposes of encouraging ISPs to delete from their servers materials infringing copyright and related rights (Article 185). 
5.27.  Co-operation between the Parties shall be sought, and, for the purposes of the effective 
implementation and operation of Chapter 11, a Su b-Committee on Intellectual Property Rights is 
established (Articles 186 and 187). 
                                               
44 A classification of goods and services in accordance with the Nice Agreement concerning the 
international classification of goods and services for the purposes of the registration of marks, of 15 June 1957, 
as amended, shall be used. 
45 A classification for patents and utility models shall be used in accordance with the Strasbourg 
Agreement concerning the international patent classification, of March 24, 1971, as amended. 
46 Particularly Article 15 (paragraphs 2, 5 and 7) and Article 8 (subparagraph (j)). WT/REG309/1/Rev.1 
 
- 35 - 
 
  5.7  Other 
5.7.1  Competition 5.28.  Chapter 12 of the Agreement covers competit ion. Each Party shall, in accordance with its 
laws and regulations, which shall be applied in a non-discriminatory manner, take measures that it 
considers appropriate against anticompetitive activities
47, in order to facilitate trade and 
investment flows between the Parties through the e fficient functioning of its markets. The Parties 
agree to cooperate on controlling anticompetitiv e activities, to implement administrative and 
judicial procedures in a fair manner to control anticompetitive activities, and to promote 
transparency of the implementation of their comp etition laws and regulation and their competition 
policy. 
5.29.  Chapter 2 of the Implementing Agreement complements the provisions contained in 
Chapter 12 of the Agreement itself, and in particular provides for the details and procedures 
concerning the implementation of the co-operation set forth in Article 190.  
5.7.2  Improvement of the business environment 
5.30.  Chapter 13 of the Agreement establishes a Sub-Committee on improvement of the business 
environment as well as Liaison Offices in each Party. 
5.7.3  Cooperation 
5.31.  In Chapter 14 of the Agreement the Part ies agree to promote co-operation under the 
Agreement for their mutual benefit, in order to liberalize and facilitate trade and investment between them and to promote the well-being of thei r peoples. The following fields of co-operation 
are identified: trade and investment promotion; industry; fisheries; science and technology and 
environment; information and communications technology; tourism; agriculture; transport; and 
other fields to be mutually agreed by the Parties (Article 200). Further details on the areas of co-operation are contained in Chapter 3 of the Implementing Agreement (Article 201). 
5.32.  A Sub-Committee on Co-operation is established for the purposes of the effective 
implementation and operation of Chapter 14. 
5.7.4  Trade and environment 
5.33.  On the occasion of the signing of the Ag reement, the Parties adopted a Joint Statement on 
Trade and Environment which reaffirms their commitment, inter alia , to provide, in their respective 
laws and regulation, for high levels of environmen tal protection and recognizes the right of each 
Government to establish its own levels of domestic environmental policies and priorities. Japan and 
Peru also reaffirm their commitments to the Convention on Biological Diversity and the UN 
Framework Convention on Climate Change. They en deavour to promote, within their respective 
capacities and resources, the measures in the area s identified in the Joint Statement on Enhanced 
Co-operation in Environment and Climate Change Issues signed between the Japan and Peru in 
2008, including those to mitigate the effects of and adapt to climate change. 
5.8  Institutional framework 
5.34.  A Commission, meeting on an annual basis unless the Parties agree otherwise, is 
established, inter alia , to review and monitor the implementation and operation of the Agreement, 
endeavour to resolve disputes between the Parties about any matter concerning the interpretation or application of the Agreement, and supervise and coordinate the work of all Sub-Committees 
established under the Agreement (Article 14). 
5.35.  The institutional framework established und er the Agreement is summarized in Chart 5.1. 
                                               
47 "Anticompetitive activities" means any conduct or transaction that may be subject to penalties or 
relief under the competition laws and regulations of the respective Parties (Article 189, paragraph 2). WT/REG309/1/Rev.1 
 
- 36 - 
 
  Chart 5.1 Institutional Framework 
 
5.9  Dispute settlement 
5.36.  Chapter 15 of the Agreement establishes dispute settlement procedures for the avoidance 
and settlement of disputes between the Parties rega rding the interpretation or application of the 
Agreement. The mechanism is however not applicable to Chapters 5 (SPS), 6 (TBT), 12 (Competition), 13 (Improvement of the business environment), and 14 (Co-operation). 
5.37.  The Parties shall at all times endeavour to agree on the interpretation or application of the 
Agreement, and shall make every attempt, inter alia , through co-operation to arrive at a prompt 
and mutually satisfactory resolution of divergence s they may have. Good offices, conciliation, or 
mediation may also be requested at any time by either Party. 
5.38.  Article 207 provides for "forum shopping". Once the complaining Party has requested the 
establishment of an arbitral tribunal under the Agreement or another international agreement to 
which both Parties are party, including the WTO Agreement, with respect to a particular dispute, 
that forum selected shall be used to the exclusio n of any other forum for that particular dispute. 
5.39.  Chapter 15 defines the steps in the process for dispute settlement under the Agreement-
specific dispute settlement mechanism, which is largely based on and to a large extent similar to 
the WTO Dispute Settlement Understanding. The salient features of the process can be 
summarized as follows. If the Parties fail to find a solution to a disputed matter through consultations (Article 208), the complaining Part y may request the establishment of an Arbitral 
Tribunal to consider the matter (Articles 209 through 212). The proceedings of the Arbitral 
Tribunal, including hearings, are described in Article 213. On the request of either Party or on its own initiative, the Arbitral Tribunal may seek information from any relevant source and may 
consult experts to obtain their opinion on certain aspects of the matter concerned (Article 214). 
Within 90 days (or 60 days in case of urgency), after the date of its establishment, the Arbitral Tribunal shall submit to the Parties its draft award, for review. The final award shall be issued Commission (Art. 14)  
Source: WTO Secretariat based on the Agreement. Liaison Offices  Arbitral Tribunal(s) (Art. 209) 
Sub-Committee on Trade in Goods (Art. 37 ) 
Sub-Committee on rules of Ori gin (Art. 69 ) 
Sub-Committee on Customs Procedures  and Trade Facilitation (Art 85)  
Sub-Committee on SPS Measures (Art. 89 ) 
Sub-Committee on Technical Regula tions, Standards and Conformity 
Assessment Procedures (Art. 99) 
Sub-Committee on Gove rnment Procurement (Art. 166 ) 
Sub-Committee on Intellectual Property Rights (Art. 187) 
Sub-Committee on Entry and Temporar y Stay of Nationals for Business 
Purposes (Art. 138) Contact Points 
Sub-Committee on Co-o peration (Art. 203 ) 
Sub-Committee on Improvement of the Business Environment (Art 96)  WT/REG309/1/Rev.1 
 
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  within 30 days after the date of submission of th e draft award. The final award shall be binding for 
the Parties. 
5.40.  The award shall be promptly implemented by  the Parties. In any case, within 30 days after 
it has been issued, the Party complained against shall notify the complaining Party of the period 
which it assesses to be reasonable and necessary in order to implement the award. Consultations 
between the Parties may be hold, if necessary, to decide on a mutually agreed period of time for the implementation. In case of disagreement, the matter may be referred to the Arbitral Tribunal. 
The implementation period should not exceed 15 months.  
5.41.  If the Party complained against considers that it is impractical to comply with the award 
within the implementation period, the Parties have to enter into consultations with a view to developing mutually satisfactory compensation or any alternative arrangement. If no such 
compensation or arrangement can been agreed to by the Parties, the complaining Party may notify 
the Party complained against of its intention to suspend the application of concessions or other obligations under the Agreement. In case of di sagreement between the Parties as to whether the 
Party complained against has complied with the award of the Arbitral Tribunal, either Party may 
refer the matter to the Arbitral Tribunal. If the Arbitral Tribunal to which the matter has been referred confirms that there is a failure to comply with the award, the complaining Party may, 
within 30 days, notify its intention to suspend the application of concessions or other obligations 
under the Agreement. Such suspension may only be implemented at least 30 days after the date 
of the notification of intention, and shall: (i) be temporary and discontinued when the Parties reach 
a mutually satisfactory resolution or where compliance with the award is effective, (ii) be restricted 
to the same level of nullification or impairment that is attributable to the failure to comply with the 
award, and (iii) be restricted to the same sector, or sectors to which the nullification or impairment related, unless it is not practical or effective to suspend the application of concessions or 
obligations in such sector or sectors. 
5.42.  Consultations may be requested if the requirements for the suspension have not been met. 
If the Parties fail to resolve the matter within 30 days, the Party complained against may refer the 
matter to an Arbitral Tribunal, which shall issue its award within 60 days. 
5.43.  The Dispute settlement mechanism of the Agreement applies mutatis mutandis with respect 
to the settlement of disputes between the Part ies arising out of the interpretation and/or 
application of Chapter 1 (Customs procedures and trade facilitation) and Chapter 4 
(Final provision) of the Implementing Agreement.  
5.44.  Chart 5.2 provides a synopsis of the dispute settlement process.  WT/REG309/1/Rev.1 
 
- 38 - 
 
  Chart 5.2 Specific Dispute Settlement Me chanism established by the Agreement 
 
 
 
5.45.  In addition to Chapter 15, a general provision, Article 8 (Review and Appeal) establishes that the Parties shall establish or maintain judicial tribunals or procedures for the purpose of the review and, where warranted, correction of administrative actions on matters covered by the 
Agreement. Each Party shall ensure that, in any such tribunals or procedures, the parties to the 
proceeding have the right to a reasonable oppo rtunity to support or defend their respective 
positions, and a decision based on the evidence and submissions of record or, where required by 
the domestic laws and regulations, the record compiled by the administrative authorities.  
5.10  Relationship with other agreements concluded by the Parties 5.46.  In Article 2, the Parties reaffirm their rights and obligations with respect to each other under 
the WTO Agreement or any other agreement to which both Parties are party. Consultation is 
foreseen in the event of any inconsistency between the Agreement and the WTO Agreement or any agreement to which both Parties are party, including the Agreement between Japan and the Republic of Peru for the Promotion, Protection an d Liberalization of Investment (BIT), signed in 
2008 by Peru and Japan, which is incorporated into and made part of the Agreement.
48 
5.47.  Table 5.2 lists all other regional trade ag reement (RTAs) notified and not notified to the 
GATT/WTO and in force to which Japan and Peru are Party. 
 
 
                                               
48 Except Article 24 (Joint Comm ittee) and 25 (Sub-committee on  Improvement of Investment 
Environment) of the BIT. Request for consultations and 
consultations (Art. 208) 
Request for the establishment of an 
Arbitral Tribunal (Art. 209) 
Proceedings (Art. 213)  
Issuance of Final Award of the 
Arbitral Tribunal (Art. 216.2-6) Draft Award to the Parties (Art. 216.1)  
Implementation Disagreement about compliance 
or Non-compliance (Art. 218.6) 
Consultations (Art. 218.5)  
Suspension of benefits  
(Art. 219 ) Non-Implementation 
Matter referred to the Arbitral 
Tribunal (Art. 218.6, 219) Compensation or alternative 
arrangement (Art. 218.5) 
In case of disagreement 
Implementation Non-Implementation WT/REG309/1/Rev.1 
 
- 39 - 
 
  Table 5.2 Japan and Peru: Participation in other RTAs (notified and non-notified in 
force), as of 15 April 2013* 
Partner / Agreement Date of 
entry 
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
JAPAN 
India 01.08.11 Goods & Services 2011 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 
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 
PERU  
European Union 01.03.13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
Panama 01.05.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Japan 01.03.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Mexico 01.02.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V 
Rep. of Korea 01.08.11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
EFTA 01.07.11 Goods 2011 GATT Art. XXIV 
China 01.03.10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Singapore 01.08.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Canada 01.08.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Chile 01.03.09 Goods & Services 2011 GATT Art. XXIV & GATS Art. V 
United States 01.02.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
Andean Community 25.05.88 Goods 1990 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
PTN 11.02.73  Goods 1971 Enabling Clause 
LAIA - Acc. of Panama 10.05.12 Goods Not notified 
Thailand 31.12.11 Goods Not notified 
Andean Community 14.12.06 Services Not notified 
MERCOSUR (AAP.CE N°58) 02.01.06** Goods Not notified 
Cuba (AAP.CE N°50) 09.03.01 Goods Not notified 
LAIA - Seeds (AAP.AG N°2) 21.08.95 Goods Not notified 
 
Source: WTO Secretariat.  LAIA: Latin American Integration Association. EFTA: European Free Trade Association. 
GSTP: Global System of Trade Prefer ences among developing countries. 
PTN: Protocol on Trade Negotiations.   WT/REG309/1/Rev.1 
 
- 40 - 
 
  AAP.CE: Economic Complementarity Agreements. 
AAP.AG: Agreements under Article 12 of the Mo ntevideo Treaty on Agricultural Goods. 
AR.CEYC: Agreements on Co-operation  and Exchange of Cultural Goods. 
* For those agreements negotiated under the LAIA frame work, the LAIA reference is  included in brackets. 
Details of these agreements can be found at http://www.aladi.org   
"Partial scope" agreements are those RTAs not providing for the establishment of a free-trade area and/or 
providing for a limited coverage. 
** For Peru – Brasil/Argentina/Uruguay: 02.01.06; For Peru-Paraguay: 06.02.06. 
 WT/REG309/1/Rev.1 
 
- 41 - 
 
  ANNEX 1 
INDICATORS OF TRADE LIBERALIZATION UNDER THE AGREEMENT 
The Japanese Market 
1. Annex Table A1.1 provides a comparison between preferential tariff rates for Japan's imports 
from Peru and MFN rates applied by Japan at the entry into force of the Agreement. Japan's 
average applied MFN rate in 2012 was 4.7%. Average tariffs on agricultural products were 11.2% 
and 3.3% on non-agricultural products. 41.6% of  Japan's tariff lines were already MFN duty-free 
tariff treatment in 2012 (25.5% for agriculture and 45.5% for non-agriculture). At the date of 
entry into force of the Agreement (1 March 2012), Peruvian exporters enjoyed an absolute margin 
of preference of 2.4% vis-à-vis  the prevailing MFN tariff (1.4% for agricultural goods and 2.7% for 
non-agricultural products). Immediately when the Agreement entered into force, the share of duty free lines applicable to imports from Peru rose to  81.7% (40.6% for agricultural goods, and 91.6% 
for non-agricultural goods). Following ten years of liberalization, in 2022, 89% of the tariff will be 
duty free, of which 57.2% for agricultural products  and 96.6% for non-agricultural products. At the 
end of the implementation period in 2027, Peruvian  exporters will face zero duties on 89.9% of 
their exports to Japan (61.8% for agricultural products, and 96.7% for non-agricultural products). 
Table A1.1 Japan: Indicators of MFN tariff ra tes and preferential rates for imports from 
Peru 
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 2012 4.7 8.2 41.6 11.2 15.8 25.5 3.3 6.1 45.5 
Peru 2012 b 2.3 13.8 81.7 9.8 18.0 40.6 0.6 7.8 91.6 
 2012 2.2 13.4 81.7 9.6 17.6 40.6 0.6 7.3 91.6 
 2013 2.1 12.9 81.7 9.3 17.1 40.6 0.6 6.8 91.6 
 2014 2.0 12.7 82.0 9.0 16.7 40.9 0.5 6.6 91.9 
 2015 2.0 12.2 82.0 8.8 16.2 40.9 0.5 6.2 91.9 
 2016 1.9 12.9 83.6 8.5 16.3 42.4 0.4 6.9 93.5 
 2017 1.8 12.5 83.6 8.3 15.9 42.4 0.4 6.5 93.5 
 2018 1.8 13.8 85.4 8.1 17.2 47.3 0.4 7.4 94.6 
 2019 1.7 13.4 85.4 7.9 16.9 47.3 0.4 7.1 94.6 
 2020 1.7 13.1 85.4 7.7 16.5 47.3 0.4 6.7 94.6 
 2021 1.6 17.7 89.0 7.5 21.0 57.2 0.3 10.3 96.6 
 2022 1.6 17.6 89.0 7.5 20.8 57.2 0.3 10.3 96.6 
 2023 1.6 17.5 89.0 7.4 20.6 57.2 0.3 10.3 96.6 
 2024 1.6 17.4 89.0 7.4 20.5 57.2 0.3 10.3 96.6 
 2025 1.6 17.3 89.0 7.3 20.3 57.2 0.3 10.3 96.6 
 2026 1.6 19.0 89.9 7.2 23.2 61.6 0.3 10.4 96.7 
 2027 1.6 19.0 89.9 7.2 23.3 61.8 0.3 10.4 96.7 
 
a WTO Definition. b  On 1 March. All subsequent reductions shall take place on 1 April.  Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad  valorem parts of altern ate rates are included. 
Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on data provided by Japan.  
2. Annex Table A1.2 gives an indication of additional market access in Japan resulting from the 
entry into force of the Agreement for Peru's top 25 global exports, which accounted for 80.9% of 
its global exports in 2009-2011; these corresponded to 92 lines at the six-digit level (using the 
HS 2007). In 2012, when the liberalization programme started, 31 of these tariff lines already had (MFN) duty free access to the Japanese market; the remaining 61 were (MFN) dutiable. With the entry into force of the Agreement, in March 2012, 26 additional tariff lines became duty free for 
Peruvian products. 21 additional lines will become  duty free in 2016, 4 in 2018, 5 in 2021, and 2 WT/REG309/1/Rev.1 
 
- 42 - 
 
  more in 2026. At the end of the implementation pe riod for Japan (in 2027), all but three tariff lines 
related to Peru's top 25 global exports will be duty free. Peru's top 25 global export products, 
which will remain dutiable in the Japanese market  after the full implementation of the Agreement, 
are constituted by some vegetables and fishery pr oducts, which together represent 1% of Peru's 
global exports. 
Table A1.2 Japan: Market access opportuni ties under the Agreement for Peru's top 
25 exports  
Peru's top export products in 2009-2011 Access Conditions to Japan's import markets 
MFN (2012) 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 
2012 a 
2016 
2018 
2021 
2026 
710812 -- other unwrought forms 22.7 0.0 1        
260300 Copper ores and concentrates. 16.6 0.0 1        
740311 -- cathodes and sections of 
cathodes 6.6 2.0 1 2 2      
230120 - flours, meals and pellets, of 
fish or of crustaceans, molluscs 
or other aquatic invertebrates 4.5 0.0 2        
260700 Lead ores and concentrates. 3.7 0.0 1        
260800 Zinc ores and concentrates. 3.5 0.0 1        
271011 -- light oils and preparations 3.3 1.3 5 11 4 7     
271019 -- other 3.1 2.2 9 22 11 11     
090111 -- not decaffeinated 2.8 0.0 1        
260111 -- non-agglomerated 1.6 0.0 1        
271111 -- natural gas 1.5 0.0 1        
270900 Petroleum oils and oils obtained 
from bituminous minerals, 
crude. 1.3 0.0 2        
261390 - other 1.2 0.0 1        
610910 - of cotton 1.2 9.7  3 3      
261610 - silver ores and concentrates 1.0 0.0 1        
150420 - fats and oils and their 
fractions, of fish, other than 
liver oils 0.8 7.0  1 1      
070920 - asparagus 0.8 3.0  1 1      
740811 -- of which the maximum 
cross-sectional dimension 
exceeds 6 mm 0.7 3.0  1 1      
800110 - tin, not alloyed 0.6 0.0 1        
610510 - of cotton 0.6 9.7  3 3      
790111 -- containing by weight 99.99% 
or more of zinc 0.6 0.0 1 2    2   
710691 -- unwrought 0.6 0.0 1        
080610 fresh grapes 0.6 12.4  1     1  
200599 -- other 0.5 13.8  11  2 4 3 1 1 
030749 -- other 0.5 7.3  3  1    2 
Total of above 80.9  31 61 26 21 4 5 2 3 
 
a  On 1 March. All subsequent reductions shall take place on 1 April.  Note: For the calculation of averages, specific rates are excluded and the ad valorem parts of alternate 
rates are included. 
Based on the HS 2007 nomenclature.  Source: WTO estimates based on data provid ed by Japan and UNSD, Comtrade database. WT/REG309/1/Rev.1 
 
- 43 - 
 
  The Peruvian Market 
3. Annex Table A1.3 provides a comparison between preferential tariff rates for Peru's imports 
from Japan and MFN rates applied by Peru at the entry into force of the Agreement. Peru's average 
applied MFN rate in 2012 was 3.2%. Average tariffs on agricultural products were 3.9% and 3.1% on non-agricultural products. In 2012, 55.6% of tariff lines were MFN duty free (39.4% for 
agriculture and 58.1% for non-agriculture). At th e date of entry into force of the Agreement 
(1 March 2012), Japanese exporters enjoyed an absolute margin of preference of 2% vis-à-vis  the 
prevailing MFN tariff, 1.6% for agricultural good s and 2% for non-agricultural products. The share 
of duty free lines applicable to imports from Japan rose to 80.6% (65.7% for agricultural goods, 
and 82.9% for non-agricultural goods). Following ten years of liberalization in 2022, 97.4% of the tariff will be duty free, of which 99.8% for non-agricultural products and 81% for agricultural products. At the end of the implementation peri od in 2027, Japanese exporters will face zero 
duties on 97.9% of their exports to Peru ( 84.7% for agricultural products, and 99.8% for 
non-agricultural products). 
Table A1.3 Peru: Indicators of MFN tariff rates 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 
(%) Overal
l (%)  On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2012 3.2 7.2 55.6 3.9 6.4 39.4 3.1 7.4 58.1 
Japan 2012b 1.2 6.3 80.6 2.3 6.6 65.7 1.1 6.3 82.9 
 2012 1.2 6.3 80.6 2.3 6.6 65.7 1.1 6.2 82.9 
 2013 1.1 5.6 80.6 2.1 6.1 65.7 0.9 5.4 82.9 
 2014 0.9 4.8 80.9 1.9 5.5 65.7 0.8 4.5 83.2 
 2015 0.7 3.7 81.0 1.7 4.9 65.7 0.6 3.3 83.3 
 2016 0.5 4.8 89.7 1.5 6.1 75.8 0.3 4.3 91.8 
 2017 0.4 4.1 89.7 1.4 5.8 75.8 0.3 3.4 91.8 
 2018 0.4 3.6 90.4 1.3 5.8 77.2 0.2 2.7 92.4 
 2019 0.3 3.0 90.4 1.3 5.6 77.2 0.1 1.8 92.4 
 2020 0.2 2.4 90.7 1.2 5.3 77.2 0.1 1.0 92.8 
 2021 0.2 6.2 97.4 1.2 6.1 81.0 0.0 7.1 99.8 
 2022 0.2 6.0 97.4 1.1 6.0 81.0 0.0 7.0 99.8 
 2023 0.2 5.9 97.4 1.1 5.9 81.0 0.0 7.0 99.8 
 2024 0.2 5.8 97.4 1.1 5.8 81.0 0.0 6.9 99.8 
 2025 0.2 5.7 97.4 1.1 5.6 81.0 0.0 6.9 99.8 
 2026 0.1 6.8 97.8 1.0 6.7 84.4 0.0 7.5 99.8 
 2027 0.1 6.9 97.9 1.0 6.8 84.7 0.0 7.5 99.8 
 
a WTO Definition. b  On 1 March. All subsequent reductions shall take place on 1 April.  Note: Based on the HS 2007 nomenclature.  Source: WTO Secretariat estimates based on data provided by Peru. 
 
4. Annex Table A1.4 gives an indication of addition al market access in Peru resulting from the 
entry into force of the Agreement for Japan's top 25 global exports, which accounted for 32.4% of its global exports in 2009-2011; these corresponded to 137 lines at the six-digit level (using the 
HS 2007). In 2012, when the liberalization programme started, 108 of these tariff lines already 
had (MFN) duty free access to the Peruvian market; the remaining 29 were (MFN) dutiable. With the entry into force of the Agreement, in March 201 2, three additional tariff lines became duty free 
for Japanese products. Three additional lines will become duty free in 2015, twelve in 2016, four in 
2020, and seven more in 2021. Six years before th e end of the implementation period for Peru 
(in 2027), all the tariff lines related to Japan's top 25 global exports will be duty free. WT/REG309/1/Rev.1 
 
- 44 - 
 
  Table A1.4 Peru: Market access opportuniti es under the agreement for Japan's top 
25 exports 
Japan's top export products in 2009-2011 Access Conditions to Peru's import markets 
MFN (2012) 
Duty-free in HS number and description of the product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff lines  Duty-free 
Dutiable 
2012 a 
2015 
2016 
2020 
2021 
870323 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc 5.5 6.0  4  1  2 1 
870324 -- of a cylinder capacity exceeding 
3,000 cc 3.2 6.0  4 3    1 
890190 - other vessels for the transport of 
goods and other vessels for the transport of both persons and goods 2.2 0.0 3       
870840 - gear boxes and parts thereof 1.9 0.0 2       
844399 Other parts & accessories for printing 
machinery excl. 8443.91 1.6 0.0 1       
854239 Other Electronic integrated circuits, 
other than 
Amplifiers/Memories/Processors & 
controllers 1.5 0.0 1       
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 1.5 0.0 28       
854232 -- memories 1.3 0.0 1       
852580 - television cameras, digital cameras 
and video camera recorders 1.2 0.0 2       
890120 - tankers 1.1 0.0 3       
870322 -- of a cylinder capacity exceeding 
1,000 cc but not exceeding 1,500 cc 1.1 6.0  4    2 2 
854231 -- processors and controllers, 
whether or not combined with 
memories, converters , logic circuits, 
amplifiers, clock an d timing circuits, 
or other circuits 0.9 0.0 1       
848620 - machines and apparatus for the 
manufacture of semiconductor devices or of electronic integrated circuits 0.9 0.0 1       
842952 -- machinery with a 360° revolving 
superstructure 0.9 0.0 1       
870899 -- other 0.8 0.0 12       
854140 - photosensitive semiconductor 
devices, including photovoltaic cells 
whether or not assembled in modules 
or made up into pa nels; light emitting 
diodes 0.8 0.0 2       
901380 - other devices, appliances and 
instruments 0.8 0.0 2       
852990 Other parts suitable for use 
solely/principally with the apparatus 
of headings 85.25 to 85.28., other 
than aerials & aerial reflectors of all 
kinds 0.7 0.0 3       WT/REG309/1/Rev.1 
 
- 45 - 
 
  Japan's top export products in 2009-2011 Access Conditions to Peru's import markets 
MFN (2012) 
Duty-free in HS number and description of the product  Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff lines  Duty-free 
Dutiable 
2012 a 
2015 
2016 
2020 
2021 
840991 -- suitable for use solely or principally 
with spark-ignition internal combustion piston engines 0.7 0.0 10       
847989 Other machines & mechanical 
appliances, other than Machines & 
mechanical appliances for treating 
metal, incl. electric wire coil-
winders/Mixing/kneading/crushing/gri
nding/screening/sifting/homogenising
/emulsifying/stirring machines 0.7 0.0 7       
382490 Chemical products & preparations of 
the chemical/allied industries (including those consisting of mixtures of natural products, excl. of 3824.30 - 3824.83) 0.6 2.4 21 13   12  1 
870422 -- g.v.w. exceeding 5 tonnes but not 
exceeding 20 tonnes 0.6 0.0 3       
870332 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 2,500 cc 0.6 6.0  4  2   2 
853690 other apparatus 0.6 0.0 3       
710812 -- other unwrought forms 0.6 0.0 1       
Total of above 32.4  108 29 3 3 12 4 7 
 
a  On 1 March. All subsequent reductions shall take place on 1 April.  Note: Based on HS 2007 nomenclature.  Source: WTO estimates based on data provid ed by Peru and UNSD, Comtrade database. 
 WT/REG309/1/Rev.1 
 
- 46 - 
 
  ANNEX 2 
SUMMARY OF TRQ COMMITMENTS  UNDERTAKEN BY JAPAN 
Table A2.1 Summary of Category "Q" (Japan ) Tariff Rate Quotas opened by Japan for 
products from Peru 
Goods (HS) Tariff 
Classification  Annual quota quantity  
(metric tonnes) In-quota rate of customs duty 
Frozen swine (part) (Qf) 
0203.22 0203.29  1,000 (year 1) 
 2,000 (year 2) 
 3,000 (year 3) 
 4,000 (year 4) 
 5,000 (year 5 and each 
subsequent year) 482 yen per kg for originating goods, 
whose value for customs duty is not more than 53.53 yen per kg. For goods whose value for customs duty per kg is more than JPY53.53 but not more than the value obtained by dividing 535.53 yen by 1.022, the rate shall be the difference between 535.53 yen per kg and the value for customs duty per kg. 
2.2% for originating g oods, of which value 
for customs duty per kg is more than the value obtained by dividing 535.53 yen by 1.022. 
Prepared or 
preserved meat, 
meat offal or blood 
(part) 
 
 (Qg*) 
1602.32  
(other) 
  3,500 (year 1) 
 4,000 (year 2) 
 4,500 (year 3) 
 5,000 (year 4) 
 5,500 (year 5 and each 
subsequent year) 
 
 
" 
 
 
 
 
 
" 
 
 
 
 
 
" 
 
 
 
 
" 
 
 
 
 
" 
 
 
 3.6% 
 
Meat and edible 
offal, of the poultry of heading 01.05, fresh, chilled or frozen (part) (Qg**) 
0207.14 6.8% 
 
Meat and edible 
offal, of the 
poultry of heading 
01.05, fresh, 
chilled or frozen 
(part) (Qg***) 
0207.13 7.6% 
 
Meat and edible 
offal, of the 
poultry of heading 01.05, fresh, chilled or frozen (part) (Qg****) 
0207.11 
0207.12 10.7% 
 
Prepared or 
preserved meat, 
meat offal or blood 
(part) (Qg*****) 
1602.31 
1602.32 
1602.39 19.1% 
 
Meat and edible 
offal, of the poultry of heading 01.05, fresh, chilled or frozen (part) (Qg******) 
0207.14 
(other) 10.7% (for the first and second years), 
and 8.5% for the subsequent years. 
Maize  (Qh) 
1005.90 (for 
manufacture 
of 
confectionery)  1,500 (year 1) 
 3,000 (year 2) 
 4,500 (year 3) 
 5,500 (year 4) 
 6,500 (year 5 and each 
subsequent year) Zero WT/REG309/1/Rev.1 
 
- 47 - 
 
  Goods (HS) Tariff 
Classification  Annual quota quantity  
(metric tonnes) In-quota rate of customs duty 
Maize (Qi) 
1005.90 (for 
manufacture 
of non-
alcoholic 
beverages)  500 (year 1) 
 1,000 (year 2) 
 2,000 (year 3) 
 3,000 (year 4) 
 4,000 (year 5 and each 
subsequent year) Zero. 
Sauces and 
Preparations 
(tomato ketchup) (Qj) 
2103.20   100 per year Zero 
Sauces and 
Preparations (other tomato sauces) (Qk) 
2103.20   10 per year Zero 
 
Note: The quota quantity set for the first year is allocated on the date of entry into force of the Agreement 
(1 March 2012). The subsequent aggregate quota quan tity shall be applicable from 1 April of each 
following year. 
 Source: Annex I, Part 2 of the Agreement (Schedule of Japan).  
__________