RESTRICTED  
  
WT/TPR/G/310  
19 January 2015  
(15-0297)  Page: 1/18  
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW 
REPORT BY 
JAPAN 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Japan is attached. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trad e Policy Review Body on Japan. WT/TPR/G/310 • Japan 
 
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  Contents 
1   TRADE AND ECONOMIC ENVIRONMENT ....................................................................... 3  
1.1   Japan's Econom ic Environment .................................................................................... 3  
1.2   Trends in Foreign Trade .............................................................................................. 3  
1.3   Trends in Foreign Direct Investment ............................................................................. 3  
2   TRADE AND INVE STMENT POLICY ............................................................................... 4  
2.1   Overview .................................................................................................................. 4  
2.2   WTO ..................................................................................................................... ... 5 
2.2.1   Rule setting .......................................................................................................... . 5 
2.2.2   Dispute settlement .................................................................................................. 5  
2.2.3   Development ......................................................................................................... 5  
2.3   FT A/EPAs ................................................................................................................ . 6 
2.4   Other Regional/Bil ateral Arrang ements ......................................................................... 8  
2.4.1   Asia-Pacific Econom ic Cooperatio n (APEC) .................................................................. 8  
2.4.2   Asia-Europe Meeting (ASEM) .................................................................................... 8  
2.4.3   Japan's Bilateral Acti vities outside of FTAs .................................................................. 9  
2.5   Invest ment Policy ..................................................................................................... 11 
2.5.1   Program for Promoting Japan as an Asian Business Centre and Direct Investment 
into Japan ....................................................................................................................... 11 
2.5.2   Outlook ............................................................................................................... . 12 
2.5.3   Investme nt Agreements.......................................................................................... 12 
3   TRADE AND DEVELOPMENT ....................................................................................... 12  
3.1   Aid for Trade ............................................................................................................ 12 
3.2   Generalized System  of Preferen ces (G SP) .................................................................... 13 
4   JAPAN'S DOMEST IC POLICIES ................................................................................... 14  
4.1   Abenomics ............................................................................................................... 14 
4.2   Intellectual Property Rights ........................................................................................ 15 
4.3   Financ ial Reform ...................................................................................................... 16 
4.4   Agricultural Reform ................................................................................................... 17 
4.5   Competit ion Policy .................................................................................................... 17 
4.6   Services-Related Policies ........................................................................................... 18 
 
 WT/TPR/G/310 • Japan 
 
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  1  TRADE AND ECONOMIC ENVIRONMENT 
1.1  Japan's Economic Environment 1.1.  The Japanese economy went into a short recession in spring 2012, when the world economy 
decelerated due to the European debt crisis. Howeve r, it started to pick up in late 2012, with a 
movement in the direction of depreciation of the yen and an increase in stock prices starting from 
autumn 2012, while a recovery of new car sales from the reaction after the end of the subsidy for eco-cars also supported this. Following that, as the effect of economic policies support it, the 
economy has continued to recover moderately. Although real GDP growth rate in the second and 
third quarter of 2014 turned negative mainly because of a reaction after a last-minute rise in demand before a consumption tax increase, it is on a moderate recovery trend. Although consumer prices have been flat recently, price trends are no longer pointing to deflation. The 
economy is making steady steps forward to break free from deflation. 
1.2  Trends in Foreign Trade 1.2.  In 2013, the amount of Japanese trade recovered to almost the same level as that of 2008 
from the significant decrease caused by the co llapse of Lehman Brothers and ensuing world 
economic crisis. Though the trade balance was re gained with the recovery of the amount of 
Japanese trade in 2010, after the Great East Japan Earthquake, the trade balance went into deficit 
in 2011. The deficit widened mainly due to an increase in fossil fuel imports and an increase in 
domestic demand. As a result, the annual trade balance in 2013 reached a deficit of ¥11.47 trillion. 
1.3.  The total value of exports from Japan in 2013 amounted to ¥69.77 trillion (an increase 
of 9.5% from 2012). 
 - Regional trends in the total value of exports in 2013 (compared to 2012) 
China up by 9.7% 
ASIA NIEs (Hong Kong, China; Republic of Korea;  Singapore and Taipei, Chinese) up by 11.3% 
ASEAN up by 4.8% 
United States of America up by 15.6% 
European Union (EU) up by 7.7% 
Middle East up by 9.5% 
1.4.  The total value of imports to Japan in 2013 amounted to ¥81.24 trillion (an increase of 
14.9% from 2012). 
 - Regional trends in the total value of imports in 2013 (compared to 2012)  
China up by 17.4% 
ASIA NIEs (Hong Kong, China; Republic of Korea;  Singapore and Taipei, Chinese) up by 12.0% 
ASEAN up by 11.5% 
United States of America up by 12.0% European Union (EU) up by 15.2% 
Middle East up by 15.7% 
1.3  Trends in Foreign Direct Investment 1.5.  The amount of Inward FDI stocks increased from ¥17.5 trillion (3.7% of GDP) in CY2011 to 
¥18.0 trillion (3.8% of GDP) in CY2013. According to the "2012 Economic Census for Business 
Activity" which the Ministry of Internal Affairs and Communications and the Ministry of Economy, 
Trade and Industry released, approximately 1.2 million regular employees were employed by 
companies where foreign companies and other foreign agents owned more than one-third of their 
equities. WT/TPR/G/310 • Japan 
 
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  2013 Outward FDI1 
1.6.  According to a Ministry of Finance report, Japan's outflow of FDI (Outward FDI) increased to 
¥13,386.0 billion in CY2013, which represents an increase of 40.0% from CY2012 (an increase of ¥3,821.2 billion). The major characteristics of Japan's Outward FDI in CY2012 were as follows: 
- By Industry: In CY2013, Outward FDI in manufacturing industries increased to 
¥4,148.4 billion (i.e. by 5.3%). The food, petroleum, rubber and leather, glass and ceramics, and transportation equipment sect ors increased sharply. Outward FDI in non-
manufacturing industries also increased to ¥9,100.1 billion (i.e. by 55.8%). The sectors 
such as transportation, communications, finance and insurance, real estate and services increased sharply while the sectors of fishery and marine products, mining, construction, wholesale and retail decreased. 
- By Region: In CY2013, Outward FDI to North America increased by 59.7% to 
¥4,573.0 billion, to Asia by 48.5% to ¥3,977.5 billion, to Europe by 27.7% to ¥3,159.6 billion, and to Central & South America by 18.7% to ¥990.2 billion. 
2013 Inward FDI
2 
1.7.  The FDI flow to Japan (Inward FDI) in creased from ¥64.9 billion in CY2012 to ¥362.4 billion 
in CY2013. The major characteristics of inward FD I flow to Japan in CY2013 were as follows:  
- By Industry: In CY2013, the amount of outflow in the non-manufacturing industries 
shrank from minus ¥287.4 billion in CY2012 to minus ¥12.9 billion and the amount of inflow in the manufacturing industries  shrank from ¥425.6 billion in CY2012 to 
¥237.7 billion. The sectors such as wholesale & retail and finance & insurance 
increased, while the sector of chemicals & pharmaceuticals decreased. 
- By Region: In CY2013, the inward FDI flow from North America increased, while the 
amount of FDI flow from Asia into Japan stopped increasing. 
2  TRADE AND INVESTMENT POLICY 
2.1  Overview 2.1.  Since the eleventh meeting of the Trade Policy Review on Japan in 2013, Japan has been 
committed to the trade liberalization under the mult ilateral trading system centered on the WTO. 
Japan is determined to be fully engaged in this  non-discriminatory, open and rule-based regime. 
2.2.  While committed to the multilateral trade ne gotiations, Japan is also pursuing the conclusion 
of Economic Partnership Agreements (EPAs), both  bilateral and regional, and plurilateral trade 
agreements. The negotiations of EPAs and plurilateral agreements will enhance the transparency 
of the respective member country's economic policy and reinforce the competitiveness of its industries, which will bring about positive impact s on the multilateral trade negotiations. Japan 
also has in mind that we should assess the possibility of reflecting the outcomes of the bilateral 
and plurilateral initiatives in the multilateral trading system. 
2.3.  Japan is currently a party to thirteen EPAs. Through the 'Japan Revitalization Strategy' issued 
by the Government in June 2013, Japan is commi tted to increasing the FTA coverage ratio to 70% 
by 2018 from the current figure of 19%. Region al trade agreements and multilateral trading 
system under the WTO should complement one another and Japan believes that these regional agreements will serve as building blocks to achiev e higher trade liberalization at the multilateral 
level.  
2.4.  Regarding plurilateral negotiations in relation to the WTO, Japan is now engaging in initiatives 
such as the expansion of the Information and Te chnology Agreement (ITA), Trade in Services 
                                               
1 Source: Balance of Payments. 
2 Source: Balance of Payments. http://www.boj.or.jp/en/statistics/br/bop/index.htm/. WT/TPR/G/310 • Japan 
 
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  Agreement (TiSA), and the Environmental Goods Agreement (EGA). These negotiations will 
achieve significant progress towards the multilateral trade liberalization.  
2.5.  In the rise of protectionism around the world, Japan welcomes the political commitments 
made at international fora such as G20 and APEC on the standstill and rollback of protectionist 
measures. In this context, Japan fully supports the WTO's peer review system of Trade Policy 
Review and Trade Monitoring which aim at curbing protectionist measures. 
2.2  WTO 
2.6.  Strengthening and maintaining the multilateral trading system forms a basis of global trade 
and a pillar of Japan's trade policy. Since the last review, Japan has always fully engaged in bringing about progress in the multilateral trading system under the WTO. While respecting the principle of transparency and inclusiveness, Japan is playing a role of offering new ideas and 
approaches to advance the trade negotiations under the WTO. In the lead up to the successful 
conclusion of the 9th Ministerial Conference (MC9 ) in Bali in 2013, Japan has made significant 
contributions to narrowing the gap among Member countries and reaching consensus.  
2.2.1  Rule setting 
2.7.  Japan has been playing a constructive role in making a new agreement on trade facilitation. 
The adoption of the Protocol of Amendment to in sert the Trade Facilitation Agreement (TFA) into 
the WTO Agreement failed to meet the deadline at  the end of July 2014 as was agreed by the 
Ministers at MC9. However, given that the Protocol was adopted at the General Council 
on 27 November 2014, Japan, together with other WTO members, will continue its efforts to have 
the TFA brought into force and implemented. 
2.8.  Japan's dedication to making new rules and practices through the ongoing negotiations on 
the expansion of ITA, TiSA, and EGA will contribute to establishing a more solid and conducive basis for enhancing business and trade on a worldwide scale. 
2.9.  In April 2014, the revision of the Government Procurement Agreement (GPA) came into force 
for Japan. With its revision, Japan has expanded its coverage in terms of the threshold of the central governmental entities, entities of sub- central level, as well as covered services.  
2.2.2  Dispute settlement 
2.10.  Observing the compliance with the WTO rules through Dispute Settlement is one of the 
most important and critical roles played by the WTO to maintain an open and fair multilateral trading system. Japan has actively engaged in the WTO dispute settlement mechanism to resolve 
disputes as both a party and a third party to a di spute. Japan continues to seek improvements and 
clarifications of the Dispute Settlement Understanding (DSU) which will serve Members' shared interests by enhancing compliance with trade rules and ensuring the integrity and credibility of the 
rule-based trade system. Japan attaches importance to the DSU revision negotiations and has 
actively contributed to the negotiations with a view to achieving a successful outcome. 
2.2.3  Development 
2.11.  Development, which was one of the components agreed among the WTO members at the 
Bali Ministerial Conference in December 2013, co ntains three sets of decisions having direct 
relevance for the LDCs, 1) Duty Free Quota Free (DF-QF), 2) Rule of Origin of exports, and 3) operationalization of the waiver accorded to export of services from the LDCs. The proposed 
monitoring mechanism regarding implementation of Special and Differential Treatment (S&DT) 
provisions is another decision of the Developmen t component of the Bali Package. With the active 
participation in the Conference, Japan has played an important role to lead the outcome of these 
decisions and has been meticulously monitoring that those decisions are in effect and in action 
even after the Conference.  
2.12.  Japan has been actively continuing its participation in the discussions related to various 
items of the development agenda such as Aid for Trade, recognizing that integrating developing 
and least-developed countries in the multilateral trading system is one of the essential roles of the WT/TPR/G/310 • Japan 
 
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  WTO. In particular, Japan has actively supported LDC accessions through technical assistance to 
accession applicants to build their trade capacity. 
2.3  FTA/EPAs 2.13.  Maintaining and strengthening the multilateral trading system under the WTO has been a 
main pillar of Japan's external economic policy. At the same time, Japan has also promoted its 
regional and bilateral trade policies as means of complementing the multilateral trading system, particularly through Economic Partnership Agreements which include elements of Free Trade 
Agreements and institution-building. 
2.14.  The data concerning the Economic Partnership Agreements is summarized in the Table 2.1 
below (as of December 2014). 
Table 2.1  
Country Date of the entry into 
force Additional information 
Entered into force   
Singapore 
(The Japan-Singapore 
Agreement for a New Age 
Economic Partnership) 30 November 2002  - The fourth and fifth  Supervisory Committees were held in  May 
2013 and July 2014 respectively. 
- Joint Committees on Customs Procedures, Paperless Trading, 
Mutual Recognition, Mutual Recognition of Professional 
Qualifications, Intellectual Property, Financial Services 
Cooperation, ICT, Science and Technology, Trade and 
Investment Promotion, SMEs, Broadcasting, and Tourism have 
been held to date. 
- The amended Agreement came into effect in September 2007. 
- The partial amendment of the Annex (IIA "Product-Specific 
Rules" and IIB "Minimum Data Requirement for Certificate of 
Origin") came into effect in January 2008. 
- The amended Agreement came into effect in September 2007. 
- The partial amendment of the Annex (IIA "Product-Specific 
Rules" and IIB "Minimum Data Requirement for Certificate of 
Origin") came into effect in January 2008. 
Mexico 
(The Agreement between Japan and the United Mexican 
States for the Strengthening 
of the Economic Partnership) 1 April 2005 -
 The Protocol between Japan and the United Mexican States 
related to Improvement of Market Access Conditions based on paragraphs 3 and 5 of Article 5 of the Agreement between 
Japan and the United Mexican States for the Strengthening of 
the Economic Partnership entered into force in April 2007. 
- The Protocol Amending the Agreement between Japan and the 
United Mexican States for the Strengthening of the Economic Partnership was signed in September 2011 and entered into 
force in April 2012. 
- Sub-Committees on Trade in Goods, SPS Measures, Technical 
Regulations, Standards and Conformity Assessment Procedures, Rules of Origin, Certificate of Origin and Customs Procedures, Cross-Border Trade in Services, Entry and 
Temporary Stay, Government Proc urement, Cooperation in the 
Field of Trade and Investment Promotion, Cooperation in the Field of Agriculture, Cooperation in the Field of Tourism, and also the Special Sub-Committee on Steel Products and the Committees for the Improvement of the Business Environment 
have been held to date. 
Malaysia 
(The Agreement between the 
Government of Japan and the 
Government of Malaysia for 
an Economic Partnership) 13 July 2006 - The third  Joint Committee was held in February 2013. 
- Sub-Committees on Trade in Services, Improvement of 
Business Environment, Cooperation, Rules of Origin, 
Intellectual Property, Sanitary and Phytosanitary, Investment, 
Trade in Goods, and Technical Regulations, Standards and 
Conformity Assessment Procedures have been held to date. 
Chile 
(The Agreement between 
Japan and the Republic of 
Chile for a Strategic Economic Partnership) 3 September 2007
 - Meetings of the Commission, Committees on Trade in Goods 
and Improvement of Business Environment and the Working 
Group on Fish and Fishery Products have been held to date. 
Thailand 
(The Agreement between 
Japan and the Kingdom of 
Thailand for an Economic 
Partnership) 1 November 2007  - Sub-Committees on Trade in Services, Rules of Origin, Small 
and Medium Enterprises, Paperless Trading, Enhancement of 
Business Environment, Customs Procedures, Tourism, 
Agriculture, Forestry and Fisheries, Trade in Goods, and 
Movement of Natural Persons have been held to date. 
Indonesia 
(The Agreement between 
Japan and the Republic of 
Indonesia for an Economic Partnership) 1 July 2008 -
 Sub-Committees on Rules of Origin, Trade in Goods, Trade in 
Services, Movement of Natural Persons, Cooperation, and 
Investment have been held to date. WT/TPR/G/310 • Japan 
 
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  Country Date of the entry into 
force Additional information 
Brunei Darussalam 
(The Agreement between 
Japan and Brunei Darussalam 
for an Economic Partnership) 31 July 2008 - Sub-Committees on Trade in Services and Cooperation have 
been held to date. 
ASEAN 
(The Agreement on 
Comprehensive Economic Partnership among Japan and Member States of the Association of Southeast 
Asian Nations) 1 December 2008
 (Lao 
People's Democratic 
Republic, Myanmar, Singapore, Viet Nam) 1 January 2009 (Brunei) 1 February 2009 
(Malaysia) 
1 June 2009 (Thailand) 1 December 2009 (Cambodia) 
1 July 2010 (The 
Philippines) -
 The 11th Joint Committee was held in March 2014. 
- Sub-Committees on Rules of Origin, Trade in Services, 
Investment and Economic Cooperation have been held to date. 
- The Agreement is a legally independent agreement in relation 
to the bilateral EPAs between Japan and individual ASEAN Member States and thus the entry into force of the Agreement 
does neither nullify nor integrate those bilateral EPAs. 
The Philippines 
(The Agreement between 
Japan and the Republic of the 
Philippines) 11 December 2008  - The fourth  Joint Committee was held in March 2013. 
- Sub-Committees on Trade in Goods, Trade in Services, Rules of 
Origin, Investment, Movement of Natural Persons, 
Improvement of Business Environment, and Cooperation have 
been held to date. 
Switzerland 
(The Agreement on Free Trade and Economic 
Partnership between Japan 
and the Swiss Confederation) 1 September 2009
  
Viet Nam  
(The Agreement between 
Japan and the Socialist 
Republic of Viet Nam for an 
Economic Partnership) 1 October 2009 - Sub-Committees on Movement of Natural Persons have been 
held to date. 
India 
(Comprehensive Economic 
Partnership Agreement 
between Japan and the Republic of India) 1 August 2011 -
 The sub-committee on Rules of Origin, Customs Procedures, 
TBT/SPS, Trade Services, Improvement of Business 
Environment has been held to date. 
Peru 
(The Agreement between 
Japan and the Republic of 
Peru for an Economic 
Partnership) 1 March 2012 - Meeting of the Commission and the Sub-Committee on 
Improvement of the Business Environment have been held to 
date. 
Signed 
Australia 
(The Agreement between 
Japan and Australia for an 
Economic Partnership) Signed on 8 July 2014  
(The negotiations 
commenced in April 
2007) - Sixteen rounds of negotiations were held.  
Under negotiation   
The Republic of Korea Under negotiation (The 
negotiations commenced 
in December 2003) - Six rounds of negotiations were held. 
- Although no negotiations have been held since the end of the 
sixth round held in November 2004, four rounds of the 
working-level consultation were held by December 2009 to 
consider the resumption of negotiations. Director-general level 
consultations for the EPA were held in September 2010 and in 
May 2011. Several rounds of working-level consultations have 
been held since 2012. 
GCC (Gulf Cooperation 
Council) Under negotiation 
(Formal negotiations 
commenced in 
September 2006) - Two rounds of negotiations and four rounds of informal 
intermediate meetings were held. The latest meeting was held 
in March 2009. 
Mongolia Reached an agreement in 
principle in the 
negotiations of the 
Agreement in July 2014. 
(The negotiations 
commenced in 
June 2012) - Seven rounds of negotiations were held 
Canada Under negotiation (The 
negotiations commenced in November 2012) -
 Seven  rounds  of negotiations were held. The latest meeting 
was held in Tokyo in November 2014. 
Colombia Under negotiation (The 
negotiations commenced 
in December 2012) - Eight rounds of negotiations were  held. The latest meeting was 
held in Bogota in October 2014. 
CJK (China, Japan and Republic of Korea) Under negotiation (The 
negotiations commenced in March 2013) -
 Six rounds of negotiations were held. The latest meeting was 
held in Tokyo in November 2014. 
RCEP (Regional 
Comprehensive Economic 
Partnership) Under negotiation (The 
negotiations commenced 
in May 2013) - Six rounds of negotiations were held. The latest meeting was 
held in India in December 2014. WT/TPR/G/310 • Japan 
 
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  Country Date of the entry into 
force Additional information 
EU (European Union) Under negotiation (The 
negotiations commenced in April 2013) -
 Seven  rounds of negotiations were held. The latest meeting 
was held in Brussels in October 2014. 
TPP (Trans-Pacific 
Partnership) Under negotiation (Japan 
participated in TPP 
negotiations in July 
2013) - The latest ministerial meeting was held in November 2014 and 
the latest Chief Negotiators' meeting was held in September 
2014  
Turkey Under negotiation (The 
negotiations commenced in December 2014) -
 The first round of negotiations was held in December 2014.  
2.4  Other Regional/Bil ateral Arrangements 
2.4.1  Asia-Pacific Economic Cooperation (APEC) 2.15.  Japan remains committed to APEC's mission of regional economic integration and to the 
Bogor Goals of free and open trade and investment. In 2010, APEC Leaders set forth the 
Yokohama Vision, which is a comprehensive, forw ard-looking framework for achieving growth and 
prosperity in the Asia-Pacific region in the 21st Century. Japan has continued and will continue to take a leading role in realizing this vision in close cooperation with other Member economies. 
2.16.  At the APEC Economic Leaders' Meeting in Beijing in 2014, APEC economic leaders extended 
their standstill commitment through the end of 2018 to refrain from introducing new protectionist 
measures, and reaffirmed commitment (i) to rollback protectionist and trade-distorting measures 
and (ii) to continue maximum restraint in implementing WTO-consistent measures with a 
significant protectionist effect. 
2.17.  APEC's core mission continues to be furthe r regional economic integration and expansion of 
trade in the Asia-Pacific region. APEC has pursued these objectives in 2014 by advancing Global 
Value Chains and Supply Chain Connectivity, and addressing next-generation trade and investment issues, including through our trade agreements and the Free Trade Area of the Asia-Pacific (FTAAP), which is a major instrument to further APEC's regional economic integration 
agenda. In this regard, Japan took the lead in manufacturing related services in supply chains/ 
value chains as one of the next generation trade and investment issues to advance the FTAAP in line with the agreed "Beijing Roadmap for APEC's Contribution to the Realization of the FTAAP"  
in 2014. Japan also took the lead in two work streams, namely "Improve the investment climate 
for GVCs development" and "Enhance resiliency of GVCs" under the "APEC Strategic Blueprint for 
Promoting Global Value Chain Development and Cooperation" . In addition, Japan has pursued the 
advance of APEC green growth and sustainable de velopment objectives by taking the lead in 
environmental services and contributing to capaci ty building for implementation of the 2012 APEC 
Leaders' commitments on the APEC List of Environmental Goods (54 items), which aim to reduce applied tariff rates to 5% or less by the end of 20 15, taking into account each economy's economic 
circumstances. 
2.4.2  Asia-Europe Meeting (ASEM) 2.18.  Japan believes that the economic dialog ue and cooperation between Asia and Europe 
through ASEM will promote enhanced mutual understanding between the two regions on various 
economic issues, which could lead to increased trade and investment between Asia and Europe, as well as to the improved coordination of world economic issues of mutual concern relating to the 
WTO, RTA/FTA, IPR, etc., thereby contributing to the development of the global economy. 
2.19.  Following the decision taken at the tenth ASEM Customs Directors General-Commissioners 
Meeting in Vienna, Austria in October 2013, Japan, together with European side's coordinator, Poland, has taken the initiative to compile the situations and progress made in the field of the 
Authorized Economic Operator (AEO) programmes in the ASEM members. In addition, Japan is 
taking a leading role as the Asian side's Coordinator on the subject of Supply Chain Security in the ASEM Customs work for 2013-2014. The eighth ASE M Working Group Meeting on Customs Matters 
in Siem Reap, Cambodia in March 2014 endorsed the action plan on this subject that was proposed 
by Japan. WT/TPR/G/310 • Japan 
 
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  2.4.3  Japan's Bilateral Activities outside of FTAs 
The United States 2.20.  As long-time allies and major trade partners, Japan and the United States continue to 
engage in a wide range of bilateral economic dialogues. 
2.21.  In April 2013, Japan and the United States completed bilateral consultations regarding 
Japan's participation in the negotiation of the Trans-Pacific Partnership and decided to conduct negotiations on non-tariff measures (NTMs) and on motor vehicle trade in parallel to the TPP 
negotiations. The negotiation on NTMs includes  the areas of Insurance, Transparency/Trade 
Facilitation, Investment, IPR, Standards, Government Procurement, Competition Policy, Express Delivery and SPS. The negotiation on motor vehicle trade includes Special Motor Vehicle Safeguard, Transparency, Standards, PHP Certif ication System, Green/New Technology Vehicles, 
Financial Incentives, Distribution, Third Country Cooperation and Other Issues. The parallel 
negotiations have been held four times since August 2013. Since the fourth round, both governments have continued consultations intermittently. 
2.22.  Japan and the United States held the sixth Director General-level meeting of the U.S.-Japan 
Policy Cooperation Dialogue on the Internet Econom y in Washington D.C. in September 2014. This 
dialogue included a session with representatives from the private sector. Participants had candid 
and vibrant discussions on important topics on Internet and Information and Communication 
Technologies (ICT) such as enhancement of the Mu lti-stakeholder System of Internet Governance, 
Use of Personal Data and Protection of Privacy,  Cybersecurity, Telecommunication Service, Open 
data, R&D Cooperation and ICT for Development.  Such policy-level dialogues are aimed at 
deepening bilateral policy coordination and lay the groundwork for greater Japan-U.S. cooperation 
in international fora. 
European Union 
2.23.  The trade turnover between Japan and the EU has steadily recovered in recent years from 
the temporary decline in 2009 due to the world econom ic crisis. As the Ministry of Finance reports, 
the volume of the mutual trade amounted to abou t ¥15 trillion in 2013. Japan is the EU's seventh 
largest trading partner and the EU is Japan's third one. Regarding foreign direct investment, Japan 
invested about ¥27 trillion and the EU invested about ¥7 trillion in 2013. The EU is the largest 
investor and the second largest investee for Japan.  According to the survey of the Ministry of 
Economy, Trade and Industry (METI), about 2,60 0 Japanese enterprises are operating businesses 
in the EU and creating about half a million jobs. 
2.24.  On the occasion of the 22th Japan-EU  Summit Meetings on 7 May 2014, the leaders 
recognized the active and continued contribution of the EU-Japan Business Round Table (BRT) to 
further development of bilateral economic relationship, and reaffirmed their determination to 
promote cooperation with the business communities on both sides, notably through the BRT. 
Russian Federation 
2.25.  The trade and economic relationship between Japan and Russia has been growing steadily in 
recent years. The trade turnover between the two countries reached a record high level of 
34.8 billion US$ in 2013. Automobile-related produc ts occupy more than 60% of Japanese exports 
to Russia and three-quarters of Japanese imports from Russia are oil, gas and other mineral-
related materials. 
2.26.  In addition to Russia's economic slowdown, sanctions by G7 countries toward Russia have 
had a negative impact on Japan-Russia business and economic relations. Statistics show a rapid 
decline in exports from Japan to Russia over the period from March to September 2014 compared 
to the same period of the last year. 
2.27.  The Japanese Government has established Japan Centers in six Russian cities, through 
which it offers technical assistance aimed at cult ivating and training personnel who are expected to 
play an important role in the Russian economy and Japan-Russia business and economic relations. 
The Centers also proactively support business activities by providing institutional and corporate WT/TPR/G/310 • Japan 
 
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  information offering consulting services, etc. in order to promote business relations between 
companies of the two countries. 
China 2.28.  The economic interdependence between Japa n and China is growing deeper. China has been 
Japan's largest trading partner since 2007. The mutual trade amount in 2013 reached 
US$312 billion. According to China's statistical data, Japan was China's second largest trading partner in 2013 and regarding foreign direct investment in China, Japan invested US$7.1 billion 
in 2013. According to China's data, 23,094 Japanese enterprises were conducting business in 
China as of the end of 2012. Japan has bilatera l economic agreements and arrangements with 
China in the areas of trade, air transportation, maritime transportation, trademark protection, tax, investment, fisheries and mutual customs cooperation. 
2.29.  In 2007, for strategic economic dialogue at the ministerial level, Japan and China decided to 
establish the Japan-China High-Level Economic Dialogue. The first meeting was held in Beijing in December 2007, the second meeting was held in Tokyo in June 2009 and the third meeting was 
held in Beijing in August 2010, in which both leaders expressed views to strengthen exchanges 
and cooperation in the fields of trade, investment , and protection of intellectual property rights, 
among other areas.  
Republic of Korea 
2.30.  Japan and Republic of Korea maintain a mutually dependent economic relationship and it is 
growing steadily. The mutual trade amount in 2013 reached US$94.7 billion. Japan and Republic of 
Korea are each other's third largest trading partner after China and the US in 2013. Regarding 
foreign direct investment in Republic of Korea, Japan was the second largest investor with 
US$2,690 million in 2013. Foreign direct investment from Republic of Korea to Japan amounted to US$690 million. 
2.31.  In order to strengthen the economic relati onship between Japan and Republic of Korea, the 
12th Japan-Republic of Korea High-Level Econom ic Consultation was held on 11 November 2013. 
Both sides exchanged views to promote bilate ral trade and investment, and reaffirmed the 
importance of cooperation on global issues such  as energy security and the environment. In 
addition, both sides confirmed the recent develo pment of the cooperation between Japanese and 
Korean enterprises in third countries on projects  of resource development and infrastructure, and 
exchanged views to promote further bilateral cooperation in various economic fields. 
India 
2.32.  Based on the "Japan-India Strategic and Global Partnership", established by then-Prime 
Minister Abe and Prime Minister Singh in 2006, economic activities between two countries have 
been steadily enhanced. The mutual trade amount in 2013 reached US$16.3 billion. This figure is 
fourfold of that in 2003.  
2.33.  To further strengthen the bilateral economic partnership, Japan and India have been 
engaged in wide-ranging dialogues on trade, investment promotion and improvement of the 
business environment. The Sixth Japan-India Strategic Dialogue on Economic Issues was held in October 2012 in Tokyo. At the ministerial level, the first India-Japan Ministerial-Level Economic Dialogue was held in April 2012. 
Africa 
2.34.  In June 2013, the Fifth Tokyo Internationa l Conference on African Development (TICAD V) 
was held in Yokohama, Japan with participation of 53 African Countries, international 
organizations, the private sector and NGOs. Two outcome documents, namely the "Yokohama 
Declaration 2013" and the "Yokohama Action Plan 2013-2017", were adopted at TICAD V. The participants affirmed their support of Africa's growth by promoting trade and investment through 
Public-Private Partnership while recognizing Africa as a "business partner". WT/TPR/G/310 • Japan 
 
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  2.35.  Japan announced the Assistance Package for Africa at TICAD V, utilizing private and public 
means of up to US$32 billion, including ODA of US$14 billion over the next 5 years and pledged a range of measures to promote trade and investment in Africa, including the following: 
2.36.  First, Japan set up various OOF schemes su ch as providing US$5 billion through JBIC (Japan 
Bank for International Cooperation) Facility for African Investment and Trade Enhancement to 
finance projects in Africa, up to US$2 billion through NEXI (Nippon Export and Investment Insurance) in trade and investment insurance, and US$2 billion through JOGMEC (Japan Oil, Gas 
and Metals National Cooperation) in financial assistance for exploration/development project. As 
of April 2014, US$2.08 billion was disb ursed in total under the schemes. 
2.37.  Second, placing importance on the human resources development, Japan announced the 
dispatch of policy advisors on investment prom otion to 10 countries and pledged to promote the 
capacity building of 300 people in 20 countries for the function of OSBP (One Stop Border Post) 
and to facilitate regional trade. Japan has already dispatched 5 advisors to 5 countries such as Tanzania and Mozambique and already trained 250 people in 11 countries such as Kenya, Togo 
and Zimbabwe. Japan also announced support for the capacity building of 30,000 people for 
business and industry through KAIZEN and Technical and Vocational Education and Training (including the establishment of 10 Human Resource Development Centers) and launched "ABE 
Initiative" (African Business Education Initiative  for Youth) which invites 1,000 young people to 
study and to have the experience of interning in Japanese companies in Japan. In September 2014, as the first group, more than 150 students arrived in Japan through this Initiative. 
2.38.  Third, focused on developing an invest ment friendly environment, Japan announced the 
promotion of investment agreement negotiation. Japan concluded one with Mozambique and it went into effect in August 2014. Japan is now negotiating with Kenya, Ghana and Morocco and 
seeking other possible countries for negotiations. 
2.39.  Fourth, working to expanding business opport unities in Africa, Japan dispatched two Public 
and Private sector Joint Missions to African countries (one mission to Republic of Congo, Gabon 
and Côte d'Ivoire from November to December in  2013, and another mission to Ethiopia, Rwanda 
and Tanzania in August 2014).  
2.40.  Fifth, with a view to improving access of the private sector to finance, in January 2014 when 
Prime Minister ABE visited three African Countries (Côte d'Ivoire, Mozambique and Ethiopia), Japan 
pledged to double the amount of the EPSA (Enh anced Private Sector Assistance) loans jointly 
launched by Japan and AfDB (African Developm ent Bank) Group to US$2 billion for 5 years 
from 2012. Through this scheme, Japan already pledged several projects to promote the growth of 
the private sector in Africa. 
MERCOSUR 2.41.  In June 2011, Mr. Takeaki Matsumoto, Minister for Foreign Affairs at the time, participated 
in the 41st Summit Meeting of MERCOSUR for the first time as the Japanese Minister for Foreign 
Affairs. He proposed launching a dialogue as a fo rum for exploring possibilities to promote bilateral 
relations across a wide range of economic fields, including trade and investment. The first meeting was realized in November 2012 and a second meeting is expected to be held in the near future 
between Japan and MERCOSUR. 
2.5  Investment Policy 2.5.1  Program for Promoting Japan as an As ian Business Centre and Direct Investment 
into Japan 
2.42.  Since December 2011, Japan has been implementing the "Program for Promoting Japan as 
an Asian Business Centre and Direct Investment into  Japan". Location subsidies, tax incentives and 
reduced patent fees for R&D sites are being offered under the programme. The authorities stated 
that they had a site location subsidy for glob al companies from FY2010 to FY2014 and the total 
amount of subsidy was ¥4.0 billion.  WT/TPR/G/310 • Japan 
 
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  2.5.2  Outlook 
2.43.  In the Japan Revitalization Strategy (decided by the Cabinet in June 2013), the Japanese 
Government stated that it "will also aim to double the outstanding amount of FDI to ¥35 trillion by 2020 (¥17.8 trillion at the end of 2012)". 
2.44.  From February to April in 2014, the Japanese Government convened the Expert Group 
Meeting on Foreign Direct Investment in Japan five times and compiled a report on challenges to promote investment, taking into account the opinions of foreign companies as well. In April 2014, 
the Japanese Government established the Council for Promotion of Foreign Direct Investment in 
Japan as a new headquarters for cross-ministerial promotion of investment. 
2.45.  Currently, the Council for Promotion of Foreign Direct Investment in Japan strives to make 
cross-ministerial efforts and to carry out the necessary institutional reforms. Diplomatic missions 
abroad and JETRO cooperate in strengthening activities abroad which focus on attracting 
investment projects. In addition, strategic sales pitches are conducted by the Prime Minister and other Cabinet Ministers. 
2.5.3  Investment Agreements 
2.46.  Japan has actively promoted the conclusion of investment agreements as they create stable, 
equitable, favourable and transparent conditions for greater investment through the removal of 
barriers to investment and provision of investor protections. As of September 2014, Japan has 
concluded bilateral investment agreements, and a trilateral investment agreement, with 21 countries and regions as well as EPAs which contain investment chapters with 10 countries. 
2.47.  From the viewpoint of harnessing global demand and making the most of the benefits from 
a movement in the direction of appreciation of yen, Japan places a greater emphasis on the 
enhancement of foreign investment. Against this backdrop, Japan will proactively conclude investment agreements, taking into consideratio n the investment track record, the prospect for 
investment as well as the need to improve investment environment, and thus play a leading role in 
establishing new international investment rules. 
3  TRADE AND DEVELOPMENT 
3.1  Aid for Trade 
3.1.  In order for developing countries including LD Cs to reap further benefit from the multilateral 
trading system, trade liberalization alone is not sufficient. Enhancing capacities on the supply side and encouraging assistance for this purpose is in dispensable. Since Aid for Trade (AfT) initiatives 
contribute to enhancing the trade capacities of developing countries, Japan continues to provide 
various measures for AfT to this end, as well as promoting the "One Village, One Product" movement.  
Japan's Development Initiatives for Trade 
3.2.  Japan announced the "Development Initiative for Trade", prior to the WTO Ministerial 
Conference in Hong Kong, China in December 2005. This Initiative contained: (a) implementation 
of Duty-Free and Quota Free Market Access for e ssentially all products originating from LDCs, 
(b) provision of US$10 billion of financial assistan ce including trade, production and distribution 
infrastructure for three years (2006-2008), and (c) as part of (b), the exchange of a total of 10,000 trainees and experts in trade-related fields over the same period, targets of which were 
fully achieved. During the designated period (2006-2008) of the Initiative, the total sum of 
financial assistance amounted to US$17.66 billion, which more than reached the target at 177%. 
3.3.  Given the successful results of the above- mentioned first initiative, Japan announced a new 
AfT strategy, "Development Initiative for Trade 2009" in July 2009. Its main pillar was 
US$12 billion of financial assistance for trade-related projects including trade, production and distribution infrastructure for 3 years from 2009 to 2011. During the designated period 
(2009-2011) of the Initiative, the total sum of financial assistance amounted to US$23.36 billion, 
which reached 195% of the target, well surpassing the amount of the first initiative. Despite the WT/TPR/G/310 • Japan 
 
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  fact that no additional Development Initiative has been launched since then, Japan has 
continuously been making a strong commitment to AfT as Japan considers it is important to help beneficiary countries meet the new challenges th ey face in the regional and global economy. 
Aid for Trade Asia-Pacific Regional Technical Group 
3.4.  Japan is executing not only a quantitative commitment but also a qualitative commitment 
under the Initiative 2009 which aims for improvement in efficiency of AfT. For instance, Japan has 
been fully involved in the AfT Asia-Pacific RTG (Regional Technical Group) since its inception in 
March 2009. The purpose of the RTG is to disc uss the successful and rich experiences of aid 
activities in the Asia-Pacific region, to glean some  elements of effective aid and to share them with 
other regions, particularly Africa. Japan hosted the Sixth RTG meeting in Tokyo in March 2013 to complete a second report titled "Aid for Trade in Asia and the Pacific: Driving Private Sector 
Participation in Global Value Chains" which highlights the link between mainly the Japanese private 
sector participation in trade capacity building and the ability of firms to plug into value chains and was submitted to the Fourth Global Review in July  2013. As the Co-Chair of the RTG, Japan will 
endeavour to continuously be fully involved in the Seventh RTG Meeting in Geneva in July 2015 
with a commitment to assist beneficiary countries to meet the new challenges they face in the region and regional economy. 
Tokyo International Conferen ce on African development 
3.5.  By welcoming representatives from 53 African nations, including 39 Heads of States, Japan 
has hosted TICAD V, the Fifth Tokyo International Conference on African Development in June 2013. TICAD has evolved into a major and unique global framework for promoting African 
development and has attracted high-level partic ipants both from African countries and their 
development partners. Under the TICAD process, Japan has placed importance on the "quality growth" of Africa and affirmed the importance of  promoting trade and investment through Public-
Private Partnership while recognizing Africa as on e of the most important business regions in the 
world (cf. para 41, 42). 
Assistance to the One Village, One Product Movement 
3.6.  The One Village, One Product (OVOP) is one of the typical approaches under these initiatives. 
OVOP is a movement which supports local economies through the development, improvement and promotion of local products (foods, beverages, text iles & garments, etc.) with the participation of 
local people. This movement was first initiated in a southern prefecture in Japan in the late 1970s 
and later spread to the other prefectures. It has been introduced and has contributed to the 
development of local economies in other Asian countries. 
3.7.  Japan continues supporting this movement, especially the exports of developing countries 
and least developed countries through technical cooperation such as the dispatch of experts, 
educational and training programs to create competitive products, and support through international organizations. In addition, Japan has held exhibitions and trade fairs inviting buyers 
and has also opened shops (OVOP markets) since 2 006 in some of Japan's international airports in 
order to introduce products and encourage shopping. 
3.2  Generalized System of Preferences (GSP) 3.8.  In order to improve market access for deve loping countries, Japan introduced a preferential 
tariff treatment under the GSP scheme on 1 August 1971, and has re-examined it several times 
since then. Furthermore, under the scheme, Japan has granted special preferential treatment to 
LDCs since 1980, including additional products for which preferences are granted only to LDCs. 
Currently, 137 developing countries and 7 territories, including all LDCs, enjoy the benefits of the 
GSP scheme. This scheme has been vastly improved over the last several years, especially in 2007 
and 2011. In the comprehensive "Development Initiative for Trade" launched on 
9 December 2005, Japan announced its commitment to providing duty-free and quota-free (DFQF) 
market access for essentially all products originating from LDCs. Japan is fully committed to implementing the above initiative thus complying with the decision adopted in the Hong Kong, China Ministerial Declaration. In realization of the above-mentioned commitment, on 1 April 2007 
Japan started improved DFQF treatment for LDCs by adding a variety of items to the treatment. As WT/TPR/G/310 • Japan 
 
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  a result, the number of agricultural and fishery products originating from LDCs which receive DFQF 
preferential treatment increased from 497 to 1,523 and that of industrial products increased from 
4,185 to 4,244. Consequently, treatment coverage which was previously approximately 86% has risen to approximately 98% as defined at the tariff line level. On 1 April 2011, Japan extended the 
effective period of the GSP scheme to 31 March 2021. Japan abolished all ceiling-based schemes 
for certain industrial products and revised the criteria for application of competitiveness-focused, product-by-exclusion measures. The revision was made to make the criteria more objective and 
transparent and to allow less competitive developing countries to benefit more from the GSP 
scheme. 
4  JAPAN'S DOMESTIC POLICIES 4.1  Abenomics 
4.1.  The Abe administration has been implementi ng a set of new economic policies designed to 
end the prolonged deflation as soon as possible and revitalize the Japanese economy in an integrated manner. Known as Abenomics, these policies are made up of "three arrows": bold 
monetary policy, flexible fiscal policy, and Growth Strategy that promotes private investment. 
Consequently, the Japanese economy is regaining its robustness, and price trends are no longer pointing to deflation.  
4.2.  The government made Cabinet Decisions on "Basic Policies for the Economic and Fiscal 
Management and Reform 2014", revised "Japan Revitalization Strategy 2014", and "Regulatory Reform Implementation Plan" on June 2014. The most important issues are to further promote 
such positive movement, realize a virtuous cycle of the economy and achieve economic 
revitalization and fiscal consolidation simultaneously.  
4.3.  Under the current economic situation, the consumption tax increase from 8% to 10% 
scheduled in October 2015 will be postponed until April 2017 for 18 months in order to ensure that 
Abenomics succeeds in overcoming deflation and enhancing economic growth. Further, the 
Government will develop a new economic stimulus package to ensure the economic virtuous cycles get on the right track and the fruits of Abenomics spread throughout local economies. Regarding 
the current fiscal situation of Japan, the genera l government's gross debt to GDP ratio exceeds 
200% and it is at the worst level in the world. In order to ensure confidence in Japan's public finance, the government firmly maintains the fiscal consolidation target of a primary surplus by FY2020 and in order to achieve the target, the government will prepare a concrete fiscal 
consolidation plan by next summer. 
4.4.  The revised Growth Strategy includes a large number of further reforms to enhance the 
growth potential of Japan as follows: 
Attracting foreign visitors and inward FDI  
4.5.  Attracting foreign visitors to Japan is an important key to supporting domestic demand. The 
government will continue to take measures such as further deregulation of visa requirements. In 
addition, promoting inward foreign direct investment (FDI) is also essential in order to take global 
growth into Japan. Therefore, the government wi ll strengthen the system to facilitate doubling 
inward FDI stocks. 
Further regulatory reforms in National Strategic Special Zones  
4.6.  With the aim of a significant increase in inward FDI, the Japanese government designated six 
National Strategic Special Zones in May 2014 to  implement ambitious regulatory reforms. For 
example, in the Tokyo area, Kansai area and Fukuoka City, several measures will be taken to 
attract foreign enterprises and promote business start-ups, such as providing clarification of 
employment rules/practices.  WT/TPR/G/310 • Japan 
 
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  Promoting active social participation by women  
4.7.  In order to reduce the number of wome n who leave the workforce due to childbirth/child 
rearing and to increase the percentage of women in  leadership positions, the government will take 
following measures: 
- introducing over 10,000 integrated after-school childcare services/programs and 
installing after-school childcare centres for about another 300,000 children by the end of March 2020. 
- reviewing tax and social security system in 2014 from a standpoint of being neutral 
with regard to how women choose to work. 
4.8.  Together with other measures, the government aims to raise the employment rate of women 
(aged 25-44) from 68% (in 2012) to 73% by 2020 and to increase women occupying leadership 
positions to 30% by 2020. 
Reform in Agricultural sector  4.9.  The government will undertake integrated regulatory reform of the Agricultural Committee 
and others so that highly-motivated and business-minded farmers can pursue more dynamic 
production and operation with taking advantage of various companies' knowledge. With the reform, the government will aim to raise annual exports of Japanese agricultural, forestry and 
fishery products and foods, to ¥1 trillion by 2020 and thereafter to ¥5 trillion by 2030. 
4.2  Intellectual Property Rights 4.10.  On June 7, 2013, the Intellectual Property Strategy Headquarters formulated the 
Intellectual Property Policy Vision (hereinafter referred to as the "Vision"). On the same day, the 
Cabinet adopted the essence of the Vision as the Basic Policy Concerning Intellectual Property 
Policy, and parts of its measures were reflected in the Japan Revitalization Strategy, which is one of the three pillars of the current administration's economic policy. Therefore, intellectual property 
policy is regarded as one of the most important efforts for enhancing Japan's industrial 
competitiveness. 
4.11.  In the Basic Policy Concerning Intellectual Property Policy, since the Intellectual Property 
Strategy Headquarters has celebrated the 10th anniversary of its establishment, in order to review 
the efforts of the past and to build up the world's most advanced intellectual property system, the following three goals have been set. 
- Building up an intellectual property system attracting users and innovation investment 
from overseas 
- Making Japan's intellectual property system become a standard in emerging nations 
in Asia 
- Continuously producing human resources with creativity and strategic capability for 
global intellectual property activities. 
4.12.  Towards these goals, with the following four fields as pillars of the policy for the Vision, 
policy challenges and efforts in the field of intell ectual property are organized, looking at medium- 
and long-term goals approximately ten years into the future. 
- Building up a global intellectual property system for enhancing industrial 
competitiveness 
- Support for enhancing intellectual property management by SMEs and venture 
companies  
- Improving the environment for adju sting to a digital network society 
- Strengthening soft power focusing on the content industry. 
4.13.  In addition, the Government of Japan will implement measures concerning intellectual 
property based on these four pillars and the Visi on, in which long-term policy issues and the like 
will be incorporated according to the four pillars. WT/TPR/G/310 • Japan 
 
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  4.14.  It should be noted that when new policies are needed as situations change in the future, 
this will be reflected in the Intellectual Property Strategic Program formulated as an annual action plan according to this Basic Policy and the Intellectual Property Policy Vision, and these policies will be continuously evaluated so that the Intellectua l Property Policy Vision can be reviewed when 
necessary. 
4.3  Financial Reform Banking and securities sector 
4.15.  To prevent a financial crisis that may spread across financial markets and seriously impact 
the real economy, the Financial Service Agency (FSA) established an orderly resolution regime for financial institutions, which is consistent with the agreement by the G20 Summit countries. In addition, large exposure rules pursuant to intern ational standards will be revised. Furthermore, 
the FSA has made the following of the respective Acts: 
- In order to facilitate a smooth turnaround of business companies, the revised provision 
enables banks to hold a total of 100% of voting rights under certain conditions, as an 
exception of the provision which prevents banks from holding a total of more than 5% 
principally 
- With a view to enhancing the depositor's protection, though the application of the Act 
on Special Measures for Reorganization, etc. was previously limited to foreign local 
subsidiaries, the revised provisions allow an extension to foreign bank branches, etc. 
4.16.  In order to revitalize the Japanese economy, it is crucial to establish measures to enhance 
the overall attractiveness of Japan's financial and capital markets, particularly measures to turn 
household financial assets into investment for growth, and to accelerate and reinforce the growth 
strategy from the financial side. Given this situation, the draft law regarding the amendment of the Financial Instruments and Exchange Act was enacted on 23 May 2014. The points of the 
amendment are as follows: 
1) Promoting the provision of risk mo ney to emerging and growing companies 
 (a) Promoting the use of equity crowdfunding  
 The entry requirements of Financial Instruments Business Operators which handle 
equity crowdfunding under a certain amount are relaxed. In addition, new regulations have been introduced to prevent fraudulent solicitation of investment via the Internet. 
 (b) New trading system for non-listed shares 
 Unlike the current Green Sheet system, the rules applied to ordinary non-listed 
shares are also applied to the new trading system which would be established to 
meet the needs for trading and cashing of non-listed shares, as distribution would 
be restricted to a limited investment group. 
2) Promoting new listings and facilit ating financing by listed companies 
 (a) Reduction of the burden following a new listing 
 For a limited period after listing, companies would be able to choose whether or 
not to have their internal control report audited by a Certified Public Accountant.  
 (b) Facilitation of financing by listed companies 
 When acquiring or disposing of treasury stock, listed companies would not need to 
submit a "Large Shareholding Report". Regarding the compensation liabilities of listed companies to secondary-market investors in connection with false 
disclosures, strict liability would be changed to fault liability. (The listed company is 
liable unless the company itself proves that it was not at fault.) 
3) Ensuring reliability in markets 
 (a) Amendments to regulations concerning sale of partnership rights 
 Type II Financial Instruments Business Operators are prohibited from soliciting 
investment in a partnership right while knowing that the money invested in the partnership is used for other purposes. 
  In addition to the above, they are obliged to establish a domestic office.  WT/TPR/G/310 • Japan 
 
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   (b) Introduction of regulation of financial benchmarks 
  Regulation of administrators of specified financial benchmarks has been introduced. 
Insurance sector 4.17.  "The Act for Amendment of the Insurance Business Act, etc." was enacted in May 2014. This 
Act, in view of enormous change in the busi ness environment surrounding insurance companies, 
mainly includes measures in order to "assure the reliability of insurance" and "develop the insurance market". The measures for assuring the reliability of insurance include (1) requirements 
for insurance companies to understand the client's intentions accurately and to provide necessary 
information for the decision-making of clients, as a fundamental rule regarding insurance solicitation and (2) the introduction of requirements for an insurance agent to establish an appropriate governance structure, etc. The measures to develop the insurance market include 
(1) revising regulations on insurance brokers, (2) revising regulations to facilitate insurance 
companies' adjustment to the current business environment, in terms of communication with clients, etc. 
4.4  Agricultural Reform 
4.18.  In order to address various challenges su ch as the aging of farmers and the expansion of 
abandoned farmland, the government has been impl ementing a "Aggressive Agriculture, Forestry, 
and Fisheries" initiative consisting of industrial policy (making agriculture, forestry, and fisheries 
competitive) and regional policy (securing the benefits of multi-functionality of agriculture such as preserving land). In December 2013, the governme nt established the Plan for Creating Dynamism 
through Agriculture, Forestry, and Fisheries and Local Communities comprising the following four 
pillars: 
1)  Strengthening the production side: reducing production costs by utilizing regional 
government-supported institutions which promote farmland consolidation and phasing 
out the allocation of the rice production quota within five years. 
2)  Securing the benefits of the multi-functionality of agriculture: establishing an original 
direct payment scheme to revitalize rural communities. 
3)  Establishing food value chains connecting producers and consumers: establishing an 
investment fund (A-FIVE) to financially support primary producers who are willing to diversify their businesses, creating a Geogra phical Indication (GI) Protection scheme. 
4)  Increasing food demand: promoting "FBI" strategies ("Made FROM Japan" spreading 
use of Japanese food ingredients globally beyond Japanese cuisine, "Made BY Japan" 
supporting the Japanese food industries for overseas marketing, and "Made IN Japan" 
promoting exports of Japanese food), esta blishing an executive committee of export 
strategy, and meeting new domestic demand through collaboration between 
medical/welfare and food/agriculture fields. 
4.19.  Furthermore, in June 2014, the government revised the above plan based on the discussion 
in the Industrial Competitiveness Council and the Council for Regulatory Reform, incorporating the 
reform of agricultural cooperatives, agricultural committees and agricultural production corporations in it. 
4.20.  In accordance with the revised plan, th e government will promote agricultural reforms 
steadily and review the Basic Plan for Food, Agriculture, and Rural Areas to show the medium- and 
long-term vision of the agricultural policy. 
4.5  Competition Policy 
4.21.  On 7 December 2013, the Antimonopoly Act (AMA) Amendment Bill was approved in the 
185th extraordinary session of the Diet, and the enacted act was promulgated on 13 December 2013. It contains the abolition of the JFTC's hearing procedure and necessary 
revisions to develop procedures for hearings prior to Japan Fair Trade Commission (JFTC) issue of 
administrative orders such as cease and desist orders. The enacted act shall come into force from WT/TPR/G/310 • Japan 
 
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  the date specified by Cabinet Order within a period not exceeding one year and six months from 
the day of promulgation. 
4.22.  The JFTC has been taking rigorous legal actions against violations of the AMA. The number 
of legal cases against such violations amounted to 21 in 2012 and 15 in 2013. (Please refer to the 
Table 4.1) 
Table 4.1 
 2012 2013 
Private monopolization 0 0 
Bid-rigging 19 10 
Cartels (excluding bid-rigging) 0 4 
Unfair trade practices 2 1 
Others 0 0 
Total cases 21 15 
4.23.  The total amount of surcharge payment orders issued by the JFTC was estimated at 
¥23,971.51 million in 2012 and ¥22,974.91 million in 2013. 
4.24.  The JFTC has adopted a proactive policy to in dict violations of the AMA in seeking to impose 
criminal penalties on violators. In June 2012, the JFTC indicted one case. In March 2014, the JFTC 
indicted one case. 
4.25.  In order to strengthen the role of the JFTC  as a guardian of the market, the JFTC increased 
the number of their personnel to 830 in 2014 and most  of them were assigned to the investigation 
section. 
4.6  Services-Related Policies 
4.26.  Japan has promoted reforms in several service-related sectors. 
4.27.  In the maritime transport sector, the to nnage tax was extended until the end of FY2018 
(i.e. March 2019), and the scope of application expanded to include deemed-Japanese-flagged-
vessels.3 
4.28.  Regarding the requirements to use inte rnational accounting and disclosure standards, 
in October 2013, relevant Cabinet Office Ordinanc es were amended to eliminate two requirements: 
"Being a listed company in Japan" and "Conducting financial or business activities internationally". 
As a result, a company may prepare its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) under certain conditions. 
4.29.  As for the telecommunications sector, in keeping with the spread of the smart phone and 
diversification of public wireless LAN, the defini tion of a public wireless LAN access service was 
widened in order to impose obligations on Telecommunications Carriers to explain conditions of offering services when concluding a contract. 
__________  
                                               
3 A deemed-Japanese-flagged-vessel refers to a Foreig n-flagged-vessel operated by a Japanese shipping 
firm and owned by their overseas subsidiaries which can change its flag to a Japane se one immediately in the 
case of an issuing order of navigation in  accordance with Maritime Transport Law.