G/SCM/Q2/JPN/65  
 
24 June 2014  
(14-3647)  Page: 1/2  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
REQUEST FROM THE BRAZIL TO JAPAN 
PURSUANT TO ARTICLE 25.8 OF THE AGREEMENT 
 
The following communication, dated 23 June 2014, is being circulated at the request of the Delegation of Brazil. 
 
_______________ 
  
The MRJ is currently under development by Mitsubishi Aircraft Corporation ("MAC"), a subsidiary of 
Mitsubishi Heavy Industries, Ltd. The developmen t and launch of this new aircraft, if supported 
with subsidies inconsistent with the WTO Agreement on Subsidies and Countervailing Measures, 
would have significant adverse effects on the interests of Brazil and potentially other WTO 
members.  
Brazil would like to confirm that the support bein g provided to the MRJ project by the Government 
of Japan ("GOJ") complies with the WTO Agreement on Subsidies and Countervailing Measures and other international agreements.  
Brazil therefore respectfully requests the follow ing information regarding the nature, source, and 
terms of the official support provided in connection with the MRJ project:  
Question 1 
 Is the "Eco-Friendly High-Performance Regional Jet" programme (The Cabinet Office, Regarding 
Views for 2006 Budget Appropriations for Main Projects by Organizations Responsible for Scientific 
Technology at http://www8.cao.go.jp/cst p/budget/h 17101804.pdf ; NEDO, Requests for Budgetary 
Appropriation of 2003-05 and 2007-08; Presentation on JAXA's Research Activities for 
Environmentally-Friendly Aviation (October 2012)) pa rt of the "Subsidies of Expense to Investigate 
the Development of Next Generation Airplanes, previously notified by the GOJ pursuant to 
Article 25 of the Agreement on Subsidies and Countervailing Measures (G/SCM/N/186/JPN, G/SCM/N/220/JPN), or is it an independent programme? If it is an independent programme, please 
specify the amount of governmental expenditure under that programme on an annual basis, its 
main recipients and conditions for benefiting from it.  
Question 2 
 According to its Disclosure of Information on Subsidy for 2010 and 2011 (April-June), METI provided the Mitsubishi Aircraft Company with approximately 6.6 billion yens under the "Industrial 
Technology R & D". Could the delegation of Japan confirm that information? What are the 
conditions for benefiting from the grants under that programme? Please inform if the budget provided under Industrial Technology R&D (6.6 bi  Yen) was entirely used for the MRJ project by 
Mitsubishi Aircraft Company. If not, please provide details of the destination given to the amount 
received by the Mitsubishi Aircraft Company.  G/SCM/Q2/JPN/65 
 
- 2 - 
 
  Question 3 
 Which companies have received funds under the "R & D for Advanced Flight Control Systems" 
programme (NEDO, 2008 Implementation Policy for the Advanced Flight Control System R&D 
Project under the Aerospace Innovation Program)? Please specify the amount of any expenditure 
under that programme on an annual basis, since 2008, its main recipients and conditions for benefiting from it. 
 
Question 4  Regarding the "Hisho" aircraft testing programme and the "R&D for Highly Efficient Technology for 
Domestic Passenger Planes" programme, both implemented by JAXA, please explain the role 
played by private companies in those projects and specifically in the appropriation of the technology developed. Since one of the five objectives of JAXA, as stated in its website, is to 
"revive aircraft manufacturing as a key industry in Japan", is there any transfer of technology from 
JAXA to Japanese companies? If so, on which terms?  
Question 5 
 Has there been any determination that the MRJ proj ect is commercially feasible without official 
financial support? Please provide any studies or other data indicating whether the project would be 
commercially feasible without official financial support. 
 
__________