. /.  WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/JPN/56/Suppl.1 
19 October 2012 
 (12-5665) 
Committee on Subsidies and  
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Reply to Question Posed by the UNITED STATES1 Regarding the 
New and Full Notification of JAPAN2 
 
Supplement 
 
 The following communication, dated 17 October 2012, is being circulated at the request of 
the Delegation of Japan. 
 
_______________ 
 
 
Question 6 
 
Local Government Subsidies 
 
 Japan only notified four local government subsidy programs, including one program titled Subsidy for Research and Development of Next Generation Technology.  However, it 
appears that there may be other notifiable subsidy programs administered by the prefecture 
governments.  For example, a cursory search of  government web sites in Japan reveals the 
following potential subsidy programs:   
 
(1) Mie Prefecture:  Subsidy for Core Industries;  Subsidy for Valley-related Enterprises and Advanced Industries;  and Subsidies for New Facilities Using Local 
Resources (see, http://www.invest.pref.mie.lg.jp/why/subsidies.html );  
(2) Fukui Prefecture:  grants to high-tech industries (see, 
http://www.jetro.go.jp/en/invest/region/fukui/faq.html );  and  
(3) Wakayama Prefecture:  grants and incentives to high technology and to IT 
enterprises (see, http://www.pref.wakayama. lg.jp/prefg/062200/kigyoe/b4_a.html)    
 
 Please explain why these programs, as well as other Prefecture programs that may exist, 
are not subject to notification. 
 Reply 
 
Japan notifies its programs, which are administ ered not only by the central government but 
also by local governments, in acco rdance with the SCM Agreement.  
 
(1) "Subsidy for Core Industr ies", "Subsidy for Valley-rela ted Enterprises and Advanced 
Industries" and "Subsidies for New Facilities Us ing Local Resources" do not limit access to an 
                                                      
1 G/SCM/Q2/JPN/54.   
2 G/SCM/N/220/JPN.   G/SCM/Q2/JPN/56/Suppl.1 
Page 2 
 
 
  enterprise or industry or group enterprises or indu stries, and the objective criteria or conditions 
governing the eligibility for, and the amount of, each of these subsidies are established by Mie 
Prefecture which spells out the criteria and condition s in its ordinances.  The eligibility is automatic 
and the criteria and conditions are strictly adhered to.  Therefore, these subsidies are not "specific" 
under Article 2 and are not subject to the not ification requirements under Article 25 of the 
SCM Agreement. 
 
(2) The "Grants to high-tech industries" program mentioned on the website of Fukui 
Prefecture is a part of a grants program called "Subsidies for Promoting New Business in Fukui 
Prefecture".  These subsidies do not limit access to an enterprise or industry or group enterprises or 
industries, and the objective criteria or conditions  governing the eligibility for, and the amount of, 
each of these subsidies are established by Fukui Pref ecture which spells out the criteria and conditions 
in its ordinances.  The eligibility is automatic and the criteria and conditions are strictly adhered to.  
Therefore, these subsidies are not "specific" under Article 2 and are not subject to the notification 
requirements under Article 25 of the SCM Agreement. 
 
(3) Wakayama Prefecture's programs mentioned in questions posed by the United States came 
into force in 1 January 2012, and are outside th e period which the New and Full Notification of 
JAPAN (G/SCM/N/220/JPN) covers. 
  
 
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