WT/TPR/M/310  
16 April 2015 
(15-2025) Page: 1/64 
Trade Policy Review Body  
9 and 11 March 2015   
 
  TRADE POLICY REVIEW  
JAPAN 
MINUTES OF THE MEETING  
Chairperson: H.E. Mrs Mariam MD Salleh  
CONTENTS  
 
1  INTRODUCTORY REMARKS BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY THE REPRESENTATIVE OF JAPAN  ................................ .........  3 
3  STATEMENT BY THE DISCUSSANT  ................................ ................................ ................  7 
4  STATEMENTS BY MEMBERS  ................................ ................................ ........................  13 
5  REPLIES BY THE REPRESENTATIVE OF JAPAN AND ADDITIONAL COMMENTS  ............  52 
6  CONCLUDING REMARKS BY THE CHAIRPERSON  ................................ .........................  61 
7  ELECTION OF A NEW CHAIRPERSON  FOR THE TPRB  ................................ ...................  63 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Japan  are reproduced in document WT/TPR/M/ 310/Add.1  and will be available online 
at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/310 • Japan  
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON  
1.1.  The twelfth Trade Policy Review of Japan  was held on 9 and 11 March 2015. The Chai rperson 
H.E. Mrs Mariam MD Salleh (Malaysia) welcomed the delegation of Japan headed by Mr Tomochika 
Uyama , Deputy Director -General, Economic Affairs Bureau, Ministry of Foreign Affairs ; the rest of 
the delegation, including H.E. Ambassador Yoichi Otabe, p ermanent Representative of Japan to the 
WTO; other colleagues from the mission in Geneva; and the discussant,  Mr Jean-Paul Thuillier  
(France) . 
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Japan  was co ntained in document WT/TPR/G/310  
and that of the WTO Secretariat in WT/TPR/S/ 310. 
1.3.  The agenda also included  the election of a new Chairperson of the Trade Policy Review Body 
as set out in WT O/AIR/TPR/1/Add.1 of 23 February  2015 at the end of the second day of the 
meeting .  
1.4.  Japan  had opted for the alternative timeline. Nearly 700 q uestions by the following 
delegations had been submitted in writing at least four weeks in advance and had been 
transmitted to the delegation of Japan: Australia; Switzerland; China; Mongolia; New Zealand; 
Chile; Canada; Mexico; the Philippines; the United States; Costa Rica; Singapore; Turkey; 
Norway; European Union; Chi nese Taipei; the Philippines  on behalf of ASEAN ; Brazil; Hong Kong, 
China; Guat emala; Ecuador; Argentina; and Indonesia . The following delegations submitted nearly 
100 written questions after the four -week deadline: the Russian Federation; Oman; Thailand; 
Colombia; Peru; India; Dominican Republic; Malaysia; Trinidad and Tobago; Repub lic of Korea; 
and El Salvador . 
1.5.  Since i ts last review in 2013 Japan had  been implementing an ambitious reform programme, 
commonly known as "Abenomics ", to overcome deflation and revitalize its  economy. The 
programme consisted  of a "three arrows strategy ": monetary easing; fiscal stimulus; and 
structural reforms, including trade liberalization. In this respect, the Chairperson was sure that 
Members would be interested in learning more about what other steps the authorities were taking, 
or plan ning to take, to  attain sustainable development, as well as their views on Japan 's future 
economic and trade prospects.  
1.6.  Both the Secretariat and Government reports note d that Japan believed  that the multilateral 
trading system (MTS) should play the leading role in the pro cess of trade liberalization, and RTAs 
should be a complement to the MTS. This view was of utmost importance for the MTS as Japan 
was one of the biggest trading countries in the world. However, the Chairperson had noted that 
Japan aimed  to increase its tra de under RTAs from around 19% in 2013 to 70% by 2018.  
1.7.  At the time of the previous TPR, Members had raised questions on: products of export 
interest to developing countries, notably agricultural products, textiles and clothing, leather 
products and footwear , which encounter ed significant tariff peaks, and state trading; the 
complexity and lack of transparency regarding the development and application of technical 
regulations and SPS measures; certain restrictions on foreign access to Japan 's government 
procu rement; and the long -standing restrictions on Japan 's domestic market for food, particularly 
border measures and the relatively high level of overall domestic support for agriculture and the 
level of its fisheries subsidies. Members had also encouraged Jap an to continue reforms to 
enhance competition i n energy and services sectors. These concerns had also appeared in the 
questions posed by Members in the ongoing Review. The Chairperson was sure that these and 
many other themes would be touched upon in great er detail at the deliberations on the first and 
second day of the meeting and they all looked forward to hearing Japan 's responses to these and 
other queries. Of course, Members could wish to ask other issues as well.  
1.8.  The Chairperson closed her introducto ry remarks by wishing Japan a very successful twelfth 
Trade Policy Review. She looked forward to its active engagement in this TPR.  
1.9.  She inform ed that the podcast of this meeting could be accessed on the Members ' website 
after the first day of the meeting.  WT/TPR/M/310 • Japa n 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF JAPAN (MR. TOMOCHIKA UYAMA ) 
2.1.  We would like to begin by thanking all the participants and particularly the Chairperson, 
Her Excellency Ambassador Mariam Salleh. We would also like to thank the discussant, 
Mr Jean-Paul Thuillier, Permanent Representative of France to the WTO, for preparing 
the presentation.  
2.2.  We also thank Director of the TPR Division, Mr. Willy A lfaro and other M embers of the WTO 
Secretariat, especially Mr. John F inn and Mr. Ricardo Barba -Viniegra , for their tremendous effo rts 
to facilitate Japan 's TPR. For this review, we received appr oximately 600 questions from 
34 Members, and we are pleased to have been able to answer almost all of them, including those 
that were  submitted after the deadline.  
2.3.  The Trade Policy Review Mechanism (TPRM) has proved to be extremely effective in ensuring 
the transparency of trade policies and practices of the WTO Members. Japan proposed the 
establishment of the Mechanism during the Uruguay Round negotiations, and we note with a 
particular sense of pleasure the role it has played as an essential part of the multilateral trading 
system during the last two decades. Japan remains committed to this exercise, and looks forward 
to continuing to work with other Members for its eff ective management. We call on other Members 
whose reviews are overdue, to go through the process in the near future.  
2.4.  Japan is a nation that owes its economic prosperity to free trade, and as a major trading 
nation, ranks fourth in terms of total trade volu me, at 151 trillion JPY, or US$1.55 trillion for 2013.   
2.5.  At the last TPR, we presented a preview of Abenomics, announcing that Japan would 
revitalize the economy under the leadership of Prime Minister Shinzo Abe, who had just been 
reappointed at that time.  Today, I am extremely pleased to have an opportunity to give an update 
of our achievements over the past two years, and also touch upon future initiatives.  
Abenomics: a chiev ements and future i nitiatives  
Achievements of Abenomics  
2.6.  Since the  last TPR, which  was conducted two  years ago, Japan has implemented the so -called 
three arro w strategy of Abenomics, namely:  (1) "bold monetary policy "; (2) "flexible fiscal policy "; 
and (3) "growth strategies ". These measures aim to relieve Japan from protracted deflatio n and 
revitalize the economy. Let me give a few figures that illustrate how much we have achieved. 
Corporate earnings have attained a record high, and wage growth, with the avera ge monthly wage 
up +2%  has achieved the highest level in the past 15 years. Th e Nikkei Index at the Tokyo Stock 
Exchange has risen to the highest level since 2000, while ROE, return on equity, for the listed 
companies has risen 50% over the previous two years. Another priority area of Japan 's growth 
strategy is to create "a society in which all women shine ". The number of female workers has 
increased by more than 800 thousand during the past two years. As for the government sector, to 
give an example, two Ministry Bureaus dealing with trade policies are now headed by two ladies, 
mayb e, familiar to many of you.  I am working for one of them, fortunately.  
2.7.  The first of the three arrows is "Bold Monetary Policy ": The Bank of Japan (BoJ)  has pursued 
monetary easing from April 2013. In October last year, the BoJ decid ed on further easing 
measures. Given the recent positive indications towards overcoming deflation, we are expecting to 
realize the price stability target of 2%.  
2.8.  Flexible Fiscal Policy is the second arrow: the Government has implemented flexible fiscal 
policy in order to achieve both economic revitalization and fiscal consolidation. The G overnment 
has decided to postpone raising the consumption tax rate to 10% by 18 months to April 2017, 
taking into account the economic conditions and other factors in a comprehensive manner. 
Moreo ver, the FY2014 supplementary budget, which has passed the Diet in this February, includes 
3.5-trillion -yen exp enditures for implementing the "Economic stimulus package"  decided by the 
Cabinet last December. In addition, based on the FY2015 draft budget, F Y2015 fiscal consolidation 
target i s expected to be achieved. The G overnment is firmly committed to the target of achieving a 
primary surplus by FY2020 and will formulate a concrete plan to achieve this target by this WT/TPR/M/310 • Japan  
 
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  summer. To formulate this plan, our de liberations will be based on the following three pillars, while 
enhancing our current efforts to make progress in fiscal consolidation :  
1. overcoming deflation and revitalizing economy;  
2. reforming expenditure measures; and  
3. reforming revenue measures.  
2.9.  Through these efforts, the Government aims to realize both economic revitalization and fiscal 
consolidation.  
Growth Strategy  
2.10.  In addition to these macro -economic policies, Japan has also focused on its growth -
strategies as the third arrow. They are also generating results. The Cabinet first unveiled its Japan 
Revitalization Strategy in June 2013 and a revised version in June last year, endeavo uring to 
overcome regulatory problems that have constrained the economy for several decades. Target 
areas include agriculture , healthca re and other growth industries.  Reforms are to be implemented 
by measures such as the establishment of National Strategic Special Zones. Please allow me to 
elaborate on a few examples.  
2.11.  First, as part of agricultural reforms, the adjusting mechan ism for the amount of rice 
production that has existed for more t han 40 years will be reformed. In addition, Japan 's 
agriculture cooperatives, which have been in place over the last 60 years, will undergo 
far-reaching  reforms. Through reforms, the G overnme nt intends to urge the agricultural sector to 
be more market -oriented and competitive.  
2.12.  Fundamental reform will be pursued also in the electric power sector for the first time in 
60 years through bringing an end to regional monopolies and liberalization of the energy market.  
2.13.  Furthermore, the G overnment will take steps to create a better environment for FDIs. 
Measures to strengthen corporate governance are already under way, and in June this year the 
Government will implement a corporate governance code as pa rt of reforms. Tax laws will also be 
reformed to cut the effective corporate tax rate by 2.51% in FY2015, as a part of an ongoing drive 
to reduce the rate below 30% while broadening tax base.  
2.14.  In this context, I should note that economic partnership or fre e trade agreements (EPA/FTA) 
and investment agreements, which I will come back to later, also make up an important element 
of the growth strategy; as they will serve as catalysts to promote structural reform inside Japan.  
2.15.  These are some examples of reforms  that Japan is determined to pursue. Underlying such 
unprecedented efforts  is the fundamental concept of "challeng e, transparency, and innovation ". In 
realizing these ideals, an open global economy, underpinned by the multilateral trading system 
that is ce ntral to the work of the WTO, is essential for Japan 's growth strategy to bear fruit.  
Japan 's Trade Policies  
Enhancing the MTS under the WTO  
2.16.  This leads us to Japan 's trade policies and our role in enhancing the multilateral trading 
system. The multilatera l trading system under the WTO is both a fundamental tenet of global trade 
and a main pillar of Japan 's trading policy. Japan remains committed to achieving the full 
compliance of the WTO rules and disci plines by all the WTO Members. To this end, Japan con tinues 
to actively engage in the regular work of the WTO, raising our concerns on trade distorting 
measures in relevant Councils and Committees. Japan is also a heavy user of the dispute 
settlement mechanism participating as a party to t he dispute or as a third party.  We reiterate our 
commitment to these efforts to maintain and strengthen the MTS.  
2.17.  In addition, Japan has played an important role in the DDA negotiations, most recently in 
particular towards the conclusion o f the Bali package at the MC9. When t he adoption of the 
Protocol on the Trade Facilitation Agreement (TFA) was stalled, we exerted every effort through 
opportunities such as APEC and the G -20 at the highest levels to bring the process back on track. WT/TPR/M/310 • Japa n 
 
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  As I speak today, our legislature is in the  process of approving the  Trade Facilitation Agreement. 
Together with other Members, we would like to aim to bring it into force by the 10th Ministerial 
Conference in December this year. Japan attaches much importance to current efforts for the Post 
Bali w ork program me and the conclusion of the DDA negotiations, bearing in mind its significance 
for the credibility of the negotiation function of the WTO.  
2.18.  Plurilateral negotiations are at the same time important, such as negotiations for the 
expansion of the I nformation Technology Agreement (ITA), Environmental Goods Agreement 
(EGA), and Trade in Services Agreement (TiSA), all of which Japan endeavo urs to move ahead. 
Moreover, the revised GPA, which entered into force in 2014, achieved further liberalization in  the 
area of government  procurement among the parties.  Japan played its part through significantly 
improving its commitment.  
Preventing Protectionism, Monitoring  
2.19.  Japan has demonstrated its commitment to refrain from protectionism, and is active in 
interna tional efforts to prevent its spread. Since the 2008 financial crisis, recognizing our 
responsibility as a member of APEC and the G -20, Japan has been  a vocal advocate to this end. 
And here at the WTO, Japan has been active in TPRM to monitor policies  and practices of the 
Members.  
Development and Aid for Trade  
2.20.  Japan is also firmly engaged in the area of development. Recognizing the profound merit of 
having access to global trade, Japan remains committed to support early WTO accession of 
developing countrie s, particularly least -developed countries.  
2.21.  Japan i s the world 's largest donor of "Aid for Trad e" in 2013, and has provided 
approximately US$26.9 billion in aid over the last three years. We recognize the varying needs of 
each of the developing country Memb ers and cultivate their capacities to become self -reliant, 
through initiatives such as infrastructure development and capacity building. Via these initiatives, 
we contributed to improve the trade and investment environment in many countries, which in turn 
supports economic growth by promoting trade and investment and by establishing connections to 
global and regional production networks. Recently, Japan has reviewed its ODA policy framework 
for the first time in 12 years  and, just last month, the new "Devel opment C ooperation Charter " 
was formed.  Today, we are pleased to announce that tackling pove rty reduction through "Quality 
Growth " was placed as a central pillar, where improvement of trade and investment environment 
is critical.  
2.22.  For African countries, Ja pan has led the process of Tokyo International Conference on 
African Development (TICAD), a platform, led by the leaders, for supporting development of Africa 
based on partnership and sol idarity for more than 20 years.  Increasingly, we are seeking ways to 
support trade and investment through developing infrastructure and by mobilizing private sector 
resources.   
2.23.  In the area of assistance related to trade facilitation, Japan has been providing technical 
cooperation for deve loping countries in cooperation  with international organizations, such as the 
World Custom Organization (WCO), to promote trade facilitation through customs modernization.  
Given that procedures by each Member required for the entry into force of the TF  Agreement are 
under progress, Japan wi ll continue our active supports. On these and other Aid for Trade (AfT) 
related topics, we would be pleased to provide further updates at the upcoming Fifth AfT Global 
Review Meeting which will be held in June this year.  
2.24.  In the area of services, at the Hig h-Level Meeting regarding the LDC Services Waiver, Japan 
has indicated what can be provided for services  and service suppliers of LDCs.  Japan will submit a 
notification to the Council of Trade in Services as soon as possible. Japan expects its endeavour  
toward the operationalization of the waiver, which will facilitate the increased participation of LDCs 
in trade in services, along with its continuous efforts of technical assistance a nd capacity building.  WT/TPR/M/310 • Japan  
 
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  EPA/FTA and Investment Agreements  
2.25.  To complement the MTS, Japan is currently developing a  network of WTO consistent EPAs 
and FTAs, and through this network seeks to further  promote trade liberalization. The 
Japan -Australia EPA entered into force in January this year, which marked Japan 's 14th EPA. And 
in Feb ruary this year, the J apan-Mongolian EPA was signed. Since the previous TPR, Japan has 
started negotiations for the Trans Pacific Partnership (TPP), the Regional Comprehensive Economic 
Partnership (RCEP), the Free Trade Agreement among Japan, China and Kor ea, the Japan -EU EPA 
and the Japan -Turkey EPA. Presently, Japan is simultaneously negotiating eight different EPAs.  
2.26.  Japan is pursuing these EPA negotiations not only with the objective of liberalizing trade in 
goods, but also in pursuit of the creation of  comprehensive, high level economic partnerships that 
encompass areas such as services, investments, intellectual proper ty and government 
procurement. Japan also supports appropriate capacity building within the framework of its E PAs 
with developing countr ies. As for investment, Japan is actively pursuing investment agreements as 
well as EPA/FTA that include investment chapters, and has concluded six investment agreements 
and one EPA that includes an investment chapter since the last TPR. Presently Japan is  engaged in 
negotiations to conclude a total of 16 investment agreements or EPAs tha t include investment 
chapters. Those will complement the WTO agreements in the age of globa l value chain.  
Import restrictions on Japanese foods  
2.27.  Before drawing my statement to a close, let me briefly touch upon the developments 
resulting from the Great East J apan Earthquake of March 2011. The earthquake and the following 
tsunamis caused the accident at Tokyo Electric Power Fukushima Daiichi Nuclear Power Plant, and 
in respons e, import of certain Japanese foods was restricted in a number of Members. By now, 
many Members have lifted these restrictions based on scientific assessment. We strongly 
appreciate their objective - and science -based approach to this issue. We would like t o request 
those Members still maintaining the restrictions also to take a science -based approach and to 
eliminate or to ea se their restrictive measures.  
Closing Remarks  
2.28.  In closing, I wish to reiterate that Japan 's economy has benefitted greatly from the 
multilateral trading system, where the WTO plays a central role. This year , the 20th anniversary of 
this O rganization, also marks a particular moment in the history of our country, as the 60th 
anniversary of Japan 's accession to the GATT. Today the world ec onomy is still struggling to 
recover from the global financial crisis, and amidst such uncertainties, the role expected for the 
WTO to provide the foundation of a strong trading system to drive growth and generate jobs is 
important as ever. Our own experie nce in the WTO and the GATT is the source of our conviction 
that further trade liberalization by all Members, now comprising 160 including many developing 
countries, is significant as ever in such testing times. While numerous regional trade arrangements 
have emerged, WTO rules clearly remain the backbone of the global trading system, and the 
Organization is relevant today also owing to its robust dispute settlement mechanism, as the 
unwavering custodian of the rule of law in the area of trade.  
2.29.  Japan is co mmitted to further trade liberalization, and we look forward to actively working 
with all Members to maintain and strengthen the MTS that is central to the work of the WTO .  WT/TPR/M/310 • Japa n 
 
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  3  STATEMENT BY THE DISCUSSANT  
3.1.  It is an honour to have been appointed discussant for  the 12th Trade Policy Review of Japan, 
the world's third largest economy and a key partner for the WTO. Japan is undertaking essential 
reforms in order to deal with an ageing population and to emerge from two decades of economic 
stagnation, making the rev iew a demanding and extremely interesting exercise.  
3.2.  I should first to like to greet Mr  Tomochika Uyama, head of delegation, and the members of 
his important delegation, as well as Japan's Permanent Representative to the WTO, Ambassador 
Yoichi  Otabe, with w hom cooperation is always flawless. I would remind you that my introduction 
and remarks are made strictly in my personal capacity.  
3.3.  As a developed Member, Japan has the opportunity to be the subject of a biennial review by 
the Trade Policy Review Body. This  review is especially relevant, coming one week after the review 
by the OECD's EDR Committee, held in Paris on 2  March, and prior to the IMF's annual Article  IV 
mission, which traditionally takes place in June. The Japanese Government is thus able to take 
advantage of this simultaneous review of all the components of its economic policy by the major 
international organizations and of drawing the lessons and obtaining the support needed for its 
reforms.  
3.4.  The previous review dates back to 2013. It was marked b y the effects of the earthquake, the 
tsunami, and the nuclear disaster at Fukushima (Members noted in this connection that the 
reconstruction required had not led to protectionist measures), and the election of Prime  Minister 
Shinzo  Abe in  December  2012 ha d been too recent to allow the 2013 review to make a first 
assessment of the radical reorientation of economic policy decided by the new Government. As the 
representative of  Japan indicated in his replies, the Japanese  Government was acutely aware that 
"other measures, especially belonging to the so -called third arrow category, namely, formulation 
and implementation of  a new growth strategy, including substantial structural reform should follow 
in a timely manner".  
3.5.  The time has now come and my statement wil l focus on this aspect in order to evaluate the 
progress made since 2013, calling on Members which wish to do so, as a complement to the 
statements by the Chair and the representative of Japan, to look at the particularly enlightening 
statement by my  prede cessor, Ambassador Jonathan  Fried, on the importance of Japan 
("Japan  Matters") in the economy and world trade (third GDP at the global level, second overseas 
investor worldwide, fourth exporter and importer in the world), as a leading actor at the WTO 
involved in regional agreements consistent with the rules of the multilateral system, and as the 
foremost exponent of Official Development Aid.  
3.6.  Bearing in mind these strong points, the Japanese  Government is well aware of the structural 
challenges raised by t he decline in Japan's international ratings in terms of wea lth, employment 
and innovation  which call for a certain number of in -depth reforms on which Mr  Shinzo Abe's 
Government, is working.  
3.7.  The economic environment has changed fundamentally since the prev ious review, with the 
development of an ambitious reform programme.  
3.8.  Known as "Abenomics", the reform programme has had at least one outstanding success: the 
media endorsement Prime Minister Shinzo  Abe has received by putting his name to the reforms 
like a trademark and by metaphorically returning to the familiar scenario of the 
pre-Meiji civilization, the "way of the bow" ("Kyudo"), meditation in action, which means going 
beyond oneself, with arrows directed towards three main objectives: a monetary policy that takes 
account of quantitative and qualitative monetary easing, with a price stability target of 2% to 
escape the trap of deflation, and in return a substantial increase in the monetary base; a second – 
fiscal – arrow that combines a short -term recover y strategy with the objective of fiscal 
consolidation in the medium term; and a third arrow intended to restore the potential for growth, 
with a series of detailed structural reforms covering the labour market, the capital market 
(regulatory framework, fin ancial services, banking and insurance), the market for goods (notably 
agricultural goods) and the market for services.  WT/TPR/M/310 • Japan  
 
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  3.9.  In more detail, the "third arrow" has four targets in order to achieve precise objectives with 
some key indicators:  
- revitalize the eco nomy by promoting investment in terms of capital for production and 
the creation of start -ups accompanied by regulatory and institutional reforms (the 
target is 10 % for business start -ups, as in the United  States and the United  Kingdom, 
instead of the curr ent rate of 5 %); 
 
- meet the challenges of an ag eing population by making better use of labour 
resources: raise the rate of women's participation by 2020 (according to the OECD, 
the employment rate for women is 21 % lower than that for men, 43 % of women wit h 
a child have a job, women account for 70 % of informal jobs, 3 % of women sit on 
boards compared to 20 % in Canada or the United  States), lower the number of those 
unemployed for over six  months over five years, double the number of foreign 
students by 2020 , from 60,000 to 120,000;  
 
- create new markets, particularly in the health sector, including the development 
of medical research and the pharmaceutical industry, to accompany the aging of the 
population by 2020;  
 
- lastly, to reinforce global economic int egration in order to foster the expansion 
of Japanese firms abroad, encourage FDI and promote regulatory reform by setting up 
National Strategic Special Zones.  
 
3.10.  As to the fourth component of the third arrow, which most directly affects trade policy, 
Member s will note that the Government has adopted some key indicators to which we shall return 
in our statement: raise the volume of trade covered by regional trade agreements to 70 % by 2018 
(as against 19 % at present), double the volume of FDI by 2020, attract 30 million tourists 
in 2030.  
3.11.  With regard  to the existing network of preferential agreements, these are indicated in the 
report by the Secretariat and the statement by Japan, but Japan's change of tack in terms of its 
participation in the negotiation of meg a regional preferential agreements such as the Trans -Pacific 
Partnership (TPP), the Regional Comprehensive Economic Partnership (RCEP) and the Partnership 
Agreement with the European Union should be noted.  
3.12.  Concerning the inflow of FDI and Japan's attractiv eness, although it is the second biggest 
investor in the world, the stock of FDI in Japan itself compared to GDP is the lowest among 
OECD  countries, and flows continue to be much lower than those recorded by other large 
developed economies: according to UN CTAD, following negative figures for 2010 and 2011, the 
inflow of FDI in 2014 was US$2.3  billion, whereas the United  States and China recorded 
US$188  billion and US$124  billion, respectively. The Revitalization Strategy sets a target 
of doubling FDI by 202 0. The challenge is clearly to move towards a situation in which the entry 
of FDI from overseas is welcomed as a source of innovation rather than a threat, and to remove 
the obstacles identified, such as the difficulty of  setting up businesses and recruiti ng skilled 
personnel, or the mergers and buy -outs regime. In  this respect, the 2013 law on the creation 
of National Strategic Special Zones (the Tokyo and Kansai zones as business and innovation hubs, 
Niigata, Yabu and Fukuoka as reform centres for agricul ture and employment, and Okinawa for 
tourism) raises questions as to the value added to be expected from a zoning logic compared to 
a policy of horizontal attractiveness applicable to the country as a whole, as well as what practical 
benefits await investo rs deciding to set up there.  
3.13.  There is a consensus that the structural reforms combined with opening up of trade are 
essential for accompanying the policies of monetary easing and fiscal stimulus.  
3.14.  Concerning the main macroeconomic indicators, the IMF, the O ECD and the Secretariat all 
highlight the mixed results at this stage of the monetary and fiscal measures launched since 2013 
under the "first" and "second" arrows.  
3.15.  Although growth was stronger in 2012 and 2013 than in 2011, the results remain fragile 
with the recession that occurred in the second and third quarters of 2014. The most recent 
forecast by the OECD puts growth at 0.1 % for 2014 (0.9 % in the Secretariat report) with WT/TPR/M/310 • Japa n 
 
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  an estimated 1.3 % in 2015 and then 1.0 % in 2016, far from the forecasts by the Go vernment and 
the Bank  of Japan in  2013. 
3.16.  As far as the inflation target is concerned, the average annual rate of inflation was 0.4 % 
in 2013, rising to 1.1 % in 2014 (excluding the higher consumption tax), with an estimate of  2% 
for 2015 according to the IMF,  consistent with the Bank of Japan's targets, but it could have an 
impact on the sharp fall in the cost of importing energy and commodities. The  price index, 
excluding the consumption tax, fell by 0.5 % in December  2014 and in a  more recent forecast the 
OECD is less optimistic with an inflation figure of 1.4 % for 2014 (but only 0.5 % according to the 
underlying "core CPI" inflation indicator, excluding food and energy), to be followed by an estimate 
of 1.1 % and 1.6 % for 2015 and 2016, respectively.  
3.17.  Fiscal sta bility remains a medium -term objective, with estimates for the primary deficit 
(central  government and regional authorities) of 6.9 % for 2014, 5.9 % for 2015 and 5.1 % for 
2016, making fiscal consolidation measures inevitable if the aim of a balanced budget by 2015 and 
stabilization of public debt is to be achieved (estimates for 2016 show indebtedness of 233 % 
as against 226 % in 2014).  
3.18.  The effects of the monetary easing ("the first arrow") on the trade balance have so far been 
mixed, with a record deficit in 2013 (US$118  billion). According to the latest figures from the 
Ministry of Finance (February  2014), Japan's current surplus has fallen once again compared to 
2013 because of insufficiently strong exports needed to offset the higher cost of energy caused b y 
the depreciation of the Yen against the dollar ( -38% in 2013 and 2014), the trade deficit being 
offset by higher returns on Japanese investments overseas. The  IMF (July 2014) notes the 
combination of temporary and structural factors, tending to indicate the continuation of a trade 
deficit in the medium term: a slow response to currency fluctuations, temporary capacity 
constraints and the expansion of imports caused by the consumer rush before the tax increase, 
but also the impact of energy imports, the ef fect of  Japan's integration into global value chains 
through FDI placed massively in Asia, with production and sales by Japanese subsidiaries 
exceeding direct export, and the slowdown in demand for consumer goods from Japan. In this 
connection, Members rai sed few questions concerning the impact of the weaker Yen on exports, 
which denotes a clear understanding of  the macroeconomic reasons for the policy of monetary 
easing.  
3.19.  This indicates that the monetary and fiscal instruments are not enough unless they are  
combined with reform. The IMF and the OECD agree that structural reforms are needed and that 
trade and investment are the preferred two channels of transmission to ensure the medium -term 
success of  "Abenomics". In the first half of 2014, for example, the expected increase in the 
consumption tax led to a boom in sales, followed by a predictable decline as salary increases did 
not suffice, and external demand was unable to make up the gap. The  growth strategy led to a 
predictable outcome, namely that monetar y easing and fiscal stimulus are not enough to revive 
the economy in the long term. Such measures may have an impact in the short term but cannot 
take the place of structural measures.  
3.20.  In order to remain dynamic and overcome internal resistance, including that within the 
administration and the prefectures, in 2013 the Government introduced the Revitalization 
Strategy, revised in June  2014, overseen by a so -called revitalization unit under the direct 
authority of the Prime Minister, identifying ten key refor ms. A large number of laws have been 
adopted (reform of the anti -monopoly law, reforms of governance in enterprises, the intellectual 
property framework, amendments to the government procurement regime, etc.), but basic 
regulatory reforms still have to be made, and some objectives published in June  2014 as part 
of the revised Revitalization Strategy aiming to make Japan a world -class business centre by 
attracting large global companies may appear timid, especially as  regards enhanced workforce 
participation , particularly of women, use of foreign workers or the number of foreign students 
(the target being to increase their number from 60,000 to 120,000 by 2020; just as an example, 
in France there were 289,000 foreign students in  2012).  
3.21.  In this connection, alt hough the population reaffirmed its support for "Abenomics" by a large 
majority at the  general elections in December  2014, called by the Prime Minister, it can be seen 
that the Revitalization Strategy aims to complete a certain number of reforms by 2018 -2020 
rather than 2015. While bearing in mind the need for gradual progression that is inherent in  any 
structural reform, special attention should be paid to the risk of a time -gap in the launching of the WT/TPR/M/310 • Japan  
 
- 10 - 
 
  "arrows", dissociating monetary and fiscal measures wi th a short -term effect if the price -salary 
ratio does not improve, from reforms likely to have the most long -term effects on the economy's 
growth potential.  
3.22.  In addition, the major shift undertaken by Japan since 2012 in favour of mega regional 
agreements has not yet reached the conclusion and implementation stage. The current network of 
13 regional trade agreements noted in the Secretariat report has been completed by the 
agreement with Australia signed in July  2014 and entered into force in January 2015. I n order to 
boost growth, opening up trade can be a catalyst for opening up Japan's economy (the 
merchandise trade/GDP ratio is 28%, the share of goods and services is 16.9% and that of imports 
19.5%). Nevertheless, the key indicator of  70% coverage of trad e by FTAs by 2018 needs to be 
spelled out because under the existing agreements a certain number of sensitive sectors are 
excluded or are the  subject of quotas and progressive liberalization, notably in agriculture (rice, 
dairy products, meat, fish), but a lso other sectors such as leather and footwear. The Secretariat 
also notes that these products are also often excluded from the autonomous GSP scheme or are 
subject to higher rates (with an average of  13.9% for the GSP scheme compared to 14.9% MFN 
rates fo r agricultural products).  
3.23.  At this stage, Japan's trade regime remains marked by considerable stability even though 
the changes announced open up interesting possibilities as far as new orientations are concerned.  
3.24.  A more specific comment on the relationship  between the trade policy framework and the 
internal structural reforms identified as essential in the labour and agricultural spheres and in 
some services (energy, transport, financial services) would be particularly enlightening for the 
purposes of our r eview and for Members' understanding of the way in which Japan's authorities 
intend to use the pressure and external leverage of trade negotiations to raise the growth potential 
and move ahead with reforms, even if analysis of the implications of  this prog ramme for Members 
is the responsibility of the next Trade Policy Review, planned for 2017.  
3.25.  Despite the ambitions of the "third arrow", the Secretariat notes the considerable stability 
of trade practices as regards customs regulations and procedures, the MF N tariff structure, the 
GSP schemes, the legislative and regulatory framework for contingency trade measures, the legal 
framework for standards and technical regulations, sanitary and phytosanitary standards, labelling 
of food products, export procedures a nd regulations.  
3.26.  Japan is an active Member of the WTO, giving priority to the agreement on trade facilitation 
and taking an active part in the negotiations on concluding the Doha agenda, as well as in 
plurilateral initiatives such as the Government Procurem ent Agreement, the Information 
Technology Agreement and the negotiations on environmental goods. It has a predictable tariff 
regime, with a  large degree of binding and low average rates (5.8 % in 2014 while bound rates 
were 5.9 %), although the highest rates  and sometimes compound tariffs apply to agricultural 
products (15.2 %). Members often draw attention, however, to non -tariff barriers, either because 
the regulatory framework is frequently stricter than international standards, or because the 
practices of certification bodies are still complicated for foreign operators.  
3.27.  Moreover, Japan makes little use of trade defence measures (only one anti -dumping duty 
in force and one investigation under way).  
3.28.  Among the important linkages between the trade policy framew ork and the reforms to be 
covered in the debate, reflecting the questions raised by Members, I would like to draw attention 
to the following in particular : 
- The impact of the current negotiations on mega regional agreements on the 
regulatory framework in the goods sector, ranging from automobiles to agriculture, 
and in the services sector: these comprise a large regulatory component and the 
negotiations can facilitate the reform of some agencies, help in narrowing the gap 
between Japanese and international  standards and in mutual recognition of 
conformity, while at the same time maintaining the level of public security and heath 
(especially in the food sector), also constituting a response to aggressive interests (for 
example, in automobiles, pharmaceutical s and medical equipment, or environmental 
technology), and improving the consistency between regional preferential agreements WT/TPR/M/310 • Japa n 
 
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  and the WTO, particularly the TBT and SPS components, as advocated in the Japanese 
Government's report.  
 
- The ambitious trade agr eements represented by the TPP and the EPA with the 
European  Union can boost structural adjustment in the agricultural sector by opening 
it up. The sector is marked by a high level of tariff protection, with notable tariff peaks 
for some products (the Secr etariat notes that the standard deviation is 26.5 for 
agricultural tariffs and the maximum ad valorem equivalent tariff is nearly 300 %). 
This sector raises the most questions and Members are fully aware of its political and 
cultural importance, even if it only accounts for 1 % of GDP. The Strategy calls for 
an aggressive agricultural policy with the aim of doubling both farmers' incomes and 
exports over ten years. This means raising productivity by restructuring the size of 
farms (the average area was 2.12 h ectares in 2013), putting demography to use 
(according to the OECD, 56 % of farming households are over 70 years of age) in 
order to rejuvenate the sector and to encourage full -time farmers to set up (only 16 % 
of farming households engage in farming full ti me and 36 % do not have any real 
commercial activity), by reorganizing the cooperative system and financing, reforming 
the Japan Agricultural Cooperatives Group (JA), whose cooperative organization is 
sometimes presented as an  obstacle to change in the sect or by maintaining a 
population of occasional farmers or those engaging in non -competitive part -time 
farming, and whose financial arm JA -Zenchu (deposits of 100  billion  yen) is 
accompanied by tax and regulatory exemptions.  
 
- It is also essential to reform the controlled price scheme and price support 
mechanisms: the OECD considers that income support for farmers' accounts for 56 % 
of total revenue, three times the OECD average.  
 
3.29.  It would be interesting if the representative of Japan could explain in more det ail the 
timetable for these reforms, their impact on the level of support, and their relationship to the 
preferential negotiations.  
- The manufacturing sector is not mentioned in the Secretariat report or the statement 
by Japan, although it accounts for 27 % of GDP (2013). It has traditionally been a 
strong point (automobiles, electronics, electrical equipment, transport systems, 
pharmaceuticals, chemicals …  ), showing Japan's important share of global FDI and its 
integration into global value chains. Tariff  protection in this sector is either low or 
non-existent, except for a few peaks, but the need to encourage innovation, 
modernize the enterprise framework, assist the creation of SMEs and forge stronger 
links with international markets by fostering its ope ning up is an integral part of the 
reform programme . The automobile sector is a reflection of Japan's excellence, and 
could serve to illustrate the measures awaited as tariffs are 0 %, combining fiscal 
reform ("Kei -cars"), the zoning needed to build up a ne twork of dealers and regulatory 
harmonization ending specific approval procedures, about which Members posed some 
questions.  
 
- Lastly, the services sector, which accounts for 72.6 % of GDP, is the principal sector in 
which converge the objectives of raisin g productivity, improving women's employment 
and attracting foreign investment. The linkage between the reforms announced and 
the leverage of trade agreements in strengthening economic integration will no doubt 
be decisive. The previous report mentioned th e wholesale trade sector, termed 
"sclerotic" by Ambassador J.  Fried, and telecommunications, in which technological 
inconsistency resulted in lack of competition and high costs, as two sectors needing 
in-depth reform in  order to enhance growth potential, a nd wondered about the reform 
of the energy sector following the Fukushima disaster. It would be helpful to hear the 
Japanese delegation regarding the reforms carried out, as well as those in the 
financial services and insurance sector, for which various re forms were announced in 
2014 with the aim of  making the Japanese economy more attractive and financing of 
the economy more flexible. The question of postal services and the status of Japan 
Post Bank and Japan  Post Insurance raised by some Members in connec tion with the 
2012 law on privatization of postal services remains posed as regards the timetable 
for implementation.  WT/TPR/M/310 • Japan  
 
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  3.30.  As a complement to this statement, it may be of interest to read the reports for 2013 
("the Fourth  Arrow") and 2014 ("Taking Action") of t he European Business Council in Japan. 
For enterprises, time does not have the same meaning as for governments and economic spheres 
are always impatient to see policies translated into their day -to-day business without delay, but 
the representative of Japa n and Members will note that many of their key recommendations 
respond to certain aspects dealt with here: mutual recognition of standards, the adoption 
of international standards, lowering non -tariff barriers, especially specific labelling requirements, 
liberalization of  competition and non -discriminatory treatment in some services sectors, broader 
opening up to competition in government procurement, improved terms for foreign investment.  
3.31.  The Japanese Government is fully aware of the challenges to be met, the adjustments to be 
made and the many advantages it has. I have no doubt that this review will help to give it further 
clarification and will reinforce its determination to set Japan on the new paths it has itself traced  WT/TPR/M/310 • Japa n 
 
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  4  STATEMENTS BY MEMBERS  
AUSTRALIA  
4.1.  Australia and Japan enjoy a strong and highly comp lementary trading relationship.  We work 
with Japan across a range of international bodies, including the WTO, to advance  our respective 
trade agendas. Australia and Japan are also close partners in the G -20 and we look forward to the 
opportunity to work more close ly with Japan on trade liberaliz ation, and other economic stimulus 
measures in 2015.  
4.2.  Japan is Australia 's second -largest export market, and will remain a very important trading 
partner for the fores eeable future.  Japan is also Australia 's third mos t important investment 
partner.  
4.3.  Australia welcomes the Abe g overnment 's efforts to revitaliz e the Japanese economy, as 
outlined in Japan 's G-20 Comprehensive Growth Strategy and in the government 's other  recent 
policy pronouncements. The Comprehensive Growth Strategy contains a number of ambitious 
structural reform measures with implica tions for Japan 's trade policy.  These include not only the 
goal of increasing the proportion of Japan 's trade covered by fre e trade agreements, but, perhaps 
even more importantly, reforms in areas of domestic economic policy such as agriculture, 
infrastructure, healthcare and employment – these have the potential to significantly in crease 
Japan 's external trade. Australia and m any other countries have a major stake in the success of 
these historic reforms, and we strongly en courage Japan to press ahead.  
4.4.  For Australia, finaliz ation of the landmark Japan -Australia Economic Partnership Agreement 
(EPA) in 2014 was one of the most im portant bilateral achievements for many y ears. We are very 
pleased to report that the Economic Partnership Agreement rec ently entered into force, on 
15 January 2015. The EPA is by far the most ambitious trade deal that Japan has ever concluded , 
particularl y in agriculture. Within ten years, more than 97 % of Australia 's exports to Japan will 
receive preferent ial access or enter duty -free. We look forward to continuing to work with  Japan 
towards further liberaliz ation on goods, services and investment in area s where market access 
barrier s remain, to maximiz e the benefits to Australian and Jap anese consumers and producers. 
These ongoing efforts will contribute to the continued vitality of the b ilateral economic relationship.  
4.5.  Australia believes the EPA is also a n important step towards the completion of other trade 
negotiations, including the Trans -Pacific Partnership (TPP) and the Regional Comprehensive 
Economic Pa rtnership (RCEP) negotiations. We value the close working relationship we have with 
Japan in both t he TPP and RCE P. Ambitious, balanced, WTO -consistent TPP and RCEP agreements 
will be good for Australia and for Japan and, together, will also provide a substantial step towards 
realising the vision of a Free Tr ade Area of the Asia -Pacific.   
4.6.  Australia app reciates Japan 's efforts to use trade negotiations to help drive agricultural 
reform and we welcome the small, positive steps that have been  taken on agricultural policy. 
Despite this, and acknowledging Japan 's good record of compliance with its WTO commit ments in 
agriculture, Japan 's agriculture sector still remains highly protected, with prohibitive tariffs and 
TRQs, high levels of domestic support spending, state -trading arrangements and many oth er 
behind -the-border barriers. We look forward to more ambi tious actions  as part of the reform 
process.  
4.7.  Australia and Japan are both strong supporters of th e multilateral trading system. Australia 
values the close cooperation we have with Japan here in Geneva, including in the post -Bali 
discussions, ITA expansion,  the Trade in Services Agreement negotiations and the Environmental 
Goods Agreement. Australia also wishes to acknowledge the important work done by Japan in 
support of trade facilitation in the Asia -Pacific region, p articularly in South -East Asia.  This in cludes 
the technical assistance Japan has provided bi laterally and as part of APEC. This work has played 
an important, positive role in facilitating trade flows in the region, as well has helping to bring the 
Trade Facilitation Agreem ent to a successful co nclusion.  
4.8.  We look forward to continued engagement and leadership by Japan in the WTO in the lead -up 
to MC10.  WT/TPR/M/310 • Japan  
 
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  4.9.  Australia asked Japan many questions on a range of sectors and we would like to thank Japan 
for its responses to these questions. We wish Japan a s uccessful Trade Policy Review.  
SWITZERLAND  
4.10.  At Japan 's last Trade Policy Review in February 2013, we looked back over two years of 
recovery after North -Eastern Japan 's earthquake, tsunami and nuclear catastrophes with a severe 
financial impact. At the same time, Japan engages in d aring monetary and spending pro grammes. 
The effects of these stimuli seemed to have tapered off during the course of last year as domestic 
consumption weakened due to a tax rise and stagnating wages. Despite a relatively weak yen, 
Japan's world - class export industry struggles with weak demand and has consecutively shifted 
investment and production abroad. Meanwhile, other sectors of the domestic economy continue to 
suffer from old structural weaknesses and a lack of competitiveness.  
4.11.  On the bilateral level, economic relat ions between Switzerland and Ja pan remain important, 
even though the shift away from production in Japan means that many "Japanese " consumer 
goods reach our market no longer from Japan. Here again, the changing patter ns of value chains 
show the shortcomings of bilateral trade statistics. My G overnment will con tinue to work closely 
with the G overnment of Japan, not least through direct dialogue in the context of our bilateral Free 
Trade and Economic Partnership Agreemen t.  
4.12.  Turning to the TPR at hand, Switzerland had submitted a series of questions in writing and I 
would like to thank the Japanese d elegation for the respective answers we have received last 
week. We are currently examining them with great interest.  
4.13.  Switze rland's questions cover a broad range of topics. In the light of Japan 's difficult 
economic situation and very high debt -to-GDP ratio, we had asked questions regarding the 
phasing out of the fiscal stimulus and the quite low income tax rates for individual s. Furthermore, 
as the Japanese G overnment states the goal to double inward FDI by 2020, our questions covered 
ways to remove obstacles to the cross -border movement of investments.  
4.14.  Switzerland believes that competition policy is an important instrument to provide a level 
playing field among domestic and foreign competitors. We therefore raised questions regarding the 
changes in Japan 's Anti -Monopoly Act and the rather numerous and sometimes wide -ranging 
exemptions from the prohibition of cartels.  
4.15.  A last set  of questions relates to agricultural policy, a field where Switzerland and Japan 
share similar interests. In particular, we are interested in Japan 's considerations to open further 
the extensive coverage of its GSP scheme to include certain products in wh ich developing countries 
would have a comparative advantage.  
4.16.  Before I conclude, I would like to highlight the important, active and constructive role of 
Japan in the WTO. For exporters of high -value, high -technology goods and services like our two 
countrie s, a strong rules -based system, as provided by the WTO, remains essential. We look 
forward to pursuing and further enhancing our already very close cooperation in this regard.  
CHINA  
4.17.  Japan remains one of the world's largest economies and also a major player  of the WTO. 
Since the last review, the Japanese Government has introduced expansionary fiscal and monetary 
policies. While promoting growth of the Japanese economy in the short term to some extent, those 
policies also aroused worrying problems. For exampl e, in 2013, the share of public debt in its GDP 
has reached 240%, ranking the first among developed economies. Moreover, the spillover effect 
triggered by the sharp fluctuation in JPY exchange rate shall not be ignored.  
4.18.  We have notice d that the Japanese G overnment believes that the existing policies are 
insufficient for strong and robust economic growth, and it is necessary to solve the structural 
problem by means of structural reform. We expect the Japanese G overnment to adopt effective 
policies to expedi te economic growth and make positive contributions to the regional and global 
economic recovery.  WT/TPR/M/310 • Japa n 
 
- 15 - 
 
  4.19.  Japan is an important Member of the WTO. In its G overnment statement, Japan states that 
it will endeavo ur to implement the Trade Facilitation Agreement (T FA). We hope that the Japanese 
Government could take TFA as an impetus to further liberalize trade and investment, and make its 
contributions to the conclusion of Doha Round.  
4.20.  With regard to Japanese measures and regulations on trade and investment, we would lik e 
to highlight the issues that the Chinese industries have greatest concerns. These are about Japan 's 
TBT and SPS standards. International regulations and standards in Japan are adopted at a 
relatively low level compared with other dev eloped M embers. Only about half of Japanese 
Industrial Standards (JIS) are based on the existing international standards, and requirements set 
by some domestic standards are much more rigorous than those of international practices, which 
has brought negative effect on trade. I n light of provisions as required by the TBT and SPS 
agreements, we expect Japan to use the international standards as a basis for its technical 
regulations, otherwise sufficient rationale and scientific basis should be provided, so as to remove 
the unnece ssary obstacles to international trade while protecting safety of consumers.  
4.21.  China and Japan are important trade and investment partners to each other. China has been 
the biggest trading partner of Japan since 2007, and Japan was the second largest trading  partner 
of China in 2013. However, there are still a range of problems less favo urable for the bilateral 
economic and trade cooperation. Taking this opportunity, we 'd like to draw your attention to a 
couple of them.  
4.22.  With regard to export control imposed by Japan on China, during the recent years, Japan 
has introduced the so -called CATCH -ALL system in its export control regime and even some goods 
outside the export control list were subject to this new system. At present, Japan include s 
17 Chinese entities  into its export control list. This practice largely affects these Chinese entities 
doing commercial business with their counterparts in Japan. These measures are unfavo urable for 
long-term development of the bilateral economic and trade relation, and we u rge Japan to revoke 
this unilaterally applied regime.  
4.23.  The second point is business visa facilitation. For staffs of the enterprises with Chinese 
investment in Japan, the formalities for visa application, especially multiple -entry visas, are very 
complicate d, with high thresholds for the applications, which has restrained China 's investment 
expansion in Japan. Japan is strongly advised to extend facilitation to employees of these 
enterprises, and build a more favo urable business environment. .  
4.24.  We thank the J apanese delegation for their reply to the questions raised by China, which we 
will go through carefully.  
4.25.  Last but not least, I would like to express my sincere gratitude for the effective work and 
great contribution Madam Mariam Salleh has made, as the Ch air of TPR body in the previous year. 
We really appreciate it.  
REPUBLIC  OF KOREA  
4.26.  I am pleased to note that the bilateral economic relations between Korea and Japan remain 
strong. The bilateral trade volume has expanded 400% compared to fifty years ago. In  2013, 
Japan and Korea were each other 's third largest trading partner, with bilateral trade reaching 
US$94.7 billion. With respect to FDI, Japan was the second largest investor in Korea with 
US$2.7  billion, and Korea 's outbound investment to Japan amounte d to US$690 million US dollars. 
All these figures demonstrate a very close economic partnership that will continue to grow and 
develop in the future.  
4.27.  Turning to Japan 's overall economic performance during the period under review, I wish to 
note that Japan 's GDP showed positive growth in 2012 and 2013. I also commend the efforts of 
Japan towards revitalizing its economy amid the overall global economic downturn and increasing 
vulnerability, including a general slowdown in the Eurozone and emerging markets as  well as 
vulnerability in some oil producing countries stemming from lower oil prices. I would also like to 
underline that, in order to get the global economy back on track, major economies including Japan 
must regain their full strength and vitality as so on as possible.  WT/TPR/M/310 • Japan  
 
- 16 - 
 
  4.28.  Now, I wish to refer to the observation of the Secretariat report that Japan 's expansionary 
economic policies alone have been insufficient to achieve strong economic growth. In this context, 
we recognize that Japan has carried out substanti al structural reforms since 2013. While sharing 
the view that far -reaching structural reforms are necessary to address Japan 's long -standing 
problems such as high public debt, a rapidly aging population, high cost of doing business and 
regulatory barriers,  it would be advisable for Japan to continue to take steps toward structural 
reform, including further trade and investment liberalization and measure to stimulate 
competition.  
4.29.  In addition, I share the concern expressed in major international fora, includi ng the G -20 
summit held in Brisbane last year  that given the interconnected nature of the global economy 
through financial and trade linkages, due attention should be given to the so -called spillover or 
reverse -spillover effects of monetary policies.  
4.30.  We ha ve submitted advance written questions to Japan. The questions posed by my 
delegation range from Japan 's monetary policy to some of its new policies on foreign investment, 
corporate tax and competition policy. Our questions also touch upon TBT and SPS -related issues, 
including the JIS mark requirement for domestic sales and the JAS mark management system. We 
thank the Japanese delegation for providing answers to those questions, which we will review 
carefully.  
4.31.  Japan 's overall simple average MFN tariff rate was as low as 5.8% in 2014, which further 
declined from 6.3% in 2012. Despite this apparently liberal tariff regime, Korean exporters, even 
including globally competitive ones, have experienced significant difficulties in accessing to the 
market of the wor ld's third biggest economy, due to Japan 's NTBs, just as discussant Ambassador 
Thuillier mentioned.  
4.32.  We note that Japan 's NTBs range from strict and complicated domestic regulations, TBT and 
SPS measures and business practices to more explicit forms like im port quotas on Korea 's export 
interests such as seaweed and fishery products. Korea remains keen to work with Japan to address 
those issues surrounding NTBs and the persistent trade deficit.  
4.33.  Finally, my delegation also notes with satisfaction Japan 's commi tment to the multilateral 
trading system embodied in the WTO, and its strong support for and participation in the current 
Doha round of negotiations. Korea has been and will continue to work closely with Japan in the 
areas of the DDA and plurilateral negot iations. With this, I would like to conclude by expressing my 
sincere appreciation to the Japanese delegation for its hard work and wishing Japan every success 
in its TPR.  
MONGOLIA  
4.34.  We thank the delegation of Japan for submitting reply to our question on J apan's SPS and 
TBT requirements.  
4.35.  Japan is an important and long -standing trading partner of Mongolia. The Government of 
Mongolia attaches a great significance to further vitalizing the bilateral cooperation with Japan in 
trade and economic areas.  
4.36.  Japan is  the fifth -largest source of imports for Mongolia, after China, Russia, the United 
States and the Republic of Korea.  
4.37.  Mongolia and Japan have been maintaining closer and ever expanding economic relations. 
Bilateral trade volume between the two countries ha s been growing in the recent four decades 
reaching US$392.2 million in 2014.  
4.38.  In Mongolia the import from Japan was US$367.7 million as of last year, Mongolia 's export 
to Japan was only US$24.4 million. Taking this into account, our two countries stress th e 
importance of promoting two -way trade flow. Japan provides preferential access to imports from 
Mongolia under their Generalized System of Preferences arrangements.  WT/TPR/M/310 • Japa n 
 
- 17 - 
 
  4.39.  A significant step has been made recently between the two countries to strengthen bilater al 
economic relations. In February, 2015 Japan and Mongolia have signed a free trade agreement - 
Japan -Mongolia Partnership Agreement (EPA) - after having several rounds of productive 
negotiations. The EPA is the first free trade agreement for Mongolia. Mo ngolia believes that 
establishment of this agreement provides a significant opportunity for Mongolia to join the regional 
economic integration as well as to enhance the liberalization and facilitation of bilateral trade and 
investment with Japan in a range  of important sectors.  
4.40.  Mongolia is pleased to see Japan 's leading and constructive role in the multilateral trading 
system. We hope that today 's TPR will provide a good opportunity for both Japan and its trading 
partners, including Mongolia, to assess the  progress and impact of Japan 's trade policy on the 
functioning of th e multilateral trading system.  
4.41.  We also would like to express our appreciation again to the delegation of Japan for their 
hard w ork in preparing for this TPR.  
4.42.  On behalf of Mongolia I wou ld like to wish a very productive and successful Trade Policy 
Review to Japan.  
NEW  ZEALAND  
4.43.  New Zealand welcomes this opp ortunity to participate in the Trade Policy R eview of Japan. 
New Zealand is fortunate to have Japan as one of its longest standing and most important trading 
partners. Our trade is highly complementary and forms the basis of a strong, bilateral economic 
relationship. Given this background, New Zealand takes a close interest in Japan 's trade policy and 
ongoing reform agenda.  
4.44.  New Zealand we lcomes Japan 's policies fo r economic revival and liberaliz ation and 
congratulates Japan on its decision to undertake such far reaching reforms. Under Abenomics, 
embedded economic structures are being re formed with the aim of revitaliz ing the Japanese 
econo my. This is clearly a difficult process. The end goal , however , should produce tangible 
economic benefits for both Japan and its i nternational economic partners.  
4.45.  New Zealand has also appreciated the greater attention Japan has placed on regional and 
bilate ral trade negotiations, such as the TPP and RCEP negotiations. The successful conclusion of 
such high quality agreements offer participating countries such as New Zealand and Japan deep 
economic benefits, which will best be realised through a high qua lity, comprehensive agreement. 
New Zealand remains optimistic that positive liberalisation experiences under such RTAs will give 
momentum to our work here in Geneva and support global trade reform rather than b e seen as a 
direct alternative.  
4.46.  New Zealand values our cooperation with Jap an across the work of the WTO. While we 
inevitably do not always see eye to eye on all issues, Japan 's constructive approach in both the 
regular work of the WTO and in the past 14 years of DDA negotiations has helped to move the 
work of the organisation forward. As one of the world 's largest economies, Japan carries a key 
responsibility to show leadership within the WTO, and with the deadline for conclusion of the post -
Bali Work Programme looming we look forward to benefiting further  from this leadership in the 
coming months.  
4.47.  New Zealand has posed a number of advance written questions to Japan, and is consid ering 
its responses carefully. Our questions covered a number of areas including ag riculture and 
fisheries issues.  
4.48.  New Zealand en courages Japan to intensify its efforts on agricultural reform. Population 
decline in rural areas, the increasing average age of farmers, and continued high subsidisation of 
agricultural sectors all paint a worrying picture for the fu ture of Japanese agric ulture.   
4.49.  We welcome Japan 's efforts to reform land tenure and cooperative structures, as a means of 
removing some significant constraint s on agricultural productivity.  The challenge is to create an 
environment where the agricultural industry can apply the  same ingenuity and efficiency that 
Japan 's industrial and manufacturing sectors have become so renowned for. The lesson from WT/TPR/M/310 • Japan  
 
- 18 - 
 
  Japan 's success in other industries is that exposing agriculture to market mechanisms and global 
competition can spur c ompetitiven ess and innovation. This would reduce the fiscal burden of 
agricultural support, raise incomes in rural areas, and turn agriculture into a competitive growth 
sector than can contribute to the wider economy a nd compete on the global stage.  
4.50.  New Zealand has a  long record of engagement wi th Japan in primary industries.  As Japan 's 
agriculture sector embarks on a period a change, New Zealand seek s to deepen its collaboration. 
Our two Prime Ministers ' commitment to a "Partnership in Food " in July  2014 has already borne 
fruit.  
4.51.  Japan is a significant global player in the fisheries sector, as an importer, a consumer, a 
fishing nation and in terms of the subsidies it provides to its sector . New Zealand appreciates the 
reporting of Japan 's programmes affecting fisherie s under the SCM Agreement and its engagement 
on Members ' related questions. New Zealand notes, however, that the income stabilization 
measure and a cost reduction measure that cover the fisheries sector, introduced in 2011 and 
2010 respect ively, have yet t o be notified.  It is not clear to us from Japan 's response to our 
questioni ng when these will be notified.  
4.52.  Given the context of the 2012 Rio+20 commitment to further improve the transparency and 
reporting of existing fisheries subsidies programmes through the WTO, and the WTO Secretariat 's 
recent invitation to Members to submit new and full notifications by 30 June, we feel it timely for 
Japan to include these two measure s in its upcoming notification.  
4.53.  Despite the many challenges that Japan has faced over t he last five years, we are 
encouraged by Japan 's perseverance and commitment for economic change and revival. We 
further welcome the contribution Japan has made to the multilateral trading system to date and 
look forward to it continuing to play a leading role in global trade.  
CHILE  
4.54.  Chile's bilateral relationship with Japan is Chile's oldest and most institutionalized 
relationship with Asia, since it dates back to 1897. It is both strong and deep in the political, 
economic, trade and cooperation spheres.  
4.55.  In the political sphere, bilateral ties at the highest level have grown stronger. More recently, 
in July  2014, a second meeting was held between Prime Minister Abe and 
President  Michelle  Bachelet, both of whom are in their second term of office.  
4.56.  There are ma ny areas of cooperation with Japan, including energy, mining, and science and 
technology research. Of special note is our cooperation in the field of natural disasters, which 
is covered by a Memorandum of Understanding and includes a joint earthquake and t sunami 
prevention and early warning project.  
4.57.  As regards trade, the relationship has been driven by our Strategic Economic Partnership 
Agreement, which entered into force on 3  September  2007 and was the first to be signed between 
Japan and a South  American country. We are pleased to report that an inter -sessional 
meeting  of the Committee on Trade in Goods was held this past January to deepen the coverage 
of the Agreement.  
4.58.  In 2014 trade between Chile and Japan totalled US$10.035  billion.  
4.59.  Japan is the fourth l argest investor in Chile. Between 1973 and September  2014, Japanese 
investment in Chile totalled US$10.225  billion. While nearly 85% of Japanese capital has been 
invested in the mining industry, the sectors receiving investment have become more diversified  
in recent times.  
4.60.  Regarding this trade policy review, we are pleased to note that the Japanese economy 
remains robust, open and transparent.  WT/TPR/M/310 • Japa n 
 
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  4.61.  As regards the reports submitted today for consideration by the TPRB, the Secretariat's 
finding that progressive im provements to the Authorized Economic Operator scheme have led 
to a significant reduction in the release time for import cargoes is very interesting.  
4.62.  We would, however, like to point out some elements that we believe merit further attention 
from the Member  under review. For example, the report indicates that of the 104  highest tariffs, 
96 had non -ad valorem  rates. With regard to the tariff lines subject to tariff quotas, 150  are 
out-of-quota tariffs whose average rates differ considerably, and the quota all ocation method and 
process remains somewhat intricate.  
4.63.  Moreover, tariffs are higher for agricultural products than for other products, and they vary 
considerably among agricultural products.  
4.64.  Japan therefore has a relatively complex tariff structure which c ould create an element 
of unpredictability for business operators.  
4.65.  Concerning agriculture, the Secretariat report notes that "a high degree of government 
support and protection has meant that small -scale farming remains profitable", although it goes 
on to add that the result is an inefficient agricultural sector.  
4.66.  The report refers to OECD indicators and states that despite changes in agricultural 
programmes, the support and protection given to agriculture in Japan is high compared to other 
countries and is provided by a comprehensive set of policies, including market price support which, 
along with other transfers based on output and inputs, is classified as potentially one of the most 
production - and trade -distorting forms of support.  
4.67.  Given the singularitie s and sensitivities surrounding this sector, we hope that Japan will 
consider further liberalizing its agricultural sector. This will undoubtedly lead to increased 
competitiveness and benefits for domestic consumers.  
4.68.  In terms of the economy and internation al trade, our two countries share common views 
on the importance of market liberalization for development and prosperity. This is the spirit 
in which we both became founding Members of this Organization and signatories to the GATT. 
In this Organization we have taken on a number of initiatives together, most recently the 
challenge of advancing an agreement on trade facilitation that would result in further market 
opening and facilitate the integration of SMEs in global value chains.  
4.69.  Chile hopes that within t he current WTO context Japan will continue playing a constructive 
and leading role, with its typical pragmatism, patience and perseverance, in the completion 
of the work programme, with a view to making the next Ministerial Conference in Nairobi the 
succes s we all want.  
CANADA  
4.70.  I welcome the succin ct review of recent developments provided by Japan in its Government 
report.  
4.71.  The thorough analysis in the Secretariat report, Ambassador Thuillier 's insightful comments, 
and the written questions raised by various Members cover much of the ground, so permit me to 
focus only on what I consider to be a few key considerations.  
4.72.  Since Japan 's last Trade Policy Review, the policies of Abenomics have indeed sought to 
stimulate private investment, consumer consumption, and economic growth. And with the first two 
arrows of Abenomics in motion, expansionary monetary policy and flexible fiscal policy, there have 
been some positive signs of economic recovery, including record corporate earnings and the lowest 
unemployment rate i n almost 20 years. But these short term measures cannot mask the need in 
the medium and long term to achieve fiscal consolidation to tackle Japan 's still -growing debt to 
GDP ratio, in accordance with the Government 's target to achieve a primary surplus by 2020. 
4.73.  I know Japan 's decision -makers are acutely aware of more fundamental, longer -term 
challenges as well. Japan 's declining and rapidly aging population will impact the broader economic WT/TPR/M/310 • Japan  
 
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  outlook, social security system, and Japan 's relationship with the r est of the world. Canada 
supports efforts underway to increase female participation in the labour market and to increase 
the percentage of leadership positions held by women. These measures will help address a 
looming labour shortage. The easing of immigra tion policies, starting in the Special Economic 
Zones, also has the potential to mitigate Japan 's demographic and economic challenge. Speaking 
from experience, immigration has greatly enriched Canada 's social fabric, and has contributed to 
our long term pr osperity and economic growth.  
4.74.  But our focus is on trade policy  where the "third arrow " is key. Most observers say this set 
of policies is lagging. Canada urges Japan to pursue structural reform without delay by 
implementing planned reforms in areas such as  agriculture and energy, and addressing looming 
labour shortages. For example, in agriculture, while recent steps toward reform, including to 
adjust the structure and powers of Japan 's Association of Agriculture Cooperatives (JA), or 
Zen-Noh, can help enha nce productivity and competitiveness by allowing more flexibility at the 
local level, much more can be done to reduce restrictions, including by reducing agricultural tariffs 
to ensure the highest quality and greatest variety of goods to Japanese consumers  at competitive 
prices.  
4.75.  In procurement, while Japan has ratified the Revised WTO Agreement on Government 
Procurement, current procedures and practices favour companies physically present in Japan. 
Canada encourages Japan to further facilitate international  competition in its government 
procurement market. For example, the standardization of technical requirements would help spur 
greater competition from foreign firms, resulting in more choice and lower costs. A more open 
government procurement system would also support the Government 's goal to double inward FDI 
stock by 2020.  
4.76.  As for services, Canada and Japan share a common objective in the context of the Trade in 
Services Agreement (TISA) negotiations: to conclude a high -quality and forward -thinking 
agreeme nt on trade in services that would provide our services suppliers with increased access to 
and legal stability in TISA markets. Liberalization in such areas as professional services, and the 
development of rules on telecommunications and financial services , can help spur the domestic 
consumption and job creation that Japan seeks.  
4.77.  Permit me also to highlight three positive trade policy developments over the last two years. 
First, we note the work Japan has undertaken, as set out in its Intellectual Property Policy Vision, 
to raise awareness of the importance of IP within small and medium -sized enterprises, and to 
provide support for IP activities and acquisition of rights for their use overseas. We are similarly 
committed to enhancing the Canadian Intellectua l Property Office 's business services that raise IP 
awareness, and we value the recent dialogue between our respective IP agencies to share our 
experiences in these areas.  
4.78.  Secondly, we view the conclusion of Japan 's Wood Use Points Program in September 201 4 
as a positive step, and look forward to learning more about how Japan plans to implement its 
"Aggressive Agriculture, Forestry and Fisheries " initiative.  
4.79.  Thirdly, we note the goal Japan has set itself in the "Japan Revitalization Strategy " to raise 
the p ercentage of its trade covered by free trade agreements to 70% by 2018. We welcome 
Japan 's embrace of an ambitious programme of multilateral and bilateral trade negotiations, 
including key WTO initiatives. Japan is a constructive partner in negotiations on  the expansion of 
the WTO Information Technology Agreement; as I mentioned on the Trade in Services Agreement; 
and on the Environmental Goods Agreement.  
4.80.  With respect to regional and bilateral negotiations, we are firmly committed to working with 
Japan and other partners to conclude an ambitious, comprehensive, and high -standard TPP 
agreement as soon as possible. We are equally committed to accelerating our bilateral Economic 
Partnership Agreement (EPA) negotiations with Japan, which offers an important vehi cle to achieve 
liberalization tailored to our bilateral relationship, particularly in areas of mutual interest such as 
energy and natural resources, agriculture and agri -food products, and manufactured products.  
4.81.  As Canada 's former Ambassador to Japan, I ca n attest to the fact that since the 
establishment of our diplomatic relations over 85 years ago, the Canada -Japan friendship has WT/TPR/M/310 • Japa n 
 
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  grown into a strong and dynamic partnership based on shared values, significant two -way 
investment, and strong bilateral flows of technology, knowledge, goods and people. Canadian and 
Japanese citizens share rich people -to-people ties thanks to diverse commercial, cultural and 
academic exchanges. In recent years, Canada and Japan have deepened their cooperation in a 
wide range of areas including energy, peace and security, aid and development, as well as 
humanitarian and disaster response. Japan also continues to be our largest source of Foreign 
Direct Investment (FDI) from Asia, and our fifth largest bilateral merchandise trading partner in 
the world.  
4.82.  Canada is looking forward to a constructive exchange of views on all aspects of Japan 's 
economy, and we wish the Japanese delegation well in this review.  
MEXICO 
4.83.  Mexico is pleased to note Japan's efforts to overcome the adverse effects  of the 
tragic  natural disasters that took place in 2011, which have hampered but not halted its 
economic  development.  
4.84.  Trade is one of the cornerstones of the Japanese economy, accounting for approximately 
30% of its GDP and making Japan one of the world's  leading markets. Its endeavours to promote 
foreign trade are reflected in its prominent position as one the five largest importers and exporters 
of goods and services worldwide. Since the previous review, Japan has implemented a number 
of trade facilitati on measures, including the common portal for the next generation single window 
and mutual recognition arrangements on authorized economic operator programmes. As a result, 
the World Bank ranks Japan 20th out of 189 economies in terms of ease of trading acr oss borders.  
4.85.  It is worth noting the impressive development of Japan's telecommunications sector 
in terms of mobile broadband and optical fibre penetration and its migration towards new 
technologies. We commend Japan for its strategy, revised in 2014, to ma ke it the world's most 
advanced country in the field of information and telecommunications.  
4.86.  Mexico welcomes the ambitious reform programme (Abenomics) implemented by Japan 
to revive the economy. The programme is based on a "three arrows" strategy: monetary  easing, 
flexible fiscal policy and structural reforms. We have full confidence in Japan's ability to achieve 
its objectives.  
4.87.  While Japan ranks as the world's third largest economy, its real GDP growth rate over the 
past three years has been 1.5% or less, and rates of 0.9% and 0.8% are forecast for 2014 and 
2015, respectively. The main challenges that triggered Japan's "lost decade" in 1990, namely the 
rigidity of the labour market, demographic factors and public debt, are still present today. Japan 
should adopt new policies, such as those outlined below, in order to reverse sluggish growth 
and increase productivity.  
Stabilizing the labour force  
4.88.  Japan's labour force, that is, persons between the ages of 15 and 64, is decreasing by just 
over one  million peopl e per year. Some forecasts suggest a decline of 17% by 2030 and of almost 
40% by 2050. In order to mitigate this problem, it is important for Japan to increase the 
participation of women and foreign workers. According to some economists, if in 20 years the re 
is an equal representation of men and women1, labour supply will decrease by only 5%.  
Improving the business environment  
4.89.  According to the World Bank, Japan ranks 120th out of 189 economies for starting 
a business, which reflects its low business dynamis m. While efforts to encourage young people 
to set up farm businesses are important, these businesses have to be internationally competitive 
and present no significant barriers to trade. Japan should improve its corporate governance 
by promoting labour mark et flexibility and mobility and revitalizing risk capital investment in order 
to support business creation and innovation.  
 
1 The current rates of male and female participation in the workforce are 84% and 63%, respectively.  WT/TPR/M/310 • Japan  
 
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  Reviving foreign investment flows into Japan  
4.90.  Inward FDI stock fell from 4.2% of GDP in 2008 to 3.5% in 2013, i.e. the lowest among 
OECD countries. Hence it is important to review, inter alia , the high level of income tax applied 
to corporations and the rigidity of the labour market.  
Increasing SME efficiency  
4.91.  While SMEs accounted for 74% of employment and more than 50% of value added 
in 2012, they currently suffer from low productivity and profitability. The net profit margin is only 
1.5%, compared to 6.2% for large businesses.  
The agricultural sector  
4.92.  The Japanese agricultural sector is one of the most protected. Average tariffs in the 
agricultural sector are almost five times higher than in the industrial sector (15.2% vs. 3.7%) and 
Japan ranks 85th among countries with the highest average applied tariff in this sector. Support 
remains among the highest, focusing on market price support p rogrammes, which are some of the 
most production - and trade -distorting forms of support. SPS and TBT requirements are often more 
strict than international standards, meaning that the costs of meeting Japan's quality and safety 
standards can be high.  
4.93.  Japan' s participation in mega -regional trade agreements could help its agricultural sector 
move towards a system that is more in line with market rules.  
Public debt  
4.94.  We believe that the measures provided for under the second arrow of Abenomics 
(reducing  public de bt) are a step in the right direction. However, the VAT increase from 5% to 8% 
in 2014, and the planned increase to 10% in 2017 in order to increase government revenues and 
control government debt, will affect demand and hence economic growth, as shown by the 
estimated GDP growth rate of 0.9%  for 2014.  
4.95.  Before concluding, we would like to thank Japan for its answers to our questions and wish 
the Japanese delegation a successful conclusion to this review.  
THE PHILIPPINES  ON BEHALF  OF ASEAN  
4.96.  ASEAN notes the Sec retariat 's observation on Japan 's persistent trade deficit since 2011 
with the biggest annual trade deficit in 2013, due to the highest level of imports ever recorded 
partly on fossil fuels being a major factor as they replaced energy from nuclear power fo llowing 
the Fukushima incident and the subsequent shut -down of other nuclear power plants. Even so, this 
has not lowered Japan 's ambitions and they remain to be an open and transparent economy, 
which shows as they have continued to pursue concluding and en hancing their FTAs, in particular 
the signing of their FTA with Australia and Mongolia as well as their active participation with other 
RTAs, where in the case of ASEAN, Japan is a part of the Regional Comprehensive Economic 
Partnership Agreement (RCEP) ne gotiations. Also, not forgetting to mention Japan 's dynamic role 
in the work of the WTO.  
4.97.  ASEAN and Japan continue to be important trading partners, particularly as Japan is third 
largest trading partner for ASEAN, down one spot from being ASEAN 's second la rgest trading 
partner in 2012. As of December 2014, total trade amounted to about US$240 billion from 
US$300  billion in 2011. Positive trends also continue in other areas such as total inward 
investment in ASEAN and we hope these positive figures continue.   
4.98.  ASEAN and Japan signed the ASEAN -Japan Comprehensiv e Economic Partnership in 
April 2008 which covers trade in goods, trade in services, investment and economic cooperation. 
ASEAN and Japan marked the fortieth anniversary of ASEAN -Japan Dialogue relations  by holding a 
Commemorative Summit in December 2013 in Tokyo, Japan, where Leaders adopted a Joint 
Statement and an Implementation Plan that serves to further strengthen cooperation to support 
the ASEAN Community -building and contributes to the ASEAN Commu nity Post -2015 Vision.  WT/TPR/M/310 • Japa n 
 
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  4.99.  At the 17th ASEAN -Japan Summit, held in Nay Pyi Taw, Myanmar last year, our Leaders 
reiterated our commitment to double trade and investment flows by 2022, attaching the 
importance to the ASEAN -Japan Economic Forum, the C ommemorativ e Summit, held on 
15 December 2013 mentioned earlier and recognised the important contribution of industry and 
academia to the ASEAN -Japan 10 -year Economic Cooperation Roadmap.  
4.100.   ASEAN is happy to note that Japan remains an active participant in the multila teral trading 
system and has been supportive of the need to push forward towards a successful conclusion of 
the DDA negotiations. ASEAN would particularly like to thank Ambassador Otabe and his 
delegation for their tireless efforts and constructive engagem ent with delegations, including 
individual ASEAN Members, here in Geneva. We look forward to working closely with the 
delegation of Japan to realise the post -Bali Work Programme and a successful outcome for MC10.  
4.101.   Finally, s ome ASEAN m ember States have subm itted written questions to Japan 's 
delegation and would like to thank them in advance for their written responses.  
4.102.   In conclus ion, on behalf of ASEAN member S tates, we would like to express our 
appreciation for Japan 's continued and constructive partnership  and we wish them every success in 
their Twelfth Trade Policy  Review.  
THE PHILIPPINES  
4.103.   Since 2012, Japan has been implementing an ambitious reform programme to overcome 
deflation and revitalize its economy after more than a decade of sluggish performance. T he 
programme consists of a "three arrows strategy " that includes: monetary easing; fiscal stimulus; 
and structural reforms in areas such as agriculture, energy and healthcare.  
4.104.   The first of the three "arrows " was a fiscal boost of ¥10.3 trillion yen, follow ed by another 
spending package worth ¥5.5 trillion yen in April 2014. Now, the other facets of "Abenomics " are 
being exploited. After all, an expanding Japan is in the best interest of the Philippines while a 
growing Philippines is  in the best interest of Japan.  
4.105.   In 2013, Japan was the Philippines top trading partner. Japan was the Philippines top 
export market contributing to 21.25% share of total Philippine exports. Conversely, Japan was 
ranked as the third largest import source comprising 8.37% share in t otal Philippine imports. In 
terms of investments, Japan contributed the largest share for the year 2014 acc ounting for 19.1% 
of total FDI.  
4.106.   The Philippines and Japan mutually participate in both countries ' renewal following the 
disasters that occurred. The Philippines is an important source of products and services related to 
Japan 's reconstruction while Japan supported the Philippines ' priority development initiatives, 
includi ng the development of Mindanao.  
4.107.   The past years also marked sig nificant progress in  Philippine –Japan trade cooperation. Let 
me go through some of them:  
(1)  People -to-people connectivity has been greatly enhanced with the signing of the 
Philippines -Japan bilateral Air Services Agreement. The Philippines is more than ready for 
this vigorous p eople-to-people exchange with over 14 daily flights between Manila and 
Tokyo and other major Japanese cities already in place. My government recognizes this 
development with interest and looks forward to Japan 's relaxation of its visa entry 
requirem ents fo r Philippine nationals.  
(2)  The Philippines supplies Japan 's caregiving requirements for its aging population through 
access to nursing and caregiving practice through our Economic Partnership Agreement. 
We hope that more consideration will be afforded to ou r trainees to facilitate an 
immediate fulfilment to this important demand in the Japanese market.  
(3)  Sending IT Professionals to Japan is something the Philippines would like to encourage 
and this could be greatly facilitated if the approval cycle of the ce rtificate of eligibility 
(COE) would take a shorter time.  WT/TPR/M/310 • Japan  
 
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  (4)  The Philippines would appreciate cooperation on the implementation of the SPS 
Agreement, particularly through a Mutual Recognition Arrangement (MRA), so Philippines ' 
export products can fulfil Japan's SPS standards.  
4.108.   The Philippines recognizes the mutual benefits gained from the implementation of the 
Philippines -Japan Economic Partnership Agreement and shares the need to continue our efforts 
towards the General Revi ew of the Agreement this year.  
4.109.   In view of the above, I am happy to convey that the "three arrows " that Prime Minister 
Abe had fired extended not only to Jap an but also to the Philippines.  
4.110.   The Philippines congratulates Japan for its 12th trade policy review and would like to  wish 
the dele gation, led by Mr  Tomochika Uyama , Deputy Director -General of the Economi c Affairs 
Bureau, a successful Trade Policy R eview. Our appreciation also goes to the Secretariat for 
preparing a compreh ensive report and H.E. Mr  Jean-Paul Thuillier (France) for his  insightful 
comments as discussant.  
4.111.   In closing, Madame Chair, I would like to join others in congratulating you for you r efforts 
as Chair of the TPRB.  
UNITED  STATES  
4.112.   Japan is a vital strategic and economic partner to the United States, and a key figure in the 
global trading system. We welcome Japan 's commitment to pursuing ambitious, high standard 
international trade rul es, as exemplified more promine ntly in its participation in Trans -Pacific 
Partnership talks. In addition, Japan 's strong role as a member o f APEC further supports our 
mutual interest in promoting a broad trade liberalization agenda.  
4.113.   Within the WTO, the United States highly values its close working relationship with the 
Government of Japan and Japan 's long -time support for the rules -based mult ilateral trading 
system embodied by the WTO. We also note Japan 's continued contributions to working through 
WTO institutions to ensure that unilateral introduction of new protectionist measures does not 
undermine the important progress the WTO has made in  opening markets around the world.  
4.114.   We also appreciate the strong working relationship with our teams on the ITA expansion 
negotiations, and share the view that the negotiations should be finalized as soon as possible, so 
that we can move on to the importan t work of implementing an agreement and gaining its 
benefits. We also note Japan 's important leadership role in the TiSA negotiations.  
4.115.   In the two years since the last Trade Policy Review, Japan has continued to bring new 
Economic Partnership Agreements int o force, most recently with Australia. However, we note the 
low level of ambition reflected in the agricultural component of its new agreement with Australia. 
The same could also be said of Japan 's most recent EPAs with Peru and India. As a global leader 
with important responsibilities within the world trading system, we look to Japan to demonstrate a 
higher level of ambition in future free trade agreements, particularly the Trans -Pacific Partnership.  
4.116.   The United States greatly appreciates Japan 's efforts to  undertake structural reforms that 
will boost domestic growth to the benefit of Japan and the entire global trading community. In 
particular, the United States commends Prime Minister Abe 's efforts to reform the Japanese 
agriculture sector. As he succinctl y explained, "Sweeping reforms of agriculture policy can wait no 
longer. " Indeed, the reforms of agriculture cooperatives that he has proposed are historic —if 
successfully implemented, they will be the first in six decades. These long -awaited domestic 
reforms coupled with agriculture market liberalization steps taken through the Trans -Pacific 
Partnership create the prospect of a new era for Japanese agriculture.  
4.117.   Meaningful structural reforms in Japan will lead to increased productivity, provide a 
renewed en gine for economic growth, and help ameliorate global trade imbalances. The Prime 
Minister has highlighted a number of other areas for reform, including ones relating to corporate 
governance, medical care, taxes, government reorganization, and labo ur market s. With regard to 
regulatory reforms, the Prime Minister has recognized that bold regulatory reform will boost 
Japan 's productivity and raise Japan 's global competitiveness.  WT/TPR/M/310 • Japa n 
 
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  4.118.   We applaud the Prime Minister 's vision and commitment, and support his efforts to 
promote reform and mutually beneficial economic expansion. In this context, Japan 's participation 
in the Trans -Pacific Partnership negotiations could substantially contribute to Japan 's objectives for 
economic reform and growth, including the success of th e Prime Minister 's "third arrow, " the 
objective of which is to advance structural reform of the Japanese economy. The Prime Minster 
himself recently noted the TPP 's importance, explaining that completion of trade and investment 
deals such as the TPP "are among the most urgent tasks we face. " And in 2013, he observed that 
the TPP is a framework that promises "prosperity in the future " in the Asia -Pacific.  
4.119.   With a renewed electoral mandate, we remain hopeful that the Abe administration will 
continue to underta ke ambitious domestic regulatory reforms and other structural measures to 
stimulate competition and new economic opportunities. Renewable energy is also an area where 
we hope to see increased market access. Further, although Japan 's industrial tariffs are generally 
low, significant non -tariff barriers remain. As a result, the United States continues to look to Japan 
to take new, bold steps to increase transparency, reduce unnecessary regulation, and remove 
other non -tariff barriers to trade.  
4.120.   From this persp ective, one key priority that the United States continues to urge Japan to 
address is to ensure a level playing field and equivalent conditions of competition between Japan 
Post and the private sector in the insurance, banking, and express delivery sectors . We will watch 
closely the privatization of Japan Post as it unfolds later this year. Another priority area is for 
Japan to ensure that its SPS measures are based on science and consistent with international 
standards. The United States also urges Japan, among other steps, to remove non -tariff barriers 
that impede foreign automotive manufacturers ' ability to compete on a level playing field with their 
Japanese competitors; take actions to ensure Japan 's information technologies and 
communications market is  open and promotes fair competition; ensure transparent and fair 
opportunities for foreign companies to compete for government procurement contracts; and 
ensure equivalent access for foreign companies to qualify for government -funded fiscal and 
incentive p rograms offered in specific sectors.  
4.121.   The United States appreciates Japan 's support for expanding global trade and its 
commitment to the multilateral trading system. The United States looks forward to continued close 
cooperation with the Government of Japan  in working towards a more open trading system.  
COSTA  RICA 
4.122.   Costa Rica finds it very interesting to participate in this TPR of Japan, which is one of its 
major trading partners in Asia. Indeed, Japan is our country's second largest source of imports 
from th at region and the fourth largest consumer of our exports.  
4.123.   Costa Rica also wishes to acknowledge the important role played by Japan at the WTO, 
its firm support for the multilateral trading system, its commitment to ensuring the successful 
conclusion of the  Doha Round negotiations and its valuable contribution to the WTO's Aid -for-Trade 
programme. Like Japan, Costa Rica is also engaging in initiatives such as the expansion of the 
Information Technology Agreement (ITA), the Trade in Services Agreement (TiSA),  and the 
Environmental Goods Agreement (EGA). Costa Rica and Japan also have common interests 
in other areas, such as strengthening the WTO rules, especially in the areas of anti -dumping, 
reviewing the Dispute Settlement Understanding, promoting green grow th and examining 
global  value chains.  
4.124.   Both the Secretariat report and the policy presentation made by the Japanese Government 
refer to the fact that the measures adopted to revive the Japanese economy have started to take 
effect, but that to achieve strong  economic growth, further progress still has to be made in dealing 
with its major structural problems, which include increasing women's share in employment and 
addressing its ageing population. We therefore think that it would be very useful during this re view 
to learn about the Japanese Government's future plans to address these structural problems, 
especially measures aimed at liberalizing trade, boosting competition and attracting more foreign 
direct investment, all key issues which have been referred to  in previous statements.  
4.125.   The high level of protection afforded to the agricultural sector through different measures 
including high tariffs, tariff quotas, domestic support policies and non -tariff measures, despite the WT/TPR/M/310 • Japan  
 
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  changes introduced over the past few years, remains striking. As a result, according to the 
Secretariat report, domestic prices remain higher than world prices. Furthermore, the Secretariat 
report shows that although Japan has continued to move towards income support, market price 
support is still the main component of support for the agricultural sector. We will therefore closely 
follow the steps that Japan is taking towards market -oriented agricultural trade and to increase the 
sector's competitiveness and productivity in the long term.  
4.126.   For this trade policy review, Costa Rica submitted a set of questions to Japan concerning 
various elements of its macroeconomic and trade policy. We are grateful for the attention given 
to these questions by Japan, and I would like to conclude by wishing Japan  a successful 
trade policy review.  
SINGAPORE  
4.127.   Singapore -Japan economic relations are underpinned by the Japan -Singapore New -Age 
Economic Partnership Agreement (JSEPA). The JSEPA was Japan 's first -ever EPA and one of 
Singapore 's earliest FTAs  with a major tr ading partner. This speaks volumes of the strength of our 
bilateral relationship and economic links, which has only grown stronger since the JSE PA entered 
into force in 2002. Last year, Japan was Singapore 's 9th largest trading partner, with bilateral 
trade reaching US$34 billion.  
4.128.   Bilateral investment flows also continue to be substantial. As of end 2013, Japan was 
Singapore 's 3rd largest cumulative investor with cumulative di rect investment totalling 
US$52  billion whilst Singapore was Japan 's 4th largest source of cumu lative investments. Japanese 
companies have been operating in Singapore for a long time, and are increasingly using Singapore 
as their global trading headquarters and as a centre for tale nt and business development. 
Similarly, Singapore compa nies have also actively invested in Japan, particularly in the real estate, 
hospitality and logistics sectors and more recently, in the food services, chemicals, electronics and 
precision engineering sectors. As we commemorate the 50th anniversary of Singa pore-Japan 
diplomatic relations next year, Singapore looks forward to the completion of the on -going JSEPA 
review, which will ensure that the JSEPA remains relevant to business needs and pave the way for 
stronge r bilateral economic linkages.  
4.129.   Singapore als o cooperates closely with Japan in regional integration initiatives such as the 
Trans -Pacific Partnership (TPP), the Regional Comprehensive Economic Partnership (RCEP) and the 
ASEAN -Japan Comprehensi ve Economic Agreement (AJCEP). These initiatives reflect Japan's 
continued commitment towards increasing trade and investment relations in the region and also 
underscore Japa n's pro -liberalisation stance. According to the Japanese Government 's report, 
Japan 's exports to and imports from ASEAN increased by 4.8% a nd 11.5% respectively in 2013 
compared to 2012. Singapore looks forward to continuing our close cooperation with Japan to 
strengthen  regional economic integration.  
4.130.   At the WTO, Singapore greatly appreciates Japan 's commitment to trade liberaliz ation and 
role as a defender of the MTS. Singapore welcomes the lowering of Japan 's overall simple average 
applied MFN tariff rate from  6.3% in 2012 to 5.8% in 2014. Japan has faced persistent domestic 
economic challenges, including a growing trade deficit and the econ omic impact of the 2011 
earthquake, tsunami and nuclear incident. However, Japan has commendably not raised tariffs and 
continues to be a leading voice against protectionism and trade restrictive measures, not only at 
the WTO, but also at other internation al fora such as the G -20 and APEC.  Japan has also been a 
strong and consistent supporter of development initiatives.  Singapore looks forward to working 
closely with Japan to further trade liberalisation in the WTO through, inter alia , the post -Bali Work 
Programme, Information Technology Agreement (ITA) expansion and Environmental Goods 
Agreement (EGA). We also look forward to Japan 's speedy ratification and deposit of the 
instrument of acceptance for th e Trade Facilitation Agreement.  
4.131.   As the world 's 2nd lar gest foreign direct investor, third largest economy and fourth  largest 
importer and exporter of goods, Japan 's continued economic health is vital to global economic 
recovery and the viability of  global value chains worldwide.  Singapore hopes that Japan wil l 
continue to stay the course with reforms in its financial and capital markets, as well as its efforts 
to reduce the ratio of public debt to GDP, encourage inward FDI, and improve productivity, WT/TPR/M/310 • Japa n 
 
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  especially in the services sector.  We also encourage Japan to  continue in its efforts to liber alize its 
agriculture sector.  
4.132.   Here in Geneva, the Singapore delegation enjoys a clos e working relationship with 
Ambassador Yoichi Otabe and his team of extremely cap able and dedicated colleagues. We look 
forward to continui ng this close collaboration and advancing our common goal of a post -Bali work 
programme by July and a successful 10th Mini sterial Conference in Nairobi. Singapore thanks 
Japan for their responses to our written questions and wishes Japan a very successful 12th Trade 
Policy Review.  
TURKEY  
4.133.   Japan has a significant importance for the global economy and trade. Being the third 
biggest economy in the world, Japan 's level of success and means of strategy in overcoming 
deflation and revitalizing her economy will als o have great implications for the other WTO 
Members.  
4.134.   Japan has been implementing a comprehensive reform program to support domestic 
demand in the recent years. Taking into account the prolonged period of stagnation, the negative 
effects of the earthquake a nd tsunami of 2011 and the global crisis, Japanese GDP growth of 1.5% 
in 2012 and 2013 was then pretty enough to be optimistic about the success of the program. But, 
relatively low level of growth (0.9%) in 2014 and weak expectation for 2015 (0.8%, IMF) sh ow us 
that there is still some way to drive for Japan to achieve satisfactory growth.  
4.135.   Besides low economic growth, the highest ratio of public debt to GDP in the world and the 
volatility of the Japanese yen against foreign currencies are the two areas of a dditional concern. 
We think that a good balance between a sustainable economic growth and these two issues can 
only be reached if the Japanese G overnment puts the challenging and even painful structural 
reforms into effect with the optimum fiscal and monet ary policy mix. Fortunately, there is also 
enough reason for us to believe in the capacity and t he willingness of the Japanese G overnment to 
do so.  
4.136.   Japan has continued to be an active supporter of the ruled -based multilateral trading 
system during the revi ew period. Japan 's transparent and predictable trade policy based mainly on 
the customs tariffs and its little use of trade remedies are  appreciated.  
4.137.   We are also pleased from Japan´s commitment and leadership to help LDCs through 
comprehensive programs suc h as "Development Initiative for Trade ", "One Vi llage One Product " 
and the GSP.  
4.138.   At this point, let me also thank to our Japanese colleagues who work at the Permanent 
Mission to the WTO for their hard work and valuable contribution to the daily activities u nder this 
roof. 
4.139.   Japan is a valuable partner for Turkey. We also enjoy a good cooperation with Japan within 
the G -20 and in various plurilateral agreements such as TISA, ITA and EGA. Turkey and Japan 
have always enjoyed an excellent political relationship. Unfortunately, as we also stated in Japan 's 
last review, our trade volume (US$3.5 billion in 2014) is still far away from both reflecting the 
potential of our economies and mirroring our good political relations. In addition, it should be 
mentioned that ou r bilateral trade is remarkably in favor of Japan, which we believe  has to move 
towards a balance.  
4.140.   In terms of foreign direct investment, although Japan is one of the leading investor 
countries in the world, Japanese FDI in Turkey in the last decade was li mited to US$1.5 billion, 
whereas Turkey was able to attract an FDI inflow of US$117 billion globally in the same period. In 
this framework, Turkey also wants to attract more foreign direct investment from Japan as well as 
increase her traditional  trade in goods and services.   
4.141.   Concerning the agricultural sector which is heavily regulated, I would like to underline in 
particular the application of strict SPS measures by Japan, which unfortunately prevents Turkey 
from exporting some important agricultural pro ducts. We hope that Japan will complete the WT/TPR/M/310 • Japan  
 
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  necessary procedures soon, and make it possible for allowing these products to be present in the 
Japanese market.   
4.142.   As mentioned in the Secretariat r eport, J apan and Turkey have started to  negotiate an 
Economic P artnership Agreement during the review period. The first round of the negotiations was 
held in December, 2014. The Agreement will cover a broad range of areas including trade in goods 
and trade in services, customs procedures, inves tment, e -commerce, intel lectual property rights, 
and competition. We believe this Economic Partnership Agreement will help us to strengthen  and 
further develop our bilatera l economic and trade relations.  
4.143.   Finally, I would like to express my appreciation Mme Chair for your able con duct of the 
TPRB during your term.  
NORWAY  
4.144.   Four years have passed since the devastating Great East Japan Earthquake struck Japan 
on 11 March 2011, causing tremendous human and economic suffering and Norway would like to 
praise the Japanese people for its ef forts and sacrifices throughout the recovery process.  
4.145.   First, a few remarks on the bilateral trade relationship between Norway and Japan. Japan 
is the third largest trading partner for Norway in Asia. Norwegian imports of goods from Japan 
have increased du ring the last years. The total trade in goods between Norway and Japan has 
been relatively unchanged, despite the downturn in other markets. Trade in services between 
Norway and Japan is considerable, one third of this trade being in the maritime sector.  
4.146.   Fresh fish is among the major Norwegian export products, in particular fresh salmon and 
mackerel, and Norwegian seafood has become an important part of Japanese food culture. 
Furthermore, we notice that Japanese companies play and increasingly larger role i n the marine 
produce value chain, further underlining our common interest in an open and transparent market 
with predictable rules for the trade in fish and seafood.  
4.147.   Maritime transport is an important facilitator of world trade, and Norway gives high prior ity 
to this sector. Better access to and supply of maritime transport services on open and equal 
market conditions is beneficial to all WTO Members and crucial to economic development. Norway 
believes improved offers and binding commitments in the WTO are important for fair competition 
and economic growth. Japan is a major maritime actor with the world 's second largest fleet, and a 
key player in this regard.  
4.148.   Japan is the world 's third largest economy, and Norway has high expectations for the 
reconstruction and the economic reform process that Japan is currently going through. We hope 
Japan will succeed in the Abenomics effort to create sustainable economic growth after years of 
deflation, for example through energy market reforms and by better including the female 
population into the labour market.  
4.149.   Allow us also to mention that Norwegian exporters of maritime equipment have indicated 
concerns about difficulties to enter the Japanese market. As a major shipbuilding nation, Japan is 
of particular interest. Our products are used extensively in other markets, but it would seem that 
shipyards and ship owners have a preference for Japanese products when contracting, building and 
equipping ships and that certain customs rules may impede import and installation and/or  
replacement of parts needed on foreign vessels. Against this background, we would like to ask if 
there are any legislative measures, customs regulations, schemes related to financing or other 
measures that may hinder shipyards and ship owners from buying foreign maritime equipment. 
We would ask the Japanese delegation to look into this problem and get back to us with a 
clarification of present practices and rules in order to facilitate access to the important Japanese 
market.  
4.150.   To facilitate international tr ade and integrate the Japanese market better into world trade, 
more harmonization and mutual recognition of standards, product certifications and marketing 
authorizations, as well as adoption of international standards in Japan would be highly welcomed. 
We have noted the need for such harmonization with international standards, in particular in the 
energy sector, health/welfare and medical equipment, offshore installations, environmental WT/TPR/M/310 • Japa n 
 
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  technology, consumer products and food, including a harmonization of J apanese rules pertaining to 
food safety. We would therefore enquire whether the Japanese delegation could respond to this.  
4.151.   With reference to chapter 2 in the report by Japan, we are pleased to note that Japan is 
actively engaging in the plurilateral negoti ations in relation to the Information and Technology 
Agreement (ITA) , Trade in Services Agreement (TISA) and the Environmental Goods Agreement 
(EGA). It is important that Japan, as one of the largest trading economies in the world, plays an 
active role tog ether with other WTO Members in pursuing multilateral trade liberalization.  
4.152.   Norway welcomes Japan 's increased focus on bi - and multilateral trade agreements, which 
can further promote international free trade while complementing the engagement within the 
WTO. 
4.153.   Japan is a very close partner for Norway in the WTO, and plays an important role in the 
WTO in general. We would like to give credit to Japan for its constructive and positive contributions 
when it comes to negotiations on rules in particular. Agreemen t on rules, along with e.g. NAMA 
and services, is important for a result in the DDA negotiations.  
4.154.   In conclusion, we are confident that this review will be useful both for Japan as well as for 
the other participants. We look forward to receiving your respon se to our comments here today, 
and we are grateful for answers given to our written questions which we will study in detail.  
EUROPEAN  UNION  
4.155.   Needless to say that Japan is a strategic partner for the EU on many issues that include, 
but are not limited to tra de and investment.  
4.156.   Since the last review in 2013, Japan has put in place an ambitious reform programme to 
overcome deflation and to revitalize its economy after more than a decade of slow performance. 
The EU, while appreciating the package of reforms in i ts entirety, looks with a particular interest to 
the measures that will be implemented to further open the Japanese economy to foreign trade and 
investment. The EU is fully aware that the reforms and measures are not easy to push through, 
but we can only e ncourage Japan to pursue the good work undertaken.    
4.157.   A word  on our bilateral relationship with Japan. The trade and economic relationships 
between the EU and Japan date back in time and have gradually developed into multiple policy 
dialogues that are help ing foster closer cooperation between two like -minded partners. The EU and 
Japan now work closely on a wide range of issues ranging from economic, trade and investment 
matters to regional security, development, disaster relief and management, human rights,  energy 
and environment, social policy and science and technology.  
4.158.   The EU is willing to further intensify its relations with Japan and in this respect negotiations 
aiming at conclusion of a Free Trade Agreement (FTA) and a Strategic Partnership Agreement 
(SPA) are on -going. The conclusion of an FTA between the two of the world major economies must 
result in more transpar ent and open markets in Japan. Moreover, the EU remains convinced that 
the issues currently being negotiated under the FTA would complement  the "third arrow " of 
Abenomics aimed at structural reform.  
4.159.   I also wish to convey the EU 's appreciation for the constructive role played by Japan in 
putting the WTO back on the negotiation track. The EU trusts Japan will continue to be fully 
engaged to the  multilateral trading system as expressed in its report and shares with Japan the 
willingness to assess the possibility of reflecting the outcomes of the bilateral and plurilateral 
initiatives in the multilateral trading system.  
4.160.   Despite  Japan 's efforts to reform its economy, there are a number of barriers to trade in 
goods, services, investment and public procurement that continue to hinder exports in sectors 
where demands for European products and services would be otherwise high. The EU hopes that 
Japan 's commitment to regulatory reform will remain unaltered and, if anything, strengthened 
under the renewed government of Prime Minister Abe.  WT/TPR/M/310 • Japan  
 
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  4.161.   In particular, the EU notes that the FDI restrictions have been in place for a long time and 
have led to a very low l evel of inward FDI in Japan compared to other major world economies. In 
its report Japan mentions measures to attract FDI. The EU is interested to know more which 
measures Japan will adopt to encourage FDI.  
4.162.   Then, turning to the EU questions, let me stress  that the issues we raised are considered 
and confirmed by EU operators as obstacles to trade. Today, I will only focus on a few of them:  
4.163.   Regarding Public Procurements, the EU notes that the procurement market remains 
difficult to access for foreign bidder s. The EU welcomes Japan 's reply stating that voluntary 
measures to ensure non -discriminatory, transparent, fair, competitive and open public sector 
procurement procedures have been implemented and hopes that these measures will allow a 
larger opening of i ts procurement market in the near future. The  same way, the EU hopes that 
on-going policy developments on government procurement such as green procurement or 
measures in favour of SMES will be conducted on the basis of objective criteria and a non -
discrimi natory approach.  
4.164.   Regarding services, the EU has submitted to Japan several questions showing the EU 
concerns for the insufficient liberalisation of the services sector. The EU considers that further 
liberalisation of services is needed for enhancing compet ition and fair and equal treatment of all 
companies, both domestic and foreign, for example in the postal and courier sector.  
4.165.   Finally, in the field of sanitary and phytosanitary measures, the EU would like to reiterate 
its call on Japan to align its domest ic standards with the international ones such as the OIE in case 
of regionalisation and on beef and bovine products in case of import conditions. Concerning the 
additive and pesticide approvals, the EU similarly hopes to see that alignment with internation al 
standards leads to accelerated approval procedures while maintaining an adequate balance 
between security concerns and legitimate trade.  
4.166.   Concluding, I thank the delegation of Japan for your kind attention. The EU looks forward 
to Japan 's responses to t he questions that have been put forward today and that have been 
submitted previously in writing.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.167.   The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu and Japan have 
enjoyed a  close and mutually beneficial trading relationship for many decades. Japan has for long 
been our third largest trading partner and a majo r source of foreign investment.  Since 2011, our 
bilateral cooperation has been strengthened even further by the signin g of various agreements, or 
MOUs, in areas such as investment, open skies, the mutual recognition of inspection results, 
industrial cooperation, E -commerce and tourism, as well as financial supervision and intellectual 
property.   
4.168.   With such a close bilater al relationship, and given Japan 's leading role in the Asia -Pacific 
region, we naturally attach great importance to Japan 's new economic reform programme and its 
impact on the Japanese economy.  
4.169.   We see from the Secretariat r eport that the expansionary monet ary and fiscal policy 
measures adopted by Japan since the last review have provided support to the economy, but not 
enough to achieve strong economic growth. In 2013, Japan 's economy grew by 1.5%, supported 
by strong industrial production, retail sales and  consumer spending, while real GDP growth in 2014 
is estimated at just 0.9%. The consumption tax increase from 5 to 8% had a negative effect on 
domestic dema nd.  
4.170.   Japan 's trade deficit reached a record high in 2013, and despite its exports increasing in 
U.S. dollar terms, imports also grew to their highest level ever. We look forward to the full 
implementation of Japan 's revised Growth Strategy which includes a number of far -reaching 
structural reforms, and hopefully it w ill help re -boost the economy.  
4.171.   On th e multilateral front, we recognize the leading role of Japan in the regional and 
multilateral trade forums, such as APEC and the WTO. We hold similar positions to Japan in the WT/TPR/M/310 • Japa n 
 
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  WTO negotiations on Agriculture, Services, GI registers and Rules, and we are bo th part of the 
plurilateral negotiations on ITA expansion, EGA and TiSA.  
4.172.   In specific sectors, Japan provides preferential access under the GSP to 144 countries. The 
GSP scheme is revised every ten years, with the next revision due in 2021. In fact, we find  Japan 's 
GSP graduation requirements to be less strict th an some other developed Members. T herefore , we 
encourage Japan to review the GSP graduation requirements in order to maintain fair compe tition 
in its internal market.  
4.173.   In addition, we do have some co ncerns over Japan 's Customs procedures and 
requirements. The Advance Filing Rules (AFRs) on fresh products imported into Japan were 
adopted by Japan 's Customs on the 1st of March 2014. These rules require a vessel operator to 
electronically submit informat ion to the Japan Customs on the maritime container cargoes to be 
loaded onto any vessel intending to enter a port in Japan, in principle no later than 24 hours 
before departure of that vessel from the port of loading. This means that all fresh products fro m 
neighbouring countries, including fruits and flowers, have to be harvested or processed 24 hours 
at least in advance of the vessel leaving the port.  Freshness and quality is therefore harder than 
usual to maintain and guarantee. We raised this issue bila terally last year. Hopefully, Japan can 
recognize the need to take measures to counteract our trade concerns.  
4.174.   Finally, I 'd like to express my appreciation to Ambassador Otabe and his capable team for 
their active roles and contribution to the WTO. I wish Japan a most successful and constructive 
Trade Policy Review.  
BRAZIL  
4.175.   It is a special opportunity for me to participate in the twelfth Trade Policy Review of Japan, 
a country I have always admired, but now feel closer to after serving as Brazil 's Ambassador  in 
Tokyo for almost three years up to October 2013.  
4.176.   We all know that Japan, the third largest economy worldwide and the fourth global trader, 
has a crucial role in the recovery of the world economy by means of increased productivity and 
enhanced competiti veness. In the WTO context, it has been committed to the successful 
conclusion of the DDA and the preparation  of the Post -Bali Work Program.  
4.177.   The Secretariat report notes that despite many challenges, including the devastating 
earthquake in March 2011 – I was there at the time, four years ago on Wednesday – Japan 
attained economic growth in 2013 and 2014, with a positive forecast for 2015. Growth that is 
linked to the "Three Arrows Strategy " of reform, which encompasses monetary easing, fiscal 
stimulus and s tructural transformation in areas such as ener gy, healthcare and agriculture.  
4.178.   The issue of agriculture is particular interest for Brazil. Farm reform is long overdue and 
unavoidable if Japan really wants to pursue economic reforms on a sustainable footing.  
Notwithstanding some steps taken over the past few years, support and protection provided to 
agriculture remains significantly high wh en compared to other countries.  
4.179.   Japan 's domestic support level is higher than the OECD average. Market price support, the  
distinguishing feature of Japanese farm policy, is considered by experts one of the most production 
and trade -distorting forms of support. Administered prices, particularly in pork and beef, heavily 
affect developing countries exporters, such as Brazil, n ot to mention Japanese consumers.  
4.180.   Though declining, the average agricultural tariff stands at 14.9%, far higher than duties 
imposed on industrial goods. A closer look indicates a rather complex picture in agriculture: tariff 
peaks are found in 6.6% of the lines, some of which are close to 300%; the fill rates of tariff 
quotas, covering around 200 lines, are considerably uneven.  
4.181.   On SPS, Japan often imposes more restrictive requirements than those internationally 
practised or agreed upon, prompting unnecessar y rises in compliance costs for exporters. In light 
of all these considerations, Brazil welcomes and encourages the decision of the Japanese 
government to implement structural farm reform, and urges that it do so as ambitiously an d as 
expeditiously as poss ible. WT/TPR/M/310 • Japan  
 
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  4.182.   As regards the industrial sector, Brazil has been continuously and attentively monitoring 
support related to the development of the first and, now, the second generation of the Mitsubishi 
regional jet project. For the sake of transparency, we have co nsistently raised this issue bilaterally 
and at the relevant WTO committee. Unfortunately, the replies provided by the Japanese 
government until now, including those last week, have been vague, especially given the need that 
the compliance of such support with WTO rules be asc ertained. We urge the Japanese G overnment 
to show greater engagement and provide satisfactory re sponse as promptly as possible.  
4.183.   Brazil and Japan have forged a strong bilateral relation in investment and trade. Japan 
ranks as the third largest FDI source in Brazil, with a preeminent position particularly in the 
shipbuilding, mining, automoti ve and agribusiness industries.  
4.184.   On trade in goods, Japan is our sixth trade partner globally, and the second in Asia. 
Although dynamic, Brazilian exp orts to the Japanese market are highly concentrated on basic 
products (iron ore, coffee, soybeans), whereas our imports are quite diverse and largely composed 
of manufactured goods, such as machinery, automobiles and chemicals. Brazil remains open to 
worki ng with Japan to  diversify two -way trade flows.  
4.185.   One concrete measure could be the resumption of our exports of thermally processed beef 
to Japan, suspended since 2012 due to two atypical cases of BSE. The ban runs counter to a 
resolution of the World Organ isation for Animal Health, which classifies Brazil 's sanitary risk as 
"insignificant ", the lowest in the risk scale. Japanese consumers certainly stand to gain from 
broader access to Brazilian beef, known for its high quality and sanitary safety worldwide.  We look 
forward to an expedit ious resolution to this matter.  
4.186.   In 2015 Brazil and Japan are celebrating 120 years since the establishment of bilateral 
diplomatic relations. On the occasion of Prime Minister Shinzo Abe 's visit to Brazil last year, our 
relationship was further strengthened and upgraded to the level o f Strategic Global Partnership.  
4.187.   It goes without saying that our ties transcend trade and diplomacy. Brazil hosts the largest 
community of Japanese descendants abroad, with around 1.6 million people , while Japan is home 
to the third largest contingent of Brazili ans living outside our borders.  
4.188.   Bilateral cooperation has been developed and continuously deepened, especially in 
investment, technical cooperation, including in agriculture, education, health , energy, science and 
technology. The successful partnership in the Digital TV Project is viewed nowadays as a 
demonstration of the ability of our countries to join forces and deliver in the international arena, 
including on behalf of developing countr ies. 
4.189.   For those less familiar with Brazil -Japan relations, the ir intensity may appear 
counter -intuitive, given the geographic distance and differences in stereotypes between our two 
countries. The fact, however, is that our relations are close and strong, begin ning with the deep 
human bonds that unite our two peoples. We owe it to them – and to our international partners – 
to further and quickly develop our partn ership upon such a solid basis.  
4.190.   Before concluding, we thank the written replies to our questions that  address issues such 
as subsidies, SPS, IP, TBT and investments. They were forwarded to our capital for examination 
and follow -up. 
HONG  KONG,  CHINA  
4.191.   Hong Kong, China (HKC) has a close ec onomic relationship with Japan.  Japan has been one 
of our top three  trading partners for decades. Last year, our total bilateral trade value exceeded 
US$54 billion, of which US$37 b illion was imports from Japan. On the goods side, HKC has been 
the top destination for Japanese exports of foodstuff since 2004, while on the serv ices side, we see 
steady growth in recent years, particularly in sectors such as transport services and travel 
services.  
4.192.   Japan is also one of our major source s of inward direct investment. The Japanese business 
community we host is one of the larg est in th e Asia-Pacific region.  They include 1 400 Japanese 
companies, of which 240 are regional headquarter s and 465 are regional offices.  WT/TPR/M/310 • Japa n 
 
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  4.193.   In the years ahead, we hope to foster even closer economic and trade cooperation 
between HKC and Japan, especially in expandi ng services trade and p romoting bilateral 
investments.  
4.194.   Let me now turn to specific aspects of trade  policies and measures.  On tariff, we appreciate 
that Japan has bound 98.3% of its total tariff lines, and that the difference between the average 
bound MFN tariff (5.9%) and the average applied MFN tariff (5.8%) in 2014 was negligible, 
reflecting a high degree of predictab ility in Japan 's tariff regime.  However, simple average applied 
MFN tariffs were relatively high for footwear and headgear (32.6%) and prep ared foods (18.3%); 
and international tariff peaks still applie d to 7.4% of all tariff lines. We would encourage Japan to 
make improvement i n these aspects.  
4.195.   As regards trade policies in agriculture, we note that the level of support and protection 
given to  Japan 's agricultural sector remain high. The trade measures protecting the sector include 
tariffs, specia l safeguard and tariff quotas. On domestic support, the trend for Amber box support 
has been going upwards since 2007. The Secretariat r eport notes th at market price support is the 
main component of Jap an's domestic support programmes  and that this, along with other transfers 
based on output and input, is potentially one of the most production - and trad e-distorting forms of 
support. While we appreciate that agriculture is a sensitive sector for Japan, we encourage Japan 
to review its measures, with a view to moving towards a more liberalized trade regime .  
4.196.   On trade facilitation (TF), we note that Japan has already implemented the provisions of 
the TF Agr eement with the current domestic laws and regulations. Indeed, following progressive 
improvements in its Authorized Economic Operators (AEO) scheme, the release time for AEO 
import cargoes h as been reduced significantly. We hope such  good efforts would con tinue. We also 
look forward to working closely with Japan and other WTO Members to accelerate the entry into 
force of the TF Agreement, so as to realise th e benefits as soon as possible.  
4.197.   HKC, together with Japan and some other WTO Members, are also activel y engaged in 
plurilateral negotiations to expand the product coverage of the Information Technology 
Agreement, and to liberalise  trade in environmental goods. Both HKC and Japan are staunch 
supporters of th e multilateral trading system. We hope to conclude  these negotiations in a timely 
manner, to bring about a balanced and commercially significant outcome which can be shared 
multilaterally with all Members of the WTO.  
4.198.   Finally, I would like to commend the Japanese delegation in Geneva led by Ambassador 
Otabe for the active and constructive role they play in various aspects of WTO work.  I would also 
like to thank Japan for adopting the alternative timeline for this review and for providing replies to 
our written questions in advance, so that we can have a mor e interactive discussion today.  May I 
wish the Japanese delegation a very fruitful a nd successful Trade Policy R eview.   
ECUADOR  
4.199.   It is most interesting for Ecuador to participate in this trade policy review. On the one 
hand, we acknowledge the programme of  structural reforms that Japan is currently implementing 
to revitalize its economy after a decade of sluggish performance, a programme which has reforms 
in agriculture, energy and healthcare as one of its areas of focus; and on the other, we welcome 
the ad option of a number of measures aimed at increasing the country's productivity and 
competitiveness, and at attracting foreign investment.  
4.200.   My delegation would like to highlight the primary target of doubling FDI by 2020 set by the 
authorities in the Japan Re vitalization Strategy, as well as the measures implemented since 
2011 which aim to turn Japan into an Asian Business Centre. The support offered includes location 
subsidies, tax incentives and reduced patent fees for R&D sites, which will undoubtedly achie ve the 
expected results if they are applied consistently over time.  
4.201.   One source of concern to my country relates to Japan's agricultural policies providing 
domestic support and protection for the Japanese agricultural sector, which remain high compared 
to other countries, despite changes in agricultural programmes, and are therefore potentially 
destabilizing factors for global production and trade.  WT/TPR/M/310 • Japan  
 
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  4.202.   Ecuador notes with interest the systemic protection given to certain farm products such 
as rice, as evidenced, for example, by the special programmes designed to encourage production 
limitation for rice, the payments to encourage conversion from rice production, government 
contributions to compulsory insurance premiums for rice, the farm income support payments for  
rice, the allocation of all Blue Box spending to the rice income stabilization programme, the 
exclusion of rice from regional trade agreements and the generalized systems of preferences, and 
a tariff of ¥341/kg, which results in nominal protection of over  800%.  
4.203.   As regards sanitary and phytosanitary matters and technical barriers to trade, 
the Secretariat report notes the rigorous application of quality and safety standards and the 
potentially high costs of meeting them. This is a source of concern for Ecua dor as the standards 
applied by Japan are certainly a lot stricter than current international standards.  
4.204.   At present our country is working on the requirements laid down for the entry of 
Ecuadorian mangoes into Japan. The Ecuadorian Agency for Agricultural Product Quality Assurance 
(AGROCALIDAD) asked the Japanese Phytosanitary authority for information in July  2014 in order 
to continue the market access process. Ecuador looks forward to receiving a response on this topic 
in the near future.  
4.205.   Last November, E cuador's Minister for Foreign Trade visited Japan as a show of high -level 
willingness to strengthen bilateral relations, which will reach their 100th anniversary in 2018. 
The medium -term objective is to conclude a trade agreement that will eliminate barrie rs to trade 
such as tariffs and stricter requirements and, above all, focus on complementarity and respect for 
the sensitivities of both parties.  
4.206.   We also welcome the changes introduced by the Japanese Government to its government 
procurement framework, and  the progress made in relation to services through the introduction 
of new regulations in the financial services sector, such as the amendment of rules on large 
exposures in line with international standards.  
4.207.   Ecuador recognizes Japan's role in the WTO nego tiations and trusts that it will step up its 
efforts with a view to the successful conclusion of the Doha Development Agenda in the very 
near future.  
4.208.   We hope that this trade policy review of Japan will lead to a greater understanding of and 
hence better ac cess to its market, particularly for agricultural products from developing countries; 
a review of stimulus and domestic support programmes; and a reconsideration of its technical 
standards and sanitary and phytosanitary measures.  
4.209.   Lastly, Ecuador would like  to emphasize its endorsement of the economic and trade 
progress made by Japan, highlighting the country's recovery from serious natural disasters such 
as the earthquake and tsunami in 2011, and from the Fukushima tragedy. These events affected 
production throughout the country, particularly in the export sector. Despite these obstacles and 
its relatively weak economic performance over the past few years, Japan is one of the richest 
countries in the world.  
4.210.   To conclude, we would like to thank the delegation of Japan in advance for its answers 
to the questions concerning certain aspects of its trade policy that we have forwarded to the 
Secretariat, which will provide important inputs for strengthening bilateral relations in the area 
of foreign trade.  
ARGENTINA  
4.211.   We are pleased that after six months of negative growth in 2014, the Japanese economy 
is showing signs of slight recovery.  
4.212.   We are also pleased to note that, as mentioned in the report by Japan, this Member 
remains committed to trade liberalization under t he WTO -based multilateral trading system. We 
hope that Japan's commitment will be reflected in the ongoing negotiations on agriculture, a sector 
which, as  you know, still lags far behind the industrial sector in terms of openness and the 
elimination of  distorting policies.  WT/TPR/M/310 • Japa n 
 
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  4.213.   In this connection, Argentina welcomes the recent initiative put forward by Prime  Minister 
Shinzo  Abe at the 189th session of the Japanese Diet on 12  February of this year. We also 
welcome Prime Minister Abe's statement that "w e should no t be afraid of change in the face 
of tradition" and that "c hange is the only eternal". We hope that this move towards reform 
in Japan will also help in reforming the multilateral trading system, which depends on a successful 
conclusion to the Doha Round in  accordance with its mandate.  
4.214.   Japan's protectionist agricultural policies have always been a source of concern to 
Argentina. The Japanese agricultural sector is still highly distorted and not very market oriented, 
owing to  an unusual combination of: (i)  extremely high tariff barriers, a large percentage of which 
are non -ad valorem  duties; (ii)  tariff quotas, governed by complex methods of allocation, as the 
Secretariat acknowledges in its report; (iii)  para-tariff barriers; (iv)  special safeguard measures; 
(v) production restrictions; (vi)  domestic support in the form of income support, and 
particularly  price support, which, as stated in the Secretariat report, "is potentially one of the most 
production - and trade -distorting forms of support"; and (vii)  imports by state -owned enterprises.  
4.215.   These protectionist policies exacerbate the imbalance in our bilateral trade and prevent 
Argentina from increasing its value -added agricultural exports. Mention should also be made 
of Japan's sanitary and phytosanitary measu res and the lengthy procedures required in order 
to access the Japanese market. Given the amount of time it takes to complete each negotiation, 
these constitute a real restriction on importing products of Argentine origin into Japan.  
4.216.   On the tariff side, al though Japan's average tariff was 5.8% in 2014, according 
to Table  A3.1 in the Secretariat report, and had declined from 6.3% in 2012 (albeit because 
of higher prices for agricultural products), average tariffs remain high in sectors of special interest 
to developing countries such as Argentina, with a few tariff peaks that make it prohibitive for such 
products to enter the Japanese market.  
4.217.   We should also add that Japan has historically provided substantial domestic support for 
the fisheries sector, irrespe ctive of the current emergency aid provided to address the needs 
arising from the tsunami in March  2011.  
4.218.   We are concerned about the deadlock in the negotiations on fisheries. We would hope for 
a higher level of commitment by Japan in the negotiations on fi sheries subsidies. The only 
contribution that the WTO can make to trade and the environment is to implement the mandate 
of the Doha Round in this respect, as reaffirmed in paragraph  173 of the outcome document of the 
2012 United Nations Conference on Susta inable Development (Rio+20).  
4.219.   We would therefore urge Japan to make the necessary efforts to implement the 
Doha mandate relating to fisheries subsidies as well, and to give the matter the high priority 
it deserves. The reform process initiated by Prime Mini ster Abe places considerable importance 
on the environment. His initiative is an opportunity not to be missed, either by Japan or in terms 
of the mandate on fisheries subsidies.  
4.220.   In light of its particular economic weight, Japan plays a leading role in glob al trade and 
hence in the negotiations being conducted in this Organization. We believe that it could assume 
a decisive leadership role in the Doha Round; for that purpose it needs to demonstrate greater 
flexibility in its trade policies, particularly thos e concerning agriculture and fisheries, which affect 
developing country Members of this Organization in particular.  
4.221.   Lastly, we thank Japan for its responses to Argentina's written questions, which are being 
analysed by our authorities. New questions were s ubmitted last week, which we hope will also 
be answered. We wish Japan every success in the 12th review of its trade policies.  
INDONESIA  
4.222.   At the outset, Indonesia would like to associate itself with the statement made by the 
Philippines on behalf of ASEAN.  
4.223.   We are pleased to be here today for participating in the Trade Policy Review of one of the 
key players in the WTO. We appreciate Japan 's contribution in the WTO forum. We believe Japan WT/TPR/M/310 • Japan  
 
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  has a strong commitment to give its best efforts to ensure a successful  Post-Bali Work Programme 
and to conclude the DDA negotiations. We note with positivity that Japan has performed well with 
its generally open trade policies.  
4.224.   At the end of last January, our Trade Minister had the opportunity to meet with Prime 
Minister Abe  and the Minister of Economy, Trade and Industry, H.E. Mr  Yoichi Miyazawa. Aside 
from sending a good signal, the meeting also laid down the groundwork for better relationship 
between our two countries, particularly in trade and investment, in the future. T his is a 
continuation of or decades -long relationship, which culminated in 2007 with the establishment of 
the Indonesia -Japan Economic Partnership Agreement, or IJEPA. The Agreement has helped bring 
closer cooperation between our two countries and we are n ow in the process of reviewing the 
Agreement to bring even greater benefits to both countries. Accordingly, we encourage Japan to 
determine a meeting schedule for the discussion of the next General Review of IJEPA.  
4.225.   I want to emphasize that Japan is indeed a very important trading partner for Indonesia. 
Japan is the second largest export destination for Indonesia as well as the second largest investor 
in Indonesia.  
4.226.   Nevertheless, trade balance between both countries has been decreasing in the last two 
years. Trade balance between Indonesia and Japan in 2014 was around US$40.17 billion which 
was 13.37% lower compared to 2013. Indonesia 's export to Japan in 2014 was around 
US$23.16  billion or 14.47% lower compared to 2013. Meanwhile, imports from Japan have 
decreased from around US$19.28 billion in 2013 to US$17 billion in 2014. Overall Indonesia 's 
trade balance with Japan has seen a surplus of US$6.15 billion in 2014, albeit a 21% decrease 
compared to 2013 (US$7.8 billion).  
4.227.   Although our trade balance has decreas ed, I remain confident that our countries ' economic 
partnership will grow again in the future.  
4.228.   Having said that, Indonesia would like to note some of Japan 's trade policies that 
undermine the legitimate interest of our exports to Japan. Our Government is c onfident that 
Japan, as one of the most developed Members of the WTO, will ensure that its trade -related 
policies are in line with the WTO rules. We also believe that Japan should be a role model to all 
WTO Members by avoiding the implementation of any mea sures more strictly than necessary, both 
in tariff and non -tariff forms, particularly for agricultural and fishery products. For example, SPS 
and TBT requirement s that are more strict than international standards and very costly to fulfil by 
our exporters.  
4.229.   We have submitted a number of specific questions to clarify individual points on these and 
other issues. We thank the delegation of Japan for answering our questions. We will study those 
responses with great interest and we will seek further clarification  when and as necessary.  
RUSSIAN  FEDERATION  
4.230.   The Russian delegation welcomes the 12th Trade Policy Review of Japan. We fully support 
this important mechanism which enables us to exchange views on the trade policy of the WTO 
Members.  
4.231.   Japan is Russia 's sevent h largest trading partner. The Russian Federation and Japan have a 
long history of friendly relations and have developed broad, deep and robust bilateral cooperation 
spanning vast economic, trade and investment areas.  
4.232.   Today we would like to highlight some of Japan 's trade and investment measures that, we 
believe, need more attention. Russia has submitted a number of questions for this review 
regarding TBT measures of Japan related to wood industry regulation (the Wood Use Points 
Program (WUPP) ), as well as agricultural policy and SPS measures which are of particular interest 
to us.  
4.233.   We appreciate the fact that the answers have been provided by Japan in advance of this 
meeting. However, some of them lack sufficient justification and need further explanations.  WT/TPR/M/310 • Japa n 
 
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  Therefore, we would like to flag our intention to continue the dialogue with the Japanese 
delegation on the issues mentioned above.  
4.234.   Let me also express our deep concern with a number of trade restrictive measures 
imposed by Japan in respect of the Russian  Federation. We believe that these measures are not 
compatible with WTO rules and we urge Japan to remove them.  
4.235.   One more comment for the Japanese TPR deals with the negotiations to advance and 
conclude the Trans -Pacific Partnership (TPP) agreement. We regr et to note the lack of 
transparency in these negotiations. We would welcome more information to be made publicly 
available on this regional initiative in order to assess the compatibility of this preferential trade 
agreement with the rules of the WTO and t he multilateral trading system as a whole.  
4.236.   In conclusion, we would like to thank the delegation of Japan, the Secretariat and of course 
our esteemed Discussant, for their hard work done so far. We wish our Japanese pa rtners a 
successful Trade Policy R eview. 
OMAN  
4.237.   Oman has close economic and trade relations with Japan which we value greatly.  
4.238.   Japan is one of the major economies of the world and is among the four or five top traders 
globally in both goods and services. Its economic and trade policies have a be aring on the world 
economy and on international trade.  
4.239.   The economy of Japan, like the economies of many developed countries, has been facing 
problems and difficulties of slow growth and deflationary pressures. However, Japan is in the 
process of implementi ng an ambitious reform programme to overcome deflation and revitalize its 
economy. This reform programme embraces monetary and fiscal measures as well as reduction of 
budget deficits.  
4.240.   These are appropriate measures and  Oman wishes Japan success  in its ende avours to put 
its economy on a healthy growth track.  
4.241.   We are pleased to note that Japan follows an open, liberal and transparent trade regime. 
Its overall average tariff is quite low, though it must be noted that the average tariff for 
agricultural products  is rather high as compared with average tariff for non -agricultural products. 
Another notable feature of Japan 's tariff is the negligible difference between average bound MFN 
tariff and the average applied MFN tariff, which provides for predictability in conditions of market 
access.  
4.242.   The delegation of Oman commends Japan for almost no use of trade remedies such as 
countervailing and safeguard measures, and only one anti -dumping measure.  
4.243.   While appreciating Japan 's open and transparent trade regime and given that Japan used 
to be a champion of MFN treatment. We are surprised to note that it now aims to increase its trade 
under RTAs from around 19% in 2013 to 70% by 2018.  
4.244.   Oman has previously submitted in writing a question regarding the percentage of Japan 's 
tariff lines that have been bound out of the total tariff lines. And we are thankful to Japan for 
providing a response.  
4.245.   We are happy to note that mai ntaining and strengthening the multilateral trading s ystem 
under the WTO is a main pillar of Japan 's externa l economic policy. Japan 's commitment to 
support the system is laudable. We hope Japan would lend its support to the early completion of  
the DDA negotiations to fulfil  the objectives of the Doha Ministerial Declaration.  
4.246.   Finally, the delegation of Oman wish es the delegation of Japan a very successful Trade 
Policy Review.  WT/TPR/M/310 • Japan  
 
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  THAILAND  
4.247.   Thailand is  pleased to participate in the t welfth Trade Policy Review of Japan today and 
would like to associate ourselves with ASEAN 's statement pre viously delivered by 
Ambassador  Conejos of the Philippines.   
4.248.   Japan has been Thailand 's major trading partner for the past decades and c urrently is the 
second largest.  In 2014, our bilateral trade value stood at US$57.5 billion, accounting for 12.7 % of 
Thailand 's total global trade. Japan ranked as our third export destina tion and second import 
source. On the other hand, Thailand is Japan 's seventh trading partner, sixth export destination,  
and thirteenth import source. We note that since 2012 our bilateral trade has been decreasing, but  
we do hope that our fundamentally strong relationship will help enhance these statistical numbers.  
4.249.   Despite the slump shown in the figures, the qualitative side of the trade and commercial 
relationship between Japan and Thailand has been solid and meaningf ul. We appreciate our trade 
through Japan -Thailand Economic Partnership Agreement or JTEPA, effective since 
November  2007, and ASEAN -Japan Comprehensive Economic  Partnership, since June 2009. The 
private sectors of the two countries are also actively engag ed in the cooperation under 
Japan -Thailand Trade and Economic Committee, which was last met in May 2012.  In February this 
year, our Prime Minister paid an official visit to Tokyo and had "fruitful discussions " with Prime 
Minister Abe, including the future development of the east -west rail link, which would traverse 
Thailand from the Cambodian border on the east to the Burmese border on the west.   
4.250.   In terms of investment, Japan is our significant foreign investor, and Thailand has been the 
biggest manufactur ing hub for Japane se companies in Southeast Asia.  Although in 2014 the 
statistics for investment showed the similar trend as that of trade in goods, we expect that this 
slack wi ll pick up the speed this year.  
4.251.   In the multilateral trading system, especially in this Organization, Thailand is grateful for 
Japan 's leadership in many forums, including towards the success of the  Trade Facilitation 
Agreement. We also appreciate Japan 's constructive roles in other forums, such as the ITA 
expansion, of which we hope to see a similar acc omplishment in the near future.  Japan 's 
commitments in the WTO are valuable to all Members, and, with Japan 's continuous positive role 
as one of the key Members, Thailand looks forward to intensive and constructive negotiating work 
in the WTO to achieve a meaningful work program me by July and the successful tenth Ministerial 
Conference this year.  
4.252.   The TPR r eports indicate that Japan 's economy has been sluggish due to some severe 
shocks to the e conomy over the past few years.  However, Japa n still maintains its exemplary role 
in the global trade by remaining an open economy, having only negligible difference between the 
average bound and applied MFN tariffs, and applying only few  trade remedies.  Its current 
ambitious reform program mes in ord er to overcome economic stumbling blocks have been 
recognized by al l Members, including Thailand. We support this tireless and constructive effort as 
Japan 's healthy economy would positively contribute to the same for the international trading 
community.  
4.253.   In this review, Thailand submitted several questions to Japan, covering the policies and 
measures of our interests regarding standards and label ling of agricultural and forestry products, 
intellectual properties, tariff peaks and low fill rates of some TRQ products, and incentives to 
attract foreign investment under the Na tional Strategic Special Zones.  We thank Japan for its 
responses provided to us last week, which we are carefully studying with great interest.  
4.254.   In conclusion, Thailand would like to express  its appreciation to the Japanese delegation 
from Tokyo for today 's presentation a nd responses to our questions. We are thankful for the close 
cooperation with Japan in every level, including that betwee n our Geneva -based delegations.  We 
wish Japan every s uccess in this twelfth trade policy review.  
COLOMBIA  
4.255.   The period covered by this trade policy review has been particularly interesting from the 
standpoint of Japan's economic development. Long -standing structural economic growth problems, WT/TPR/M/310 • Japa n 
 
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  high public debt a nd a protracted period of deflation have been compounded by the need to tackle 
the aftermath of the earthquake and tsunami in 2011, which affected both private consumption 
and supply chains, and this in turn had a direct impact on export sectors.  
4.256.   As report ed, the Government is addressing these challenges by means of a "three -arrows" 
economic strategy known as "Abenomics", which consists of monetary easing, flexible fiscal policy, 
and a variety of structural reforms. The Japan Revitalization Strategy has und erpinned further 
actions in support of these goals.  
4.257.   As regards the first arrow, we can see that the strategy is already beginning to show 
results and that the economy is overcoming deflation. For 2015, the IMF expects inflation of 2%, a 
figure which appear s to be within reach considering the results achieved in recent months. 
Regarding the second arrow, the consumption tax rate increase in 2014 had a negative impact on 
domestic demand, but the parallel fall in oil prices has helped to mitigate its effects.  
4.258.   The unemployment rate is gradually falling. It was 4% in 2013 and has continued to 
decline. In spite of this, the strategy has not yet reached the objective of sustaining strong 
growth, which appears to be the overarching goal for the coming years.  
4.259.   Some of  the more interesting developments covered by this trade policy review are to be 
found under the third arrow. I shall refer to three of these in particular, namely increased efforts 
to attract foreign investment; actions aimed at achieving further economic  integration through the 
network of trade agreements; and reforms to the agricultural sector.  
4.260.   One of the pillars of the Japan Revitalization Strategy is to increase annual inflows of 
foreign investment, the aim being to double the amount of FDI, which is f ar below that of other 
developed economies, by 2020. This is an important factor in achieving strong growth, based on 
greater private investment and enhanced business productivity and competitiveness.  
4.261.   Structural reforms are to be carried out in the areas o f agriculture, energy and health care. 
According to the Government report, progress has been made over the past year in compiling 
a report on challenges to promote investment and in establishing the Council for Promotion 
of Foreign Direct Investment as a c ross-ministerial coordination body for the promotion 
of investment, with responsibility for spearheading the necessary institutional reforms. We also 
note the aim of enhancing the ratio of business start -ups to exceed the ratio of business closures 
from th e current rate of 5% to above 10%.  
4.262.   As regards the second point, it is particularly interesting to note that the strategy involves 
an endeavour to advance processes aimed at opening markets and increasing trade and 
investment flows, as a tool in support of the country's economic growth and job creation.  
4.263.   The arrow relating to structural reforms also involves a substantial effort on the part 
of Japan to increase its economic integration worldwide by extending and deepening its 
trade agreements. As emphasized i n the Government report, and as was mentioned earlier today, 
one of the objectives of the Japan Revitalization Strategy is to increase the country's FTA trade 
coverage ratio to 70% by 2018 from the current figure of 19%.  
4.264.   As we can see, although Japan is a generally open economy - in spite of recent difficulties, 
particularly in the agricultural sector - Japanese trade under trade agreements is relatively 
modest. In addition, the country's current account surplus has clearly declined in recent years, 
owing t o a substantial increase in imports, which reached record levels in 2013. Conversely, 
exports did not grow at the same pace, which further highlights the importance of securing better 
conditions for Japan's international trade.  
4.265.   The Secretariat report provi des ample evidence of progress made towards this objective, 
as Japan pursued an intense trade negotiations agenda, including with Colombia, during the 
period  under review.  
4.266.   However, this does not in any way diminish the importance of its endeavours in the 
multilateral sphere, under the WTO. On the contrary, Japan sees these as complementary. WT/TPR/M/310 • Japan  
 
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  The country has sent strong signals in support of developing the post -Bali work programme, which 
we hope will bring us closer to completion of the Doha Round.  
4.267.   Japan has also played a prominent role in the negotiation of the recently adopted 
Trade  Facilitation Agreement and in the overall preparation of the Bali Package.  
4.268.   We are all aware of Japan's participation in the plurilateral negotiations under the WTO, 
including tho se on the expansion of the Information Technology Agreement (ITA) and the 
negotiations on environmental goods (EGA), which are MFN -based negotiations that will provide 
benefits for all Members. Lastly, it should be recalled that the Agreement on Government  
Procurement, as amended last year, has entered into force for Japan.  
4.269.   Turning to the structural reform component, we note that Japan's agricultural policy 
underwent some important changes during the review period. We have taken special note of the 
Plan for  Creating Dynamism through Agriculture, Forestry, and Fisheries and Local Communities 
and its four pillars, aimed at strengthening the production side by reducing production costs, 
establishing an original direct payment scheme to revitalize rural communit ies, establishing food 
value chains, and increasing food demand. We have submitted questions about these 
changes  in Japan's agricultural programmes and will carefully examine the much appreciated 
answers we  receive.  
4.270.   As regards trade facilitation, we partic ularly wish to emphasize the progressive 
improvements in Japan's Authorized Economic Operator (AOE) scheme, which is already 
beginning  to show significant results. Given Japan's prominent role in the negotiations on the 
Trade  Facilitation Agreement, we are  sure that Japan will likewise continue to support the 
Membership's endeavours to ensure its prompt entry into force and proper implementation.  
4.271.   Lastly, as I was preparing this statement I came across a Japanese saying that I thought 
was appropriate in thes e times when, in the midst of the negotiating process, we would like 
to achieve results as soon as possible and are worried about time flying by so quickly. And that 
saying - please forgive my pronunciation - is this: Keizoku wa chikara nari , which, in my language, 
could translate as "all things come to him who waits".  
4.272.   Although this is not part of agenda of the meeting, I cannot pass up this opportunity 
to thank you, Ms  Chairperson, for the impeccable way in which you have conducted the work 
of the TPRB ove r the past year. That brings me to the end of my statement. Colombia wishes 
Japan a profitable trade policy review, which we hope will yield recommendations and suggestions 
that may prove useful.  
PERU  
4.273.   By way of introduction to my statement, I would like to  emphasize that 2015 marks the 
142nd year of official diplomatic relations between Peru and Japan – 142 years of sound and fruitful 
work most recently illustrated by the meeting between the President of the Republic of Peru and 
Japan's Prime Minister durin g the APEC Leaders Summit in Beijing in November  2014.  
4.274.   Given that economic and trade matters are clearly one of the key components 
of Peruvian -Japanese relations, I would like to point out that Japan is the fifth largest destination 
of Peruvian exports and  our second largest trading partner in Asia. In geographical terms, our ties 
stem from our common membership in the Pacific Rim, a region in which we share not only 
extensive trade but also a growing relationship in forums such as APEC, where countries fro m both 
sides of the Pacific are involved in building the world's largest economic area.  
4.275.   Peru and Japan have signed important trade and investment agreements, such as the 
Agreement on the promotion, protection and liberalization of investment, which came in to force 
in December  2009, and their Economic Partnership Agreement, in effect since March  2012. 
The latter was a turning point in Peru's economic and trade relations with Japan, since it provides 
a stable and predictable legal framework for harnessing and  considerably expanding trade and 
investment opportunities.  WT/TPR/M/310 • Japa n 
 
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  4.276.   Over the past 10 years, bilateral trade has more than doubled, totalling more than 
three  and a half  billion US dollars in 2013. Although the bulk of Peru's exports to Japan are 
traditional product s, there has been an increase in non -traditional exports, particularly exports 
of agro-industrial products, which could well grow further still once the sanitary protocols on which 
our two countries have been working have been finalized.  
4.277.   As stated in the S ecretariat report, it should be emphasized that although Japan has 
suffered a period of weak economic performance and major complications for the Japanese 
economy, the latter remains open and transparent. Japan has introduced changes to the 
agricultural se ctor, although it does maintain potentially production - and trade -distorting support.  
4.278.   In this connection, we also wish to underscore the Japanese Government's efforts 
to implement an ambitious "three -arrows" reform programme, centred on monetary easing, fi scal 
stimulus and structural reforms in a number of areas.  
4.279.   Peru welcomes Japan's endeavours to conduct negotiations with countries in various parts 
of the world in order to expand trade under regional trade agreements, which it hopes to increase 
to 70% by 2018. We would also highlight Japan's active participation in the work of the WTO and 
commend it for its domestic reforms aimed at enhancing the competitiveness of its economy. 
We hope that Japan's achievements will be consistent with the legal framework o f the 
multilateral  trading system.  
4.280.   Peru regards this exercise of reviewing Japan's trade policy as a significant opportunity 
to obtain valuable information of benefit to all. We wish Japan a most successful outcome 
of this review.  
4.281.   Peru has submitted questi ons on various aspects of Japan's trade policy that are 
of particular interest to my country, and I would like to take this opportunity to thank the 
Japanese authorities for their replies, which will be forwarded to the Peruvian authorities 
for assessment and follow -up. 
INDIA  
4.282.   With the no minal GDP estimated at about US $5 trillion and the merchandise trade of over 
US$1.55 trillion, Japan remains one of the key drivers of the global economy. Overcoming the 
sluggish economic performance of more than a decade, s ince end 2012, the Japanese economy 
has shown signs of modest recovery. In order to end the prevalent deflation and to revitalize its 
economy, the Japanese Government embarked on an ambitious reform program me, centered 
around the "three arrows " strategy: b old monetary policy, flexible fiscal policy and growth strategy 
that promotes private investment s. As noted in the Secretariat r eport, while the expansionary 
monetary and fiscal policy measures adopted since the last review have been helpful, these have 
not been sufficient to register strong economic growth. The Japanese government continue to 
confront challenges such as very high public debt (gross debt to GDP ratio exceeds 200%), rapidly 
aging population among others. Looking ahead, we note that Japan 's real GDP is estimated to 
grow by 0.8 % in 2015. We wish the Japanese Government  every success as it addresses 
long-standing structural challenges confronting its economy through a series of reform measures. 
A strong Japanese economy  is crucial not only for the Asian region but also the global economy.  
4.283.   India and Japan are Asia 's two largest and oldest democracies. Today, we collaborate 
across diverse sectors within the framework of our special global and strategic partnership. Trade 
and investments constitut e a central pillar of our rapidly expanding partnership. Our bilateral trade 
has been expanding steadily , with trade volume of about US$ 16.5 billion in 2013 -14. The 
conclusion of the India -Japan Comprehensive Partnership Agreement in 2011 has given a new f illip 
to bilateral trade and economic partnership. We are also engaged within the framework of RCEP. 
While Japan has maintained trade deficit in its global merchandise trade, it enjo ys a trade surplus 
with India. We hope to expand bilateral trade in a bala nced manner, harnessing existing 
complementarities. On the investment front, the Japanese FDIs into India have been growing in 
recent years, and more than 1000 Japanese firms are present in the Indian market. The flagship 
bilateral infrastructure projects such a s Delhi -Mumbai Industrial Corridor, Dedicated Freight 
Corridor hold immense promise to usher into a new era of collaborative industrial, technological 
and infrastructure developmen t projects for mutual benefit.  WT/TPR/M/310 • Japan  
 
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  4.284.   In terms of its trade policy, while Ja pan broadly remains an open economy, as brought out 
in the Secretariat r eport and noted by several delegations, it provides significant support and 
protection to the agriculture sector through a comprehensive set of policies such as high tariff, 
non-ad val orem duties, complex TRQ administration, and the trade distorting domestic support. Its 
regulatory regime, technical regulations and SPS measures, which in many cases are more 
stringent than international standards, result in excess ive cost burden to expor ters.   
4.285.   We thank the Japanese delegation for replies to some of the questions we had posed to 
them. These would be reviewed by my authorities. However, let me underline some specific 
concerns, which particularly affect India 's exports to Japan. In the phar maceutical sector, Indian 
companies are unable to access the Japanese market due to stringent and time consuming 
regulatory requirements, including requirement for an Indian company to have joint venture with a 
Japanese company and the need for commercial presence for applying to Pharmaceuticals and 
Medical Devices Agency. The stringent maximum residue levels for chemical products, including 
agro-chemicals, additives for food products act as market entry barriers for our exporters. In the 
IT services market  in Japan, the Keiretsu model makes it difficult for Indian IT firms to directly 
approach customers in Japan. As a result, they often end up as tertiary service providers despite 
their competitive strengths in this sector. We request Japan to review these requirements to make 
them simpler, and reduce regulatory barriers to trade, consistent with international norms and 
standards.    
4.286.   Before I conclude, I would like to underscore the positive role played by Japan in the WTO 
and in the ongoing DDA negotiations . We look forward to working with Ambassador Yoichi Otabe 
and his team as well as other partners in ensuring balanced outcomes in the ongoing negotiations 
to help conclude the Doha Round. With these words, my delegation would like to wish Japan a 
successfu l Trade Policy Review.  
DOMINICAN  REPUBLIC  
4.287.   First, we would like to commend the Government of Japan for its efforts to revive the 
Japanese economy. According to the Secretariat report, Japan has been implementing 
an ambitious reform programme since the previ ous review of its trade policy, in order to overcome 
deflation and revitalize its economy after more than a decade of sluggish performance. 
The programme consists of a "three -arrows strategy": monetary easing (2%  inflation target 
to be achieved at the earl iest possible time mainly through the expansion of the monetary base); 
fiscal stimulus (about US$100  billion in January  2013 and an extra US$53  billion in 
December  2013 in an attempt to boost growth); and structural reforms in areas such 
as agriculture, en ergy and healthcare which will take longer to be implemented, not least because 
the reforms require legislative and administrative changes that take time to prepare.  
4.288.   The expansionary monetary and fiscal policy measures adopted since the last review have 
supported Japan's economy but have been insufficient to achieve strong economic growth. Indeed, 
Japan's real GDP growth is estimated at 0.9% for 2014 (down from 1.5% in both 2012 and 2013). 
The authorities recognize that far -reaching structural reforms are n ecessary to address 
long-standing structural problems and achieve sustainable growth in the future. We concur with 
the Secretariat report that while some steps have been taken in this regard, more is needed, 
including further trade and investment liberaliz ation measures, in order to boost private 
investment, increase productivity and enhance competitiveness. All of this is crucial if Japan 
is to succeed in addressing its persistent trade deficit.  
4.289.   As regards trade policy, Japan has not made any major changes  since the review of its 
trade policy two years ago.  
4.290.   According to the Secretariat report, the tariff continues to be Japan's main border 
restriction. Japan has bound 98.3% of its tariff (159  lines remain unbound). The difference 
between the average bound M FN tariff (5.9%) and the average applied MFN tariff (5.8%) 
in 2014 was negligible, which reflects a high degree of predictability in the tariff. However, 
the average bound rate remains considerably higher for agricultural products (15.2%) than 
for non-agricultural products (3.7%).  WT/TPR/M/310 • Japa n 
 
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  4.291.   We welcome the fact that Japan applies few contingency measures. On the other hand, 
we do note that, according to the Secretariat report, Japan's SPS and TBT requirements are often 
more strict than international standards and the cost of meeting Japan's quality and safety 
standards can be high. We urge the Japanese Government to review these standards in order 
to facilitate access to the Japanese market for the developing countries in particular.  
4.292.   We note with concern that the agric ultural sector continues to receive substantial 
government support including, for example, a relatively high average applied MFN tariff rate 
compared to other sectors, tariff quotas, income support and production control measures. 
According to the Secretar iat report, the main support component is market price support, which, 
along with other transfers based on output and inputs, is potentially one of the most production - 
and trade -distorting forms of support. We encourage the Japanese Government to introduc e the 
reforms needed to further liberalize the agricultural sector.  
4.293.   The Dominican Republic has submitted several questions to Japan relating to services and 
state trading enterprises. We would like to end by congratulating Japan and urging it to continue 
implementing the structural reforms needed to improve the functioning of its economy. We wish 
it every success in this trade policy review and for the future.  
MALAYSIA  
4.294.   Malaysia is pleased to take part in this 12th Trade Policy Review of Japan and associates  
itself with the statement made by the Philippines on behalf of ASEAN.  
4.295.   We would like to commend Japan for actively promoting trade liberalization towards 
strengthening the multilateral trading system. On the other hand, while we recognize the 
leadership ro le assumed by Japan, we believe that Japan is in a position to contribute more. This is 
so as we work towards producing a post Bali work programme. We are confident that Japan, with 
other key Members, will be able to strongly contribute towards a meaningfu l outcome of the Doha 
negotiations that will consequently bring a positive impact to international trade.  
4.296.   While welcoming the trade i nitiatives and further liberaliz ation undertaken by the Japan 
over the review period, Malaysia is also concerned over a num ber of measures that could be 
regarded as barriers to trade. In particular, we remain conce rn on structural adjustment in 
agriculture sector including Japanese wood programme as well as imposition of various 
requirements for standards and technical regulat ions through Japan Industrial Standards and 
Japan Agricultural Standards. Thus, we encourage Japan to review these measures with a view to 
simplify the procedures and not t o be burdensome to our traders.  
4.297.   On the bilateral front, we are pleased that the bila teral economic relations between 
Malaysia and Japan remain strong and vibrant. In 2014, Japan was Malaysia 's 3rd largest trading 
partner and our bilateral trade increased by 1.4% from t he year before, amounting to 
US$42  billion. In terms of investment, Jap an continues to be Malaysia 's top source of foreign direct 
investments (FDI) since 1980. From January to September 2014, a total of 47 manufacturing 
projects were approved with total investments  amounting to US$ 3.26 billion.  
4.298.   Since 2006, the Malaysia -Japan  Economic Partnership Agreement (MJEPA) has enhanced 
bilateral economic relations between Japan and Malaysia in creating opportunities for bilateral 
collaboration in various areas. We look forward to increased economic cooperation projects with 
Japan under  MJEPA. Both countries are also negotiating the Trans -Pacific Partnership Agreement 
(TPP) as well as Regional Comprehensive Economic Partnership (RCEP) that will further intensify 
Malaysia and Japan bilateral and regional partnership.  
4.299.   Finally, we would lik e to take this opportunity to thank the delegation of the Japan for 
responding to our questions and these are being examined at the Capital. In addition, we will also 
be submitting additional questions and we look forward to receiving feedback.  
EL SALVADOR  
4.300.   The Secretariat report shows that Japan has a generally open trade regime. It is the 
world's  fourth largest exporter and importer of goods, and it ranks fifth and fourth among world WT/TPR/M/310 • Japan  
 
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  exporters and importers, respectively, in services trade. Its main activi ties are in the 
manufacturing sector, specifically machinery and transport equipment, boosted by the country's 
strong automotive industry.  
4.301.   We also note that Japan has taken a series of initiatives to attract foreign direct investment 
and aims to double the  current amount of FDI through tax incentives. It is the world's second 
largest outward investor, chiefly investing in finance and insurance, communications, mining and 
wholesale and retail trade.  
4.302.   El Salvador and Japan are united by strong ties of friendsh ip and cooperation and last year 
celebrated 80 years of diplomatic relations. El  Salvador was one of the first Latin American 
countries to open its market to Japanese products by importing Japanese vehicles.  
4.303.   Japan has in turn provided support for a number of social and development projects 
in El Salvador, thus contributing to the country's economic growth.  
4.304.   Japanese investment in El  Salvador amounted to US$38  million in 2014, centred on the 
electronics market (e.g. electronic components, home appliances and computer peripherals, 
cable and harnesses assembly) and medical apparatus.  
4.305.   In trade terms, El  Salvador's exports to Japan were worth US$37  million in 2013, 
a 13% increase over the previous year, while imports in that same year amounted 
to US$177  million, u p by 3% over 2012.  
4.306.   It should be emphasized that trade between Japan and El  Salvador is relatively 
complementary, since our main exports are coffee, made -up textile products and footwear, 
while our imports are chiefly iron and steel products, vehicles and t yres. 
4.307.   In the multilateral negotiations under the WTO, we have received support from Japan 
for the various initiatives promoted by El  Salvador as a small, vulnerable economy, and would like 
to take this opportunity to thank Japan for its sustained support.  
4.308.   In view of the above, we will conclude by congratulating Japan and wishing it every 
success in this trade policy review.  
BENIN 
4.309.   This 12th review of Japan's trade policy gives us an opportunity to fully appreciate the steps 
taken by Japan to promote a robust  economy and an attractive business climate.  
4.310.   Since the country's previous review in 2013, the Japanese Government has implemented 
economic policies that have helped to boost economic recovery and overcome deflation, and the 
economy is now growing at a firm  pace.  
4.311.   In order to consolidate the results achieved and chart new courses, the 
Japanese  Government has initiated bold initiatives in a variety of areas such as agriculture, 
intellectual  property, banking and securities, and insurance, consistently taking i nto account 
the gender approach aimed at promoting the active participation of women in the country's social 
and economic life.  
4.312.   In agriculture, appropriate action is being taken with a view to raising annual exports 
of Japanese agricultural, forestry and f isheries products and foods to ¥1  trillion by 2020 and 
thereafter to ¥5  trillion by 2030.  
4.313.   Moreover, the "Aggressive Agriculture, Forestry, and Fisheries" initiative aims to make 
these three sectors competitive whilst preserving natural resources in general  and land (as regards 
the agricultural sector) in particular.  
4.314.   In the intellectual property sphere, Japan's endeavours are focused on building 
up an attractive and innovative intellectual property system  that contributes, among other things, 
to usefully enhancing industrial competitiveness.  WT/TPR/M/310 • Japa n 
 
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  4.315.   In the financial sphere, a monitoring system has been established, comprising, amongst 
other tools and mechanisms, measures to enhance the overall attractiveness of Japan's financial 
and capital markets.  
4.316.   It is also import ant to highlight the enactment of the Act for Amendment of the Insurance 
Business Act, which includes measures to ensure the reliability of insurance and develop 
the insurance market.  
4.317.   Japan remains committed to the multilateral trading system and takes an active part in the 
negotiations on the various topics covered by the Doha Development Round.  
4.318.   Turning to bilateral cooperation, the delegation of Benin particularly welcomed the 
Fifth Tokyo International Conference on African Development (TICAD V), held in Yokohama 
in June 2013.  
4.319.   It hopes that the recommendations, resolutions and decisions contained in the 
2013 Yokohama  Declaration  and the Yokohama Action Plan 2013 -2017 will continue to be properly 
monitored with a view to their effective implementation, in p articular the aid programme for Africa.  
4.320.   As regards least developed countries, Benin welcomes the fact that a growing number 
of products from these countries are being granted duty - and quota -free access to the Japanese 
market, a scheme under which treatmen t coverage has risen from 86% to approximately 98% of 
tariff lines.  
4.321.   The delegation of Benin commends Japan for its leadership and active involvement 
in building a strong multilateral trading system, centred on the core issue of development.  
NEPAL  
4.322.   Since the  inception of the GATT and later on WTO, Japan has been playing very 
constructive and supportive role in strengthening and further advancing rule -based multilateral 
trading system. As one of the largest economies and one of the leading exporting countries,  Japan 
has a profound responsibility to fulfil to promote multilateral trading system. It is of course a 
matter of appreciation that despite having its own challenges in maintaining desired economic 
growth and stability, Japan continues its support for the  upliftment of poor and vulnerable 
economies of the world.  
4.323.   The ambitiou s reform package also known as "Abenomics " that Japan has been 
undertaking since its previous TPR, has been found effective in revitalizing i ts economy. The 
reform package -based on a "three arrows strategy " i.e. flexible monetary policy, expansionary 
fiscal policy and structural reforms in areas such as agriculture, energy and healthcare, has started 
recovering Japanese economy gradually from the decade -long stagnant growth, though desir ed 
level of progress is yet to be made.  
4.324.   It is interesting to note that Japan continued to be the world 's fourth largest exporter and 
importer of goods during the review period while in services trade, it ranked fifth and fourth 
among world exporters and i mporters, respectively. Similarly, it is worthwhile to note that Japan is 
the second -largest outward direct investor in the world, with US$136 billion in 2013.  
4.325.   Japan has been a longstanding development partner of Nepal. The Government of Japan 
has been pro viding assistance to the Government of Nepal since early 1960 through various 
programmes implemented by Japan International Cooperation Agency (JICA).The assistance 
provided in the form of grant and loan have been very useful in the development of some of the 
key infrastructures such as hydro power generation and road construction in Nepal.  
4.326.   On trade and investment front, Japan has been one of the major investors and one 
important trading partners of Nepal both in terms of export and import. As a small LDC economy, 
Nepal suffers persistent trade deficit with Japan over the years, which, needs to be rectified in the 
coming days through mutual efforts.   WT/TPR/M/310 • Japan  
 
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  4.327.   On the front of services trade, m any Nepalese technical interns have benefitted from the 
programme being im plemented by Japan International Training Cooperation Organization (JITCO). 
JITCO programme has been found very effective to enhance technical knowhow of Nepalese 
interns and providing them with decen t jobs in Japan and elsewhere. As it has been useful for  
countries like us, we urge the Government of Japan to increase quota for trainees under JITCO 
programme.  
4.328.   Nepal has been a popular destination for many Japanese tourists for different purposes 
including sight -seeing, mountaineering expedition and trekking . The number of tourists visiting 
Nepal has been increasing over the years. We expect more visitors from Japan in the days ahead.  
4.329.   Japan currently provides DFQF facility to LDCs in approximately 98% of its defined tariff 
lines. In April 2011, Japan extende d the effective period of the GSP scheme up to 31 March 2021, 
which is a welcome move. However, as some of t he agriculture and manufactured  products of 
LDCs interests are still excluded from the scheme, there remains some room for further 
improvement. Like wise, preferential rules of origin applicable to Japan 's GSP remain more or less 
the same as in 1970s. It calls for further improvement and simplification in line with Bali Ministerial 
decision to facilitate LDCs ' export.  
4.330.   Japan has one of the most liberali zed trade regimes with an average rate of 5.8% applied 
MFN tariff. However, for agricultural products as the average bound rate remains considerably 
higher i.e.15.2%, LDCs are still facing difficulty to penetrate agriculture market of Japan. Besides, 
as Japan applies a very high standard of SPS and TBT measures on imported goods, meeting some 
of those stringent standards for LDCs are beyond their capacity. As a result, LDCs are facing 
challenges to enhance their export to Japan despite availability of DFQF for 98% tariff lines. 
Hence, we call upon Japan to provide 100 % DFQF for LDCs ' agro and manufactured products with 
flexible and reasonable SPS and TBT standards.  
4.331.   As indicated in High Level meeting in February this year, and re iterated by delegation of 
Japan in its introductory remarks this morning, we encourage Japan to submit its notification of 
preferences to be provided to LDCs services and services supplier at the earliest possible, to ease 
LDCs services and services supplier for the enhancement of thei r trade in service sectors.  
4.332.   Lastly, we wish Jap an a successful and productive Trade Policy R eview.  
URUGUAY  
4.333.   Uruguay has historically maintained friendly and constructive relations with Japan in the 
various spheres covered by our bilateral relationship, bot h at policy, economic and trade levels and 
in matters relating to cooperation and culture.  
4.334.   Uruguay welcomes and appreciates the technical and community cooperation provided 
by the Japanese Government in matters relating to the environment, health, social w elfare and 
training, as well as Japan's economic and financial cooperation. The scholarship programmes for 
studying in Japan and the Senior Volunteer Programme are extremely important to Uruguay.  
4.335.   As regards bilateral trade in goods, the balance of trade be tween Uruguay and Japan 
has recorded a deficit in recent years, as a result of the decline in Uruguayan exports during 
that period.  
4.336.   Uruguayan imports from Japan have also diminished in the past few years. The key 
imports have higher value added than Urugua yan exports, and include vehicles, rubber and rubber 
articles, machinery, nuclear reactors and electrical equipment.  
4.337.   Japan's agricultural trade deficit amounted to US$58  billion in 2013. Uruguay annually 
exports some US$12  million worth to Japan, chiefly p rimary goods, which means that, in principle, 
Japan is a most interesting market. Uruguay's main exports to Japan are wool tops (42%), 
wool grease and lanolin (14%), soybeans - which have undergone an extraordinary increase 
in recent years, rising from US$ 52,000  worth in 2011 to over US$2  million in  2014 (9%) -, 
frozen  fish (8%), meat extracts and preparations (5% and 2.3%, respectively), cigars (5%), 
mandarin orange juice (2.8%), and wood in the rough (2.3%). It would be worth exploring with WT/TPR/M/310 • Japa n 
 
- 47 - 
 
  the Ministries  concerned the actual opportunities and key problems involved in increasing sales of 
these products, which already have access to the Japanese market. In any event, after reading the 
Secretariat report we  have a number of questions which may be of interest  in giving further insight 
into Japan's policies. The following written questions will accordingly be submitted to Japan:  
(1) As regards authorized economic operators (AEOs), paragraph 3.3 of the Secretariat report 
states that on maritime cargoes, the rele ase time is 6 minutes for AEOs as against 
156 minutes (26  times longer) for non -AEOs. Could Japan briefly outline the customs 
procedures for AEOs that chiefly explain this difference (formalities and pre -arrival 
submission of information, release prior to the final determination of customs duties, etc.)?  
(2) Japan has 159 unbound tariff lines, relating mainly to fisheries, petroleum oils, and wood 
and articles thereof (para. 3.19). Does Japan intend to bind these lines in the near future? 
Why are the unboun d products concentrated in these three sectors?  
4.338.   The third question is the following:  
(3) Could Japan briefly describe the key changes introduced by the Basic Policy for Fruit 
Industry Promotion of 2010 compared to the previous policy? What are the main fru its, 
defined as "more valuable fruits", to which Japan is seeking to convert on -farm production?  
4.339.   There are numerous opportunities for increasing existing trade and for trading new 
products and services. In this respect, it is important to highlight the con crete developments in our 
economic agenda as a result of the good level of dialogue between our two countries. Indeed, 
Uruguay and Japan signed an agreement in Montevideo on 26  January  2015 with a view 
to expanding bilateral trade and promoting the liberal ization, promotion and protection 
of investment. The aim was to supplement the current legal framework, provide legal certainty, 
build up capacity, facilitate access to resources and attract investment.  
4.340.   This agreement will undoubtedly serve as a catalyst f or increasing trade and further 
leveraging Japanese investment in Uruguay.  
4.341.   A further development which the delegation of Uruguay would like to mention is the recent 
technical mission conducted by the Japanese Ministry of Agriculture, Forestry  and Fisheries  as part 
of the process for the approval of exports of boneless beef to Japan, which is still being finalized.  
4.342.   Lastly, we would like to reaffirm our two countries' interest in joining forces to seek 
a successful conclusion to the Doha Development Round and  to strengthen a multilateral trading 
system based on predictable, transparent and balanced rules.  
4.343.   Uruguay wishes Japan every success in the 12th review of its trade policies.  
HONDURAS  
4.344.   We are pleased to note that the Japan Revitalization Strategy sets the target of doubling 
FDI by 2020 by expanding the use of public -private partnerships, a mechanism which my country 
is also seeking to develop.  
4.345.   According to the Secretariat report, the Anti -Monopoly Act was amended 
in December  2013 with a view to ensuring exp ertise, enhancing procedural fairness and abolishing 
the hearing procedure of the Japan Fair Trade Commission (JFTC) for administrative appeals. 
The aim is that any appeal regarding decisions of the JFTC will be subject to the exclusive 
jurisdiction of the  Tokyo District Court.  
4.346.   We acknowledge and welcome Japan's efforts to strengthen copyright protection in the 
digital environment, introduce trademark protection for non -traditional marks and improve the 
efficiency of the patent system, as well as the judici al decision on the protection of standard 
essential patents.  WT/TPR/M/310 • Japan  
 
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  4.347.   As regards our bilateral trade in 2014, our imports were worth around US$62  million, 
mostly motors, electric generators, tractors and rubber. Our exports of products such as coffee, 
beans and tub ers amounted to more than US$30  million.  
4.348.   We wish to highlight the 17th Japan -Central America ( SICA) Forum  for Dialogue  and 
Cooperation, which underscored the importance of using the existing cooperation mechanism 
of attracting Japanese firms to the region in order to increase trade and boost investment and job 
creation in Central America.  
4.349.   We also welcome the signing of a grant agreement with Honduras for an investment 
of L 16 million in community education and health projects in five departments in the coun try. 
4.350.   In 2015, Honduras and Japan will be celebrating 80 years of bilateral relations and the ties 
of friendship between Japan and Latin America, including Honduras, are growing steadily stronger. 
This is a very significant year for Japan's International Co operation Agency (JICA) in Honduras, 
because the agreement  between the Honduran and Japanese Governments concerning Japan's 
Overseas Cooperation Volunteers was signed 40 years ago, in 1975.  
4.351.   Lastly, I would like to reiterate our thanks for this renewed oppo rtunity to exchange 
views  and examine Japan's trade policies and practices. We wish the authorities a successful 
trade policy review.  
KINGDOM  OF SAUDI  ARABIA  
4.352.   Over the period of review, the "Abenomics " have supported the overall i mprovement of 
Japan 's econo my. Despite a challenging environment, these policies are on the verge of ending the 
endemic deflation and rev italizing the Japanese economy.  The Kingdom of Saudi Arabia trusts that 
the additional reforms recently adopted, including the "Basic Policies for  the Economic and Fiscal 
Management and Reform 2014 ", the "Revitalization Strategy 2014 " and the "Regulatory Reform 
Implementation Plan " will continue to support the improvement of Japan 's economic performance 
and the efforts undertaken  to reduce the budge t deficit. The Kingdom of Saudi Arabia commends 
Japan for remaining transparent and keeping its economy open even in difficult times and for 
promoting the continued development of an open and fair trading environment creating 
opportunities benefiting devel oping and developed countries alike. These efforts have certainly 
contributed to the recovery of Japan economy, through increased export opportunities  and more 
competitive imports.  
4.353.   This year marks the 60th anniversary of the establishment of diplomatic re lations between 
the Kingdom of Saudi Arabia and J apan. Over this period, both countries have significantly 
developed their political, economic and trade relationships and have grown into major tr ading and 
investment partners. On the occasion of the visit o f King Salman bin Abdulaziz Al Saud to Japan in  
2014, the Saudi and Japanese G overnments issued a joint statement on their determination to 
strengthen  the "Comprehensive Partnership - From Ene rgy to Synergy " in all fields. This visit will 
reinforce future cooperation and excha nges between the two countries.  
4.354.   Japan is the Kingdom of Saudi Arabia 's main trading partner. In 2013, exports from the 
Kingdom of Saudi Arabia to Japan, which mainly consisted of crude oil and petroleum p roducts, 
amounted to almost US$ 50 billion. With exports of about 1.16 million barrels of crude oil a day, 
the Kingdom of Saudi Arabia is the most important exporter of crude oil to Japan and supports its 
efforts to secure sufficient energy production  after the Fukushima disaster. The Ki ngdom of Saudi 
Arabia imports, mainly automobiles, machinery and equipment and metals, fo r US$ 6.8 billion from 
Japan.   
4.355.   Over the period of review, Japan has continued to play a central role in the reinforcement 
of the multilateral trading system and has be en active in bilateral and plurilateral t rade 
negotiations.  On many occasions, Japan reasserted its commitment to trade liberalization under 
the auspices of the WTO and its support for the conclusion of the DDA. Japan has constructively 
engaged in the neg otiations that led to the successful conclusion of the Bali Ministerial, including in 
the negotiations on the Trade Facilit ation Agreement.  WT/TPR/M/310 • Japa n 
 
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  4.356.   The Kingdom of Saudi Arabia looks forward to continuing the very close working 
relationship with Japan, in and outsi de this organization, to reinforce bilateral and global trade in a 
fair and inclusive manner.  
NIGERIA  
4.357.   At the time of its eleventh TPR in 2013, Japan was recovering from the earthquake and 
tsunami of 2011 which resulted in sharp declines in private  consumpt ion and stock -building  and 
widespread supply chain disruptions affecting production across the country, particularly in 
export -led sectors such as automobiles and electronics. Production had also been affected by the 
shutdown of nuclear power plants follow ing the accident in Fukushima in 2011. Moreover, Japan 
confronted other key challenges, notably very high public debt, rapidly aging population, and 
nearly two decades of deflation and low growth. Nigeria is pleased to note that since then, Japan 
has been implementing an ambitious reform programme known as Three Arrow Strategy aimed to 
overcome deflation and revitalize the economy thereby achieving economic growth of 
approximately 3% in nominal terms and approximately 2% in real terms on average.  
4.358.   The inward  FDI in Japan is far below that of other major developed economies. The 
continued low level of FDI is attributed to factors such as the relatively high cost of doing business 
in Japan; strict and complicated domestic sector regulations; limited availabilit y of risk capital; 
regulatory barriers; the difficulty involved in hiring qualified employees; and impediments to 
mergers and acquisitions. A s indicated in the Secretariat r eport, Japan aims to double the 
outstanding amount of FDI by foreign companies to ¥ 35 trillion by 2020. To achieve this, tax 
incentives to stimulate investment and private -demand -led growth are also being discussed. A cut 
in corporate tax (currently 30%) is considered as the initial major step. It would be interesting if 
Japan would shar e with us the sectors they are targeting for the inward FDI.  
4.359.   The report of the Secretariat states that government policy also affect s sales of the 
processed products. Although tobacco products are subject to excise duties, some brands, all 
owned by Japan T obacco, are subject to lower rates. Furthermore, importers, wholesalers, and 
retailers of cigarettes are required to register with the Minister of Finance who must approve final 
retail prices. Nigeria would like to know if such policy is consistent with th e national treatment.  
4.360.   The Government report states that Japan has maintained and strengthened the multilateral 
trading system under the WTO as the main pillar of Japan 's external economic policy. At the same 
time, Japan has also promoted its regional and b ilateral 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. Nigeria would like to know 
how the regional an d bilateral policies help in promoting multilateral trading system.  
4.361.   The bilateral relations between Nigeria and Japan dates back to 1964 when Nigeria 
established diplomatic ties with Japan, and the relations have been growing steadily in political, 
economi c and socio -cultural spheres. The relations have been characterized by cooperation and 
trust between the leaders of our two countries, and owe a great deal to the desire of our two 
countries to forge ahead in addressing the important issues that would make  the world a better 
and more secure place to live. In this context, Nigeria and Japan have intensified their bilateral 
relationship and cooperation through exchange of visits at the highest level of our Governments.  
4.362.   Japan has over the years promoted an act ive cooperation with Nigeria in the educational 
and technical fields, through the Japan International Cooperation Agency (JICA), which sponsors 
educational exchange programmes, build schools and offer grants to scholars for specific studies in 
Japan. JICA,  which has an office in Abuja, has also helped Nigeria in the field of rural electrification 
and agricultural projects, such as rice production and milling in Edo and Imo States.  
4.363.   Presently, Marubeni Corporation of Japan is involved in the development of th e Nigeria 's 
energy sector. The Corporation rehabilitated the Egbin Thermal Station in Lagos and is still very 
much engaged in other power projects in Nigeria. Other companies like the Chubu Electric and 
Mitsubishi Company of Japan are also involved in powe r projects in Nigeria.  WT/TPR/M/310 • Japan  
 
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  4.364.   Finally, as an important Member of the WTO, Japan has remained a supporter of the 
multilateral trading system. In this context, we wish to acknowledge the constructive and 
proactive engagement of the delegation of Japan in Geneva.  
MALI 
4.365.   We have noted with interest the major actions being undertaken or planned by the 
Japanese Government with a view to stepping up the process aimed at opening trade and taking 
a more active part in the facilitation of trade between Japan and the rest of the world.  
4.366.   We also appreciate Japan's efforts towards greater transparency, which are greatly helping 
to increase the level of foreign trade. The results already achieved, which are reiterated in the 
report by Japan, are remarkable.  
4.367.   Mali thanks Japan for t he excellent level of political, economic and trade relations that have 
prevailed between the two countries since Mali's independence and have grown even closer today. 
As an example of the benefits of this exemplary cooperation, the Government of Japan has  
provided a working capital grant for several years now in order to facilitate access for Mali's 
economic operators to the financing needed for imports from Japan.  
4.368.   The southern segment of the Dakar -Bamako corridor, which plays a large part in opening 
and p romoting trade between Mali and the rest of the world, became operational in part thanks 
to the building of four bridges, including one over the Faleme River, on the border  between 
Mali and Senegal.  
KENYA  
4.369.   We take this opportunity to acknowledge the fact th at Japan is a key partner of Kenya 
particularly in the area of trade and investment.  
4.370.   We commend Japan for implementing an ambitious reform programme since 
December  2012 aimed at addressing deflation and revitalization of its economy after more than a 
decad e of sluggish performance. The implementation of the reforms has so far supported the 
economy of Japan. In this connection, we encourage Japan to sustain the process of 
implementation of the reforms which we believe will contribute to achieving a strong ec onomic 
growth in the long run.  
4.371.   The multilateral and regional trade agreements supported by domestic reforms to improve 
competitiveness have played a critical role in boosting trade and making Japan an open 
transparent economy. However, we are concerned tha t support and protection remains high in 
some areas particularly agriculture. In the context of the current DDA negotiations, we encourage 
Japan to further liberalize and open its agriculture sector to international competition.  
4.372.   We also note that Japan 's SPS and TBT requirements are often more stringent than 
international standards. The cost of meeting such stringent standards can be burdensome 
particularly for developing and least developed countries and therefore act as barrier to exports 
from these group s of countries.  
4.373.   At bilateral level, Japan, over a long period, has extended Technical Cooperation to Kenya 
in the form of Loans and Grants through its flagship: Japan International Cooperation Agency 
(JICA) in key sectors such as energy, infrastructure, ag riculture and rural development, and 
health.  
4.374.   We also commend Japan for supporting capacity development for trade facilitation projects 
at border posts and international trade facilitation in the Eastern African Region.  
4.375.   Finally, we express our appreciation to Japan 's strong support to the multilateral trading 
system and especially the commitment to Aid for Trade initiative.  WT/TPR/M/310 • Japa n 
 
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  QATAR  
4.376.   Even as there has been much change in Japan, and in the global economy, since Japan 's 
last Trade Policy Review, certain fundament al factors remain unchanged. Japan remains a key 
player and partner in the international trading system. Japan also has been vigilant in helping 
avoid a substantial slip backwards into protectionism within the global trading system.  
4.377.   For the State of Qatar , Japan remains our largest trading partner. We are confident that 
the current trade policies in Jap an will accelerate the recovery  process of the world economy.  
4.378.   We wish Japan a successful Trade Policy Review.  
JAPAN  
4.379.   I would l ike to thank the discussant, Mr  Jean-Paul Thuillier, for his very thoughtful 
presentation and I would also like to thank all the delegations who submitted statements.  Some 
comments assessed positively Japan 's policy and efforts and others posed questions. We thank all 
Members for the ke en interest  and high expectations for Japan in addressing its current and future 
challenges.  
4.380.   The responses to the statements will be made on Wednesday but I would like to make a 
brief additional remark on Japan 's structural  reform, the third arrow of Abeno mics, taking into 
account the strong interest expressed by some delegations today. The economi c reform has been 
a pillar and has  set policies since the last start of the Abe Administration. As I have explained in 
my opening statement, the reform has result ed in a number of achievements. These achievements 
and the orientation for sustained reforms continue to receive strong support  from Japan.  
4.381.   Future challenges in the current growth strategy include various specific targets in foreign 
areas: to continue to promote investment in Japan, including encouraging business start -ups; to 
continue to strengthen utilization of human resources, enhancing female participation at the work 
place, and increasing the number of international students; to create new jobs by ex panding the 
market in various sectors, including health care; and to promote global economic integration by 
further increasing EPAs and FDIs, as well as attracting international tourists.  
4.382.   In addition, the Government of Japan aims to advance through the ref orms which will be 
reflected in the revision of the global strategy expected in the middle of this year. As the world 
economy continues to become interdependent, Japan remains committed to be open to the world 
as a supporter of t he multilateral trading sys tem. We appreciate the Members ' continued support  
and understanding.  WT/TPR/M/310 • Japan  
 
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  5  REPLIES BY THE REPRESENTATIVE OF JAPAN  AND ADDITIONAL COMMENTS  
5.1.  As many people may be aware, today is  the 11th of March which marks the fourth 
anniversary of the catastrophic Great East J apan Earthquake, which claimed so many precious 
lives in the same fleeting moments and inflicted such extensive damage ac ross wide areas of the 
nation. Taking this opportunity, we wish to reiterate our heartfelt gratitude for helping hands 
kindly extended to Japan from all over the world.  
5.2.  Coming back to TPR, I recall a fruitful discussion on Monday and would like to express my 
appreciation to Madame Chair, Mr  Thuillier as a discussant, and so many delegations  who 
expressed their views on Japan 's trade  policy. In particular, I was very much encouraged by the 
supports referring to the fact that Japan maintained free trade policy despite the  damages from 
the earthquake. I also took note of some Members ' positive evaluation toward the high 
predictability of Jap anese tariffs as the gap of MFN applied rate and MFN bound rate in Japan is 
significantly low. Some also praised Japan 's position of not frequently reso rting to trade remedy 
measures.  
5.3.  We also would like to thank many Members who highly evaluated our polici es such as the 
"Three Arrow Strategy " reforms of Abenomics, Japan 's active roles in various activiti es of the WTO, 
including the Doha Round  negotiations, Japan 's active engagement in plurilateral negotiations, 
such as ITA, EGA, TiSA and GPA, Japan 's EPA/FT A policies that complement the WTO, Aid for 
Trade, GSP and so on.  
5.4.  I also heard a number of interventions that raised questions and comments. I am pleased to 
take this opportunity  to deliver responses to them. I would like to cover the concerns which were 
raised on Monday to the extent possible within the given time limit. We would like to provide our  
written responses to the rest.  
Macroeconomic policies  
Public debt  
5.5.  A question was raised on Japan 's effort to reduce public debt.  
5.6.  While Japan 's fiscal situation  is extremely severe as its public debt has cumulatively 
increased,  the Government aims to achieve both economic revitalization and fiscal consolidation in 
order to secure the trust from markets and also from the international community.  
5.7.  As I mentioned on Monday, the Government  of Japan  will formulate a concrete plan by the 
summer of 2015 for achieving a primary surplus of the central and local govern ments by FY2020.  
Monetary Policy  
5.8.  Some Members referred to Japan 's monetary measures including its potential spillover effe ct. 
The aim of the BOJ 's monetary policy and monetary measures is to ensure the relief from deflation 
and to achieve an economic virtuous circle and sustainable growth. I would like to reiterate that 
these measures  do not target exchange rate s. Japan has been committed to the agreements o n 
exchange rates in G -20 and G -7. 
FDIs  
5.9.  Many delegations expressed interests in how Japan intended to increase FDIs from abroad.  
5.10.  With the Council for Promotion of Foreign Direct Investment in Japan as the cont rol tower, 
Japan is carrying out necessary institutional reforms as well as efforts to search and encourage 
specific FDI projects.  
5.11.  For the prompt improvement of investment climate in Japan, the Council is working to 
identify priority tasks, which include strengthening multi -language services and nurturing 
personnel with global perspectives.  WT/TPR/M/310 • Japa n 
 
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  5.12.  In addition, Japan is considering to enhance the function of attracting investment through 
the coordination of relevant Ministries, agencies and local governments, and to implement 
investment promotion events focused on promising sectors where growth and/or revitalization of 
domestic market is expected.  
Trade Policies  
WTO  
5.13.  Issues on fisheries subsidies were raised. As is described in Japan 's proposal in 2011, 
TN/RL/GEN/17 1, Japan has committed itself to the long -term conservation and sustainable use of 
fisheries resources and has made various efforts for this goal in a number of international fora 
including WTO. Japan will continue to be engaged in this area.  
5.14.  Regarding the  question of the notification of fisheries subsidies to the WTO, we recognize 
the importance of transparency, and we are currently considering wha t program me needs to be 
notified.  
FTAs/EPAs  
5.15.  With respect to the question on how RTAs contribute to the multila teral trading system, 
Japan considers that bilateral and regional trade agreements promote trade liberalization, and that 
they are complementary to the WTO. Japan considers that this understanding has been widely 
shared among the WTO Members.  
5.16.  With regard t o the request for enhancing transparency of RTAs negotiations, in particular 
TPP, there are natural limitations to what parties can provide on the details of ongoing RTA 
negotiations. Information will be fully available after the conclusion of such negotia tions. 
Customs Procedures  
5.17.  There was a request for information on the requirements and the benefits to be an AEO 
(Authorized Economic Operator).  
5.18.  Under the current Japanese laws and regulations, main requirements for AEOs include: 
(1) the establishment of an  internal compliance program including security standards; (2) having a 
capability of conducting proper and reliable business operations; and (3) having no legal violation 
records for a certain period of time.  
5.19.  The m ajor benefit of becoming an AEO is descri bed in paragraph 3.2 of the Secretariat 
report which include s: (1) to allow goods to be released before filing the customs duty declaration ; 
and (2) to import declarations can be filed in advance of cargo arrivals. In addition, there is a 
benefit of a decl ine in the frequency of documentary examinations and physical inspections of its 
import and  export cargoes.  
5.20.  There was a request for the review of the Customs requirement for advance cargo 
information.  
5.21.  The Japan Customs introduced the Advance Filing Rules o n Maritime Container Cargo 
Information in March 2014, with a view to responding to the need for ensuring enhanced security 
of the global supply chains after the 11 September terrorist attacks in 2001.  
5.22.  The rules are in line with the "WCO SAFE Framework of S tandards to Secure and Facilitate 
Global Trade ", which is a guideline for Customs administrations developed by the WCO (World 
Customs Organization) for the purpose of ensuring supply chain security while maintain ing the 
facilitation of trade. We understand  that Customs rules, including a similar require ment of advance 
information  have been im plemented by other Members  as well . WT/TPR/M/310 • Japan  
 
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  Agriculture  
5.23.  Japan appreciates the many comments o n Japan 's agricultural policy. Today, I would like to 
highlight the following four main points.  
5.24.  First, the food security. While maintaining basic foundation for agricultural production in the 
country, Japan imports a large amount of agricultural products. Specifically, net imports of 
agricultural products in 2011 were US$65.2 billion, wh ich was the largest in the world, thus 
significantly contributing to the economies of food exporting Members.  
5.25.  Given the importance of food security in the current interdependent world, ensuring food 
import is crucial for countries like Japan. In this light , Japan has been advocating rules on export 
restrictions in v arious fora including the WTO. We have achieved concrete results in some EPAs 
already.  
5.26.  Second, agriculture is one of the major target areas of Japan 's structural reforms and its 
growth strategy o f Abenomics.  The current strategy, which is consistent with WTO obligations, 
includes:  
(1)  increasing the ratio of farmland used by leading farm ers to 80% in the next 10 years;  
(2)  reducing the cost of rice production by leading farmers by 40% in the next 10 yea rs 
compared with the current national average co st; 
(3)  increasing exports of agricultural, forestry and fisheries products and foo ds to one 
trillion yen by 2020; and  
(4)  regarding the reform of the Central Union of Agricultural Co -operatives, the 
Government of Japan will aim to submit relevant bills during the current ordinary Diet 
session.  
5.27.  Third, Japan 's existing trade measures on agricultural products, including tariffs of various 
levels, TRQ administration, and domestic support are consistent with the WTO Agr eements.  
5.28.  Fourth, Japan recognizes that agriculture is an important part of trade liberalization 
negotiations in th e WTO or in FTAs/RTAs negotiations. Japan actively parti cipates in those 
negotiations. Trade negotiations  where each party has both defensive and offensive interests, are 
concluded as a package and agricult ure is an important part of it.  Whenever agreements have 
been achieved, Japan  implements them in a good faith.  
SPS/ TBT 
SPS 
5.29.  There was a concern raised on Japan 's SPS meas ures and relevant regul ations. Japan 's SPS 
measures are, in general, based on relevant international standards, or based on scientific risk 
assessment, where its measures do not conform to relevant international standards, in accordance 
with the SPS Agreement.  
5.30.  Regarding the impo rt restriction on beef, the Ministry of Health, Labour and Welfare (MHLW) 
first collects information about the country concerned on its BSE control, and then the MHLW 
requests risk assessment to the  FSC (Food Safety Commission). The MHLW considers relaxati on of 
the beef import requirement based on the result of the risk assessment made by the F ood Safety 
Commission  on a scientific basis.  
5.31.  When approving food additives or establishing Maximum Residue Levels (MRLs) for 
pesticides including insecticides, Japan takes Codex standards into consideration. Efforts are being 
made to accelerate the safety assessment process through enhancing the communication between 
the MHLW and FSC and facilitating the wo rk in each of the two agencies.  WT/TPR/M/310 • Japa n 
 
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  TBT 
5.32.  Comments were also r aised o n Japan 's TBT measures. When establishing its TBT measures, 
Japan uses the relevant international standards, such as ISO standards, Codex standards, UN 
Regulations (1958 Agreement) and UN Global Technical Regulations (1998 Agreement), as a basis 
wherever p ossible.  
5.33.  Regarding Japanese Industrial Standards (JISs) and Japan Agricultural Standards (JASs) 
which have corresponding international standards, I would like to share with Members that 97% 
and 77% of them have already aligned with relative intern ational s tandards respectively.  
NAMA  
Pharmaceutical Sector  
5.34.  Difficulties were pointed out by Members in access to the Japanese generic pharmaceutical 
sector. In Japan, when a foreign company wishes to export a drug manufactured outside of Japan, 
and if there is a co operation with another company in Japan with the authorization on 
manufacturing and selling pharmaceuticals, the drug can be applied for approval th rough such a 
company in Japan. A foreign company is not necessarily required to have a joint venture with a 
Japanese company or to establish its own branch office in Japan.  
5.35.  On the other hand, authorization holders are responsible for a wide range of measures 
related to manufacturing and selling pharmaceuticals appropriately and safely in Japan, such as 
managing the issues of quality, effect and adverse effect of the pharmaceuticals concer ned. 
Therefore, such authorization holders are required to establish an office in Japan to  fulfil such 
responsibilities.  
Tobacco  
5.36.  With respect to the question regarding the prefer ential tax treatment for certain cigarettes, 
Japan has decided to phase out the preferential tax treatment for "former third class cigarettes " 
and has already submitt ed a relevant bill to the Diet.  
Business practices  
5.37.  Some Members expressed concerns about J apan's business practices that  may hinder a 
foreign company 's entry into the Japanese market. Other Members expressed difficulties in 
exporting certain products, like  maritime equipment, to Japan. We are not aware of any specific 
government measures that  hinder such exports to Japan. However, the Government is ready to 
consult with those Members individually to find problems , if any, and to seriou sly explore possible 
solutions.  
Visa 
5.38.  Regarding the request of easing visa requirements from some Members, Japan is now 
exerting all its efforts towards becoming a tourism -oriented nation with the ambitious goal of 
attracting 20 million foreign visitors in Japan. In this regard, we have implemented a strategy 
relaxing visa requirements for a number of Members mainly for foreign tourists that are expected 
to increase greatly in the future. We would like to explore further relaxation, giving due 
consideration to the status of measures already tak en. 
Energy  
5.39.  Many Members touched upon Japan 's energy policy.  
5.40.  Japan submitted  bills to the current Diet Session on elect ricity and gas system reforms. 
Through a bold and well -designed deregulation and unbundling, we will transform the conventional 
energy industry into a new, attractive one, which is open to all players. Again, this  is part of the 
third arrow of Abenomics.  WT/TPR/M/310 • Japan  
 
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  5.41.  Concerns were pointed out regarding foreign companies ' entry into the Japane se market of 
renewable energy. We believe that the Japanese market is already open. Statistics of Japan 
Photovoltaic Energ y Association (J PEA) shows that  solar panels that are supplied by foreign 
companies from April to December 20 14 account for approximately 30 % of its Japanese market 
share. Also, in the Japanese domestic market of wind power generators, the share of the products 
of foreign  companies amounts to around 70% at the end of FY 2013, according to the statistics of 
New Energy and Industrial Techn ology Development Organization (NEDO).  
Japan Post  
5.42.  Some Members touched upon Japan Post, referring to insurance, finance and postal 
services . 
5.43.  The bank and the life insurance company under the Japan Post are subject to the same laws 
and regulations as other banks and life in surance companies respectively.  In addition, in the 
course of privatization of Japan Post and its subsidiaries, the regula tions under the Postal Services 
Privatization Act apply to these two financial companies, as "add-on regulations " including 
measures such as approval requirement for starting new business.  
5.44.  With regard to EMS and express delivery services in Japan, respecti ve authorities on each 
service regulate suppliers based on  relevant laws and regulations.  
Government p rocurement  
5.45.  Some Members made comments on improving transparency and libera lization of Japan 's 
Government p rocurement.  
5.46.  With the entry into force of the "Protocol Amending the Agreement on Government 
Procurement " on 16 April 2014, Japan expanded its govern ment procurement market access.  For 
example, it lowered its thresholds for goods and services (excluding construction engineering 
services) from 130,000 SDR  to 100,000 SDR for central government ent ities. It expanded the 
scope where  the covered designated cities have increased from 12 to 19 cities, and an additional  
16 services are newly covered.  This is a result of the negotiations within the GPA Parties, ta king 
into account the ove rall balance of market access. With the 120 entities listed in Annex 3 of 
Japan 's schedule, Japan considers its market access level is fairly ambitious compared to other 
parties.  
5.47.  Moreover, as a part of Japan 's efforts to increase o pportunities for foreign suppliers, the 
Government has established, as a voluntary measure, non -discriminatory, fair, and transparent 
procedures that surpass those  stipulated in the revised GPA.  
Development  
GSP 
5.48.  There was a question on the application crite ria for GSP graduation.  
5.49.  Generally speaking, as regards the application criteria for GSP, it is essential to consider 
various factors, such as the level of economic development of beneficiar ies or the application 
criteria  of other GSP providers.  
5.50.  In addition , the Government of Japan applies objective criteria in its operation of the GSP 
scheme for the purpose of promoting economic growth in the developing world. Considering the 
situations on each domestic industry, Japan has not included certain products in J apan's GSP 
scheme.  
LDC-DFQF, Service Waiver  
5.51.  We appreciate positive comments on Japan 's efforts on providing duty-free, quota -free 
(DFQF) for LDCs. We will need careful examination on the possibility of further expanding the 
product coverage of DFQF.  WT/TPR/M/310 • Japa n 
 
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  5.52.  Regard ing the LDC Services Waiver as I mentioned on Monday, Japan will submit a 
notification to the Council of Trade i n Services as soon as possible.  
Conclusion  
5.53.  Due to the time limit a s well as the technical nature on some of the questions, there may be 
a few qu estions to which I did not respond in the meeting today. However, we are ready to discuss 
the remaining specific con cerns in a bilateral context. We also received a number of follow -up 
written questions from some Members. We will answer them in writing in due course.  
5.54.  As I mentioned on Monday, Japan will continue its efforts for the reform, including structural 
reform under the op en multilateral trading system.  We are looking forward to sharing our 
achievements in the next TPR.  
5.55.  I would like to conclude my re marks by thanking you Ambassador Mariam Salleh , as well as 
our discussant, Mr. Jean -Paul Thuillier , the Secretariat team and all the Members for their 
contributions to make this 12th review of Japan a productive one. I hope our humble efforts will 
contribu te to maintenance and strengthening of the multilateral trading system.  
DISCUSSANT  
5.56.  I would like to begin by thanking Mr Tomochika Uyama, head of delegation, and 
Ambassador Yoichi Otabe, Japan's Permanent Representative to the WTO, for the important work 
carried out on the occasion of the 12th Trade Policy Review of Japan. Japan's role in the global 
economy and world trade has been highlighted by the large number of statements (I have counted 
40, mainly by ambassadors from developing Members, LDCs, small and  vulnerable economies, 
recently acceded Members, large agricultural exporting countries and developed Members) and 
questions (almost 700) addressed to the Japanese delegation. The interest shown by Members in 
the trade policy directions relating to the gen eral economic framework of "Abenomics" was 
reflected by the supplementary statement made by Mr Uyama late in the afternoon of 9 March, 
which provided further details of the economic component of the third arrow of "Abenomics".  
5.57.  I have drawn tw o conclusions from this review:  
• The first, relating to the current trade policy framework, is a general assessment of Japan's 
commitment to the WTO and its prominent role in world trade. In this regard, I would say 
that the review held no surprises for Japan;  
• The second , concerning the way in which Japan plans to escape deflation and resume 
growth in the coming years, may give current policy directions the air of a transitional trade 
regime. In this respect, I am tempted to say that I very much look forward to 2017, the 
date of Japan's next TPR, when it will be possible to assess what has been achieved.  
5.58.  Regarding the existing framework, I have noted the importance that is given by all 
Members, without distinction, to Japan's role in world trade, and the concentration of q uestions on 
well-known aspects.  
5.59.  Japan is a leading partner in the multilateral trading system. Its commitment to moving the 
Doha Agenda forward in the multilateral negotiations and to engaging in plurilateral negotiations is 
commended by one and all. There  is no doubt as to Japan's respect for its commitments, and 
several Members have praised the country for not taking protectionist measures in the difficult 
years following the disasters of 2011. Its trade regime ensures stability and predictability.  
5.60.  Many M embers, both developing and developed, have also spoken of the importance of their 
bilateral relations, whether based on preferential regional agreements, bilateral cooperation 
agreements or technical assistance and financial support programmes, which show  the extent of 
Japan's foothold and influ ence in the world economy.  
5.61.  This commitment to forming part of a network of free trade agreements complements 
Japan's trade liberalization and increases transparency. The country's commitment to cooperation WT/TPR/M/310 • Japan  
 
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  agreement s illustrates, including in the Africa related initiatives welcomed by various Members 
from that continent, Japan's prominent role in the area of development assistance.  
5.62.  Regarding the Members' questions, and to complement the Secretariat's report, my overa ll 
conclusion is that border barriers are less problematic than behind the border barriers. This is 
consistent with the reforms that have been identified as necessary to change the economic model, 
although agriculture is perhaps the exception owing to the combin ation of both types of barrier.  
5.63.  Although I have not been able to analyse the frequency of the questions posed by Members, 
those relating to agriculture appear to have been by far the most common, whether from 
developing Members, developed Members, Me mbers enjoying preferential relations through 
regional agreements, Members without preferential relations, Members benefiting from Japan's 
generalized system of preferences or certain LDC Members benefiting from the DFQF regime, 
which asked that the regime  covering 98% of products be extended to cover all goods. Regarding 
agriculture, Members noted that tariff protection is combined with a level of support that several 
Members have described as distortive, as well as with a regime of sanitary and phytosanit ary 
standards that certain Members consider an additional restriction on market access. In particular, 
there have been calls for alignment with international standards and improved transparency as 
regards approval practices. Some Members have also mentione d the importance of fisheries 
subsidie s. 
5.64.  Turning to other issues, I noted that standards and conformity procedures were frequently 
presented as a barrier to the entry and establishment of FDI, an objective pursued by the 
Japanese government within the fram ework of the "third arrow". Opening up to further 
competition has also been mentioned, as has the importance of properly understanding the current 
reform of the competition framework and the opening up of certain services sectors (postal, 
professional and financial services, telecommunications, and maritime transport), as well as 
government procurement in respect of which certain Members have noted the importance of 
reforming current practices and the interest that greater  openness would have for Japan.  
5.65.  The number and importance of these comments do not of course overshadow the positive 
aspects, such as the announcement of the launch of a unanimously supported agricultural policy 
reform or the importance given to intellectual property and SMEs. However, ther e were no 
surprises whatsoever in any of the Members' questions, and I take this opportunity to thank the 
Japanese delegation for having started to reply to these questions, orally and in writing, and for 
having undertaken to continue the dialogue with the  Members concerned at a later stage.  
5.66.  My second conclusion relates to the Japanese government's projection in respect of the third 
arrow of "Abenomics", which paves the way for a transitional trade regime and prompts me to say 
how much I look forward to 201 7. 
5.67.  "Abenomics" goes beyond the trade policy framework that this Organization was mandated 
to examine. The link between the three "arrows" has nevertheless been emphasized by many 
Members which have referred to Japan's crucial role in the recovery of world growth and the fact 
that the escape from deflation or the recovery of productivity would undoubtedly have an impact 
on their trade. Several Members, while satisfied with the intensity of their bilateral relations, have 
noticed a reduction in bilateral trad e volumes in recent years and expressed t heir desire for 
revitalization.  
5.68.  The issue of sustainable reform implementation was also raised, given the obvious link 
between the announcement of certain reforms in the areas of competition, investment, services 
and sectors and Japan's trade regime, whether in relation to the objective of 70% trade coverage 
in FTAs, the link between internal reforms and trade liberalization, or the possible impact of 
regulatory reform on market access.  
5.69.  However, as I noted in my pres entation, the monetary easing policy seems to have been 
clearly understood by Members and in any case has not been questioned using a mercantilist 
approach. On the other hand, the time -lag between the three arrows has raised a number of 
questions and is li kely to reduce the medium term impact of the three "arrows" or to delay certain 
necessary adjustments.  WT/TPR/M/310 • Japa n 
 
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  5.70.  With general support from the Membership, Japan may rest assured that the Government's 
orientations are considered very positive. Nevertheless, the chall enges in shifting to a model of 
increased openness and domestic reform that is capable of revitalizing the economy in a global ized 
world remain considerable.  
5.71.  The Japanese authorities have nevertheless created considerable expectations among their 
partners,  and this is why the 2017 review will be just as exciting as that of 2 015, but even more 
crucial.  
5.72.  By 2017 we hope, for the sake of Japan and the rest of the Membership, that the Doha 
Agenda will have been – or be in the process of being concluded, that the  regional mega 
agreements (TPP, RCEP and EPA with the European Union) will be signed and under 
implementation, and that Japan's trade policy will be one of the driving forces for renewal.  
CHINA  
5.73.  Thank you for giving me the floor and thanks for our Discussan t's insightful conclusions , as 
well as the responses from Japan this morning.  
5.74.  Like other Members, China attaches great importance to this TPR and yesterday we 
submitted our follow -up questions. We expect the replies in due time.  
5.75.  Regarding Japan 's economi c trade and investment environment, I would like to take this 
opportunity to highlight some of our concerns. On foreign direct investment, we hope that Japan 
takes measures in a more constructive manner so as to meet its FDIs by 2020. With regard to 
techni cal regulations and SPS measures, Japan is expected to reduce some of them in order to 
further facilitate trade on a level playing field.  
5.76.  As its Government report states, the economic interdependence between Japan and China is 
going deeper. We believe that  a sustainable and robust trade relationship will contribute greatly to 
regional and global prosperity.  
5.77.  Last but not least, China is willing to work closely with Japan, as well as other Members to 
proceed with the post Bali work and achieve meaningful results at the MC 10, sharing these 
common objectives of strengthening the multilateral trading system.  
5.78.  To conclude, I would like to congratulate the Japanese delegation on the success of its TPR.  
KINGDOM  OF BAHRAIN  
5.79.  We just wish to congratulate Japan,  as one of  our major trading partner, for the conclusion 
of its successful Trade Policy Review. We are happy to see that despite the economic and national 
crisis, Japan has still been able to maintain a strong, open and transparent economy, and that the 
trade polici es have remained stable despite the challenges faced.  
5.80.  We would like to thank you, Mada m Chair, and the d iscussant, Mr  Thuillier, for conducting 
this active review, and the Secretariat for providing us an excellent report. We would like to wish 
Japan the be st and we look forward to a strong economic relationship.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
5.81.  I would like once again to welcome Mr. Uyama and his delegation to Geneva. I want to 
thank Japan, the Secretariat  and the d iscussan t for the constructive and efficient work for this 
review.  Chinese Taipei attaches great importance to this Trade Policy Review.  
5.82.  We very much appreciate Japan for the prompt reply on the issues of our concern raised on 
Monday, in particular regarding AFR issue. We will continue to work with Japan on the bilateral 
front to seek a mutual satisfactory solution.  WT/TPR/M/310 • Japan  
 
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  5.83.  We submitted several follow -up written questions to the Secretariat on the recent financial 
measures adopted by the Japanese Government and  very much  look forward to receiving the 
replies in writing from Japan.  
5.84.  Finally, I wish Mr  Uyama and his delegation  from Tokyo a nice journey back home.  
EUROPEAN  UNION  
5.85.  Let me first express our appreciation to the Japanese  delegation for the timely replies they 
have p rovided and for the extensive presentation given on Monday  as well as this morning . 
5.86.  The EU appreciates that Japan has  opted for the alternative time frame which gives more 
time to Members to study the replies in advance of the meeting.  
5.87.  The EU notes that thi s review of Japan 's economy and trade policy has been helpful for 
better understanding Japan 's reform agenda and expects that Japan will take into due account the 
concerns expressed by several Members, in particular with reference to the "behind the border s" 
barriers, services and government procurement.  
5.88.  While the EU has no follow -up questions to pose, we  will follow closely the on -going reforms 
and, in particular, the measures that Japan will implement to encourage FDIs.  
UNITED  STATES  
5.89.  I would also like to express thanks to the Japanese delegation on the replies they have 
provided. The United States had a few follow -up questions that we submitted to the Secretariat 
and to Japan. We appreciate the effort s that Japan has put in to advance in many trade initiat ives, 
bilaterally, plurilaterally and multilaterally, and we look forward to continue to work with Japan to 
deepen its efforts.  
JAPAN  
5.90.  We would like to thank all the Members and also those who put forward their follow -up 
questions. We will respond to them i n due course.  WT/TPR/M/310 • Japa n 
 
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  6  CONCLUDING REMARKS BY THE CHA IRPERSON  
6.1.  The twelfth Trade Policy Review of Japan has given us a good opportunity to examine the 
trade, economic, and investment policies of Japan and how they have developed since the last 
Review in March 2013. The large number of questions submitted before the meeting and the 
number of delegations that posed those questions and intervened during our two days of 
discussions highlight the importance attached to Japan 's trade and investment policy and its role 
as one of the biggest economies and trading nations in the world. Our discussion was greatly 
helped by the statement from the head of the delegation of Japan, Mr Tomo Uyama, the Deputy 
Director -General in the Economic Affairs Bureau in the Ministry of F oreign Affairs, and by the 
well-researched and comprehensive comments  and insights  from the Discussant, the Permanent 
Representative of France to the WTO, Mr Jean -Paul Thuillier.  
6.2.  Members welcomed Japan 's efforts to overcome protracted deflation, revitalize the ec onomy, 
and continue reconstruction following the Great East Japan Earthquake of 2011 through the "three 
arrows " of monetary measures, fiscal fle xibility, and structural reform known as "Abenomics ". At 
the time of the last Review, implementation of th e firs t two arrows had started.  Since then, the 
structural reform arrow was launch ed under the Japan Revitaliz ation Strategy of 2013, which was 
revised in 2014.   
6.3.  The first two arrows are focused primarily on increasing domestic demand, although they 
have had si gnificant trade -related implications through their effects on interest rates and the 
exchange rate. However, the third arrow of structural reform was recognized as probably being of 
most direct interest to the Trade Policy Review Body because it includes p lans and programmes to 
increase investment, improve productivity, and thus enhance trade. Members urged Japan to 
pursue these structural reforms without delay, including trade and investment liberalization 
measures, to achieve strong economic growth, encou rage private investment, increase 
productivity, and enhance competitiveness. This would also help Japan address its long -standing 
structural problems including an ageing population, labour shortages, and relatively low FDI 
inflows.  Furthermore, as several delegations and the discussant noted,  the first two arrows are 
short-term stimuli, but it is the third arrow which will provide the basis for long -term sustainable 
growth.   
6.4.  Members appreciated Japan 's active role in the WTO and its constructive participat ion in the 
negotiations leading to the Trade Facilitation Agreement, as well as negotiations on services, 
environmental goods, and expanding the scope of the Information Technology Agreement. They 
also noted Japan has made relatively little use of continge ncy trade remedies. Several delegations 
commended the support provided by Japan for technical cooperation which ranged from assistance 
to improving customs procedures, to education and training, to aid for agricultural improvements, 
to support for aid for trade.  
6.5.  Members remarked that Japan has a network of 14 RTAs in force, one more than in 2013 
because of a new bilateral agreement with Australia, and has recently signed an agreement with 
Mongolia. Furthermore, they noted that Japan is currently negotiatin g several trade agreements, 
including mega preferential agreements, notably the Trans Pacific Partnership and the Regional 
Comprehensive Economic Partnership Agreement  or RCEP . Through these negotiations and its 
domestic reforms, Japan aims to increase the  proportion of trade under regional trade agreements 
from 19% to 70% by 2018 and double FDI by 2020.  
6.6.  Several of the points raised during the meeting have been raised in previous Reviews of 
Japan while the new issues raised are related mostly to the reform  process which is under  way 
through the Japan Revitaliz ation Strategy. Areas for attention brought up by Members during the 
Review, either through the question and answer process or through their statements, include the 
following:  
• Customs procedures:  The i mprovements to the Authorized Economic Operator (AEO) 
programme and its impact on the release time for imports were noted but concerns 
remained about customs procedures, particularly for some agricultural products;  
• Technical barriers to trade and sanitary and phytosanitary measures:  Several 
delegations noted that a significant proportion of Japan 's TBT and SPS measures do not WT/TPR/M/310 • Japan  
 
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  correspond to international norms and the requirements to show compliance with Japanese 
requirements are often complex and costly;  
• Government procurement:  Although Japan is a party to the  revised Government 
Procurement  Agreement, some delegations stated that access to public tenders was more 
complicated for foreign enterprises than for those present in Japan;  
• Competition policy:  The re form of the Anti Monopoly Act in 2013 was noted but concerns 
remained about the number of exemptions to the Act and to its implementation;  
• Business environment:  Concerns were raised about visa requirements for various 
categories, including business travel lers, IT professionals, trainees, and health care workers;  
• Agriculture:  Support and protection for agriculture remains high relative to other OECD 
countries. Although there have been several policy developments and the Government 
intends to increase produ ctivity and competitiveness, the sector is still protected by high 
tariffs and supported by policies linked to price s or to production or to both. Furthermore, at 
the moment, Japan 's regional trade agreements and its generalised system of preferences 
schem e provide only limited coverage to agricultural, as well as textile, footwear and 
clothing products;  
• Fisheries:  Several delegations posed questions about different programmes and subsidy 
levels for fisheries in Japan and noted that Japan has several unboun d tariffs on fisheries 
products; and  
• Services:  Opening of some services sectors, such as electricity, telecommunications, 
maritime, and courier services, to greater competition would benefit investment and could 
reduce business costs. In addition, question s were raised about Japan Post, its privatization, 
and the need for a level playing field in insurance.  
6.7.  Japan 's wealth is based on trade and as a global economic power it has an important role to 
play in maintaining a rules -based trading system which is v ital to the current and future prosperity 
of trading nations. Japan remains very competitive in several sectors and, in general, it is open to 
trade with transparent laws, regulations, and trading practices. However, Japan faces key 
challenges and Members have raised concerns about some sectors and issues which are important 
to them. Therefore, I would encourage Japan to continue its efforts to further liberaliz e trade and 
investment for its own benefit and that of its trading partners.  
6.8.  In closing, I would like to thank Deputy Director -General Uyama and the rest of the Japanese 
delegation, all the other delegations, the Discussant , Mr Thuillier,  and the Secretariat for this very 
successful twelfth review of the trade policies of Japan.  WT/TPR/M/310 • Japa n 
 
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  7  ELECTION OF A NEW CHAIRPERSON  FOR THE TPRB  
7.1.  As indicated in the order of the first day of this meeting, we now move to the election of the 
Chairperson for the TPRB for 2015. At its meeting on 20 February 2015, the General Council noted 
the consensus on the slate of names of Cha irpersons for WTO bodies, including Ambassador 
Atanas Atanassov Paparizov as the Chairperson of the Trade Policy Review Body.  
7.2.  Under its rules of procedure, the Trade Policy Review Body is now invited to elect 
Ambassador Paparizov as the Chairperson for 201 5. I would like to suggest that Members of the 
TPRB confirm their support for his election with a round of applause.  
7.3.  On a personal note, i t has been my pleasure and duty  to have chaired the r eviews of 
20 Members through 14  meetings of the TPRB as well as o ur me etings to consider the 
Director -General 's reports on trade policy developments, including the annual overview of 
developments in the inte rnational trading environment.  
7.4.  This past one year has been a valuable experience and certainly educative  for me , with the 
opportunity to gain detailed information and analysis of Members ' trade policy measures provided 
by the reports and from your comments in this peer review process.  
7.5.  The process provides a deep insight of the concerted efforts made by all Members und er 
review to improve their trade and investment regimes  and to pursue continued economic growth, 
amidst the varied challenges faced. Besides national priorities, Members under review , in my view, 
do take into consideration your constructive comments in imp roving policy measures so as to be in 
compliance  to WTO rules.  
7.6.  You the Members of this body have therefore played an important role  in ensuring this 
process of Members ' review is successful and has the expected impact  or intended impact . 
7.7.  My one wish is to see many more Members participate in this TPR of Members big and small, 
or at least by represen tatives of regional groupings  given the limited resources of smaller 
Members.  
7.8.  I would like to sincerely thank everyone, the delegates, both those based in Geneva  and 
those that came from capitals, for the constructive collaboration at all these meetings. I thank the 
Secretariat for all their hard work in producing the excellent analytical reports, right on schedule 
and going out of their way to support me as the C hairperson this past year. I would also like to 
thank my colleagues, fellow ambassadors who readily came forward to be discussants, taking time 
from their busy schedule to give their personal insights on the policy measures of the respective 
Member under r eview. And last but not least, the interpreters for offering to stay on every time we 
ran out of schedule.  
7.9.  I wish Ambassador Paparizov every success in the year ahead as the new Chairperson of the 
Trade Policy Review Body .  
7.10.  I now hand over to Ambassador Pa parizov.  
AMBASSADOR  PAPARIZOV  
7.11.  Thank you Ambassador Mariam Salleh. It has been really an honour for me, distinguished 
delegates, to be elected to this important Chairmanship in the WTO. I think that all the efforts 
exercised by Mariam and my other predecess ors at this Body over the years  had established itself 
as a very important place for the exchange of view s of policies, and of the need to develop 
macroeconomic and trade policies. This has been a very good basis for countries to enrich their 
visions about  solving  problems.  
7.12.  I was very much impressed by the Trade Policy Review of Japan, by the discussions, by the 
number of delegations and by the number of issues that have been raised. The role of the 
discussant has been very important and I hope that the qu ality of the discussants will continue all 
over the process under my Chairmanship.  WT/TPR/M/310 • Japan  
 
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  7.13.  I thank you once again and assure you that I will try to leave up to the responsibility that 
you have given to me and try to organize , together with the Secretariat , the wor k of this Body at 
the level that has been typical for this Institution.  
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