. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/JPN/47 
29 March 2010 
 (10-1696) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by the EUROPEAN UNION1 
Regarding the New and Full Notification of JAPAN2 
 
  The following communication, dated 25 March 2010, is being circulated at the request of the Delegation of Japan.    
_______________ 
 
 
I. Industry 
 
5. Subsidy for Supporting the Manufacture of Traditional Craft Products 
 
 According to the notification the objective of this subsidy progr amme is to promote 
Japanese traditional craft products.   
 
 Could Japan please set out the eligibility criteria for receiving subsidies under this 
programme?    
Reply
 
  This subsidy is provided to manufacturing co-operatives and their members that produce 
traditional Japanese crafts, and to enterprises, groups , individuals, etc. that are engaged in the 
promotion of the traditional Japanese craft industry.    6. Subsidy for Promoting the Manufacture of Traditional Craft Products 
 
 Under this programme the objective of this  subsidy is to promote Japanese traditional 
craft products which is identical to the subsidy programme number I. 5. above.   
 
 Could Japan explain the exact difference between these two subsidy programmes?  
Please also outline the eligibility criteria for receiving subsidies under this programme?  Are 
beneficiaries eligible for receiving benefits from both programmes at the same time?   
                                                     
 
1 G/SCM/Q2/JPN/46.   
2 G/SCM/N/186/JPN. G/SCM/Q2/JPN/47 
Page 2  
 
  Reply
 
 (1) This subsidy is provided to the Association for the Promotion of Traditional Craft Industries, 
which is engaged in the promotion of traditional Japanese craft industries.  This association is a 
private and incorporated non-profit organiza tion, and is provided for in the law.   
 (2) The recipients are different between programmes I.5. and I.6, as explained above.  Therefore, 
it is impossible to receive benefits from both programmes at the same time.   
 
28. Subsidy for promoting bio fuel 
 
 The policy objective of this programme is to promote instructions of bio-ETBE through 
appropriate use by verifying the leakage me asures of the ETBE mixed gasoline in the gas 
station.  The policy objective is not fully clear.     Could Japan therefore explain the objective of this programme in more detail and the 
eligibility criteria?  Are foreign companies e ligible for receiving subsidies under this 
programme?   
 
Reply
 
 (1) According to the Kyoto Protocol, biofuel is treated as carbon neutral. The introduction of 
biofuel is one of the effective ways to comb at global warming and reduce oil dependency in 
transportation.   
 
 The purpose of this programme is to promot e the introduction of 500,000KL (crude oil 
equivalent) of biofuel (e.g. bioe thanol) by 2012 to achieve the goal under Kyoto Protocol Target 
Achievement Plan, by distributing g asoline combined with ETBE, a kind of biofuel, to petrol stations 
and by inspecting measures to prevent leakage from the stations and to improve the efficiency of 
24 hour security system. 
 
(2) Entities which are capable of carrying out pr ojects in accordance with  the purpose of this 
programme and meeting the following requireme nts are eligible for this programme.   
 
(i) High technical ability to perform the project appropriately (ii) Sufficient accurate accounting and office ma nagement systems to handle the project under the 
programme 
(iii)Ability to conduct promotional activities and evaluation analysis regarding the project 
 
(3) Foreign companies are also eligible for subsidies under this programme. 
   
__________