WT/TPR/M/397/Add.1  
7 October 2020  
(20-6882) Page: 1/286 
Trade Policy Review Body  
6 and 8 July 2020  Original: English/anglais/ inglés  
Spanish/espagnol/español  
 
 
  
TRADE POLICY REVIEW  
JAPAN 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Harald Aspelund (Iceland)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Japan .1 
 
Organe d'examen des politiques commerciales  
6 et 8 juillet 2020  
EXAMEN DES POLITIQUES COMMERCIALES  
JAPON 
COMPTE RENDU DE LA RÉUNION  
Addendum  
Président : S.E.  M. Harald Aspelund (Islande)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  le Japon .1 
 
Órgano de Examen de las Políticas Comerciales  
6 y 8 de julio de 2020  
EXAMEN DE LAS POLÍTICAS COMERCIALES  
JAPÓN 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Harald Aspelund (Islandia)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  el 
Japón .1 
 
 
 
 
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/397/Add.1  
 
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Contents  
COSTA RICA  ................................ ................................ ................................ .....................  4 
ISRAEL  ................................ ................................ ................................ .............................  8 
HONG KONG, CHINA  ................................ ................................ ................................ ....... 10 
INDIA  ................................ ................................ ................................ ............................  12 
CHILE  ................................ ................................ ................................ .............................  41 
UNITED STATES  ................................ ................................ ................................ .............  50 
BRAZIL  ................................ ................................ ................................ ...........................  69 
EUROPEAN U NION  ................................ ................................ ................................ .........  83 
CHINA  ................................ ................................ ................................ ............................  98 
ARGENTINA  ................................ ................................ ................................ ..................  118  
NORWAY  ................................ ................................ ................................ ......................  119  
INDONESIA  ................................ ................................ ................................ ..................  120  
MEXICO  ................................ ................................ ................................ ........................  123  
UNITED KINGDOM  ................................ ................................ ................................ ........  131  
UKRAINE  ................................ ................................ ................................ ......................  136  
COLOMBIA  ................................ ................................ ................................ ...................  142  
PHILIPPINES  ................................ ................................ ................................ ...............  153  
CHINESE TAIPEI  ................................ ................................ ................................ ..........  165  
SWITZERLAND  ................................ ................................ ................................ .............  176  
REPUBLIC OF KOREA  ................................ ................................ ................................ .... 180  
CANADA  ................................ ................................ ................................ .......................  187  
RUSSIAN FEDERATION  ................................ ................................ ................................ . 204  
DOMINICAN REPUBLIC  ................................ ................................ ................................  210  
MALAYSIA  ................................ ................................ ................................ ....................  211  
THAILAND  ................................ ................................ ................................ ....................  218  
NEW ZEALAND  ................................ ................................ ................................ .............  223  
AUSTRALIA  ................................ ................................ ................................ ..................  229  
PERU  ................................ ................................ ................................ ............................  234  
DOMINICAN REPUBLIC  ................................ ................................ ................................  235  
PHILIPPINES  ................................ ................................ ................................ ...............  236  
GUATEMALA  ................................ ................................ ................................ .................  239  
ICELAND  ................................ ................................ ................................ ......................  241  
RUSSIAN FEDERATION  ................................ ................................ ................................ . 242  
TURKEY  ................................ ................................ ................................ ........................  243  
UNITED KINGDOM  ................................ ................................ ................................ ........  256  
MEXICO  ................................ ................................ ................................ ........................  258  
EU FOLLOW -UP QUESTIONS  ................................ ................................ .........................  262  
CHINA FOLLOW -UP QUESTIONS  ................................ ................................ ...................  266  
CANADA FOLLOW -UP QUESTIONS  ................................ ................................ ................  276  WT/TPR/M/397/Add.1  
 
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UNITED STATES FOLLOW -UP QUESTIONS  ................................ ................................ .... 277  
 
 
 
  WT/TPR/M/397/Add.1  
 
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COSTA RICA  
A. Informe de la Secretaría  
 
Página 47, párrafo 2.37  
 
2.37. Under the 2012 Act for the Promotion of Japan as an Asian Business Centre, incentives are 
provided to encourage investment in establishing R&D and regional headquarters. Personal income 
tax benefits are provided under the Act on Special Measures Concerning Taxation. Other investment 
incentives are: assistance for fund raising by the Small and Medium Business Investment and 
Consultation Co. Ltd., applicable to  SMEs (this also covers small and medium -sized stock companies 
with capital not less than JPY 300 million); acceleration of patent examinations; shortened 
investment procedures; and acceleration of the status of residency examinations. As indicated by 
the authorities, an evaluation has not been undertaken on the effectiveness of these incentive 
schemes.  
 
(1) Pregunta  
• Según lo indicado, no se ha llevado a cabo una evaluación para saber la efectividad de los 
incentivos, ¿planean realizar una evaluación pront o? ¿Cómo determinan que dichos 
incentivos sí están funcionando?  
 
RESPONSE  
There are no plans to conduct an evaluation immediately. A commissioned survey was conducted in 
FY2018 and evaluated in the report . 
(Japanese: https://www.meti.go.jp/meti_lib/report/H30FY/000193.pdf ). 
The evaluation of the incentive system will be considered in the future.  
 
Página 54, párrafo 3.11  
 
3.11. As mentioned in the pre vious Review, advance rulings may be requested by importers or other 
interested parties on: tariff classification, customs valuation, the origin of goods, and duty 
relief/exemption for goods due for import. In principle, advance rulings are issued within 9 0 days of 
request for customs valuation, and within 30 days for other requests. Advance rulings are binding 
on Customs.  
 
(2) Preguntas  
• ¿Se puede solicitar una resolución anticipada en el marco del SGP de Japón?   
• ¿La solicitud de una resolución anticipada se puede realizar en línea? En caso afirmativo, 
agradecemos nos faciliten el enlace para realizar esta gestión.   
 
RESPONSE  
(1) Advance Ruling provides tariff classification, customs tariff rates (including GSP rates) and origin 
of goods.  
(2) Adv ance rulings can be requested and issued manually in principle. Electronic procedures are 
also available through the network system called NACCS.  
 
Página 114, párrafo 3.210  
 
3.210. Accelerated and super -accelerated examination programmes reduced average FA pendency 
to 2.3 months and 0.7 months, respectively, for qualifying applications in 2018. Accelerated 
examination is available upon request for applications made by SMEs, ap plications that have been 
filed in more than one country, and applications for inventions that have already been put into 
practice. Accelerated examination for inventions involving environment -related technologies is under 
trial. A pilot super -accelerated examination may be requested for "highly important" applications, 
including inventions already put into practice by either a start -up or an applicant who has filed for 
patent protection abroad. The JPO outsources prior art searches, plans to employ AI tech nology to 
improve speed and quality, and has introduced design -driven management principles to improve the 
quality of its services to users.   
 WT/TPR/M/397/Add.1  
 
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(3) Preguntas  
• Costa Rica reconoce los esfuerzos de Japón para agilizar los trámites relacionados con 
patentes. ¿Podría Japón ampliar sobre la prueba que están realizando para invenciones 
relacionadas con tecnologías ambientales?  
• ¿Cuáles criterios se tomarán en consideración para definir si se continuará aplicando el 
procedimiento expedito a este tipo de s olicitudes?  
• ¿Cuál es el promedio anual de solicitudes recibidas para invenciones relacionadas con 
tecnologías ambientales?   
 
RESPONSE  
The revision of the condition for accelerated examination on environment -related technologies is not 
planned at this time.  The number of requests for acceleration could be one of the possible reasons 
for a future revision.  
Since patent applications are not categorized according to involving environment -related 
technologies, the number of such applications has not been counted . When applicants request the 
accelerated examination, they explain that the application involves environment -related 
technologies in the request form and examiners determine whether the request meets the condition.  
 
Página 121, párrafos 3.244 y 3.245  
 
3.244. Counterfeiting and piracy continue to cause meaningful losses to the Japanese economy. A 
2018 fiscal year report commissioned by the JPO estimates JPY 111 billion as the total profit lost by 
all industrial property right holders, based upon survey data . The METI reports recent signs of 
improvement. During the review period, the JPO continued to conduct annual surveys on losses 
suffered by Japanese enterprises caused by counterfeiting and piracy. 24.1% of respondents 
reported losses in the 2018 report, a n increase of 1.7% over the prior year. Online piracy, in 
particular, has been referred to as a "rampant problem" that could significantly impair the rights of 
copyright holders.328 The Content Overseas Distribution Association estimates that piracy costs 
Japanese publishers JPY 400 billion per year.   
 
(4) Preguntas  
• Costa Rica reconoce la labor de Japón en materia de observancia, particularmente en 
relación con la falsificación y pir atería. ¿Además de los datos existentes sobre el monto 
estimado de pérdidas económicas para los titulares de la industria, existen datos sobre las 
pérdidas en términos fiscales para el Estado?  
 
RESPONSE  
Counterfeiting and piracy continue to cause meaningfu l losses to the Japanese economy. A fiscal 
year 2018 report[1] commissioned by the JPO, estimates JPY111,044 million as the total profit loss 
amount (not circulating amount) of all industrial property right holders to the JPO based upon the 
questionnaire s urvey data.  
But none of the authorities surveyed the impact for national financial income, so there are no such 
data. 
[1] The report is a questionnaire survey sent to a random sample of 4,663 Japanese companies out 
of 165,627 companies that registered as industrial property right holders with the JPO in fiscal year 
2017. And 2,370 companies out of 4,663 companies responded. The report estimates its total profit 
loss based on the profit loss of the 37 Japanese companies who answered their profit loss in its  
survey.  
 
3.245. Japan Customs is responsible for enforcing IPRs  at the border, and seizes infringing goods. 
The majority of suspension cases are brought by right holders, although Japan Customs is 
empowered to act ex officio when it suspects infringing goods. There were no changes to the 
Customs Law during the review period that materially impact the process, availability, or protections 
associated with IPR enforcement at the border.  
 
(5) Preguntas  
• Costa Rica reconoce el trabajo de Japón para contrarrestar los efectos de la falsificación y 
piratería de bienes, en part icular el rol de las aduanas. ¿Podría Japón indicar la cantidad de 
casos de suspensión que corresponden a actuaciones de oficio en el 2019?  
• ¿Para qué tipo de bienes se actúa en mayor medida de oficio?  
• ¿Existe algún convenio o espacio de cooperación o coor dinación entre las aduanas y los 
titulares de la industria para facilitar la identificación de mercancía falsificada?  WT/TPR/M/397/Add.1  
 
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• ¿Qué tan activa es la participación de la industria en los procesos relacionados con la 
violación a normas de propiedad intelectual?   
 
RESPONSE  
(1) We have no statistics only about ex -officio cases.  
(2) We have no statistics only about ex -officio cases.  
(3) Customs cooperates with right holders to verify the products, for example:  
・information to Customs through application for suspension;  
・trainings for Customs officers; and  
・claims and evidence from right holders which support Customs decision making procedure 
(verification procedure).  
(4) The main procedures in which right holders can be involved are the following:  
・filing an application f or suspension;  
・submission of claims and evidence in verification procedure; and  
・sample inspection.  
 
Página 179, párrafo 4.236  
 
4.236. The commitments for aircraft repair and maintenance under the GATS and under the 
positively listed FTAs of Japan reflect the applied regime, i.e. the existence of an economic needs 
test. That situation is echoed in all of Japan's negatively listed FTAs.   
 
(6) Pregunta  
• ¿Podría Japón brindar más información sobre la prueba de necesidades económicas que 
aplica a los servicios de reparación y mantenimiento de aeronaves, y aclarar si esta se 
extiende para los proveedores que brindan el servicio en el extranjero (modo 2)?  
 
RESPONSE  
Relating to ENT, one of the requirements that is imposed on an MRO (Maintenance, Repair an d 
Overhaul) which intends to operate in Japan is that "the capability of manufacturing or repairing 
aircraft or specific equipment shall not become notably excessive based on given permission" 
(provisional translation), according to Article 2 -5 of the Airc raft Manufacturing Industry Act. Such 
requirements are imposed equally both on domestic and foreign MROs. Therefore, the requirements 
are imposed on foreign MRO suppliers which intend to operate in Japan as well (Mode 3).  
Regarding Mode 2, the Aircraft Ma nufacturing Industry Act is not applied.  
 
Página 182, Sección 4.4.5 - Servicios Medioambientales   
 
[La pregunta se refiere a toda la sección]  
 
(7) Pregunta  
• Costa Rica ha leído con gran interés esta sección y reconoce el amplio desarrollo normativo 
de Japón en la materia, así como sus compromisos en el Modo 3. ¿Podría Japón referirse 
brevemente al régimen aplicable a la prestación de servicios mediante otros modos de 
suministro como el 1 y el 4; específicamente en cuanto a consultorías en servicios 
medioambientales?  
 
RESPONSE  
There is no specific regime applicable.  
 
Página 188, párrafo 4.275  
 
4.275. Similarly, there are no GATS -type restrictions on e -commerce. There is no specific general 
regulatory framework for e -commerce. The main relevant laws deal with consumer protection and 
e-payments. The most significant among them is the Act on Special Provisions to the Civil Code on 
Electronic Consumer Contracts and Electronic Acceptance Notice (Act No. 95 of 29 June 2001). This 
Act provides special provi sions to the Civil Code (Act No. 89 of 1896) in cases where there are certain 
mistakes in the elements comprising an electronic consumer contract, or where an electronic 
acceptance notice is dispatched by a consumer under a contract made at a distance.109 The 
Consumer Contracts Act (Act No. 61 of 12 May 2000) permits a consumer to rescind his/her intention 
to offer or accept a contract when s/he has misunderstood, or was distressed by, certain acts of the WT/TPR/M/397/Add.1  
 
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business operator. It also nullifies any clauses (in  whole or in part) that exempt business operators 
from liability for damages, or that otherwise unfairly harm the interests of consumers.  
 
(8) Pregunta  
• Costa Rica ha leído con mucho interés sobre la forma en que se regula el comercio electrónico 
en Japón.  ¿Podría Japón proporcionar más información sobre las razones que han llevado al 
país a optar por no tener un marco regulatorio específico para el comercio electrónico?  
 
RESPONSE  
Although Japan has no specific regulatory frameworks for electronic commerce, since 2002, the 
relevant ministries, academic experts and the business community have evaluated and clarified how 
the Civil Code and other relevant laws are applied to various legal issues related to electronic 
commerce. The outcomes of the evalu ation are revised and released annually in "Interpretative 
Guidelines on Electronic Commerce and Information Property Trading." The guideline is expected to 
enhance predictability for concerned parties and contributing to the facilitation of business activ ities. 
 
Página 190, párrafo 4.284  
 
4.284. Based on the Act on Special Measures concerning the Handling of Legal Services by Foreign 
Lawyers (Law No.66 of 1986), foreign lawyers may engage in legal services in relation to home -
country law and international law, if they register with the Japan Federation of Bars Association. 
They can do so if they meet the following requirements: be qualified as a lawyer in their home 
country, and have practiced three years in their home country or abroad (this delay is reduc ed to 
two years for pure advice activities). In addition, Registered Foreign Lawyers may establish a 
Registered Foreign Lawyer Corporation.   
 
(9) Pregunta  
• ¿Podría Japón aclarar si existe un requisito de presencia local para que los abogados 
extranjeros presten servicios relacionados con legislación de su país o derecho internacional 
a consumidores japoneses?  
 
RESPONSE  
A foreign lawyer must be recognized as "Gaikoku -Ho-Jimu-Bengoshi (Registered Foreign Lawyers)" 
by the Minister of Justice and register with the Japan Federation of Bar Associations. Commercial 
presence is required.  
 
B. Informe de Gobierno  
 
Página 6, párrafo 2.13  
 
2.13. Maintaining and strengthening the multilateral trading system under the WTO has been a main 
pillar of Japan's external economic policy. At the same time, Japan has also promoted its regional 
and bilateral trade policies as a means of complementing th e multilateral trading system, particularly 
through Economic Partnership Agreements that include elements of Free Trade Agreements and 
institution -building.  
 
(10) Pregunta  
• ¿Podría Japón aclarar o brindar algunos ejemplos sobre lo que denomina instituciona lidad 
("institution -building ")? 
 
RESPONSE  
EPAs cover not only trade in goods and services but also rules in various economic areas such as 
investment, movement of natural persons and protection of intellectual property.  
  WT/TPR/M/397/Add.1  
 
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ISRAEL  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and preferential agreements  
2.3.2.1 Regional trade agreements (RTAs)  
2.16 
 
Paragraph 2.16 of the Secretariat Report notes:  
"In September 2019, Japan signed the Japan -United States Trade Agreement to eliminate or 
reduce tariffs on certain agricultural and industrial products, and the Japan -United States Digital 
Trade Agreement, which is intended to establish high standard rules in this area"  
 
Question 1  
Israel would like t o understand if Japan considers the Japan -United States Trade Agreement as an 
FTA? If yes, could Japan explain how does it conform with Article 24 of GATT?  
If not, will the concessions included in the Agreement be given on an MFN basis?  
 
RESPONSE  
Paragraph  1 of Article 5 of the Japan -US Trade Agreement provides: "Further to the existing 
commitments by each Party under the WTO Agreement, unless otherwise provided for in this 
Agreement, each Party shall improve market access in accordance with Annex I or Anne x II." By the 
implementation of this provision, the tariff elimination covering substantially all the trade between 
the two countries will be achieved. On that basis, Japan is of the view that the Japan -US Trade 
Agreement is consistent with Article XXIV of  GATT.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Directly Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
3.99 
 
Paragraph 3.99 of the Secretariat Report notes:  
"Japan has MRAs  concerning standards, technical regulations and conformity assessment 
procedures in force with the European Communities, Singapore, the Philippines, Thailand, the 
United States, and Chinese Taipei."  
 
Question 2  
Israel would appreciate if Japan could elabo rate on its decision -making process for signing MRAs: 
What are the criteria? What is the internal process in Japan? How are the sectors and partners for 
MRAs are prioritized?  
 
RESPONSE  
Mutual recognition agreements (MRAs) stipulate that a partner country s hould accept the results of 
conformity assessment (certification, testing, etc.) for particular products conducted by conformity 
assessment bodies (CABs) of other partner countries.  
Regarding to decision making process for signing MRAs, countries generally  take into account the 
trade volume of the product, equivalence of regulatory system and the needs from national 
industries to reduce administrative and economic burden with a view to promoting bilateral trade in 
the product fields. After considering these  factors in a comprehensive manner, Parties would go 
through informal discussions  between regulatory authorities and formal negotiations between 
Governments of the Parties to conclude MRAs.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Directly  Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.1 Legal and institutional framework  
 
Question 3  
Please explain which standards are mandatory in Japan and which are voluntary, if any. Does 
Japan adopt ISO or other inte rnational standards?  
 WT/TPR/M/397/Add.1  
 
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RESPONSE  
The main laws on standards and technical regulations are listed in Table 3.14 of the Secretariat 
report.  
(1) All the Japanese Industrial Standards (JIS ) are voluntary standards, while some acts refer to JIS 
in their technical regulations. 97 % of all the JIS that have corresponding international standards 
are harmonized with the international standards.  
(2) All the Japanese Agricultural Standards (JAS) are voluntary standards except for the JAS for 
Organic Plants and the JAS for Organic processed food of organic plants. Some acts refer to JAS in 
their technical regulations. 78% of all the JAS that have corresponding international standard s are 
harmonized with the international standards.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Directly Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.4 Conformity assessment and inspection  
3.115  
 
Paragra ph 3.115 of the Secretariat Report notes:  
"The METI has designated 24 inspection bodies, of which 7 are foreign. They include: 7 bodies 
under the Consumer Product Safety Act, 14 under the Electrical Appliances and Materials Safety 
Act, 2 under the Act on t he Securing of Safety and the Optimization of Transaction of Liquefied 
Petroleum Gas, and 1 under the Gas Business Act."  
 
Question 4  
Israel would appreciate if Japan could provide additional information on its process of designating 
foreign inspection bodi es. 
 
RESPONSE  
Based on the application from the laboratories which are hopeful of becoming conformity 
assessment bodies, Japan confirms the capability and then designates after having the 
investigation conducted by the National Institute of Technology and Evaluation as necessary.  
  WT/TPR/M/397/Add.1  
 
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HONG KONG, CHINA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
Trade Policies by Sector  
 
Financial services  
(WT/TPR/S/397, Pages 166 -167, paras  4.156 -4.157)  
 
The Financial Services Agency (FSA), the supervisory body of all financial services in Japan, revised 
its 2014 Stewardship Code for Institutional Investors which aimed at enhancing corporate 
governance and improving investment returns. By subscribing to this voluntary Code, investors 
commit to disclosing how they ex ercise their stewardship activities. By August 2019, 256 investors 
had adopted the Code.  
 
Question  
1. What is the rate of adoption of this voluntary Code? Are there any incentive measures  to 
promote a higher adoption rate?  
 
RESPONSE  
As of 14 February 2020, 27 7 institutions, including both domestic and foreign institutions, have 
accepted Japan's Stewardship Code. However, since it is difficult to identify the total number of 
institutional investors, the adoption rate is currently not calculated. The Japan FSA i ncentivizes the 
institutional investors by updating and publishing the list of institutional investors when it receives 
the notification of acceptance of the Code from them.  
 
(WT/TPR/S/397, Page 167,  para 4.161)  
 
The privatization process of Japan Post Bank (JPB) is dependent on that of the mother company, 
Japan Port Holdings (JPH). The Japanese Government must own at any time one third of JPH shares 
by law. The Government had sold 19.5% and 23.6% share of JPH in 2015 and 2017 respectively. A 
third sale (which would cover at most 23.5% of the shares) has not been decided yet.   
 
Question  
2. What are the timelines for the selling of the shares of JPH and the privatisation of JPB?  
 
RESPONSE  
(1) As for the timelines for the selling of the shares of Japan Post Ho ldings (JPH), please refer to 
Para 4.161 in the Trade Policy Review Report by the Secretariat.  
 
(2) The timing of the selling of the shares of Japan Post Bank (JPB) held by JPH will be decided by 
JPH. The shares, however, are scheduled to be sold as early as possible with an aim to sell all the 
shares while considering the business conditions of JPB, the impact on the fulfillment of universal 
service obligations, etc.  
 
Banking services  
(WT/TPR/S/397,  Page 168, para 4.169 ) 
 
To support innovative projects improving user convenience and/or productivity of companies, the 
FSA established the FinTech Proof of Concept (PoC) Hub. A special working team in cooperation with 
relevant authorities and/or industry associations will be set up as necessary for each selected PoC 
project, to give advice on issues related to compliance and supervision, etc.  
 
Question  
3. Are foreign companies eligible to join this programme? What are the selection criteria and 
whether foreign companies are subject to the same criteria as local companies?  
 
RESPONSE  
Foreign companies can also apply for FinTech PoC Hub.  
The FSA determines whethe r the PoC project is suitable for the Hub based on the following criteria:  
1. Clarity: Details of the PoC project and the legal issues and/or concern regarding the laws and 
regulations of the PoC project must be clear.  WT/TPR/M/397/Add.1  
 
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2. Social significance: If the service is p ut to practical use, the improvement of user convenience 
and/or corporate productivity in Japan must be expected.  
3. Innovativeness: The service must be innovative enough.  
4. User protection: In case general service users are involved in the PoC project, appropr iate 
protective measures, including explanations for such service users, must be taken.  
5. Feasibility: Resources, such as finance and personnel, must be ensured to execute the PoC 
project.  
 
The same criteria are applied to foreign companies.  
 
Telecommunicati on services  
(WT/TPR/S/397, P ages 170-172, paras 4.182 -4.189 ) 
 
The government policy regarding telecommunications during the period under review was essentially 
focused on consumer protection and lowering of costs linked to the use of mobile handsets. Under  
a plan approved by the communications ministry 's panel, Japan 's four main mobile phone operators 
and the Mobile Virtual Network Operators will be obliged to cut cancellation charges by 90%, to JPY 
1,000 or less from the current JPY 9,500, enabling users to switch companies more easily.  
 
Question  
4. Why only the four main operators are involved? Is there any plan to extend the obligation 
to other operators?  
 
RESPONSE  
The rules in the Telecommunications Business Act for completely separating communication charges 
and terminal charges, and correcting excessive enclosure such as term -bound contracts apply to all 
Mobile Network Operators (MNOs), and all the Mobile Virtual Network Operators (MVNOs) that are 
specific affiliates of MNOs, and MVNOs t hat exceed a certain market share. Currently, there are 
24 telecommunications operators subject to these rules.  
 
Postal, courier and express services  
(WT/TPR/S/397, P ages 172-173, Box 4.6; Page 174,  para 4.199)  
 
The conditions for application of "general correspondence services" require complete territorial 
coverage, the installation of "correspondence collection boxes" evenly throughout the country, 
according to the populations of municipalities, a six -days-a-week delivery frequency, the guarante e 
of secrecy of correspondence, and an adequate business plan. While the service is liberalised, no 
private provider has applied for a licence. The only operator is the Japan Post.  
 
Question  
5. Is there any plan to relax the application conditions to encourag e the participation of private 
operators and introduce competition in the sector?  
 
RESPONSE  
Requirements for participation in the general correspondence delivery service are kept to the 
minimum necessary in order to prevent cream skimming, which provides s ervices only to highly 
profitable customers such as companies and persons in urban areas, ensure the universal service of 
correspondence delivery, and safeguard the secrets of correspondence. Currently, there is no specific 
plan to relax the application co nditions.  
 
  WT/TPR/M/397/Add.1  
 
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INDIA  
Questions based on Secretariat Report (WT/TPR/S/397)  
 
Page 10, Para 1  
 
Question 1  
Kindly elaborate on the inflation targeting strategy of Bank of Japan?  
 
RESPONSE  
The Bank of Japan sets the "price stability target" at 2 percent in terms of the year -on-year rate of 
change in the consumer price index (CPI) – a main price index. The Bank commits itself to 
expanding the monetary base until the year -on-year rate of increase in the observed consumer 
price index exceeds the price stability  target of 2% and stays above the target in a stable manner 
("inflation -overshooting commitment").  
 
Page 10, Para 2 
 
Question  2 
India requests Japan to provide the details of trade related structural reforms in the area of labour 
market policies and taxation.  
 
RESPONSE  
Please refer to both "1.2.4.1" and "1.2.4.4" in the Trade Policy Review Report by the Secretariat.  
 
Page 10, Para 5 
 
Question  3 
India requests Japan to provide an insight of some of the key domestic policy objective/changes 
with a view to develop free, fair and high -level trade rules.  
 
RESPONSE  
With CPTPP, the Japan -EU EPA and Japan -U.S. Trade Agreement, together encompassing about 60 
per cent of the world economy, Japan is at its center of this vast free ec onomic area. Under such 
circumstances, Japan has steadily implemented measures based on the "Comprehensive TPP -
Related Policy Framework", which was revised last December. These measures are intended to 
encourage Japanese businesses and producers including SMEs to seize new markets overseas, and 
to strengthen the competitiveness of domestic industries.  
 
Page 11, Para 6  
 
In this paragraph, the report states that the structure of the MFN applied tariff remains complex, 
with a total of 272 tariff rates (same as in FY2016); there are 136 different ad valorem rates, 
75 different specific rates, 29 different alternate rates and 24 different compound rates, as well as 
8 different other types of duty.  
 
Question 4  
Does Japan have any plans to simplify the pres ently complicated structure of the MFN applied tariff?  
 
RESPONSE  
Japan does not have such a plan.  
 
Question 5  
Kindly specify the reason behind keeping the simple average tariff rate for agricultural products at 
17.9% compared with 3.5% for non-agricultural products.  
 
RESPONSE  
With a huge population and limited farmland, Japan remains one of the world 's largest importers of 
food. As the food production of trade partners may fluctuate, a certain level of domestic production 
should be secured i n order to address food security concerns. To this end, Japan applies import 
duties consistent with the WTO rules while importing a considerable amount of agricultural products.  
 WT/TPR/M/397/Add.1  
 
- 13 - 
 
Question 6  
In this paragraph, the report mentions that 7.1% of Japan 's tariff  lines are non -ad valorem  and all 
the highest tariffs have non -ad valorem rates. Could the Japan please inform us the reason for 
keeping non -ad valorem rates for all the highest tariffs?  
 
RESPONSE  
Japan set an appropriate tariff rate on each product, takin g into consideration the situations of 
domestic sectors, which is consistent with WTO Agreements.  
 
Question 7  
Does Japan have any plans to convert non -ad valorem  rates to  ad valorem  rates in order to simplify 
and enhance transparency of its trade regime?  
 
RESPONSE  
Japan does not have such a plan.  
 
Page 11, Para 7  
 
Question 8  
Kindly elaborate the new principle on cargo reporting undertaken with regard to simplify the custom 
procedure.  
 
RESPONSE  
The "new principle on cargo reporting" mentioned here is that the electronic reporting of advance 
information on air cargo through the computer system called NACCS became mandatory. The new 
principle was introduced as one of the counterterrorism measures, not intended to simplify the 
customs procedures.  
 
Page 11, Para 8  
 
Question 9  
What is the quantity and value of import and export of marine products since 2015?  
 
RESPONSE  
The quantity and value of import and export of marine products since 2015 are shown in the following 
table.  
  
Export  Export  Import  Import  
Year Tonnes  USD million  Tonnes  USD million  
2015 556,151  2,278  2,488,065  14,181  
2016 537,187  2,434  2,380,732  14,704  
2017 595,085  2,452  2,478,679  15,835  
2018 749,791  2,747  2,383,690  16,202  
Source  Trade Statistics of Japan.  
Page 11, Para 9  
 
Question 10  
Does Japan have any plans to remove the definitive duties on polyethylene terephthalate anytime 
in the near future?  
 
RESPONSE  
The Government of Japan imposes anti -dumping duties on Polyethylene terephthalate with a high 
degree of polymerization originating in the People 's Republic of China from December 28, 2017 until 
December 27, 2022 in accordance with the Cabinet Order and relevant WTO agreements.  
 
Page 11, Para 5  
 
Question  11 
what are the changes that were made to the framework for graduation from Japan 's GSP scheme?  
 WT/TPR/M/397/Add.1  
 
- 14 - 
 
RESPONSE  
Please refer to 2.3.2.2 in the Trade Policy Review Report by the Secretariat.  
 
Question  12 
On what basis does Japan determine giving GSP benefits and the  continuation or withdrawal of such 
benefits?  
 
RESPONSE  
Please refer to 2.3.2.2 in the Trade Policy Review Report by the Secretariat.  
 
Page 11 Paragraph 9 
 
Questions  13 
Can Japan provide the details of its amendment to the legislation on anti-dumping?  
 
RESPONSE  
Please refer to 3.1.7.1 in the Trade Policy Review Report by the Secretariat.  
 
Page 11, Para 10 
 
Question  14 
India requests Japan to apprise on the various changes made to its export control regime.  
 
RESPONSE  
The requested information is available on the website of the Ministry of Economy, Trade and Industry 
("METI") as follows  
(Japanese): https://www.meti.go.jp/policy/external_economy/t rade_control/index.html ; 
https://www.meti.go.jp/policy/anpo/  
(English):  
https://www.meti.go.jp/english/polic y/external_economy/trade_control/index.html  
 
Page 11, Para 11 
 
Background:  Domestic support to production and trade remains in place. It is available to foreign 
and domestic companies through tax incentives, grants and loan schemes.  
 
Question  15 
In light of abovementioned background does Japan agree to the fact that domestic supp ort to 
production and trade is equally available to the domestic as well as foreign companies without any 
discrimination? In case the Answer is NO then please explain the circumstances.  
 
RESPONSE  
These supports are implemented in accordance with the relevant WTO Agreements.  
 
Page 11, Para 10  
 
Question 16  
Please explain the changes made by Japan to its export control regime with respect to goods and 
destinations.  
 
RESPONSE  
Please refer to pages 70 -72 of the Secretariat Report.  
 
Page 11, Para 11  
 
Question 17  
Does the domestic support tax incentives, grants and loan schemes undertaken by Japan are WTO -
complaint?  
 WT/TPR/M/397/Add.1  
 
- 15 - 
 
RESPONSE  
Assuming that the question is asking about the WTO -consistency of Japan's domestic support, tax 
incentives, grant and loan schem es, these measures are undertaken in compliance with relevant 
WTO Agreements.  
 
Page 12, Para 16  
 
Question 18  
How much revenue is earned from Intellectual Property rights that have increased exponentially in 
recent years?  
 
RESPONSE  
Balance of payments statistics (Preliminary) show that the receipt of "Charges for the use of 
intellectual property n.i.e." was 5,107.7 billion yen in 2019.  
 
Question 19  
Kindly elaborate on the functions/role of the Integrated Innovation Strategy Promotion Council.  
 
RESPONSE  
The government established the Integrated Innovation Strategy Promotion Council chaired by the 
Chief Cabinet Secretary, as an organization to coordinate relevant councils on innovation, namely, 
the Council for Science Technolog y, and Innovation (CSTI), IT Strategic Headquarters, Intellectual 
Property Strategy Headquarters, Headquarters for Healthcare Policy, Space Development Strategy 
Headquarters, and Headquarters for Ocean Policy, and implement the Integrated Innovation 
Strate gy. 
 
Page 12, Para 17  
 
Question 20  
What is the reason for running a trade deficit in agriculture goods despite relatively high support to 
agricultural sector (0.84% of GDP in 2018)?  
 
RESPONSE  
With a huge population and limited farmland, Japan remains one o f the world 's largest importers of 
food. As the food production of trade partners may fluctuate, a certain level of domestic production 
should be secured in order to address food security concerns. To this end, Japan supports the 
agricultural sector consis tent with the WTO rules while importing a considerable amount of 
agricultural products.  
 
Page 12, Para12 
 
Question  21 
India requests Japan to provide the details of amendments made to the standard legislation.  
 
RESPONSE  
 
Regarding the details of amendments made to Japanese Industrial Standards (JIS), Japanese 
Agricultural Standards (JAS) and Food labelling standards, we would like you to see the following 
websites or the following part of Secretariat Report respectively.  
[Japanese Industrial Stand ards] 
Website: 
https://www.meti.go.jp/english/policy/economy/standards_and_conformity/pdf/20200226.pdf  
[Japanese Agricultural Standards]  
Website: https://www.maff.go.jp/j/jas/h29_jashou_kaisei.html  (Japanese Site)  
[Food labelling standards]  
Website (Japanese language):  
https://www.caa.go.jp/policies/policy/food_labeling/food_labeling_act/#laws   
or see the following part of Secretariat Report, 3.118 and 3.119.  
 WT/TPR/M/397/Add.1  
 
- 16 - 
 
Page 12, Para13  
 
Question  22 
What are the key amendments made to the Food Sanitation Act?  
 
RESPONSE  
Please refer to paragraph 3.128 in the Trade Policy Review Report by the WTO secretariat.  
 
Background: It has been mentioned that Japan sets some standards on food additives and 
maximum residue limits (MRLs) that are different from Codex standards and MRLs; these are 
apparently based on scientific evidence.  
 
Questions  23 
In the context of above background India requests Japan to clarify whether the MRLs for the 
aforesaid are higher than the codex standards?  
 
RESPONSE  
Japan takes into account the Codex standards whenever reviewing Maximum Residue Limits (MRLs) 
for agricultural chemicals, in accordance with Article 3.1 of the WTO SPS Agreement. Japan, when 
necessary, s ets MRLs different from Codex standards based on scientific evidence which are higher 
or lower than the Codex standards.  
 
Page 13, Para 18  
 
Question 24  
What is the reason behind declining figures of fisheries production, fishing fleet, number of fishermen 
and fish consumption?  
 
RESPONSE  
The reasons may include the ageing of fishermen, and Japanese society in general, as well as the 
loss of fishing grounds.  
 
Page 13, Para 20  
 
Question 25  
In this paragraph, the report states that during the review period, certain manufacturing policy 
developments, including artificial intelligence, robotics and related plans interlinked with services, 
were undertaken.  Kindly elaborate on the various plans mentioned in the report.  
 
RESPONSE  
The Future Vision towards 2030s aims to use technological advances, including IoT, big data, 
artificial intelligence, and robots to address societal challenges and promote economic g rowth. Japan 
will harness these technologies to carry out reforms in the fields of healthcare, mobility, 
infrastructure, and FinTech. With these advances, Japan aims to achieve Society 5.0, a super -smart 
society and the product of the fourth industrial rev olution. Additional information about Society 5.0 
can be found here: https://www.japan.go.jp/abenomics/_userdata/abenomics/pdf/society_5.0.pdf .  
 
The various plans me ntioned in the report can be found using the links below:  
 
The Future Vision towards 2030s - https://www.meti.go.jp/english/press/2017/0530_003.html   
Connected Industries Initiative - https://www.meti.go.jp/english/press/2017/1002_004.html  
2017 Artificial Intelligence Technology Strategy - https://www.nedo.go .jp/content/100865202.pdf   
Robot Strategy - https://www.kantei.go.jp/jp/singi/keizaisaisei/pdf/robot_honbun_150210EN.pdf   
 
Question 26  
Does Japan have any plans to reduce the peak rates (AVEs) for footwear and silk products?  
 
RESPONSE  
Japan doesn't have such a plan.  
 
Question 27  
Which industrial items were subject to anti -dumping duties?  WT/TPR/M/397/Add.1  
 
- 17 - 
 
RESPONSE  
Please refer to Table 3.7 in the Trade Policy Review Report by  the Secretariat.  
 
Page 13, Para 18  
 
Background: Japan amended its Fisheries Act in 2018 to adopt the system of individual quotas, 
transferrable under certain conditions, within a Total Allowable Catch system, and to open the sector 
to private investors in addition to cooperatives by reforming the alloca tion of fishing rights.  
In the light of above background India requests Japan to:  
 
Question 28  
Explain under what conditions individual quotas are transferable?  
 
RESPONSE  
In the case the quota is transferred together with the fishing vessel to which the quota is allocated, 
such transfers are allowed upon authorization either by the Minister of Agriculture, Forestry and 
Fisheries, or the prefectural governor.  
 
Question 29  
What is the specific limit under total allowable catch system?  
 
RESPONSE  
Based on the results of the assessment, the total catch limit for each stock allowable in the 
management period (i.e. one fishing year) is set under the system.  
 
Page 13, Para 19  
 
Question 30  
India requests Japan to provide the details of major reforms that has tak en place in electricity and 
gas sectors.  
 
RESPONSE  
 Since the Great East Japan Earthquake followed by the nuclear accident, many issues of the 
existing electricity system have been revealed. The Cabinet decided "The policy on Electricity 
System Reform" on April 2, 2013 which specified objectives and schedules of the reform. The 
drastic institutional reform is being implemented according to three stages scheduled by the 
cabinet decision.  
 The first bill to revise the Electricity Business Act for ex panding the cross -regional coordination 
for transmission operators and for determining the process of the electricity system reform by 
2020 was enacted as the first stage on November 13, 2013.  
 Moreover, the bill to revise the Electricity Business Act for i ntroducing full retail competition was 
enacted as the second stage on June 11, 2014.  
 The third bill to revise the Electricity Business Act for legal unbundling of transmission and 
distribution sectors was enforced as the third stage on June 17, 2015.  
 Throu gh the series of revision of the act, "full liberalization of electricity retail entry" was 
enforced in April 2016 so that competition was activated with the implementation and there 
were more than 600 entries. Moreover, the legal unbundling of transmissio n and distribution 
sector from retail and power generation sectors will be implemented in April 2020.  
 Regarding as city gas businesses, please take a look at the attached document that shows gas 
market structure details and full liberalization of retail m arket.  
 
Page 13, Para 20  
 
Question 31  
India requests Japan to provide a detailed insight on manufacturing policy development specifically 
for Artificial Intelligence and Robotics that were undertaken.  
 
RESPONSE  
The Future Vision towards 2030s aims to use technological advances, including IoT, big data, 
artificial intelligence, and robots to address societal challenges and promote economic growth. The 
various plans can be found using the links below:  
 WT/TPR/M/397/Add.1  
 
- 18 - 
 
2017 Artificial Intelligence Technology Strategy  at: 
https://www.nedo.go.jp/content/100865202.pdf ;  
Robot Strategy  at: https://www.meti.go.jp/english/press/2015/pdf/0123_01b.pdf . 
 
Page 13, Para 20  
 
Question 32  
India would request Japan to apprise on the fact that whether domestic support for the non -industry 
specific scheme has been continued for anything beyond what has been mentioned in para 20.  
 
RESPONSE  
Please refer to the paragraph 4.145 and 4.153.  
 
Page 13, Para 21  
 
Question 33  
India request Japan to provide an insight on how the high-speed trading is regulated in Japan and 
also mention the changes if any during the review period.  
 
RESPONSE  
As described in para 4.6 -1, section 4.3 of WT/TPR/G/397,  FSA has introduced measures including 
registration requirement on high speed trading, by the amendment of the Law for Partial Revisions 
of the Financial Instruments and Exchange Act etc. (entry into force on April 1, 2018).  
 
Page 14, Para 27  
 
Background: The practice of legal services is not reserved for nationals but, with respect to the 
practice of Japanese law, a Japanese qualification is required. Foreign firms can establish and employ 
Japanese lawyers to practice Japanese law.  
 
Question 34  
Against the  aforementioned background does Japan agree to the fact that if a foreign lawyer is 
practicing International Law or advising on any such transaction bereft of Japanese law and 
legislation they can establish a firm and employ lawyers for their firm sans/ wi thout Japanese 
qualification within the territory of Japan?  
 
RESPONSE  
Although Japan fails to see the point of the question, the Registered Foreign Lawyer System in  
 Japan is as follows.  
・A foreign lawyer must be recognized as "Gaikoku -Ho-Jimu-Bengoshi(Registered Foreign 
Lawyers)" by the Minister of Justice and register with the Japan Federation of Bar Associations 
to provide legal services in Japan.  
・The professional duties of a Registered Foreign Lawyer isto provide legal services concerning 
the laws of the state of primary qualification. Practice of international law is permitted, provided 
that the international law is or was in force in the jurisdiction of Japan.  
・Any Registered Foreign Lawyer who conducts duties illegally beyond the scope o f the above 
duties is subject to disciplinary action. In addition, criminal penalties can be imposed if the 
violation is serious.  
・Commercial presence is required for Registered Foreign Lawyers to provide legal services.  
・A Registered Foreign Lawyer may es tablish a Registered Foreign Lawyer Corporation. A 
Registered Foreign Lawyer or a Registered Foreign Lawyer Corporation can employ Lawyers, 
Registered Foreign Lawyers or Foreign Lawyers.  
 
Page 16, Table 1.1 Selected macroeconomic indicators, 2014 -18 
 
Quest ion 35  
What is the reason behind the reduction in percentage change of Exports of goods and services from 
6.8 % in 2017 to 3.3% in 2018?  
 
RESPONSE  
In the latter half of 2018, factors such as the gradual slowdown of China 's economic growth, leveled 
off dema nd for ICT goods that was previously increasing, and impacts of trade disputes between the WT/TPR/M/397/Add.1  
 
- 19 - 
 
United States and China, such as tariff increases, caused the growth rate of exports, which were 
mainly to China, to slow down.  
 
Page 17, Para 1.3  
 
Question 36  
What is the impact of the consumption tax rate hike from 8% to 10% on its economy?  
 
RESPONSE  
The Japanese economy has decelerated in the October -December quarter of 2019 due to a 
combination of factors, including the slowdown of the global economy, the con sumption tax rate 
hike, and natural disasters. Domestic demand has declined due to the effects of the consumption 
tax rate hike and natural disasters, but it is predicted to follow an uptrend. Overall, the negative 
impact of tax hike on the growth rates fo r FY 2019 and 2020 is expected to be smaller than for the 
tax rate hike in FY 2014 due to various factors, including measures implemented by the Government. 
Concerning short -term prospects, weakness remains for the time being, but the economy is expected 
to continue recovering, supported by the effects of the policies, while employment and income 
situation are improving.  Also, the Bank of Japan releases additional information about these 
measures and the economic impact (the Bank of Japan 's Outlook for Econ omic Activity and Prices, 
https://www.boj.or.jp/en/mopo/outlook/box/index.htm/ .) 
 
Page 17, Para 4.13  
Background  
From the Government Report -The maximum levels of radioactive caesium in food were set to meet 
the intervention exemption level of the Codex Alimentarius Commission (Codex), 1mSv/year, 
considered as safe for the public, and in consideration of the released nuclides and with highly 
conservative and hypothetical assumptions, including that 50% of the food intake is contaminated. 
Accordingly, the maximum level for food in general is set as 100 Bq/kg in Japan, while the 
corresponding Codex guideline level is 1,000 Bq/kg (CXS 193 -1995).  
 
Question 37  
Is Japan applying requirement of 100 Bq/kg for radioactive caesium in food for the products impo rted 
into Japan from other territories?  
 
RESPONSE  
A. Japan sets the maximum levels for radionuclides in food as follows:  
✓ 10 Bq/kg for drinking water  
✓ 100 Bq/kg for food in general  
✓ 50 Bq/kg for milk  
✓ 50 Bq/kg for infant food  
 
The levels are applied to all foods distributed in Japan, therefore, they are also applied to imported 
foods.  
 
Page 17, Para 4.13  
Background  
From the Government Report -The maximum levels of radioactive caesium in food were set to meet 
the intervention exemption level of the Codex Alimentarius Commission (Codex), 1mSv/year, 
considered as safe for the public, and in consideration of the released nuclides and with highly 
conservative and hypothetical assumptions, including that 50% of the food intake is contaminated. 
Accordingly, the maximum level for food in general is set as 100 Bq/kg in Japan, while the 
corresponding Codex guideline level is 1,000 Bq/kg (CXS 193 -1995).  
 
Question 38  
Does Japan have any timeline for review for the requirement of 100 Bq/kg for radioactive caesium 
in food?  
 
RESPONSE  
Japan 's maximum levels for radionuclides in food* has been set not to affect human health when 
foods are taken daily for a long p eriod.  
At this stage, Japan does not have a plan to reconsider the levels.  
*Note: See Q uestion 37. WT/TPR/M/397/Add.1  
 
- 20 - 
 
Page 23, Para 1.14  
 
Question 39  
What are those airport operation concessions which were granted?  
 
RESPONSE  
Airport concession in Japan is, under the Private Utilization Airport Operation Act, to conduct 
integrated operations of both aeronautical business and non -aeronautical business under private 
management, while the public sector, including the government of Japan, retains ownership of land 
and runw ays. The purposes of airport concession are to realize an integrated management 
leveraging the private sector 's originality and ingenuity, to enhance aviation network through flexible 
setting of landing fees, and to revitalize the local community by expans ion of personal interaction 
both domestic and international.  
Specific outsourcing methods to the private sector are as follows:  
First, the airport concessionaire conducts operation of runways etc. under the operation right of 
public facilities granted by t he government, and also conducts operation of terminal building etc. by 
acquiring shares of semi -public corporation etc.  
Second, the airport concessionaire sets and receives landing fees and other revenue, and covers the 
operation cost by such income.  
 
Page 25, Para 1.9  
 
Question 40  
What factors led to the increase in current account surplus from 3.1% of GDP in 2015 to a peak of 
4.1% in 2017?  
 
RESPONSE  
One of the main factors of the increase in the current account surplus was the shift in the trade 
balan ce from deficit to surplus.  
 
Page 29, Para 1.26  
 
Question 41  
What percentage of private investment in Japan is financed by foreign players?  
 
RESPONSE  
Japan does not have such data asked by India.  
 
Page 30, Para 1.27  
 
Question 42  
India requests Japan to provide the details of its major capital exports.  
 
RESPONSE  
Please refer to (Table 1.5 Inbound and outbound flows of direct investment, by activity, 2014 -18) 
in the report or the following URL.  
URL： 
https://www.mof.go.jp/english/international_policy/reference/balance_of_payments/ebpfdii.htm  
 
Page 34, Para 2.2  
 
Question 43  
Kindly elaborate on the steps Japan is adopting to achieve sustainable growth?  
 
RESPONSE  
Japan aims to achieve sustainable growth by implementing reforms to pioneer Society 5.0. Re forms 
are in progress in the following areas:  
 
1. Innovation in Societal Structures  
2. Diversity and Empowerment of People  
3. Smart Regulations and Laws  
4. Attractive International Opportunities  WT/TPR/M/397/Add.1  
 
- 21 - 
 
5. More Competitive Business  
 
Additional information about steps being taken to achieving sustainable growth can be found at: 
https://www.japan.go.jp/abenomics/_userdata/abenomics/pdf/2001_abenomics.pdf .  
 
Page 34, Para 2.3  
 
Question 44  
In this paragraph, the report states that initiatives were undertaken for 10 Strategic Public -Private 
Joint Projects (an initiative to cultivate new markets and for knowledge - and strategy -sharing 
between the public and private sectors). Could Japan provide a list of 10 Strategic Public -Private 
Joint Projects?  
 
RESPONSE  
The list of 10 Strategic Public -Private Joint Projects is as follows.  
(1) Promo tion of the fourth industrial revolution (IoT, Big Data, artificial intelligence)  
(2) Promotion of world -leading healthcare nation  
(3) Overcoming environment -energy constraints and expansion of investments  
(4) Transformation of Sports sector to a growth in dustry  
(5) Revitalization of existing housing and housing -renovation market  
(6) Improvement of productivity in service industry  
(7) Renovation of mid -ranking companies, SMEs and microenterprises  
(8) Promotion of proactive agriculture, forestry and fishery and strengthened export  
(9) Promotion of tourism nation  
(10) Stimulation of consumer appetite by public -private collaboration  
 
Page 34, Para 2.3  
 
Question 45  
Kindly elaborate on the role of new entities such as the Public -Private Council for the Fourth Industrial 
Revolution, the Artificial Intelligence Technology Strategy Council; and the Council for Promoting 
Human Resource Development to Respond to the Fourth Industrial Revolution.  
 
RESPONSE  
1. Public -Private Council for the Fourth Industrial Re volution  
The Future Investment Council plays the role of the Public -Private Council for the Fourth Industrial 
Revolution in the Japan Revitalization Strategy 2016.  
The Council was established under the Headquarters for Japan 's Economic Revitalization (a 
committee in which all Ministers participated for overcoming the strong yen and deflation and 
revitalizing a strong economy in cooperation with the Council on Economic and Fiscal Policy) as the 
headquarters of growth strategies. It promotes bold investments in fields contributing to future 
growth, including the Fourth Industrial Revolution, through public -private partnerships.  
 
2. Strategic Council for AI Technology  
Based on instructions issued by the Prime Minister in the Public -Private Dialogue towards Inve stment 
for the Future in April 2016, Japan established the Strategic Council for AI Technology, which was 
reorganized to the AI Strategy Expert Meeting for Strength and Promotion of the Innovation in 2018, 
and the discussion of AI strategy was taken on by the expert meeting. In 2019, Japan established 
the AI Strategy 2019 based on the proposal of the expert meeting.  
 
3. Council for Promoting Human Resource Development to Respond to the Fourth Industrial 
Revolution  
Based on the Japan Revitalization Strategy 2016 (decided at the Cabinet Council on 2 June 2016), 
Japan created the Council for Promoting Human Resource Development to Respond to the Fourth 
Industrial Revolution in December 2016 and held five conferences up to April 2017. The Council 
discussed the t ype of human resources that would be demanded in the Fourth Industrial Revolution 
era and policies necessary to develop such human resources. Japan incorporated the results of these 
discussions in the Investment for the Future Strategy 2017 (decided at the  Cabinet Council on 9  June 
2017), which specified revision of the indicator (IT skill standards) that systemized and clarified the 
necessary practical ability, system reform and policy support for higher education institutions such 
as universities to becom e important players in "IT and data skill training", implementation of IT/data 
education, such as programming in primary and secondary education, and so on.  WT/TPR/M/397/Add.1  
 
- 22 - 
 
Page 37, Para 2.11  
 
In this paragraph, the report mentions that Japan supported the Buenos Aires Joint Declaration on 
Trade and Women's Economic Empowerment.  
 
Question 46  
What is Japan's policy stand on including women empowerment related provisions in Trade 
Agreements?  
 
RESPONSE  
At this point, the Government of Japan does not have such intentio n. 
 
Page 41, Para 2.16  
 
Question 47  
What is the impact of the first protocol amendment of Agreement on the ASEAN -Japan 
Comprehensive Partnership? Will this help Japan to deepen its integration with the ASEAN countries?  
 
RESPONSE  
Japan and ASEAN countries are important partners of investment and trade with each other. Upon 
its conclusion, the First Protocol to Amend the Agreement on Comprehensive Economic Partnership 
among Japan and Member States of ASEAN is expected to further enhance trade in se rvice and 
investment and strengthen cooperation between Japan and ASEAN countries.  
 
Page 41, Para 2.17  
 
Question 48  
What is the reason behind postponing the negotiations with Gulf Cooperation Council?  
 
RESPONSE  
After official declaration of the launch of t he FTA negotiations between Japan and the Gulf 
Cooperation Council in 2006, multiple rounds of negotiations were held. However, since the GCC 
started reviewing its FTA policies as a whole, the negotiations have been suspended since 2009.  
 
Question 49  
Kindly elaborate on the reason behind suspending the negotiations with the Republic of Korea?  
 
RESPONSE  
The EPA negotiations between Japan and Korea were launched in 2003 but were suspended after 
the 6th round of negotiations in 2004. On the other hand, Japan a nd Korea are now aiming at the 
realization of regional economic partnerships through the negotiations of RCEP and the Japan -China -
Republic of Korea FTA.  
 
Page 43, Para 2.20  
 
Question 50  
Which products are subject to Tariff rate quotas in Japan agreement un der CPTPP?  
 
RESPONSE  
Please refer to Section B "TPP Wide TRQs (TWQs)" and Section C "Country -Specific TRQs (CSQs)" of 
ANNEX 2 -D "Tariff Commitments" APPENDIX A, "Tariff Rate Quotas of Japan".  
https://www.mfat.govt.nz/assets/Trans -Pacific -Partnership/Annexes/2 -D.-Japan -Appendix -A-
Tariff-Rate-Quotas.pdf . 
 
Page 42 -43, Para 2 0  
 
Question 51  
Can Japan please explain how does it apply the Tariff Rate Quota (TRQ) which is country specific?  
 WT/TPR/M/397/Add.1  
 
- 23 - 
 
RESPONSE  
Please refer to Section C, "Country -Specific TRQs (CSQs)" of ANNEX 2 -D "Tariff Commitments" 
APPENDIX A. Please note that "Tariff Ra te Quotas of Japan", in which CSQs for the U.S. are not 
effective.  
https://www.mfat.govt.nz/assets/Trans -Pacific -Partnership/Anne xes/2 -D.-Japan -Appendix -A-
Tariff-Rate-Quotas.pdf . 
 
Page 43, Para 2.26  
 
Question 52  
How does Japan determine giving GSP benefits at varying degrees to the countries as well as for the 
specific products?  
 
RESPONSE  
Japan 's GSP scheme, which started in August  1971, designates beneficiary countries/territories, 
beneficiary products, and their respective duty rates under the Temporary Tariff Measures Law and 
the Cabinet Order for Enforcement of the Temporary Tariff Measures Law.  
For more information, please ref er to the following URL:  
https://www.customs.go.jp/english/c -answer_e/imtsukan/1501_e.htm . 
 
Page 45, Para 2.31  
 
Question 53  
How does Japan visualize the next generation trade and investment issues within the fold of its 
future RTA 's? 
 
RESPONSE  
Japan envisages that APEC should work on both the Next Generation Trade and Investment Issues 
(NGeTIs) and areas such as digital trade, labour and state owned enterprises (SOEs), which are 
defined as the Potential Next Generation Trade and Investment Issues (NGeTIs) and also are not 
included in the Next Generation Trade and Investment Issues (NGeTIs), towards the realization of 
high quality and comprehensive FTAAP.  
TPP11, a  "pathway" for the realization of FTAAP, can be seen as a model for 21st century trade and 
investment rules due to its high quality and comprehensiveness. Japan will continue to strive for 
steady implementation and expansion of such rules with other econom ies. 
 
Question 54  
India requests Japan to provide a detailed account of works it has done specifically in the domain of 
digital economy be it regulatory, legislative or monetary policy measures?  
 
RESPONSE  
APEC agreed on the Work Plan for advancing "Facilitating Digital Trade for Inclusive Growth" as a 
Potential Next Generation Trade and Investment Issue in 2015. Based on Leaders ' instruction 
included in their 2015 Declaration, in 2016, the Collective Strategic Study on Issues Related to the 
Realizat ion of the FTAAP (CSS) included digital trade as a potential next generation trade and 
investment (NGeTI) issue, while without prejudice to possible future work on FTAAP.  
For the eventual realization of FTAAP, digital trade/e -commerce elements are indispe nsable and 
should address the business needs and the latest trends of international trade and the global 
economy. Japan proposed the following Work Plan to advance discussion on digital trade/e -
commerce as one of the key elements for the eventual realizati on of FTAAP and endorsed it at the 
APEC CTI2 meeting in May 2019.  
 
Objectives/Work Plan  
The proposed Work Plan aims to achieve the following objectives:  
1) Take stock of digital trade/e -commerce elements in FTAs/RTAs, assess convergence and 
divergence, an d examine current situations and new trends.  
2) Assess digital trade and e -commerce related initiatives in APEC (CTI, DESG, TEL, including the 
APEC Internet and Digital Economy Roadmap, APEC Cross -Border E -Commerce Facilitation 
Framework, etc.) and initia tives in other international fora including the WTO.  
3) Building on 1) and 2), conduct experience -sharing and capacity building activities for enhancing 
members ' understanding of digital trade/e -commerce elements of FTAs/RTAs and their capacity to 
negotia te comprehensive, high -quality FTAs/RTAs.  WT/TPR/M/397/Add.1  
 
- 24 - 
 
4) Consider next steps on the issues related to the eventual realization of FTAAP taking into account 
the above -mentioned assessments and capacity building activities. Through the process, cooperation 
with other i nternational fora will be explored for conducting the Work Plan. Without prejudice to 
possible future work on FTAAP, the above -mentioned exercise could be helpful in the context of 
economies ' further discussions on the FTAAP.  
 
Japan presented the progress/ update on the Work Plan at CTI1 in February 2020. The presenter 
briefed that Japan will circulate a questionnaire to all APEC economies on e -commerce (e.g. 
Particular factors to consider when setting new e -commerce provisions in new FTAs), Government 
strategies (e.g. Political stance) etc. and that each economy will be requested to respond by the end 
of March. The results of this questionnaire will be fed back to each APEC member economy during 
CTI2 in April.  
 
Page 45, Para 2.31  
 
In 2016, APEC leaders adopt ed the Lima Declaration on the Free Trade Area of the Asia Pacific 
(FTAAP), which envisages negotiations on a comprehensive RTA which would include 
"nextgeneration trade and investment issues".  
 
Question 55  
Kindly elaborate on the next generation trade and investment issues adopted under the Lima 
Declaration on the Free Trade Area of the Asia Pacific (FTAAP).  
 
RESPONSE  
As stated in the Collective Strategic Study on Issues Related to the Realization of the FTAAP finalized 
by APEC members in 2016 and  served as a basis of the Lima Declaration on FTAAP(2016), GSCs, 
SME, innovation policy, transparency in RTAs/FTAs and manufacturing related services are endorsed 
as the Next Generation Trade and Investment Issues (NGeTIs) and its works related to these ar eas 
are being undertaken.  
Japan envisages that we should work on areas such as digital trade, labour and state owned 
enterprises (SOEs), which are defined as the Potential Next Generation Trade and Investment Issues 
(NGeTIs) and also not included in the Ne xt Generation Trade and Investment Issues (NGeTIs) 
towards the realization of high quality and comprehensive FTAAP.  
 
Question 56  
What strategy will the APEC members follow to progress on the areas such as the digital economy; 
building a seamless and compre hensively connected and integrated Asia -Pacific by 2025; increasing 
the APEC's competitiveness in the services sector by 2025; developing policies to take advantage of 
global value chains; advancing economic, financial and social inclusion; and ensuring fo od security 
and sustainability.  
 
RESPONSE  
Japan has been and will continue to working on the areas referred in the question, following the 
respective APEC strategies.  
▪ APEC Internet and Digital Economy Roadmap (AIDER) (2017)  
▪ APEC Cross -Border E-Commerce Facilitation Framework (2017 ） 
▪ APEC Connectivity Blueprint for 2015 -2025(2014 ） 
▪ APEC Services Competitiveness Roadmap (2016 -2025) (ASCR) (2016)  
▪ APEC Strategic Blueprint for Promoting Global Value Chains 2020 -2025 (2019)  
▪ APEC Action Agenda on Advan cing Economic, Financial and Social Inclusion in the APEC Region 
(2017） 
▪ APEC Food Security Roadmap 2020 (2014)  
 
Furthermore, APEC is currently working on creating an "APEC Post 2020 Vision", which will follow 
the Bogor Goals, towards the completion of this  year.  
 
Page 46 -47, Para 2.36  
Background: In 2017, the FEFTA was amended, inter alia , to expand the scope of a prior checking 
of unlisted stock transfers between foreign investors, and to introduce a provision that foreign 
investors investing in Japan wit hout being registered may be subject to executive orders, including WT/TPR/M/397/Add.1  
 
- 25 - 
 
orders to sell their holding stocks; these measures were taken in order to protect Japan's essential 
security.58 There have been no further amendments since 2017.  
 
Question 57  
Against the above background from the wording " without being registered"  can it be deciphered that 
foreign investors may be exempted or would be treated at par with the Japanese investors in case 
of executive orders including the orders to sell their stocks?  
 
RESPONSE  
Ordering measures concerning investors 'without being regis tered' are issued for foreign investors 
who have obligation to notify the inward direct investment or equivalent action, or the specified 
acquisition.  
 
Page 49, Para 2.43  
 
Japan is ranked in 39th place out of 190 economies in the World Bank's 2019 Doing Bu siness report; 
it scores well in the areas of resolving insolvency, getting electricity, dealing with construction 
permits, and registering a property. Its poorest rankings are for: starting a business, getting credit, 
and protecting minority investors.  
 
Question 58  
What steps Japan is following in order to improve on the rankings for starting a business, getting 
credit, and protecting minority investors.  
 
RESPONSE  
Japan regularly explained by video conferences and letters its improvement of related system and 
an erroneous assumption of the facts to the World Bank.  
In addition, Japan held the Business environment improvement liaison meeting of the ministry 
concerned and efforts to strengthen its improvement of related system.  
 
Question 59  
Are there any rece nt initiatives taken to improve the poorest ranking? If yes, kindly elaborate on 
the same.  
 
RESPONSE  
Please refer to the answer of Question 58 of India.  
 
Page 52, Para 3.2  
 
Question 60  
Could Japan please provide an account of the new principle it has integrated regarding reporting on 
matters related to cargoes in electromagnetic records?  
 
RESPONSE  
As answered in Question 8, the "new principal on cargo reporting" mentioned here is that t he 
electronic reporting of advance information on air cargo through the computer system called NACCS 
became mandatory.  
 
Page 55, Para 3.22  
 
Question 61  
Does Japan have any plans for tariffication of the 648 lines which are non -ad valorem?  
 
RESPONSE  
Japan does not have such a plan.  
 
Page 57, Para 3.23  
 
Question 62  
What is the reason behind keeping high non -ad valorem duties for Fats and oils?  
 WT/TPR/M/397/Add.1  
 
- 26 - 
 
RESPONSE  
Japan's tariff structure for fats and oils (HS code chapter 15) is set out in Japan's WTO schedule, 
which reflects the outcome of negotiation.  
 
Page 57, Para 3.24  
 
Question 63  
Kindly specify the reason behind protection of agriculture sector by using high import duties?  
 
RESPONSE  
With a huge population and limited farmland, Japan remains one of the world 's largest importers of 
food. As the food production of trade partners may fluctuate, a certain level of domestic production 
should be secured in order to address food security concerns. To this end, Japan applies import 
duties consistent with the WTO rules while importing a considerable amount of agricultural products.  
 
Page 57, Para 3.24  
 
Question 64  
The highest rates, which are out -of-quota AVE rates, are 499.7% for certain broad and horse beans 
peas, followed by 389.8%. In this regard, what is the reason behind using non -ad valorem rates 
which are promoting non -transparency in the tariff regime?  
 
RESPONSE  
Japan's tariff structure for agricultural products is fully transparent and predictable, and is set out in 
Japan's Tariff Schedule (publicl y available).  
 
Question 65  
Does Japan is considering the options to reduce non -ad valorem rates through free trade 
agreements/preferential trade agreements?  
 
RESPONSE  
It generally depends on the outcome of each trade negotiation whether customs duties, inc luding 
non-ad valorem tariffs on individual goods, are reduced.  
 
Page 58, Para 3.25  
 
Question 66  
Why Japan is protecting its food, beverage and tobacco industries by using highest average tariffs?  
 
RESPONSE  
With a huge population and limited farmland, Japan remains one of the world 's largest importers of 
food. As the food production of trade partners may fluctuate, a certain level of domestic production 
should be secured in order to address food security concerns. To this end, Japan applies im port 
duties consistent with the WTO rules while importing a considerable amount of agricultural products.  
 
Question 67  
What is the total production capacity of food, beverage and tobacco industry in Japan?  
 
RESPONSE  
According to data available in FAOSTAT, the value of agricultural production for food was 
USD 85,866  million in 2016 and that for agriculture was USD 87,344 m illion in 2016. There is no 
data available for "beverage."  
 
Question 68  
What is the export capacity of food, beverage and tobacco industry?  
 
RESPONSE  
The total export value of food and agricultural products in 2018 is 906.8 billion JPY.  
Since there is no category for the export capacity of food nor beverage, there is no data available.  
 WT/TPR/M/397/Add.1  
 
- 27 - 
 
Page 63, Para 3.36  
 
Question 69  
Kindly elaborate on the cases where Japan has used its Retaliatory tariff system?  
 
RESPONSE  
Please refer to 3.1.4.5 and footnote 33 in the Trade Policy Review Report by the Secretariat. As the 
footnote states, the most recent occasion when Japan applied a retaliatory tariff was with respect to 
certain goods originating in the United States in relation to the Byrd Amendment. Although a 
retaliatory tariff has not been applied since September 2014, Japan has notified the WTO that it 
retains the right to impose this tariff.  
 
Page 63, Para 3.39  
 
Question 70  
Does the exceptions to import prohibition applies to both natural and the juridical pers on(s)?  
 
RESPONSE  
Exceptions to some import prohibitions can apply to natural persons and juridical persons.  
 
Page 70, Para 3.61  
 
Question 71  
Japan is requested to provide the link of websites of the Animal Quarantine Service and the Plant 
Protection Station where export prohibitions in place for sanitary and phytosanitary purposes are 
available.  
 
RESPONSE  
We note this Secretariat Report, including its paragraph 3.61, was elaborated by  the WTO Secretariat 
on its own responsibility. While the TPRM  (Trade Policy Review Mechanism) provides for that the 
WTO Secretariat should seek clarification from members, this particular paragraph was added 
without consultation with government of Japan and hence it is erroneously written. The government 
of Japan confirms that there is no export prohibition for sanitary and phytosanitary purposes. Japan 
is contacting the WTO Secretariat to correct the Secretariat Report accordingly.  
 
Page 93, Para 3 .151 
 
Question 72  
India requests Japan to provide the details of changes and salient feature of the amendments made 
to its leniency programme.  
 
RESPONSE  
The amendment act of the Antimonopoly Act, which was promulgated in June 2019, introduced a 
system whic h allows the JFTC to reduce the amount of surcharges when enterprises submit 
information and documents which contribute to the fact -finding of the case, in addition to the 
reduction according to the order of application. Specifically, under the amended Ant imonopoly Act, 
JFTC will become able to reduce the amount of surcharges calculated based on the amount of sales 
of goods or services subject to cartels and predetermined rates by up to 40% for violators who apply 
for the leniency programme before the inves tigation start date, and up to 20% for violators who 
apply for the leniency programme on or after the investigation start date, in addition to the reduction 
according to the order of application.  
  The amended Antimonopoly Act has also abolished the curren t limitation on the number of 
enterprises who can apply for the leniency programme. To be specific, while five enterprises can 
apply for the leniency programme under the current system, after the revision of the Antimonopoly 
Act, all the enterprises under the investigation will have the opportunity of cooperating in JFTC 's 
investigation voluntarily.  
 
Page 105 -106, Para 3.176 -3.177  
Background  
IP is of vital importance to the economy. The Japan Patent Office (JPO ) found a correlation between 
patent rights and operating profits on sales for SMEs, which account for more than 99% of all 
businesses in Japan. Over the five -year period ending in December 2017, revenue from IP increased WT/TPR/M/397/Add.1  
 
- 28 - 
 
by over 74%, and exceeded JPY 50,0 00 billion in 2018.  
According to OECD international trade statistics, Japan ranks third, behind the United States and the 
European Union, regarding charges for the use of IP (i.e. royalties and licensing revenue). These 
charges constituted 22% of Japan's services exports in 2017. According to the Bank of Japan, Japan 
generated a trade surplus of JPY 2.6 trillion in charges for the use of IP in 2018.  
 
Question 73  
Kindly provide a complete break up in terms of different IPRs (including patent, tradem ark, 
undisclosed information among others) contribution in revenue generated from IP.  
 
RESPONSE  
Please refer to the attachment. There are no further data available.  
   
（100 million Yen ） 
  Charges for the use of intellectual property n.i.e. （a+b） 
Credit  Debit  Net balance  
2019 
(Preliminary)  51,077  28,153  22,924  
    
  Charges for the use of industrial property n.i.e.(a)  
Credit  Debit  Net balance  
2019 
(Preliminary)  45,025  10,538  34,487  
    
  Charges for the use of copyrights n.i.e.(b)  
Credit  Debit  Net balance  
2019 
(Preliminary)  6,053  17,615  -11,562  
Page 108 -109, Para 3.188 -3.189  
Background  
 
SMEs may also avail themselves of comprehensive IP Support Service Counters in all 47 prefectures, 
which provide free -of-charge assistance from experts on legal matters, branding, business 
development, agriculture, and GIs. An IP Finance Portal Site helps SMEs to evaluate the business 
potential of their IP, along with financing and management support from financial institutions. The 
Global IP Producers programme offers support for establishing and protecting IPRs overseas, and 
JPO offers SMEs an insurance s cheme, for which it pays half of the premium, which covers the cost 
of overseas IP litigation.  
 
In 2018, the JPO  established the "IP acceleration programme for start -ups", which dispatches expert 
teams of venture capitalists, business consultants, and attorneys to provide hands -on support in the 
early stages of development to selected start -ups. The JPO also offers "super -accelerated 
examination" to start -ups, so they can obtain patent rights within one month for inventions that are 
already being worked. Most recently, the JPO launched IP Base, an online community providing 
essential information on IP strategies, JPO  support, event information, and access to IP experts for 
start-ups. Start -ups can also expect to benefit from government procurement programmes, set forth 
in the 2018 IP Strategy Vision, to promote partnerships between start -ups and existing businesses.  
 
Question 74  
Kindly provide a list of measures taken (with concerned laws) by Japan to provide easy and 
affordable access of technology to SMEs.  
 
RESPONSE  
Information on Support Measures for Small and Medium -Sized Enterprises:  
Japan Patent Office (JPO) pro vides small and medium -sized enterprises with easy -to-understand 
information on the overall support measures implemented by the JPO and INPIT (National Center 
for Industrial Property Information and Training), such as the Intellectual Property Comprehensiv e 
Help Desk, the seminar on IP rights systems, reduction and exemption of patent fees, etc., the 
dispatch of global intellectual property producers, the subsidy for filing foreign applications which 
subsidizes the costs required for foreign applications, a nd support measures for overseas expansion, 
such as fee reduction systems for charges related to PCT international applications, etc. In addition, 
the JPO has opened an IP Finance Portal Site that evaluates the business potential of small and 
medium -sized enterprises utilizing IP, and introduces initiatives that will lead to financing and WT/TPR/M/397/Add.1  
 
- 29 - 
 
management support from financial institutions (IP finance). Incidentally, these support measures 
are not provided under certain laws.  
 
Page 109, Para 3.190  
Background  
Japan is adapting its IP regime and associated processes to the development of Big Data, artificial 
intelligence (AI) technologies, and the Internet of Things (IoT). Standard essential patents (SEPs), 
which are essential to implement standards in fields such as wireless communications, have become 
critical to the development and implementation of new technologies, and licences are increasingly 
sought by companies in previously distinct industries with diverse sets of technical knowledge and 
corporate cultures.  In response to increasing disputes over SEPs, Japan launched several initiatives 
during the review period.  
 
Question 75  
Has Japan come up with specific patent examination guidelines for Big Data, artificial intelligence 
(AI) technologies, and the Internet  of Things (IoT)? Please provide details.  
 
RESPONSE  
Computer software related inventions including big data, AI or IoT related inventions are examined 
in compliance with Annex B, Chapter 1 of "Examination Handbook for Patent and Utility Model in 
Japan" as well as general patent examination guidelines.  
https://www.jpo.go.jp/e/system/laws/rule/guideline/patent/handbook_shinsa/documen t/index/ap
p_b1_e.pdf . 
The JPO also provides a lot of case examples concerning AI or IoT related inventions in Annex A of 
"Examination Handbook for Patent and Utility Model in Japan".  
https://www.jpo.go.jp/e/system/laws/rule/guideline/patent/handbook_shinsa/document/index/ap
p_a_e.pdf . 
 
Page 114, Para 3.210  
Background  
Accelerated and super -accelerated examination programmes reduced average FA pendency to 
2.3 months and 0.7 months, respectively, for qualifying applications in 2018. Accelerated 
examination is available upon request for applications made by SMEs, applications that have been 
filed in more than one country, and applicatio ns for inventions that have already been put into 
practice. Accelerated examination for inventions involving environment -related technologies is under 
trial. A pilot super -accelerated examination may be requested for "highly important" applications, 
includ ing inventions already put into practice by either a start -up or an applicant who has filed for 
patent protection abroad. The JPO outsources prior art searches, plans to employ AI technology to 
improve speed and quality, and has introduced design -driven ma nagement principles to improve the 
quality of its services to users.  
 
Question 76  
What falls into "highly important ' applications? What is the procedure followed for them?  
 
RESPONSE  
"Highly important" applications are applications for inventions "that have already been put into 
practice and that are also filed in one or more other countries," or "that are applied by startups and 
that have already been put into practice." A request for  a super -accelerated examination will be 
made by submitting a form of  "Written explanation of the needs of the super -accelerated 
examination." It is necessary to describe the circumstances related to a filing of a super -accelerated 
examination, disclosures  of the prior art documents and explanations of the comparisons with the 
invention and the prior art, etc. in the form of "Written explanation of the needs of the super -
accelerated examination."  
 
Page 114, Para 3.212  
Background  
Although domestic patent applications have declined overall since 2007, applications in the fields of 
business methods, biotechnology, mechanical parts, and control/robotics experienced growth from 
2013 to 2014 (latest available data). A 2019 JPO study als o found that, although small in absolute 
terms, the number of domestic patent applications filed annually for AI -related inventions is growing 
rapidly, with a 65% increase between 2016 and 2017 alone.  
Question 77  WT/TPR/M/397/Add.1  
 
- 30 - 
 
What are the criteria 's enumerated for gran ting patents in the field of Business Methods?  
 
RESPONSE  
No special criteria are required for granting patents in the field of Business Methods.  
Note, if the business methods depend on computer software technologies, the business methods as 
computer softwa re related inventions are examined in compliance with Annex B, Chapter 1 of 
"Examination Handbook for Patent and Utility Model in Japan" as well as general patent examination 
guidelines.  
(See the answer to the question 75)  
 
Page 115 -116, Para 3.216  
Backgro und 
Japan's approach to parallel imports and compulsory licensing did not change during the review 
period. Japan maintains that parallel imports promote price competition, and submits that the Anti -
monopoly Act prohibits their obstruction in certain circum stances. Section 92 of the Patent Act can 
permit compulsory licenses for the improvement of inventions, but its application has been limited 
by a bilateral agreement with the United States, in effect since 1995. No legislative or regulatory 
action was take n on the proposal in the Intellectual Property Strategic Programme 2017 for an 
alternative dispute resolution system for SEPs, which some viewed as introducing compulsory 
licences.  
 
Question 78  
In Japan, are parallel imports allowed for all the IP rights? Please indicate the rights for which parallel 
import are not allowed.  
 
RESPONSE  
In Japan, parallel imports are not always allowed for all the IP rights in the same manner. Regarding 
patent rights and trademark rights, parallel imports could be allowed if they fulfill certain conditions. 
Regarding copyrights, parallel imports are allow ed except in certain cases.  
 
 
Page 116, Para 3.218  
Background  
Except for an adjustment to the calculation of infringement damages, discussed in Section 3.3.7.12, 
there were no significant amendments to the Utility Model Act or the process for registering a n UM, 
during the review period. Applications and registrations of UMs continued their decades -long decline. 
Almost all applications lead to grant (Table 3.27) and are registered faster than patents since there 
is no substantive examination.  
 
Question 79  
Has there been any study by Japanese Govt. authorities to analyse reasons behind the decade long 
decline in application and registration of utility patents even when almost all applications lead to 
grant and are registered faster than patents? Kindly provide  details.  
 
RESPONSE  
Patents are registered through substantive examinations, and the patent term is 20 years from the 
filing date. On the other hand, utility models are registered without substantive examinations, and 
the term of the right is 10 years from the filing date.  
In terms of the enforceability,  Applicants may prefer patent to utility model.  
 
Page 117, Para 3.226  
Background  
Although the number of trademark applications submitted to the JPO decreased slightly in 2018, the 
number of applications had been growing at annual rates from 6% -18% since 2014 (Table 3.29). 
Non-traditional trademarks, including motions, holograms, colours, sounds, and positions, have 
been registrable in Japan since 2015. As at December 2018, non -traditional trademarks had b een 
registered, from 1,746 applications (mostly combinations of colours and devices/words).  
 
Question 80  
Kindly provide the details about the type of non -traditional trademarks given including sound, smell 
and touch marks.  
The Japanese trademark system protects five types of non -traditional trademarks introduced in WT/TPR/M/397/Add.1  
 
- 31 - 
 
2015: sound marks, color per se marks, position marks, motion marks, and hologram marks.  
 Sound marks  
Marks consisting of music and/or sounds, which are recognized by auditory perception  
 Color per se marks  
Marks consisting solely of a single color or a combination of colors  
 Position marks  
Marks consisting of characters and/or figures, which are placed on products in specific positions  
 Motion marks  
Marks, in which characters and/or figures change as time passes  
 Hologram marks  
Marks consisting of characters and/or figures which display different, changing images depending 
on the angle at which they are view ed 
In addition, smell and touch marks are not protected in Japan.  
 
Page 119, Para3.236  
Background  
The Unfair Competition Prevention Act (UCPA) protects trade secrets and prohibits unfair 
competition. A METI study group, tasked with identifying an IP system  that is responsive and 
supportive of the Fourth Industrial Revolution, reported, in 2017, that then -existing measures were 
insufficient to prevent the unfair use of data. Accordingly, 2018 amendments to the UCPA, which 
took effect on 1 July 2019, establis h civil remedies for the wrongful acquisition, disclosure, and use 
of "data for limited provision" – information that is valuable to business and society but does not 
qualify as a trade secret or for copyright protection. This includes technical or busines s information 
accumulated in a reasonable amount, managed by electronic or magnetic means, and regularly 
provided to specific persons. The law is reportedly the first in the world to attempt to protect Big 
Data. The METI published new Guidelines on Protect ed Data on 23 January 2019, which offer 
practical guidance on the amendments, including examples of targeted behaviours.  
 
Question 81  
Whether Unfair Competition Prevention Act (UCPA) has settled the question of ownership of data? 
Whether raw data also come s under the protected data under the statute? Kindly provide details.  
 
RESPONSE  
The UCPA  does not stipulate an ownership of data. In order to develop an environment where data 
can be exchanged with confidence, the UCPA defines "protected data" as data that satisfies three 
requirements, that is, "limited provision", "electromagnetic management " and "significant 
accumulation". Also, the UCPA defines unauthorized acquisition, use and disclosure of "protected 
data" as unfair competition and provides civil measures such as claims for injunctions and claims for 
compensation for loss or damages again st unauthorized acquisition, use, disclosure, etc. of protected 
data.  
Raw data such as machine operation data or consumption trend data could be "protected data" as 
long as the data satisfies the above three requirements and claim for injunctions and comp ensation 
against unfair competition of "protected data" under the UCPA is available.  
 
The definition of "protected data" is as follows:  
Article 2(7) of the UCPA  
The term "protected data" as used in this Act means technical or business information that is 
accumulated in a reasonable amount by electronic or magnetic means (meaning an electronic form, 
magnetic form, or any other form that is impossible to perceive through the human senses alone; 
the same applies in the following paragraph)  as information provided to specified persons on a 
regular basis and that is managed (excluding information that is kept secret).  
 
Page 120, Para 3.239 -3.240  
Background  
The Copyright Act enumerates an exclusive list of circumstances in which unauthorized u se is 
permissible (rights restrictions provisions). New flexible limitations were introduced, to respond to 
digitization and networking. The provisions aim to promote information technology innovation and 
the development of AI technologies by permitting, i nter alia, certain unauthorized uses that either 
do not impair or cause only minor harm to the copyright owner's interest and further a service or 
other function that uses Big Data. More specifically, the amendments permit the free use of a 
copyrighted wor k when necessary to (i) test technology for the use of the copyright work; (ii) analyse 
information; or (iii) process information using a computer without human recognition. Unauthorized WT/TPR/M/397/Add.1  
 
- 32 - 
 
use is also now permitted, as required, to ensure the smooth or effic ient use of a copyrighted work 
in a computer. Minor use as part of a computer's information processing and provision of 
corresponding results also does not require authorization.  
The revision also facilitates the use of copyrighted materials in computerize d education, promotes 
the use of copyrighted works in archives, and enhances opportunities for persons with disabilities to 
access information. Copyright term was extended from 50 years to 70 years after the author's death.  
 
Question 82  
What flexibilities have been introduced to ensure public accessibility of copyrighted works in order 
to balance with the significant increase in duration of protection of copyrighted works? Kindly provide 
details.  
 
RESPONSE  
In order to protect copyrights and neighboring rights appropriately and encourage the fair 
exploitation of copyrighted works, for example, from the view point of promoting the use of orphan 
works, Japan repeatedly improves the compulsory license system for  the legal use of the works 
where the copyright owner is unknown, etc.  
 
Page 121, Para 3.244  
Background  
Counterfeiting and piracy continue to cause meaningful losses to the Japanese economy. A 2018 
fiscal year report commissioned by the JPO estimates JPY 1 11 billion as the total profit lost by all 
industrial property right holders, based upon survey data. The METI reports recent signs of 
improvement. During the review period, the JPO continued to conduct annual surveys on losses 
suffered by Japanese enterpr ises caused by counterfeiting and piracy. 24.1% of respondents 
reported losses in the 2018 report, an increase of 1.7% over the prior year. Online piracy, in 
particular, has been referred to as a "rampant problem" that could significantly impair the rights  of 
copyright holders. The Content Overseas Distribution Association estimates that piracy costs 
Japanese publishers JPY 400 billion per year.  
 
Question 83  
What measures have been undertaken by Japan to counter the counterfeit and pirated goods 
distributed through e -commerce platforms? Kindly explain.  
 
RESPONSE  
One of the characteristic countermeasures for online IPR  infringement in Japan is a private sector 
initiative; because EC platformers do not infringe any IPR directly, it is difficult to impose 
responsibility for management of internet IPR infringement on them from public initiative as for now. 
For example, an IPR protection group, consisting of EC platformers and brand owners, voluntarily 
patrols the EC site, deletes counterfeit and pirated sites and reports to the relevant authorities. 
Recently, public -private collaboration in order to combat trafficking in co unterfeit and pirated goods 
has become more common.  
 
Page 119, Para3.232  
Background  
The 2014 Act on Protection of the Names of Specific Agricultural, Forestry and Fishery Products and 
Foodstuffs introduced a sui generis system of protection for GIs of food s, beverages, and agricultural 
and marine products. It prohibits direct or indirect use of a GI on a non -originating product  and 
applies the level of protection required by Article 23 of the TRIPS Agreement to all registered GIs 
(not only wine and spirits) . The Act was amended in 2016 and 2018 to conform with Japan's 
international commitments.  
 
Question 84  
Please indicate whether GI protection is given to goods other than agriculture goods. Please give 
details whether this is done through a sui generis prot ection?  
 
RESPONSE  
GI protection for non -agricultural forestry and fishery products such as handicrafts is not provided 
through a sui generis system in Japan.  In the meantime, the Unfair Competition Prevention Act 
provides legal means, which are based on th e Article 22.2 of the TRIPS Agreement. The Act provides 
civil and criminal means against an act, as one of the types of unfair competition, which misleads 
the public as to the place of origin, quality, content etc. of goods (see Article 2(1) (20) of the Ac t). WT/TPR/M/397/Add.1  
 
- 33 - 
 
 
Article 2(1) (20)  
The term "Unfair Competition" as used in this Act means any of the following:  
(20) the act of using an indication on goods or services, in an advertisement thereof, or in trade 
documents or electronic correspondence thereof, in a way  that is likely to mislead as to the place of 
origin, quality, content, manufacturing process, purpose, or quantity of the goods, or the quality, 
content, purpose, or quantity of the services, or the act of transferring, delivering, displaying for the 
purpose of transfer or delivery, exporting, importing, or providing through a telecommunications 
line goods so indicated, or the act of providing services so indicated  
 
Background  
Many countries are introducing mandatory data sharing requirements on the private sector, 
especially in the e -commerce sphere, to spur domestic innovation. The aim of this question is to get 
more information about the Japanese framework on this (if any).  
 
Question 85  
Does Japan have any mandatory data -sharing requirement between  businesses? If yes, Japan is 
requested to share the relevant details of such requirement(s).  
 
RESPONSE  
Japan has no mandatory data -sharing requirements between businesses to spur domestic 
innovation.  
 
Page 121, Para 3.246  
Background  
With respect to import seizures, Japan Customs statistics do not distinguish between seizures 
undertaken following complaint and ex officio. The number of total annual cases fluctuated in recent 
years. The number of articles seized annually had also been declining since 2 014, before nearly 
doubling in 2018, following the seizure of a large shipment of pharmaceuticals (Chart 3.8). Most 
cases and articles relate to trademark infringement, although the numbers related to patents and 
designs grew during the review period. Bags , apparel, and footwear accounted for more than half of 
import seizure cases, but pharmaceuticals, housewares, and appliances were seized in the greatest 
quantities. More than 80% of the cases and articles were traced to China. Advances in cross -border 
e-commerce increased the rate of infringing goods imported by post  
 
Question 86  
Japan is requested to provide the following details as per document CAC/GL 25 -1997 of the Codex 
"GUIDELINES FOR THE EXCHANGE OF INFORMATION BETWEEN COUNTRIES ON 
REJECTIONS OF IMPO RTED FOOD"  on the refusals and seizures of all goods:  
1. Which is the Japanese web site providing detail of refusals and seizures, as directed by the 
guideline of Codex?  
2. How different is the Japanese web page, in terms of content and information, does it prov ide the 
value and quantity of such imported consignments?  
3. Is it similar to others like OASIS, RASFF and RAPEX?  
India requests the availability of such information on an urgent basis for analysing the market access 
under the Japan -India CECA – in tariff li nes wherein the Japan has provided preferential access.  
 
RESPONSE  
1. Please see the following website and its section of Recent Cases of Violation of the Food Sanitation 
Act from the view of the safety of imported foods.  
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/kenkou_iryou/shokuhin/yunyu_kanshi/index_0
0017.html.  
2. While the website above does not include the quantity of each imported food of violation of the 
Food Sanitation Act, the following website (Statisti cs of Imported Foods Monitoring) provides total 
quantity of foods of violation by each country per fiscal year (2018 Fiscal Year: 1 April 2018 – 
31 March 2019). https://www.mhlw.go.jp/content/0005 71850.pdf.  
However, Japan does not have information on value of such consignments of violation from the view 
of the safety of imported foods.  
3. If one needs to see the similarity of other like OASIS, RASFF and RAPEX, please see the above 
websites.  
Page  11, Para 7  
Background  WT/TPR/M/397/Add.1  
 
- 34 - 
 
Since 2017, there have only been minor changes to Japan's customs procedures. These include the 
introduction of: tougher penalties for failure to obtain the required import/export permissions; a new 
principle on cargo reporting; and flexibility to authorized economic operators to lodge their 
import/export declarations at any customs office, not just the one where their imports/exports are 
stored.  
 
Question 87  
Japan is requested to provide the exemptions provided for the firms who fail  to obtain the required 
import/export permissions.  
1. Has the implementation of the regulation analysed?  
2. Is this regulation a unique feature of Japanese custom procedure?  
3. Is the regulation forcing Japanese firms to perform/perish?  
4. Has this modification (since 2017) been analysed in terms of improvements or enhanced 
inventory management?  
India requests Japan to provide the following information and concern raised.  
 
RESPONSE  
(1) The effects of the amended provision have been analyzed.  
(2) The amendment to the Customs Law in 2018 raised the amount of fines from "not exceeding 
5,000,000 yen" to "not exceeding 10,000,000 yen or five times the value of goods pertaining to  the 
offence" for those who fail to get Customs clearance for export/import goods. It is not sure whether 
this provision is unique to Japan or not.  
(3) Any persons, including Japanese companies, who fail to get Customs clearance for export/import 
goods are  subject to this penalty.  
(4) The amendments to the Customs Law since 2017 do not relate to inventory management.  
 
Page12, Para 17  
Background  
Agricultural policy goals, inter alia, include making agriculture a growth industry, with greater 
private -sector p articipation, increasing exports, and reaching certain self -sufficiency targets. 
Support to the agricultural sector (0.84% of GDP in 2018) remains relatively high and was estimated 
to be over double the OECD average.  
 
Question 88  
Japan is requested to pro vide justification to maintaining a high level of support to farmers and the 
agricultural sector in general.  
1. What is the relevance of the agricultural sector in the GDP (2017) when it accounts for only 1% 
and the manufacturing (30%) and lastly the service sector (69%)?  
2. Is the Japanese agricultural sector efficient? Are the Japanese fearing food security concerns?  
3. Are all the support provided to the agricultural notified to the WTO under the AOA?  
Please provide answers to the following two questions.  
 
RESPONSE  
1. With a huge population and limited farmland, Japan remains one of the world 's largest importers 
of food. As the food production of trade partners may fluctuate, a certain level of domestic production 
should be secured in order to ad dress food security concerns. To this end, Japan applies domestic 
supports consistent with the WTO rules while importing a considerable amount of agricultural 
products.  
2. In accordance with various socio -economic changes, there have been continuous effort s to seek 
efficiency in agriculture.  
3. All the necessary notifications have been made as required in the WTO rules.  
 
Document –WT/TPR/S/351  
 
Page 108, 109, Para4.81, 4.85 -4.91 
Background  
Regarding banking, the 1947 Banking Act and its subordinated legislation were amended in June 
2013, with entry into force of the amendments in April 2014. Some of the amendments deal with 
the regime applicable to domestic banks or to all banks, while others are specific to foreign banks. 
The amendments specific to foreign banks are discussed in the subsequent paragraphs 4.85 -4.91. 
Question 89  WT/TPR/M/397/Add.1  
 
- 35 - 
 
Japan is requested to inform how the discriminatory amendments specific to foreign banks are 
compatible with its GATS National Treatment commitments in Financial Se rvices.  
 
RESPONSE  
Japan understands India 's question 89 is the same question which Japan received from India, as 
question 37, in the previous TPR process (Japan TPR 2017). For your information, Japan 's previous 
response is as follows:  
 
"The partial relaxat ion of requirements in respect of agency services and intermediary services (para. 
4.85) is to cover a domestic bank conducting business as an agent or intermediary of a foreign bank 
outside of Japan. The revised licensing standards (para. 4.87 and 4.88) a re equivalent to the 
standards for domestic banks. The information obligation newly imposed (para. 4.89) is based on 
the fact that enrolment of foreign bank branches are not enrolled into the deposit insurance system 
and it is necessary to specify informat ion on the risks for depositors in the unlikely event that a 
foreign bank fails. The obligation to maintain assets in Japan (para. 4.90) is equivalent to the one 
for domestic banks. The Act on Special Measures for Reorganization (para. 4.91) has been appli ed 
to domestic banks, and the revision in 2013 extended the scope of application to foreign bank 
branches.  
Therefore, the amendments described in para 4.85 to 4.91 are consistent with the GATS National 
Treatment commitment."  
 
Page 112, Para 4.96  
Background  
Regarding the mobile interconnection regime, based on the Japan Revitalization Strategy (Cabinet 
decision in June 2013) and the report by the Information and Communications Council (December 
2014), the Telecom Business Act was amended in May 201 5 (with entry into force of the 
amendments in May 2016) so as to promote fair competition and encourage the entry of new mobile 
virtual network operators (MVNO). The amendments impose an unbundling obligation on mobile 
network operators, which under the pr evious MIC guidelines could decide to what extent they would 
interconnect, and which expenses would be charged at production costs.  
 
Question 90  
Japan is requested to provide the details of the unbundling obligations.  
Japan is also requested to inform if there exist any limitations pertaining to data localization, server 
localization and access to source code.  
 
RESPONSE  
In the Japanese mobile tele communications market, when mobile network operators (MNOs) to 
which radio waves are allocated install equipment of certain scale, MNOs are obliged to formulate 
"general conditions of contracts for interconnection" on interconnection charges and the terms and 
conditions of interconnection for connecting with the equipment to notify the Minister of Internal 
Affairs and Communications in advance. MNOs are also obliged to uniformly apply the filed "general 
conditions of contracts for interconnection" when conc luding a connection agreement with other 
carriers.  
Interconnection charges shall be calculated as not exceeding "a reasonable cost plus reasonable 
profits under efficient management." The Ministry of Internal Affairs and Communications conducts 
verificatio n on the charges based on the calculation, and this process ensures the appropriate level 
of calculation.  
For unbundling, which enables competitors such as MVNOs to use only the necessary part of network 
by subdividing it, the setting of "unbundling functi on" is stipulated.  
In the MVNO guidelines, "unbundling function" is required to be set when the following requirements 
are satisfied.  
① There is a request from another carrier regarding unbundling of functions.  
② Unbundling is technically feasible.  
③ Unbun dling does not place undue financial burden on Category II designated operators.  
④ "Unbundling function" is a function related to services that are highly necessary and important.  
At present, "unbundling function" includes the following functions according  to the ministerial 
ordinance.  
① Voice transmission switching function  
② Data transmission switching function  
③ Number portability transfer function  
④ Short message transmission switching function  WT/TPR/M/397/Add.1  
 
- 36 - 
 
The calculation method for "unbundling function" is determi ned by the ministerial ordinance, in which 
it is required to set interconnection charges for each function according to this method.  
With regard to access to source code, Japan has regulatory measures which may require access to 
source code in some areas i ncluding competition policy, financial services and medical devices.  
 
Page 116, Para 4.107  
Background  
Public assistance to the sector, including by local governments, is relatively limited. There are no 
tax incentives for film production, and subsidies by local film commissions are minimal, except to a 
certain extent for those provided by the Okinawa film commission.  
 
Question 91  
Japan is requested to provide the details of the subsidy schemes/programs available for the Audio -
Visual Services. W hich of these schemes/programs are available only to domestic companies and 
not to foreign companies?  
 
RESPONSE  
Regarding the promotion of Japanese content abroad, Ministry of Economy, Trade and Industry 
(METI) provides the subsidy for subtitles and participation in foreign markets. This subsidy is only 
available to domestic companies and their overseas subsidiaries.  
The Agency for Cultural Affairs (Bunka -cho) provides subsidies to production of Japanese films and 
International co -production films (a total of \740 million, FY2019), and also subsidizes subtitles and 
participation in foreign film festivals. These programs are only available to domestic companies.  
 
Page 122, Paragraph 4.133  
Background  
Chart 4.15 describes the evolution over the last decad e of so -called "registered foreign personnel 
with medical status", i.e. foreign personnel having qualified either through Japanese examinations 
or through recognition and that have remained in Japan to practice.  
 
Question 92  
Japan is requested to provide t he details of the process and conditions for recognizing foreign 
medical degrees.  
 
RESPONSE  
Advanced clinical training is a system that aims to contribute to the progress of international 
exchange in the medical industry and the improvement of medical leve ls of developing countries. 
This system specially permits foreign medical practitioners visiting Japan for medical training to 
perform medical treatment on this training in order to completely achieve its objective.  Foreign 
medical practitioners are permitted to perform medical treatment services under the tuition and 
supervision of clinical instructors at hospitals or clinics designated by the Minister of Health, Labour 
and Welfare. *Foreign medical practitioners: Physicians, Dentis ts, Midwives, Nurses, Medical 
Radiology Technicians, Dental Technicians, Clinical Laboratory Technicians, Physical Therapists, 
Occupational Therapists, Orthoptists, Clinical Engineers, Prosthetists, Speech Therapists, Emergency 
Life-saving Technicians.  "Medical Services" is the status of residence regarding medical occupations 
that must not be undertaken without Japanese legal qualifications. In particular, the status of 
residence of "Medical  
Services" is granted to foreign nationals whose activities are to  engage in medical treatment 
services, with the legal qualifications as physicians, dentists, pharmacists, public health nurses, 
midwives, nurses, assistant nurses, dental technicians (shikaeiseishi), medical radiology technicians, 
physical therapists (rig akuryouhoushi), occupational therapists (sagyouryouhoushi), orthoptists 
(shinoukunrenshi), clinical laboratory technicians (rinshoukougakugishi), or prosthetists 
(gishisougushi).  
On the other hand, advanced clinical training (rinshoushuren), in which forei gn medical practitioners 
or foreign dental practitioners with foreign qualifications equivalent to Japanese physicians or 
dentists engage with permission from the Minister of Health, Labour and Welfare of Japan, does not 
fall under the category of the stat us of residence of "Medical Services."  
 
Page 129, Para4.151  
Background  
In both instances the authorities will check the fulfilment of the technical requirements (Article 27 
of the Medical Treatment Act). Even if the planned clinic satisfies the technical r equirements, the WT/TPR/M/397/Add.1  
 
- 37 - 
 
authorization will be granted only if the number of beds in hospitals and clinics in the region 
concerned does not exceed the standard fixed by the prefecture government (Articles 30 -4 and 30 -
7 of the Medical Treatment Act). This standard applies to both Japanese -owned and foreign -owned 
clinics.  
 
Question 93  
Could Japan inform the details of the standards fixed by the prefecture government for clinics?  
 
RESPONSE  
When establishing a clinic, the establisher shall notify the prefectural govern or of the area in which 
the clinic is located within ten days of its establishment. The essential items include the name and 
address of the establisher, the name of the clinic, the location of the clinic and so on.  
 
Page 167, Para4.163  
 
Question 94  
India requests Japan to explain the specific expansion to the final Basel III (commonly known as 
Basel IV) standards to cover a wider range of capital requirements by 2022.  
 
RESPONSE  
Japan has been working on implementing Basel standards as shown in the pr ogress report issued 
by BCBS.  
For further details, please look at para 4.163 and para 4.164 in the Secretariat report.  
 
Page 168, Para 4.166  
Background  
Regarding e -payments, Japan has been relatively slow to switch to cashless payments, and credits 
cards,  for instance, are much less used than by other OECD countries. However, this is now changing 
very rapidly, due to e -payments (notably by mobile phones) and more marginally to crypto -
currencies. The Government set an objective of 40% of cashless payments b y 2025.  
 
Question 95  
Japan is requested to provide details of regulations pertaining to e -payments and cryptocurrencies. 
What are the steps taken by it to increase cashless payments?  
 
RESPONSE  
Regarding the e -payments, while there is no sole definition of e -payments, business  operators have 
to comply with the relevant regulations subject to its type of business. The regulations include the 
following:  
[E-money] Under the "Payment Services Act", e -money (electronic money) and issued for 
prepaid/pre -loaded values fall within the category of prepaid payment instruments.  
Prepaid payment instruments are classified into the following two types:  
(1) those which can be used for purchase of goods and services only from the issuer of prepaid 
payment instruments (prepaid payment instrument s for own business); and  
(2) those other than (1) (prepaid payment instruments for third -party business).  
*If the total amount of the outstanding balance of the prepaid payment instruments for one 's own 
business prescribed in (1) exceeds 10 million yen on the record date (on March 31 and September 
30 every year), the issuer shall give notification to the Local Finance Bureau within two months from 
the record date.  
*The issuer of the prepaid payment instruments for third -party business prescribed in (2) shal l 
register with the Local Finance Bureau in advance.  
[Funds Transfer Service ] 
When a person/entity engages in exchange transactions equivalent to one million yen or less in the 
course of trade, registration as a funds transfer service provider is required.  For exchange 
transactions exceeding one million yen, a license for banking business pursuant to the "Banking Act" 
is required.  
Funds transfer service providers are subject to certain regulations, particularly those in which they 
are required to preserve n ot less than 100% of the outstanding amount of funds that are in the 
middle of being transmitted or are pending by means of deposits.  
 WT/TPR/M/397/Add.1  
 
- 38 - 
 
Regarding regulations about crypto assets (cryptocurrencies), the "Payment Services Act" stipulates 
that the following bu siness activities are considered as "virtual currency exchange services," in which 
a service provider is required to register with the JFSA:  
(1) Exchange between a virtual currency and a fiat currency, or exchange between a virtual currency 
with another vi rtual currency;  
(2) Intermediary, brokerage, or agency services for the business activities prescribed in (1); or  
(3) Management of users ' money or virtual currency in connection with the business activities 
prescribed in (1) or (2).  
For user -protection an d anti -money laundering, a registered virtual currency exchange service 
provider is under obligations including, but not limited to, the following:  
- To provide prior explanation and information to service users about the characteristics of a 
virtual currency, such as facts that (i) it is not a fiat currency; (ii) it is not backed by a fiat 
currency and its value may fall below the purchased price; and (iii) its value is not guaranteed;  
- To establish a system risk management framework;  
- To manage the mon ey and virtual currency deposited by service users separately from its own 
money and virtual currency, as well as to undergo an audit by a certified public accountant or 
an audit firm, with regard to the state of segregation management; and  
- To perform the obligations under the "Act on Prevention of Transfer of Criminal Proceeds" such 
as customer identification at the time of transaction, preparation and keeping of transaction 
records, and reporting of suspicious dealings to the authorities.  
Whether certain electronic data falls under "Virtual Currency" under the "Payment Services Act" will 
be determined on a case -by-case basis pursuant to Article 2 (5) of the "Payment Services Act." 
Please look at para 4.4 of WT/TPR/G/397 for further details on recent regula tory changes.  
The Japanese government introduced a new policy, "Cashless Payment Promotion Program," which 
provides support to small and mid -sized business operators by giving points back to consumers who 
use cashless payments at these small and mid -sized business operators during a certain period after 
the consumption tax increase on October 1, 2019.  
 
Page 168, Para4.167  
Background  
Examples of smartphone -based e -payment apps using QR codes include Line Pay by a messaging 
company, which launched its code payment service in June 2018; J -Coin Pay, launched by Mizuho 
Bank in cooperation with 56 banks in March 2018 and which has a target of 6.5 million or more users 
in five years; Rakuten Pay, developed by an Internet company; and PayPay, a joint venture between 
a mobile operator, Softbank, and an Internet company, Yahoo!Japan. Some foreign operators, such 
as Paypal, have registered, and o perate in Japan.  
 
Question 96  
Kindly inform what are the conditions for entry and operations of foreign players for e -payment 
services? Are there any discriminatory barriers?  
 
RESPONSE  
Please refer to Japan 's response to question 95 for registration requi rements for entry of relevant 
business. There are no discriminatory barriers against foreign companies for the entry.  
 
Page 170, Para 4.183  
Background  
Consumer protection rules were enhanced and strengthened by an amendment of the 
Telecommunication Business Act, promulgated in May 2016. New obligations were introduced, such 
as the issuing of documents after the signing of a contract, the initial contract cancellation system, 
the prohibition of mis -statement, the prohibition of conti nued solicitation, and the provision of 
guidance to agents. The Ministry of Internal Affairs and Communications (MIC) has been actively 
monitoring the implementation of these new rules, notably through regular meetings of the 
Consumer Protection Rules Moni toring Study Group, established under the aegis of the ICT Safety 
and Security Study Group.  
 
Question 97  
Has Japan come up with specific regulations for unsolicited mails and messages? If yes, how 
effective are these regulations?  
 
RESPONSE  
Yes, Japan has.  WT/TPR/M/397/Add.1  
 
- 39 - 
 
In 2008, Japan revised the Act on Regulation of Transmission of Specified Electronic Mail 
(Enforcement date: December 1, 2008).  
Article 3 of the Act provides that, when sending electronic mails as a means of advertisement for 
their own or other 's sales act ivities, in principle, the sender shall not send the electronic mails except 
when a person has notified the sender of the request or the consent to send the mails prior to the 
transmission thereof.  
Since this revision, the number of unsolicited electronic mails has been, by and large, on the decline 
through warnings and ordering measures based on the Act against the violators.  
 
Page 174, Para 4.201  
Background  
The requirements for application for a licence are quality -based. The applicant company must 
guaran tee the protection of secrecy of correspondence and present an adequate business plan. 
Needs are assessed on the basis of the estimate of business revenues. There are geographical 
limitations on delivery within three weeks. Permission to operate is given b y the MIC and is 
perpetual. As at July 2019, 538 operators were licensed, none of them foreign. Their total sales 
amounted to JPY  19.3 billion in FY2018.  
 
Question 98  
Japan is requested to inform whether foreign service providers are allowed to provide suc h kind of 
services? Are there any discriminatory barriers?  
 
RESPONSE  
There are no restrictions on foreign investment under the Act on Correspondence Delivery by Private 
Business Operators, thus, foreign service providers can also participate in the market with the 
necessary permission as specified in the Act.  
 
Page 174, Para 4.201  
 
Question 99  
Can Japan explain the reason behind the fact that out of 538 operators licensed, none of them is 
foreign?  
 
RESPONSE  
Since there are no restrictions on foreign participation, whether or not to participate in the business 
is solely based on the business decision of each operator.  
 
Page 177, Para 4.224  
Background  
The second objective of the third Basic Plan on Ocean Policy is to strengthen coastal shipping 
operators, to develop advanced coastal ships, and to secure a sufficient number of national 
seafarers, in line with the June 2017 MLIT Plan for the Future of Coastal Shipping. The Plan sets the 
target of increasing the average coastal tonnage of cabotage v essels from 715 tonnes in FY2015 to 
858 tonnes in FY2025. The Coastal Shipping Tentative Measures Programme/Scrapping Incentives, 
instituted in FY199892 and the Coastal Shipping Joint Ownership Scheme under the Japan Railway 
Construction, Transport and Technology Agency (JRTT)93, instituted in 1957, remain unchanged. The 
Basic Plan on Ocean Policy also foresees the maintenance of the present cabotage regi me, i.e. the 
reservation of the national flag, save exceptions foreseen in the Friendship Commerce and 
Navigation treaties with Denmark, the United Kingdom and Norway, or under reciprocity conditions.  
 
Question 100  
Japan is requested to inform if it provid es training facilities for foreign seafarers and are there any 
bilateral agreements in this regard that Japan has signed.  
 
RESPONSE  
Japan does not provide any training facilities only for foreign seafarers and has no bilateral 
agreement in this regard.  
 
Page 178, Para 4.230  
 
Question 101  
Can Japan provide the basis /selection criteria by which it selects the operators of container terminal?  WT/TPR/M/397/Add.1  
 
- 40 - 
 
 
RESPONSE  
A company must meet requirements (i) - (iv) to be designated as a port operating company . 
(i)  the business content for operation of the group of wharves must be in conformity with the 
 port planning of the container hub port;  
(ii) the company must have an appropriate and reliable plan for the business of operating the 
 group of wharves, beyond as s et forth in the preceding item;  
(iii) the company must have a sufficient financial basis to operate the group of wharves;  
(iv) if the company operates a wharf at the container hub port that is not a part of the group of 
 wharves, its integrated operation o f the wharf and that group of wharves as one unit must 
 contribute to the efficient operation of the group of wharves at the container hub port.  
 
Page 188, Para 4.275  
Background  
Similarly, there are no GATS -type restrictions on e -commerce. There is no specific general regulatory 
framework for e -commerce. The main relevant laws deal with consumer protection and e -payments. 
The most significant among them is the Act on Special Provisions to the Civil Code on Electronic 
Consumer Contracts and Electronic Ac ceptance Notice (Act No. 95 of 29 June 2001). This Act 
provides special provisions to the Civil Code (Act No. 89 of 1896) in cases where there are certain 
mistakes in the elements comprising an electronic consumer contract, or where an electronic 
acceptanc e notice is dispatched by a consumer under a contract made at a distance.109 The 
Consumer Contracts Act (Act No. 61 of 12 May 2000) permits a consumer to rescind his/her intention 
to offer or accept a contract when s/he has misunderstood, or was distressed  by, certain acts of the 
business operator. It also nullifies any clauses (in whole or in part) that exempt business operators 
from liability for damages, or that otherwise unfairly harm the interests of consumers.  
 
Question 102  
Japan is requested to infor m about the protection of consumers doing online transactions. Are the 
grievance mechanism and dispute resolution available online?  
 
RESPONSE  
The Cross -border Consumer center Japan (CCJ) operated by the National Consumer Affairs Center 
of Japan supports th e resolution of disputes over transactions between Japanese consumers and 
businesses outside Japan. Japanese consumers can file complaints to CCJ online.  
 
Page 189, Para 4.278  
Background  
Legal services accounted for around 0.1% of GDP in 2017. There are over 36,000 lawyers 
(bengoshi), employed mostly in small -scale firms. The Attorney Act of 1949 grants them the 
exclusive right to provide legal services, unless explicitly stated otherwise. However, their right to 
appear in court is shared under certain co nditions with some other legal professions, such as judicial 
scriveners.  
 
Question 103  
Japan is requested to provide details of the MRAs signed for recognition of qualification and 
experiences pertaining to legal services.  
 
RESPONSE  
There are no MRAs for Attorneys -at-law (Bengoshi) so far.  
 
  WT/TPR/M/397/Add.1  
 
- 41 - 
 
CHILE  
WT/TPR/S/397 – Japón (informe de Secretaría OMC)  
 
RESUMEN  
Párrafo 19, página 14  
"La contribución del sector de las industrias extractivas al PIB y al empleo se ha mantenido en niveles 
mínimos (0,1% en 2017). La explotación de los recursos minerales se realiza en el marco de 
acuerdos de concesión. El Japón importa todavía cerca del 92%  de su suministro energético, por lo 
que sigue siendo vulnerable a las fluctuaciones de los precios mundiales. El Plan Estratégico de 
Energía del Japón para 2018 está llamado a incrementar la proporción de energía renovable de 
producción local (incluida la  energía nuclear) en el suministro total, que pasaría del 12% de 2017 a 
un 24% en 2030, a restablecer la capacidad nuclear, a cumplir los objetivos nacionales de reducción 
de las emisiones de gases de efecto invernadero, a desarrollar vehículos eléctricos y de hidrógeno, 
a promover la autonomía energética de las viviendas y a aumentar la eficiencia energética, entre 
otros objetivos. Durante el período examinado, el Japón ha proseguido la liberalización y la reforma 
de los sectores de la electricidad y el ga s. Se ha liberalizado por completo la entrada de ambos 
sectores en el mercado minorista y está en marcha la siguiente fase, que consiste en la 
desagregación de los servicios públicos regionales integrados verticalmente. Los precios al por menor 
de la elect ricidad siguen estando regulados".  
 
Pregunta  1 
El párrafo 19 menciona objetivos del Plan Estratégico de Energía 2018, entre los cuales se encuentra 
desarrollar vehículos eléctricos y de hidrógeno. Al respecto, Chile agradecería a Japón compartir más 
información respecto a las políticas, estrategias, acciones, y metas que ha diseñado para el 
desarrollo de vehículos de hidrógeno.   
 
RESPONSE  
The target for the number of Fueled Cell Vehicles (FCV) is mentioned in Basic Hydrogen strategy 
which was formulated in 2017. To achieve the target, cost target is mentioned in The Strategic Road 
Map for Hydrogen and Fuel Cells which was revised in March 2019. In addition, technology 
development items are specified in Strategy for Developing Hydrogen and Fuel -Cell Technologies 
which was formulated in September 2019.  
 
2 REGÍMENES DE COMERCIO E INVERSIÓN  
2.1 Marco General  
Párrafo 2.3, páginas 35 -36 
"En el marco de la estrategia de ejecución del programa "Abenomics" se está aplicando la Estrategia 
de Revitalizació n del Japón de 2016. Esta lleva aparejadas reformas encaminadas a: impulsar nuevos 
mercados prometedores; gestar una revolución de la productividad para reducir las limitaciones de 
oferta y los problemas de inminente escasez de mano de obra; y mejorar la c apacidad de las 
personas para facilitar la transformación industrial. Se están llevando a cabo las siguientes 
iniciativas: la puesta en marcha de los 10 proyectos estratégicos de cooperación público -privada 
(una iniciativa orientada a la promoción de nuevo s mercados y al intercambio de conocimientos y 
estrategias entre los sectores público y privado); la introducción de un método basado en una hoja 
de ruta para el análisis retrospectivo de objetivos; reformas normativas para reducir los gastos de 
administra ción de las empresas; reformas relacionadas con la educación, las competencias y la mano 
de obra; el fomento de la investigación conjunta por parte de la industria y el mundo académico; la 
introducción de un permiso japonés de residencia y trabajo para pro fesionales extranjeros altamente 
cualificados (véase infra); la prestación de apoyo a las empresas para que implanten tecnologías de 
la información y robots; la promoción de la tecnología en los ámbitos sanitario, medioambiental y 
energético; la creación d e una cadena de suministro del hidrógeno a gran escala (para 2030); la 
promoción del sector del deporte de cara a los Juegos Olímpicos de 2020; medidas encaminadas a 
aumentar la productividad del sector de servicios (sección 4.4); la continuación de la ref orma del 
sector agrícola (sección 4.1); medidas para fortalecer e impulsar el turismo; el fomento del uso de 
las zonas especiales estratégicas nacionales (véase infra); reformas en materia de gobernanza 
empresarial (véase infra); medidas que propicien unos  mercados financieros y de capitales pujantes 
(sección 4.4.1); y el aumento de la participación privada en los servicios y activos públicos. Con el 
fin de orientar algunas de estas iniciativas se establecieron varias nuevas entidades, entre ellas, el 
Conse jo Público -Privado para la Cuarta Revolución Industrial, el Consejo de la Estrategia de 
Tecnología de Inteligencia Artificial y el Consejo de Promoción del Desarrollo de los Recursos 
Humanos en Respuesta a la Cuarta Revolución Industrial".  WT/TPR/M/397/Add.1  
 
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Pregunta  2 
En relación con las reformas relacionadas a la aplicación de la Estrategia de Revitalización del Japón 
de 2016, el párrafo 2.3 menciona la creación de una cadena de suministro del hidrógeno a gran 
escala (para 2030). Al respecto, Chile agradecería a Japón compartir mayor información acerca de 
las políticas, estrategias, acciones, y metas que Japón ha diseñado y/o implementado para la 
creación de una cadena de suministro internacional del hidrógeno.  
 
RESPONSE  
Japan aimed the reduction of hydrogen cost through the development of large -scale supply chain in 
Basic Hydrogen Strategy which was formulated in 2017. Furthermore, the targets for specification 
of the techniques for the development of hydrogen supply chain and the details of the cost are 
decided i n The Strategic Road Map for Hydrogen and Fuel Cells which was revised in March 2019. In 
December 2019, the world 's first liquefied hydrogen pilot carrier was launched.  
 
2.4 Régimen de inversión  
2.4.1 Marco de inversión  
Párrafo 2.34, página 50  
"El Sistema de Asignación de Asesores de Inversión ha estado en funcionamiento desde 2016; 
establece el marco y las condiciones en que los ministros de Estado designados pueden asesorar a 
las empresas que hayan realizado desde el extranjero inversiones importa ntes en el Japón".  
 
Pregunta  3 
El párrafo 2.34 señala que el Sistema de Asignación de Asesores de Inversión ha estado en 
funcionamiento desde 2016, y que establece el marco y las condiciones en que los ministros de 
Estado desinados pueden asesorar a las em presas que hayan realizado desde el extranjero 
inversiones importantes en el Japón. Al respecto, Chile agradecería si Japón pudiera indicar si existe 
un umbral para calificar a la inversión como importante, o en su defecto, cuáles son los criterios 
para ca lificar a la inversión como tal, y qué asesoría en particular se presta a las empresas que 
hayan realizado desde el extranjero inversiones importantes.   
 
RESPONSE  
For the specific definition of "important investments", following three conditions which we used in 
the bid of Investment Advisor Assignment System in 2016 can be referred.  
(i) The company has a record of (a) a direct investment of 20 billion yen or more in Japan and 
(b) 500 or more regular employees in Japan.  
(ii) The company operates in one of the strategic areas listed in the Strategic Market Creation Plan 
under the Japan Revitalization Strategy (see below) and is carrying out sound business activities.  
https://www.kantei.go.jp/jp/singi/keizaisaisei/pdf/zentaihombun_160602_en.pdf . 
(iii) The company contributes to the invigoration of the Japanese economy through the introduction 
of new business models into Japan, R&D activities regarding cutting -edge tec hnologies and so on.  
For the advices to the company which is planning "important investments", please see the following 
website: http://www.invest -japan.go.jp/en_index.html . 
 
3 POLÍTICAS Y PRÁCTIC AS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.1 Procedimientos y requisitos aduaneros, y valoración en aduana  
Párrafo 3.2, página 57  
"La Ley de Aduanas sigue siendo el principal texto legislativo sobre la documentación y los 
procedimientos aduaneros. En el período objeto de examen, la Ley de Aduanas se modificó en 2017 
y 2018 para, entre otras cosas, incorporar un nuevo principio relati vo a la declaración por medio de 
registros electromagnéticos de las cuestiones relativas a la carga, así como para endurecer las 
sanciones por no haber obtenido los permisos de exportación e importación en el momento debido. 
Otras normas que rigen los proc edimientos aduaneros son: la Orden del Consejo de Ministros Nº  150 
de 1954 (Orden de Aplicación de la Ley de Aduanas) y la Orden del Ministerio de Hacienda de 
Aplicación de la Ley de Aduanas (Nº 55 de 1966) ".  
 
Pregunta  4 
En relación con la Ley de Aduanas y sus modificaciones mencionadas en el párrafo 3.2, Chile 
agradecería a Japón compartir información respecto a si la ley mencionada contiene procedimientos 
particulares para la importación de hidrógeno. En relación con ello, Chile también agradecería a 
Japón indicar cual es la documentación requerida aplicable a la importación de hidrógeno .  
 WT/TPR/M/397/Add.1  
 
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RESPONSE  
(1) Amendments to the Customs Act mentioned in paragraph 3.2 of the Report by the Secretariat 
do not include any specific import procedures of hydrogen.  
(2) For import declarations, documents such as the invoice and packing list specified in Article 61 of 
the Order for Enforcement of Customs Act are required to be submitted. In addition, for importing 
hydrogen, the process in Article 22 of the Hi gh Pressure Gas Safety Act (No. 204 of 1951) shall be 
followed.  
Please see the URL below.  
http://www.japaneselawtranslation.go.jp/law/detail_main?re=01&vm=04&id=1 974. 
 
3.1.6 Prohibiciones, licencias y contingentes de importación  
3.1.6.2 Licencias (aprobaciones) y contingentes de importación  
Párrafo 3.42, páginas 71 -72 
"Las mercancías sujetas a aprobación de importación con arreglo a la Orden de Control del Comerci o 
de Importación se especifican en el cuadro 3.4. Las modificaciones en lo que respecta a los productos 
incluidos en esa lista se publican en la Gaceta Oficial como "avisos de importación". Las aprobaciones 
de importación normalmente tienen una validez de seis meses. Durante el período examinado se 
eliminaron las prescripciones en materia de licencias de importación respecto de los productos 
siguientes: i) las ballenas y sus preparados, en julio de 2019, debido a la denuncia por el Japón de 
la CBI; y ii) la s armas y otros artículos procedentes de Eritrea, ya que las sanciones aplicadas se 
retiraron en virtud de una resolución del Consejo de Seguridad de las Naciones Unidas y, por tanto, 
se suprimieron las restricciones."  
 
Pregunta  5 
Respecto a la información indicada en el párrafo 3.42, Chile agradecería a Japón confirmar que la 
importación de hidrógeno no se encuentra sujeta a licencias o contingentes de importación.  
 
RESPONSE  
Hydrogen is not subject to import quotas or import appro val under the Import Trade Control 
Ordinance.  
 
3.1.7 Medidas antidumping, compensatorias y de salvaguardia  
3.1.7.1 Medidas antidumping  
Párrafo 3.50, páginas 76 -77 
"Las investigaciones antidumping pueden iniciarse cuando el Gobierno lo considere necesario, 
cuando una rama de producción nacional formule una solicitud de investigación al Ministro de 
Hacienda o cuando existan pruebas suficientes. El Ministro de Hacienda  da a conocer la decisión 
mediante la publicación de un aviso público en la Gaceta Oficial. Las investigaciones están a cargo 
de un equipo integrado por funcionarios de la Oficina de Asuntos relacionados con los Recursos 
Comerciales del Ministerio de Hacie nda, la Oficina de Investigaciones sobre Recursos Comerciales 
del METI y el ministerio con competencias sobre la rama de producción de que se trate. La decisión 
definitiva de imponer un derecho antidumping se dicta como Orden del Consejo de Ministros. No 
podrán aplicarse medidas provisionales antes de transcurridos 60 días desde la fecha de iniciación 
de la investigación. En principio, las medidas provisionales se aplican durante un máximo de cuatro 
meses, aunque el plazo puede prorrogarse a petición de exp ortadores que representen un porcentaje 
significativo del comercio de que se trate. Los exportadores pueden comprometerse a revisar los 
precios o a poner fin a las exportaciones para eliminar el efecto perjudicial que el dumping causa a 
la rama de producci ón nacional. Los derechos antidumping pueden imponerse por un período no 
superior a cinco años, prorrogable posteriormente previo examen. Cada una de las prórrogas no 
excederá de cinco años".  
 
Pregunta  6 
En párrafo 3.50 se indica que las investigaciones an tidumping pueden iniciarse cuando el Gobierno 
lo considere necesario, cuando una rama de producción nacional formule una solicitud de 
investigación al Ministro de Hacienda o cuando existan pruebas suficientes. Al respecto, Chile 
agradecería a Japón informa r sobre la diferencia entre la primera y tercera alternativa (entre cuando 
el Gobierno lo considere necesario y cuando existan pruebas suficientes). En este sentido, sería muy 
útil si Japón pudiera dar ejemplos de estos casos, además de proveer de la norma tiva pertinente.   
 
RESPONSE  
To be precise, anti -dumping investigations may be initiated by (i ) application from domestic 
industries or (ii) official authority (ex officio), when the government of Japan considers it necessary. WT/TPR/M/397/Add.1  
 
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Enough evidence is required in both cases. Please refer to the provisional translation of paragraphs  4 
and 5 of Article 8 o f Customs Tariff Law (G/ADP/N/1/JPN/2). So far, no ex officio investigation has 
been initiated.  
 
3.3.2 Normas y otras prescripciones técnicas  
 
Cuadro 3.14 Principales leyes relativas a las normas y los reglamentos técnicos, página  93 
 
Legislación/organismo  Objetivo  
Ley de Normalización Industrial, 
de 1949/METI  Se aplica a todos los productos salvo los medicamentos, los productos 
químicos agrícolas y empleados como fertilizantes, los hilados de seda, 
los productos alimenticios, los prod uctos agrícolas y los productos 
forestales; los datos; los servicios; y los sistemas de gestión.  
En virtud de la Ley se establece el Comité de Normas Industriales del 
Japón (JISC), el sistema de marcas JIS y el marco jurídico para las 
normas, la certificac ión y la acreditación de los organismos y laboratorios 
de certificación.  
Ley de Seguridad de los Productos 
de Consumo, de  1973/METI  Establece prescripciones relativas a: 1) una pequeña serie de productos 
que deben cumplir determinadas prescripciones técnicas; y 
2) determinados productos de mantenimiento (algunos tipos de 
calentadores de agua para uso doméstico y de electrodomésticos), que 
deben entregarse con información sobre su mantenimiento. Establece 
asimismo el marco jurídico para comunicar información sobre los 
accidentes con los productos de consumo.  
Ley de Garantía de la Calidad, 
Eficacia e Inocuidad de Productos 
Farmacéuticos, Dispositivos 
Médicos, Productos para Terapias 
Regenerativas y Celulares, 
Productos para Terapia Génica  y 
Cosméticos, de  1960/Ministerio de 
Salud, Trabajo y Bienestar Social  Regula la fabricación, importación y venta de productos farmacéuticos 
y dispositivos médicos, productos para terapias regenerativas y 
celulares, productos para terapia génica y cosmétic os. 
Ley de Normas Agrícolas del Japón, 
de 1950/MAFF  Se aplica a los productos alimenticios, bebidas, aceites y grasas, así 
como a otros productos agrícolas, forestales, ganaderos y pesqueros y 
sus productos derivados, con excepción de las bebidas alcohóli cas, los 
productos farmacéuticos, los cosméticos y los medicamentos para 
terapias regenerativas. Establece el marco jurídico de las normas 
agrícolas del Japón (JAS) y los criterios de adopción de normas, 
gradación de la calidad, certificación y acreditació n de los organismos 
de certificación,  los laboratorios y los inspectores.  
Ley de Normas de Construcción, 
de 1950/Ministerio de Ordenación 
Territorial, Infraestructura, 
Transporte y Turismo  Se aplica a los edificios y a su construcción. Dispone el establec imiento 
de normas para la construcción de edificios, incluidas las relativas a la 
seguridad contra incendios y los procedimientos de inspección, 
certificación y homologación de edificios.  
Ley de Seguridad de los Aparatos y 
Materiales Eléctricos, de  1961/M ETI Se aplica a los aparatos y materiales eléctricos. La Ley regula la 
fabricación y venta de aparatos eléctricos, y dispone que sus 
fabricantes e importadores deben inscribirse en el registro del  METI y 
velar por la conformidad de los aparatos con las prescripciones 
técnicas.  
Ley de Mediciones, de  1992/METI  Establece las unidades del Sistema Internacional de Unidades (SI) 
como las unidades de medición en el Japón y el marco jurídico para su 
aplicación y verificación y para la certificación de los aparatos de 
medición.  
Ley de Etiquetado de Productos 
Alimenticios, de  2013/Oficina de 
Asuntos del Consumidor  Asegura la aplicación de un sistema de etiquetado de productos 
alimenticios unificado med iante el establecimiento de normas y la 
indicación de otra información necesaria para el etiquetado de 
productos alimenticios destinados a la venta (véase infra). 
 
Pregunta  7 
En relación con las leyes relativas a las normas y reglamentos técnicos del cuad ro 3.14, Chile 
agradecería a Japón indicar cuales son las normas y reglamentos técnicos aplicables a la importación 
de hidrógeno.  
 
RESPONSE  
It is provisioned at Article 22 of the High Pressure Gas Safety Act (No. 204 of 1951).  
Please see the below website : 
http://www.japaneselawtranslation.go.jp/law/detail_main?re=01&vm=04&id=1974 . WT/TPR/M/397/Add.1  
 
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3.3.4 POLÍTICA DE COMPETENCIA Y CONTROLES DE PRECIOS  
3.3.4.1 Política de com petencia  
Párrafo 3.144, página 104  
"El principal cambio normativo que ha tenido lugar en este ámbito en el período objeto de examen 
ha sido la modificación de la Ley Antimonopolio, por la que se introdujeron los procedimientos de 
compromiso previstos en el CPTPP (sección 2.3.2.1.1 e infra).  La Ley Antimonopolio modificada entró 
en vigor el 30 de diciembre de 2018, en la misma fecha que el CPTPP. El objeto de los procedimientos 
de compromiso es establecer un sistema para resolver las supuestas infracciones de la Ley 
Antimonopolio por consenti miento entre la JFTC y la empresa de que se trate; al final de octubre de 
2019 no se habían hecho progresos ni planes para el establecimiento del sistema. De conformidad 
con los procedimientos de compromiso, cuando se sospecha la existencia de una infracci ón distinta 
de un cártel intrínsecamente nocivo -por ejemplo, un caso de cártel de precios o de manipulación 
de licitaciones -, la JFTC y la empresa pueden celebrar consultas y determinar medidas correctivas 
suficientes para eliminar la infracción. Si la JF TC aprueba las medidas correctivas y estas se aplican 
correctamente, la JFTC no dicta ninguna orden. Se considera que los procedimientos de compromiso 
facilitarían la pronta resolución de las preocupaciones relacionadas con la competencia y 
contribuirían a  una aplicación eficaz y eficiente de la Ley Antimonopolio mediante la cooperación 
entre la JFTC y los presuntos infractores. Para asegurar la transparencia y la previsibilidad en la 
aplicación, la JFTC también ha establecido normas y políticas, como las N ormas relativas a los 
procedimientos de compromiso de la Comisión de Comercio Leal, en 2017, y las Políticas relativas a 
los procedimientos de compromiso, en 2018."  
 
Pregunta  8 
En párrafo 3.144 se habla sobre las medidas correctivas suficientes para elimi nar una infracción 
(distinta de un cártel intrínsecamente nocivo). Al respecto, Chile agradecería a Japón compartir 
mayor información sobre cómo hace seguimiento del cumplimiento de las medidas correctivas. En 
particular, en el caso de que las empresas no cumplan, si existen sanciones u otras formas de 
disciplina.  
 
RESPONSE  
In order to ensure that competition order is restored or that the act will not be repeated in the future, 
the content of remedies (Commitment Measures included in the Commitment Plan) is required to 
satisfy the following requirements: (i) they are sufficient to eliminate the Suspected Violation or to 
ensure that the Suspected Violation has been eliminated and (ii) they are expected to be reliably 
conducted. The report o f the state of implementation of each Commitment Measure to the JFTC by 
the enterprise or an independent third party to whom the enterprise has entrusted with monitoring 
its performance of Commitment Measures (only if said third party has been approved by the JFTC) 
is one of the typical examples of Commitment Measures. The JFTC will monitor enterprise 's 
performance of Commitment Measures according to these reports, and take the necessary measures, 
such as ordering to report and to submit documents pursuant to the provisions of Antimonopoly Act. 
The JFTC must render a decision to rescind the approval of a Certified Commitment Plan when the 
JFTC finds that the Approved Commitment Measures have not been implemented or that the 
Approved Enterprise obtained the a pproval of the Commitment Plan based on false or wrongful facts. 
When an Approved Commitment Plan has been rescinded, the approval shall no longer be in effect 
and the investigation made prior to the Notice of Commitment Procedures will resume. (*All the 
words starting with a capital letter are defined in the "Policies Concerning Commitment Procedures.")  
 
4 POLÍTICAS COMERCIALES, POR SECTORES  
4.1.2 Pesca  
4.1.2.6 Medidas en frontera y de ayuda interna  
Párrafo 4.86, página 168 -169.  
"El Japón ha reorganizado  la presentación de sus programas de subvenciones en su notificación. En 
su anterior notificación a la OMC, de 2017 (que abarcaba los ejercicios económicos de 2014 y 2015), 
solo notificó dos programas nacionales: la Subvención de los Intereses del Fondo de  Modernización 
de la Pesca y el Fondo para la Medida destinada a la Recuperación de los Recursos Pesqueros. En el 
cuadro 4.15 figuran los programas de ayuda a la pesca que el Japón notificó a la OMC en julio de 
2019.55 La cuantía total de las subvenciones ha aumentado significativamente. En el ejercicio 
económico de 2016 ascendió a JPY 73.200 millones y en el de 2017 a JPY 68.700 millones, datos 
que contrastan con los de los ejercicios económicos de 2014 (JPY 1.700 millones) y 2015 
(JPY 1.300  millones). Según las autoridades, este aumento puede explicarse por el hecho de que, 
en aras de la transparencia de las negociaciones en curso sobre las subvenciones a la pesca, el Japón WT/TPR/M/397/Add.1  
 
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notificó programas que, a su juicio, posiblemente no constituyen subv enciones en el sentido del 
artículo 1 del Acuerdo SMC o no son "específicos" en el sentido del artículo 2 del mismo Acuerdo".  
 
Pregunta  9 
En relación con la política de subsidios a la pesca de Japón, en el párrafo 4.86 se indica que "la 
cuantía total de la s subvenciones ha aumentado significativamente". Al respecto, Chile agradecería 
a Japón conocer cómo la actual política pesquera de Japón se enmarca con el compromiso asumido 
en el objetivo 14.6 de los Objetivos de Desarrollo Sostenible (ODS), donde las pa rtes acuerda 
"…prohibir ciertas formas de subvenciones a la pesca que contribuyen a la capacidad de pesca 
excesiva y la sobreexplotación pesquera, eliminar las subvenciones que contribuyen a la pesca ilegal, 
no declarada y no reglamentada y abstenerse de i ntroducir nuevas subvenciones de esa índole… ".  
 
RESPONSE  
Japan submitted a wider range of notification in 2019 in order to enhance transparency in light of 
the notification obligation set out in paragraph 2 of Ministerial Decision in the 11th Ministerial 
Conference. This notification includes certain fisheries r elated government expenditures that may 
not constitute "subsidies" under Article 1 of the ASCM or may not be "specific" under Article 2 of the 
Agreement. This is why the total amount of Japanese fisheries subsidies appears to be increased 
than before.  
 
Pregunta  10 
Adicionalmente, Chile agradecería a Japón indicar informar si sus programas de subsidios a la pesca 
contravienen el objetivo ODS mencionado. En caso de que la respuesta sea afirmativa, ¿qué medidas 
de mitigación Japón estaría considerando imple mentar?  
 
RESPONSE  
Japan 's fisheries subsidies do not contribute to IUU fishing, nor to overcapacity and overfishing. 
Please also refer to the answer No.9.  
 
4.2 Minería y energía  
4.2.2 Energía  
Párrafo 4.107, página 174  
"En el nuevo SEP se establece como objetivo para el año 2050 la instauración de la "sociedad del 
hidrógeno", ya que este elemento es una fuente de energía eficiente sin emisiones de gases de 
efecto invernadero. Por lo tanto, el Japón tiene previsto prosegu ir las investigaciones ya iniciadas 
en esta esfera. A tal efecto, el Consejo Ministerial de Energías Renovables, Hidrógeno y Cuestiones 
Conexas, un órgano especial de coordinación creado en abril de 2017 para tratar asuntos relativos 
a las energías renovab les, adoptó la Estrategia Básica del Hidrógeno en diciembre de 2017 (acerca 
del programa de subvenciones para vehículos con pilas de combustible, véase la sección 3.3.1.3)".  
 
Pregunta  11 
En relación con el nuevo Plan Estratégico de Energía (SEP) y el obje tivo de instaurar en para el año 
2050 una "sociedad del hidrógeno", Chile agradecería a Japón compartir información respecto a las 
políticas, estrategias, acciones y metas que se han implantado (o implementarán) para alcanzar el 
objetivo de instaurar una " sociedad del hidrógeno".  
 
RESPONSE  
The target for the cost of hydrogen is mentioned in Basic Hydrogen strategy which was formulated 
in 2017. To achieve the target, specification targets are determined in The Strategic Road Map for 
Hydrogen and Fuel Cells which was revised in March 2019. In addition, technology development 
items are specified in Strategy for Developing Hydrogen and Fuel -Cell Technologies which was 
formulated in September 2019.  
 
Pregunta  12 
Chile agradecería a Japón indicar si existe ( o planea) implementar algún procedimiento para 
certificar la huella de carbono del hidrógeno exportado y/o consumido en Japón. Adicionalmente, 
Chile agradecería si Japón pudiera indicar si exigirá a las naves que llegarán transportado hidrógeno, 
propulsión  con algún combustible determinado.   
 
RESPONSE  
Japan doesn 't have official procedure and plan regarding to the certification of the origin of hydrogen 
at this point. For the development of future international trade, various cooperation plans with WT/TPR/M/397/Add.1  
 
- 47 - 
 
related countries, such as technology development, are under consid eration. In Hydrogen Energy 
Ministerial Meetings held in last September, the importance of actions toward the development of 
hydrogen trading market was mentioned in "Global Action Agenda" which is a chair 's summary. As 
for the fuel for hydrogen transporta tion carrier, various options for the future are on the discussion 
table.  
 
Pregunta  13 
Chile agradecería a Japón indicar si existe (o se planea implementar) una diferenciación regulatoria 
entre hidrógeno "gris", "azul" y "verde". En caso de ser la respuest a negativa, Chile agradecería a 
Japón aclarar si será entonces un aspecto que definirán las partes al momento de la compraventa 
internacional.   
 
RESPONSE  
Japan does not have any regulations regarding to the origin of hydrogen. For the development of 
future international trade, various cooperation plans with related countries, such as technology 
development, are under consideration.  
 
Pregunta  14 
Chile agradecería a Japón informar si existe – o se espera implementar en el futuro - alguna p olítica 
de fomento de las inversiones japonesas de proyectos de hidrógeno en el exterior.  
 
RESPONSE  
There are financial support programs that demonstrate some overseas projects in the field of new 
energy and energy conservation, including hydrogens.  
 
Preg unta 15 
Chile agradecería a Japón indicar si tienen considerado crear una política de inventarios de seguridad 
de hidrógeno (como lo que se hace con los combustibles líquidos, por ejemplo).  
 
RESPONSE  
It is mentioned in Basic Hydrogen Strategy that the utilization of hydrogen will diversify energy 
supply sources, and contribute to energy security.  
 
4.4 Servicios  
4.4.4 Servicios de transporte  
4.4.4.1 Transporte marítimo  
4.4.4.1.2 Evolución de la normativa  
Párrafo 4.224, páginas 202 -203 
"El segundo objeti vo del tercer Plan Básico de Política Oceánica es reforzar a los operadores que se 
dedican al transporte marítimo de cabotaje, armar embarcaciones avanzadas para este tipo de 
transporte y asegurar un número suficiente de marineros nacionales, de conformida d con el Plan 
para el Futuro del Transporte Marítimo de Cabotaje del MLIT, de junio de 2017. El Plan establece 
como objetivo aumentar el tonelaje medio de los buques de cabotaje de 715 toneladas en el ejercicio 
económico de 2015 a 858 toneladas en el ejerc icio económico de 2025. El Programa de Medidas 
Provisionales de Transporte Marítimo de Cabotaje y de incentivos al desguace, establecido en el 
ejercicio económico de 199892, y el Régimen de propiedad compartida en el sector del transporte 
marítimo de cabot aje, mantenido con el Organismo de Construcción, Transporte y Tecnología 
Ferroviarios (JRTT) y establecido en 1957, no han experimentado cambios. El Plan Básico de Política 
Oceánica prevé asimismo el mantenimiento del actual régimen de cabotaje, es decir, su reserva a 
los buques de pabellón nacional, salvo en el caso de las excepciones previstas en los tratados de 
amistad, comercio y navegación firmados con Dinamarca, el Reino Unido y Noruega, o en condiciones 
de reciprocidad".  
 
Pregunta  16 
El párrafo 4.224 indica que existen algunas excepciones para el transporte marítimo interno en el 
Plan Básico de Política Oceánica, las que incluyen a Dinamarca, Reino Unido, Noruega y otros cuando 
haya condiciones de reciprocidad. Al respecto, Chile agradece ría si Japón pudiera explicar con mayor 
detalle cuáles son las excepciones que se indican en dicho párrafo.   
 WT/TPR/M/397/Add.1  
 
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RESPONSE  
In Japan, foreign -flagged vessels cannot transport between internal ports in principle. However, 
there may be exceptions in the internal maritime transport when the Minister of Land, Infrastructure, 
Transport and Tourism gives special permission.  
 
Párrafo 4.227, página 203  
"El régimen de acceso a los mercados aplicado no ha experimentado ningún cambio. El Japón no 
discrimina contra la participación de extranjeros en los servicios marítimos internacionales y les 
otorga el trato nacional".  
 
Pregunta  17 
El párrafo 4.227 indica  que Japón no discrimina contra la participación de extranjeros en los servicios 
marítimos internacionales y les otorga el trato nacional. En relación con ello, Chile agradecería si 
Japón pudiera explicar si esta política de no discriminación y trato nacio nal también se aplica al 
cabotaje. Si no se aplica, Chile agradecería a Japón compartir cuáles son los requisitos para proveer 
servicios de cabotaje marítimo.   
 
RESPONSE  
In accordance with article 3 of the Ship Law, foreign -flagged vessels cannot transport between 
internal ports in Japan in principle.  
 
Párrafo 4.229, páginas 203 -204 
"En cuanto a los puertos, durante el período objeto de examen se introdujeron importantes cambios 
normativos. En primer lugar, el tercer Plan Básico de Política Oceánic a, adoptado por el Consejo de 
Ministros en mayo de 2018, incluye un componente relativo a los puertos. El objetivo de ese 
componente es mantener y ampliar las principales rutas marítimas, con escalas portuarias en el 
Japón e infraestructuras sísmicas adapt adas a los buques portacontenedores de gran tamaño, los 
grandes buques graneleros y los transportistas de automóviles, mediante la recaudación de fletes, 
el establecimiento de fletes y la mejora de la competitividad portuaria. El Plan prevé asimismo la 
construcción de terminales de logística internacionales y de terminales nacionales adaptadas a las 
necesidades de transporte de las principales industrias (como el reciclaje de automóviles en los 
puertos), y también se fomentará la creación de instalaciones d e aprovisionamiento de combustible 
destinadas específicamente a los buques que transportan gas natural licuado, incluso en el 
extranjero (por ejemplo, en Singapur)".  
 
Pregunta  18 
El párrafo 4.229 indica que el tercer Plan Básico de Política Oceánica incluye dentro de sus 
componentes relativos a la infraestructura de los puertos, ampliar las infraestructuras sísmicas 
adaptadas para los buques portacontenedores de gran tamaño. Al res pecto, Chile agradecería si 
Japón pudiera dar más detalles sobre los requerimientos que existen para participar de la 
construcción de dicha expansión. En particular, ¿existen limitaciones a la nacionalidad de las 
empresas que participan en esas obras?  
 
RESPONSE  
The requirements for participation in the tender for participation in the construction are stipulated 
in the WTO Agreement on Government Procurement, and are also determined by the client for each 
individual construction work. There are no special r estrictions on the nationality of participating 
companies.  
 
4.4.5 Servicios ambientales  
4.4.5.1 Servicios de distribución de agua, tratamiento de aguas residuales y alcantarillado  
Párrafo 4.252, página 209  
"La principal novedad en materia de reglamentación fue la modificación de la Ley de Abastecimiento 
de Agua de 1957 (Modificación Nº 92/2018, de 12 de diciembre de 2018), que permite a los 
municipios transferir a empresas privadas, mediante un contrato de c oncesión, la gestión completa 
de la distribución de agua durante un período de hasta 20 años. Esta modificación se introdujo en 
aplicación del plan anual de asociación público -privada/Iniciativa de Financiación Privada (PFI) de 
2018."  
 
Pregunta  19 
El párr afo 4.252 establece que, respecto de los servicios de distribución de agua, la Ley de 
Abastecimiento de Agua de 1957, permite a los municipios transferir dichas competencias a WT/TPR/M/397/Add.1  
 
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empresas privadas. Al respecto, Chile agradecería si Japón pudiese indicar porce ntualmente la 
participación de empresas extranjeras en la entrega de estos servicios.   
 
RESPONSE  
The revised water supply law was approved in December 2018 and came into force on October 1, 
2019. In the water supply service sector in Japan, a concession system under the PFI law or the 
revised water supply law has not introduced at this time.  
 
Párrafo 4.255, página 210  
"Los servicios de tratamiento de aguas residuales y alcantarillado se rigen por la Ley de Aguas 
Residuales (Ley Nº 79 de 1958), que atribuye a los municipios las competencias para prestar 
servicios de alcantarillado. Los municipio s pueden a su vez delegar en empresas privadas parte o 
toda la gestión del sistema y las instalaciones de alcantarillado, utilizando para ello diversos tipos 
de acuerdos contractuales. Un porcentaje no inferior al 90% de la explotación de las instalaciones  
de alcantarillado se ha delegado en el sector privado."  
 
Pregunta  20 
El párrafo 4.255 establece que, en lo relativo a los servicios de tratamiento de aguas residuales y 
alcantarillado, el 90%  de la explotación de las instalaciones de alcantarillado se ha delegado al sector 
privado. Al respecto, Chile agradecería si Japón pu diese señalar qué porcentaje de ese 90% de 
empresas privadas son empresas extranjeras, junto con indicar la nacionalidad de los principales 
distribuidores extranjeros en ese nicho.   
 
RESPONSE  
Local governments are responsible for sewerage services, and man y of them commission the 
management of sewerage facilities to private entities. The ministries do not have comprehensive 
data on the private entities to which local governments have commissioned, thus Japan cannot 
provide the proportion or the main nationa lities of foreign private entities, to which local 
governments have commissioned.  
 
4.4.6 Servicios de distribución centrados especialmente en el comercio electrónico  
Párrafo 4.275, página 215  
"Tampoco se aplican restricciones del tipo previsto en el AGCS al comercio electrónico. No existe un 
marco reglamentario general que se aplique específicamente a este tipo de comercio. Las principales 
leyes pertinentes se refieren a la protección de los co nsumidores y los pagos electrónicos. La más 
importante de ellas es la Ley de Disposiciones Especiales sobre el Código Civil en materia de 
Contratos de Consumo Electrónicos y Avisos de Aceptación Electrónica (Ley Nº 95, de 29 de junio 
de 2001). Esta ley con tiene disposiciones especiales sobre el Código Civil (Ley Nº  89 de 1896) que 
se aplican a los casos en que hay determinados errores en los elementos constitutivos de un contrato 
de consumo electrónico, o cuando un consumidor envía un aviso de aceptación el ectrónica en virtud 
de un contrato concluido a distancia. La Ley de Contratos de Consumo (Ley Nº 61, de 12 de mayo 
de 2000) permite al consumidor desistir de ofrecer o aceptar un contrato en los supuestos en que 
haya malinterpretado determinados actos de u n operador comercial o se haya visto afectado por 
ellos. También anula (total o parcialmente) toda cláusula que exima a los operadores comerciales 
de la responsabilidad por daños y perjuicios, o que vulnere injustamente de otro modo los intereses 
de los co nsumidores".  
 
Pregunta  21 
El párrafo 4.4.6 indica que, en cuanto a los servicios de distribución centrados en el comercio 
electrónico, no existe un marco reglamentario general que se aplique específicamente a este tipo de 
comercio. Al respecto, Chile agra decería si Japón pudiese señalar si existen medidas administrativas 
para regular en mayor detalle los servicios proveídos a través del comercio electrónico y en caso de 
ser afirmativa la respuesta, en qué consisten dichas medidas.  
 
RESPONSE  
There are no administrative measures which specifically regulate the services provided through 
electronic commerce.   WT/TPR/M/397/Add.1  
 
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UNITED STATES  
Questions based on the Secretariat Report (WT/TPR/S/397)  
 
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.4.1 Tax reform  
Page 23, paragraph 1.12 : The Secretariat report references the "creation of Forest Environment 
Tax (provisional) and Forest Environment Transfer Tax (provisional)."  
1. Please provide details on how the revenue generated from these taxes will be used.  
2. Will this tax revenue be used to support Japan 's forestry industry and Japan 's goal 
of increasing the domestic wood supply from 30 million cubic meters to 40 million 
cubic meters by 2025?  
 
RESPONSE  
1. The ways of using the revenue are prescribed by the "Act on Forest Environment Tax and Forest 
Environment Transfer Tax". Under this Act, municipalities shall expense the Tax for undertaking and 
promoting forest management, and prefectures shall expense it mainly for supporting municipalities ' 
activities.  
2. The Forest Environment Transfer Tax does not aim at increasing the domestic wood supply. 
Instead, the tax aims at maintaining and enhancing the multiple functions of fore sts for the public 
benefits that result in achieving the greenhouse gas emissions reduction target under the framework 
of the Paris Agreement and protecting citizens from disasters.  
 
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
Page 41, paragraph 2.14: The Secretariat Report states Japan is aiming for the swift conclusion 
of Regional Comprehensive Economic Partnership (RCEP) negotiations.  
3. Please  provide an update on the current status of the negotiations.  
 
RESPONSE  
Japan has bee n working towards the signing of an RCEP Agreement by 16 countries by the end of 
this year, following the Joint Leaders ' Statement on the RCEP adopted on 4 November 2019 in 
Bangkok, Thailand.  
 
Page 41, paragraph 2.17: The Secretariat Report states negotiat ions on a free trade agreement 
between Japan, China, and the Republic of Korea are ongoing.  
4. Please provide an update on the current status of these negotiations.  
 
RESPONSE  
For the current status of abovementioned negotiations, please refer to the table below.  
(Also, please refer to Q.3 for the current status of the RCEP negotiations.)  
 
Title The last official negotiation  
Japan -Turkey  Octobe r 2019 (17th round of negotiations)  
Japan -Colombia  September 2015 (13th round of negotiations)  
Japan -China -Republic of Korea  November 2019 (16th round of negotiations)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1 Customs procedures, valuation, and requirements  
Page 52, paragraph 3.4:  According to the Secretariat Report, "There are no registration 
requirements for importers." Section 4.51 on page 140 states, "Importers, wholesalers, and retailers 
of cigarette s are required to register with the Minister of Finance."  
 
5. Can Japan clarify its import registration requirements?  
 
RESPONSE  
Those who intend to sell tobacco products imported by themselves as a business shall be registered 
by the Minister of Finance.  
 WT/TPR/M/397/Add.1  
 
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3.1.4.3 Tariff reductions and exemptions  
Page 61, paragraph 3.31: According to the Secretariat Report, "Article 12 of the Customs Tariff 
Law provides for duty reductions/exemptions in cases where the prices of imported daily necessities 
have increased (to prevent price increases of daily necessities, such as food and clothing), to 
maintain stability in people's everyday lives. The merchandise goods currently subject to such duty 
reductions/exemptions are imported rice, hulled or unhulled; barley; wheat food stuffs; apparel; and 
other goods which are closely related to people's daily lives."  
 
6. Please provide details regarding duty reductions/exemptions on imported rice.  
 
RESPONSE  
The article states Japan can reduce or exempt the tariff on rice by issuing a cabi net order in the 
following cases:  
(1) In case where the price of imported rice is higher than that of home -grown rice  
(2) In case of necessity caused by emergencies such as lean crops, natural disasters, or incidents.  
 
Page 61, paragraph 3.32: According to the Secretariat Report, under Article 13 of the Customs 
Tariff Law, "customs duties may be reduced or exempted on imported raw materials, to develop 
domestic industries manufacturing specific products, or to maintain stability in people's everyday 
lives ("end -use concessions"). The merchandise goods currently subject to such duty 
reductions/exemptions are: (i) mixed feeds: kaoliang and other grain sorghums; maize (corn); rye; 
powdered banana; sugar (with a specified sucrose content); molasses; manioc or sliced and half -
dried sweet potatoes (including powder or pellets of manioc and sliced and half -dried sweet 
potatoes); (ii) unmixed feeds: kaoliang and other grain sorghums and maize (corn); and 
(iii) groundnut oil and groundnut."  
 
7. Please provide details r egarding duty reductions/exemptions on imported corn.  
 
RESPONSE  
The duty of imported corn used for formula feed is exempted in order to stabilise formula feed supply 
with good quality and to maintain lower prices for livestock producers and aquaculture pro ducers.  
 
3.2 Measures Directly Affecting Exports  
3.2.4 Export support and promotion  
Page 73, paragraph 3.69: According to the Secretariat Report, Japan has no export subsidy 
programmes in place; over the review period, it notified the WTO Committee on Agriculture that it 
had not provided export subsidies for the fiscal years 2016 and 2017. In the WTO Committee on  
Agriculture the United States has asked questions regarding Japan 's program called "Subsidies for 
the Creation of Production Areas". Specifically, the United States has asked about eligibility criteria 
for receiving payments. Japan responded generally in AGIMS91158 that " The eligibility of products 
and the levels of payment to farmers are determined by the criteria which local agricultural councils 
decide, including those in the prefectures cited in the question. Those criteria are established based 
on the ir individual situations, regardless of the unit amounts of funding allocation set by the national 
government, and payment is made according to such criteria. " 
 
8. Please provide specific criteria used by major rice producing prefectures, such as 
Niigata, Hok kaido, and Akita.  
 
RESPONSE  
A variety of criteria are set forth under "Grants for Production Areas". Payments are made to farmers 
in accordance with the eligibility of products and the levels of payments which local agricultural 
councils establish on their own initiative in their respective plans with other requirements reflecting 
diverse agricultural situations in the major rice producing prefectures cited in the questions.  
 
9. For what duration is this program authorized and upon expiration, will it be eligible 
for renewal or automatically terminated?  
 
RESPONSE  
MAFF 's budget, including the expenditure on the program "Grants for the Production Area," is 
considered in the annual budget compilation process. The draft budget for FY2020 includes the 
allocati on to the program and is currently under parliamentary discussions for approval.  
 WT/TPR/M/397/Add.1  
 
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3.2.4.4 Export promotion  
Page 79, paragraph 3.89: In the Secretariat Report, Japan details multiple subsidy and assistance 
programmes, including for the following activities and sectors: crafts; mining and energy; beverages 
(sake and shochu); agriculture; fisheries; leather; and R&D for next -generation te chnology. Between 
2017 and 2019, Japan allocated three billion Japanese yen a year in its supplemental budget to the 
Subsidiary Program for Structural Transition of Field Crops ( 畑作構造転換事業 ). This program provided 
financial support to farmers transitioning to  growing different varieties, including pest -resistant 
varieties, and supported purchases of agricultural equipment.  
 
10. What proportion of the budget was expended and how between 2017 and 2019? Is 
the program expected to continue in 2020?  
 
RESPONSE  
The ann ual budget of the Program for Structural Transition of Field Crops was 3 billion yen in FY2017, 
FY2018 and FY2019 respectively.  
The implementation of the program in FY2020 has not yet been decided.  
 
11. How much overlap in terms of beneficiaries and objectives is there between this 
Subsidiary Program and the Act on Farming Income Stabilization (Page 139, 
paragraph 4.44)?  
 
RESPONSE  
There is no overlap between the objectives of those programs, although it is possible for the farmers 
to be eligible for b oth. 
The Program for Structural Transition of Field Crops aims at supporting rural areas ' environment -
friendly efforts in seeking a proper crop rotation balance and introducing pest -resistant varieties in 
order to improve soil quality, which will contribut e to conserving soil environment and then achieve 
sustainable agriculture.  
The payment under the Act on Farming Income Stabilization aims at compensating the gap between 
production costs and sales prices of field crops.  
 
12. Is the funding used for remediation in potato -growing areas infested with cyst 
nematodes?  
 
RESPONSE  
Yes. The program includes support for the introduction of the pest -resistant varieties against cyst 
nematodes at the potato production areas.  
 
3.3. Measures Directly Affecting Production and Trade  
3.3.2.2 Standards  
Page 83, paragraph 3.109 and page 84, paragraph 3.112: The Secretariat Report lists the "JAS 
Organic Livestock and Organic Livestock Products" as a mandatory JAS since 2018.  
 
13. Can Japan conf irm that domestic implementation of this standard has not begun as 
of January 28, 2020?  
 
RESPONSE  
The JAS for Organic Livestock and for Organic Livestock Products are supposed to be enforced on 
16 July 2020 as technical regulations. As the date in the repo rt is wrong, we have asked the WTO 
Secretariat to correct it.  
 
Page 83, paragraph 3.109 : According to the Secretariat Report, "For non -compulsory JASs, a 30 -
day public comment period is provided for."  
 
14. Does Japan offer an English translation of proposed non -compulsory JASs during the 
public comment period?  
 
RESPONSE  
For non -compulsory JAS, only the Japanese version is available.  
 WT/TPR/M/397/Add.1  
 
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3.3.2.5 Labelling requirements  
Page 85, paragraph 3.117: The Secretariat Report recognizes concerns that Japan 's classification 
of chemical substances as pesticides or food additives based on the time of application "places more 
burden on trading partners than on Japanese producers." Ye t, Japan continues to classify post -
harvest fungicides (PHF) as food additives that require labeling. The same chemical applied pre -
harvest is not required to carry such labeling  
 
15. Please explain the scientific basis for Japan 's designation of PHF as food additives?  
 
RESPONSE  
The reason why so -called post -harvest, which is used for the purpose of preventing mold on 
harvested crops, is designated as a food additive is based on the Japanese legal system. The Food 
Sanitation Act st ipulates that food additives are "substances which are used by being added, mixed 
or infiltrated into food or by other methods in the process of producing food or for the purpose of 
processing or preserving food."  
 
3.3.3.1 SPS measures  
Page 87, paragraph 3 .124: According to the Secretariat Report, Japan has started reviewing the 
portion of commodities to which MRLs apply, with a view to harmonizing them with Codex standards.  
 
16. Can Japan provide examples of portions of commodities to which MRLs apply that 
are harmonized to Codex standards?  
 
RESPONSE  
For example, MRLs  of some agricultural products such as Satsuma mandarin were set only for the 
pulp excluding peels. Japan has begun to establish MRLs for these agricultural products for whole 
commodities, including peels, for each pesticide.  
 
Page 87, paragraph 3.124: The Secretariat Report notes that risk assessments undertaken by the 
Food Safety Commission of Japan (FSCJ) are available on its website. However, most risk 
assessments are only available in Japanese. Also, the Secretariat Report notes that since the last 
TPR, Japan has allowed beef imports from Austria and the United Kingdom, and lifted age restrictions 
to beef imported from Canada, Ireland, and the United States. However, the import requirements 
for U.S. beef are still not aligned with the OIE recommendation  that the United States is negligible 
risk for BSE.   
 
17. Will the FSCJ conduct another risk assessment to consider the removal of remaining 
BSE-related restrictions on U.S. beef (including those related to specified risk 
materials)?  
 
RESPONSE  
MHLW has alread y requested risk assessment on review of the range of specific risk materials for 
domestic beef to FSCJ. For imported beef including from the U.S., MHLW will consider it based on 
the result of the risk assessment for domestic beef.  
 
3.3.3.2.2 The Food Sanitation Act  
Page 88, Paragraph 3.128: Japan notes that amendments were made to the Food Sanitation Act 
(the Act) during the review period, and that new provisions directly related to imports and exports 
include:  
(iv)  tightened sanitary regulations for utensils, containers and packaging for food and food 
additives.  
 
18. Will Japan provide a transition period for these tightened sanitary regulations?  
 
RESPONSE  
Japan plans to provide a transition period for 5 years after the enforcement of the provision targeted 
to improve the regulation of apparatus, containers, and packaging for food and food additives; to 
introduce the Positive List system for the apparatus, containers, and packaging made of synthetic 
resins. During the period, apparatus, con tainers and packaging made of synthetic resins which are 
considered to be the same as those marketed in Japan at the point of the effective date, are allowed 
to be sold, produced or imported even if the substances used in those apparatus, containers and 
packaging are not listed in the Positive List.  WT/TPR/M/397/Add.1  
 
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Page 87 -88, Paragraph 3.128 and Box 3.2:  Japan cites to the summary of the amendment to 
the Food Sanitation Act, which describes a council composed of relevant parties of the national and 
local governments that the Minister of Health, Labour and Welfare (MHLW) may establish to prevent 
occurrence and expansion of interregional food poisoning cases.  
19. Please provide further details on: (1) the authority and coordination of this council; 
(2) how local and national go vernments will cooperate; and (3) how this council 
will interact with the listed agencies responsible for SPS measures in Box 3.2 .  
 
RESPONSE  
(1) Food Inspection and Safety Division, Pharmaceutical Safety and Environmental Health Bureau, 
Ministry of Health , Labour and Welfare  
(2) Local governments participate in the council as its members.  
(3) The relevant ministries and agencies will attend the council as needed and collaborate and 
cooperate.  
 
Page 88, paragraph 3.129:  The Secretariat Report notes that wh en violations of MRL standards 
are found in imported foods, Japan clarifies the increased surveillance measures for the targeted 
food and the requirements for lifting them. In doing so, it takes into consideration the test results 
and the status of control  for pesticide residues in the exporting country; measures are based on the 
relevant Codex guidelines and try to minimize the burden on the exporting country.  
 
20. Can Japan explain how any increased inspection and testing measures are risk -
based?  
 
RESPONSE  
As for the reinforcement of inspections of residual agricultural chemicals, in order to grasp the level 
of the use of agricultural chemicals, etc. by the exporting country, the MHLW will carry out 
monitoring inspections on a higher proportion for the import ed food and inspection item of concern 
so that violations of the Food Sanitation Act may be detected with a certain level of reliability from 
statistical viewpoint. The enhanced monitoring inspection will be lifted when the MHLW determines 
that there is no  longer a fear that the food violating the Act will be exported into Japan  
Also, in principle, when more than one violations have been detected with regard to residual 
agricultural chemicals as a result of the monitoring inspection of the imported food 
manufactured/processed by the same manufacturer/processor from the same exporting country, all 
or part of the imported food in question will be subjected to an inspection order, taking into account 
the regulations and sanitary controls being implemented in th e exporting country, the historical 
compliance record and other factors. The inspection order will be lifted when the MHLW determines 
that there is no longer a fear that the food violating the Act will be exported into Japan.  
 
3.3.3.2.4 Act on Livestock In fectious Diseases Control  
Page 89, Paragraph 3.136: We recognize that Japan maintains a Third Free Countries List which 
catalogues the countries/areas considered to be free from various livestock diseases and are, hence, 
eligible to export to Japan.   
 
21. Why is the United States not included on the list for cloven -hoofed animals and meat 
given its BSE negligible -risk status at the OIE?  
 
RESPONSE  
In Japan, there are two types of list of countries eligible for exporting ruminant products. One is the 
list of countries free from Rinderpest, Foot and Mouth Disease and BSE. The other list includes 
countries free from Rinderpest, Foot and Mouth Disease but with BSE. The US falls under the 2nd 
list of eligible countries for exporting beef and sheep meat to Japan.  
 
3.3.3.2.5 Agricultural Chemicals Control Act  
Page 90, Paragraph 3.138: Japan states that the Agricultural Chemicals Control Act was amended 
in 2018 and that amendments include the introduction of a re -evaluation system and the revision of 
evaluatio n for registration. Japan also states that, starting in April 2020, Japan will introduce risk 
assessment for pesticide operators and honeybees, and that target species of animals and plants 
will be added for ecological risk assessment.  
 
22. Please verify whether the proposed measures will apply when establishing maximum 
residue limits for domestic use  only or will they also apply for imported products . WT/TPR/M/397/Add.1  
 
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RESPONSE  
Pesticides are regulated under the Agricultural Chemicals Control Act if produced, imported, 
distributed or used in Japan.  
If the pesticide in question is registered in Japan, risk assessment will be conducted according to 
the domestic use in the re -evalu ation program, which should be based on new scientific data. As a 
result, the MRL of the pesticide, including that for imported products, may be altered.  
If the pesticide is not registered in Japan and its MRL is set only for imported products, the revisio n 
of the Act does not affect the MRL.  
 
23.  Please explain which specific species of animals and plants requiring ecological risk 
assessment  are to be added in April 2020 to Japan 's risk assessment for agricultural 
chemicals. What is the scientific basis f or adding these species?  
 
RESPONSE  
Freshwater aquatic plants (duckweed) and birds will be added in April 2020 for the ecological risk 
assessment under the Agricultural Chemicals Control Act. Experts concluded that the former are 
important habitats for fish  and crustaceans and have sensitivity to pesticides different from that of 
freshwater microalgae, while the latter have the risk of being exposed to pesticides through food 
intake. The testing methods for these species have been established by the OECD, an d many 
countries, including the United States, require the ecological risk assessment for these species.  
 
3.3.4 Competition policy and price control  
3.3.4.2 Price controls  
Page 95, paragraph 3.154:  According to the Secretariat report, the scope of the pric e-
maintenance premium (PMP) was narrowed to drugs deemed "truly innovative".  
 
24. What criteria is used to determine whether a drug is "truly innovative"?  
 
RESPONSE  
The price maintenance premium (PMP ) rewards truly innovative and beneficial drugs. The eligibility 
criteria for the PMP are as follows:  
・orphan drugs  
・drugs developed based on recruitment for applicant to address unapproved drugs of high medical 
need 
・drugs with innovation/beneficial premium  
・drugs with a new mechanism of action (limited to innovative or benefit -bringing product)  
In addition to the above, the following drugs will be added to the eligibility criteria from April 2020:  
・drugs for anti -microbial resis tant infections  
・drugs that have received SAKIGAKE designation  
・drugs which obtain an additional indication with a new mechanism of action (limited to innovative 
or benefit -bringing product)  
 
Page 95, paragraph 3.154, footnote 173:  According to the Secreta riat report, Japan will soon 
implement a new Health Technology Assessment.  
 
25. When will the Japanese government implement the new Health Technology 
Assessment (HTA)?  
 
RESPONSE  
Japan has formally implemented the cost -effectiveness evaluation system as a new H ealth 
Technology Assessment (HTA) in April 2019.  
 
26. What criteria will be used to determine whether a drug is cost -effective under the 
new HTA process?  
 
RESPONSE  
Incremental cost -effectiveness ratio (ICER) threshold is set at 5 million yen per quality -adjus ted life -
years (QALY). If the ICER is less than 5 million yen per QALY for a product, the price is not adjusted. 
If the ICER is between 5 million yen and 7.5 million yen per QALY (between 7.5 million yen and 
10 million yen per QALY), the price adjustment r ate increases stepwise. Finally, if the ICER is over 
10 million yen per QALY, the price is adjusted at the maximum rate.  
 WT/TPR/M/397/Add.1  
 
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3.3.6 Government procurement  
Page 101, paragraph 3.168: The Secretariat 's report  notes that it has no restrictions on the place 
of origin of products or the nationality of suppliers in government procurement.  
27. How does Japan determine country of origin when the government procures goods 
and services?  
 
RESPONSE  
Under the voluntary measures, Japan 's methodology on the determination and estimation of the 
country of origin is as follows:  
The country of origin of goods is determined based on the information provided by the suppliers. 
Such information includes countries of origin as indicated on the label attached to the pr ocured 
goods and those described in the contract notes or other documents such as import invoices, 
producer's invoices and B/Ls. The country of origin of services is determined based on the nationality 
of winning tenderers. A company whose foreign ownershi p is over 50% is regarded as a foreign 
business operator, and the nationality of the company determines the country of origin of services.  
 
28. Is there a specific law or regulation that promulgates a methodology that all 
government agencies must follow when d etermining origin?  
 
RESPONSE  
Under the voluntary measures, the origin is determined according to the guideline issued by the 
government, but there is no specific law or regulation for that purpose.  
 
29. Do individual government agencies have any discretion in making origin 
determinations?  
 
RESPONSE  
Under the voluntary measures, the origin is determined according to the guideline issued by the 
government. Individual government agencies do not have discretion in making origin 
determinations.  
 
30. How does origin cri teria for goods differ from the origin criteria for services?  
 
RESPONSE  
Under the voluntary measures, Japan 's methodology on the determination and estimation of the 
country of origin is as follows:  The country of origin of goods is determined based on the information 
provided by the suppliers. Such information includes countries of origin as indicated on the label 
attached to the procured goods and those described in the contract notes or other documents such 
as import invoices, producer's invoices and B/Ls. The country of origin of services is determined 
based on the nationality of winning tenderers. A company whose foreign ownership is over 50% is 
regarded as a foreign business operator, and the nationality of the company determines the country 
of orig in of services.  
 
3.3.7 Intellectual property rights (IPRs)  
3.3.7.1 Features and IP Strategy  
Page 107, paragraph 3.181:  The Secretariat report notes "modifications to litigation procedures 
and damages calculations intended to facilitate the enforcement of I PRs."  
 
31. Can the Secretariat reference the specific modifications to litigation procedures 
stated above? What were the changes to the calculations for damages?  
 
RESPONSE  
1. Strengthening of evidence collection procedures  
A system (inspection system) was established such that, if infringement of patent right is suspected, 
a neutral technical expert enters the plant or other premises of the alleged infringer to conduct 
necessary examinations and submit a report to court, under rigorous requirements.  
2. Revi ew of damages calculation method  
*Similar measures have also been taken for the Utility Model Act, Design Act and Trademark Act.  
(a) For the portion of the profits made by the infringer whose need for compensation was denied on 
the basis that it was beyond  the patent rights -holder 's production/sales capacity, etc., the revision 
has enabled the rights -holder to claim damages by deeming that it had licensed the portion to the 
infringer.  WT/TPR/M/397/Add.1  
 
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(b) The revision clearly states that damages calculation can take into co nsideration the amount likely 
to have been determined if negotiations were conducted assuming patent rights infringement when 
a court determines the amount equivalent to the amount of money to be received for the 
implementation of the patent invented.  
 
32. Has the Secretariat tracked any recent court cases or decisions in which the new 
calculations were used in determining damages?   
 
RESPONSE  
No. The revised act will come into force from 1 April 2020.  
 
3.3.7.2 Policies on promotion and commercialization of inno vation  
Page 109, paragraph 3.189:  According to the Secretariat report, the JPO offers "super -accelerated 
examination" to start -ups, so they can obtain patent rights within one month for inventions that are 
already being worked.  
 
33. What requirements must an entity satisfy to qualify as a "start -up"?  
 
RESPONSE  
All or some of the applicants must satisfy any one of the following conditions from (i) to (iii) below.  
(i) a sole proprietorship which has not been established for over 10 years;  
(ii) the number of emp loyees regularly employed are 20 or less (5 or less for businesses mainly 
composed of commercial and service -related businesses), 10 years have not passed since the 
establishment, and the corporation is not controlled by another corporate body; or  
(iii) th e amount of capital fund or the total of financial contribution does not exceed 3 million yen, 
10 years have not past since the establishment, and the corporation is not controlled by another 
corporate body.  
"Not controlled by another corporate body" means  it is applicable to a. and b. below:  
a. No other single corporate body or person besides the applicant owns more than half of the 
authorized shares or total contribution in stocks or as invested funds.  
b. Several corporate bodies or persons other than th e applicant do not own more than 2/3 of the 
authorized shares or total contribution in stocks or as invested funds.  
 
34. How does the JPO define an invention that is "already being worked"? What must 
an Applicant provide to demonstrate that an invention is "a lready being worked"?  
 
RESPONSE  
The JPO  defines an "already being worked" invention as one which has already commercialized or is 
planned to commercialize within two years from the date of a request for super -accelerated 
examination. Applicants are required to explain that the invention is "alr eady being worked" in the 
request form.  
Page 109, paragraph 3.189:  According to the Secretariat report, in 2018, the JPO established the 
"IP acceleration programme for start -ups", which dispatches expert teams of venture capitalists, 
business consultants, and attorneys to provide hands -on support in the early stages of development 
to selected start -ups.  
 
35. What criteria does the JPO use to select start -ups for the IP acceleration program? 
At present, how many applications have been received for admission int o this 
program? At present, how many start -ups have been accepted?  
 
RESPONSE  
Start-ups were selected based on some criteria such as the potential of business and the necessity 
of support to develop IP strategy. In FY2019, 111 start -ups applied for the pro gram and 15 start -
ups were selected.  
 
36. Could Japan provide additional information about the specific services offered to 
selected start -ups?  
 
RESPONSE  
The following types of support are offered in IPAS:  
1. Diagnosis/development of business models and seeds  strategies, etc.:  WT/TPR/M/397/Add.1  
 
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Identify customers and values provided and identify competitive advantages and specific policy of 
development.  
2. IP strategies development support: Develop IP policies on protection, utilization, licenses, and so 
on. 
3. Support for appl ication strategies for seeds: Select seeds for which IP rights should be acquired 
and input appropriate process to file an application  
 
37. Have participants favorably reviewed the program? Does the JPO plan to continue 
accepting new start -ups into the program ?  
 
RESPONSE  
The program has been highly reviewed with positive feedback. One of the participants commented, 
"We received beneficial advice based on a wealth of experience, including advice on the positioning 
of intellectual property in business strategy, application strategy and negotiation strategy". The 
program is planned to accept 15 new start -ups in FY2020.  
 
Page 109, paragraph 3.190:  According to the Secretariat report, Japan launched several 
initiatives in response to increasing disputes over standard essential patents (SEPs).  
 
38. What initiatives have been launched to address the disputes over SEPs?  
 
RESPONSE  
Please refer to paragraph 3.191 of the Secretariat Report (WT/TPR/S/397).  
 
Page 109, paragraph 3.191:  According to the Secretariat report, the JPO expanded its "Hantei" 
adviso ry opinion service on whether a patent claim reads on a product, to offer opinions on standard 
essentiality in April 2018.  
 
39. How many advisory opinions on standard essentiality have been requested since 
the JPO began offering the opinion service in April 20 18? How many advisory 
opinions on standard essentiality have been issued?  
 
RESPONSE  
There is no request for Hantei (Advisory Opinion) for essentiality check at this time.  
 
Page 110, paragraph 3.195: MAFF and MHLW recently developed policies and guidelines  for 
agricultural products and foods derived from genome editing technology. These guidelines request 
product developers submit to a voluntary consultation and notify new products to MAFF and MHLW 
without legal obligation.  
 
40. How will Japan ensure the equal  execution of voluntary consultation and notification 
by developers with varied experience, resources, understanding, and who may not 
be aware of the guidelines?  
 
RESPONSE  
MAFF (for safety of animal feed and protection of biodiversity), MHLW (for food safe ty) and the 
Ministry of Environment (for protection of biodiversity) have published guidelines requesting 
developers and users  to notify the respective Ministry about organisms or products derived from 
genome editing technology. Organisms or products obtained through recombinant DNA technology  
are not subject to the notification. The competent authorities are going to continuously explain that 
such notification helps business operators and consumers to obtain a better understanding of the 
new technology to developers and users. The authorities will also instruct developers and users to 
submit the notification in case they are dealing with unreported organisms or products in Japan.  
Foreign developers and users  handling such organisms or products  to export them to Japan are also 
requested to submit the notification. The authorities make the notification procedures widely known 
by posting relevant information in English on their website and providing it to foreign embassies in 
Tokyo. It would be ap preciated if the U.S. could inform the procedures to those who export such 
organisms or products to Japan of the procedures.  
The organisms that contain foreign nucleic acid or the products that contain foreign gene and its 
parts, even if they are derived f rom genome editing technology, are regulated under relevant acts 
on organisms or products obtained through recombinant DNA technology. In case such organisms WT/TPR/M/397/Add.1  
 
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or products are found to be distributed illegally in Japan, penalties may be applied and the name of 
the violator may be made public.  
 
3.3.7.5 Patents  
Page 114, paragraph 3.210:  According to the Secretariat report, accelerated examination is 
available upon request for applications made by SMEs, applications that have been filed in more 
than one country , and applications for inventions that have already been put into practice.  
 
41. How does the JPO  determine whether an invention has "already been put into 
practice"? Is this standard different from the "already being worked" requirement 
for super -accelerated examination, discussed on page 109, paragraph 3.189 of the 
Secretariat report. If so, how?  
 
RESPONSE  
The "already being worked" requirement for super -accelerated examination is identical to the 
"already been put into practice" requirement for accelerated examination.  
 
3.3.7.9 Geographical indications  
Page 119, paragraph 3.234:  According to the Se cretariat Report, the 2018 amendments to the 
"2014 Act on Protection of the Names of Specific Agricultural, Forestry and Fishery Products and 
Foodstuffs" were enacted in response to the EU -Japan EPA and provide for a transition period, during 
which prior g ood faith use of an identical or similar GI may be continued for up to seven years 
following the registration or designation of a GI. The Secretariat Report also notes that the 
amendments provide for the co -existence of trademarks registered in good faith and later in time 
GIs. 
 
42. What will happen to those goods which have been using a name in good faith that 
is identical or similar to a later GI? Will these products have to be 
renamed/relabeled or will they be pulled from the market? Please provide 
clarifica tion on the policy reason for denying the continued use of a name that has 
been used in good faith and will now be phased out after seven years.  
 
RESPONSE  
A name which is identical or similar to registered GI should be removed or erased seven years after 
the registration or designation of that GI even if that name has been used in good faith. This 
restriction is necessary to maintain high -level GI protection, through prevention of free -ride on GI 
including prior uses.  
 
43. Will Japan consider evidence that a pa rticular term is considered generic by the 
consumer as part of its analysis in determining whether to protect a term as a GI? 
If so, how does this analysis reconcile with the phasing out after seven years?  
 
RESPONSE  
In examining GI registration and design ation, we consider whether consumers recognize the applied 
names are used as generic term or not, taking into account the information in Japanese dictionaries, 
newspapers and websites, etc.  
 
44. How will the exclusive rights of trademarks as guaranteed by Arti cle 16.1 of the 
TRIPS Agreement be preserved if co -existence with a later in time GI is permitted?  
 
RESPONSE  
In case of the application for registration or designation of a GI which is identical or similar to 
registered trademarks, the name is registered o r designated as GI only when the consent of the 
trademark right holder (and exclusive licensee) was obtained.  
 
3.3.7.1 Copyright  
Page 120, paragraph 3.239:  The Secretariat 's Report states that "new flexible limitations were 
introduced, to respond to digitization and networking." The Report continues by explaining that the 
amendments permit the "free use of a copyrighted work" to "test technology for the use of the 
copyright work; analyze information; or process information using a computer without human 
recognition."  WT/TPR/M/397/Add.1  
 
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45. Please explain how these uses comply with the three -step test, including how such 
use (i) does not conflict with a normal exploitation of the work and (ii) does  not 
unreasonably prejudice the legitimate interests of the author. Moreover, it is our 
understanding that included in the new legislation was language indicating that the 
precise boundaries and scope of the new exception contained in Article 47 -5 of the 
Copyright Act would be subject to a future Cabinet Order. Is that true/accurate? If 
yes, could you tell us whether that Cabinet Order has been drafted and released 
and, if so, summarize its substantive content?  
 
RESPONSE  
As described in Articles 30 -4, 47-4, and 47 -5, these newly introduced articles are applicable only to 
certain purposes or cases. Therefore, they fall into "special cases" and satisfy the first step.  
In addition, since these purposes or cases are considered not to be normal usage of works, th ey do 
"not conflict with a normal exploitation of the work" and are consistent with the second step.  
Moreover, since each of these articles has a proviso that it does not apply if the action would 
unreasonably prejudice the interests of the copyright owner , they comply with the third step.  
Article 47 -5 (1) (iii) defines an action subjected to limitation of rights as "an action that Cabinet 
Order prescribes as contributing to increased convenience in the lives of the citizenry by creating 
new knowledge or in formation through computerized data processing and making the results of this 
available".  
Since demand for new services can emerge upon further development of digitization and networking, 
this Article was introduced so that usage of works included in serv ices, other than the usage defined 
in Article 47 -5(1)(i) or Article 47 -5(1)(ii), can be subject to limitation of rights by prescribing it in a 
Cabinet Order.  
No order regarding this subparagraph has been stipulated so far.  
 
Page 120, paragraph 3.240:  The S ecretariat 's Report mentions that a recent revision to the 
Copyright Act "enhances opportunities for persons with disabilities to access information." Please 
describe how "disability" is defined under the recent amendment and for what types of information 
is access enhanced.  
 
46. If this language refers to the Marrakesh Treaty implementation, please describe 
the requirements to be an authorized entity under Japanese law and what 
exclusive rights are covered.  
 
RESPONSE  
As pointed out in the question, this lang uage refers to the Marrakesh Treaty implementation.  
Japan revised the Copyright Act regarding beneficiary person of the limitations provisions for persons 
with visual impairments, etc. (Article37(3) of the Copyright Act) in order to clarify that physically  
handicapped persons are subject to this paragraph, in addition to persons for whom it is difficult to 
perceive visual renderings due to a visual impairment or developmental disorders.  
Japan also revised the Act regarding an action subjected to the above l imitations by adding sending 
by e-mail newly, in addition to the right of reproduction, transfer, and "automatic public 
transmission" (such as transmission over the Internet).  
Before the amendment, establishers of public facilities, for example facilities for persons with 
disabilities and libraries, and an organization individually designated by the Commissioner of the 
Agency for Cultural Affairs, etc. had been the body that could transliterate books for persons with 
visual impairments, etc. without permiss ion of the copyright owners. Due to the amendment, the 
body who satisfies certain requirements without designation by the Commissioner of the Agency for 
Cultural Affairs was newly added to the subject of the provision in order to include volunteer 
organiza tions with appropriate systems in the organizations.  
In Japan, entities stipulated in each item of Article 2, paragraph (1) of the Enforcement Order of the 
Copyright Act constitute an "authorized entity", and specifically these include the following: libra ries 
of universities and other higher education institutions, the National Diet Library, public libraries, 
libraries of schools or other equivalent institutions, facilities for children with disabilities, child 
developmental support centers, nursing homes for the elderly, and facilities for persons with 
disabilities as well as corporations that conduct the business of providing information to visually 
impaired persons etc. and which meet certain conditions.  
 
Page 120, paragraph 3.242:  The Secretariat 's Report states that the Japanese Society for Rights 
of Authors, Composers and Publishers (JASRAC) "tried to revise royalty rules for the collection of WT/TPR/M/397/Add.1  
 
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usage fees for music performed in music classes" but that JASRAC collected the fees "on ly from 
music classes that accepted the new royalty rules."  
 
47. Please explain the reasoning  behind collecting royalties only from these particular 
music classes.  
 
RESPONSE  
The ACA did not suspend implementation of the new royalty rules in the arbitration of the 
Commissioner for Cultural Affairs.  
On the other hand, since the dispute between JASRAC and some of music classes as to whether a 
performance in a music class falls into the category of a performance stipulated in the Copyright 
Acts was i n litigation, the Commissioner for Cultural Affairs provided administrative guidance to 
JASRAC to refrain from collecting royalties from the parties that did not accept the new royalty rules 
until the court would make the final decision.  
Therefore, JASRAC  currently collects the fees only from music classes that accepted the new royalty 
rules.  
 
Page 120, paragraph 3.243:  The Secretariat 's Report states that the reason for the high number 
of compulsory licenses granted by ACA for the legal use of orphan work s (47,699 in FY 2016) is that 
"mass applications are made in batches every few years."  
 
48. Please explain who is submitting such requests, for which purposes, and what the 
legal requirements are to grant such a license.  
 
RESPONSE  
The National Diet Library s ubmits a large number of requests for compulsory licenses every few 
years in order to archive digitally the old works from the late 1860s to early 1920s whose right 
holders are unknown.  
Article 67 of the Copyright Act permits a person to exploit a work in  the manner provided for in a 
compulsory license issued thereto by the Commissioner of the Agency for Cultural Affairs, after 
depositing compensation for the copyright owner in a case in which the author of the work cannot 
be contacted even after a conside rable effort.  
 
4 TRADE POLICIES BY SECTOR  
4.1.1 Agriculture, Forestry, and Fisheries  
Page 125, paragraph 4.1: The Secretariat Report 's section on "Agriculture, Forestry, and 
Fisheries" does not include a "Forestry" section.  
 
49. The Plywood, Lumber, and Glulam International Competitiveness Enhancement 
Measure was established in the 2018 supplemental budget. Please provide 
information on ho w the allocated budget was spent and how it affected Japan 's wood 
production?  
 
RESPONSE  
The budget for this measure was spent for some programs as below;  
- provide guidance and support for local communities to coordinate and integrate forest management 
areas/groups  
- provide guidance and support for wood processing mills to improve productivities and to shift their 
products to more value -added ones  
- conduct the surveys on Japanese wood -related business entities behaviors under the Clean Wood 
Act, Act on Promotion of Use and Distribution of Legally -Harvested Wood and Wood Products.  
With regard to the second question, it is difficult to evaluate how the measure has affected to Japan 's 
wood production so far.  
 
4.1.1.3 Institutional and legal framework  
Page 129, paragraph 4.12: The Secretariat 's Report states that MAFF is responsible for agricultural 
policy, including agricultural insurance . Japanese vegetable farmers can access multiple crop 
insurance program mes, such as the Income Insurance Program, the Agricultural Mutual Aid, and 
Vegetable Price Stabilization Program.  
 
50. Please provide detail on how these program mes differ.  
 WT/TPR/M/397/Add.1  
 
- 62 - 
 
RESPONSE  
The three insurance policies are accessible to producers, but if a producer selects the Income 
Insurance Program, he/she cannot also select Agricultural Mutual Aid or the Vegetable Price 
Stabilization Program.  
The Income Insurance Program: all products are  eligible. The income loss of individual producers 
will be compensated for various risks that cannot be avoided by individual producers, such as natural 
disasters and price declines, among others.  
The Agricultural Mutual Aid: The income loss from reduced h arvest due to natural disasters and 
other risks.  
Vegetable Price Stabilization Program: The price gap will be compensated when actual wholesale 
market prices go below the average market price in the past. The coverage is only for pre -designated 
vegetables.  
 
51. How much overlap is there among beneficiaries of these programs?  
 
RESPONSE  
There is no overlap when a producer selects the Income Insurance Program as explained in the 
response to Q uestion 50. There is no information available on the overlap between the Agricultural 
Mutual Aid and Vegetable Price Stabilization Program.  
 
4.1.1.5.1 General support programmes  
Page 134, paragraph 4.30:  According to the Secretariat Report, Japan 's Agricultural Mutual Aid 
System (AMAS) "provides compensation for losses caused by natural disasters (including from 
extreme weather), diseases, and other events." The Revenue Insurance Program (RIP) "is a 
voluntary insurance system, designed to compensate farmers in the event of revenue decreases."  
 
52. Japan 's most recent domesti c support notification to the WTO notifies the 
Agricultural Insurance Scheme and Crop Income Stabilization Payment program mes. 
Were either or both these programs replaced by the Revenue Insurance Program in 
2019 or is RIP an additional crop insurance progr amme; if so , will it be notified in 
addition to these two program mes and when, e.g. in Japan 's 2019 domestic support 
notification? If RIP is an additional crop insurance program me to the two 
aforementioned programs, how does it differ from those program mes? 
 
RESPONSE  
The Revenue Insurance Program was additionally established, and the current two programs remain 
available they used to be.  
The new program, Revenue Insurance Program, will be notified in FY2018 DS1 notification that will 
cover domestic supports in FY2018, together with the two program mes. 
 
4.1.1.5.3.1 Rice  
Page 138, paragraph 4.40: As a contingency reserve, the GOJ holds approximately one million 
metric tons of domestically produced rice by purchasing approximately 200,000 MT annually th rough 
tenders, holding it for five years, and selling the five -year-old rice for processing, feed, or donating 
it as food aid.  
  
53. Can Japan explain how MAFF sets the purchasing price each year? Please include 
any measures governing administration including  price determinations.  
 
RESPONSE  
Purchase prices of rice for government stock are decided by the result of tendering. MAFF  sets 
maximum purchase prices reflecting domestic market prices of rice for the predetermined purchasing 
quantity.  
 
54. It is the United States understanding that MAFF regulates the use of rice for 
processing. Categorizing rice by (1) rice that has received su pport payments; (2) 
GOJ reserves; and (3) market access rice, all three types of rice may be used for all 
types of processed rice products, apart from one category. Why are GOJ reserve rice 
and market access rice excluded from use in the category named "Pr ocessed rice 
(sealed packaged retort rice and frozen rice, etc. containing 3 percent of meat, fish, 
crustacean, and mollusk)", which can be preserved more than two months?  
 WT/TPR/M/397/Add.1  
 
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RESPONSE  
Rice imported under the SBS system as a part of Minimum Access rice is abl e to be used for 
"Processed rice such as sealed packaged retort rice and frozen rice" cited in the question. 
Government stock rice is basically not sold for processing use.  
 
Page 138, paragraph 4.42: According to the Secretariat Report, the Government of J apan 
introduced the Rice Overseas Market Expansion Project, to mitigate the impact of decreasing 
domestic rice consumption on farmer 's incomes.  
 
55. Can Japan provide further detail on this project and how it is increasing Japanese 
rice exports?  
 
RESPONSE  
MAFF  has encouraged the export of rice by releasing the list of motivated exporters and producers 
to promote matching between production areas and exporters.  
 
4.1.1.5.3.2 Other cereals, sugar beet, starch potatoes, buckwheat, and rapeseed  
Page 139, paragraph 4.44: Under CPTPP, the Japan -EU EPA and the U.S. -Japan Trade Agreement, 
MAFF has committed to reducing markups for state -traded wheat and barley. We understand that 
the GOJ revenue from markup collection is used to support domestic whea t and barley production.  
 
56. Does the GOJ  intend to maintain the level of support for domestic wheat and barley 
production despite the expected reduction in markup revenue?  
 
RESPONSE  
Based on the Act on Payment of Grants to Farmers for Purpose of Stabilization of Farming 
Management, Japan intend s to maintain the support for constant below -cost sales of domestic wheat 
and barley production.  
 
4.1.1.5.3.5 Livestock and livestock products  
Page 140, paragraph 4.53: The Secretariat Report lists four categories of calves included in the 
administered pri ces payment system.  
 
57. Why does the list not include "other beef breed" calves which have a guaranteed 
price of 314,000 yen per calf and a target rationalization price of 249,000 yen?  
 
RESPONSE  
Being quite limited in the number of cases, the category for "o ther beef breed" calves was not 
covered in the report. The guaranteed price (314,000 yen) and the target rationalization price 
(249,000 yen) were correct in number, the latter of which is the revised price in FY2018 after the 
entry into force of TPP11.  
 
Page 141, paragraph 4.54: According to the Secretariat Report, Japan increased support for 
domestic pork producers by expanding the Hog Growers Business Stabilization Measure.  
 
58. Please confirm the last time payments were issued under the  Hog Growers Business 
Stabilization Measure and the value of those payments.  
 
RESPONSE  
There has been no actual payment made yet under the Hog Growers Business Stabilization Measure.  
 
59. Can Japan please provide details of the Beef Livestock Stabilization Pro gram =, any 
changes during the reporting period, the last time payments were issued, and the 
value of those payments?  
 
RESPONSE  
The changes during the period are as follows:  
- compensation rate: 90% (80% originally), 1 April 2018  
- legal status strengthened at the time of entry into force of TPP11, 30 December 2018  
The most recent payments: 2203 million yen for the sales during July and September 2019.  
 WT/TPR/M/397/Add.1  
 
- 64 - 
 
Page 141, paragraph 4.55: According to the Secretariat Report, payments are made to egg 
produc ers under contract, calculated as 90% of the difference between the baseline price 
(JPY 185/kg in FY2019) and the average trading price, multiplied by the quantity of eggs sold.  
 
60. Can Japan please confirm the last time payments were issued under the  Price 
Stabilization Fund for Eggs and the value of those payments?  
RESPONSE  
The amount paid until now under the Price Stabilization Fund in FY2019 (Apr -Mar) is 1.28 billion 
yen. These payments took place in April, May, June, July, August 2019 and January 2 020. 
(Note) The payment for January is still being processed and is thus not included in the said amount 
of 1.28 billion yen.  
 
4.1.1.5.3.6 Dairy  
Page 141, Paragraph 4.59: The Secretariat Report notes that TRQ fill rates in FY2017/18 were 
low for skimmed mi lk powder, prepared whey (for infant formula), and butter and butter oil.  
 
61. Please provide the respective fill rates and any changes in measures or 
administration responsible for lower fill rates.  
 
RESPONSE  
Some quotas, such as "skimmed milk powder for sch ool lunches", "prepared whey (for infant 
formulas)" and "butter and butter oil", have been unfulfilled as the domestic consumption related to 
these quotas have not been increasing. Regarding the respective fill rates, please refer to Table 4.6. 
The realloc ation scheme has been introduced and implemented.  
 
Page 141, Paragraph 4.60: The Secretariat Report describes the farm business stabilization fund, 
which compensates producers of milk for processing whenever prices fall below the average for the 
previous t hree years.  
 
62. Please confirm the last time payments were issued under this program and the value 
of those payments.  
 
RESPONSE  
Under the farm business stabilization fund, the last payment was made in 2006 and the value was  
2.6 billion yen.  
 
4.1.2 Fisheries  
4.1.2.2 Policy and institutional issues  
Page 146, paragraph 4.74:  According to the Secretariat report Japan has set a self -sufficiency 
ration of 70% for fisheries. Japan aims to increase productivity to help industry grow through 
enhancing fisher ies sustainable management.  
 
63. How many of Japan 's targeted fish stocks are now subject to an independent 
scientific stock assessment  and management plan?  
 
RESPONSE  
As of 2019, 87 stocks are subject to stock assessment.  Based on these assessments, various 
resource conservation and management measures are taken at national, prefectural, and local 
levels.  
 
64. How many of these fisheries that are targeted are underfished?  
65. How many of these fisheries are fully or over fished?  
 
RESPONSE  
ForQ64  and 65: In practice, fish stocks assessed are categorized into high, medium, and low stocks, 
taking account of the historical trend of the resource abundance index over more than 20 years. Out 
of these 87 stocks, as of 2019, 20 stocks are high, 30 stocks are medium, and 37 stocks are low 
level.  
 
66. What percentage of this increase in self -sufficiency will be coming from 
aquaculture?  
a) What percentage will be coming from marine wild capture?  WT/TPR/M/397/Add.1  
 
- 65 - 
 
b) What percentage will come from access agreements with other countries  or 
from shared stocks that are managed jointly with other countries?  
 
RESPONSE  
There is no data available for detailed shares (percentages in the sub -categories) for the increase in 
self-sufficiency.  
Page 146, paragraph 4.77:  
 
67. Why are the resource management  plans voluntary?  
 
RESPONSE  
The resource management plans in this context are developed and implemented by fishermen as a 
self-management initiative. This self -management is complementary to a series of fisheries 
regulations  by the central government and prefectural governments.  
 
68. How does the system of individual  quotas and the total allowable catch relate to 
the fishing rights plan?  
 
RESPONSE  
The fishery rights plans to be developed by the prefectural governor every five years prior to license 
fishery rights. Fishermen who operate based on fishery rights are also subject to the IQ and TAC 
systems.  
 
69. What is the measure of control, e.g. how will Japan prevent overfishing, under the 
fishery rights plan if the prefectural  governor only has to consider if a new plan 
would increase the fishery production in the waters of the prefecture?  
 
RESPONSE  
For the purpose of preventing overfishing, the prefectural governor is not authorized under domestic 
law to develop any fishery ri ghts plan which may obstruct reproduction of fishery resources.  
 
70. To what extent do the Fisheries Cooperative Associations play a role in setting 
catch limits at the prefecture level? What happens  when a Fisheries Cooperative 
Association disagrees with the catch limits recommended by a scientific 
assessment? How often are catch limits set above the catch limits recommended 
by the scientific assessment?  
 
RESPONSE  
Minister of Agriculture, Forestry and Fisheries sets the national catch limit (TAC) based on the results 
of the scientific assessment. Fisheries Cooperative Associations, as one of the stakeholders, can 
make comments on the draft of catch limits. Since 2016, no catch limits have been set above the 
ones recommended by the scientific assessment.  
 
71. How wi ll individual  quotas be enforced? What fisheries will not be subject to a TAC? 
How will IQs be determined?  
 
RESPONSE  
Individual quotas will be enforced in accordance with the revised Fisheries Act. IQs are to be 
determined and allocated to fishermen based on the catch performance in the past fishing seasons 
and other factors as necessary. Consumption of IQs are monitored by the government during the 
fishing season. All fisheries are subject to the TAC system.  
 
4.1.2.4 Stock management  
Page 146, paragraph 4.77:  The Secretariat Report notes that Japan "promulgated the first 
substantial revision of the Fisheries Act" in 2018 and "The revised Act will enter into force at the 
latest on 14 December 2020."  
 
72. How will the revision affect import quotas on fisheries products ( page 67, Table 3.6 )? 
 
RESPONSE  
This revision as such does not affect import quotas on fisheries products.  
 WT/TPR/M/397/Add.1  
 
- 66 - 
 
4.1.2.5 International agreements  
Page 147, paragraph 4.79:   
 
73. Does the Japanese government provide any particular support solely to those 
fishers with private -sector -based access agreements?  
 
RESPONSE  
No. The Japanese government does not provide such support.  
 
74. Do the fishers with private -sector -based access agreemen ts pay a market price for 
access rights? If so, how is the price for access determined?  
 
RESPONSE  
Yes. Such fishers pay for access rights and the price is determined through  negotiations with each 
country 's private organization periodically . 
 
Page 147, paragraph 4.82:  Japan announced its withdrawal from IWC.  
 
75. How many whales does Japan intend to harvest each year? What species and from 
where?  
 
RESPONSE  
Catch quotas are set within the catch limits calculated in line with the scientific method develop ed 
and adopted by IWC.  
Catch quotas of each species for the commercial whaling are as follows;  
- Year 2020 initial quota (from 1 January to 31 December) are 120 for Minke whale, 150 for Bryde 's 
whale and 25 for Sei whale.  
The whaling operations are conduc ted within Japan 's territorial sea and its exclusive economic zone.  
 
76. What actions is Japan taking over stockpiles of Sei whales that were introduced 
under Introduction from the Sea (IFS) certificates prior to Japan 's agreement at 
CITES Standing Committee 70 that IFS of Sei whale meat and blubber from the 
North Pacific population was not in compliance with Article III, paragraph 5(c), of 
CITES.  
77. What measures  is Japan taking to ensure that remaining stockpiles of Sei whales 
are not being used for p rimarily commercial purposes?  
 
RESPONSE  
for Q.76 and 77: Japan 's explanation regarding the introduction from the sea of sei whale can be 
found in the Summary Record of the 70th meeting of the Standing Committee. Japan will report on 
the treatment of the sp ecimens of sei whale meat and blubber introduced from the sea at CITES 
Standing Committee (SC) 73 as requested by the Standing Committee at SC71.  
 
4.1.2.6 Border and domestic support measures  
Page 147, paragraph 4.85:  
 
78. What benefits and subsidies do fish and fish products receive from the Japanese 
system of export support and promotion?  
 
RESPONSE  
As shown in para 3.74, the Japan External Trade Organization (JETRO ) promotes exports of food 
products from Japan, including fisheries products. In this regard, exporters of fisheries products can 
receive services from JETRO such information related to as overseas market and international trade 
fairs. As shown in para 3.6 9, Japan has no export subsidy programmes in place.  
 
Page 148, paragraph 4.86; table 4.15: According to the Secretariat 's report" Japan notified 
programs which, in its view, may not constitute subsidies under Article 1 of the SCM Agreement or 
may not be "s pecific" under Article 2 of the same Agreement."  
 
79. Table 4.15  is significantly different from Japans prior notifications to the WTO. 
Can Japan explain what programs it is now including that were not included before 
and where the additional funding is direct ed?  WT/TPR/M/397/Add.1  
 
- 67 - 
 
RESPONSE  
Japan submitted a wider range of notification on fisheries subsidies in 2019 in order to enhance 
transparency in light of the notification obligation set out in paragraph 2 of Ministerial Decision in 
the 11th Ministerial Conference. This noti fication includes certain fisheries related government 
expenditures that may not constitute "subsidies" under Article 1 of the SCM Agreement or may not 
be "specific" under Article 2 of the Agreement in addition to the programs that had been notified in 
the prior notifications.  
 
80. Are there subsidies tied to, or contingent upon distant water fishing? Overall, how 
much of the subsidies go to building fleet capacity in the Japanese fishing fleet?  
 
RESPONSE  
The answer to the former question depends on the legal interpretation of "tied to, or contingent 
upon". With regard to the latter question, Japan has government support programs related to fishing 
vessels, but they are planned and implemented as a package of comprehensive measures of fisheries 
policy. Because the total amount of "subsidies go to building fleet capacity" depends on how such 
term is precisely defined and calculated accordingly, we cannot provide the definitive answer.  
 
Page 148, paragraph 4.86: Promotion of regional development through fisheries  
 
81. What type of subsidies are given to the "revitalization of fishing communities in 
remote islands " and what do they support?  
 
RESPONSE  
For fishing communities in remote islands, Japan supports such as activities facilitating consultation 
among stakeholders  for revitalization of fisheries, recruitment and settlement programs for new 
fishermen, and conservation and management of fishing grounds and stock enhancement.  
 
Page 148, paragraph 4.86: The support of establishment of environmentally and 
economically sustainable fisheries  
 
82. What specific types of structural reforms does the government support not related 
to catching fish?  
 
RESPONSE  
For example, Japan supports programs such as scrapping of fishing vessels and cessation of fishing 
activities as a result of tightened resource management, as well as improvement of working and 
safety conditions of crews on board.  
 
4.4 Services  
4.4.4 Transport services  
4.4.4.1 Maritime transport  
4.4.4.1.1 Market overview  
Page 175, paragraph 4.211:  
 
83. Per Table 4.22 , can you confirm that the first sentence reflects the percentages of 
"merchandise" imports and exports, rather than total exports and imports.   
 
RESPONSE  
Japan confirms that the first sentence reflects the perce ntage of imports and exports of merchandise.  
 
4.4.6 Distribution services with a specific focus on e –commerce  
Page 187, paragraph 4.271:  
 
84. Does Japan consider the 7 -Eleven company to be "foreign owned"?  
 
RESPONSE  
Japan does not consider 7 -Eleven, Inc. as foreign -owned. Seven & i Holdings Co., Ltd. owns 100% 
of equity of 7 -Eleven, Inc. Please see page 3 of financial statements of Seven & i Ho ldings Co., Ltd.  
https://www.7andi.com/en/ir/file/library/co/pdf/2019_01.pdf . 
 WT/TPR/M/397/Add.1  
 
- 68 - 
 
85. How does Japan consider parent companies in determining whether companies are 
foreign or domestically  owned?  
 
RESPONSE  
Since this question is too vague for Japan to provide an answer, Japan requests to make it more 
specific. What kinds of regulations and what regulatory processes does it discuss in relation to the 
ownership of a company?  
 
  WT/TPR/M/397/Add.1  
 
- 69 - 
 
BRAZIL  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
II TRADE POLICY REVIEW: TRADE AND INVESTMENT REGIMES  
Page 41 (Para 2.14 - 2.17)  
 
RTAs  
 
Questions:  
1.  Japan has adopted a very ambitious external trade policy during the last decade, having signed 
bilatera l trade agreements with sixteen countries, besides the European Union and the Association 
of Southeast Asian Nations, as well as being a member of the Trans -Pacific Partnership. As a 
traditional partner in our bilateral relationship, Brazil congratulates J apan on its proactive stance in 
the promoting free trade. In that sense, the Brazilian delegation would be interested in hearing a 
prospect on which principles and goals will be guiding Japan 's external trade agenda for the next 
decade, especially regardin g trade agreements and market access.  
 
RESPONSE  
Japan aims to take the lead in establishing comprehensive, balanced and high -level global rules 
through the conclusion and expansion of high -quality EPAs.  
 
2. Would Japan consider entering a new bilateral ag reement with other trading partners, in 
particular with Mercosur countries? What criteria will Japan take into account to assess which 
countries it wishes to negotiate future agreements with?  
 
RESPONSE  
In general, Japan assesses new EPAs comprehensively f rom both an economic and diplomatic 
strategic perspective.  
It is important for Japan to further strengthen trade and investment relations with Mercosur 
countries with which Japan traditionally maintains friendly relations.  
 
II TRADE POLICY REVIEW: TRADE POLICIES AND PRACTICES BY MEASURE  
Page 57 (Para 3.24 and its footnote 26)  
 
Tariffs  
 
Questions:  
3.  The average tariff for agriculture products raised from 16.3% in FY2016 to 17.9% FY20219. 
What are the reasons for this increasing and which tariff lines are responsible for most of the 
increase?  
 
RESPONSE  
No changes have been made to the MFN rates of agr icultural products from FY2016 to FY2019.  
While Japan has not been fully informed of how the Secretariat calculated the average tariff rates in 
the report, Japan considers that AVEs might be calculated for non -ad valorem duties. Therefore, the 
reason for t he identified changes could be the changes in prices of the goods in question (not the 
changes in applied tariff rates themselves).  
 
4. The simple average tariff for all AVEs is at 37.3%, significantly higher than the previous Review 
figure (32.7%). What a re the reasons for this increasing and which AVEs are responsible for most 
of the increase?  
 
RESPONSE  
Although it is not clear how "non -ad valorem duties" are calculated in the Secretariat Report, Japan 
had not changed specific duty rates from FY2016 to F Y2019. Decrease in import unit values may 
have led to increase in the valorem equivalent rates.  
 
5.  Would Japan provide data for the 158 AVEs not included in the tariff analysis mentioned in 
paragraph 3.24 and its footnote 26?  
 WT/TPR/M/397/Add.1  
 
- 70 - 
 
RESPONSE  
It is not clear h ow the Secretariat Report calculated the 648 AVEs, so our side is not able to identify 
what 158 AVEs are.  
 
Page 87 (Para 3.124)  
 
SPS Measures / OIE rules  
 
Japan has stated that it has sought to make its SPS measures in line with international standards.  
 
Question:  
6.  The delegation of Brazil kindly requests a clear and detailed description of requirements, 
including risk management measures, applied by the Japanese Government during sanitary risk 
assessments related to beef and pork imports from areas reco gnized by the OIE as free from foot -
and-mouth disease with vaccination.  
 
RESPONSE  
When receiving a request for import ban lifting of beef and/or pork, Japan conducts a risk assessment 
in accordance with the "Standard Procedure for Approval for Import of D esignated Items into Japan 
to be Quarantined" and "Standard Operating Procedures for Approval for Import of Designated Items 
into Japan to be quarantined", which are consistent with SPS agreement and the OIE codes.  
The standard procedure and the standard operating procedures are published in English and 
available at:  
https://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/080401sop_eng.pdf . 
https://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/2010sop_en.pdf . 
 
7. Could Japan explain its stance regarding the OIE mandate from the WTO to officially recognise 
disease -free areas of countries for trade purposes? How does Japan take into consideration such 
recognitions while performing its risk analysis?  
 
RESPONSE  
Japan always gives due consideration to the OIE official disease status recognition when conducting 
a risk as sessment in accordance with the designated procedures, which are consistent with SPS 
agreement and the OIE codes. Japan utilizes application document (dossier) submitted to OIE for 
official recognition whenever it is available.  
 
Page 87 (Box 3.2)  
 
SPS Meas ures / Agencies responsible for SPS measures  
 
Question:  
8. Japan has informed Brazil on several occasions that the national phytosanitary authorities 
cannot receive new requests relating to risk assessment for fresh fruits, being overwhelmed by 
several dem ands from different countries in that regard. The Brazilian delegation kindly inquires 
which measures are being undertaken by the Japanese Government in order to improve efficiency 
in phytosanitary risk assessments and ensure a timely conclusion to interna tional requests.   
 
RESPONSE  
When other members request Japan to lift a ban on plant import, Japan carries out its evaluation 
based on the scientific data. If other members establish a measure to prevent introduction and 
spread of pests, Japan will lift the  ban on plant import. Japan has published the procedure for 
evaluation and the progress of individual case, to ensure its implementation under a full 
transparency.  
 
Page 89 (Para 3.134 – 3.136)  
 
SPS Measures / Livestock Infectious Diseases Control  
 
Questions:  
9. What is the average length of time needed by the MAFF to examine technical information 
submitted by a country seeking recognition of an FMD free area without vaccination?  WT/TPR/M/397/Add.1  
 
- 71 - 
 
RESPONSE  
So far, Japan has recognized two zones as FMD free without va ccination, the state of Santa Catarina 
of Brazil and the Patagonia region of Argentina.  
The length of time to examine the submission depends on the submitted information in terms of 
sufficiency. Japan might request additional information until Japan consid ers the information is 
sufficient for conducting the risk assessment. Therefore, the length of time significantly differs on a 
country -by-country basis.  
 
10. Would Japan consider removing the age requirement of a maximum of 36 months for animals 
used as raw material for meat products? Is there sufficient scientific evidence justifying such import 
restriction?  
 
RESPONSE  
In general, SPS measures of Japan are bas ed on relevant international standards, or where its 
measures do not conform to relevant international standards, based on scientific risk assessment, 
in accordance with the SPS Agreement. The SPS Agreement requires that SPS measures conducted 
by WTO membe rs are based on scientific principles. As for BSE regulations, MHLW requests risk 
assessment to FSCJ taking into account the OIE evaluation.  
For relaxing further age restrictions based on the international standards regarding beef from 
countries where BSE  occurred, MHLW has already lifted the age restrictions for the U.S., Canada 
and Ireland in May 2019, and for France and Norway, we are discussing review of import conditions, 
based on results of risk assessments on lifting age restrictions by FSCJ. For Br azil, MHLW will request 
FSCJ for risk assessment when all the necessary information, such as more data collected by the 
risk management organizations and new scientific evidences, become available. Once FSCJ 
completes the assessment and notifies MHLW of th e risk assessment result, MHLW will consider 
further relaxation of the beef import requirement based on the result of risk assessment.  
 
II TRADE POLICY REVIEW: TRADE POLICIES BY SECTOR  
Page 128 (Para 4.7)  
 
In comparison to the current Food, Agriculture an d Rural Areas Basic Plan, Japan has set higher self -
sufficiency targets for the next Plan 's five -year period. Considering that the plan is to be published 
in 2020, could Japan provide the following information:  
 
Questions:  
11. Does Japan plan to adopt new domestic support policies that would be notified under article 6 
of the AoA? If positive, could Japan provide details (for instance, on which box will the policy be 
notified, which products will be prioritized) on these policies?  
 
RESPONSE  
At this stage, J apan does not foresee changes in its domestic support while such changes could take 
place as necessary, consistent with the relevant WTO rules.  
 
12. Does Japan intend to increase the budget of current domestic support policies?  
 
RESPONSE  
Under the commitme nt made in the UR agreement, Japan has promoted its agricultural policy reform 
and substantially reduced trade -distortive support.  
Its domestic support policies have been continuously adopted and reviewed to address various policy 
purposes in accordance wi th WTO rules. Although, it is not possible to clearly foresee the situation 
in the future, but Japan is maintaining the WTO consistency in implementing domestic support 
policies.  
 
Page 132 (Para 4.23)  
 
Table 4.6 (TRQ fill ratio, FY2017/18) demonstrates tha t several TRQs have fill rates below 65%, the 
threshold agreed upon in Bali by the Members as an indicator of the economic efficiency of TRQs as 
a means to promote trade.  
 
Questions:  
13. Could Japan provide specific information on these TRQs ' administrations methods?  
 WT/TPR/M/397/Add.1  
 
- 72 - 
 
RESPONSE  
For the tariff rate quota implementation, the specific natures of products are taken into account. For 
your reference, the relevant information on the implementation is publicly available on the official 
websites and through the WTO notifications.  
 
14. Could Japan provide updated data regarding the decreased domestic demand of the products 
that can be imported through these TRQs?   
 
RESPONSE  
Japan does no t have a comprehensive data set on this purpose. Domestic demand (i.e. consumption) 
can be calculated for the products of your interest as production plus imports minus export. The 
relevant data is available at FAOSTAT.  
 
Page 133 (Para 4.25)  
 
Question:  
15.  Could Japan provide more details on the functioning of the simultaneous buy and sell (SBS) 
system? Could Japan include in its answer the economic rationale of the system, the goals it intends 
to achieve and the role of the government in mediating the tra nsaction between the importer and 
the domestic user.  
 
RESPONSE  
The SBS system is operated to meet specific needs of rice and wheat.  
Under the SBS system, a domestic user and an importer jointly bid for the tender held by MAFF. 
MAFF purchases imported rice and wheat from the importer and sells it to the user simultaneously 
based on the result of tender.  
 
Page 134 (Para 4.30)  
Japan has recently revised its domestic legislation on agricultural revenue insurance, defining the 
program eligibility as a minimum income loss of 10% and establishing compensatory payments at 
90% of producer 's income loss.  
 
Japan's latest DS:1 notification (G/AG/N/JPN/235) demonstrated that non -product -specific AMS 
outlays related to Agricultural Insurance Scheme amounted to 14.9 billion JPY (Supporting 
Table  DS:9).  
 
Questions:  
16. Does Japan envision an increase in the amount of amber box domestic support provided under 
the Revenue Insurance Program (RIP)?  
 
RESPONSE  
Japan will examine the categorization prior to the next DS1  notification.  
 
17. Did Japan consider adopting the non - or minimally trade -distorting criteria established in 
Annex 2, paragraph 7 of the AoA for Government financial participation in income insurance?  
 
RESPONSE  
See the response to Q.16 from Brazil.  
 
Page 136 (Para 4.34 and  4.35)  
 
Recent changes in Japan 's agricultural policies, such as the abolition of the Direct Payment for Rice 
and of the administrative allocation of rice production volume targets and the abolition of 
administered prices for beef and pig meat, may have im portant implications on Japan 's Blue Box 
and Amber Box expenditures. Rice was the main beneficiary of trade -distorting direct payments 
under production -limiting programmes and pig meat and beef were among the main beneficiaries of 
trade -distorting Amber bo x support.  
 
Questions:  
18. Does Japan foresee changes in its domestic support pattern regarding rice, beef and pig meat?  
 WT/TPR/M/397/Add.1  
 
- 73 - 
 
RESPONSE  
At this stage, Japan does not foresee changes in its domestic support regarding rice, beef and pig 
meat, although such chang es could take place as necessary in accordance with the relevant WTO 
rules.  
 
19. Does Japan plan to adopt new substitute policies for rice, beef and pig meat?  
 
RESPONSE  
At this stage, Japan does not have plans to adopt new substitute policies for rice, beef and pig meat, 
although such policy reviews/revisions could take place as necessary in accordance with the relevant 
WTO rules.  
 
20. Is Japan 's abolishment of its direct payment program for rice a sign that Japan understands 
that Blue Box support has already played its part as a transition program in the overall context of 
reform of its agricultural policy?  
 
RESPONSE  
The abolishment of the program is simply the reflection of the policy change. Along with the abolition 
of administrative allocation o f rice production volume targets, the Direct Payment for Rice was 
abolished in 2018.  
 
21. Could Japan provide updated information on rice production (area and volume) during the 
period of implementation of its production -limiting programmes for rice?  
 
RESPONSE  
Please refer to Crop Statistics for production area and production volume of rice as bellows.  
https://www.maff.go.jp/j/tokei/kouhyou/sakumotu/sakkyou_kome/inde x.html . 
 
Page 152 (Chart 4.8)  
 
Energy/Renewable energies  
 
Questions:  
22. Does Japan consider further expanding the share of renewable energy in the transport sector?  
 
RESPONSE  
Based on the Plan for Global Warming Countermeasures (Cabinet decision on May 13, 2016), the 
Government of Japan continues to improve the introduction s ystem including the introduction of 
biofuels and support for supply infrastructure, assuming sufficient GHGs reduction effects, stable 
supply, and economic efficiency. At the same time, the Government of Japan has no quantitative 
targets for increasing the  use of renewable energy in the transport sector.  
 
23. Is Japan willing to review its regulations concerning sustainability criteria of renewable fuels?  
 
RESPONSE  
The sustainability of biomass fuel for power generation has been required as the approval cr iteria 
under the FIT in Japan.  
The sustainability criteria of biomass fuel for power generation has been under consideration in 
Japan, including the timing for update.  
 
Page 170 (Box 4.5)  
 
State ownership: NTT 35.9%  
 
Question:  
24. Does Japan have any plan s to increase liberalisation of the telecom sector by reducing its 
participation in NTT?  
 
RESPONSE  
The Government is obliged to own at least one third of the total issued shares of NTT (Nippon 
Telegraph and Telephone Corporation) and be its stable shareholder so as to ensure stable 
management and appropriate business operation of NTT, avoiding the situa tion that a specific person WT/TPR/M/397/Add.1  
 
- 74 - 
 
controls NTT's business or abuses shareholder rights. As of September 2019, the government's 
ownership ratio is about 33.3%.  
 
Page 170 (Box 4.5)  
 
Names and market shares of the leading companies for fixed telecom services (Decem ber 2018):  
NTT East and NTT West (combined market share for fixed telecom services, 23.2%); KDDI (17.9%); 
Optage (3.8%); Softbank (2.9%); various wholesalers using NTT East and West networks (31.7%)  
 
Question:  
25.  Could Japan confirm the mention to "vari ous wholesalers" in the abovementioned paragraph?  
 
RESPONSE  
"Various Wholesalers," which account for 31.7 ％ of the retail market shares of the leading companies 
for fixed telecom services, receive FTTH 's wholesale telecommunications services from NTT East and 
NTT West, and provide services for end users.  
NTT DoCoMo and SoftBank, both of which are mobile phone carriers, are the typical carriers to 
provide services in this manner. These two companies' share  of the above 31.7% portion exceeds 
70% in total.  
 
Page 170 (Para 4.180)  
 
Regarding the fixed interconnection regime, the leading companies (NTT West and NTT East) are 
now obliged to include their optical fibre lines, as well as their Internet Protocol cor e network "Next 
Generation Network", as designated facilities into their interconnection offer.  
 
Questions:  
26. Are the cited companies obliged to publish reference offers for their interconnection products?  
 
RESPONSE  
NTT West and NTT East have no obliga tion to publish the names of products used for interconnection. 
However, in accordance with the Telecommunications Business Act, equipment types, 
interconnection charges for using the equipment, and terms and conditions of interconnection are 
published in the form of  "general conditions of contracts for interconnection", together with evidence 
materials for calculating interconnection charges.  
 
27. If so, how is price defined in those offers? Is there a cost orientation in such definition?  
 
RESPONSE  
Based on the Telecommunications Business Act, interconnection charges are set on a cost basis, 
calculating a cost-plus reasonable profit under efficient management.  
 
Page 170 (Para 4.182)  
 
Apart from those minor technical amendments to the regime, and of the deployment of 5G LTE 
networks and of experimental programmes on the IoT and on AI, the government policy regarding 
telecommunications during the period under review was essentially focus ed on two issues: consumer 
protection, and the lowering of costs linked to the use of mobile handsets.  
 
Questions:  
28. Could Japan elaborate on the measures taken on the deployment of 5G and on the programs 
for fostering AI and IoT technologies?  
 
RESPONS E 
When assigning 5G frequencies, Japan obliged  mobile phone operators  to start 5G services in all 
47 prefectures within 2 years and install 5G advanced base stations in 50% or more mesh (10km 
square) of Japan within 5 years  in order to promote the developm ent in urban areas and local 
areas.  In addition, subsidies will be provided for the installation of 5G base stations and superfast 
optical fibers supporting them in commercially challenging areas.  
With regard to the programs for fostering IoT technologies,  Japan does not take any measures in 
order to foster the technologies of IoT.  WT/TPR/M/397/Add.1  
 
- 75 - 
 
With regard to the programs for fostering AI technologies, please see the AI Strategy 2019 from 
the URL below.  
https://www.kantei.go.jp/jp/singi/ai_senryaku/pdf/aistratagy2019en.pdf . 
 
29. Is the establishment of a secondary market for frequencies in place one of those measures? 
If so, what is the rationale behind its implementation?  
 
RESPONSE  
There is no secondary trading system and secondary market for frequencies in Japan.  
 
Page 171 (Para 4.185)  
 
As evidenced by its ranking in Table 4.21, telecommunications prices in Japan remain relatively high 
by international standards, especially  for data access via fixed and mobile broadband.  
 
Question:  
30. Could Japan give more details on the causes behind the high prices verified in the country? 
By the nature of the actions recently taken by the government, would switching barriers for 
consume rs be one of those reasons?  
 
RESPONSE  
It is crucial for competition among carriers to ensure smooth transfer from one telecommunications 
carrier to another according to users' choice, and this also affects user charges. For example, in the 
field of mobile telecommunications, Japan tackles with promotion of fair competition among carriers; 
with the revision of the Telecommunications Business Act in May 2019, the system was developed 
for completely separating communication charges and terminal charges and correcting excessive 
enclosure such as term -bound contracts.  
 
ADDITIONAL  QUESTIONS  
 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Page 10 (Para 2)  
 
During the review period, trade -related structural reforms (e.g. in the areas of taxation, competition 
policy, corporate governance, and labour market policies) were undertaken. Both multi factor and 
labour productivity registered positive growth, and targ ets were set for the latter; SMEs' productivity 
in manufacturing remains relatively low compared to large firms. Monetary policy, involving, among 
others, Quantitative and Qualitative Monetary Easing (QQE) with negative interest rate, continued 
to provide a monetary stimulus to growth and help building a stable financial environment.  
 
Question  1 
Which mitigation measures did Japan adopt to control the negative effects of the main trading 
partners monetary policies movements since the last TPR?  
 
RESPONSE  
The Bank of Japan conducts monetary policy in order to achieve the domestic mandate, price stability 
and financial stability, thereby contributing to the sound development of the national economy. In 
the process, the Bank closely monitors and assesses the de velopment of overseas economies, 
including the policy actions of other central banks.  
 
Page 43 (Para 2.23)  
 
The EU -Japan Economic Partnership Agreement (EPA) was signed on 17 July 2018, and entered into 
force on 1 February 2019. It was notified to the WTO  on 14 January 2019. It covers both trade in 
goods and services. It is the world's largest RTA, with signatories together accounting for nearly one 
third of world GDP.  
 
Question 2  
Are there any estimates of the overall impact of the Brexit on the Japanese  economy in terms of its 
external accounts (exports and imports) and/or GDP?  
 WT/TPR/M/397/Add.1  
 
- 76 - 
 
RESPONSE  
At this moment, there is no overall impact estimation of the Brexit on the Japanese economy.  
 
Pages 160 -1 (Para 4.146)  
 
During the review period, the share of manufacturing in total exports declined slightly; it accounted 
for 86.8% of total merchandise exports in 2018 (87.2% in 2015), mainly automotive products 
(21.5%), non -electrical machinery (15.1%) and chemicals (10.7%) . The import content of exports 
varies across manufacturing industries, but is high for the top exporters, illustrating the role that 
imports plays in supporting exports, and indicating the degree of GVC integration of these industries.  
 
Question 3  
How do  the Japanese policy makers reconcile the current greater role for domestic, rather than 
imported, supply of inputs in the Japanese manufacturing industries with the growing Japanese trade 
integration into the Asia -Pacific region?  
 
RESPONSE  
As stated in t he Secretariat Report, the "import content of exports varies across manufacturing 
industries."  
 
Question 4  
By the way, is there any indicator of the exact position (backward and forward linkages) of the 
Japanese manufacturing industries within global/regional value chains in the Asia -Pacific rim?  
 
RESPONSE  
The exact position of Japanese manufacturing industrie s within global/regional value chains varies 
on a case -by-case basis.  
 
Page 166 (Para 4.156)  
 
The intent of the supervisory approach is to put more emphasis on the business potential of 
borrowers rather than on their collateral or credit guarantees, and to  prompt Japanese banks to 
utilize a "risk appetite framework" in light of the difficult environment born out of prolonged negative 
interest rates, worldwide political and economic uncertainties, and the emergence of online banking, 
e-payments and fintech.  
 
Question  5 
How exactly has the prolonged negative interest rates been affecting the Japanese banking system?  
 
Please see our response to question 6.  
 
Question  6 
Have negative interest rates diminished the profitability of the Japanese banking system 
significantly?  
 
RESPONSE  
A negative interest rate affects the profitability of Japanese banking system.  
The low -interest rate environment attribute to not only monetary policy but also other factors such 
as demographic change and competitions in Japan.  
In addition, it should be noted that the impact of domestic interest rate environment depends on 
banks' business model. That is, international banks may have oversea business opportunities to 
diversify business portfolio while regional banks largely rely on d omestic businesses environment, 
being affected by low -interest rate environment in Japan.  
To enhance their profitability, Japanese banks are diversifying revenue sources including fee -
business and alliance with non -financial businesses, reducing operationa l costs such as branch 
network, and proceeding digitalization.  
 
Question 7  
If so, is it a matter of concern for the Japanese monetary and/or financial supervision authorities?  
 
RESPONSE  
Please see our response to question 6.  WT/TPR/M/397/Add.1  
 
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Question 8  
How is a successful exit policy supposed to work in these circumstances?  
 
RESPONSE  
At the present, as it is expected to take longer to achieve the price stability target, it is still premature 
to formulate a concrete exit policy. The exit policy would be discussed at an appropriate timing when 
it is foreseen that the 2 percent price stability target will be met.   
 
Page 167 (Para 4.158)  
 
In a longer -term perspective, the FSA set up a panel of experts in November 2017, i.e. the Study 
Group on the Financial System, in  charge of developing a new approach to regulation. Regulation is 
by financial function rather than by type of actor, since, for instance, banks are diversifying in asset 
management and insurance, while fintech, including Internet and telecom companies, ve nture into 
e-payments and banking. This panel identified four key functions that should be regulated, 
regardless of the type of actor involved in them, namely: payment and settlement, lending, 
investment, and risk transfers. The aim is to maintain consumer  protection, and to encourage 
financial innovation.  
 
Question  9 
How does regulatory and supervisory coordination work when economic agents (mainly banks) 
operate in two or more of the identified functions?  
 
RESPONSE  
It would be much appreciated if you cou ld elaborate the question a bit more and clarify how the 
question is related to the referred paragraph. The referred paragraph in the Secretariat Report 
describes the discussion held at the Study Group on the Financial System under the Financial System 
Council. Would you expect to see Japan's response to the development/outcome of the discussion 
so far? Or would you expect to learn about current regulatory/supervisory coordination on the case 
that a bank runs different functions (such as insurance and asset  management)?  
 
Page 168 (Para 4.166)  
 
Regarding e -payments, Japan has been relatively slow to switch to cashless payments, and credits 
cards, for instance, are much less used than by other OECD countries. However, this is now changing 
very rapidly, due to e-payments (notably by mobile phones) and more marginally to crypto -
currencies. The Government set an objective of 40% of cashless payments by 2025.   
 
Question 10  
How is the e -payments statistics collected and processed? Is it disaggregated by type of e -payment? 
What was the growth rate observed for this type of payment since the last TPR?  
 
RESPONSE  
In the analysis, "cashless payments" are defined as payments using  credit cards, debit cards and e -
money. The ratio of cashless payments to private final consumption expenditures has been growing, 
indicating 20.0% in 2016, 21.3% in 2017 and 24.1% in 2018.  
 
Page 168 (Para 4.169)  
 
In order to develop fintech, the FSA eased, in May 2016, the restrictions on banks' ownership of 
finance -related IT companies. However, such acquisitions remain subject to FSA approval. In 
September 2017, the FSA established the FinTech Proof of Concept (PoC) Hub. The main aim of the 
Hub is t o support innovative projects improving user convenience and/or productivity of companies. 
For each selected PoC project, the FSA will set up a special working team, in cooperation with 
relevant authorities and/or industry associations, as necessary. A spe cial working team will support 
a project, by giving advice on issues related to compliance and supervision, etc., that participants 
of the PoC project would like to clarify The newly formed (July 2018) Strategic Development and 
Management bureau of the FSA  is in charge of this programme.  
 
Question 11  
What are the effects of this measure for the purpose of assessing banks' leverage under the Basel  III 
limits?  WT/TPR/M/397/Add.1  
 
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RESPONSE  
Since there is no relevant description for the Basel III in the referred paragraph 4.169 of 
WT/TPR/S/397, it is difficult to understand properly what "this measure" means in your question. If 
you meant the implementation of the leverage ratio under the Basel III by "'this measure'', FSA has 
implemented the minimum requirement and disclosure re quirement for the leverage ratio.  
 
Page 168 (Para 4.170)  
 
In April 2017, the FSA implemented the revised Payment Services Act, which introduced the 
registration system for exchange service providers of virtual currency for legal tender, and 
established th e legal framework, such as security requirements and segregation rules between the 
operators' assets and the users' assets. After the Coincheck site was illegally accessed in January 
2018, the FSA conducted a number of on -site inspections and business impr ovement orders, to try 
to improve their internal management structure and AML capabilities.  
 
Question 12  
How is the operation of non -residents in the virtual currency market in Japan regulated?  
 
RESPONSE  
If a person operating a virtual currency exchange lo cated outside of Japan seeks to provide its 
service to residents in Japan, it must be registered as Virtual Currency Exchange Service Provider 
under the Payment Services Act. As part of registration requirements, Foreign Virtual Currency 
Exchange Service P rovider* is required to designate a representative person in Japan (limited to a 
person who is domiciled in Japan) and to have a business office in Japan. For further details of 
regulations applied to Virtual Currency Exchange Service Provider, please see our response to 
question 13.  
*A person who carries out a Virtual Currency Exchange Service in the course of trade in a foreign 
state under the same kind of registration as the one referred to in Article 63 -2, pursuant to the 
provisions of laws and regulati ons of that foreign state equivalent to this Act (including permission 
or other administrative dispositions similar to that registration).  
 
Question  13 
What kind of specific measures were adopted by the FSA to avoid excessively risky operations by 
non-residents in Japanese markets?  
 
RESPONSE  
As mentioned in our response to question 12, FSA requires a person, who operates a virtual currency 
exchange located outside of Japan and seeks to provide its service to residents in Japan, to be 
registered as Virtual Currency Exchange Service Provider und er the Payment Services Act. The 
registered Virtual Currency Exchange Service Provider will be subject to relevant regulations under 
the law, including information security management, management of entrusted parties, measures 
for customer protection and m anagement of users' property (tentative translation of the law is 
available at: http://www.japaneselawtranslation.go.jp/law/detail/?id=3078&vm=04&re=01 ).  
FSA supervises the Virtual Currency Exchange Service Provider to ensure appropriate business 
operation by applying the regulations. Please see para 4.4 of WT/TPR/G/397 for further information 
on the recent amendment of the law with respect to the Virtual Curre ncy Exchange Service.  
FSA has conducted work on identifying and managing unregistered service providers. If a suspected 
business ignores requests for engagement with the FSA, then warnings are sent to the business and 
information is posted on the FSA websi te. 
 
Page 169 (Para 4.171)  
 
Following the crash of the bitcoin value (from USD 20,000 in December 2017 to USD 4,000 in 
December 2018) and two major thefts at virtual exchanges involving USD 500 million and 
USD 60 million, the FSA announced, in December 201 8, its intention to strengthen applicable rules 
and to ensure user protection. This act was passed by the Diet in May 2019 and will be implemented 
by June 2020. The new Payment Services Act replaces the term "virtual currency" by "crypto -asset", 
to underli ne its speculative character, requires service providers to pre -notify the authority of plans 
to change a line of virtual currency products, and contains provisions forcing virtual currency 
exchanges to secure funds for repayments to customers in the case of theft or business failure.  
 WT/TPR/M/397/Add.1  
 
- 79 - 
 
Question  14 
Has the Government developed any program me envisaging greater financial education regarding 
crypto -assets? If yes, how was the advertising campaign implemented?  
 
RESPONSE  
The FSA, in cooperation with Consumer Aff airs Agency and National Police Agency, issued a series 
of notices to the public, which were made on September 2017, October 2018 and April 2019, to 
raise awareness on the crypt -assets, based on the cases collected through consultations.  
In addition, FSA i ssued a notice to the public on October 2017, in response to an increase of Initial 
Coin Offering, or ICO, which is a new way of fundraising with the use of crypt -assets, to raise 
awareness on the possibility of price decline and fraud.  
 
The FSA, and other  relevant authorities issued standard materials on financial literacy for university 
students and it is designed to raise awareness regarding crypto assets.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
Page 3 (Para 1.1)  
The Japanese economy is recovering at a moderate pace. The private consumption and business 
investment are on the increase, supported by continued improvements in the employment and 
income situation and high corporate profits. However, due to the declining  global demand for IT -
related goods and slowdown of the Chinese economy exports in certain sectors remain weak since 
2018. As a consequence, industrial production has been in a weak tone. Further attention shall be 
given to international trade issues and a mbiguous economic trends and policies abroad, including 
the prospect of the Chinese economy.  
 
Question 15  
Are there any official estimates of the impact of the trade tensions between the US and China on 
the Japanese economy both in terms of its external s ector (exports and imports) and GDP?  
 
RESPONSE  
Although we have no such estimates, we will continue to pay close attention with a high level of 
interest to the impact of the trade tensions between US and China including on our country.  
 
Question 16  
Of what magnitude has been the impact of the downward  trend of the Chinese economy on the 
Japanese one? Through which channels? Does it represent any major risk to the growth of the 
Japanese economy as the Chinese economy is expected to continue on a downward trend in the 
foreseeable future and as the two ec onomies are becoming more intertwined over the years?  
 
RESPONSE  
We continue to pay close attention to the Chinese economy as China is the world second largest 
economy and its economy has great influence not only on Japan's economy but also on the world 
economy.  
 
Page 4 (Para 2.3)  
 
Japan is currently a party to eighteen EPAs. Japan is aiming at the swift conclusion of RCEP 
negotiations among 16 countries, through which the FTA ratio1 will exceed 70%, as set out in the 
Growth Strategy 2019. Japan has also pr omoted its regional and bilateral trade policies as a means 
of complementing the multilateral trading system under the WTO and Japan believes that these 
agreements will serve as building blocks to achieve higher trade liberalization at the multilateral 
level.  
 
Question 17  
How exactly regional and bilateral trade agreements in which Japan takes part have been conceived 
as building blocks of the multilateral trade system? Does this mean that these agreements contain 
policies that go beyond what have been agr eed so far at the multilateral level?  
 WT/TPR/M/397/Add.1  
 
- 80 - 
 
RESPONSE  
Japan has concluded EPAs which include high -standard rules that go beyond those of the WTO, such 
as the TPP11 Agreement and Japan -EU EPA. Japan will continue to promote EPAs negotiations as a 
means of comple menting the multilateral trading system under the WTO.  
 
Page 6 (Para 2.13)  
 
Maintaining and strengthening the multilateral trading system under the WTO has been a main pillar 
of Japan's external economic policy. At the same time, Japan has also promoted it s regional and 
bilateral trade policies as a means of complementing the multilateral trading system, particularly 
through Economic Partnership Agreements that include elements of Free Trade Agreements and 
institution -building.  
 
Question 18  
To what extent Economic Partnership Agreements (EPAs) have been instrumental if at all to increase 
the integration of the Japanese economy into the Asian -Pacific rim?  
 
RESPONSE  
The strengthening of global supply value chains can be anticipated through the conclusion of E PAs. 
For example, the TPP11 Agreement has adopted the full cumulation system, which enhances further 
economic integrations in the Asia -Pacific region, through establishing more efficient supply chains in 
the region.  
 
Page 9 (Para 2.16)  
 
At the APEC Economic Leaders' Meeting in 2016 in Lima, Peru, APEC economic leaders reaffirmed 
their pledge against protectionism by extending a standstill commitment until the end of 2020, and 
their commitment to rollback protectionist and trade -distorting  measures, which weaken trade and 
slow down the progress and recovery of the international economy. The Lima Declaration remains 
the backbone of APEC's efforts in promoting free and open trade and investment. Against rising 
protectionism including unfair t rade practices, Japan solidifies its resolve toward the promotion of 
free trade.  
 
Question  19 
In the Japanese authorities' assessment, what are the technical criteria that differentiate legitimate 
prudential measures to protect the national financial syst em from trade distortion measures or unfair 
trade practices?  
 
RESPONSE  
The FSA does not have any such specific technical criteria to evaluate for the legitimate prudential 
measures but believes that FSA's understanding on prudential measures is consistent with general 
interpretation shared in the GATS FS Annex.  
*Please refer to the last sentence of paragraph 30 on page 8 of S/C/W/312 S/FIN/W/73 
3 February  2010, "it seems reasonable to interpret the prudential carve -out as affording the 
Members a high level of discretion regarding measures for prudential reasons including, but not 
limited to, the ones listed, but at the same time not permitting measures that are purely or primarily 
protectionist in effect."  
**Please refer to third paragraph from th e bottom of page 3 of "Coverage of prudential measures in 
the GATS", "The broad scope of the prudential measures in paragraph 2(a) covered by the Annex is 
confirmed in the WTO Appellate Body's view by the clause "notwithstanding any other provisions of 
the Agreement" spelling out in general terms the latitude provided for such measures."  
 
On the other hand, it is difficult to prejudge how Japan shall tackle against trade distortion measures 
or unfair trade practices of the other member country. It is needed  to carefully consider whether 
certain measures Japan takes are legitimate prudential measures, which highly depend on the 
concrete effect of the measures taken by that member country.  
 
Page 9 (Para 2.17)  
 
APEC's core mission continues to be further regio nal economic integration and expansion of trade in 
the Asia -Pacific region. The Leaders and the Ministers of APEC reiterate the commitment to build an 
open economy in the Asia -Pacific region at the Economic Leaders' Meetings and the Ministerial WT/TPR/M/397/Add.1  
 
- 81 - 
 
Meetings re spectively by advancing regional economic integration and addressing next -generation 
trade and investment issues, including through the measures for achieving comprehensive and high -
quality Free Trade Area of the Asia -Pacific (FTAAP). In this regard, Japan  has been taking the lead 
in working on initiatives related to quality infrastructure, which is one of the priority issues in various 
fora. Japan also has been taking an initiative to implement APEC projects including competition 
policy in FTAs/RTAs, servi ces, digital economy and food security.  
 
Question  20 
Has regional economic integration been conceived within the framework of the constitution of 
global/regional value chains and therefore contributed to increase the participation of Japan into 
supply cha ins in the Asia -Pacific rim?  
 
RESPONSE  
The development of global/regional value chains is important for Japan to increase participation in 
supply chains in the Asia -Pacific region.  
Therefore, Japan has contributed, and will continue to contribute to promot ing regional economic 
integration  
in order to increase Japan's participation through working on strengthening connectivity and 
developing global value chains in the region, based on the respective APEC strategies below for 
example;  
APEC Connectivity Bluep rint for 2015 -2025(2014),  
APEC Strategic Blueprint for Promoting Global Value Chains 2020 -2025(2019),  
APEC Suggested Framework for Phase Two of the Supply -Chain Connectivity Framework Action Plan 
2017-2020 (SCFAP Phase II).  
 
Page 10 -1 (Para 2.27)  
 
In 2007, for strategic economic dialogue at the ministerial level, Japan and China decided to establish 
the Japan -China High -Level Economic Dialogue. The fifth meeting was held in Beijing in April 2019 
and both sides exchanged views regarding a wide range of topics including trade and investment, 
as well as protection of IP rights. At the Japan -China Summit meeting in June 2019 at the occasions 
of G20 Osaka Summit, the two leaders shared the view that, based on international standards and 
in the spirit of " from competition to cooperation," the two countries would enhance mutually 
beneficial working -level cooperation in areas that have potential, such as third country markets, 
innovations and protection of intellectual property, trade and investment including  foods and 
agricultural products, finance and securities, medical and nursing care, energy conservation and 
environment, and tourism exchanges, as well as further develop a free and fair trading system. In 
addition, to promote further bilateral cooperation  in the economic field, various dialogues between 
Japan and China have been held.  
 
Question 21  
How has the spirit of higher cooperation between Japan and China been reflected in the Belt and 
Road Initiative (BRI)?  
 
RESPONSE  
Japan's position on China's "Belt and Road Initiative" is as follows:  
Japan hopes that the initiative contributes to the peace and prosperity of the region and the world 
by fully incorporating internationally established common frame of thinking such as openness, 
transparency , economic efficiency and debt sustainability.  
Japan continues to pay close attention to whether the initiative's projects are implemented in full 
accordance with such a common frame of thinking.  
 
Question 22  
As a consequence of the BRI is it reasonable t o expect an even deeper economic interdependence 
between Japan and China?  
 
RESPONSE  
Japan's position on China's "Belt and Road Initiative" is as follows:  
Japan hopes that the initiative contributes to the peace and prosperity of the region and the world 
by fully incorporating internationally established common frame of thinking such as openness, 
transparency, economic efficiency and debt sustainability.  WT/TPR/M/397/Add.1  
 
- 82 - 
 
Japan continues to pay close attention to whether the initiative's projects are implemented in full 
accordance with such a common frame of thinking.  
 
In May 2017, the Fourth Dialogue to Strengthen the Economic Relationship between Mercosur and 
Japan was held in Buenos Aires, Argentine. In this Dialogue, both sides exchanged information on 
the current situat ions of trade and investment between Japan and Mercosur. They also exchanged 
their opinions over measures taken by both sides to promote free trade, and over possible measures 
to encourage more investment between the two parties.  
 
Question 23  
What are the  expected main areas of growth in the Japan -Mercosur bilateral trade flow in the case 
of a free trade agreement?  
 
RESPONSE  
This hypothetical question goes beyond the scope of the trade policy review.  
 
  WT/TPR/M/397/Add.1  
 
- 83 - 
 
EUROPEAN UNION  
WT/TPR/S/397 – WTO Secretariat's Report  
 
Section 2.3.2 Regional and preferential agreements; page 41  
 
EU Question N° 1  
On 7 October 2019, Japan signed a trade agreement with the United States. According to statistical 
data at our disposal, this agreement falls significantly short of providing for a liberalisation of 
substantially all trade between Japan and the US.  
How does Japan assess the WTO compliance of the Japan -US agreement in the light of Article XXIV 
of the GATT?  
 
RESPONSE  
Paragraph 1 of Article 5 of the Japan -US Trade Agreement provides: "Further to the existing 
commitments by each Party under the WTO Agreement, unless otherwise provided for in this 
Agreement, each Party shall improve market access in accordance with Annex I or Annex II."  
 By the implemen tation of this provision, the tariff elimination covering substantially all the 
trade between the two countries will be achieved. On that basis, Japan is of the view that the Japan -
US Trade Agreement is consistent with Article XXIV of GATT.  
 
Section 2.4.2.  Business environment; para. 2.43, page 49.  
 
EU Question N° 2  
What measures is the Japanese government currently undertaking and/or planning to take against 
bribery in foreign activities of Japanese companies to improve the situation noted in the report?  
 
RESPONSE  
Japan has published the Guidelines for the Prevention of Bribery of Foreign Public Officials. Please 
see the following website.  
https://www.meti.go.jp/policy/external_economy/zouwai/pdf/rGuidelinesforthePreventionofBribery
ofForeignPublicOfficials.pdf . 
 
Section 3.3.1.2 Subsidies and other assistance programmes; para 3.90, page 79.  
 
EU Question N° 3  
With regard to the developments in automotive sector and state support related to clean energy, 
does the Government of Japan have any overall preference of any particular new technology in its 
subsidy programmes, such as electric vehicles or hydrogen technology ? 
 
RESPONSE  
Japan set out the goal for making the ratio of next -generation vehicles among new sales 50 – 70% 
in 2030. To this end, Japan has been implementing following purchase support programs.  
These subsidies are not for the development of a specific i ndustry.  
- BEVs (Battery Electric Vehicles): up to 400,000 JPY (*3,719 USD)  
- PHEVs (Plug -in Hybrid Electric Vehicles): up to 200,000 JPY (*1,859 USD)  
- FCEVs (Fuel Cell Electric Vehicles): up to 2,250,000 JPY (*2,0922 USD)  
*exchange rate: as of March 4, 2020  
 
Section 3.3.2.3 Technical Regulations; para. 3.110, page 84.  
 
EU Question N° 4  
The EU and the EU industry in Japan consider that the Japanese government has an interest to adopt 
future -proof radio regulations for mobile equipment so that emerging technologies can be quickly 
deployed. It is worthwhile for the government to pursue tech nology neutral approaches, especially 
for unlicensed bands such as 5GHz.  
Could Japan indicate its willingness to adopt a technologically neutral position for radio equipment, 
such as the unlicensed band of 5GHz?  
 
RESPONSE  
Japan takes a technologically neu tral position for radio equipment on the band of 5GHz by adopting 
emerging technologies and private standards, as with Wi -Fi and Bluetooth on the band of 2.4GHz. WT/TPR/M/397/Add.1  
 
- 84 - 
 
When technological standards are formulated, it is necessary to consider elements such as usag e 
needs and usage situations of frequency bands in the country.  
 
EU Question N° 5  
The EU would like to request an update on the latest developments in the establishment of standards 
for automated driving.  
 
RESPONSE  
Japan would like to provide the informat ion as needed at the EU -Japan Bilateral meeting which are 
regularly held before The United Nations Economic Commission for Europe (UNECE) World Forum 
for Harmonization of Vehicle Regulations (WP.29) and at The Working Group on Motor Vehicles and 
Parts unde r the Agreement between the EU and Japan for an Economic Partnership.  
 
Section 3.3.2.4 Conformity assessment and inspection; para. 3.113, page 84.  
 
EU Question N° 6  
According to the Secretariat 's report "overseas manufacturers of electrical and consumer products 
may undergo conformity assessment and certification conducted in foreign countries by foreign -
registered conformity assessment bodies, in accordance with relevant laws (e.g. the Electrica l 
Appliances and Materials Safety Act and the Consumer Product Safety Act)."  
 
The EU and Japan maintain different technical standards for the same products and, although the 
differences are not substantial, they lead to double testing and certification fo r manufacturers. The 
current EU -Japan MRA provides only for recognised certification organisations to test for both 
markets. Unfortunately, the Self Verification of Conformity (SVC) system in Japan is limited to wired 
telecommunications terminals in genera l and has not been expanded to other telecommunications 
equipment (except for3G/LTE and WiFi functions in mobile terminals), thus excluding radio base 
stations for mobile networks.  
 
The EU and the EU industry in Japan consider that the Suppliers' Declarati on of Conformity (SDoCs) 
issued by European producers could be accepted in Japan without further testing or administrative 
requirements, not only in respect of wired terminals, but also in respect of specified radio equipment. 
The application of SVC could be expanded to all equipment in the category, "Specified Radio 
Equipment".  
Can Japan indicate when it intends to revise relevant laws and regulations to accept SDoCs by 
European producers, and/or expand the application of SVC to all equipment in the categ ory of 
"Specified Radio Equipment"?  
 
RESPONSE  
Japan does not intend on either point at present.  
 
Section 3.3.3.1 SPS measures; para.3.122, page 86.  
 
EU Question N° 7  
According to the Secretariat 's report: "The key agencies responsible for SPS measures are contained 
in Box 3.2; there were no major changes to this institutional framework over the review period."  
 
The report states that there has not been any major institutional change with regard the agencies 
responsible for SPS measures. However , within that framework, especially in agro -food sector and 
more specifically related to plants and vegetables, the approach followed by the responsible body is 
"one country -one product" as there are no resources to widen their activities. As a result, it is usual 
that the procedures to open the Japanese market for these products could take more than a decade.  
 
Has Japan envisaged increasing resources to these agencies so that negotiations of bilateral 
protocols could not take so many years to be approved and enacted?  
 
RESPONSE  
When a request for lifting a ban on plant import is made, evaluation is carried out based on the 
scientific data.  
The procedure for the evaluation and the progress of individual case are made public, being managed 
under a full transp arency.  
 WT/TPR/M/397/Add.1  
 
- 85 - 
 
Section 3.3.3.1 SPS measures; para. 3.124, page 87.  
 
According to the report, Japan has lifted age restrictions to beef imported from some countries. 
However, currently other countries are not allowed to export beef if the animal is above 30 months 
age.  
 
EU Question N° 8  
Could Japan explain the scientific principles, not followed by the Organization for Animal Health, on 
the basis of which there should be a distinction between animals of 30 months of age when it comes 
to evaluate the risk assessment of BSE?  
 
RESPONSE  
In general, SPS measures of J apan are based on relevant international standards, or where its 
measures do not conform to relevant international standards, based on scientific risk assessment, 
in accordance with the SPS Agreement. The SPS Agreement requires that the SPS measures 
conduc ted by WTO members are based on scientific principles. As for BSE regulations, MHLW 
requests risk assessment to FSCJ taking into account the OIE evaluation.  
For relaxing further age restrictions based on the international standards regarding beef from 
countries where BSE occurred, MHLW has already lifted the age restrictions for U.S., Canada and 
Ireland in May 2019, and for France and Norway, we are discussing review of import conditions, 
based on results of risk assessments on lifting age restrictions by FSCJ. For other countries, FSCJ 
will be able to complete the assessment when all the necessary information, such as more data 
collected by the risk management organizations and new scientific evidences, become available. 
After FSCJ notifies MHLW of the ris k assessment result, MHLW will consider further relaxation of the 
beef import requirement based on the result of risk assessment.  
 
EU Question N° 9  
With regard to the ban for imports of poultry related to avian flu, will Japan apply the criteria of 
regiona lisation for those countries who have requested so and are currently recognised as disease -
free areas?  
 
RESPONSE  
Upon applying regionalization for avian influenza on poultry import, Japan conducts risk analysis in 
accordance with the "Standard Procedure fo r Approval for Import of Designated Items into Japan to 
be Quarantined" and "Standard Operating Procedures for Approval for Import of Designated Items 
into Japan to be quarantined", which are consistent with SPS agreement and the OIE codes. Once 
the risk a nalysis is completed, Japan could apply the regionalization regardless of the disease status 
of the requesting country.  
 
Section 3.3.3.1. SPS Measures; paragraph 3.124, page 87.  
 
EU Question N° 10  
While the EU welcomes the approval of two EU Member States for import of beef as well as the lifting 
of the age limit for Ireland, the EU would call Japan to enhance market access by better aligning to 
relevant animal health international standards as set by the OIE, which does not appear yet the case 
today. The EU would welcome information on when Japan will fully align its import requirements for 
beef and other bovine products with the OIE guideline both according to official BSE negligible risk 
status as  well as lifting the age limitation.  
 
The EU would like to recall that EU regulations are fully in line with the OIE international standards. 
In chapter 11.4 in OIE terrestrial Animal Health code there is a list of commodities that should not 
be traded, s ee section 11.4.14. (e.g. tonsils and distal ileum from any age, and brains, eyes, spinal 
cord, skull and vertebral column from cattle over 12 or 30 months  depending on countries risk 
status). Those commodities are classified as Specific Risk Material unde r the EU legislation and 
therefore EU exports comply with this OIE provision.  
 
RESPONSE  
The SPS Agreement requires that the sanitary or phytosanitary measures conducted by WTO 
Members are based on scientific principles. As for BSE regulations, the MHLW re quests risk 
assessment to FSCJ taking into account the OIE evaluation.  
For raising further age restrictions based on the international standards regarding the beef, the 
MHLW has already lifted the age restrictions for U.S., Canada and Ireland in May 2019,  and for WT/TPR/M/397/Add.1  
 
- 86 - 
 
France and Norway, we are discussing review of import conditions, based on results of risk 
assessments on lifting age restrictions by FSCJ. For other countries, the MHLW will call target 
countries for data necessary for risk assessment by FSCJ and  submit the collected data to FSCJ. 
After FSCJ notifies the MHLW of the risk assessment result, the MHLW will consider reviewing the 
beef import requirement based on the result of risk assessment.  
Since FSCJ conducts a risk assessment on the basis of the latest scientific findings of the time, the 
MHLW cannot prejudge a schedule and result of the risk assessments.  
 
Section 3.3.3.2.3 On the Planet Protection Act; para. 3.131, page 89.  
 
EU Question N° 11  
The EU thanks Japan for the information provided on standard processing periods as per information 
under paragraph 3.129 on the Food Sanitation Act on MRL and food additives. Similarly, the EU 
would welcome information on the standard processing periods fo r conducting the risk assessment 
prior to approval of imports of fruits and vegetables for consumption.  
 
RESPONSE  
When a request for lifting a ban on plant import is made, evaluation is carried out based on the 
scientific data. If a measure to prevent int roduction and spread of pests is established, the ban will 
be lifted.  
The procedure for the evaluation and the progress of individual case are made public, being managed 
under a full transparency.  
 
Section 3.3.3.2.4 Act on Livestock Infectious Diseases Con trol; para. 3.136, page 90  
 
EU Question N° 12  
With regard to Japan 's List of Third Free Countries, the EU notes that in the Section "Poultry and 
Poultry meat, etc.", countries, regions or zones should be free from both HPAI and LPAI to be eligible 
to export to Japan. According to chapter 10.4 in OIE terrestrial Animal Hea lth code, trade restrictions 
should be put in place only in case of outbreaks of HPAI in poultry, should be limited to the defined 
infected areas in the country concerned and should not include the whole territory of a country. The 
EU would like to ask Jap an to provide the scientific rationale for imposing country -wide trade bans 
in case of detection of LPAI outbreaks.  
 
RESPONSE  
SPS agreement allows SPS measures which result in a higher level of sanitary protection than would 
be achieved by measures based o n the relevant international standards, and Japan applies the 
measures for LPAI which are justified by the scientific evidences. The rationale is given in peer -
reviewed articles such as that written by Shibata et al (2018)2. 
In addition, upon request by t he exporting countries, Japan implements LPAI zoning during the 
outbreak. For that purpose, Japan conducts risk assessment based on the established procedure3. 
Among the EU member countries, Japan has applied LPAI zoning on France, Germany, the 
Netherland s and Hungary so far and has been discussing with other several EU members countries.  
 
Section 3.3.3.2.6 Other; page 90.  
 
EU Question N° 13  
What is Japan's safety assessment and plans regarding the handling of Treated Water at Fukushima 
Daiichi Nuclear Power Station?  
 
RESPONSE  
On 10 February 2020, "the Subcommittee on handling ALPS treated water" published its report. 
Taking into account the report, the Government of Japan considers listening to the opinions from 
parties concerned including local communities, and then will decide the policy based on those 
opinions. Detailed schedule and the timing of the final decision have not been determined  yet. In 
the report, ALPS subcommittee concluded that discharge into the sea and vapor release are practical 
options, and discharge into the sea can be implemented more reliably than vapor release. 
Additionally, in the report above mentioned, preliminary s afety assessment is described as following;  
 
2Shibata , A., Okamatsu, M., Sumiyoshi, R., Matsuno, K., Wang, Z., Kida, K., Osaka, H., Sakoda, Y. 
(2018). Repeated detection of H7N9 avian influenza viruses in raw poultry meat illegally brought to Japan by 
international flight passengers . Virology . 524. 10 -17. doi : 10.1016/j.virol.2018.08.001 . 
3 Viewed at: https://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/080401sop_eng.pdf . WT/TPR/M/397/Add.1  
 
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"By means of the UNSCEAR -specified method, the exposure impact has been studied for vapor 
release and discharge into the sea, which shows that if the total amount of the ALPS treated water  
stored in the tanks is  disposed of every year, the impact will be no more than one -thousandth of the 
exposure impact of natural radiation (2.1 mSv/year)"  
 
Figure: Comparison of radiation impacts between the releases of all amount the ALPS treated water 
disposed of every year and natural radiation  
 
Detailed site -specific safety assessments should be conducted after the decision of the disposal 
method.  
[Reference] The Subcommittee on Handling of the ALPS Treated Water Report (10 February 2020)  
https://www.meti.go.jp/english/earthquake/nuclear/decommissioning/pdf/20200210_alps.pdf . 
 
Section 3.3.6 Government procurement; para. 3.168, page 101.  
 
According to the Secretariat's  report: "[…] there has been concern over the apparently low share of 
foreign companies in public procurement; it seems that this is partly due to non -regulatory barriers 
[…]"  
 
EU Question N° 14  
1. What was the foreign companies share (in %) of number of contracts awarded to them in 2018 
and 2019:  
 
a) at central government level,  
 
RESPONSE  
2.4% for number of contracts awarded in 2018. Data for 2019 is not yet available.  
 
b) at sub -central level?  
 
RESPONSE  
There is no available data for the foreign companies ' share at sub -central level.  
 
What is the trend over the last 5 years?  
 
RESPONSE  
It was around 2 -3% share at central government level.  
 
EU Question N° 15  
What actions does Japan undertake in order to increase the participation of foreign companies in the 
government procurement market in Japan, in particular to address the non -regulatory barriers 
mentioned in the report?  
 
RESPONSE  
In terms of GPA covered procurement, the central go vernment announces in advance the annual 
schedule of its procurement and holds a seminar on Japan 's government procurement for foreign 
entities and diplomatic corps stationed in Tokyo.  
 
WT/TPR/M/397/Add.1  
 
- 88 - 
 
Section 3.3.7.2 Policies on promotion and commercialization of innovat ion; para. 3.191, 
page 109  
 
EU Question N° 16  
Could Japan provide data and elaborate on the actual use (number of cases) since their 
establishment of: (i) the advisory opinion service under the "Hantei" guidelines; and (ii) the IP 
International Arbitratio n Centre?  
 
RESPONSE  
There is no request for Hantei  (Advisory Opinion) for essentiality check at this time. The Government 
of Japan has no data of the IP International Arbitration Centre in Tokyo.  
 
Section 3.3.7.5 Patents; para. 3.207, page 113.  
 
EU Question N° 17  
Could Japan explain in more detail how th e "increased risk of involuntary disclosure" was determined 
for the extension of the grace period in Japan? Also, does Japan consider that the "increased risk of 
involuntary disclosure" outweighs the increased legal uncertainty due to a longer grace period ? 
 
RESPONSE  
With the progress of the Fourth Industrial Revolution, joint research and industry -academia 
collaboration by open innovation have become active, and IoT and AI have been applied to various 
technical fields.  
Under the progress of the open innova tions that use technologies from other companies, the risk of 
involuntary disclosure by others is increasing.  
Individual inventors, SMEs, and university researchers who play an important part of the open 
innovations are not necessarily familiar with the in tellectual property system, and it is necessary to 
provide a legal remedy appropriately for those people and to encourage their innovations.  
 
Could Japan clarify if the amendment of the patent term extension in the event of procedural delays 
is an additional extension previously not provided in Japan? Is it applicable in all fields of technology? 
What is the rationale behind this extension consi dering that the JPO is claimed to be one of the 
fastest patent offices in the world (paragraph 3.209)?  
 
RESPONSE  
The patent term extension in the event of procedural delays is an additional extension previously 
not provided in Japan. It is applicable in al l fields of technology.  
JPO decided to introduce the new patent term extension in the event of procedural delays in order 
to accept the request of TPP12. Though the provision of the extension regarding unreasonable delays 
was suspended in TPP11, JPO introd uced it in order to maintain the same high -standards of TPP12.  
 
Is the fee reduction for SMEs, R&D organisations and start -ups applicable on a non -discriminatory 
basis, i.e. will third country entities be able to benefit from these reduced fees?  
 
RESPONSE  
Foreign applicants are also eligible for the fee reduction program for SMEs, R&D organizations and 
start-ups if they satisfy the same requirements as those for domestic applicants.  
 
Section 3.3.7.11 Copyright; para. 3.239, page 120.  
 
EU Question N° 18  
Could Japan provide more details on the background and the purpose of these amendments 
introducing new exceptions to the copyright law? Who are the potential beneficiaries of these 
exception, i.e. are they limited to scientific research? Could Japan describe the envisaged effects of 
these amendments?  
 
RESPONSE  
Innovation driven by new technologies such as IoT, big data, and AI has been desired in Japan. On 
the other hand, since most of the statutory requirements for limitation in provisions of previous 
Copyright Acts were prescribed specifically to a certain degree, it had been pointed out that a new 
way of usage of works which does not fall into the requirements but does not substantially prejudice 
right holders ' interests could be an infringement.  WT/TPR/M/397/Add.1  
 
- 89 - 
 
In this context, private sectors such as industrial companies requested flexible limitation provisions 
that apply to new ways of usage regarding new technologies in order to promote technological 
innovations. Therefore, the government decided to establish "fle xible limitation provisions" at higher 
level of abstraction.  
Typical actions subject to the limitation are envisaged as follows; collecting data necessary for deep 
machine learning in building an AI, analyzing software for cybersecurity, services to search  for the 
location of on "information being searched for" (Article 47 -5), and services on data analysis.  
Regarding usage of works needed for innovations through technologies such as IoT, big data, and 
AI, the "flexible limitation provisions" are designed to  keep certain amount of flexibility for those 
usages that do not harm the copyright market in order to smooth exploitation of works.  
 
Section 3.3.7.11 Copyright; para. 3.242, page 120.  
 
EU Question N° 19  
Could Japan provide more background information on the way the disputes between the copyright 
holders and the users are settled in Japan? How is the representation of users determined in a 
specific case? Could Japan indicate the applicable rules on the royalty collection in cases where the 
users refuse the  payment of the royalties?  
 
Please also provide an update on the discussions in Japan concerning the remuneration of the holders 
of neighbouring rights, namely the performers and producers of phonograms, for the use of 
phonograms for broadcasting and communication to the public.  
 
RESPONSE  
In the Law on Management Business of Copyright and Neighboring Rights, when there are conflicts 
between CMO and the representative of the users about the royalty rules, the Law first requires 
consulta tion among the concerned parties. If the consultation is not concluded successfully, upon 
the application from the participants, the Commissioner of the Agency for Cultural Affairs arbitrates. 
Under the Law, the representative means a group or an individua l deemed representing the interests 
of users in consideration of the number of users constituting members compared with the total 
number of users and of other reasons.  
Regarding the use of phonograms, it is necessary to conduct a study based on the actual usage of 
commercial phonograms, feasibility of cost -effective mechanism of royalty collection and distribution 
and the opinion of the right holders as well as the users.  
Regarding such information collection and studies, Recording Industry Association of J apan (RIAJ), 
one of the stakeholders, plays a main role in organizing discussions with user organizations.  
 
Section 3.3.7.12. Enforcement; para 3.244, page 121.  
 
EU Question N° 20  
What will be the Japanese government 's next steps to address the problem of online piracy?  
 
RESPONSE  
In October 2019, the Japanese government published the "Comprehensive measures and timeline 
against pirated contents on the Internet". Eleven items such as "Strengthening international 
cooperation and international enfor cement", "Suppressing advertisements on pirated sites", and 
"Measures against Index Site" are listed as comprehensive measures, and the ministries and 
agencies in charge are specified. We will address this issue by these measures in accordance with 
the tim eline.  
 
Section 3.3.7.12 Enforcement; para. 3.244, 121.  
 
EU Question N° 21  
Could Japan elaborate on its efforts in recent years to tackle the serious issue of the offline and 
online counterfeiting and piracy? Has Japan taken steps to address the sale of c ounterfeit items on 
e-commerce and social networking sites?  
 
As regards online piracy, is Japan envisaging particular actions to curb IPR infringements online, in 
particular by introducing effective procedures against online intermediaries in order to tak e down 
infringing content in cases where it is impossible to take action against the infringer directly (e.g. 
website blocking)?  
 WT/TPR/M/397/Add.1  
 
- 90 - 
 
RESPONSE  
There are two approaches to take IPR enforcement measures in Japan. The first is governmental 
enforcement measures su ch as by Police, Customs and Consumer agencies. The second is private 
sector initiatives. The latter is Japanese characteristic online countermeasures. Because EC 
platformers do not directly infringe any IPR, it is difficult to impose responsibility for ma nagement 
of internet IP infringement on them from public initiatives as for now. For example, one group 
consisting of EC platformers and brand owners, voluntarily patrols the EC site, deletes counterfeit 
and pirated sites and reports to the relevant author ities. SNS operators also voluntarily take anti -
counterfeit measures and report to the relevant authorities.  
The copyright holders ' organization and the internet retrieval search service providers discuss to 
curb the display of infringing content on the i nternet information search service. The Agency for 
Cultural Affairs requests that the parties concerned take further measures to prevent copyright 
infringements on SNS and will follow up the situation and review the measures as necessary.  
Further, Japan pl ans to submit a Copyright Amendment bill to the ordinary session of the Diet in 
2020, which includes new provision to regulate leech sites, sites directing users to infringing 
contents.  
In October 2019, the Japanese government published the "Comprehensive measures and timeline 
against pirated contents on the Internet". Eleven items such as "Strengthening international 
cooperation and international enforcement", "Suppressing advertisements on pirated sites", and 
"Measures against Index Site" a re listed as comprehensive measures. One of these is "website 
blocking." It is stated that website blocking will be considered after an assessment of the other 10 
measures' effectiveness.  
 
Section 3.3.7.12 Enforcement; para. 3.246, 121.  
 
EU Question N° 22  
What is the procedure in Japan for the destruction of IPR infringing goods seized by customs 
authorities, in particular as regards small parcels?  
 
RESPONSE  
Excluding exceptional goods (such as batteries),  infringing goods seized and so determined by the 
customs authority are destroyed by burning （with environmentally friendly method). There is no 
difference between small parcels and container cargo.  
 
Considering the growth in the number of infringing goods imported by post, is Japan consi dering 
any legislative or other action to address the current situation where goods indicated as imported 
for personal use are exempted from customs seizures?  
 
RESPONSE  
We put this issue in the Intellectual Property Strategic Program 2018 and are consider ing the 
direction of specific responses with related agencies.  
 
Intellectual Property Strategic Program 2018  (P24)  
https://www.kantei.go.jp/jp/singi/titeki2/kettei/chi zaikeikaku2018_e.pdf . 
 
Section 4.1.1.2, page 127  
According to the Secretariat 's report: "The overall goal for the sector is to make agriculture a growth 
industry, with greater private -sector participation"  
 
EU Question N° 23  
There seems to be no reference to sustainability or pollution reduction from agricultural activities as 
an objective for this sector. Is there no such goal or strategy? E.g. with a view to reduction of 
ammonia and methane (notably from rice production) emissions from agricultu re into air, or nitrates 
pollution from agriculture into water. Trade relevance: to ensure a level playing field with European 
farmers who must contribute to compliance with the Ambient Air Quality and National Emission 
Ceilings Directives, as well as the Water Framework and Nitrates Directives.  
 
RESPONSE  
Japan promotes sustainable agriculture, taking into account the reduction of impacts on the 
environment. Regarding emissions from agriculture, Japan implements reduction measures based 
on the Plan for Glob al Warming Countermeasures of the Ministry of Agriculture, Forestry and WT/TPR/M/397/Add.1  
 
- 91 - 
 
Fisheries. Regarding water pollution by nitrogen, the Water Pollution Prevention Act regulates 
effluent from facilities devoted to agriculture.  
 
Section 4.4.1 Financial services; para 4.157, page 166.  
 
EU Question N° 24  
How are SDGs incorporated in Japan's corporate governance policy?  
Does the JFSA  have a plan to bring reporting requirements in line with the Task Force on Climate -
related Financial Disclosures (TCFD) recommendations? If so, in what way?  
 
RESPONSE  
Japan 's Corporate Governance Code (revised on June 2018) articulates that "Companies sh ould take 
appropriate measures to address sustainability issues, including social and environmental matters", 
and clearly indicated "diversity, including gender and international experience" on the board of 
directors as an important factor.  
In addition, Ja pan's Stewardship Code indicates that institutional investors should appropriately 
monitor investee companies with the aim of enhancing the medium - to long -term corporate value. 
As an example of factors to be considered in monitoring, it illustrates the in vestee companies ' 
business risks and opportunities arising from social and environmental matters.  The Code is now 
under revision, and the revision draft (published in December 2019) incorporates "the consideration 
of sustainability (medium - to long -term su stainability including ESG factors)."  
Regarding the TCFD recommendations, FSA, in cooperation with relevant ministries, will continue to 
support companies' voluntary initiatives to improve corporate disclosures aligned with the 
recommendations.  
 
Section 4.4.1.1. Regulatory evolutions in the banking Sector; para. 4.163 and 4.164, page 
167. 
 
EU Question N° 25  
How would the additional capital requirements under the final Basel III affect the Japanese banks 
and the economy as a whole?  
 
Is cross -shareholdings expected to decline and consequently lead to more internationalisation of 
Japanese business?  
 
RESPONSE  
Regarding finalized Basel III, FSA plans to smoothly implement the rule based on the internationally 
agreed implementation date, with adequate communicat ion to stakeholders to mitigate negative 
impacts on banks and the Japanese economy.  
While it is difficult to accurately measure a direct impact of the cross -shareholdings on 
internationalization of Japanese business, the major banks have been working on re ducing the cross -
shareholdings for their risk management purposes, even before the development of the finalized 
Basel III.  
 
Section 4.1.1.3 Institutional and legal framework; para. 4.15, page 129.  
 
EU Question N° 26  
Regarding the Act on the Support for Str engthening Agricultural Competitiveness – the objective of 
which is to "ensure the sustainable development of agricultural and agricultural production -related 
industries" – does Japan plan to undertake/adopt any actions or policies to mitigate the effects of 
climate change?  
 
RESPONSE  
Japan does recognize the importance of mitigation of climate change effects in the areas of 
agriculture, forestry and fisheries as well as related industries, promoting the emission reduction 
and absorption increase of greenhou se gases, the use of renewable energy in rural areas, based on 
the Plan for Global Warming Countermeasures of the Ministry of Agriculture, Forestry and Fisheries.  
 
Section 4.2.2.1.1, page 155  
According to the Secretariat 's report: "However, it emits a considerable amount of greenhouse 
gases, which runs counter to the reduction objectives undertaken in the context of the Paris 
Convention. The Government intends to keep coal as a major source of energy, since it is expected WT/TPR/M/397/Add.1  
 
- 92 - 
 
to represent 25% of the total primary energy source in 2030 and 26% of electricity production, while 
encouraging the adoption of technologies reducing emissions, such as Integrated Gasification 
Combined Cycle, Ultra Super Critical pressure, and Carbon Capt ure Utilization and Storage."  
 
EU Question N° 27  
Please note that coal combustion is also a source of particulate matter and black carbon emissions 
into the air, with a significant impact on human health and on ecosystems. Air pollution is transported 
long distances, across borders. Are these health aspects be taken into account when considering the 
strategy for coal use and coal production ahead?  
 
RESPONSE  
For domestic coal -fired power generation, under the current Basic Energy Plan, the companies are 
working on shifting to cleaner gas usage and fading out inefficient coal while promoting higher 
efficiency.  
Considering the next energy basic plan, the METI (Ministry of Economy, Industries and Trade) 
comprehensively considers aspects such as environmental  issues, economic efficiency, stable energy 
supply, and safety. The METI is going to discuss with related ministries and agencies.  
In addition, new technologies for recycling CO2, such as artificial photosynthesis and concrete that 
absorbs CO2, have been d eveloped. The government has set a goal of "Beyond zero," and will 
promote such innovation.  
 
Section 4.1.1.2 Agricultural policy; para. 4.7, page 127  
 
The report states that the overall goal for the sector is to make agriculture a growth industry, with 
greater private -sector participation. It also highlights that agricultural policy continues to emphasize 
self-sufficiency and sets self -sufficiency targets for FY2025 of 45% on a calorie basis and 73% on a 
production value basis.  
 
EU Question N° 28  
What indi cators are going to be analysed to measure how the goal of greater private participation in 
this sector is being achieved?  
 
RESPONSE  
The Ministry of Agriculture, Forestry and Fisheries (MAFF) analyses and publishes the numbers of 
legal entities of agricul ture (i.e. farmland users and farmland holders). See the links below for further 
detailed information (in Japanese):  
- https://www.maff.go.jp/j/keiei/koukai/sannyu/a ttach/pdf/kigyou_sannyu -18.pdf . 
- https://www.maff.go.jp/j/keiei/koukai/sannyu/attach/pdf/kigyou_sannyu -21.pdf . 
 
EU Question N° 29  
Does Japan consider that the growt h in the agricultural sector and the self -sufficiency targets are 
compatible with a scenario of declining ageing population which is especially taking place in the 
Japanese agricultural sector?  
 
RESPONSE  
1. It is recognized that the agriculture sector in Japan faces challenges including the declining and 
ageing population, associated market changes, and increasing uncultured land.  
2. In addressing the challenges, Japan plans to strengthen the agriculture sector through farmland 
mobilization, innovative approaches, and collaboration with other sectors. All these efforts are in line 
with the self -sufficiency targets.  
 
Section 4.2.2 Energy; para. 4.110, page 154.  
 
EU Question N° 30  
According to the report, the regulatory framework introduced in 2 012 contributed to the growth of 
solar generation capacity from 0.9 GW in 2012 to 34.4 GW in 2017. However, this growth has come 
to an end and the relative share of the solar energy in the renewable energies for 2030 is expected 
to decrease.  
 
Did the 2012  regulatory framework take into account the cost of dismantling photovoltaic power 
stations once they have ended their useful life? Who was envisaged that would bear the dismantling 
cost?   WT/TPR/M/397/Add.1  
 
- 93 - 
 
RESPONSE  
Since the introduction of the FIT scheme in 2012, the cos t of disposing photovoltaic power stations 
has already been included in the FIT tariffs, and it is expected that the power generators bear the 
disposing cost.  
 
Section 4.1.1.2 Agricultural policy, para. 4.9, page 128.  
 
EU Question N° 31  
In the 2017, as wa s mentioned in the WTO Trade Policy Review (WT/TPR/S/351), the Japanese 
government indicated that it would implement reform to enhance the competitiveness of its 
agriculture. Could Japan indicate what particular reform steps have been already taken within this 
package and can it already assess what effect they had on the competitiveness of the agricultural 
sector?  
 
RESPONSE  
1) Based on the Policy Package for Enhancing the Competitiveness of Agriculture, Japan has 
implemented the restructuring of distribution a nd processing industries as well as the production 
cost reduction through lowering prices of agricultural inputs. In this regard, 11 related acts were 
passed such as the Act on the Support for Strengthening Agricultural Competitiveness.  
2) The resultant effects include simplification (e.g., 550 products to 25 products) and reduced 
prices of certain fertilizers (10 -30% reduction) provided by National Federation of Agricultural 
Cooperative Associations.  
 
Section 4.1.1.5.3.2, page 139.  
 
EU Questio n N° 32  
According to the Secretariat report, in section 4.1.1.5.3.2 (page 139) it appears that the aid for 
sugar beet has increased since the last review.  
 
Could Japan clarify what are the reasons for the increase in the level of aid for sugar beet? What is 
the impact of this increase on the national production and imports?  
 
RESPONSE  
As the payment rate is set at the level of the gap between the production cost and sales price, it 
varies depending on the year. For example, the payment rate in FY2017 was decreased from that of 
the preceding year. The level of the payment rate does not make differences in the income level, 
and therefore it does not affect domestic production or importation.  
 
Section 4.1.1.4 Trade policies and border measures; table 4.6, pag e 132.  
 
EU Question N° 33  
According to the report by the Secretariat, the fill rate of Japan 's TRQs ranges from 23.4% to 
305.6%. Could Japan clarify how the fill rate of a TRQ, notably the one on "designated dairy products 
for general use" can be higher than 100%?  
 
RESPONSE  
The imports of the TRQ for "designated dairy products for general use" are implemented by state -
trading with a view to stabilizing supply -demand for dairy products.  
 
Section 4.1.1.5.3.5 Livestock and livestock products; para. 4. 54, page 141.  
 
EU Question N° 34  
According to the report by the Secretariat, "coinciding with the entry into force of the CPTPP in 2018, 
Japan increased support for domestic pork producers by expanding the Hog Growers Business 
Stabilisation Measure (also k nown as Marukin)".  
 
Could Japan explain what is the public expenditure associated to this measure and its expected 
impact in terms of pork production and trade? Have these measures been (or will be) further 
enhanced after the conclusion of the EU -JAP EPA?  
 WT/TPR/M/397/Add.1  
 
- 94 - 
 
RESPONSE  
- The expenditure in FY2019 was 16.8 billion yen (c.f. 10 billion yen in FY2018). The legal status for 
the measures was strengthened at the time of entry into force of TPP11, together with the 
compensate rate change (90% from 80% originally) as w ell as the subsidy rate change (75% from 
50% originally).  
- As the purpose of the measures still remains to address the adverse effects due to exchange rate 
fluctuations, there are no trade distorting effects expected to pork production and the relevant tr ade. 
- These measures have not been changed after the JAPAN -EU EPA, and there is no foreseeable plan 
to do so.  
 
Section 4.1.2.6 Border and domestic support measures for Fishery; page 147.  
 
EU Question N° 35  
Can Japan provide information regarding the functioning of IQ system for fishery products managed 
by METI?  
 
RESPONSE  
This quantitative import restrictions (import quotas), which is administered by METI in cooperation 
with MAFF, play an important role in the conservation and management of fisheries resources in 
waters adjacent to Japan.  
 
Section 4.2.2.1.1 Coal  
 
EU Questi on N° 36  
According to the Secretariat 's report: "The Government intends to keep coal as a major source of 
energy, since it is expected to represent 25% of the total primary energy source in 2030". [Coal 
represents 25% of primary energy supply in FY2017 and  FY 2030, according to Chart 4.7 on page 
152]. In the view of Japan's commitments under the Paris Agreement, what are the plans of Japan 
concerning the reduction of the coal share as the primary energy supply?  
 
RESPONSE  
The Government of Japan is committed  to steady realization of the 2030 energy mix, which is 
consistent with the reduction target submitted to the United Nations Framework Convention on 
Climate Change Secretariat as Japan 's NDC under the Paris Agreement. Specifically, the Government 
of Japan promotes conversion to high efficiency and next -generation coal thermal power generation 
and fadeout of inefficient coal power plants, as well as encouraging energy saving and maximum 
introduction of renewable energy.  
 
Section 4.4.2 Telecommunication services; para. 4.177, page 169.  
 
EU Question N° 37  
MIC is the government agency primarily responsible for telecommunications policy and legislation, 
and for regulating the sector. The EU and the EU industry in Japan consider that it woul d be good 
practice to have an independent regulator reporting directly to the Japanese Parliament. This would 
ensure a decision -making process that is objective, transparent and accountable.  
Consequently, the EU would like to reiterate its previous questi on: Could Japan explain the measures 
it has taken to ensure independence of the regulatory function of MIC from the policy setting 
functions of MIC? This seems particularly relevant since the Japanese government acts as both the 
regulator and major shareho lder in the Japanese telecommunications sector and has a 35.9% stake 
in NTT (WT/TPR/S/397, page 170).  
 
RESPONSE  
About ensuring the independence of regulatory functions from the policy setting functions, the 
Constitution of Japan stipulates the Cabinet as a body exercising executive power, provides a 
parliamentary system of government, and regulates each ministry 's responsibility for managing 
administration over each jurisdiction. In the field of telecommunication, given the rapid innovation 
of technologies  and the necessity to handle this field based on the state strategy for maintaining 
state competition power, Japan thinks the system is appropriate where ministers take responsibilities 
and manage administration promptly through the ultimately single -perso n mechanism so that the 
ministry can perform flexible, united and comprehensive administrative tasks.  
The regulation in the field of telecommunication, based on the stipulated rules of relevant regulations 
(like the Telecommunication Business Act and the R adio Act), is implemented with transparency and WT/TPR/M/397/Add.1  
 
- 95 - 
 
predictability. About NTT, the minister managing telecommunication administration is different from 
the minister having its stock.  
 
Section 4.4.2 Telecommunication services; para. 4.178 (page 170) on changes in the 
telecoms regime; para. 4.182 (page 170) on government telecoms policy; and para. 4.185 
(page 171) on telecoms prices.  
 
EU Question N° 38  
According to the Secretariat 's report para. 4.182 (page 170), the government policy regarding 
telecommunications  during the period under review was essentially focused on consumer protection 
and the lowering of costs linked to the use of mobile handsets. Yet, according to para. 4.185 of the 
report (page 171) telecommunications prices in Japan remain relatively high by international 
standards, especially for fixed and mobile broadband services. In that respect, the report notes 
(para. 4.178, page 170) that during the period under review there were no changes regarding, for 
instance, the mobile interconnection regime, facility sharing, or local loop unbundling.  
Could Japan indicate how it intends to promote competition and further entry into the Japanese 
telecommunications market with regard to:  
i) the level and transparency of calculation of access and interconnection charges,  
ii) the prohibition of undue discrimination between the incumbent's own businesses and those of 
competitors and the publication of separate accounts;  
iii) the avoidance of any cross -subsidisation in the universal service compensation; and  
iv) promoting furth er MVNO uptake in Japan?  
 
RESPONSE  
i) According to the Telecommunications Business Act, telecommunications carriers running Category 
I designated telecommunications facilities and telecommunications carriers running Category II 
designated telecommunication s facilities shall formulate and publish "general conditions of contracts 
for interconnection" on interconnection charges for each connection function and the terms and 
conditions of interconnection such as technical conditions required at interconnection points with 
other carriers' facilities. Regarding interconnection charges, the Ministry of Internal Affairs and 
Communications conducts verification based on the calculation and this process ensures the 
appropriate level of calculation.  
ii) According to t he Telecommunications Business Act,  telecommunications carriers running Category 
I designated telecommunications facilities and telecommunications carriers running Category II 
designated telecommunications facilities  must not engage in discriminatory treat ment and make the 
terms and conditions of interconnection disadvantageous for other facilities in comparison with their 
own telecommunications facilities. In addition, they shall keep and make publicly available accounts 
for interconnection.  
iii) At presen t, in the Order of the Ministry of Internal Affairs and Communications, subscribed 
telephone, public telephone and emergency call are defined as telecommunications services that are 
to be provided nationwide due to their indispensability to the lives of th e people. In order to ensure 
the appropriate, fair and stable offer of these telecommunications services, there is a grant system 
to cover part of costs for these telecommunications services.  
iv) Japan improves fair competition environment of MNOs and MVNO s and promotes the spread of 
MVNO, by implementing various initiatives for ensuring appropriate network provision conditions 
and provision charges of MNOs to MVNOs such as the review of their calculation methods of 
interconnection charges appropriately in a timely manner, based on development trends of related 
technologies, status of discussion between MNOs and MVNOs, and requests from MVNOs.  
 
Section 4.4.3 Postal, courier and express services; para. 4.209, Page 175.  
 
EU Question N° 39  
According to the Sec retariat 's report "…express carriers, domestic, foreign or Japan Post Co Ltd, do 
not compete under exactly the same regulatory conditions, in terms of customs valuation methods 
and de minimis thresholds, location of customs clearance, traffic fines, loadin g and unloading of 
shipments, and advance cargo information…"  
Please provide more information on the difference in treatment between Japan Post Express Mail 
Service (EMS) and the parcels delivered by private operators. According to para. 4.195 (page 173), 
EMS is under the obligation of the universal service together with letters and postcards. Please 
explain the reason why EMS is in the scope of the universal service? What are the differences 
between the items, which are allowed to be sent by EMS and by par cel delivery service of private 
operators?  WT/TPR/M/397/Add.1  
 
- 96 - 
 
RESPONSE  
(1) Difference between EMS and the parcels delivered by private operators  
EMS is a postal item that is delivered to Japan Post by a foreign postal business operator 
("Designated Operator" of the UPU (Universal Postal Union)) through exchange and transit, in 
accordance with the Universal Postal Convention. Since Japan Post is una ble to identify the content 
of the postal items posted by sender in detail, the Customs office will investigate the name of the 
item, price, etc. of postal items and decide the amount of customs duty (This system is called "official 
assessment system"). Ho wever, a private operator such as an international express service provider, 
who delivers the item from the sender to the recipient consistently, is able to identify the content of 
the item. Therefore, the private operator or the recipient declares the nam e of the item, price, the 
amount of Customs duty, etc. (This system is called "self -assessment system"). In Japan, the self -
assessment system is also applied to international postal items including EMS in a case where the 
Customs value exceeds 200,000 yen,  as is the case of commercial freights. There is no difference 
between EMS and the parcels delivered by private operators in terms of de minimis. Customs 
clearance procedures are also processed at Customs offices for both EMS and the parcels delivered 
by private operators.  
(2) Reason why EMS is in the scope of the universal services  
According to the Article 3, Paragraph 2 of the Universal Postal Convention, the details of the scope 
of universal service are entrusted to the domestic laws and regulations of e ach Member State. Under 
the postal domestic legal system of Japan, the entire postal service is considered as the universal 
service based on the Postal Act (Act No.165 of 1947). Since the universal service obligation, which 
is to provide service universall y and fairly at a reasonable price is imposed on "international postal 
services", EMS is also a universal service, which is considered as a type of international postal 
services.  
(3) Differences between the items, which are allowed to be sent by EMS and by  parcel delivery 
service of private operators  
Since EMS is one of international postal services, sender cannot include prohibited items in the Article 
19 of Universal Postal Convention. On the other hand, each private service operator decides the  
prohibite d items based on the IATA regulations and domestic legislation, etc. Therefore,  the items 
that are allowed to be sent by parcel delivery services depend on the decision of each private 
operator.  
 
WT/TPR/G/397 – Government 's Report  
 
Section 1.3 Trends in Fo reign Direct Investment, page 3.  
 
EU Question N° 40  
According to OECD statistics (https://data.oecd.org/fdi/fdi -flows.htm#indicator -chart), Japan 's 
outward Foreign Direct Investment has tripled in the period between 2010 and 2017. How do you 
explain this s urge?  
 
RESPONSE  
Under a low interest rate environment in Japan, Japanese companies have increased investments to 
expand their businesses, such as expansion of overseas business to take in foreign demand and 
M&As to acquire the latest technology in such areas as IT or auto mobile sectors, where technology 
is rapidly advancing. For these reasons, outward FDI has been expanding.  
 
Section 2.1 Overview, page 4.  
 
EU Question N° 41  
What is the status of negotiations with regard to the Regional Comprehensive Economic Partnership? 
Is India expected to join the agreement?  
 
RESPONSE  
As indicated in the Joint Leaders ' Statement on the RCEP adopted on 4 November 2019 in Bangkok, 
Thailand, 15 RCEP Participating Countries have concluded text -based negotiations for all 20 chapters 
and esse ntially all their market access issues, and all RCEP Participating Countries are working 
together to resolve India 's outstanding issues.  
 WT/TPR/M/397/Add.1  
 
- 97 - 
 
Section 2.4.3 Japan's Bilateral Activities; para. 2.21, page 9.  
 
EU Question N° 42  
What is the status of negotiations for a second phase trade agreement between Japan and the US?  
 
RESPONSE  
Please refer to paragraph 3 of the Joint Statement of Japan and the United States on 
25 September  2019. (https://www.mofa.go.jp/mofaj/files/000520821.pdf ) 
 
Section 2.4.3 Japan's Bilateral Activities, para. 2.24, page 10  
 
EU Question N° 43  
Could Japan please provide figures for Foreign Direct Inves tment into the Russian Federation for the 
year 2018?  
 
RESPONSE  
Japan 's Foreign Direct Investment  into the Russian Federation for the year 2018 was 38 billion 
Japanese yen.  
 
Section 3.4 Tokyo International Conference on African Development; page 12.  
 
EU Question N° 44  
What are the next steps with regard to the initiative to match Japanese and African start -ups? Could 
Japan provide further details on its investment priorities across Africa?  
 
RESPONSE  
On the occasion of the 7th Tokyo International Conference on African Development (TICAD7) in 
August 2019, the Japan External Trade Organization (JETRO), the Japan International Cooperation 
Agency (JICA) and the United Nations Devel opment Programme (UNDP) signed a tripartite 
partnership agreement to promote innovations by Japanese and African entrepreneurs and start -
ups and to contribute through business to the solution of social problems African countries are facing.  
As for the nex t steps, Japan will dispatch public and private joint missions to African countries every 
year and help facilitate business matching between Japanese and African SMEs, including start -ups.  
There are several priority areas for Japanese start -ups. For examp le, FinTech, logistics and solar 
energies are often cited as priorities.  
 
TPR Japan - Minutes of the meeting (WT/TPR/M/351) - 8 and 10 March 2017  
 
Section 4.16.  
 
EU Question N° 45  
Trading with Japan has also been facilitated by the introduction of Authorized Economic Operators 
or AEOs. We note that frequent use of the concept has been made in that SMEs account for over 
40% of all AEOs. We do, however, feel that the overall number of  600 certified AEOs seems rather 
low given the size of the economy.  
Does Japan intend to pro -actively promote the use of AEOs, and, more importantly, increase the 
number significantly in the near future?  
 
RESPONSE  
The government of Japan continues to enco urage the utilization of AEO Programs by introducing 
measures, such as adding new benefits or simplifying Customs procedures for AEOs, based on the 
needs of Economic Operators.  
The government of Japan continues to implement an enthusiastic PR campaign to p romote the AEO 
Program to Economic Operators (who are not authorized at the present time), including MSMEs, in 
order to increase the number of AEOs.  
 
 
  WT/TPR/M/397/Add.1  
 
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CHINA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Page 42 ，Para 2.16  
In September 2019, Japan signed the Japan -United States Trade Agreement to eliminate or reduce 
tariffs on certain agricultural and industrial products, and the Japan -United States Digital Trade 
Agreement, which is intended to establish high standard rules in this area.  
 
Ques tion 1 
Please elaborate on the proportion of products covered by the Japan -United States Trade 
Agreement in the trade (in terms of volume and tariff lines) of each side. Does this Agreement 
cover "substantially all the trade" between both sides as prescrib ed by the Article XXIV of the 
General Agreement on Tariffs and Trade (GATT)? Please explain the conformity of the Japan -United 
States Trade Agreement with the Article XXIV of the GATT.  
 
RESPONSE  
There has been no common understanding among WTO Members on how to define the phrase 
"substantially all the trade" in Article XXIV of GATT. Article 5 of the Japan -US Trade Agreement 
provides: "Further to the existing commitments by each Party under the WTO Agreement, unless 
otherwise provided for in this  Agreement, each Party shall improve market access in accordance 
with Annex I or Annex II." By the implementation of this provision, the tariff elimination covering 
substantially all the trade between the two countries will be achieved. On that basis, Japa n is of 
the view that the Japan -US Trade Agreement is consistent with Article XXIV of GATT in itself.  
 
Question  2 
If the Japan -United States Trade Agreement is an "interim agreement", please elaborate on the 
plan and schedule for the final free trade agree ment between Japan and the United States.  
 
RESPONSE  
See the above response of Question1 of China.  
 
Question  3 
When will Japan notify this Agreement to the WTO Committee on Regional Trade Agreements 
(CRTA)?  
 
RESPONSE  
Notification of the Japan -US Trade Agreement to the CRTA is under coordination with the U.S.  
 
Page 125 ，Para 4.7  
The overall goal for the sector is to make agriculture a growth industry, with greater private -sector 
participation. The agricultural policy is set out in the Food, Agriculture and Rural Areas Basic Plan, 
which is reviewed roughly every five years. The current Plan, adopted in March 2015, sets out the 
objectives of doubling incomes in agriculture and rural areas over the nex t ten years, by increasing 
domestic and export demand, improving value chains, reducing costs, promoting structural reform, 
and improving productivity…  
China appreciates the efforts made by the Japanese government to promote the development  of 
agricultural  sector and increase farmer 's incomes, and would like to get more information on the 
detailed measures and the resulting achievements with a view to realizing the objective of doubling 
incomes in agriculture and rural areas set out in the Food, Agriculture  and Rural Areas Basic Plan. 
Particularly, China would like more details on Japan 's policies for reducing costs, promoting 
structural reform, and improving productivity.  
 
Question  4 
If possible, please elaborate on the changes of production costs (includin g core factors like the 
means of production, land rents and labor costs) in agricultural sector resulted from the 
implementation of the facilitation measures, and provide relevant data.  
 
RESPONSE  
Various statistical information, which has been annually col lected and analyzed for the policy 
planning and evaluation for agriculture, is available at the link below:  
https://www.maff.go.jp/e/data/stat/93th/index.html . WT/TPR/M/397/Add.1  
 
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Question  5 
If possible, in terms of the structural reform on distribution and processing of agricultural products, 
China expects Japan to provide detailed measures on the basis of The Policy Package for E nhancing 
Competitiveness of Japan 's Agriculture (Outline) 
(https://www.maff.go.jp/e/policies/law_plan/attach/pdf/index -4.pdf). 
 
RESPONSE  
Please refer to the following documen t (page 4 -6, Japanese only):  
https://www.maff.go.jp/j/kanbo/nougyo_kyousou_ryoku/attach/pdf/index -1.pdf. 
 
Question  6 
Please specify Japan 's practice, progress and achievements secured in the promotion of feed rice.  
 
RESPONSE  
To promote feed rice production, MAFF is encouraging farmers to reduce production costs by 
introducing high -yielding varieties. Branding activity of livestock products using feed ri ce has been 
promoted in recent years, which aims to improve farmer 's income by raising the transaction price 
of livestock products. As a result of these efforts, the cultivated area of feed rice has increased 
from 22,000 to 80,000 ha from 2013 to 2018 (the  yield has increased from 110,000 to 430,000 
tons) 
 
Page 125 ，Para 4.7  
…Agricultural policy continues to emphasize self -sufficiency, and the Plan sets self -sufficiency 
targets for FY2025 of 45% on a calorie basis and 73% on a production value basis, as well  as a 
self-sufficiency target for feeds of 40% for FY2025. In 2017, self -sufficiency on a calorie basis was 
as 37%, under target due to climate change affecting the production of main crops such as wheat 
and soybeans. Self -sufficiency rates for individual products vary year -on-year but are consistently 
high (at 70% and above) for: unshu, rice; eggs; sweet potato; fungi; vegetables and tubers 
(Table  A4.1).  
 
Question  7 
We have noticed that the Japanese government attaches great importance on  the self-sufficiency 
of agricultural products. We would like to know the specific considerations for setting up the self -
sufficiency targets of agricultural products, including targets based on calories and output value, 
and those for specific products (if any ). Meanwhile, we have observed that Japan 's self-sufficiency 
rate for rice is consistently high at over 97%.  
 
RESPONSE  
The relevant act, the Food, Agriculture and Rural Areas Basic Act, stipulates that the target level 
of food self -sufficiency rate should be a guide for national agricultural production and food 
consumption. In line with the verification discussions in the Council of Food, Agriculture and Rural 
Area Policies, the Ministry set two principles: i) the demand estimates should be realistic for ea ch 
commodity, and ii) the supply estimates should be based on such consumption levels and with 
proper consideration of realistic production conditions. Taking into account the principles and 
feasibility within the time scale, the Ministry decided the targe t level of 45% in 2025, which was 
raised from 39% in 2013.  
 
Page 126 ，Para 4.11  
…Key policy developments over the review period were the abolition of the Direct Payment for Rice 
and of the administrative allocation of rice production volume targets; the introduction of a new 
Revenue Insurance programme, applicable to almost all farm products…  
 
Question  8 
Please explain if there is a link between the abolition of the Direct Payment for Rice and the 
introduction of a new Revenue Insurance programme? After t he abolition of the Direct Payment 
for Rice, if rice farmers can receive compensations or guarantees for their income based on the 
insurance programme?  
 
RESPONSE  
There is no linkage between the two. Rice farmers cannot receive compensation for income loss 
caused by the abolition of the Direct Payment for Rice.  
 WT/TPR/M/397/Add.1  
 
- 100 - 
 
Page 127 ，Para 4.21  
…It estimates a total loss of JPY 112.5 billion for these products under the Japan -EU EPA, and of 
JPY 145.9 billion under the CPTPP. The agricultural products projected to be hardest hit are beef 
and dairy products under the Japan -EU EPA, and beef, dairy p roducts and pig meat under the 
CPTPP. However, the Government is of the view that, despite this, domestic production volumes 
and farmer's incomes will be maintained through government measures.  
 
Question  9 
Please specify the measures to be adopted by the Japanese government to maintain farmer 's 
incomes.  
 
RESPONSE  
Japan is taking the following measures in order to help mindful producers engaged in agriculture, 
forestry and fisheries:  
i) "Enhancement of robustness" to support productivity improvement through development and 
extension of smart technologies, block resizing of farmland, etc.  
ii) "Stabilization of management" to support financial stability.  
 
Page 130 ，Para 4.24  
…Under all methods, the applicant for an allocation must meet criter ia, such as end -use 
requirements, record as an importer, or planned usage…  
 
Question  10 
Please elaborate on the specific end -use requirements which shall be met by the applicants.  
 
RESPONSE  
For the tariff rate quota implementation, the specific natures of products are taken into account. 
For your reference, the relevant information on the implementation is publicly available on the 
official websites and through the WTO notifications.  
 
Page 131 ，Para 4.27  
Japan's food assistance is provided under n on-emergency programmes. It responds to requests 
from recipient countries or international organizations. Cash is provided for the purchase of food 
from the open market…  
 
Question  11 
Could Japan please indicate if there are any specific requirements for the use of the cash 
assistance? For example, whether it has to be spent o n the purchase of food in the Japanese 
market? Is there any in -kind assistance in addition to cash?  
 
RESPONSE  
Japan's food assistance is not in -kind but cash based. Japan provides funds for purchasing food 
based on the request of recipient countries or international organizations.  
 
Page 131 ，Para 4.29  
At the prefectural level, government -supported institutions are charged with promoting farmland 
consolidation. These pr efectural institutions rent farmland, improve infrastructure (if necessary), 
and lease the land to core farmers. They had a total budget of JPY 22 billion in 2019. Farmers that 
increase farm size continue to be eligible to receive payments of up to JPY 10, 000 for each 
additional 0.1 ha; payments of up to JPY 700,000 per household are available for the purpose of 
leasing land to farmers.  
 
Question  12 
Please explain how Japan determines the rent of land leased by prefectural institutions to farmers? 
Is there any connection among the rent and the cost/spending on improved infrastructure of land 
leased to farmers? How is the subsidy standard (10,000JPY/0. 1ha) for tenant farmers being  
determined ?   
 
RESPONSE  
The rent is agreed to between the farmer and the institution, with proper consideration of local 
rent levels of farmlands. There is no clear connection with infrastructure related costs. The subsidy 
standard is wrongly described in the report, and the relevant subsidy has been abolished.  WT/TPR/M/397/Add.1  
 
- 101 - 
 
Page 131 ，Para 4.30  
The Agricultural Disaster Compensation Act used to serve as the legal basis for the Agricultural 
Mutual Aid System (AMAS) that provides compensation from losses caused by natural disasters 
(including from extreme weather), diseases, and other events. In 2018, the Act was revised, and 
renamed the Agricultural Insurance Act. It introduces procedural efficiencies as well as a Revenue 
Insuranc e Program (RIP). The RIP, effective from 2019, operates in addition to the AMAS, and is 
applicable to all farm products and certain livestock products. It is a voluntary insurance system, 
designed to compensate farmers in the event of revenue decreases; fa rmers taking out insurance 
policies are paid back for 90% of the loss when the loss is more than 10%, based on five -year 
average farming income. The Government contributes 75% of the reserve fund and about 50% of 
the premiums (the insurance premium rate is  1.08%).  
 
Question  13 
Please specify how Japan plans to notify the new Revenue Insurance Program (RIP)? Which 
categories do the relevant subsidies fall into under the Article 6 and Annex 2 of the Agreement on 
Agriculture?  
 
RESPONSE  
Japan will examine the c ategorization prior to the next DS1 notification.  
 
Page 11 ，Para 4  
…Notwithstanding some minor fluctuations in trade shares, Japan's main trading partners remain 
China, the United States and the European Union, whereas its main inbound/outbound foreign 
direct investment (FDI) partners were virtually the same, i.e. the United States, the British Cayman 
Islands, the European Union and the Republic of Korea. The FDI inbound stock continued to rise 
steadily and was largely held by Eu ropean Union investors. Government initiatives to attract FDI 
have been focused on providing matching and advisory services. Over the review period, the main 
law governing FDI, the Foreign Exchange and Foreign Trade Act, was amended for reasons of 
security  protection, by: expanding the scope of prior checking of unlisted stock transfers between 
foreign investors; and introducing a provision that unregistered foreign investors may be subject 
to executive orders, including orders to sell their holding stocks.  Prior notification and approval 
requirements are in place for investments where there could be significant adverse effects on the 
smooth management of the national economy or on the grounds of public order, public safety or 
national security. FDI restrict ions remain in place in the telecommunications, broadcasting and 
radio sectors.  
 
Question  14 
Please provide more information on how the Japanese Government focuses on providing matching 
and advisory services in order to attract FDI. Is there any relevant r egulation or policy? If yes, 
please specify the details.  
 
RESPONSE  
JETRO provides comprehensive support such as disseminating information on the Japanese 
business environment, discovering companies interested in investing in Japan, and supporting 
companies  to establish and expand new business in Japan. For foreign/foreign -affiliated 
companies, JETRO actively engages on expansion of business with Japanese parties through 
providing business matching opportunities with Japanese companies, supporting companies to 
cooperate with local governments, and supporting secondary investment and expanding business. 
As a part of JETRO's activities to promote inward FDI, JETRO supports business setup through 
ISBC (Invest Japan Business Support Center) and provides advice se rvices from specialists on 
business setups, legal, employment, and tax.  
 
Question  15 
Please elaborate on what kind of investments may cause significant adverse effects on the smooth 
management of the national economy or on the grounds of public order, public safety or national 
security.  
 
RESPONSE  
Ministry of Finance and the competent ministries have released factors to be considered in the 
examination process as follows.  
1. Maintenance of defense production and technological bases related to industries concerning 
national security (i.e. weapons, aircrafts, space and nuclear r elated industries, etc.)  WT/TPR/M/397/Add.1  
 
- 102 - 
 
2. Prevention of outflow of critical technologies to the national security.  
3. Preservation of public services in an emergency and peacetime situations.  
4. Protection of public safety.  
5. Maintenance of stable supply of food or ene rgy etc., sound stockpiling policy, preservation of 
national land, and productivity and continuity of specific domestic businesses, with respect to 
business types of which Japan has lodged a reservation pursuant to the provisions of Article 2 -b 
of the Code  of Liberalization of Capital Movements of the Organization for Economic Cooperation 
and Development, from the viewpoint of smooth management of the Japanese economy.  
6. Characteristics of the investor and its affiliate party(ies), such as, their nature, f inancing plan 
and record of performance of their investment, etc.  
7. Such other factors that need to be considered.  
 
Page 11 ，Para 5  
…Over the review period, Japan was involved in three new dispute settlement cases as 
complainant, and reserved its third-party rights in 34 cases. Japan maintained a strong record of 
notifications to the WTO, although up -to-date notifications on domestic support in agriculture and 
government procurement are outstanding. Since 2017, new regional trade agreements that ha ve 
entered into force for Japan are: the Comprehensive and Progressive Agreement for Trans -Pacific 
Partnership (CPTPP) and the EU -Japan EPA. Japan also signed the First Protocol to Amend the 
Agreement on ASEAN -Japan Comprehensive Economic Partnership (AJCE P), which includes 
chapters on trade in services and on investment, as well as a trade agreement with the United 
States. Changes were made to the framework for graduation from Japan's GSP scheme, with a 
view to granting preferences to the economies that ne ed those most. Key initiatives to improve 
the business environment include: introducing labour force reforms; improving corporate 
governance; and lowering corporate tax. Regulatory reform pilot schemes continue to be 
undertaken through the National Strateg ic Special Zone initiative.  
 
Question  16 
What were three new dispute settlement cases for which Japan was involved as complainant over 
the review period?  What are the major concerns for the Japanese Government?   
 
RESPONSE  
The three new dispute settlement cases Japan brought as complainant over the review period are 
the following:  
1. Korea - Sunset Review of Anti -Dumping Duties on Stainless Steel Bars (DS553)  
On 18 June 2018, Japan requested consultations with Korea concerning Korea 's determinati on to 
continue the imposition of anti -dumping duties on stainless steel bars from Japan, based on the 
conclusion of the third sunset review of anti -dumping duties on stainless steel bars. The measure 
appears to be inconsistent with Korea 's obligations unde r WTO Agreements as, among others, the 
measure fails to take into account the lack of competitive relationships among the likely dumped 
imports from several sources and the domestic like product.  
2. Korea - Measures Affecting Trade in Commercial Vessels (D S571)  
On 6 November 2018, Japan requested consultations with Korea concerning the measures affecting 
trade in commercial vessels such as (1) corporate restructuring measures to support Korean 
shipbuilders, (2) guarantees and other insurance for financing r elated to commercial vessel orders 
placed with Korean shipbuilders etc. These measures appear to be inconsistent with Korea 's 
obligations under the WTO Agreements. Japan is concerned that these measures distort the 
shipbuilding market by, among others, ena bling continued market presence of Korean shipbuilders 
in financial difficulties, prolonging periods of otherwise unsustainable low pricing, and stimulating 
sales of vessels built in Korea.  
3. India - Tariff Treatment on Certain Goods (DS584)  
On 10 May 201 9, Japan requested consultations with India regarding the tariff treatment that India 
accords to certain ICT related goods such as telephones for cellular networks or for other wireless 
networks and base stations etc. India set bound tariff rates for relev ant ICT products at zero in its 
Schedule of Concessions and Commitments annexed to the GATT 1994. However, India imposes 
10 - 20% tariffs on these products and therefore these measures appear to be inconsistent with 
India's obligations under the WTO Agreem ents, in particular Article II of the GATT 1994.  
 
Question  17 
Please provide more information regarding the changes made to the framework for graduation 
from Japan's GSP scheme. How does Japan identify the economies that need them most? Is there 
a fixed co untry -list as the most needed economies?  WT/TPR/M/397/Add.1  
 
- 103 - 
 
RESPONSE  
Please refer to 2.3.2.2 in the Trade Policy Review Report by the Secretariat.  
 
Page 23 ，Para 1.11  
Trade and domestic reform are considered intrinsically linked, and constitute the "third arrow" of 
Abenomics. Japan's ambitious structural reform agenda, inter alia,  covering deregulation efforts 
in the gas and electricity markets, was aimed at lifting gro wth, including reflation. However, 
according to the IMF, bottlenecks remain in labour and product markets, and in the corporate 
sector.  
 
Question  18 
How does Japan think the overseas human resources could help to solve the bottlenecks in labor 
and product market?   
 
RESPONSE  
Shortage of labour force in Japan, especially among small and medium -sized companies,  
is so increasing that there is a possibility to inhibit economic and social sustainability in Japan. 
Therefore, last April, the Government of Japan introduced a new status of residence (*) for foreign 
human resources who have a certain level of professiona l knowledge and skills in order to alleviate 
the shortage of labour force. While we introduce the new status of residence and accept more 
foreign human resources, we also need to increase labor productivity by equipment investment, 
innovation in technology , reformation of working practices, and so on, and promote labour 
participation of the elderly and women in Japan.  
(*) Status of residence  
The status of residence is a status granted by an immigration inspector in accordance with the 
foreign national 's pur pose of entry/stay (38 categories) when he/she enters Japan. Foreign 
nationals can engage in the activities within the scope of their status of residence.  
 
Page 24 ，Para 1.15  
Since its last Review, Japan undertook competition policy -related legislative amen dments. The 
Antimonopoly Law was amended to fulfil its commitments under the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership (CPTPP) (Section  2.3.2.1.1) in 2018, and to 
revise the surcharge system in 2019. The Unfair Competition Preve ntion Law was amended to 
encourage businesses to utilize data and increase productivity from new information technologies.  
 
Question  19 
Please provide more details regarding the amendments for the Antimonopoly Law.  
 
RESPONSE  
The amendment act of the Antimonopoly Act, which was promulgated in June 2019, introduced 
the system which allows the JFTC to reduce the amount of surcharges when enterprises submit 
information and documents which contribute to the fact -finding of the case , in addition to the 
reduction according to the order of application. Specifically, under the amended Antimonopoly Act, 
the JFTC will become able to reduce the amount of surcharges calculated based on the amount of 
sales of goods or services subject to car tels and predetermined rates by up to 40% for violators 
who apply for the leniency programme before the investigation start date, and up to 20% for 
violators who apply for the leniency programme on or after the investigation start date, in addition 
to the reduction according to the order of application. The amended Antimonopoly Act has also 
abolished the current limitation on the number of enterprises who can apply for the leniency 
programme. To be specific, while five enterprises can apply for the leniency  programme under the 
current system, after the revision of the Antimonopoly Act, all the enterprises under the 
investigation will have the opportunity of cooperating in the JFTC 's investigation voluntarily.  
In addition, the amendment includes the revision of calculation methods for surcharges, which 
expands the scope of surcharges. Specifically, the calculation period is extended back 10 years 
from the first date of the JFTC 's investigation, and some elements (e.g. subcontract) are added to 
the basis of the  calculation. The amendment will come into effect by December 25, 2020.  
 
Page 46 ，Para 2.30  
Japan is member of APEC, which accounted for 74% of its trade (imports and exports) in 2018. 
One of its objectives is free and open trade and investment by 2020. In APEC's 2018 Bogor Goals 
Progress Report, which monitors progress towards this target, it is noted that, while positive steps 
have been taken, there is a need for continuous improvement in various areas. With respect to WT/TPR/M/397/Add.1  
 
- 104 - 
 
Japan specifically, the Report, inter alia, highlights tariff liberalization undertaken; relaxation of 
rules in some services sectors; initiatives to attract and facilitate foreign investment; trade 
facilitation measures; developments in the areas of government procurement and intellectual 
property rights; energy liberalization; and measures to facilitate entry of visitors into Japan. 
Attention was also drawn to FDI restrictions in TV broadcasting.  
 
Question  20 
According to APEC 's report mentioned in this paragraph, the Japanese government has achieved 
improvement in various sectors related to trade and investment in the past few years. Please 
kindly elaborate Japan 's further plan to make continuous progress in sectors mentioned above.  
 
RESPONSE  
As a final push towards the Bogor G oals, whose deadline is this year, APEC is working on various 
initiatives such as domestic service regulation, APEC Index, manufacturing related services, 
environmental related services, and Japan is contributing through sharing of its knowledge. Japan 
believes that it is important to make steady efforts so that progress in each sectors can be 
advanced even after 2020, based on the outcome of the final report on Bogor Goals which is 
scheduled to be completed within this year. In addition to the contribution  to APEC, Japan will 
promote further economic partnerships through the implementation of EPAs and investment 
agreements. Also, Japan aims for the signing of the RCEP Agreement by 16 countries by the end 
of this year.  
 
Page 46 ，Para 2.31  
In 2016, APEC leader s adopted the Lima Declaration on the Free Trade Area of the Asia Pacific 
(FTAAP), which envisages negotiations on a comprehensive RTA which would include "next -
generation trade and investment issues". These negotiations would be held outside of APEC but i n 
parallel with the APEC process, building upon regional undertakings such as the CPTPP and the 
Regional Comprehensive Economic Partnership. APEC members are now examining how current 
pathways could contribute to the realization of the FTAAP.  
 
Question  21 
Please elaborate on the Japanese government 's measures to make contribution to the realization 
of the FTAPP.  
 
RESPONSE  
TPP11, a "pathway"  for the realization of FTAAP, can be seen as a model for 21st century trade 
and investment rules due to it s high quality and comprehensiveness. Japan will continue to strive 
for steady implementation and expansion of such rules with other economies. With regard to the 
RCEP, Japan has been working on towards the signing of the agreement among 16 countries by 
the end of this year. In addition, Japan has been implementing capacity building initiatives without 
limiting areas, towards the realization of high quality and comprehensive FTAAP.  
 
Page 47 ，Para 2.36  
In 2017, the FEFTA was amended, inter alia , to expand the scope of a prior checking of unlisted 
stock transfers between foreign investors, and to introduce a provision that foreign investors 
investing in Japan without being registered may be subject to executive orders, including orders 
to sell their h olding stocks; these measures were taken in order to protect Japan's essential 
security. There have been no further amendments since 2017.  
 
Question  22 
Please explain the reason that the FEFTA restricts on unlisted stock transfers between foreign 
investors . 
 
RESPONSE  
Under the current globalized business environment, spread of critical technologies presents serious 
challenges to national security. In order to exercise strict control over critical technologies, FEFTA  
restricts on unlisted stock transfers between foreign investors.  
 
Question23  
Please clarify whether the Japanese government would make amendments to the FEFTA in future.  WT/TPR/M/397/Add.1  
 
- 105 - 
 
RESPONSE  
The Japanese Diet approved the amendment of the FEFTA last November. The amendment will 
become effective on the day provided by the cabinet order within six months from its promulgation.  
 
Page 50 ，Para 2.43  
Japan is ranked in 39th place out of 190 economies  in the World Bank's 2019 Doing Business 
report; it scores well in the areas of resolving insolvency, getting electricity, dealing with 
construction permits, and registering a property. Its poorest rankings are for: starting a business, 
getting credit, and  protecting minority investors.  
 
Question  24 
How will the Japanese government make improvement of current poor rankings related to business 
environment in the coming years?  
 
RESPONSE  
Japan will regularly explain by video conferences and letters our improvement of related system 
and an erroneous assumption of the facts to the World Bank. In addition, Japan will hold the 
Business environment improvement liaison meeting of the ministry concerned and efforts to 
strengthen our Improvement of related syste m. 
 
Page 65 ，Para 3.42  
Goods subject to import approvals under the Import Trade Control Order are set out in Table  3.4. 
When there are changes to the items on this list, they are published as an "import notice" in the 
Official Gazette. Import approvals are generally valid for six months. Over the review period, 
import licensing requirements were removed for: (i) whales and their preparations in July 2019, 
due to Japan's withdrawal from the International Whaling Commission (IWC); and (ii) weapon s 
and other items from Eritrea because sanctions were lifted by a UN Security Council resolution 
and, hence, the restrictions were removed.  
 
Question  25 
Why did Japan withdraw from IWC after being its member for 31 years? Is it because whaling has 
great ef fect on Japan 's economic development or for other reasons?  
 
RESPONSE  
Japan respected the IWC 's 1986 "moratorium" on whaling for over 30 years, before exercising its 
legal right to withdraw from the IWC at the end of 2018. It did so reluctantly, after concluding that 
the "moratorium," which was adopted as a temporary measure, had become permanent du e 
mainly to the politically -motivated objection not based on scientific facts by some member States, 
rather than legitimate environmental concerns. Please see the statement by the Chief Cabinet 
Secretary, dated December 26, 2018, for Japan 's official posit ion: 
https://japan.kantei.go.jp/98_abe/decisions/2018/_00008.html . 
 
Question  26 
How will the Government react to the international critics and oppositions about whaling?  
 
RESPONSE  
Japan remains committed to international cooperation for proper management of marine living 
resources, as stated in the statement by the Chief Cabinet Secretary, dated December 26, 2018.  
 
Question  27 
Which countries will Japan export their whale products to?   
 
RESPONSE  
Japan currently does not consider exporting whale products.  
 
Page 77 ，Para 3.75  
The Nippon Export and Investment Insurance (NEXI) and the Japan Bank for International 
Cooperation (JBIC) remain the official export credit agencie s. As noted in previous Reviews, in 
providing financial services, Japan follows the terms and conditions of the OECD Arrangement on 
Officially Supported Export Credits.  
 
 WT/TPR/M/397/Add.1  
 
- 106 - 
 
Question  28 
Please explain the operation mechanism of the Nippon Export and Investment Insurance (NEXI).  
 
RESPONSE  
After 16 years of history in acting as an Individual Administrative Agency, NEXI was transformed 
into a 100% government -owned special stock company in April 2017. NEXI continues to provide 
export credit which follows the terms and conditions of the OECD Arrangement on Officially 
Supported Export Credits as a Japanese official export credit agency.  
 
Page 108 ，Para 3.179  
…The 2018 IP Strategy Vision foresees Japan in 2025 -30 as a "value design society", where 
innovation is driven by latent needs and wants rather than technology or markets. It identified the 
following steps towards achieving this goal: (i) fostering and accumulating human resources and 
organizations that generate values through innovation; (ii) establishing mechanisms that 
encourage the exchange and sharing of intellectual assets and expand values; and (iii) producing, 
disseminating, and developing values that will be shared globally.  
 
Question  29 
As is reported, China and Japan held the Dialogue  on Innovation Cooperation Mechanism to discuss 
cooperation and intellectual property protection in Beijing in 2019. What will Japan do to promote 
the cooperation with respect to IP protection between China and Japan?  
 
RESPONSE  
In the field of IP, the JPO and the CNIPA in particular have continuously held meetings regarding 
IP protection issues on patents, designs, trademarks, trials and appeals and development of 
human resources since 1994 when the 1st heads meeting between the JPO and the CNIPA was 
held. It is hoped that such close relationship with the CNIPA will be maintained.  
 
Page 142 ，Para 4.41  
The MAFF  continues to provide direct payments to farmers who produce crops other than table 
rice in the paddy field, to optimize the use of paddy fields; according to the authorities, this scheme 
aims to maintain the favourable environment of paddy fields, and thu s prevent floods or soil 
erosion, to cultivate water resources, and to preserve the natural environment through effective 
use of paddy field. The budgetary cost of payments was JPY 320.0 billion in 2017 and JPY 305.9 
billion in 2018.  
 
Question  30 
Please cl arify whether direct payment provided by the MAFF to farmers will have an impact on fair 
competition in the international grain market.  
 
RESPONSE  
The direct payment in question is intended to maintain the favorable  environment of paddy fields; 
and the amount of crops, which is produced through the scheme, is far smaller compared to what 
Japan imports. As such, Japan considers the impact is negligible (or minimal at most).  
 
Page 172 ，Para 4.163  
Regarding measures to i mplement the Basel Committee's core principles, in December 2017, the 
final Basel III (also commonly known as "Basel IV") standards were expanded to cover a wider 
range of capital requirements by 2022. A progress report issued by the Basel Committee in 
April 2019 indicated that Japan had adopted 14 of these standards, was in the process of adopting 
3 more, was late in adopting 2 of them, and was planning to adopt 9 more by 2022. In addition, 
the draft rule of large exposure requirement was published in June  2019, and will be adopted from 
April 2020. Japan also transposed, in 2018, the Basel's Committee recommendations on the capital 
treatment of Interest Rate Risk in the Banking Book. For more on these standards and their state 
of implementation, see Table A 4.3. 
 
Question  31 
Please elaborate on how the Japanese government puts the Basel Convention into force so as to 
regulate the capital requirements.  
 
 
 WT/TPR/M/397/Add.1  
 
- 107 - 
 
RESPONSE  
Regarding finalized Basel III, FSA plans to smoothly implement the rule based on the 
internationally agreed implementation date, with adequate communication to stakeholders to 
mitigate negative impacts on banks and the Japanese economy.  
 
Page 173 ，Para 4.169  
In order to develop fintech, the FSA eased, in May 2016, the restrictions on banks'  ownership of 
finance -related IT companies . However, such acquisitions remain subject to FSA approval. In 
September 2017, the FSA established the FinTech Proof of Concept (PoC) Hub. The main aim of 
the Hub is to support innovative projects improving user c onvenience and/or productivity of 
companies. For each selected PoC project, the FSA will set up a special working team, in 
cooperation with relevant authorities and/or industry associations, as necessary. A special working 
team will support a project, by g iving advice on issues related to compliance and supervision, etc., 
that participants of the PoC project would like to clarify The newly formed (July 2018) Strategic 
Development and Management bureau of the FSA is in charge of this programme.  
 
Question  32 
Please clarify whether the Japanese government allows a foreign company to hold majority shares 
of a FinTech company.  
 
RESPONSE  
Each case should be examined on a case -by-case basis under relevant laws and regulations.  
 
Page 173 ，Para 4.171  
Following the crash of the bitcoin value (from USD  20,000 in December 2017 to USD  4,000 in 
December 2018) and two major thefts at virtual exchan ges involving USD  500 million and USD  60 
million, the FSA announced, in December 2018, its intention to strengthen applicable rules and to 
ensure user protection. This act was passed by the Diet in May  2019, and will be implemented by 
June 2020. The new Pa yment services actt replaces the term "virtual currency" by "crypto -asset", 
to underline its speculative character, requires service providers to pre -notify the authority of plans 
to change a line of virtual currency  products, and contains provisions forci ng virtual currency 
exchanges to secure funds for repayments to customers in the case of theft or business failure.  
 
Question  33 
Please indicate which policies will be formulated by the FSA to regulate domestic market for virtual 
currency and protect interests of users in the coming years.   
 
RESPONSE  
FSA has just established a monitoring system and self -regulatory function for crypto -assets (virtual 
currencies), and facilitating smooth implementation of the revised Payment Services Act and othe r 
acts. At the same time, FSA promotes establishing self -regulatory function through implementing 
assessment of certified self -regulatory organization for the newly -regulated derivative transaction 
with crypto -assets as well as strengthening cooperation wi th such self -regulatory organization 
including supervisory collaboration and periodical exchanges of information.  
 
Page 173 ，Para 4.182  
Apart from those minor technical amendments to the regime, and of the deployment of 5G -LTE 
networks and of experimental p rogrammes on the IoT and on AI, the government policy regarding 
telecommunications during the period under review was essentially focused on two issues: 
consumer protection, and the lowering of costs linked to the use of mobile handsets.  
 
Question  34 
This paragraph sends out a message that the Japanese government attaches great importance to 
the cost performance of products and service providers in the telecommunication sector. Please 
indicate whether Chinese companies such as Huawei and ZTE are permit ted to enter into 
telecommunication market in Japan from the perspective mentioned above.  
 
RESPONSE  
Japan does not prevent telecommunications operators in Japan from purchasing equipment of 
specific countries or specific companies, although it is not clear  enough for us what 
"telecommunication market" means in this context.  
 WT/TPR/M/397/Add.1  
 
- 108 - 
 
Page 175 ，Para 4.196  
The de jure  monopoly of the Japan Post Company Ltd. includes letters (when containing 
"correspondence", see below) and postcards (between 2 and 6 g) and the followin g postal items: 
smart letters (i.e. up to A5 size and 1 kg throughout Japan at a fixed rate), letter packs (up to A4 
size and 4 kg throughout Japan at a fixed rate) and express mail services items.  
 
Question  35 
Could the scope of Japan Post 's exclusive services be understood as including 2 (General 
correspondence) + 3 (Correspondence postal items) + 5 (Non -correspondence postal items)?  
 
RESPONSE  
Postal and correspondence delivery services provided by Japan Post are not exclusive services, 
including the items mentioned in the question.  
 
Page 175 ，Para 2.202  
Japan did not make any commitments regarding postal and express services either under the GATS 
or in the positive listing agreement with Singapore. However, it bound special correspondence 
services in most of its positive listing agreements with India, Brunei Darussalam, Thailand, 
Malaysia, Viet Nam, Indonesia and the Philippines, with a standstill commitment in the latter five.  
 
Questio n 36 
Are Japan 's special correspondence services open to the outside world? At present, 538 enterprises 
licensed to operate this business are all Japanese private enterprises. What are the procedures for 
foreign -invested enterprises to obtain licenses?  
 
RESPONSE  
There are no restrictions on foreign participation  under the Act on Correspondence Delivery by 
Private Business Operators, thus, foreign companies are also allowed to participate in the market 
with the necessary permission as specified in the Act. Since there are no restrictions on foreign 
participation, whether or not to participate in the market is based on the business decision of each 
operator. The Act on Correspondence Delivery by Private Business Operators provides that those 
who wish to provide correspondence delivery service must obtain permission from the Minister of 
Internal Affairs and Communications, and that those who wish to obtain permission must submit 
an application form with necessary information filled in to the Minister of Internal Affairs and 
Communications.  
 
Page 4 ，Para 13  
Concerning S PS, the Food Sanitation Act was amended in order to reflect changing dietary patterns 
and the environment surrounding food in Japan, as well as to increase hygiene controls; with 
respect to imports, control processes applied to the competent authorities in  the country of export 
have been strengthened. The Agricultural Chemicals Control Act was also amended, with a view 
to improving pesticide safety and contributes to more efficient agriculture. Japan sets some 
standards on food additives and maximum residue  limits (MRLs) that are different from Codex 
standards and MRLs; these are apparently based on scientific evidence. Over the review period, 
Japan expanded the scope of animal quarantine for raw milk to also include milk products.  
 
Question  37 
Japan has set certain standards on food additives and maximum residue limits (MRLs) that are 
different from Codex standards and MRLs. For example, the Codex does not set limits for 
procymidone residues in broccoli, while a strict limit of 0.01 ppm has been set by Ja pan for 
procymidone residues in broccoli, which is divorced from the acceptable daily intake and the acute 
safe intake. What is the scientific basis for Japan 's standard on this limit?  
 
RESPONSE  
When there are no Codex maximum residue limits (MRLs) and no requests by domestic and foreign 
industries to set MRLs, Japan applies the uniform limit (0.01 ppm) which was established as the 
amount unlikely to cause damages to human health, based on the acceptable exposure level 
evaluated by JECFA (Joint FAO/WHO Expe rt Committee on Food Additives) and the United State 
Food and Drug Administration. As for procymidone, the Ministry of Health, Labour and Welfare of 
Japan (MHLW) has decided to delete the provisional MRLs in broccoli etc (i.e. apply the uniform 
limit (0.01  ppm) to them), because there were no Codex MRLs and no requests by domestic and WT/TPR/M/397/Add.1  
 
- 109 - 
 
foreign industries to set MRLs at the time of setting MRLs. The report on MRL setting for 
procymidone with scientific data is available at (Japanese only):  
https://www.mhlw.go.jp/file/06 -Seisakujouhou -11130500 -Shokuhinanzenbu/0000180548.pdf . 
 
Page 11 ，Para 4  
…Over the review period, the main law governing FDI, th e Foreign Exchange and Foreign Trade 
Act, was amended for reasons of security protection, by: expanding the scope of prior checking of 
unlisted stock transfers between foreign investors; and introducing a provision that unregistered 
foreign investors may b e subject to executive orders, including orders to sell their holding stocks. 
Prior notification and approval requirements are in place for investments where there could be 
significant adverse effects on the smooth management of the national economy or on the grounds 
of public order, public safety or national security. FDI restrictions remain in place in the 
telecommunications, broadcasting and radio sectors.  
 
Question  38 
We believe that amendment to the Foreign Exchange and Foreign Trade Act has actually s et more 
restrictions on foreign investors. It is a manifestation of investment protectionism that may have 
a negative impact on economic globalization. Could Japan explain the motivation and 
considerations for doing so?  
 
RESPONSE  
Under the current globalized business environment, spread of critical technologies presents serious 
challenges to national security. Aiming to exercise the strict control of critical technologies, Japan 
amended the act to:  
1. add specified acquisition （a transfer of shares issued by non -listed companies between foreign 
investors ） into the coverage of controlled targets under the system in which foreign investors are 
required to submit a prior notification and receive an examination.  
2. establish a system in which government orders to take corrective measures (e.g., orders to sell 
stock) are imposed on a foreign investor who has made an illegal inward direct investment (e.g., 
without submitting a notification).  
In addition, please refer to our response to your question No.15 f or the factors to be considered 
in the examination process that Ministry of Finance and the competent ministries released in 2017.  
 
Page 13 ，Para 17  
…Key developments over the review period were: the abolition of direct payments for rice and rice 
production  volume targets (although direct payments to rice farmers remain in place for optimizing 
the use of paddy fields); the introduction of a new revenue insurance programme applicable to 
almost all farm products; a review of the Agricultural Mutual Aid system;  the abolition of 
administered prices for beef and pig meat; increased support for domestic beef and pork 
producers; and the introduction of a modified support system for milk.  
 
Question 39  
How have relevant policy reforms  on "the abolition of direct payments for rice and rice production 
volume targets (although direct payments to rice farmers remain in place for optimizing the use 
of paddy fields)" been implemented? What alternative policies have been adopted? And w hat is 
included in the direct payments to rice farmers?  
 
RESPONSE  
The MAFF  provides detailed market information to encourage farmers to take voluntary action in 
association with the abolition of direct payments to rice and the allocation of rice production volume 
targets in 2018. There are no alternative policies to the Direct P ayment for Rice. As described in 
paragraph 4.41, the MAFF provides direct payment to farmers who produce crops other than table 
rice, such as wheat and soybeans, in order to make effective use of paddy fields.  
 
Question 40  
"The abolition of administered pr ices for beef and pig meat" and "the introduction of a modified 
support system for milk" are mentioned in the Report. What has Japan done to bring about these 
developments?  
 
RESPONSE  
In terms of the support to beef and pig meat production, the price stabil ization scheme was 
abolished as the direct payment was strengthened. The Act on Temporary Measures concerning WT/TPR/M/397/Add.1  
 
- 110 - 
 
Compensation Price for Producers of Milk for Manufacturing Use was abolished, and the Act on 
Stabilization of Livestock management was revised in order to broaden marketing options and 
encourage the creative development of dairy farmers.  
 
Question 41  
Which agricultural products are covered under the "new revenue insurance programme applicable 
to almost all farm products", and what are the detailed r ules for relevant policies?  
 
RESPONSE  
In principle, any product can be covered under the new insurance programme. The programme 
cannot be combined with the similar schemes to compensate the income loss.  
 
Page 97 ，Para 3.159  
During the review period, state involvement in the economy remained relatively unchanged. State 
trading entities continued to engage in leaf tobacco, opium, rice, wheat, barley and milk products. 
Major commercial SOEs include those operating in energy, fin ancial services, telecommunications 
and some transport -related activities. The State continues to wholly or partially own several 
companies, including large ones (Table 3.18), in the delivery of goods and services that the 
authorities believe would not be adequately provided by the private sector alone.…  
 
Question 42  
Please provide detailed information on the state -owned enterprises defined by the CPTPP, including 
the total number, the amount of assets and the number of employees with respect to state -owned  
enterprise respectively, etc.  
 
RESPONSE  
Please refer to the following link (the official website of Ministry of Foreign Affairs of Japan). On 
this website, Japan has made publicly available a list of its state -owned enterprises pursuant to 
Article 17.10 ( Transparency) of TPP11.  
Link: https://www.mofa.go.jp/mofaj/ecm/ep/page24_000968.html . 
Question 43:  Please provide the 2018 version of the data listed in Table 3.18 (Financial Data 
Sheets of Major State -owned Enterprises in Japan, 2017).  
 
RESPONSE  
The Government of Japan does not have financial statements of all major State -owned Enterprises 
in Japan included in Table 3.18. Therefore, we cannot provide the complete 2018 version of the 
data listed in Table 3.18.  
 
Page 70 ，Para 3.51  
As at end -October 2019, seven anti -dumping measures were in force, relating to four products 
and applying to two tradi ng partners. Definitive duties were imposed for the first time during the 
review period on: polyethylene terephthalate from China; and carbon steel butt -welding fittings 
from China and the Republic of Korea (Table 3.7).  
 
Question 44  
As for the anti -dumping measures against electrolytic manganese dioxide, sunset review process 
has been initiated since 18 April, 2018, and the investigation process has continued for more than 
12 months (Article 11.4 of the WTO Anti -dumping Agreement stat es that the sunset review process 
shall normally be concluded within 12 months of the date of initiation of the review), resulting in 
the continuous application of these measures beyond the original deadline. Could Japan explain if 
there is any ruling on t he review, when to publish the results, and whether these measures will 
continue?  
 
RESPONSE  
Please refer to G/ADP/N/328/JPN. The government of Japan would also like to point out that we 
have already notified the Embassy of the People's Republic of China in  Japan of the result of the 
expiry review of anti -dumping duties on Electrolytic Manganese Dioxide originating in the People 's 
Republic of China by the notification letter dated March 1, 2019.  
 
 
 
 WT/TPR/M/397/Add.1  
 
- 111 - 
 
Page 159 ，Para 4.140  
Following the 2016 liberalization of th e retail market, and up to May 2019, the share of new power 
producers and suppliers of electricity in total retail sales rose from 5.0% to 14.2%. Entry into the 
retail market requires government approval…  
 
Question 45  
Please introduce the major steps and contents of Japan's reform on retail market liberalization in 
electric power and other sectors.  
 
RESPONSE  
Since the Great East Japan Earthquake followed by the nuclear accident, many issues of the 
existing electricity system have been revealed. The Cab inet decided "The policy on Electricity 
System Reform" on April 2, 2013 which specified objectives and schedules of the reform. The 
drastic institutional reform is being implemented according to three stages scheduled by the 
cabinet decision.  
The first bil l to revise the Electricity Business Act for expanding the cross -regional coordination for 
transmission operators and for determining the process of the electricity system reform by 2020 
was enacted as the first stage on November 13, 2013.  
Moreover, the bi ll to revise the Electricity Business Act for introducing full retail competition was 
enacted as the second stage on June 11, 2014.  
The third bill to revise the Electricity Business Act for legal unbundling of transmission and 
distribution sectors was enfo rced as the third stage on June 17, 2015.  
Through the series of revision of the act, "full liberalization of electricity retail entry" was enforced 
in April 2016 so that competition was activated with the implementation and there were more than 
600 entries . Moreover, the legal unbundling of transmission and distribution sector from retail and 
power generation sectors will be implemented in April 2020.  
Regarding as city gas businesses, please take a look at the attached document that shows gas 
market struct ure details and full liberalization of retail market.  
 
Page 163 ，Para 4.153  
During the review period, domestic support continued under several programmes (Section  3.3.1). 
The sector's non -industry -specific schemes included measures under the Subsidy Program for 
Global Innovation Centers, tax incentives for strengthening local busi ness facilities, incentives 
regarding special zones, incentives based on the 2013 Industrial Competitiveness Enhancement 
Act, incentives under the 2018 Act on Special Measures for Productivity Improvement, the tax 
incentive system based on the Act on Stren gthening a Framework for Regional Growth and 
Development by Promoting Regional Economy Advancement Projects, tax incentives for R&D, the 
tax incentive for wage and productivity improvement, incentives related to disaster recovery, and 
incentives of local g overnments for foreign -affiliated companies (e.g. subsidization of rent 
expenses, and incorporation/registration and other fees)…  
 
Question 46  
Please briefly introduce the substantive and procedural legal provisions for above incentives such 
as subsidies.  
 
RESPONSE  
Regarding the incentives above, requirements and procedures are enacted in laws and subsidy 
guidelines. For example, an introduction to the Subsidy Program for Global Innovation Centers, 
including an outline of the program and details of the sele cted projects, can be found here, 
https://www.jetro.go.jp/en/invest/incentive_programs/info.html. The program was conducted 
from January 2016 to March 2017 under the 2015 supplementary budget. Information about the 
subsidies offered by local governments fo r foreign -affiliated companies can be found under Part 
II, Section B here, https://www.jetro.go.jp/en/invest/incentive_programs/.  
In addition to these programs, there are other programs such as Subsidy Program for Global 
Innovation Centers and Act on Stre ngthening a Framework for Regional Growth and Development 
by Promoting Regional Economy Advancement Projects.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 6, Para 2.14  
The data concerning the Economic Partnership Agreements is summarized in Table 2.1 below (as 
of December 2019).  
 WT/TPR/M/397/Add.1  
 
- 112 - 
 
Questions 47  
Please explain why the Japan -US trade agreement on the elimination or reduction of tariffs on 
certain agricultural and industrial products is not included in this table.  
 
RESPONSE  
The Japan -US Trade Agreement, which eliminates or reduces tariffs on agricultural and industrial 
products, is different from what Japan generally calls an economic partnership agreement (EPA) 
which covers broader areas such as trade in services, investment and  intellectual property and, 
therefore, this Agreement is not included in Table 2.1 on EPAs.  
 
Questions 48  
Has this agreement entered into force by now?  
 
RESPONSE  
The Japan -US Trade Agreement entered into force on 1 January 2020.  
 
Page 5 ，Para 2.10  
…Japan c ontinues to make best efforts towards the reform of the dispute settlement system, 
including the Appellate Body.  
 
Question 49  
Please introduce Japan ' specific measures and working plans to facilitate the reform of the 
Appellate Body.  
 
RESPONSE  
Our priority has always been to achieve a long -lasting reform of the Appellate Body, which is not 
limited to an interim solution. Japan believes that it would se rve a better functioning dispute 
settlement system and an ultimate goal of securing a positive solution to a dispute. From this 
perspective, Japan has actively contributed to the Informal Process of solution -focused discussion 
on matters related to the fun ctioning of the Appellate Body, under the auspices of the General 
Council. Japan submitted a proposal regarding the reform of the dispute settlement system jointly 
with Australia on 17 April 2019 (WT/GC/W/768). Subsequently, Chile also participated in the 
proposal (WT/GC/W/768/Rev.1). Japan stands ready to further proactively contribute to the 
discussion towards a better functioning dispute settlement system.  
 
PART III: OTHER QUESTIONS  
 
Question 50  
Please brief us the practice of information exchange between the Japanese competition authorities 
and those of other countries in order to enhance cooperation in competition law enforcement. Are 
there any non -competition agencies or individuals that ask competition authorities in other 
countries abo ut competition enforcement cases through diplomatic channels? Under what 
circumstances may Japanese competition authorities submit relevant information to the parliament 
or the court?  
 
RESPONSE  
To enhance cooperation in competition law enforcement, for exa mple, the Japan Fair Trade 
Commission (JFTC) and those of other countries utilize notification by which one authority notifies 
the other of its enforcement activities which may affect the important interest of the other and 
cooperation by which one authori ty renders various assistance, such as provision of information 
to the other, in accordance with the agreements, arrangements, and the memorandums of 
understanding (MoUs). Note that with regard to enforcement activities, the JFTC usually 
communicates with competition authorities in other countries.  
The JFTC submits relevant information to the parliament or the court to the extent consistent with 
laws and regulations of Japan and the agreements or the arrangements with other countries or 
other competition au thorities when they require pursuant to law. The JFTC, however, must not 
submit relevant information to the court in criminal proceedings.  
 
Question 51  
Japanese Industrial Standards (JIS) are recommended standards. However, some standards are 
cited as enfo rceable by Japanese decrees, which will have a significant impact on market access. 
At present, Japan only discloses the JIS cited by Japanese decrees online in Japan, while overseas WT/TPR/M/397/Add.1  
 
- 113 - 
 
enterprises could not obtain relevant information on a fair basis. This m ay lead to unfair trade. 
How does Japan ensure the implementation of the WTO 's principle of national treatment in this 
regard?  
 
RESPONSE  
The Japanese Industrial Standard development system follows the relevant TBT agreement 
clauses. Japan believe that curr ent system does not lead to unfair trade as China indicated in the 
question. Regarding JIS, drafting committees of JIS own the copyright that must be protected 
appropriately by the organization concerned. Accordingly, the JIS must be purchased in electroni c 
or paper/book form at the website below or at book shops. Regarding the sales of JIS, there is no 
preferential or discriminatory treatment between countries.  
Web: https://webdesk.jsa.or.jp/books/W1 1M0010 . 
 
Question 52  
Japan 's draft standards are currently also publicly available online for comments. However, the 
full texts of the drafts for comments are only available to IPs in Japan, and overseas interested 
parties have no access to relevant draft standard. Thus, foreign enterprises are unable to timely 
and effectively understand the changes to Japanese standards, resulting in unfair trade. In order 
to improve the transparency for setting  standard, whether Japan will consider lifting restrictions 
on the draft standard for access abroad in terms of soliciting public comments.  
 
RESPONSE  
Standards development system of Japan complies with the requirements stipulated in the TBT 
agreement, such as making SPS/TBT notifications, announcing th e public commenting period in 
publicly available publications and/or websites, and providing copies of draft standards upon 
request to any interested party within the territories of a WTO member. Japan believes that current 
system of Japan does not lead to  unfair trade as China indicated in the question.  
 
Question 53  
Please introduce the management system and the division of powers in Japan 's civil aviation 
sector, and the legal system in the field of civil aviation.  
 
RESPONSE  
While most of about 100 airpo rts in Japan are under the administration of the government or local 
authorities, joint -stock companies run Narita International Airport, Chubu International Airport and 
New Kansai International Airport including Itami Airport. Shares of Narita Internation al Corporation 
and New Kansai International Airport Co., Ltd., 49% of shares of Chubu International Airport are 
owned by the government, Aichi Prefecture and Nagoya City.  
The Government oversees such stock companies as stipulated by law, and may give the companies 
orders required for the supervision, when deemed necessary. The Government may also make 
them report on their business or make the government officers enter the work place such as sales 
office and business office, and inspect objects includin g accounting books and documents.  
 
Question 54  
How does Japan define public air transport and general aviation? Are there any different 
administrative measures as for public air transport and general aviation?  
 
RESPONSE  
Air transport services are defined a s "any business using aircraft to transport passengers or cargo 
for remuneration upon demand." Specific examples include scheduled air transport services, 
charter flights for passengers or cargo and sightseeing flights. In addition, regarding air transport  
services, there are the following restrictions on investments by foreign capital.  
First, the prior notification requirements under the Foreign Exchange and Foreign Trade Act shall 
apply to foreign investors who intend to acquire 1% or more shares of liste d companies, or shares 
of unlisted companies, in air transport services in Japan.  
Second, permission of the Minister of Land, Infrastructure, Transport and Tourism for conducting 
air transport services as a Japanese air carrier is not granted to the follow ing natural persons or 
entities applying for the permission:  
(a). a natural person who does not have Japanese nationality;  
(b). a foreign country or a foreign public entity, or its equivalent;  
(c). a legal person or other entity constituted under the laws of any foreign country; and  WT/TPR/M/397/Add.1  
 
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(d). a legal person represented by the natural persons or entities referred to in subparagraph 
(a), (b) or (c); a legal person of which more than one -third of the members of the board of directors 
are composed of the natural pe rsons or entities referred to in subparagraph (a), (b) or (c); or a 
legal person of which more than one -third of the voting rights are held by the natural persons or 
entities referred to in subparagraph (a), (b) or (c).  
In the event that an air carrier fal ls into a natural person or an entity referred to in subparagraphs 
(a) through (d), the permission will lose its effect. The conditions for the permission also apply to 
companies, such as holding companies, which have substantial control over the air carri ers. 
Third, a Japanese air carrier or a company having substantial control over such air carrier, such 
as a holding company, may reject the request from a natural person or an entity set forth in 
subparagraphs 2(a) through (c), who owns equity investments in such air carrier or company, to 
enter its name and address in the register of shareholders, in the event that such air carrier or 
company falls into a legal person referred to in subparagraph 2(d) by accepting such request.  
Fourth, foreign air carriers are required to obtain permission of the Minister of Land, Infrastructure, 
Transport and Tourism to conduct international air transport services.  
Fifth, permission of the Minister of Land, Infrastructure, Transport and Tourism is required for the 
use of foreign aircraft for air transportation of passengers or cargoes to and from Japan for 
remuneration.  
Last, a foreign aircraft may not be used for a flight between points within Japan.  
 
Aerial work is defined as "any business using aircraft other tha n for the transport of passengers or 
cargo for remuneration upon demand". Specific examples include photo shoot, pesticide spray, 
advertisement and flight training. In addition, there are the following restrictions on foreign 
investment.  
First, the prior n otification requirement under the Foreign Exchange and Foreign Trade Law applies 
to foreign investors who intend to make investments, such as acquiring stocks at least 1% 
ownership of shares in listed companies, or shares in unlisted companies, in aerial w ork business 
in Japan.  
Second, permission of the Minister of Land, Infrastructure, Transport and Tourism for conducting 
aerial work business is not granted to the following natural persons or entities applying for the 
permission:  
(a). a natural person who does not have Japanese nationality;  
(b). a foreign country, or a foreign public entity or its equivalent;  
(c). a legal person or other entity constituted under the laws of any foreign country; and  
(d). a legal person represented by the natural persons or entities referred to in subparagraph 
(a), (b) or (c); a legal person of which more than one -third of the member s of the board of directors 
are composed of the natural persons or entities referred to in subparagraph (a), (b) or (c); or a 
legal person of which more than one -third of the voting rights are held by the natural persons or 
entities referred to in subparag raph (a), (b) or (c).  
In the event a person conducting aerial work business falls into a natural person or an entity 
referred to in subparagraphs (a) through (d), the permission will lose its effect. The conditions for 
the permission also apply to companie s, such as holding companies, which have substantial control 
over the person conducting aerial work business.  
Last, a foreign aircraft may not be used for a flight between points within Japan.  
 
Question 55  
What kind of supporting policies does the Japanese  government adopted for civil airports, regional 
aviation, international routes, general aviation, cargo aviation, and remote areas? Please briefly 
introduce the source, standards and methods of funds.  
 
RESPONSE  
There are no supporting policies by the Japa nese government for cargo aviation.  
As for civil airports, regional aviation, international routes, general aviation and remote areas, the 
Japanese government adopts the following supporting policies with the financial resources from 
the national budget.  
First, landing fee relief measures for regional airports to encourage expanding the number of 
inbound tourists as a supporting policy for regional aviation, international routes, general aviation 
and remote areas;  
Second, a supporting policy for civil airpo rts in accordance with "Subsidy for development project 
of acceptance environment at regional airports" and "Subsidy for development of CIQ (Customs, 
Immigration, and Quarantine)"; and  
Third, the following two supporting policies for regional aviation and remote areas:  WT/TPR/M/397/Add.1  
 
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a) Subsidy for operation cost to ensure stable transport on remote islands air routes that play an 
important role in daily life of residents in remote islands; and  
b) Subsidy for a part of purchase cost of aircraft and parts thereof, which is  in service on air routes 
to remote islands.  
 
Question 56  
Please clarify whether there are any policies to regulate subsidies on the domestic air 
transportation in Japan?  
 
RESPONSE  
There are no restrictions on granting subsidies to domestic air carriers in Japan.  
However, regarding air transport services, there are following restrictions on investments by 
foreign capital.  
First, the prior notification requirements under the Foreign Exchange and Foreign Trade Act shall 
apply to foreign investors w ho intend to acquire 1% or more shares of listed companies, or shares 
of unlisted companies, in air transport services in Japan.  
Second, permission of the Minister of Land, Infrastructure, Transport and Tourism for conducting 
air transport services as a Ja panese air carrier is not granted to the following natural persons or 
entities applying for the permission:  
(a). a natural person who does not have Japanese nationality;  
(b). a foreign country or a foreign public entity, or its equivalent;  
(c). a legal per son or other entity constituted under the laws of any foreign country; and  
(d). a legal person represented by the natural persons or entities referred to in subparagraph 
(a), (b) or (c); a legal person of which more than one -third of the members of the bo ard of directors 
are composed of the natural persons or entities referred to in subparagraph (a), (b) or (c); or a 
legal person of which more than one -third of the voting rights are held by the natural persons or 
entities referred to in subparagraph (a), ( b) or (c).  
In the event that an air carrier falls into a natural person or an entity referred to in subparagraphs 
(a) through (d), the permission will lose its effect. The conditions for the permission also apply to 
companies, such as holding companies, wh ich have substantial control over the air carriers.  
Third, foreign air carriers are required to obtain permission of the Minister of Land, Infrastructure, 
Transport and Tourism to conduct international air transport services.  
Fourth, permission of the Mini ster of Land, Infrastructure, Transport and Tourism is required for 
the use of foreign aircraft for air transportation of passengers or cargoes to and from Japan for 
remuneration.  
Last, a foreign aircraft may not be used for a flight between points within Japan.  
Incidentally, there is no plan on further liberalization.  
 
Question  57 
Please elaborate on Japan 's administrative policies on flight schedule, and the methods and 
procedures for obtaining flight schedules.  
 
RESPONSE  
Any foreign airlines shall, when it intends to operate a charter flight, obtain permission from the 
Minister of Land, Infrastructure, Transport and Tourism. Any foreign airlines shall, when it intends 
to operate a scheduled flight, obtain a license for international air transport ser vices and approval 
for operation plan from the Minister of Land, Infrastructure, Transport and Tourism. In the approval 
procedures, Japan Civil Aviation Bureau (JCAB) confirms that the traffic rights and capacity are 
within the scope of the air service agr eement.  
 
Question 58  
Please briefly introduce Japan 's management system for airspace and the operation mode of air 
traffic management.  
 
RESPONSE  
The Air Traffic Management (ATM) Center  works to promote air traffic safety and to improve flight 
efficiency by integrating the functions of Airspace Management, which is to use airspace efficiently; 
Air Traffic Flow Management, which is to form smooth traffic flow by adjustment or other initia tive; 
and Air Traffic Control services using new technologies.  
 
 
 WT/TPR/M/397/Add.1  
 
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Question  59 
Does Japan have any restrictions on market access for foreign investment in civil aviation transport 
services such as general aviation, civil airports, air traffic control and av iation fuel? Please 
introduce the legal basis for industry administration and market access administration on foreign 
investments in the above sectors? Are there any market access restrictions in civil aviation sectors 
other than those mentioned above, and  their legal basis?  
 
RESPONSE  
Japan has no restrictions on investment by foreign capital in general aviation, civil airports, air 
traffic control and aviation fuel.  
 
Question 60  
As for the anti -monopoly review in civil aviation sector, please elaborate on the scopes, 
responsibilities of competent authorities and legal basis.  
 
RESPONSE  
The provision of paragraph (1), Article 105 of Civil Aeronautics Act stipulates that any domestic 
air carrier shall fix tariffs and charges for passengers and car go, and notify the Minister of Land, 
Infrastructure, Transport and Tourism to that effect in advance. The Minister of Land, 
Infrastructure, Transport and Tourism shall order the domestic air carrier to change tariffs and 
charges, if they might create unfai r competition against other domestic air carriers. (item (iii), 
paragraph (2) of the same Article).  
Any domestic air carriers who intend to operate international air transport services shall fix tariffs 
and charges for passengers and cargo, and obtain prio r approval from the Minister of Land, 
Infrastructure, Transport and Tourism (paragraph (3) of the same Article), and the Minister of 
Land, Infrastructure, Transport and Tourism shall not grant approval, if the tariffs and charges 
might create unfair compet ition against domestic air carriers. Also, the Minister of Land, 
Infrastructure, Transport and Tourism shall order the domestic air carrier to change already 
approved tariffs and charges, if they might create unfair competition against other domestic air 
carriers (item (iii) of Article 112).   
When an airline company's activity violates the Anti -Monopoly Act (AMA), the Japan Fair Trade 
Commission may take a necessary measure based on the AMA unless they are exempt from the 
AMA under the Article 110 of the C ivil Aeronautics Act.  
 
Question 61  
Are there any specific subsidy policies called "amber box", non -specific "amber box" or "blue box" 
for agricultural products in Japan? If so, please specify the agricultural products covered and 
detailed measures in this regard.  
 
RESPONSE  
The requested information is available in the DS1 notification (G/AG/N/JPN/236). More specifically, 
the following supporting tables are relevant:  
- blue box: supporting table DS3  
- amber box: supporting table DS4  
- non-product specific AM S: supporting table DS9  
DS1 notification for the supports in FY2017 is in preparation.  
 
Question 62  
We note that, since 2018, Japan has taken a series of measures in the revision of regulations 
regarding government procurement and the allocation of the spectrum resources of 5G 
communication networks, which has severely affected Chinese enterprises ' busin esses in Japan. 
These measures have in fact excluded the products of Chinese enterprises such as Huawei and 
ZTE, and are at odds with Japan 's long -held ideas of openness, liberalization and facilitation. Please 
explain when Japan will revise the relevant r egulations and provide a fair, transparent and 
predictable business environment for Chinese enterprises to carry out mutually beneficial 
cooperation with Japan?  
 
RESPONSE  
Japan does not exclude any specific company from the government procurement and does not 
prohibit Japanese companies from procuring products of any specific company.  
 
 WT/TPR/M/397/Add.1  
 
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Question 63  
In recent years, Japan has continuously included Chinese enterprises, universities and research 
institutions in the End User List, which mak es it impossible for enterprises of both sides to carry 
out normal trade and investment cooperation. Please explain whether Japan will remove relevant 
Chinese entities from the List as soon as possible so as to create a favorable policy environment 
for the  trade and investment cooperation between the enterprises of our two countries?  
 
RESPONSE  
For the purpose of enhancing the effectiveness of the catch -all control, the End User List provides 
exporters with referential information on foreign entities for whi ch concern cannot be eliminated 
regarding involvement in activities such as the development of WMDs or other items. It is not an 
embargo list, and Japanese exporters can export goods to EUL -listed entities as long as it is 
apparent that the goods will not be used for WMD purposes.  
The listing of all entities is decided by the Government of Japan, taking into account various 
relevant information.  
 
Question 64  
Could Japan share its view on the impact of unilateral and protectionist measures on the 
international economic and trade environment and the multilateral trading system, and how to 
address long -standing issues in the WTO such as the abusive use of trade r emedies?  
 
RESPONSE  
Japan believes that a free and open economy is the cornerstone of peace and prosperity. 
Remuneration for trade restrictions does not benefit any nation, so it is important to maintain and 
strengthen a free, fair, non -discriminatory, rul e-based trading system. Japan also believes that 
any trade measures should be consistent with WTO rules.  
 
Question  65 
Japan has committed to advance the reform on the transparency issues, together with other 
members, calling for submitting complete subsidy  notification in a timely manner. However, the 
latest subsidy notification submitted by Japan is far from completed due to lack of subsidies on 
new energy vehicle, photovoltaic and coal sector, which are released by Japanese medias. Could 
Japan indicate wh en to notify above subsidies to the WTO?  
 
RESPONSE  
Though it is not clear which measures China is referring to, Japan properly notified its subsidies 
according to notification obligation of the WTO agreement. We assume that the subsidies on new 
energy vehi cle, photovoltaic and coal sector that China arguably pointed out are not subject to 
notification obligation under WTO agreement because those subsidies are, for example, either 
subsidies on services or having no specificity.  
 
  WT/TPR/M/397/Add.1  
 
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ARGENTINA  
Informe de la Secretaría (WT/TPR/S/397)  
 
Question  1 
Bajo el párrafo 4.276 del Informe se señala que en junio de 2017 se modificaron las Directrices 
interpretativas sobre comercio electrónico y comercio de bienes de información, elaboradas con el 
objetivo de mejorar la p revisibilidad para las partes interesadas y facilitar el comercio aclarando 
cómo se aplican el Código Civil y otras leyes pertinentes sobre diversos aspectos jurídicos 
relacionados con el comercio electrónico y el comercio de bienes de información. Atento a ello, 
mucho se agradecerá si Japón pudiera compartir sus experiencias en la implementación de tales 
Directrices, así como las principales lecciones aprendidas en el tema.  
 
RESPONSE  
Since the formulation of the original guidelines in March 2002, Ministry of Economy, Trade, and 
Industry (METI) has revised the guidelines as necessary, in accordance with situations in trade 
practices, trends in related technologies, and the development of international and internal rules 
surrounding electronic commer ce and information property trading. The revision is realized with the 
cooperation of academic experts, related ministries and agencies, consumers, and the business 
community, and is called for public comments before the release.  
 
Question  2 
Con relación a l "Paquete de Políticas para Fortalecer la Competitividad de la Agricultura Japonesa" 
mencionado en el punto 4.9 del Informe, se apreciará contar con mayores detalles sobre los 
resultados alcanzados tras la implementación de este Plan en términos de compet itividad de los 
productos agrícolas.  
 
RESPONSE  
The purpose of the plan is to provide a better environment for producers and to address the 
structural problems that are out of producers ' capacity.  
The resultant effects include simplification (e.g. 550 prod ucts to 25 products) and reduced prices of 
certain fertilizers (10 -30% reduction) provided by National Federation of Agricultural Cooperative 
Associations.  
 
Question  3 
Bajo el punto 3.3 del Informe se destaca que Japón estableció un Comité nacional de facilitación del 
comercio (la Conferencia de Enlace sobre Facilitación del Comercio), como un foro para el 
intercambio de información entre los ministerios y organismos pertinentes. Mucho se agradecerá si 
Japón pudiera compartir sus experiencias respecto d el funcionamiento de este Comité así como 
conocer, en particular, si se han enfrentado dificultades en materia de coordinación entre los 
diferentes organismos involucrados y cómo se han superado.  
 
RESPONSE  
In accepting the Trade Facilitation Agreement, Jap an has established "Liaison Conference on Trade 
Facilitation (LCTF)" as its National Committee on Trade Facilitation referred to in paragraph 2 of 
Article 23, which consists of the following members:  
- Director -General, Economic Affairs Bureau, Ministry of  Foreign Affairs  
- Director -General, Customs and Tariff Bureau, Ministry of Finance  
- Senior Assistant Minister for International Affairs, Ministry of Health Labour and Welfare  
- Director -General for International Affairs, Minister's Secretariat, Ministry of Agriculture, Forestry 
and Fisheries, and  
- Director -General, Trade Policy Bureau, Ministry of Economy, Trade and Industry.  
For the purposes of assisting the LCTF, the Government of Japan has also established a director -
level secretariat under the LCTF w hich is responsible for coordinating the works of the parties 
concerned as necessary.  
The function of the LCTF  is to facilitate both domestic coordination and implementation of the 
provisions of the TFA. The LCTF was established in April 2015 by arrangements among the ministries 
concerned and not by a law or regulation. The Government of Japan maintains close cont acts and 
coordination among the said ministries for the implementation of the Agreement.  
 
  WT/TPR/M/397/Add.1  
 
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NORWAY  
Question  1 to paragraph 2.3.2.1.1 in the Report from the Secretariat and table 2.1 in 
Japan 's Report.  
According to para 2.3.2.1.1. in the secretariat 's repor t and table 2.1 in Japan 's report the CPTPP 
entered into force for Japan on 30 December 2018. In light of the ongoing fisheries subsidies 
negotiations in the WTO, it would be useful if Japan could elaborate on which steps it will take to 
implement CPTPP 's point 5 (a) in Article 20.16 on Marine Capture Fisheries, which reads as follows:  
(a) Subsidies for fishing that negatively affect fish stocks that are in an overfished condition;  
(b) For the purposes of this paragraph, "fishing" means searching for, attr acting, locating, catching, 
taking or harvesting fish or any activity which can reasonably be expected to result in the attracting, 
locating, catching, taking or harvesting of fish.  
(c) The negative effect of such subsidies shall be determined based on th e best scientific evidence 
available.  
(d) For the purposes of this Article, a fish stock is overfished if the stock is at such a low level that 
mortality from fishing needs to be restricted to allow the stock to rebuild to a level that produces 
maximum su stainable yield or alternative reference points based on the best scientific evidence 
available. Fish stocks that are recognized as overfished by the national jurisdiction where the fishing 
is taking place or by a relevant Regional Fisheries Management Org anization shall also be considered 
overfished for the purposes of this paragraph.  
 
RESPONSE  
Japan 's fishing activities are properly managed by the government in accordance with relevant 
fisheries laws and regulations and are based on the scientific stock assessment. Japan 's fisheries 
subsidies programs are implemented in a manner not to negatively affect overfished fish stocks.  
 
Question  2 to paragraph 4.4.4.1. Maritime transport in the Report from the Secretariat.  
(1) We appreciate the information on the substantial size of the Japanese fleet in para 4.212, and 
furthermore on the open applied market access regime as well as on the commitments on maritime 
transport in WTO and free trade agreements in para 4.227 and 4 .228. On that basis, we assume 
that maritime transport is a priority in trade agreements. We would appreciate to receive information 
on market access commitments in bilateral maritime transport agreements.  
(2) With reference to para 4.222 on tonnage tax i t would be of interest to receive information on 
the number of vessels, including the number of vessels under foreign flag, included in the Japanese 
tonnage tax system.  
 
RESPONSE  
(1) In the bilateral maritime transport agreements, there are various provisi ons about travel, 
residence, customs, and so on. The bilateral maritime transport agreements stipulate that foreign 
participation in international maritime services is not restricted but the coasting trade must be 
complied with the law of each country.  
(2) The number of vessels in the Japanese tonnage tax system is 312 which includes 57 deemed -
Japanese -flagged vessels at the end of FY2018.  
 
  WT/TPR/M/397/Add.1  
 
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INDONESIA  
Report by the Secretariat WT/TPR/S/397  
Page 10 Paragraph 3  
3. …The authorities envisaged taking temporary and special offsetting/mitigating fiscal measures in 
the initial budgets for FY 2019 and FY 2020 to address concerns related to the increase in the 
consumption tax rate from 8% to 10% on 1 October 2019.  
 
Question1  
Please provide updates for the m entioned policies.  
 
RESPONSE  
The "Basic Policy on Economic and Fiscal Management and Reform 2018" planned that temporary 
special measures were set to be taken in the initial budgets for FY 2019 and FY 2020 in order to 
respond flexibly to demand fluctuation s accompanying the hike in the consumption tax rate. For the 
FY 2019 Budget, measures such as the "Point Reward Project for Consumers" and "Vouchers with 
premiums for the Low -income or child -rearing households" were implemented, amounting to 
approximately JPY 2 trillion. For the FY 2020 Budget, approximately JPY 1.8 trillion will be allocated 
for "Point Reward Project for Consumers using Cashless Payment" and "Measures for stimulating 
consumption using My Number scheme".  
 
Page 11 Paragraph 7  
7. Since 2017, there have only been minor changes to Japan's customs procedures. These include 
the introduction of: tougher penalties for failure to obtain the required import/export permissions; 
a new principle on cargo reporting; and flexibility to authorized eco nomic operators to lodge their 
import/export declarations at any customs office, not just the one where their imports/exports are 
stored.  
 
Question  2 
Please elaborate the mechanism for penalties imposition for importers or exporters who 
fail to meet the re quirements.  
 
RESPONSE  
In recent years, gold smuggling aimed at evasion of import consumption tax has sharply increased. 
This indicates that the former penalties for unauthorized importation were not adequately effective 
in preventing gold smuggling. Therefore, to enhance the effectiveness of preventing gold smuggling, 
the amount of the fines for unauthorized importation was raised.  
 
Question  3 
Please explain the new principle that is underlying the reporting of a cargo.  
 
RESPONSE  
The "new p rinciple on cargo reporting" mentioned here is that the electronic reporting of advance 
information on air cargo through the computer system called NACCS became mandatory.  
 
Page 12 Paragraph 13  
13. Concerning SPS, the Food Sanitation Act was amended in order to reflect changing dietary 
patterns and the environment surrounding food in Japan, as well as to increase hygiene controls; 
with respect to imports, control processes applied to the competent authorities in the country of 
export have been strengthen ed. The Agricultural Chemicals Control Act was also amended, with a 
view to improving pesticide safety and contribute to more efficient agriculture. Japan sets some 
standards on food additives and maximum residue limits (MRLs) that are different from Codex  
standards and MRLs; these are apparently based on scientific evidence. Over the review period, 
Japan expanded the scope of animal quarantine for raw milk to also include milk products.  
 WT/TPR/M/397/Add.1  
 
- 121 - 
 
Question  4 
Please elaborate  control procedure for imported products i n the amendment to the food 
sanitation act and whether there are similar provisions or regulations for domestic 
products.  
 
RESPONSE  
Please see the paragraph 3.128 of WT/TPR/S/397 regarding the amendment to the food sanitation 
act. These requirements related to imported food are also required of domestic products.  
 
Question  5 
Please elaborate further on  the process of MRLs setting that are different from Codex but 
still within the limits of Codex and what is the scientific evidence used to  apply these 
different MRLs ? 
 
RESPONSE  
Japan takes into account the Codex standards whenever reviewing MRLs for agricultural chemicals, 
in accordance with Article 3.1 of the WTO SPS Agreement. Considering the exposure assessment 
using the data of food inta kes for both short and long periods, Japan, when necessary, sets food 
standards different from Codex standards based on scientific evidence such as the result of properly 
implemented residue trials. Japan 's MRLs setting may be higher or lower than Codex st andards.  
 
Question  6 
Please explain the policy on imported products from countries which are indicated with 
high risk disease status i.e. corona virus, ebola virus, salmonella bacteria, swine fever, 
avian influenza . 
 
RESPONSE  
In terms of animal health based on Act on Domestic Animal Infectious Diseases Control, Japan 
prohibits import of the designated animal products from countries and regions where Japan does not 
recognize as free from the certain domestic animal diseases considered as especiall y virulent.  
More details are available at; http://www.maff.go.jp/aqs/english/news/im_prohibit.html  
 
Question  7 
What is the procedure for implementing risk analysis in your food safety policy?  
 
RESPONSE  
The information of food safety regulatory framework is available following website of the Ministry of 
Health, Labour and Welfare (MHLW) and the Food Safety Commission of Japan (FSCJ).  
https://www.mhlw.go.jp/content/000535178.pdf . 
http://www.fsc.go.jp/english/what_we_do.html . 
http://www.fsc.go.jp/english/index.data/Broucher2018.pdf . 
 
Page 80 -81 Paragraph 3.90  
3.90. Subsidies are available for the purchase of clean energy vehicles sold by car makers, and for 
building hydrogen fueling stations.97 The subsidy to promote clean energy vehicle purchases applies 
to the purchase of electric battery vehicles, plug -in hybrid electric vehicles, fuel -cell energy vehicles, 
and clean diesel vehicles (Table 3.13). The subsi dy amount is calculated based on the grade of the 
clean energy vehicle, and is paid within the limits set per vehicle grade (it is not paid if the calculated 
amount is under JPY 15,000).  
 
Question  8 
Please explain the implementation of subsidies for the pu rchase of clean energy vehicles, 
especially for industries that use these subsidies  
 
RESPONSE  
Japan set out the goal for making the ratio of next -generation vehicles among new sales 50 – 70% 
in 2030. To this end, Japan has been implementing following purchase support programs. These 
subsidies are not for a specific industry, but subsidies to support users who purchase next -generation 
vehicles.  
- BEVs (Battery Electric Vehicles): up to 400,000 JPY (*3,719 USD)  
- PHEVs (Plug -in Hybrid Electric Vehicles): up to 200,000 JPY (*1,859 USD)  
- FCEVs (Fuel Cell Electric Vehicles): up to 2,250,000 JPY (*20,922 USD)  WT/TPR/M/397/Add.1  
 
- 122 - 
 
 *exchange rate: as of 4 March 2020  
 
Question  9  
Is there any contribution to increas e in exports as the result of  these subsidies 
mentioned?  
 
RESPONSE  
These purchase subsidies are to promote the spread of next -generation vehicles in Japan, and do 
not support exports.  
 
Page 82 Paragraph 3.104  
3.104. In 2017, the Law Concerning Standardization of Agricultural and Forestry Products was 
amended, and was renamed the Act on Japanese Agricultural Standards. The overall aim of the 
amendments was to expand a standardization framework for contributing t o the sound development 
of industries related to agriculture, forestry and fishery, and to help protect the interests of general 
consumers.  
 
Question  10 
Could you please explain in detail about your palm oil regulation?  
 
RESPONSE  
Japan does not have natio nal regulations specific to palm oil.  
 
Question  11 
Please explain the prospect of Indonesian Sustainable Palm Oil (ISPO) standard 's 
acceptance in Japan.  
 
RESPONSE  
Because Japan does not have national regulation on palm oil, Japan cannot make have any 
explanations on the prospect of ISPO's acceptance in Japan in relation with the Paragraph 3.104.  
 
Page 104 Paragraph 3.170  
3.170. Japan maintains a government procurement policy to promote environmental protection. The 
relevant legislation includes the Act on Promotion of Procurement of Eco -Friendly Goods and Services 
by the State and Other Entities (Act No.100 of 2000), the Act on Promoting Green Procurement, a nd 
the Act on Promotion of Contracts of the State and Other Entities, Which Show Consideration for 
Reduction of Emissions of Greenhouse Gases, etc. (Act No. 56 of 2007, "Green Contract Act").  
 
Question  12 
In June 2019, the Tokyo Metropolitan Government (TMG) has issued a revision of the 
Green Procurement Guide that every procurement of goods for paper and other products 
containing wood elements must have been verified by the Forest Stewardship Council 
(FSC) . Has this policy revision been consulted with related trading partners?  
 
RESPONSE  
Regarding consideration for procurement standards at the Tokyo Metropolitan Government (TMG ), 
in order to further promote environmentally friendly procurement, TMG conducts market surveys 
including hearings from manufacturers and retailers, but the final decision of TMG is not necessarily 
dependent upon the consultation of individual firms and T MG's partners in international trade. TMG 
wishes to emphasize that TMG 's decisions do not contradict any international treaties or Japanese 
national laws, and are aligned with and contribute to the SDGs, the Aichi Biodiversity Targets, and 
the goals of int ernational society.  
  WT/TPR/M/397/Add.1  
 
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MEXICO  
I. INFORME DE LA SECRETARÍA (WT/TPR/S/397)  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1. Medidas que afectan directamente a las importaciones  
3.1.4. Aranceles  
3.1.4.1 Arancel NMF aplicado  
 
(Pág. 61) 3.21. El Arancel del Japón, que desde 2017 se basa en el SA de 2017, contiene 110  líneas 
arancelarias más que el basado en el SA de 2012. Establece tres clases diferentes de tipos: los 
tipos legales (que comprenden tipos generales y tipos temporales); los tipos con solidados en la 
OMC; y los tipos preferenciales (aplicables en el marco del SGP y de ACR). En el caso de los tipos 
legales, se aplica normalmente el tipo "temporal", que se revisa anualmente, en lugar del tipo 
general, más elevado; a los Miembros de la OMC  se les aplica en régimen NMF el tipo más bajo 
entre el legal y el consolidado en la OMC, salvo cuando se aplican los tipos preferenciales. Cuando 
el tipo temporal, general o preferencial es superior al tipo consolidado en la OMC, se aplica este 
último a l os Miembros de la Organización. Según indican las autoridades, los tipos generales se 
establecen con una perspectiva a largo plazo, atendiendo, entre otras cosas, a la situación de las 
ramas de producción nacionales. Los tipos temporales solo son aplicable s durante un período 
determinado y sirven para modificar los tipos generales con el fin de cumplir objetivos de política 
o por otros motivos.   
 
Question  1 
¿Puede  Japón  explicar más a detalle el funcionamiento de los tipos arancelarios legales 
(generales y temporales)?   
 
RESPONSE  
Please refer to the following URL:  
https://www.customs.go.jp/english/c -answer_e/imtsukan/1105_e.htm . 
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1. Medidas que afectan directamente a las importaciones  
3.1.4. Aranceles  
3.1.4.5 Régimen de aranceles de retorsión  
 
(Pág. 70) 3.36. En v irtud del artículo 6 de la Ley Arancelaria, el Japón aplica un régimen de 
aranceles de retorsión en cuyo marco puede imponer aranceles adicionales en las siguientes 
situaciones: i) cuando es necesario aplicar impuestos para defender los intereses del Japón  y 
cumplir el objetivo de un Acuerdo de la OMC; o ii) cuando el trato dispensado por una o varias 
Partes a los buques, las aeronaves y las cargas procedentes del Japón, o en tránsito por el país, 
es discriminatorio o desfavorable. Las autoridades han señal ado que el Japón no impone 
actualmente aranceles de este tipo.  
 
Question  2 
¿Puede  Japón  explicar en qué situaciones ha aplicado una medida de este tipo? ¿Esta 
medida también aplica a los países con los que  Japón tiene un tratado de libre comercio 
vigente?   
 
RESPONSE  
Please refer to 3.1.4.5 and footnote 33 in the Trade Policy Review Report by the secretariat. As 
the footnote states, the most recent occasion when Japan applied a retaliatory tariff was with 
respect to certain goods originating in the United States in relation to the Byrd Amendment. A 
retaliatory tariff has not been applied since September 2014, while Japan notified the WTO that it 
retains the right to impose this tariff. Temporary Tariff Measures Act maintains a retaliatory tariff 
system based on Economic Partnership Agreement. Under Article 7 -10 of the Act, the Government 
of Japan has the authority to impose a retaliatory tariff, pursuant to the relevant articles of 
Economic Partnership Agreement, against the disputing country. However , no retaliatory tariff has 
been applied based on this Article.  
 WT/TPR/M/397/Add.1  
 
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3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1. Medidas que afectan directamente a las importaciones  
3.1.7. Medidas antidumping, compensatorias y de salvaguardia  
3.1.7.1. Medidas antidumping  
 
(Págs. 76 -77) 3.50. Las investigaciones antidumping pueden iniciarse cuando el Gobierno lo 
considere necesario, cuando una rama de producción nacional formule una solicitud de 
investigación al Ministro de Hacienda o cuando existan prue bas suficientes. El Ministro de Hacienda 
da a conocer la decisión mediante la publicación de un aviso público en la Gaceta Oficial. Las 
investigaciones están a cargo de un equipo integrado por funcionarios de la Oficina de Asuntos 
relacionados con los Recu rsos Comerciales del Ministerio de Hacienda, la Oficina de Investigaciones 
sobre Recursos Comerciales del METI y el ministerio con competencias sobre la rama de producción 
de que se trate. La decisión definitiva de imponer un derecho antidumping se dicta c omo Orden 
del Consejo de Ministros. No podrán aplicarse medidas provisionales antes de transcurridos 60 
días desde la fecha de iniciación de la investigación. En principio, las medidas provisionales se 
aplican durante un máximo de cuatro meses, aunque el p lazo puede prorrogarse a petición de 
exportadores que representen un porcentaje significativo del comercio de que se trate. Los 
exportadores pueden comprometerse a revisar los precios o a poner fin a las exportaciones para 
eliminar el efecto perjudicial qu e el dumping causa a la rama de producción nacional. Los derechos 
antidumping pueden imponerse por un período no superior a cinco años, prorrogable 
posteriormente previo examen. Cada una de las prórrogas no excederá de cinco años.  
 
Question  3 
Japón menciona tres formas para iniciar investigaciones antidumping. La tercera de 
ellas se denomina "cuando existan pruebas suficientes". ¿Podría Japón confirmar si esa 
forma de iniciación es distinta de la iniciación a solicitud de parte y de la iniciaci ón ex–
officio? En caso de que así sea, ¿significa que en las otras dos formas de iniciación 
("cuando el Gobierno lo considere necesario o cuando una rama de producción nacional 
formule una solicitud") no se requiere que existan pruebas suficientes? De igua l forma, 
¿en qué consiste esa iniciación "cuando existan pruebas suficientes"? ¿No hay una 
solicitud de la rama de producción nacional y tampoco se inicia ex –officio por el 
Gobierno? Si es así, ¿entonces cómo funciona esa modalidad?  
 
RESPONSE  
To be precis e, anti -dumping investigations may be initiated by (i) application from domestic 
industries or (ii) official authority (ex officio), when the government of Japan considers it 
necessary. Enough evidence is required in both cases. Please refer to the provisi onal translation 
of paragraphs 4 and 5 of Article 8 of Customs Tariff Law (G/ADP/N/1/JPN/2). So far, no ex officio 
investigation has been initiated.  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1. Medidas que afectan directamente a las importaciones  
3.1.7. Medidas antidumping, compensatorias y de salvaguardia  
3.1.7.2. Medidas compensatorias  
 
(Pág. 78) 3.53. Tal como se indicó en el examen anterior, según lo dispuesto en la Ley Arancelaria, 
las investigaciones pueden iniciarse cuando el G obierno lo considere necesario, cuando la rama de 
producción nacional formule una solicitud o cuando haya pruebas suficientes de la importación de 
productos subvencionados y de la existencia de daño importante causado por tal importación a la 
rama de produ cción nacional, entre otras cosas. El Ministerio de Hacienda da a conocer la decisión 
de iniciar una investigación mediante la publicación de un aviso público en la Gaceta Oficial. La 
decisión definitiva de imponer un derecho compensatorio debe adoptarse e n el plazo aproximado 
de un año. Los derechos compensatorios pueden imponerse por un período máximo de cinco años, 
y las prórrogas no podrán exceder de cinco años.  
 
(Pág. 78) Pie de página 55: Como se señaló en el informe de la Secretaría sobre el anterior  examen 
del Japón, el Ministro de Hacienda, el ministro con competencia sobre la rama de producción de 
que se trate y el Ministro de Economía, Comercio e Industria deben adoptar conjuntamente la 
decisión de iniciar la investigación.  
 
 
 WT/TPR/M/397/Add.1  
 
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Question  4 
Japón manifiesta que para iniciar una investigación debe ser decisión conjunta del 
Ministro de Hacienda, del ministro competente de la rama de producción y del Ministro 
de Economía. Al respecto, ¿podría Japón indicar si la decisión debe tomarse de forma 
unánime o por mayoría? En el segundo escenario, si la decisión es negativa, ¿existe la 
posibilidad de reconsiderarla?, de ser así ¿bajo qué circunstancias?  
 
RESPONSE  
The investigation is initiated upon the unanimous agreement of the Ministers concerned.  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3. Medidas que afectan directamente a la producción y al comercio  
3.3.4 Política de competencia y controles de precios  
3.3.4.1 Política de competencia  
 
(Págs. 104 -105) 3.146. Algunas actividades o prácticas empresariales permanecen fuera del 
ámbito de aplicación de la Ley Antimonopolio. La competencia en esos ámbitos puede regirse por 
otros instrumentos legislativos y estar sujeta a la supervisión de distintas instituciones  (cuadro 
3.16). No se ha i ntroducido ninguna nueva exención desde 2017. Para garantizar la transmisión 
fluida y adecuada del impuesto sobre el consumo cuando se incremente el tipo de impuesto, en 
junio de 2013 se aprobó y promulgó la Ley de Medidas Especiales para Corregir las Prác ticas que 
Impiden la Transmisión del Impuesto sobre el Consumo, entre otras, con el objetivo de Garantizar 
una Transmisión Fluida y Adecuada del Impuesto sobre el Consumo. La Ley, que entró en vigor el 
1o de octubre de 2013, debía permanecer vigente hasta el 31 de marzo de 2017. En noviembre 
de 2016 fue modificada para prorrogar su vigencia hasta el 31 de marzo de 2021, debido a que 
se aplazó el aumento programado del tipo impositivo (secciones 1.1 y 1.2). La Ley prohíbe, entre 
otras, las siguientes conduct as: eludir, mediante una reducción o subvaloración de los precios, el 
traslado de los impuestos sobre el consumo; y solicitar que, a cambio de aceptar el traslado de 
los impuestos sobre el consumo, se compren productos, utilicen servicios o confieran venta jas 
económicas. Y excluye del ámbito de aplicación de la Ley Antimonopolio a los cárteles de 
transmisión y los cárteles de representación entre empresas o asociaciones mercantiles si se 
cumplen los siguientes requisitos: presentación de una notificación pr evia a la JFTC; en lo que 
concierne a los cárteles de transmisión, que al menos dos terceras partes de las empresas 
participantes sean pequeñas y medianas empresas; las "decisiones relativas a un acuerdo sobre 
los precios" quedan excluidas de la exención; y, en lo que concierne a los cárteles de 
representación, solo está exenta la práctica concertada en relación con las decisiones sobre 
métodos de representación que afecten a los impuestos sobre el consumo.  
 
Question  5 
Dado este escenario, ¿existen casos en los que se requiera una cooperación o 
coordinación interinstitucional para el manejo de asuntos de competencia económica? 
De ser así, ¿Cómo y bajo qué términos se lleva a cabo esta cooperación y coordinación 
entre reg uladores/autoridades?  
 
RESPONSE  
A relevant minister is required to consult with the Japan Fair Trade Commission (JFTC), when he 
or she intends to grant approval for an agreement to be exempted from antitrust regulations under 
many of the legislations in T able 3.16. The JFTC expresses opinions mainly on whether the 
agreement would unfairly impair the benefits of users by eliminating competition in the 
consultation with the relevant minister.  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3. Medidas que afectan directamente a la producción y al comercio  
3.3.4 Política de competencia y controles de precios  
3.3.4.1 Política de competencia  
Observancia  
 
(Pág. 107) 3.150. Para asegurar la observancia, el Japón cuenta con un procedimiento penal y 
una vía administrativa. La JFTC tiene la facultad exclusiva para dictar órdenes administrativas. Por 
lo que respecta a las sanciones penales, la JFTC solo tiene competencia para presentar denuncias 
penales ante el Ministerio Fiscal. Puede iniciarse una inv estigación sobre posibles infracciones de 
la Ley Antimonopolio cuando se recibe una denuncia al respecto del público en general, cuando WT/TPR/M/397/Add.1  
 
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detecta la infracción la propia JFTC y cuando se recibe notificación del Organismo de la Pequeña y 
Mediana Empresa o una  denuncia de los solicitantes de indulgencia. Además, los afectados por 
determinadas infracciones pueden interponer acciones civiles por daños y perjuicios.  
 
Question  6 
¿La exclusividad en facultades del JFTC limita de alguna manera el actuar de la 
autoridad? ¿Cómo es el proceso de coordinación con las autoridades penales para el 
seguimiento a denuncias? ¿Qué facultades tiene la JFTC y cómo realiza el seguimiento 
a los pr ocedimientos penales?  
 
RESPONSE  
(1) Under Article 96 of the Antimonopoly Act, a crime under Articles 89 to 91 of the Act can be 
prosecuted only after an accusation is filed by the JFTC.  
(2) The JFTC has set up the place to exchange opinions and information with the prosecutor 's 
office before it files an accusation.  
(3) While the JFTC has the authority to file an accusation to the prosecutor 's office, the prosecutor 's 
office performs criminal proceedings after the JFTC 's accusation.  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3. Medidas que afectan directamente a la producción y al comercio  
3.3.4 Política de competencia y controles de precios  
3.3.4.1 Política de competencia  
Observancia  
 
(Pág. 107) 3.151. El Japón tiene un programa de indulgencia, establecido en 2005, en virtud del 
cual, desde 2009, hasta cinco infractores, o al menos dos pertenecientes a un mismo grupo de 
empresas, pueden presentar conjuntamente una solicitud de reducción del recargo o de 
inmunidad. En marzo de 2019 se  presentó a la Dieta un proyecto de ley de modificación de la Ley 
Antimonopolio para reformar el programa de indulgencia. La modificación permite a la JFTC reducir 
la cuantía de los recargos cuando las empresas presentan información que contribuye al 
estab lecimiento de los hechos del caso. También suprime el actual límite del número de solicitantes 
de indulgencia. El proyecto de ley fue aprobado y promulgado en junio de 2019. La modificación 
entrará en vigor a más tardar el 25 de diciembre de 2020, en la fe cha que se especifique mediante 
Orden del Consejo de Ministros.  
 
Question  7 
¿Se cuentan con criterios para evaluar la calidad y utilidad de la información brindada 
por las empresas? ¿Dichos criterios son definitorios para otorgar la reducción de los 
recarg os?  
 
RESPONSE  
The JFTC shall establish the guidelines for the new leniency programme by the effective date of 
the amendment. The guidelines will show what kind of information the JFTC evaluates (e.g. the 
goods or services subject to cartels or bid-rigging, rule to decide the winner of bid, participants, 
the period of implementation of bid -rigging, implementation status, etc.), that the JFTC determines 
the reduction rates according to the content of the information, and so on.  
 
Question  8 
En el caso de los solicitantes de indulgencia, ¿Cuál es el nuevo límite de solicitantes? ¿El 
nuevo límite aplica solamente para solicitudes conjuntas?  
 
RESPONSE  
The amendment act of the Antimonopoly Act, which was promulgated in June 2019, has not 
introduc ed any new limitations on leniency applicants. (The amendment act abolishes the current 
limitation on the number of leniency applicants.)  
 WT/TPR/M/397/Add.1  
 
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3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3. Medidas que afectan directamente a la producción y al comercio  
3.3.7. Derechos de propiedad intelectual  
3.3.7.1. Características y estrategia de propiedad intelectual  
 
(Pág. 122) 3.180. La Oficina Central de Estrategia de la Propiedad Intelectual publica cada año un 
programa estratégico para hacer realidad la  Visión Estratégica de la Propiedad Intelectual. Define 
la estrategia de propiedad intelectual anual del Gobierno, en la que se incluyen todos los 
organismos y ministerios pertinentes. La Visión Estratégica de la Propiedad Intelectual de 2018 da 
prioridad a: i) el desarrollo de recursos humanos y empresas para satisfacer las necesidades 
futuras; ii) el fomento de actividades ambiciosas y creativas; y iii) el diseño de estructuras en 
nuevos campos. Esas prioridades clave incluyen: i) acelerar la innovación a bierta; ii) apoyar a las 
empresas, las pymes y las empresas de capital de riesgo regionales; iii) crear un ecosistema de 
creación de contenidos sostenible; iv) reforzar la estrategia de propiedad intelectual con respecto 
a los datos, la inteligencia artifi cial y otros nuevos activos relacionados con los datos; y v) 
promover la innovación y la imagen de marca mediante la gestión del diseño.  
 
Question  9 
¿Podría Japón compartirnos a qué se refiere con innovación abierta y contenidos 
sostenible?  
 
RESPONSE  
Regarding the terms in your question, please kindly refer to the explanations below in the 
documents published by Intellectual Property Strategy Headquarters.  
(1) Open innovation; "(Growing Open Innovation and Challenges): In order to realize the complex 
innovation model mentioned above, open innovation which promotes innovation through 
cooperation among companies instead of a single company or with the society including broader 
users has become essential. This trend is expected to continue in the future."  
Intellectual Property Strategy Vision - Towards a "Value Design Society" -, p.4 
https://www.kantei.go.jp/jp/singi/titeki2/kettei/chizai_vision_e.pdf . 
(2) Sustainab le content creation ecosystem; "In order for high -quality content to continue to be 
produced in Japan, it is necessary to build a creative ecosystem that leads to the expansion of the 
overall content market by enabling creators to earn appropriate evaluati ons and revenue through 
the use of the content, and then to engage in new creative activities based on it."  
Intellectual Property Promotion Plan 2019, p.40  
https:/ /www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20190808_e.pdf . 
 
(Pág. 122) 3.181. Existe un vínculo claro entre el Programa Estratégico sobre Propiedad Intelectual 
de 2018 y las modificaciones introducidas en las leyes sobre propiedad intelectual del Japón 
durante el período examinado, entre ellas la ampliación del alcance y la amplitud de la protección 
de dibujos y modelos, las nuevas protecciones de datos, las nuevas restricciones flexibles de los 
derechos de autor que responden al au ge de la digitalización y la creación de redes, y las 
modificaciones de los procedimientos contenciosos y el cálculo de los daños a fin de facilitar la 
observancia de los derechos de propiedad intelectual. En el régimen de propiedad intelectual del 
Japón t ambién inciden los compromisos internacionales, en especial la entrada en vigor del CPTPP 
y el AAE entre la UE y el Japón. Esos acuerdos entrañaron la introducción de algunas 
modificaciones significativas, como la ampliación del plazo de protección del der echo de autor de 
50 a 70 años y la concesión de un alto nivel de protección a más de 200 indicaciones geográficas 
europeas.  
 
Question  10 
¿Podría Japón explicarnos cuáles son las nuevas protecciones de datos introducidas en 
las leyes de propiedad intelectua l? ¿Podría compartirnos cuáles son las nuevas 
restricciones flexibles de los derechos de autor?  
 
RESPONSE  
1. In order to develop an environment where data can be exchanged with confidence, the UCPA 
defines "protected data" as data that satisfies the requirements of "limited provision", 
"electromagnetic management" and "significant accumulation". Also, the UCPA  defines 
unauthorized acquisition, use and disclosure of "protected data" as unfair competition and provides 
civil measures such as claims for injunctions and claims for compensation for loss or damages 
against unauthorized acquisition, use, disclosure, et c. of protected data.  WT/TPR/M/397/Add.1  
 
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The definition of "protected data" is as follows:  
Article 2(7) of the UCPA; The term "protected data" as used in this Act means technical or business 
information that is accumulated in a reasonable amount by electronic or magnetic means (meaning 
an electronic form, magnetic form, or any other form that is impossible to perceive through the 
human senses alone; the same applies in the following paragraph) as information provided to 
specified persons on a regular basis and tha t is managed (excluding information that is kept 
secret).  
2. In order to respond flexibly to the change of society brought by the development of information 
and communication technologies, Japan introduced flexible legislation in regard to limitation of 
copyrights for a certain use of works which does not adversely affect the copyright market.  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3. Medidas que afectan directamente a la producción y al comercio  
3.3.7. Derechos de propiedad intelectual  
3.3.7. 9. Indicaciones geográficas  
 
(Pág. 136) 3.232. La Ley de Protección de determinados Artículos y Productos Alimenticios 
procedentes de la Agricultura, la Silvicultura y la Pesca de 2014 introdujo un sistema sui generis 
de protección de las indicaciones geog ráficas de los productos alimenticios, las bebidas y los 
productos agropecuarios y marinos. Se prohíbe el uso directo o indirecto de una indicación 
geográfica en un producto que no sea originario, y se aplica el nivel de protección prescrito en el 
artículo  23 del Acuerdo sobre los ADPIC a todas las indicaciones geográficas registradas (no solo 
a los vinos y las bebidas espirituosas). La Ley se modificó en 2016 y 2018 para armonizarla con 
los compromisos internacionales contraídos por el Japón.  
 
Question  11 
¿Podría Japón explicar el funcionamiento del sistema sui generis  mencionado en el 
párrafo?  
 
RESPONSE  
The system provides TRIPS Article 23 level protection to products of agriculture, forestry and 
fisheries and foodstuffs. Administrative actions  are taken by the MAFF against GI infringements. 
As of February 2020, 88 GI products are registered, including one GI product of Italy.  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3. Medidas que afectan directamente a la producción y al comercio  
3.3.7. Derechos de propiedad intelectual  
3.3.7.11. Derecho de autor  
 
(Pág. 137) 3.239. En la Ley de Derecho de Autor se enumera una lista exclusiva de circunstancias 
en las que se permite el uso no autorizado (disposiciones en materia de restricc iones de los 
derechos). Para dar respuesta al fenómeno de la digitalización y de la creación de redes, se han 
introducido nuevas limitaciones flexibles. La finalidad de las disposiciones es promover la 
innovación en el ámbito de la tecnología de la informa ción y el desarrollo de tecnologías asociadas 
a la inteligencia artificial permitiendo, entre otras cosas, determinados usos no autorizados que 
no afecten, o que afecten solo levemente, a los intereses del titular del derecho de autor, así como 
fomentar se rvicios u otras funciones que utilicen macrodatos. En concreto, las modificaciones 
introducidas permiten la libre utilización de una obra protegida por el derecho de autor cuando sea 
necesario para i) probar tecnología que permita la utilización de la obra  protegida por el derecho 
de autor; ii) analizar información; o iii) procesar información utilizando una terminal informática 
sin intervención humana. También se permite el uso no autorizado en caso de que sea necesario 
para asegurar la utilización sin tra bas o eficiente de una obra protegida por el derecho de autor 
en un ordenador. El uso limitado de una obra en el marco de un proceso de tratamiento informático 
de información y el suministro de los resultados correspondientes tampoco requieren autorización . 
 
Question  12 
Podría Japón explicar: ¿Cuál sería una afectación leve a los derechos de autor? ¿Puede 
el titular de dicho derecho oponerse a esa limitación?  
 
RESPONSE  
The exploitation of copyright works subject to a limitation under Article 47 -5 (1), should be done 
to the extent considered to be necessary in light of the purpose of the action set forth in the WT/TPR/M/397/Add.1  
 
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relevant item, e.g. using a computer to search for the locati on of "information being searched for", 
furnishing the results of computerized data analysis. Also it should be limited to exploitation that 
is minor in light of percentage it constitutes of the part of the work that has been provided for 
exploitation, the  volume of the part of that work that has been provided for exploitation, the 
accuracy of indications made at the time it was provided for exploitation, and other elements. 
These actions are the exploitation deemed to be the actions which cause minor damag es to the 
right holders ' interest. A right holder can take legal countermeasures, either criminal or civil, if 
one judges the exploitation of the copyrighted work is not the case of limitations of copyright 
including Article 47 -5. 
 
II. INFORME DEL JAPÓN (WT/ TPR/G/397)  
 
4. POLÍTICAS INTERNAS DEL JAPÓN  
4.4. Política de Competencia  
 
(Pág. 19) 4.7. El 19 de junio de 2019, la Dieta Nacional aprobó en su 198a sesión ordinaria el 
proyecto de modificación de la Ley Antimonopolio; la Ley modificada fue promulgada el 26 de junio 
de 2019. El objetivo de la Ley modificada es disuadir eficazmente la "restricción injustificada del 
comercio", revitalizar la economía y promover los intereses de los consumidores por medio de una 
competencia leal y libre, reforzando los incent ivos para que las empresas cooperen en las 
investigaciones de la Comisión de Comercio Leal del Japón (JFTC) e imponiendo recargos de 
cuantía apropiada en función de la naturaleza y alcance de la infracción. La Ley promulgada entrará 
en vigor antes de que h ayan transcurrido un año y seis meses contados desde el 26 de junio de 
2019, en la fecha que se especifique por medio de una Orden del Consejo de Ministros.  
 
Question  13 
¿Qué tipo de incentivos fueron reforzados? ¿Cómo y bajo qué términos se da la 
cooperación entre empresas y la JFTC en investigaciones?  
 
RESPONSE  
The amendment act of the Antimonopoly Act, which was promulgated in June 2019, has introduced 
the system which  allows the JFTC to reduce the amount of surcharges when enterprises submit 
information and documents which contribute to the fact -finding of the case. Under the new system, 
the JFTC will confer and agree with an enterprise about the content of the enterpr ise's cooperation 
and the JFTC's reduction of surcharge.  
 
4. POLÍTICAS INTERNAS DEL JAPÓN  
4.4. Política de Competencia  
 
(Pág. 19) 4.8. Con arreglo al Acuerdo de Asociación Transpacífico (TPP) y al Tratado Integral y 
Progresista de Asociación Transpacífico (CPTPP), se introdujo en la Ley Antimonopolio un sistema 
denominado de "procedimientos de compromiso" que entró en vigor el 30 de diciembre de 2018. 
Los procedimientos de compromiso permitirán a la JFTC y a los presuntos infractores, una vez 
iniciada la investigación, comunicarse a lo largo de todo el procedimiento. Se considera que los 
procedimientos de compromiso facilitarán la pronta resolución de las preocupaciones relacionadas 
con la competencia y contribuirán a una aplicación eficaz y ef iciente de la Ley Antimonopolio, al 
permitir resolver un mayor número de casos mediante la cooperación entre la JFTC y los presuntos 
infractores. Para velar por la transparencia y la previsibilidad en la aplicación de las disposiciones 
legales en materia d e procedimientos de compromiso, la JFTC ha establecido normas y políticas, 
como las Normas relativas a los procedimientos de compromiso de la Comisión de Comercio Leal 
y las Políticas en materia de procedimientos de compromiso.  
 
Question  14 
¿Bajo qué térmi nos se dará esta cooperación? ¿Se aplicará para todo tipo de 
investigaciones?  
 
RESPONSE  
When the JFTC finds it appropriate to apply the Commitment Procedures to the activities leading 
to suspected violations of the provisions of the Antimonopoly Act, the JFTC may commence the 
Commitment Procedures by issuing a written notice to the enterprise.  
Pursuant to the provisions of the Antimonopoly Act, any suspected violation of the Act could be 
subject to the Commitment Procedures, but, unde r the "Policies Concerning Commitment WT/TPR/M/397/Add.1  
 
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Procedures" stipulated by the JFTC, the following cases are not subject to the Commitment 
Procedures due to the need for strict enforcement by finding violation, and for promotion of free 
and fair competition:  
(i) Susp ected Violations of the provisions of Article 3, Article 6, or Article 8, item (i) or item (ii) of 
the Antimonopoly Act, such as bid -rigging, price -fixing cartels, quantity -fixing cartels and others, 
and when such case falls under the provisions of Article  7-2, paragraph (1) of the Antimonopoly 
Act (including the provisions applied mutatis mutandis under Article 8 -3 of the Antimonopoly Act)  
(ii) Cases in which an enterprise was subject to a Legal Measure pursuant to the same provision 
as one about the act r elated to a Suspected Violation (limited to when the Legal Measure has 
become final and binding) within ten years prior to the date on which the measure listed in Article 
47, paragraph (1) of the Antimonopoly Act was taken for the first time regarding the act related 
to the Suspected Violation  
(iii)Cases recognized as constituting vicious and serious Suspected Violations which are considered 
to have widespread influence on people 's livings, as a result of substantially restraining competition 
of a particula r field of trade as described in the "JFTC Policies on Criminal Accusation and 
Compulsory Investigation of Criminal Cases Regarding Antimonopoly Violations ' (JFTC, October 7, 
2005).  
 
  WT/TPR/M/397/Add.1  
 
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UNITED KINGDOM  
WT/TPR/S/397 – WTO Secretariat Report  
 
2. Trade and Investment Regimes  
2.3 Trade Agreements and Arrangements  
2.3.2  Regional and preferential agreements  
2.3.2.1 Regional trade agreements (RTAs)  
2.14, page 41  
 
Japan is aiming for the swift conclusion of Regional Comprehensive Economic Partnership 
negotiations  
 
Question 1  
What is Japan 's current view on the prospect of RCEP 's completion in 2020?  
 
RESPONSE  
Japan has been working towards the signing of an RCEP Agreement by 16 countries by the end of 
this year, following the Joint Leaders ' Statement on the RCEP adopted on 4 November 2019 in 
Bangkok, Thailand.  
 
3. Trade Policies and Practices by Measure  
3.3 Measures Directly Affecting Production and Trade  
3.3.6 Government procurement  
Para 3.163, page 99  
 
The Secretariat Report refers to the  procurement procedures followed by central Government, local 
Governments and public corporations.  
 
Question 2  
Is In addition to the measures referred to, is procurement also within the scope of the Act 
on Promotion of Private Finance Initiative.  
 
RESPONSE  
A Private Finance Initiative project in Japan refers to a "Qualified Project", defined in the Act on 
Promotio n of Private Finance Initiative as "a project (including an urban redevelopment project, a 
land readjustment project, and another urban development project) involving the provision etc. of 
Public Facility etc. (which mean construction, production, rehabili tation, maintenance or operation 
of Public Facility etc, or planning of them, and include provision of services to the citizens), which is 
carried out more efficiently and effectively by utilizing private finance, management abilities and 
technical capabil ities". In terms of GPA, procurement with regard to a construction project within 
the scope of the Act on Promotion of Private Finance Initiative as of 30 November 2011 is covered 
by the agreement (please refer to the note to Annex 6 of Japan in the revise d GPA).  
 
Question 3  
If so, could  Japan  add further clarifications on how they view the interaction between 
public private partnerships and government procurement?  
 
RESPONSE  
In Japan, the term "public private partnerships" is not defined in laws and regulat ions and the Private 
Finance Initiative is implemented as defined in the above response to Question 2 of UK.  
 
Question 4  
Please can Japan clarify whether it publishes or has plans to publish a database of all 
contracts awarded by (a) central government ent ities, (b) sub -central government 
entities, (c) other entities?  
 
RESPONSE  
In terms of GPA covered procurement, the Government of Japan makes public a result of contracts 
awarded by (a) central government entities and (c) other entities on JETRO 's website, but the 
Government of Japan does not have any plans to publish a database of all the awarded contracts.  
 WT/TPR/M/397/Add.1  
 
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3. Trade Policies and Practices by Measure  
3.3 Measures Directly Affecting Production and Trade  
3.3.6 Government procurement  
Para 3.168, page 101  
According to the Secretariat Report, Japan maintains policies to promote the participation of SMEs 
in government procurement. The Secretariat Report also notes that the relevant legislation, 
specifically, the "Act No.97 on Ensuring the Receipt of Orders from the Government and Other Public 
Agencies by Small and Medium Sized Enterprise Operators of 1966 ", remained unchanged during 
the review period.  
 
Question 5  
In the period under review, what proportion of SMEs winning public procurement 
contracts were foreign SMEs?  
 
RESPONSE  
The total value of procurement from SMEs is collected annually, but information on foreign SMEs is 
not collected.  
 
Question 6  
Does the Government have programmes in place to encourage Japanese SME participation 
in procurement opportunities abroad?  
 
RESPONSE  
The Small and Medium Enterprise Agency has no policy to encourage Japanese SMEs to participate 
in overseas government procurement. The Ministry of Economy, Trade and Indust ry (METI) hopes 
that SMEs with excellent technologies and services and potential for overseas expansion will be able 
to take on overseas markets and take on overseas expansion in a form that fully reflects their 
strengths. METI provides meticulous support according to the stage of expansion as follows:  
(1) At the stage of collecting information with the aim of overseas expansion, METI provides 
information on available SME support measures on websites, etc.  
(2) In the specific planning and preparation stages , METI provides marketability research, business 
plan formulation, and support for product and service development.  
(3) At the stage of actually expanding into the local area, METI assists with searching for overseas 
partners, such as agents and buyers, an d supports sales channel development at exhibitions and 
business meetings.  
(4) At the stage of stabilizing and expanding overseas business, METI works to support local legal 
and labor issues and other issues in anticipation of establishing local bases.  
 
3. Trade policies and practices by measures  
3.3 Measures Directly Affecting Production and Trade  
3.3.6 Government procurement  
Para 3.168, page 101  
 
The Secretariat Report notes that there has been some concern over the apparently low share of 
foreign companies in public procurement.  
 
Question 7  
What does the Government do to ensure procurement is conducted in a non -
discriminatory, transparent and open manner?  
 
RESPONSE  
As a basic policy, the Government of Japan creates and operates legislations and mea sures related 
to government procurement fully in line with the principle of non -discrimination, openness and 
transparency.  
 
Question 8  
Please can Japan outline whether they are taking measures to improve the share of 
foreign companies in Japanese public pr ocurement? And if so, which measures are they 
taking?  
 WT/TPR/M/397/Add.1  
 
- 133 - 
 
RESPONSE  
In terms of covered procurement, the central government announces the annual schedule of its 
procurement by holding a seminar once a year.  
 
3. Trade policies and practices by measures  
3.3 Measures Directly Affecting Production and Trade  
3.3.6 Government Procurement  
Paragraph 3.174, page 105  
 
The Secretariat Report notes that Japan maintains policies to promote the participation of SMEs in 
government procurement.  
 
Question 9  
Please can Japan clarify whether a UK SME would receive the same treatment as a 
Japanese SME in government procurement by a Japanese government entity?  
 
RESPONSE  
Foreign suppliers are accorded the same treatment as Japanese suppliers receive with regard to the 
covere d procurement specified in Japan 's annexes to Appendix I of GPA. In addition, the Public Utility 
Law does not treat domestic and foreign SMEs differently.  
 
3. Trade Policies and Practices by Measure  
3. 3 Measures Directly Affecting Production and Trade  
3.3.7 Intellectual Property Rights  
3.3.7.1 Features of IP strategy  
3.181, page 107  
 
According to the Secretariat Report, modifications were made to Japan 's IP laws during the review 
period, intended to facilitate the enforcement of IPRs.  
  
Question 1 0 
Does the Government have anything specific in place to support SMEs in accessing 
effective and affordable justice to enforce intellectual property rights?  
 
RESPONSE  
The JPO  operates the subsidy program to cover two thirds of the cost for legal consultations and 
litigations needed when SMEs are sued for infringement of IP rights overseas. In addition, the JPO 
subsidizes the premiums for SMEs enrolling in the overseas IP litig ation insurance scheme by paying 
half of the cost (reduced to 1/3 from the 2nd year onwards, after renewal).  
 
WT/TPR/G/397 – Government Report  
 
2. Trade and Investment Policy  
2.4 Other Regional/Bilateral Arrangements  
2.4.1 Asia -Pacific Economic Cooperation  (APEC)  
Paragraph 2.17, page 9  
 
The report states that Japan has been taking an initiative to implement APEC projects including  
competition policy in FTAs/RTAs, services, digital economy and food security . 
 
Question 11  
Could Japan provide more information on what further reform(s) it is committed to 
undertaking to enhance the international competitiveness of its service sector?  
 
RESPONSE  
Japan has signed and brought into force EPAs, which reduce or eliminate barriers on trade in 
services, to capture the vitality of the growing market overseas and strengthen the basis of the 
Japanese economy including the following:  
(1) Japan -EU EPA  
The Japan -EU EPA was signed in July 2018 and entered into force in February 2019. Under the 
Japan -EU EPA, all sectors of trade in services and investments are liberalized in principle, and 
reserved exceptional measures and areas are enumerated (Negative List). This EPA provides rules, WT/TPR/M/397/Add.1  
 
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such as telecommunication services and regulatory cooperation on finan cial regulation, to meet the 
needs of Japanese businesses in Europe. Rules ensuring security and credibility of e -commerce, such 
as prohibition of imposing customs duties on electronic transmissions and prohibition of forced 
disclosure of source codes, are  also provided.  
(2) TPP11  
Eleven countries, namely Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, 
Peru, Singapore, and Viet Nam, participated in the negotiations, and the TPP Agreement was signed 
in March 2018. This Agreement will establish rules for the 21st century in a wide range of areas, 
including tariffs, services, investments, intellectual property, and state -owned enterprises. It will 
provide Japanese companies with an opportunity to be more active in markets overseas, and w ill be 
a major driving force for the economic growth of Japan.  
 
4. Japan 's Domestic Policies  
4.1 Abenomics  
Paragraph 4.1, pages 13 -14 
 
The report notes the positive impact of the promotion of Abenomics over the past seven years.  
 
Question 12  
Could Japan provide more information on recent reform of service sector regulation, such 
as through legislation, to make Japan 's service sector more open to international service 
providers.  
 
RESPONSE  
(1) New status of residence for acceptance of work -ready forei gners  
The Immigration Services Agency has introduced the following 2 new status of residence for 
acceptance of work -ready foreigners who possess certain expertise and skills in fields where labour 
shortages exist in Japan (effective in April 2019):  
- Statu s of residence of Specified Skilled Worker (i) – Based on the Basic Policy, this status of 
residence is applicable to foreigners who have successfully completed "Technical Intern Training (ii)" 
or who pass a qualifying test in 14 fields, many of which are service fields. The initial period of stay 
will be 1 year, 6 months or 4 months and can be renewed for a maximum of 5 years in total.  
- Status of residence of Specified Skilled Worker (ii) – This status of residence is applicable to 
foreigners who pass a h igher-level qualifying test in 2 fields at the moment, including construction 
services. The initial period of stay will be 3 years, 1 year or 6 months and can be renewed without 
limitation.  
(2) Amendment to the Telecommunications Business Act  
Japan's Diet approved an amendment to the Telecommunications Business Act in May 2019 to 
facilitate fair competition in the mobile communication sector. The amendment prohibits mobile 
operators from offering discounts for retail communication charges at th e time of sale of mobile 
handsets. It also prohibits conditions which unduly constrain subscribers from cancelling contracts.  
 
Report by Secretariat (WT/TPR/S/397)  
2. Trade and Investment Regimes  
2.3 Trade Agreements and Arrangements  
2.3.2  Regional and preferential agreements  
2.3.2.1.2 EU -Japan  Economic Partnership Agreement  
2.25, page 43  
 
According to the report, the EU -Japan Economic Partnership Agreement (EPA) includes provisions 
on inter alia , e-commerce; government procurement (Section 3.3.6); competition policy (Section 
3.3.4); state -owned enterprises; enterprises granted special rights or privileges and designated 
monopolies; intellectual property (Section 3.3.7); trade and sustainable deve lopment; agricultural 
cooperation; and SMEs.  
 
The United Kingdom notes that new provisions – which go beyond the GATS baseline – were included 
for short -term business visitors and investors in the EU -Japan EPA.  
 WT/TPR/M/397/Add.1  
 
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Question 13  
Given the difficulties in analys ing mode 4 commitments, how does the Government plan 
to evaluate the impact of these provisions?  
 
RESPONSE  
The section for entry and temporary stay of natural persons in the Japan -EU EPA provides for the 
grant of entry and temporary stay to natural persons  for business purposes including short -term 
business visitors and investors, the requirements for granting entry and temporary stay, and the 
improvement of transparency in the procedures. Such provisions are expected to facilitate the 
immigration procedure s for natural persons for business purposes from both Japan and EU countries, 
as well as to improve legal stability for the procedures.   WT/TPR/M/397/Add.1  
 
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UKRAINE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/397)  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.4 Structural policies  
1.2.4.1 Tax reform  
Page 22 (Para 1.12)  
According to the Report the Diet approved legislation for the Government 's tax reform proposals for 
2019 on 27 March 2019 and one of the main measures affecting corporate and international taxation 
was tax treatment of virtual currencies.  
 
Question  1 
Would Japan kindly inform more on the tax reform, implemented with respect to tax treatment of 
virtual currencies, procedure of its taxation and legal status?  
 
RESPONSE  
The tax reform related to virtual currency is below.  
1. Improvement of compliance corresponding to divergence of economic transactions.  
2. In order to ensure the appropriate taxation amidst the spread of digital economy and globalization  
of economic transactions including virtual currency transactions, provide statutory provisions on 
obtaining taxpayer 's information from third party, which have been made in practice.  
3. At the same time, provide National Tax Agency (NTA) with the authori ty to make inquiries into 
third parties about identity unknown taxpayer 's information, in circumstances where it is particularly 
necessary to do so in order to identify taxpayers with high degree of non -compliance.  
 
3 TRADE POLICIES AND PRACTICES BY MEASUR E 
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 52 (Para 3.2)  
The Report notes, that over the review period, amendments to the Customs Act in 2017 and 2018, 
inter alia , integrated strengthened penalti es for failure to obtain export and import permissions when 
required.  
 
Question  2 
Could Japan, please, elaborate on mentioned penalties and explain the policy rationale behind the 
necessity of its strengthening?  
 
RESPONSE  
In recent years, gold smuggling aimed at evasion of import consumption tax has sharply increased. 
This indicates that the former penalties for unauthorized importation were not adequately effective 
in preventing gold smuggling. Therefore, to enhance the effectiveness of prevent ing gold smuggling, 
the amount of the fines for unauthorized importation was raised.  
 
Page 54 (Para 3.11)  
The Report mentions advance rulings, that may be requested by importers or other interested parties 
(on tariff classification, customs valuation, the  origin of goods, and duty relief/exemption for goods 
due for import ), and are binding on Customs.  
 
Question  3 
Ukraine would appreciate if Japan could inform whether any information on advance rulings is 
publicly available and, if so, provide respective link.  
 
RESPONSE  
Information on advance rulings are publicly available on the Customs website at:  
1. Introduction  to advance rulings  
 (Classification) https://www.customs.go.jp/english/c -answer_e/imtsukan/1202_e.htm . 
 (Valuation) https://www.customs.go.jp/english/c -answer_e/imtsukan/1402_e.htm . 
 (Origin) https://www.customs. go.jp/english/c -answer_e/imtsukan/1522_e.htm . 
 (Duty relief/exemption) https://www.customs.go.jp/tetsuzuki/c -answer/imtsukan/1607_jr.htm . 
(Japanese language only)  
2. Advan ce rulings (Japanese language only)  WT/TPR/M/397/Add.1  
 
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 (Classification) https://www.customs.go.jp/searchsv/jitsv001.jsp . 
 (Valuation) https://www.customs.go.jp/zeikan/seido/kanzeihyouka/kaitoujirei.htm . 
 (Origin) https://www.customs.go.jp/searchao/jaosv001.jsp . 
(Duty relief/exemption) https://www.customs.go.jp/zeikan/seido/genmenzei/kaitoujirei.htm . 
 
Page 54 (Para 3.13)  
According to the Report Japan has signed agreements and arrangements for the exchange of 
customs information with 35 cou ntries and regions.  
 
Question  4 
Would Japan, please, clarify how the requested information is protected?  
 
RESPONSE  
Japan protects the requested information in accordance with the law and regulations, such as the 
National Public Service Act and the Act on the Protection of Personal Information Held by 
Administrative Organs, which set out the obligations of government officials with respect to the 
handling of information obtained in the course of their duties. The obligations include: preservation 
of the sec recy of obtained information, restriction on the use and sharing of information within the 
specified purposes, and implementation of security measures for protecting personal information.  
 
3.1.4 Tariffs  
Page  55 (paragraphs 3.1 8-3.19)  
The Report states, th at the tariff remains one of the main trade policy instruments and a minor 
source of tax revenue (in FY2019, customs duties amounted to 1.65% of central government tax 
revenue). The Customs Tariff Act provides for, inter alia,  customs duty reductions and e xemptions. 
The Temporary Tariff Measures Act provides for temporary exemptions to the Customs Act and the 
Customs Tariff Act to allow for customs duty adjustments, if needed, for the sound development of 
the national economy.  
 
Question  5 
Would Japan kindly elucidate what authorities are responsible for initiation of customs duty 
reductions and exemptions for the purposes of developing domestic industries, promoting trade and 
science, meeting requirements associated with social welfare?  
 
RESPONSE  
Reque sts for tariff revision from parties located in Japan (as well as from foreign interested parties 
residing in Japan) are received by the government ministry or organization that holds jurisdiction 
over the request items involved. Tariff -revision requests f rom foreign governments are received by 
the Ministry of Foreign Affairs. Requests received from foreign governments by the Ministry of 
Foreign Affairs are sent to the relevant authorities that hold jurisdiction over the request items 
(although requests fro m foreign governments may also be made directly to the government ministry 
or organization that holds jurisdiction over the request items).  
 
Question  6 
What is the established mechanism for collaboration and communication with all stakeholders during 
this process?  
 
RESPONSE  
Please refer to the following URL: https://www.customs.go.jp/english/c -
answer_e/sonota/9702_e.htm . 
 
Question  7 
Could Japan, please, share its opinion con cerning efficiency of Japan 's systems for tariff reductions 
and exemptions and its contribution to the development of the national economy?  
 
RESPONSE  
In general, tariffs have two major functions: (1) to protect domestic industries and (2) to serve as 
a sou rce of financial revenue. Nowadays, they play a more important role protecting domestic 
industries than serving as a source of revenue in Japan. Japan believes that it is necessary to 
consider the points of view of industries, consumers, etc when changing tariff rates.  
 WT/TPR/M/397/Add.1  
 
- 138 - 
 
3.1.4.1 MFN applied tariff  
Pages 55 -56 (Para 3.22)  
Under the Report, "The structure of Japan 's MFN applied tariff remains complex, with a total of 272 
tariff rates (same as in FY2016)."  
According to data provided in Table 3.1, Japan 's overall simple average applied MFN tariff rate rose 
slightly to 6.3% in FY2019 (up from 6.1% in FY2016), mainly d ue to higher AVEs and, to a much 
lesser extent, to a HS nomenclature change. The simple average tariff rate for agricultural products 
(WTO definition) is 17.9% compared with 3.5% for non -agricultural products.  
 
Question  8 
Could Japan kindly explain the gro unds for increase of its simple average applied MFN tariff rates 
and application of higher peak rates (AVEs) during the period under review?  
 
RESPONSE  
Although it is not clear how "non -ad valorem  duties" are calculated in the Secretariat Report, Japan 
had not changed specific duty rates from FY2016 to FY2019. Decrease in import unit values may 
have led to increase in the valorem equivalent rates.  
 
Question  9 
What are Japan's plans concerning possible changes in its tariff policy, in particular with respect to 
simplification of tariff structure, reduction of tariff peaks and trade liberalization of its agriculture 
sector?  
 
RESPONSE  
The changes of tariff rates are determined comprehensively based on a variety of points, including 
import demand and the status of ongoing FTAs. As for Japan's plans concerning possible changes to 
its tariff policy, Japan cannot announce the changes in advance, which would otherwise prejudge 
those points. Please refer to the following URL for the schedule of annual tariff re vision process, 
https://www.customs.go.jp/english/c -answer_e/sonota/9702_e.htm . 
 
3.2 Measures Directly Affecting Exports  
3.2.5 Export finance, insurance, and guarantees  
Page 74 (Para 3.76)  
The Report points out that the Nippon Export and Investment Insurance (NEXI), one of Japan 's 
official export credit agencies, was transformed from an incorporated administrative agency into a 
special stock company wholly own ed by the Government of Japan, in order to strengthen NEXI 's ties 
with the Government, to improve business management, and to better reflect the intentions of 
government policies in NEXI 's business.  
 
Question  10 
Would Japan, please, inform, how transformat ion of the NEXI has influenced achievement of 
established policy objectives?  
 
RESPONSE  
Even after the transformation, achievement of established policy objectives is one of NEXI 's 
important management policies.  
 
Question  11  
Development of which industries was the most successful due to support of the NEXI?  
 
RESPONSE  
NEXI has provided insurance especially in the following sectors: power generation; oil and gas; and 
infrastructure, such as seawater desalination, port rehabilita tion, aircraft, ship and mining 
equipment.  
 
3.3 Measures Directly Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.2 Price controls  
Pages 94 -95 (Para 3.154)  
Under the Report, Japan maintains a price survey scheme on certain  pharmaceutical products, based 
on a drug price standard. The actual purchase prices paid by medical institutions and pharmacies 
(prevailing market price) are surveyed (drug price survey), and the prices specified in the drug price WT/TPR/M/397/Add.1  
 
- 139 - 
 
standard are revised per iodically based on the results of the survey. All medicines covered by the 
National Health Insurance (approximately 20,000) are subject to the price survey. To control 
healthcare costs, the Government has been revising drug prices biennially, based on the actual 
purchasing price, leading to annual price cuts of 5% to 7% since 2017.  
The Report also shortly mentions the latest pricing reform in this field.  
 
Question  12 
Could Japan shortly describe its drug price survey process with indication of responsible authorities, 
methods and instruments used for monitoring of actual purchasing prices?  
 
RESPONSE  
In order to obtain base data (market price, etc.) for the revision of the National Health Insurance 
Drug Price Standard, all drugs included in the Standard are surveyed by the Ministry of Health , 
Labour and Welfare for their selling price when sold by sellers of drugs to insurance -covered medical 
institutions and pharmacies, as well as for their purchasing price at medical institutions selected 
based on certain sampling rates.  
 
Question  13 
What are the tasks and expected effects of mentioned pricing reform?  
 
RESPONSE  
Drugs prices would be adjusted to actual purchase prices through the revision, leading to reduction 
in healthcare cost.  
 
4 TRADE PO LICIES BY SECTOR  
4.4 Services  
4.4.1 Financial services  
Pages 164 - 169  
The Report shows main economic indicators of the financial services sector of Japan and describes 
the regulatory changes in legal framework for banking and other financial services ac tivities that 
have occurred during the period under review.  
 
Question  14 
Would Japan, please, describe the procedure for assessment of the ownership structure, business 
reputation and financial condition of a bank by the Financial Services Agency (FSA), in particular 
requirements to acquisition of qualifying holding in the regulated entities, indicators of non -
transparency of the ownership structure?  
 
RESPONSE  
When an application for the bank license under the Banking Act is made, FSA requires the applicant 
to submit statements which include applicant 's financial conditions, earnings prospect, and detailed 
information about shareholders (regardless of the amount of voting rights). In this way, FSA 
assesses if the applicant is able to carry out the b usiness of a Bank in sound and appropriate manner. 
For your reference, please look at para 2 of article 4 -2 of the Act and para 3 of article 1 -8 of the 
Ordinance for Enforcement of the Banking Act for further information.  
Japan assumes that the "qualifyin g holding" in the question above represents thresholds of 
shareholding of a bank. When an applicant wants to have voting rights of a bank, FSA requires the 
applicant, in accordance with the Banking Act, to submit a notification or obtain approval from the 
authority if the shareholding exceeds the following thresholds:  
(1) more than 5 ％ voting rights: need notification to FSA  
For your reference, please look at para 1 of article 34 -2-47 of the Ordinance for further information.  
(2) 20% or more voting rights:  need approval from FSA  
For your reference, please look at article 52 -10 of the Act and article 34 -6 of the Ordinance for 
further information.  
Tentative translation of the Banking Act: 
http:/ /www.japaneselawtranslation.go.jp/law/detail/?id=1870&vm=04&re=01 . 
Tentative translation of the Ordinance for Enforcement of the Banking Act: 
http://www.japaneselawtr anslation.go.jp/law/detail_main?re=02&vm=&id=2691 . 
 WT/TPR/M/397/Add.1  
 
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Question  15 
What are the conditions for authorization of non -banking financial institutions in Japan: types of 
activities, key requirements to applicants, approval procedure; verifying sources of funds fo r the 
formation of capital?  
 
RESPONSE  
Although Japan is not exactly sure what Ukraine meant by "non -banking financial institutions", when 
a person intends to operate money lending business without a banking license, the person must be 
registered as a Money Lender under the Money Lending Busine ss Act. For the conditions for 
authorization, please refer to Article 3 and Article 4 of the Act (tentative translation is available at 
the link below).  
http://ww w.japaneselawtranslation.go.jp/law/detail/?id=3224&vm=04&re=02new=1 . 
 
Question  16 
What are the differences in prudential regulation and corporate governance requirements (if there 
are any) for city, trust, regional, tier II regional, Shinkin banks and cred it cooperative banks?  
 
RESPONSE  
Although FSA adopts a risk -based approach for the deposit -taking institutions listed above, the 
regulation and the requirements are not necessarily tailored for each category of the banks listed 
above, and are applied based on each institution 's characteristics such as business model, scale and 
complexity of their operation. For instance, regarding governance, FSA requires the institutions to 
establish governance systems for sound and appropriate business operations based upo n their 
business models and risks they take. Among these institutions, however, Japan specifically expect 
Global Systemically Important Banks (G -SIBs) to build a more robust governance system than other 
banks, based on its scale, complexity, international business operation, and interconnectedness.  
 
Question  17 
Could Japan kindly inform if there is any specific prudential regulation for state -owned banks?   
 
RESPONSE  
Japan supervises government financial institutions based on each institution 's settlement law* and 
imposes strict regulations such as authorization of business plans and inspections of the condition 
of business or documents, in addition to regulations at the same level with private financial 
institutions.  
 *The Japan Finance Corporat ion Act, Okinawa Development Finance Corporation Law, The Japan 
Bank for International Cooperation Act, The Development Bank of Japan Inc. Act and The Shoko 
Chukin Bank Limited Act  
 
PART II: QUESTIONS REGARDING THE REPORT  BY JAPAN (WT/TPR/G/397)  
4 JAPAN 'S DOMESTIC POLICIES  
4.1 Abenomics  
Page 14 (Para 4.1)  
According to the Report, one of the viewpoints that are taken into consideration in promoting the 
initiatives to reach the goal of the economic revitalization in Japan is to create a society in which 
everyone plays an active role and feels secure. It states, "In anticipation of the arrival of an era of 
"100-year life spans", to build a society in which everybody including elderly people and young 
people can play an active role regardless of age, it is essential not only to promote "Human 
development revolution" to improve the quality of each person as human resource, but also to 
establish the social security system for all generations, with revising the conventional ways of 
thought and systems so that a ge doesn 't become the constraint in working, and expanding the 
supporters of social security by allowing them to freely select their workstyles regardless of age."  
 
Question  18 
Would Japan, please, elaborate on its policy measures, taken in mentioned direction, including trade -
related actions?  
 
RESPONSE  
Amidst the diversification of lifestyles, Japan has reviewed a series of reforms covering the entire 
spectrum of social security, including work style, so as to sustain the peace of mind not o nly of the 
elderly but also children, the childrearing generation and the current working generation, changing 
the stereotypical view taken of the elderly.  WT/TPR/M/397/Add.1  
 
- 141 - 
 
Last September, Japan launched the Council on Social Security Reform for All Generations to reform 
the social security system in a comprehensive manner, including work styles. The goal is to help all 
age groups — from old to young, including parenting families and working generations —lead their 
lives without worrying about their future. At the end of las t year, Japan published an interim report 
based on the discussions held in the Council. In order to let more people move from the "supporting" 
side to the "supported" side, Japan deem it necessary to rebalance the "supporting" and "supported" 
sides, while aiming to provide sustainable and comfortable social security systems for all generations 
and to curb increasing fiscal burdens on the working generations.  
For example, Japan will ensure employment opportunities up to age 70 for elderly people with the 
desire to work. Japan will also enhance medical treatment and nursing care that place importance 
on prevention so that people may always stay healthy. As the wall separating permanent and non -
permanent employment crumbles with equal pay for equal work, Japan  will expand the scope of 
application of employee pensions, ensuring people 's peace of mind after their retirement. Toward 
the publication of the final report in this summer, Japan will deepen discussions at the Council.  
 
  WT/TPR/M/397/Add.1  
 
- 142 - 
 
COLOMBIA  
Informe de la Secretarí a - Documento WT/TPR/S/397  
 
2. REGÍMENES DE COMERCIO E INVERSIÓN  
MARCO GENERAL  
 
El párrafo 2.2 señala: "La política económica general del Japón se sigue rigiendo por el programa 
"Abenomics ", que ha ido evolucionando y tiene dos objetivos fundamentales: lograr un crecimiento 
sostenible y hacer realidad la noción de Sociedad 5.0. En cuanto al primero de los objetivos, la meta 
es alcanzar un  PIB nominal de JPY  600 billones gracias a un círculo  virtuoso propiciado por el 
aumento de la producción, de los ingresos y del consumo. Los esfuerzos se centran en cuatro 
esferas: a) productividad de las personas; b) reglamentaciones y leyes inteligentes ; 
c) oportunidades internacionales atractivas; y d) m ayor competitividad empresarial.4 El objetivo 
perseguido mediante la Sociedad 5.0 es mejorar el bienestar de las personas y la sostenibilidad, y 
superar desafíos de carácter social, como la disminución de la tasa de natalidad, el envejecimiento 
de la pobl ación y problemas relacionados con el medio ambiente y la energía, mediante el desarrollo 
y el empleo de nuevas innovaciones, por ejemplo, la Internet de las cosas, los macrodatos, la 
inteligencia artificial, la robótica y la economía colaborativa.5 
 
Ques tion 1 
¿Podría el Gobierno de Japón describir ¿En qué consisten las "reglamentaciones y leyes 
inteligentes" que se indican en este párrafo?   
 
RESPONSE  
Smart regulations and laws will help support innovation, stimulate new business, and open the door 
to new ideas. Examples to realize them include the Regulatory Sandbox, where cutting -edge 
businesses and technologies can develop in "sandboxes", which allow s them to be tested and 
improved in real -life situations without existing restrictions , and the National Strategic Special 
Zones, regions selected to serve as laboratories to carry out advanced structural reforms. Other 
smart regulations and laws include rules for the digital market, the Data Free Flow with Trust 
concept, and rules for a decarbonized society. Additional information about these policies and 
achievements can be found here, 
https://www.japan.go.jp/abenomics/_userdata/abenomics/pdf/2001_abenomics.pdf . 
 
El párrafo 2.3 menciona: " En el marco de la estrategia de ejecución del programa "Abenomics " se 
está aplicando la Estrategia de Revitalización del Japón de  2016. Esta lleva aparejadas reformas 
encaminadas a: … el fomento de la investigación conjunta por parte de la industria y el mundo 
académico; la introducción de un permiso japonés de residenc ia y trabajo para profesionales 
extranjeros altamente cualificados (véase infra); la prestación de apoyo a las empresas para que 
implanten tecnologías de la información y robots ; la promoción de la tecnología en los ámbitos 
sanitario, medioambiental y ener gético; la creación de una cadena de suministro del hidrógeno a 
gran escala (para 2030); (…) y el aumento de la participación privada en los servicios y activos 
públicos. Con el fin de orientar algunas de estas iniciativas se establecieron varias nuevas en tidades, 
entre ellas, el Consejo Público -Privado para la Cuarta Revolución Industrial, el Consejo de la 
Estrategia de Tecnología de Inteligencia Artificial y el Consejo de Promoción del Desarrollo de los 
Recursos Humanos en Respuesta a la Cuarta Revolución  Industrial . 
 
Question  2 
¿Podría el Gobierno de Japón ampliar la información sobre el tipo de apoyo brindado a las 
empresas para que implementen tecnologías de la información y robots? ¿A qué tipo de 
empresas está dirigido este apoyo? ¿Cuál es el tiempo pr evisto para proveer este apoyo?   
 
RESPONSE  
Japan offers various schemes of assistance to companies operating in Japan so that they can cope 
with challenges in the era of connected industries. These schemes include providing subsidies, 
establishing industrial standards, sharing public data, tax exem ptions and so on. The companies 
 
4 Según han informado las autoridades, para lograr la m eta del PIB nominal, también habrá que aplicar 
simultáneamente medidas en ámbitos muy diversos.  
5 Government of Japan, Abenomics . Consultado en: https://www.japan.go.jp/abenomics/index.html . WT/TPR/M/397/Add.1  
 
- 143 - 
 
eligible for these schemes and the time required for providing assistance vary by the specific 
schemes to which the companies apply.  
 
Question  3 
¿Podría el gobierno de Japón indicar cuáles son las funciones específicas y los  miembros 
que conforman el Consejo Público -Privado para la Cuarta Revolución Industrial, el Consejo 
de la Estrategia de Tecnología de Inteligencia Artificial y el Consejo de Promoción del 
Desarrollo de los Recursos Humanos en Respuesta a la Cuarta Revoluci ón Industrial?  
 
RESPONSE  
1. Public -Private Council for the fourth Industrial Revolution  
Public -Private Council for the fourth Industrial Revolution  
The "Future Investment Council" plays the role of the "Public -Private Council for the fourth Industrial 
Revolution" in the "Japan Revitalization Strategy 2016".  
The Council was established under the "Headquarters for Japan 's Economic Revitalization" (a 
committee all Ministers participated for overcoming the strong yen and deflation and revitalizin g a 
strong economy in cooperation with the Council on Economic and Fiscal Policy for the economic 
revival) as the headquarters of growth strategies. It promotes bold investments in the fields 
contributing to future growth, including the Fourth Industrial R evolution, in a public -private 
partnership. The members of the meeting are as follows. Provided, however, that the chairperson 
may request the addition of members or the attendance of related persons when it deems necessary.  
Chair: Prime Minister  
Deputy Ch air: Deputy Prime Minister  
Vice Chair: Minister of State for Economic and Fiscal Policy, Chief Cabinet Secretary, Minister of 
Economy, Trade and Industry  
Member: Persons appointed by the Prime Minister from among those with excellent insight regarding 
the "Investment in the Future" designated by the Prime Minister  
 
Member list (as of 25 October2019)  
 
Chair:   
ABE Shinzo  Prime Minister  
Deputy Chair :  
ASO Taro  Deputy Prime Minister  
Vice Chair:   
NISHIMURA Yasutoshi  Minister of State for Economic and Fiscal Policy  
Minister in charge Economic Revitalization  
Minister in charge of Social Security Reform  
SUGA Yoshihide  Chief Cabinet Secretary  
KAJIYAMA Hiroshi  Minister of Economy, Trade and Industry  
Member:   
TAKAICHI Sanae  Minister for Internal Affairs and Communications  
HAGIUDA Koichi  Minister of Education, Culture, Sports, Science and Technology  
KATO  Katsunobu  Minister of Health, Labour and Welfare  
TAKEMOTO  Naokazu  Minister of State for Science and Technology Policy  
KITAMURA  Seigo  Minister of State for Regulatory Reform  
KANEMARU Yasuhumi  Chairman and President, Group CEO,  
Future Corporation.  
GONOKAMI Makoto  President, the University of Tokyo  
SAKURADA Kengo  Group CEO, Director, President and Representative Executive 
Officer, Sompo Holdings, Inc.  
SHIGA Toshiyuki  Chairman and CEO Member of the Board, INCJ, Ltd.  
TAKENAKA Heizou  Professor at Toyo University, Professor Emeritus at Keio 
University  
NAKANISHI Hiroaki  Chairman, KEIDANREN (Japan Business Federation)  
Executive Chairman, Hitachi, Ltd.  
NAMBA  Tomoko  Founder & Executive Chairman, DeNA Co., Ltd.  
 
2. Strategic Council for AI Technology  
Based on instructions issued by the Prime Minister in " Public -Private Dialogue towards Investment 
for the Future" in April 2016, the Government of Japan established the "Strategic Council for AI 
Technology" which consists of the presidents of national institutes, founding agencies, universities 
and industries in order to consider AI strategy. Incidentally, the Council was reorganized to "AI 
strategy expert meeting for strength and promotion of the innovation" in 2018 and the discussion WT/TPR/M/397/Add.1  
 
- 144 - 
 
of AI strategy was taken by the expert meeting. In 2019, the Government of J apan established "AI 
Strategy 2019" based on the proposal of the expert meeting.  
 
3. Council for Promoting Human Resource Development to respond to the Fourth Industrial 
Revolution  
Based on the "Japan Revitalization Strategy 2016" (decided at the Cabinet Council on June 2, 2016), 
the Government of Japan established the "Council for Promoting Human Resource Development to 
respond to the Fourth Industrial Revolution" composed of releva nt ministries and agencies: MIC, 
MEXT, MHLW and METI, industry, labor, educational institutions, vocational training institutions, and 
the human resources development industry, etc. Japan discussed the types of human resources that 
would be demanded in the  fourth industrial revolution era and policies necessary to develop such 
human resources. Japan incorporated the results of these discussions in the "Investment for the 
Future Strategy 2017" (decided at the Cabinet Council on June 9, 2017), which specified  revision of 
the indicator (IT skill standards) that systemized and clarified the necessary practical ability, system 
reform and policy support for higher education institutions such as universities to become important 
players in "IT and data skill trainin g", implementation of IT/data education such as programming in 
primary and secondary education and so on.  
 
Question  4 
¿A cuáles Ministerios o entidades están adscritos el Consejo Público -Privado para la 
Cuarta Revolución Industrial, el Consejo de la Estrategia de Tecnología de Inteligencia 
Artificial y el Consejo de Promoción del Desarrollo de los Recursos Humanos en Respuesta 
a la Cuarta Revolución Industrial?   
 
RESPONSE  
The Public -Private Council for the Fourth Industrial Revolution, the Strategic C ouncil for AI 
Technology and the Council for Promoting Human Resource Development to Respond to the Fourth 
Industrial Revolution are all inter -ministerial bodies that are coordinated by the Headquarters for 
Japan 's Economic Revitalization, a Cabinet Office  organization. Details of these councils are as 
follows:  
(1) Public -Private Council for the Fourth Industrial Revolution  
The Future Investment Council plays the role of the Public -Private Council for the Fourth Industrial 
Revolution in the Japan Revitaliza tion Strategy 2016.  
The Council was established under the Headquarters for Japan 's Economic Revitalization (a 
committee in which all Ministers participated for overcoming the strong yen and deflation and 
revitalizing a strong economy in cooperation with th e Council on Economic and Fiscal Policy) as the 
headquarters of growth strategies. It promotes bold investments in fields contributing to future 
growth, including the Fourth Industrial Revolution, through public -private partnerships.  
(2) Strategic Council for AI Technology  
Based on instructions issued by the Prime Minister in the Public -Private Dialogue towards Investment 
for the Future in April 2016, Japan established the Strategic Council for AI Technology, which was 
reorganized to the AI Strategy Expert Meeting for Strength and Promotion of the Innovation in 2018, 
and the discussion of AI strategy was taken on by the expert meeting. In 2019, Japan established 
the AI Strategy 2019 based on the proposal of the expert meeting.  
(3) Council for Promoting Human  Resource Development to Respond to the Fourth Industrial 
Revolution  
Based on the Japan Revitalization Strategy 2016 (decided at the Cabinet Council on June 2, 2016), 
Japan created the Council for Promoting Human Resource Development to Respond to the Four th 
Industrial Revolution in December 2016 and held five conferences up to April 2017. The Council 
discussed the type of human resources that would be demanded in the Fourth Industrial Revolution 
era and policies necessary to develop such human resources. J apan incorporated the results of these 
discussions in the Investment for the Future Strategy 2017 (decided at the Cabinet Council on 
9  June 2017), which specified revision of the indicator (IT skill standards) that systemized and 
clarified the necessary p ractical ability, system reform and policy support for higher education 
institutions such as universities to become important players in "IT and data skill training", 
implementation of IT/data education, such as programming in primary and secondary educati on, 
and so on.  
 WT/TPR/M/397/Add.1  
 
- 145 - 
 
2.4 Régimen de Inversión  
2.4.2 Entorno empresarial  
 
El párrafo 2.44 indica: "… En julio de  2019 se promulgó la Ley de Fortalecimiento de la Gestión de 
las Pymes, cuya finalidad es reforzar la gestión de las pymes y apoyar la continuidad de sus 
actividades comerciales, en particular por motivo del envejecimiento de sus propietarios (…). Un 
consejo gubernamental puso en marcha en 2019 una iniciativa en materia de innovación para ayudar 
a las empresas emergentes a ser competitiva s a escala mundial; se persigue el objetivo de duplicar 
el número de empresas emergentes innovadoras para 2024.  
 
Question  5 
¿Podría el Gobierno de Japón ampliar la información sobre la: "iniciativa en materia de 
innovación" para ayudar a las empresas emerg entes a ser competitivas a escala mundial?, 
Ej.: ejes fundamentales, herramientas que se aplicarán para su objetivo, entidades 
involucradas en la implementación de la iniciativa, recursos económicos destinados para 
ello, etc.?   
 
RESPONSE  
Please see below URL for the details of this initiative.  
https://www8.cao.go.jp/cstp/openinnovation/ecosystem/beyondlimits_en.pdf . 
 
Question  6 
¿Podría el Gobierno de Japón informar ¿A cuáles sectores económicos se aplica la 
"iniciativa en materia de innovación para ayudar a las empresas emergentes a ser 
competitivas a escala mundial"?  
 
RESPONSE  
Please see below URL for the details of this initiative.  
https://www8.cao.go.jp/cstp/openinnovation/ecosystem/beyondlimits_en.pdf . 
 
2.4.1 Marco de inversión  
 
En el párrafo 2.37. De conformidad con la Ley de Promoción del Japón  como Centro de Actividad 
Empresarial en Asia, de 2012, se otorgan incentivos para fomentar la inversión en el establecimiento 
de centros de investigación y desarrollo y sedes regionales.59 La Ley de Medidas Fiscales Especiales 
prevé la concesión de bonifi caciones fiscales en relación con el impuesto sobre la renta de las 
personas físicas.60 Hay otros incentivos a la inversión, como los siguientes: ayuda para la 
recaudación por Small and Medium Business Investment and Consultation Co. Ltd. de fondos 
destina dos a las pymes (incluidas las que son sociedades anónimas con un capital mínimo de JPY 
300 millones); exámenes de patentes acelerados; procedimientos de inversión abreviados; y 
exámenes acelerados de la condición de residente.61 Como han indicado las auto ridades, no se ha 
llevado a cabo ninguna evaluación de la eficiencia de estos programas de incentivos.  
 
Question  7 
Como parte de la Strategy of Global Outreach , existe una estrategia para pequeñas y 
medianas  empresas que consiste en oficinas que ofrecen servicios de consultoria en el 
exterior para las empresas de Japón que quieran hacer negocios fuera del país, al respecto 
nos gustaría saber si se divulgaran?:  Los instrumentos para fomento de la IED que tiene 
Colombia y que se están implementando y que podrían ayudar a Japón a aumentar su 
oferta de infraestructura a nivel internacional. El APRI entre Colombia y Japón.   
 
RESPONSE  
The government of Japan does not k now activities of small and medium enterprises consisting of 
offices providing consulting services overseas.  
 
Question  8 
También como parte de la política  Strategy of Global Outreach se fomenta "COOL Japan", 
es importante conocer si esta estrategia sirve para intercambio de los contenidos creados 
en otros países, por ejemplo, en Colombia.   
 WT/TPR/M/397/Add.1  
 
- 146 - 
 
RESPONSE  
Cool Japan strategy (policy) is to strengthen Japanese soft power by winning the hearts and minds 
of foreign people. Although the meaning of " exchanging content created in other countries" is not 
clear, if "the content created in other countries" are to serve the purpose of Cool Japan strategy, it 
could be a part of Cool Japan.  
 
Question  9 
Cómo funciona el procedimiento abreviado de inversiones y los criterios fijados para las 
notificaciones previas que deben hacerse según el tipo de inversión?   
 
RESPONSE  
Refer to 'Act for Promotion of Japan as an Asia Business Center - Guideline' for more information on 
support measures, requirements to qualify and application procedures.  
https://www.meti.go.jp/english/policy/external_economy/investment/pdf/e -guideline.pdf . 
 
3 POLÍTICAS Y PRÁCTICAS COMERC IALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.1 Procedimientos y requisitos aduaneros, y valoración en aduana  
 
Párrafo 3.3. El Japón depositó en la OMC su instrumento de aceptación del Acuerdo sobre Facilitación 
del Com ercio (AFC) en 2015. Ese mismo año estableció un comité nacional de facilitación del 
comercio (la Conferencia de Enlace sobre Facilitación del Comercio), que es un foro para el 
intercambio de información, a nivel de dirección general, entre los ministerios  y organismos 
pertinentes. El Japón mantiene varios servicios de información, con arreglo a lo estipulado en el 
párrafo 3 del artículo 1 del AFC.3 En el período objeto de examen, el Japón notificó su asistencia y 
apoyo para la creación de capacidad corresp ondiente a los años 2015, 2016 y 20174; también 
presentó una notificación sobre la publicación y disponibilidad de la información, las formalidades en 
relación con la importación, la exportación y el tránsito, y la cooperación aduanera.  
 
Question  10 
¿Existen restricciones normativas desde la óptica aduanera – diferentes a las acordadas 
en propiedad intelectual, reservas financieras, etc. - para intercambio o suministro de la 
información de los procesos productivos y de la información financiera que so porta los 
productos que, en su momento, se exporten a Colombia?   
 
RESPONSE  
Please refer to G/TFA/N/JPN/2 and G/TFA/N/JPN/2/Corr.1.  
 
3.3 Medidas que afectan directamente a la producción y al comercio  
3.3.2 Normas y otras prescripciones técnicas  
 
En el párrafo 3.99 se indica que: "El Japón tiene acuerdos de reconocimiento mutuo en vigor relativos 
a normas, reglamentos técnicos y procedimientos de evaluación de la conformidad con las 
Comunidades Europeas, Singapur, Filipinas, Tailandia, los Estados Unidos y el Taipei Chino."  
 
Question  11 
A Colombia le gustaría conocer ¿qué productos o sectores abarcan esos ARM y qué 
requisitos son necesarios cumplir para tener un ARM con ese país?  
 
RESPONSE  
(1) Japan has MRAs with the EU and the United States for cer tain product fields. It also has chapters 
on mutual recognition regarding acceptance of the result of conformity assessment in the Economic 
Partnership Agreements with Singapore, the Philippines, and Thailand. However,  there is no MRAs 
between Japan and Ch inese Taipei. Instead, there is a Mutual Recognition Arrangement between 
nonofficial liaison organizations of both sides. Japan does not have MRAs concerning voluntary 
standards.  
 WT/TPR/M/397/Add.1  
 
- 147 - 
 
 MRAs  Products covered by MRAs  MRAs  provisions stipulating 
products  
EU Agreement on Mutual 
Recognition between Japan and 
the European Community  ⚫ electrical products  
⚫ telecommunications 
terminal equipment and 
radio equipment  
⚫ chemicals  
⚫ medicinal products  ⚫ Sectoral Annex on 
Electrical Products  
⚫ Sectoral Annex on 
Telecommunications 
Terminal Equipment and 
Radio Equipment  
⚫ Sectoral Annex on Good 
Laboratory Practice for 
Chemicals  
⚫ Sectoral Annex on Good 
Manufacturing Practice for 
Medicinal Products  
Singapore  Chapter 6 (Mutual Recognition) 
of the Agreement between 
Japan and the Republic of 
Singapore for a New -Age 
Economic Partnership  telecommunications terminal 
equipment and radio equipment  Section I of Part B of Annex III  
Philippines  Chapter 6 (Mutual Recognition) 
of the Agreement between 
Japan and the Republic of 
Philippines for Singapore for an 
Economic Partnership  electrical products  Section 1 of Part 2 of Annex 4  
Thailand  Chapter 6 (Mutual Recognition) 
of the Agreement between 
Japan and the Kingdom of 
Thailand for an Economic 
Partnership  electrical products  Section 1 of Part 2 of Annex 4  
The United 
States  Agreement on Mutual 
Recognition of Results of 
Conformity Assessment 
Procedures between Japan and 
the United States of America  telecommunications terminal 
equipment and radio e quipment  Section VI of Annex  
Chinese 
Taipei  "Arrangement between the 
Japan -Taiwan Exchange 
Association and the Association 
of Taiwan -Japan Relations for 
the Cooperation on Mutual 
Recognition"  
(Note: This is a Mutual 
Recognition Arrangement 
between nonofficial liaison 
organizations of both sides. 
There is no MRAs between 
Japan and Chinese Taipei.)  electrical products  Section 1 of Part 2 of Annex  
 
(2) Japan does not have any prioritized sectors or partners for MRAs. Rather, careful consideration 
is required to examine possibilities of additional MRAs . In such examination, equivalence of 
regulatory systems of partner countries, technical competence of their conformity assessment 
bodies, and economic needs and benefits of MRAs expressed by national industries would be included 
for the consideration.  
 
3.3.2.3 Reglamentos técnicos  
En el párrafo 3.110 se indica que  "Por lo que se refiere a la elaboración de reglamentos técnicos y 
normas JAS  de carácter obligatorio, el proceso de elaboración/consulta es generalmente el siguiente: 
el organismo competente escucha la opinión de las partes interesadas, prepara el proyecto de 
reglamento técnico y lo presenta a su consejo consultivo pertinente, int egrado por representantes 
de la industria, el mundo académico y los grupos de consumidores, para que lo examine. A 
continuación, el consejo consultivo examina el proyecto y prepara su propuesta, teniendo en cuenta 
las observaciones presentadas por todas la s partes interesadas (incluidas las empresas extranjeras) 
durante el plazo de 60 días previsto al efecto. Con todo ello se elabora un informe que se envía al 
ministro competente. Por último, la norma obligatoria o reglamento técnico se dan a conocer 
median te la publicación de un aviso público en la Gaceta Oficial.114 El procedimiento de revisión y 
retirada de los reglamentos técnicos es básicamente el mismo que se sigue para elaborarlos, 
adoptarlos y aplicarlos. Según las autoridades, no existen datos dispo nibles sobre el número de 
reglamentos técnicos en vigor."  
 WT/TPR/M/397/Add.1  
 
- 148 - 
 
Question  12 
A Colombia le gustaría conocer si antes de la elaboración de un proyecto de reglamento 
técnico, el Japón realiza un estudio de Análisis de Impacto Normativo - AIN, si es así, cuál 
o cuá les son las metodologías utilizadas por Japón y cómo determinan el alcance del AIN, 
esto último teniendo en cuenta que hay modificaciones que pueden ser aclaratorias de 
una medida pero otras son de fondo.  
 
RESPONSE  
The regulatory authorities have generally assessed regulatory impacts of proposed technical 
regulations, referring to results of consultation and advices to external committee and gathering 
public comments.  
 
Question  13 
¿Cómo es un AIN ex y un AIN post?  
 
RESPONSE  
The regulatory authorities have assessed regulatory impacts of technical regulations after their 
adoption based on Government Policy Evaluations Act and its related guideline.  
3.3.2.4 Evaluación de la conformidad e inspección  
 
En el párrafo 3.113. Los fabricantes extran jeros de productos eléctricos y productos de consumo 
pueden someterse a la evaluación de la conformidad y la certificación por organismos de evaluación 
de la conformidad acreditados en el extranjero, con arreglo a las leyes pertinentes (por ejemplo, la 
Ley de Seguridad de los Aparatos y Material Eléctricos y la Ley de Seguridad de los Productos de 
Consumo). Por lo que se refiere a la Ley de Seguridad de los Productos de Consumo, hay un 
organismo de evaluación de la conformidad acreditado en el extranjero y seis organismos de 
evaluación de la conformidad acreditados en el país. En cuanto a la Ley de Seguridad de los Aparatos 
y Materiales Eléctricos hay siete organismos de evaluación de la conformidad acreditados en el 
extranjero y siete organismos de evaluaci ón de la conformidad acreditados en el país.  
 
Question  14 
¿Puede señalar el Japón su política de aceptación de certificados de evaluación de 
conformidad extranjeros distintos a los mencionados?  
 
RESPONSE  
Regarding to Telecommunication equipment, Japan may accept conformity assessment result issued 
by foreign conformity assessment bodies which are registered in accordance with the law based on 
Mutual Recognition Agreement or other relevant laws.  
 
Question  15 
A Colombia le gustaría conocer como los reguladores determinar los riesgos que 
representa un producto para defender un objetivo legítimo y determinar el procedimiento 
de evaluación de la conformidad de acuerdo al nivel del riesgo.   
 
RESPONSE  
Although the purpose of the question is unclear in rel ation to the designated paragraph, as a general 
answer, in consideration of the purpose of each act, regulated products are comprehensively 
determined based on the factors such as frequency/situation of accidents. Those with particularly 
high risk of dange r require conformity assessment by the registered laboratories.  
 
3.3.7.2 Políticas sobre promoción y comercialización de la innovación  
 
En el párrafo 3.194. En 2018, el Consejo de Ministros adoptó la Estrategia Integrada de Innovación 
y creó el Consejo de Promoción de la Estrategia Integrada de Innovación. La reforma universitaria, 
los programas de I+D tecnológicamente punteros, los ecosis temas de empresas emergentes que se 
apoyan mutuamente y la promoción de la ciencia y la tecnología para lograr los ODS son algunos de 
los elementos más destacados de la Estrategia, que se aplicará horizontalmente en los ministerios 
y los organismos.  
 WT/TPR/M/397/Add.1  
 
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Quest ion 16 
¿Podría el Japón indicar cual es la metodología aplicada para llevar la Estrategia Integrada 
de Innovación a nivel transversal al interior del gobierno, y como lo concretará los 
resultados de cara a los beneficiarios del este tipo de programas?   
 
RESPONSE  
The Government established the Integrated Innovation Strategy Promotion Council chaired by the 
Chief Cabinet Secretary, as an organization to coordinate between ministries and implement the 
Integrated Innovation Strategy.  
 
4.3 Manufacturas  
4.3.3 Medidas en Frontera  
El párrafo 4.152 dice: "Ha disminuido el promedio de los aranceles NMF aplicados a los productos 
manufacturados del 3,5% en el ejercicio económico de  2016 al 3,3% en el ejercicio de  2019 
(definición del SA, cuadro  3.1). Han seguido aplicándose contingentes arancelarios a 62 partidas 
manufactureras (sobre la base del SA), de las cuales 32 correspondían al Capítulo 41 del SA (pieles 
y cueros), 5 al Capítulo 50 (seda) y 25 al Capítulo 64 (calzado). El calzado y las piele s y cueros 
permanecen sujetos a contingentes arancelarios, por lo que reciben la mayor protección arancelaria, 
con un promedio de los aranceles NMF aplicados del 27,3% y el 10,5%, respectivamente, a nivel del 
SA; las crestas arancelarias (EAV) afectaron al  calzado (219,4%)  y a la seda (97,9%). En el calzado 
de cuero, los tipos arancelarios aplicados fuera del contingente en los ejercicios económicos de  2017, 
2018 y 2019 fueron del 30% o de JPY  2.400 o JPY  4.300 por par, si esta cuantía era más alta ; según 
las autoridades, su tasa de utilización media del contingente en los ejercicios económicos de 2017 
y 2018 fue del 66% y del 71,7%, respectivamente.  
Question17. ¿Podría el gobierno de Japón comentar porqué siendo ese país una de las 
economías de mayor desar rollo tecnológico del mundo, el calzado tiene una de las 
mayores protecciones arancelarias?  
 
RESPONSE  
Tariff rates for footwear are determined appropriately, taking the needs of relevant domestic 
manufacturers into careful consideration.  
 
Informe del Gobierno - Documento WT/TPR/G/397  
 
2 POLÍTICA COMERCIAL Y DE INVERSIÓN  
2.2 OMC  
2.2.2 Solución de diferencias  
 
En el párrafo "2.10. Una de las funciones más importantes que desempeña la OMC para mantener 
un sistema multilateral de comercio abie rto y justo es la garantía de la observancia de las normas 
de la Organización a través del mecanismo de solución de diferencias. El Japón ha participado 
activamente en el mecanismo de solución de diferencias de la OMC, como parte o como tercero, 
para resol ver diferencias. El Japón sigue haciendo todo lo posible por reformar el sistema de solución 
de diferencias, incluido el Órgano de Apelación. "  
 
Question  18 
Al respecto nos permitimos consultar, porque Japón no es miembro de la propuesta 
WT/DSB/W/609/Rev.1 4 por medio de la cual más de 120 miembros de la OMC han 
abogado por más de 3 años para lograr salvar el sistema de solución de diferencias, y el 
estado de derecho multilateral.  
 
RESPONSE  
Our priority has always been to achieve a long -lasting solution to the reform of the Appellate Body, 
which would serve a better functioning dispute settlement system and an ultimate goal of securing 
a positive solution to a dispute. Japan stands ready to join the proposal, if the whole picture of the 
reform is  crystallized.  
 WT/TPR/M/397/Add.1  
 
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Question  19 
Nos parece importante saber si Japón considera importante mantener el órgano de 
apelaciones de la OMC, si tiene intenciones de ser parte de esta propuesta; y si no tiene 
esa intención, las razones por las cuales considera que no es plausible acompañarla.  
 
RESPONSE  
See the above response to the Question18 of Colombia.  
 
Otras preguntas no clasificadas:  
 
Question  20 
¿Podría el Japón ampliar la información sobre los avances del marco reglamentario seguro 
para los pagos electrónicos y las criptomonedas?   
 
RESPONSE  
Regarding the e -payments, while there is no sole definition of e -payments, business operators have 
to comply with the relevant regulations subject to its type of business. The regulations include the 
following:  
[E-money]  
Under the  "Payment Services Act", e -money (electronic money) and those are issued for 
prepaid/pre -loaded values fall within the category of prepaid payment instruments.  
Prepaid payment instruments are classified into the following two types:  
(1) those which can be used for purchase of goods and services only by the issuer of prepaid payment 
instruments (prepaid payment instruments for own business); and  
(2) those other than (1) (prepaid payment instruments for third -party business).  
*If the total amount of the outst anding balance of the prepaid payment instruments for one 's own 
business prescribed in (1) exceeds 10 million yen on the record date (on March 31 and September 
30 every year), the issuer shall give notification to the Local Finance Bureau within two months  from 
the record date.  
*The issuer of the prepaid payment instruments for third -party business prescribed in (2) shall 
register with the Local Finance Bureau in advance.  
[Funds Transfer Service]  
When a person/entity engages in exchange transactions equival ent to one million yen or less in the 
course of trade, registration as a funds transfer service provider is required. For exchange 
transactions exceeding one million yen, a license for banking business pursuant to the "Banking Act" 
is required.  
Funds trans fer service providers are subject to certain regulations, particularly those in which they 
are required to preserve not less than 100% of the outstanding amount of funds that are in the 
middle of being transmitted or are pending by means of deposits.  
 
Regarding regulations on crypto assets (cryptocurrencies), the "Payment Services Act" stipulates 
that the following business activities are considered as "virtual currency exchange services," in which 
a service provider is required to register with the FSA:  
(1) Exchange between a virtual currency and a fiat currency, or exchange between a virtual currency 
with another virtual currency;  
(2) Intermediary, brokerage, or agency services for the business activities prescribed in (1); or  
(3) Management of users ' money or virtual currency in connection with the business activities 
prescribed in (1) or (2).  
For user -protection and anti -money laundering, a registered virtual currency exchange service 
provider is under obligations including, but not limited to, the f ollowing:  
-To provide prior explanation and information to service users about the characteristics of a virtual 
currency, such as facts that (i) it is not a fiat currency; (ii) it is not backed by a fiat currency and its 
value may fall below the purchased price; and (iii) its value is not guaranteed;  
-To establish a system risk management framework;  
-To manage the money and virtual currency deposited by service users separately from its own 
money and virtual currency, as well as to undergo an audit by a cer tified public accountant or an 
audit firm, with regard to the state of segregation management; and  
-To perform the obligations under the "Act on Prevention of Transfer of Criminal Proceeds" such as 
customer identification at the time of transaction, prepar ation and keeping of transaction records, 
and reporting of suspicious dealings to the authorities.  WT/TPR/M/397/Add.1  
 
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Whether certain electronic data falls under "Virtual Currency" under the "Payment Services Act" will 
be determined on a case -by-case basis pursuant to Article 2 (5) of the "Payment Services Act." 
Please look at para 4.4 in WT/TPR/G/397 for further details on recent regulatory changes.  
 
Question  21 
¿Podría el Japón indicar la forma en la que asigna responsabilidades a cada eslabón de la 
cadena del comerci o electrónico y como diferencia los actores que hacen parte de la 
misma?   
 
RESPONSE  
Since the question is unclear for Japan to provide an answer, Japan requests elaboration about the 
kind of business sector and the type of transaction considered in the que stion. Also, we would like 
to know more about what is meant by the terms "chain", "linkage", "responsibility", and "actor".  
 
Question  22 
¿Podría Japón informar con mayor detalle cómo funciona en su legislación el cálculo de 
los daños en los procesos de reparación por infracción a los derechos de propiedad 
intelectual, y como las modificaciones en la legislación del cálculo de los daños en los 
procesos en mención, han facilitado en la practica la observancia de los derechos de 
propiedad intele ctual?  
 
RESPONSE  
Details about review of damages calculation method are below.  
(a) For the portion of the profits made by the infringer whose need for compensation was denied on 
the basis that it was beyond the patent rights -holder 's production/sales capa city, etc., the revision 
has enabled the rights -holder to request damages by deeming that it had licensed the portion to the 
infringer.  
(b) The revision clearly states that damages calculation can take into consideration the amount likely 
to have been dete rmined if negotiations were conducted assuming patent rights infringement when 
a court determines the amount equivalent to the amount of money to be received for the 
implementation of the patent invented.  
 
Question  23 
¿Podría Japón informar con mayor detal le cómo ha adaptado su régimen de propiedad 
intelectual al manejo de los procesos relacionados al desarrollo de macrodatos, 
tecnologías de inteligencia artificial (IA) y la Internet de las cosas (IdC)?   
 
RESPONSE  
Japan has been developing rules and systems to promote the proper utilization of data and AI.  
In order to promote utilization of big data and AI, and develop an environment where data can be 
exchanged with confidence, Japan amended the Unfair Competition Prevention Act (UCPA) in 2018. 
The revised Act defines "protected data" as data that satisfies "limited provision", "electromagnetic 
management" and "significant accumulation". Also, the UCPA defines unauthorized acquisition, use 
and disclosure of "protect ed data" as unfair competition and provides civil measures such as claims 
for injunctions and claims for compensation for loss or damages against unauthorized acquisition, 
use, disclosure, etc., of protected data. The definition of "protected data" is as f ollows:  
 
[Article 2 -7 of the UCPA: The term "protected data" as used in this Act means technical or business 
information that is accumulated in a reasonable amount by electronic or magnetic means (meaning 
an electronic form, magnetic form, or any other for m that is impossible to perceive through the 
human senses alone; the same applies in the following paragraph) as information provided to 
specified persons on a regular basis and that is managed (excluding information that is kept secret).]  
 
Innovation driv en by new technologies such as IoT, big data, and AI has been desired in Japan. On 
the other hand, since most of the statutory requirements for limitation in provisions of previous 
Copyright Acts were prescribed specifically to a certain degree, it had bee n pointed out that a new 
way of usage of works which does not fall into the requirement but does not substantially prejudice 
right holders ' interests can be an infringement. In this context, private sectors such as industrial 
companies requested flexible l imitation provisions that apply to new ways of usage regarding new 
technologies in order to promote technological innovations. Therefore, the government decided to 
establish "flexible limitation provisions" at higher level of abstraction.  WT/TPR/M/397/Add.1  
 
- 152 - 
 
Typical actions s ubject to the limitation are envisaged as follows; collecting data necessary for deep 
machine learning in building an AI, analyzing software for cybersecurity, services to search for the 
location of on "information being searched for" (Article 47 -5), and s ervices on data analysis.  
Regarding usage of works needed for innovations through technologies such as IoT, big data, and 
AI, the "flexible limitation provisions" are designed to keep certain amount of flexibility for those 
usages that do not harm the copy right market in order to smooth exploitation of works.  
 
Question  24 
¿Podría Japón informar con mayor detalle cómo tiene planeado desarrollar el marco 
jurídico donde se establezca responsabilidad a los proveedores de servicios de internet 
en los casos en qu e incluyen enlaces a contenidos que infringen los derechos de autor?   
 
RESPONSE  
Although it is not a regulation on Internet service providers but on operators of leech sites and link 
providers, Japan is considering amendment of the Copyright Act so that (1) operating the leech site 
is subject to criminal penalty and (2) providing a link to infringing contents on leech sites is deemed 
to constitute infringement of copyright and thus lead to civil and criminal liabilities. However, 
platform service pro viders which do not directly operate the leech site or provide the leech 
application will be basically outside the scope of this regulation.  
 
  WT/TPR/M/397/Add.1  
 
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PHILIPPINES  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
II. TRADE AND INVESTMENT REGIMES  
 
Para 2.14 (Page  41) 
As set out in the METI 's 2018 White Paper on International Economy and Trade, expanding free 
trade and promoting economic partnerships is central to Japan 's trade policy. It is considered that 
tapping into the Asia -Pacific region 's growth and large ma rkets by creating a global web of economic 
partnerships is essential to the country 's growth. In this regard, a target was set to raise free trade 
agreement (FTA) coverage to 70% by 2018. Japan is aiming for the swift conclusion of Regional 
Comprehensive E conomic Partnership negotiations, through which the FTA ratio will exceed 70%, as 
set out in the Growth Strategy 2019 (Section 1).  
 
Question  1 
What is Japan 's target for tariff and/or ROO liberalization/improvement in its existing bilateral FTAs 
in in view of ongoing general reviews and emerging regional agreements such as RCEP?  
 
RESPONSE  
Japan aims to take the lead in establishing comprehensive, balanced and high -level global rules 
through the conclusion and expansion of high -quality EPAs.  
 
Para 2.15 (Page 41)  
Japan has RTAs in force with: Australia; Brunei Darussalam; Chile; India; Indonesia; Malaysia; 
Mexico; Mongolia; Peru; the P hilippines; Singapore; Switzerland; Thailand; Viet Nam; ASEAN 
Member economies; EU member economies; and participants in the Comprehensive and Progressive 
Agreement for Trans -Pacific Partnership (CPTPP). New developments over the review period were 
the ent ry into force of the CPTPP and the EU -Japan Economic Partnership Agreement (see below). 
Taken together, these economies accounted for 38.7% of Japan's merchandise imports and 34.8% 
of its merchandise exports in 2018. All agreements provide for liberalizati on of goods and services. 
An overview of the services provisions in RTAs is provided in Section 4. Japan's transition period in 
most of its RTAs lasts up to 15 years. However, in the RTAs with the European Union and the CPTPP, 
Japan has a transition period  of 21 years, up to 2038. By the end of these transition periods, between 
6% and 5%, respectively, of tariff lines remain subject to duties, most of which relate to agricultural 
products (Table 2.3). Most of the agreements have been considered in the WTO C ommittee on 
Regional Trade Agreements (CRTA) based upon factual presentations prepared by the WTO 
Secretariat, except for: the EU -Japan EPA, the CPTPP, and the ASEAN -Japan EPA (factual 
presentations for which are currently being prepared).  
 
Question/Clari fication  2 
Generally, FTAs cover a 10 -year period for tariff elimination. What is the rationale for the extended 
timelines under the EPA with EU and the CPTPP?  
 
RESPONSE  
Such timelines are those agreed among the parties through the negotiations.  
 
Para 2.8 (Page 35)  
All laws and regulations are published in the Government Gazette and are made available on the 
Internet; some have been translated into English on a separate site. The main laws and regulations 
relating to trade, and amendments since January 2017 , are presented in Table 2.1.  
 
Para 2.9 (Page 37)  
As indicated in a previous Review, under the 2001 Government Policy Evaluations Act (GPEA), the 
Cabinet Order for Enforcement of the Government Policy Evaluation Act, and the Basic Guidelines 
for Implement ing Policy Evaluations (as revised in 2017), the Cabinet Office and ministries are 
required to evaluate policies before and after implementation, and to publish the results of these 
evaluations. According to the authorities, evaluation reports are publishe d on each ministry's 
website, and they can also all be accessed (in Japanese only) through the Policy Evaluation Portal 
Site. 
 WT/TPR/M/397/Add.1  
 
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Question 3  
Are foreign companies located and operating in Japan considered stakeholders that can participate 
in the public commen t procedures in policy evaluation? We have noted that policy evaluation results 
which can be accessed through the Policy Evaluation Portal Site are not translated into English. Is 
there a plan to share the results in English?  
 
RESPONSE  
It depends on each administrative agency to decide whom and how it asks for opinions. The English 
translations of policy evaluation results are made available based on each administrative agency 's 
decision. However, at this time, the Ministry of Internal Affairs and Communic ations has not decided 
to translate all the results into English.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
 
Para 3.5 and 3.6 (Page 52 -53) 
Use of customs brokers is not mandatory. Online processing of procedures with customs and other 
related agencies is undertaken through the Nippon Automated Cargo and Port Consolidated System 
(NACCS), Japan's single electronic window. The NACCS Center collects usage fees. In 2018, around 
99% of import/export declarations were processed through this System. Ac cording to the 
authorities, no consideration is currently being given to making submission of customs declarations 
through the NACCS compulsory. Importers can pay the assessed customs duty electronically through 
the NACCS, which is connected to a multi -payment network, which links teller institutions 
(government authorities) with private banks. The NACCS also provides various online logistics 
services to the private sector, the scope of which were expanded through the programme 
development and modification of the NACCS in 2017. Importers may submit documents to Customs 
before their cargo's arrival in Japan, so that they can be notified in advance as to whether a customs 
inspection of the cargo will be required. A pre -arrival declaration form must be submitte d to the 
customs office that controls the customs bonded (hozei) area where the cargo is expected to be 
brought in (although this requirement does now not apply to Authorized Economic Operators (AEOs) 
(see below)). Inspection of a shipment under pre -arriva l is conducted before the cargo is transferred 
into a hozei area.  
 
Question 4  
Can exporters/producers/manufacturers access the NACCS? How does this differ from METI's Japan 
Electronic Open Network Trade Control System?  
 
RESPONSE  
They can make customs dec larations through NACCS.  
Japan Electronic Open Network Trade Control System (JETRAS), which handles trade control 
procedures, used to be METI 's independent system but now is integrated into NACCS.  
 
Para 3.16 (Page 54)  
Japan also applies preferential rules of origin under the Generalized System of Preferences (GSP) 
and its various RTAs (Section 2.3 and Section 3.1.4). To benefit from preferential duties, certificates 
of origin need to be provided by authorized institutions in the exporting country or by appr oved 
exporters (in the case of some RTAs). In order to prove the origin of the product being imported, it 
generally has to have been "wholly obtained" or "substantially transformed" (e.g. change of tariff 
classification at the HS four -digit level or 40% of  value -added) in the exporting country. For goods 
not wholly obtained, specific criteria based on change of tariff classification rules, processing rules, 
and value -added rules are applied, on a product -by-product basis.  
 
Question 5  
Japan has been proposin g the parallel implementation of the origin certification and self -declaration 
regimes under its bilateral trade agreement with the Philippines. Given that Japan accepts 
certificates of origin by approved exporters under some of its RTAs, how would Japan a ssess the 
effectiveness and efficiency in the implementation and process of the same? Further, has Japan 
observed any difficulties in the implementation of the said system under its existing bilateral trade 
agreements with the same mechanism?  
 
RESPONSE  
Regarding Self -Declaration by importers, exporters and producers, which is introduced in the Japan -
Australia EPA, the CPTPP and the Japan -EU EPA, traders can reduce the cost to obtain a Certificate WT/TPR/M/397/Add.1  
 
- 155 - 
 
of Origin (CO) from the competent governmental authority, an d the customs authority of the 
importing country can reduce the administrative cost to check the appearances, such as stamps and 
signatures, of the CO. In addition, regarding Self -Declaration by the importer under this system, 
verification procedures will be completed domestically between the customs authority of the 
importing country and importers. Therefore, the competent governmental authority of the exporting 
country and exporters will not be involved in the process, thus reducing their burden. In this way, 
Japan recognizes that Self -Declaration by importers, exporters and producers is very efficient for 
both traders and Customs, so it will contribute to promoting trade. Japan recognizes that it is 
necessary to inform customs officials and traders well a bout the system before introducing it in a 
country. In Japan, we held many explanatory meetings for customs officials and traders and 
educated them carefully before the entry into force of the Japan -Australia EPA, the CPTPP and the 
Japan -EU EPA. On the oth er hand, regarding the Approved Exporter Certification, Japan has also 
introduced it in three EPAs, but the number of approved exporters in Japan is only about less than 
hundred in each EPA, therefore its effectiveness is not so large.  
 
Para 3.73 (Page 74 -75) 
Japan operates International Logistics Hub Industry Development Zones (ILHIDZs) in Naha District 
(former a Free Trade Zone) and Uruma/Okinawa District. The ILHIDZs are special economic zones 
based on the Act on Special Measures for the Promotion and De velopment of Okinawa. Incentives 
offered to domestic and foreign companies include: a 40% deduction from corporation income tax 
for a ten -year period following the establishment of the business (domestic companies only); an 
investment tax credit; and a spe cial depreciation system. With respect to customs duties, a selective 
system applies, and the customs bond permission fee is halved for customs warehouses and customs 
factories, customs display areas, and integrated bonded areas. Various local tax incentiv es are also 
offered. Subsidies of up to 25% are available for land and building expenses, and of up to 50% for 
transportation expenses related to the domestic transportation to and from Okinawa prefecture of 
materials (targeted at manufacturing companies).  Additionally, low -interest, long term loans are 
offered to companies establishing in the ILHIDZs by the Okinawa Development Finance Corporation.  
 
Question 6  
The Philippines would appreciate if Japan can clarify the transport subsidies of up to 50% of expe nses 
offered to domestic and foreign companies. Do the beneficiaries (manufacturing companies) produce 
agricultural products intended for local and international distribution?  
 
RESPONSE  
This subsidy is also available to manufacturing companies that produce  agricultural products. 
Applicable manufacturing companies of the subsidy are not conditioned by what they produce but 
where they produce, because one of the main purposes of this subsidy is to accelerate concentration 
and establishment of manufacturing co mpanies within the former Special Free Trade Zone, a part of 
Uruma District.  
Note: The subsidy will be terminated at the end of March 2020.  
 
Para 3.95 (Page 80)  
As set out in government budgets over the period FY2017 -19, various new support programmes 
were introduced, namely: support for SME business succession; establishment of bases for 
revitalizing local economies; transition to the production phase towards post -"K-computer"; 
promotion of capital investment by local core companies; expansi on of measures to assist business 
succession; support to information technology innovation and artificial intelligence system co -
development; support for introducing leading -edge energy -saving equipment; grants to advance 
regional reinvigoration; and devel opment and demonstration of smart agriculture technology. The 
authorities indicated that, while the type of support is mainly subsidies, these do not constitute 
"subsidies" and are not "specific" under the WTO Subsidies and Countervailing Measures Agreemen t. 
 
Question 7  
Can Japan provide further information on its "support for SME business succession" and the 
manufacturing sectors that are targeted.  
 
RESPONSE  
In Japan, where the SME owners are aging, succession of SME business is an urgent issue. Ministry 
of Economy, Trade and Industry provides comprehensive support by taking the following measures.  
In particular, (1) "Business succession tax system" to reduce the tax burden upon business 
succession to substantially zero, (2) Conduct business succession diag nosis and dispatch experts WT/TPR/M/397/Add.1  
 
- 156 - 
 
through the Business Succession Network in which business and industry associations and financial 
institutions participate, (3) Matching support provided by the Business Transfer Center located in 
47 prefectures throughout Japan,  (4) Support for capital investment, etc. related to successor's new 
initiatives by "Business Succession Subsidy".  
*The above -mentioned support measures are being implemented for all businesses, not limited to 
fields.  
 
Para.3.141 (Page 90)  
In March 2011, soon after the accident at the Tokyo Electric Power Co. (TEPCO) Fukushima Daiichi 
Nuclear Power Station, Japan started decontamination of crop land and fruit trees and introduced 
controls over feeds and agricultural inputs. It also introduced a risk -based food monitoring scheme 
which is based on Codex standards for radioactive caesium in food but, apparently in practice, is 
even more stringently applied. Enforced by the national laws, food products that exceed this 
stringent maximum level are recalled  and disposed of. As reported by the authorities, due to these 
measures, food products exceeding the Japanese maximum level drastically decreased after the 
accident, and detection rates have remained low and stable for many years. They further indicated 
that the purpose of sampling is to detect contamination or to remove restrictions; most detections 
were limited to the wild harvest monitored at areas where distribution is already restricted. The 
authorities reported that, since early 2013 (the last case in  April), none of the farm products and 
fishery harvests have exceeded the Codex guideline level defined as safe for human consumption, 
and even the wild edible fungi, fern sprout and leaf buds have not exceeded the level for food for 
small -scale consumptio n. The only harvests which still exceed the level are certain game meat, 
although the detection rate is very low, and those detected are neither distributed nor exported.  
 
Question 8  
What are the additional risk -based food monitoring schemes stringently ap plied by JP that goes 
beyond the Codex standards?  
 
RESPONSE  
As section 4.14 of Trade Policy Review Report submitted by Japan on 22 January 2020, Japan's 
national laws mandate that food products which exceed these stringent maximum levels be recalled 
and di sposed of, and if exceeding cases are observed in a particular product over an area, their 
distributions be restricted on an area basis. Japan's regulatory framework thus ensures that food 
products exceeding the maximum level are neither distributed in dom estic market nor exported to 
third countries. The latest monitoring scheme "Concepts of Inspection Planning and the 
Establishment and Cancellation of Items and Areas to which Restriction on Distribution and/or 
Consumption of Foods concerned Applies (Develo ped by the Nuclear Emergency Response 
Headquarters)" is available on the URL below,  
https://www.mhlw.go.jp/english/topics/2011eq/dl/food_revision_22March_2019.pdf  
 
Para 3.163 (Page 99)  
During the review period, the basic rules on government procurement rem ained virtually unchanged. 
With regard to the procurement procedures, the central Government, local governments and public 
corporations follow their respective procedures established by different laws and regulations due to 
their autonomous status. For the  central Government, the main laws and regulations include: the 
Accounts Law of 1947 (last amended in 2017, to align some wordings in accordance with the revised 
Civil Code); the Cabinet Order Concerning the Budget, Auditing and Accounting of 1947 (amended  
to change some article numbers in 2017 in accordance with the revision of the Gas Business Act, 
and in 2018 in accordance with the revision of the Civil Code); the Special Provisions for the Cabinet 
Order concerning the Budget, Auditing and Accounting of 1946; and the Regulations on the 
Management of Contract Administration (Ministry of Finance Ordinance No. 52 of 1962). The legal 
framework for local entities includes: the Local Autonomy Law of 1947; and the Ordinance for 
Enforcement of the Local Autonomy Law of 1947. Procurement procedures followed by public 
corporations are set out in their accounting or internal statutes. Ministers who oversee public 
corporations are responsible for ensuring the consistency of their procurement activities with the 
rules.  According to the authorities, there are no differences among the procedures applying to 
different categories of entities.  
 
Question 9  
Where can the official English translation of the abovementioned laws and regulations be obtained?  
 WT/TPR/M/397/Add.1  
 
- 157 - 
 
RESPONSE  
Please refe r to the following website:  
The Accounts Law of 1947,  
http://www.japaneselawtranslation.go.jp/law/detail/?id=2044&vm=&re= . 
The Cabinet Order concerning the Budget, Auditing and Accounting of 1946,  
http://www.japaneselawtranslation.go.jp/law/detail/?re=01&kn%5b%5d=%E3%82%88&ky=%E6
%A0%AA%E5%BC%8F&page=2 . 
Japan does not have official English translation for the other laws and regulations.  
 
Question 10  
Are the different procurement laws and reg ulations in Japan harmonized given the representations 
that there are no differences among the procedures applied to different categories of entities?  
 
RESPONSE  
There are no separate rules and regulations applied to different categories of entities. Howeve r, the 
consistency of terms of the legislation and implementation is maintained.  
 
Question 11  
Is Japanese procurement rules considered principle based, such that entities are allowed to issue 
their own rules consistent with the procurement law? Or is there  a governing body or board that 
issues the rules or if not, monitors compliance by the entities?  
 
RESPONSE  
Japanese procurement rules are implemented in a principle -based manner by each government 
agency.  
 
Para 3.165 (Page 100)  
Many of the EPAs signed between Japan and its trade partners contain chapters on government 
procurement (Section 2.3.2). During the review period, two more agreements with government 
procurement chapters were signed and subsequently came into force, namely  the CPTPP (or TPP11) 
and the Japan -EU EPA. Japan's government procurement commitments under the CPTPP are roughly 
the same as its GPA commitments. While its undertakings under the Japan -EU EPA are built on its 
GPA commitments, the coverage of local govern ment entities under this EPA is further expanded to 
local independent administrative agencies.  
 
Question 12  
How is the expansion of the coverage of local government entities to local independent 
administrative agencies under the said EPA?  
 
RESPONSE  
In addi tion to procurements by the entities listed in Japan's Annex 2 to Appendix I to the GPA, 
Chapter 10 of the Japan -EU EPA applies to procurements of goods and services specified in Japan's 
Annexes 4 to 6 to Appendix I to the GPA by the local independent admi nistrative agencies, and the 
thresholds for the procurement are as those set out in Japan's Annex 2 to Appendix I to the GPA. 
Here, "local independent administrative agency" means a local independent administrative agency 
which is covered by the Local Inde pendent Administrative Agency Act (Law No. 118 of 2003), and 
established by a single entity listed in Japan's Annex 2 to Appendix I to the GPA or Kumamoto -shi 
under the Act.  
 
Question 13  
Other than the abovementioned, are there EPAs entered into by Japan p ursuant to its GPA 
commitments?  
 
RESPONSE  
There are six EPAs which provide a chapter for government procurement other than TPP11 and the 
Japan -EU EPA, namely, Japan -Chile, Japan -Switzerland, Japan -Peru, Japan -Australia, Japan -
Singapore and Japan -Mexico.  
 
Para 3.167 (Page 101)  
Open tendering, selective tendering and single tendering remain the main procurement methods, 
and follow the GPA thresholds for contracts under its coverage. The conditions and thresholds for 
selective tendering and sin gle tendering in the central Government outside of the coverage of GPA WT/TPR/M/397/Add.1  
 
- 158 - 
 
is stipulated in Cabinet Order on Budgets, the Settlement of Accounts, and Accounting. The 
conditions and thresholds for single tendering for local government procurement outside of the  
coverage of GPA is stipulated in the Ordinance for Enforcement of the Local Autonomy Law of 1947. 
During the review period, the threshold values for each method remained unchanged. Among the 
different procurement methods, open tendering is the basic proce dure, and represents most of the 
central government procurement contracts and value (Table 3.20). Under open tendering, qualified 
suppliers are invited, through tender notices published in the official gazette "Kanpo", to participate 
in the tendering proce dures. Under selective tendering, permanent lists of qualified suppliers are 
established by procuring entities. The procuring entity invites, from among the qualified suppliers, 
those considered capable of implementing the contract to participate in the te ndering procedures. 
Interested suppliers need to apply to the procuring entity concerned for qualification. Efforts to 
achieve unified qualification across different central government entities have been made since 
2001. In order to increase opportunities to participate in tender, suppliers are advised by the relevant 
authority to apply for qualification in advance. The single tendering corresponds to "limited 
tendering" in the GPA, and constitutes the second most important procurement method in terms of 
number of contracts and procurement value (Table 3.20). In 2017, 1,103 GPA -covered contracts, 
representing a value of more than SDR 2 billion, were awarded through single tendering, accounting 
for about one seventh of the contracts, or 18% of the total procu rement value. The breakdown of 
contracts by procuring method at the central government and IAA (Section 3.3.5) level are contained 
in Table 3.20. Japan maintains special procurement procedures for individual sectors, such as 
supercomputers (since 16 July 1 987), non -R&D satellites (since 14 June 1990), computer products 
and services (since 20 January 1992), telecommunications products and services and medical 
technology products and services (since 28 March 1994). The procedures are considered as 
voluntary m easures to promote procurement based on non -discriminatory, transparent, fair and 
open competition. The use of overall -greatest -value method in tender evaluation is encouraged or 
obligatory under these measures. The measures are contained in the Operationa l Guideline on 
Procedures for Government Procurement etc. (Understanding among related ministries and agencies 
concerned in procurement, 31 March 2014).  
 
Question 14  
How is the overall -greatest -value method applied in tender evaluation?  
 
RESPONSE  
The overa ll-greatest -value evaluation method is applied when it is difficult to determine the 
successful bidder by the value.  
 
Question 15  
When is the use of overall -greatest -value method in tender evaluation encouraged and when is it 
obligatory? Does it apply to a ll types of procurement?  
 
RESPONSE  
The overall -greatest -value evaluation method is applied when the bidder 's properties, including 
special knowledge, technique, and originality, make a considerable difference in the result of the 
business compared to the differences in bidding price.  
 
Para 3.171 (Page 104)  
Government procurement based on the Act on Promoting Green Procurement is implemented 
through the Basic Policy for Promotion of Procurement of Eco -Friendly Goods and Services, decided 
by the Cabinet in F ebruary 2001; the Policy was last revised in February 2019. It designates goods 
and services, including those related to public construction works, which should be purchased and 
utilized by government entities and IAAs, etc. It also sets out evaluation cri teria that procuring 
entities should use in bid assessment for purchasing designated products. The Policy provides that 
green procurement should not be an unnecessary impediment to international trade, and should 
comply with the GPA rules. It is revised as  necessary. Since 2016, three revisions were made to it. 
These changes were notified to the WTO Committee on Government Procurement. After years of 
addition and adjustment, the current number of designated products has grown to 21 fields covering 
276 items , from stationery to electronic appliances and vehicles, and from building materials to 
transportation and building cleaning services.  
 
Question 16  
How is Green Procurement implemented? Is this a mandatory component or requirement?  
 WT/TPR/M/397/Add.1  
 
- 159 - 
 
RESPONSE  
The Governmen t of Japan provides for the basic policy on promoting green procurement. The basic 
policy designates the types of eco -friendly goods and services which should be purchased and the 
evaluation criteria. Based on the basic policy, each organization makes the procurement policy which 
stipulates the procurement target of eco -friendly goods and services every year while giving 
consideration to the proper use of the budget, and procures these based on each procurement policy. 
Green procurement is mandatory for the  government agencies.  
 
Question 17  
In furtherance of promoting Green Procurement, what is the evaluation criteria that procuring 
entities should use in bid assessment for purchasing designated products?  
 
RESPONSE  
The evaluation criteria are defined in the basic policy, and for the details, please refer to the following 
website: http://www.env.go.jp/en/laws/policy/green/index.html . 
Question 18: Does the evaluation consider "green" technical specifications only or is a 
certification/accreditation for such products required?  
 
RESPONSE  
The Government of Japan considers "green" techni cal specifications only. A certification or 
accreditation for such products is not required.  
 
IV. TRADE POLICIES BY SECTOR  
 
Para 4.8 (Page 128)  
As reported in Japan 's previous Review, in May 2016, the MAFF developed the Strategy to Promote 
Exports of Agric ulture, Forestry, Fisheries Products and Foods, under which governmental support 
includes: information to farmers on market trends; matching of producers and exporters; and 
participation in food fairs. In June 2016, the Cabined adopted the Japan Revitaliza tion Strategy 2016 
(Section 2), which sets the export target for major agriculture, forestry, and fisheries products and 
foods at more than JPY 1 trillion by 2019; according to the authorities, by end -2018, the value of 
exports of these products reached JP Y 906.8 billion.  
 
Question 19  
Referring to the Strategy to Promote Exports of Agriculture, Forestry, Fisheries Products and Foods, 
what were the specific modes utilized by Japan to share information with farmers on market trends? 
Further, to what extent wa s ICT utilized for market information sharing and was there any capacity 
building component for the farmers in this mode?   
 
RESPONSE  
The MAFF has specifically provided the farmers, fishermen, foresters and food manufactures who 
intend to export their produ cts overseas with support such as export diagnosis and market 
information through the meetup and the community website.  
 
Para 4.10 (Page 129)  
A Food Industry Strategy was issued in April 2018, which was developed by the Government and 
various agricultural stakeholders. It identifies the challenges and issues/changing trends facing the 
food industry along the food chain, as well as its potential strengths. It incorporates proposals and 
an Action Plan.  
 
Question 20  
What are the challenges identified with resp ect to trade? What have Japan done so far to address 
these challenges on trade for the food industry?  
 
RESPONSE  
There are challenges for developing overseas markets, such as "lack of information on foreign laws 
and business customs" and "securing and devel oping human resources which could be assigned to 
expand overseas." Japan takes the following measures: (1) Investigation of the needs of overseas 
markets and catch up demand, (2) Strengthening of the consultation system for the food industry 
to develop sal es channels, support for business exhibitions, (3) Improvement of logistics support 
such as cold chain development for overseas transport, (4) Negotiations to ease import restrictions 
at export destinations.  WT/TPR/M/397/Add.1  
 
- 160 - 
 
Para 4.29  
At the prefectural level, government -supported institutions are charged with promoting farmland 
consolidation. These prefectural institutions rent farmland, improve infrastructure (if necessary), 
and lease the land to core farmers. They had a total budget of JPY 22 billion  in 2019. Farmers that 
increase farm size continue to be eligible to receive payments of up to JPY 10,000 for each additional 
0.1 ha; payments of up to JPY 700,000 per household are available for the purpose of leasing land 
to farmers.  
 
Question 21  
One of the Japan 's objectives to increase incomes in agriculture and rural areas in 10 years is the 
reduction of production cost of farming activities; however, the fragmented and dispersed farmlands 
in Japan could pose some challenges. Current i nterventions are focused on providing incentives 
through payments for farmers who are able to continue increasing their farm size and households 
who are able to lease their land to farmers. In this regard, would Japan provide information on 
alternative app roaches or programs to consolidate farmlands (e.g., organizing farmers to farm 
groups or cooperatives) and incentives given to those who participate in this alternative program, if 
any? 
 
RESPONSE  
In order to advance the farmland consolidation, Japan has en couraged and supported transactions 
via Farmland Banks and promoted development of Farmers and Farmland Plans based on thorough 
discussions for future farmland use in regions. "Core Farmers", laid down in the plan as those 
engaged in sustainable management , are eligible for the support such as the introduction of 
agricultural machines or facilities and funds for new farmers.  
 
Para 4.40 (Page 139)  
The Government's policy on rice evolved over the review period, with the abolition of the Direct 
Payment for Ric e and the administrative allocation of rice production volume targets, in 2018. The 
payments made to rice farmers were linked to rice production volume targets assigned to each 
prefecture and each individual farmer based on MAFF estimates of supply and dem and. As indicated 
by an external source, this policy change is expected to raise the competitiveness of the rice farm 
sector, by enabling farmers to plan their production, unrestricted by volume targets; the 
Government's role is now refocused on providing market information.  
 
Question 22  
Are there future plans to consider applying the same policy changes on other agricultural products 
with existing direct payment programmes?  
 
RESPONSE  
Since Japan had "blue box" subsidies only for rice (Direct Payments unde r Production -Limiting 
Programmes), there are no future plans envisaged for other products.  
 
Para 4.46  
The Basic Policy for Fruit Industry Promotion of 2010 was last revised in 2015. The next revision to 
it will be issued in 2020. The objectives of the Poli cy include an emphasis on increasing domestic 
production, consumption, and processing of domestically produced fruits. Under the revised Policy, 
financial assistance is to be increased for converting production to more valuable fruits (defined as 
profitabl e fruits or highly valued varieties) and for on -farm improvements. The budget allocated to 
this assistance was JPY 5.6 billion in FY2019. Assistance to farmers that convert their production to 
more valuable fruits (e.g. from less valuable oranges to more v aluable peaches/oranges/mangoes) 
remains JPY 230,000 per 10 are, while assistance to farmers that convert their production to more 
valuable deciduous fruit tree (e.g. apples) is JPY 170,000 per 10 are. Under the Policy, payments 
are made to support the pla nned fruits production programme, and processing of fresh fruits if the 
market price declines or is foreseen to decline. For vegetables, farmer price support payments are 
made based on the quantity of production of specific vegetables under contract, calcu lated as the 
difference between 90% of the average of wholesale market price of the past six years and the 
average of wholesale market prices for each vegetable season. Since the last Review, there was no 
change in the price control support scheme.  
 
Questi ons 23  
What were the challenges encountered by Japan in enticing their farmers to convert into the 
production of "more valuable fruits/more valuable deciduous fruit tree" amidst the provision of WT/TPR/M/397/Add.1  
 
- 161 - 
 
incentives such as direct payments and financial assistance? Further, how did Japan address these 
challenges? Would Japan provide more information on its process of formulating the Fruits 
Production Restructuring Plan and Plan of Fruit Industry Promotion?  
 
RESPONSE  
The challenges include the slow shift to better var ieties because the improved income takes place 
only after a certain "non -income" period after the replanting fruits are perennial crops. In order to 
address the issue, Japan encourages the shift by providing financial support during the "non -income" 
period . Also, as fruits are produced in unfavored condition areas such as steep lands, it is not easy 
to improve labour productivity, which is one of the challenges.  
Regarding the planning process, the national government updates the Basic Policy of Fruit Produ ction 
Promotion once every five years. Based on the principle, prefectural governments develop Plans of 
Fruit Industry Promotion, and accordingly each local production region establishes Fruits Production 
Restructuring Plans.  
 
Question 24  
Is there a distin ction between the trade regime on the importation of fruits in general, and tropical 
fruits?  
 
RESPONSE  
There is no distinction between the trade regime on the importation of fruits in general and tropical 
fruits.  
Japan has the schemes of Generalized System of Preference and LDC Preference, which have special 
tariff rates to address developing members ' interests. Through these, lower rates are applied for 
certain products, including bananas, mangoes and papayas. The specific rates are available at the 
link below (Japan 's Tariff Schedule, HS code Chapter 8: Edible fruit and nuts; peel of citrus fruit or 
melons): https://www.customs.go.jp/english/tariff/2020_1/data/e_08.htm . 
 
Para 4.153 (Page 164)  
During the review period, domestic support continued under several programmes (Sect ion 3.3.1). 
The sector's non -industry -specific schemes included measures under the Subsidy Program for Global 
Innovation Centers, tax incentives for strengthening local business facilities, incentives regarding 
special zones, incentives based on the 2013 I ndustrial Competitiveness Enhancement Act, incentives 
under the 2018 Act on Special Measures for Productivity Improvement, the tax incentive system 
based on the Act on Strengthening a Framework for Regional Growth and Development by Promoting 
Regional Econ omy Advancement Projects, tax incentives for R&D, the tax incentive for wage and 
productivity improvement, incentives related to disaster recovery, and incentives of local 
governments for foreign -affiliated companies (e.g. subsidization of rent expenses, a nd 
incorporation/registration and other fees). According to JETRO information, the sole activity -specific 
incentive is the Connected Industries Taxation System, involving special depreciation or tax 
deductions for software, apparatuses, equipment, machiner y, and devices. Other activity -specific 
support includes that under the fuel -cell vehicles initiative (Section 3.3.1.2). According to the 2017 
WTO notification to the Committee on Subsidies and Countervailing Measures covering FY2015/16, 
the activity -specific support schemes for manufacturing included the bekko (tortoiseshell) and ivory 
crafts industries, the leather and leather goods industries, and the manufacture of traditional craft 
products. According to its latest WTO notification covering the period 2016/17, activity -specific 
support schemes for manufacturing included leather and leather goods, traditional craft products, 
R&D for care robot equipment, and sochu manufacture are in place either at central or local 
government level (Table 4.20).  
 
Questio n 25 
Japan provides various forms of tax incentives and subsidy programs as domestic support for its 
manufacturing sector. What measures or guidelines does Japan have in place to ensure compliance 
with the relevant WTO rules and regulations on subsidies?  
 
RESPONSE  
There is a prior consultation system that the subsidizing authority can consult with the WTO/EPA 
office of the Ministry of Economy, Trade and Industry whether a proposing tax or subsidy program 
is consistent with relevant WTO and EPA rules.  
 WT/TPR/M/397/Add.1  
 
- 162 - 
 
Para 4.168 (Page 169)  
The Government is developing a regulatory framework for e -payment services, in order to protect 
consumers and boost innovation. The Banking Act was amended on 26 May 2017 to add a new 
chapter on electronic payment services (Chapter VII -5). This Chapter created a registration 
procedure office to operate such services. Foreign corporations and foreign individuals can register 
but must designate an agent in Japan. The definition of Electronic Settlement Intermediary Services 
Providers (ESISPs)  encompasses both Payment Initiation Services Providers and Account 
Information Service Providers, and includes provisions regulating their business conduct. In 
particular, if such a provider seeks to be connected with a banking IT system to start fund 
remittances or gain access to information related to deposit accounts, it must enter into an 
agreement with said bank regarding matters such as security of information and the allocation of 
responsibilities in case of damages regarding the customer. Banks mus t publicly disclose to the 
ESISPs their standards of connectivity by March 2018, and try to establish a voluntary open 
Application Programming Interface system by 2020  
 
Question 26  
What is the legal regime on commercial presence in Japan for representative offices for purposes of 
cash remittances?  
 
RESPONSE  
If a person, who does not have banking license under the Banking Act, wants to carry out exchange 
transactions in the course of trade, the person must be registered as "Funds Transfer Servi ce 
Provider" under the Payment Services Act. As a registration requirement, the person must be a stock 
company or Foreign Funds Transfer Service Provider (*) that has a business office (not 
representative office) in Japan. For details of the registration, please look at Articles 38, 39 and 40 
of the Act (tentative translation is available at  
http://www.japaneselawtranslation.go.jp/law/detail/?id=3078&vm=04&re=01 )  
*"For eign Funds Transfer Service Provider" as used in the Act means a person who carries out 
exchange transactions in the course of trade in a foreign state under the same kind of registration 
as the one referred to in Article 37 pursuant to the provisions of l aws and regulations of that foreign 
state equivalent to this Act (including permission or other administrative dispositions similar to that 
registration).  
 
Para 4.176 (Page 170)  
The commitments undertaken by Japan during the period under review regarding financial services 
in the CPTPP and in the EU -Japan EPA include some elements which differ from those already 
undertaken in its previous FTAs. The CPTPP contains GATS plus commitm ents on insurance 
intermediation, such as brokerage and agency, on securities -related transactions with financial 
institutions and other entities in Japan, and on sales of a beneficiary certificate of an investment 
trust or an investment security, through securities firms in Japan. The EPA with EU contains specific 
definitions, exceptions and disciplines on new financial services, self -regulating organizations, 
payment and clearing systems, transparency, and rules on insurance services provided by postal 
entities.  
 
Question 27  
What is the legal regime on the cross -border issuances of securities in Japan financial markets and 
on cross -border supply of insurance and pre -need policies/products to Japan?  
 
RESPONSE  
1. Cross -border issuance of securities  
Issuers l ocated outside of Japan can issue the securities such as shares through Type I Financial 
Instruments Business Operator (securities companies) registered under the Financial Instruments 
and Exchange Act.  
2. Cross -border supply of insurance  
Japan has maintai ned the position as "unbound" for Insurance and Insurance -Related Services 
except for obligations stipulated under paragraphs B3 and B4 of the "GATS Understanding on 
Commitment in Financial Services."  
For your information, Art. 185 of the Insurance Busine ss Act provides that a foreign insurer may 
transact insurance business only in cases where it establishes a branch office, etc. in Japan and 
obtains a license, subject to exceptions outlined above.  
 WT/TPR/M/397/Add.1  
 
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PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
1. TR ADE AND INVESTMENT POLICY  
Para. 2.3 (Page 4)  
 
Japan is currently a party to eighteen EPAs. Japan is aiming for the swift conclusion of RCEP 
negotiations among 16 countries, through which the FTA ratio will exceed 70%, as set out in the 
Growth Strategy 2019 . Japan has also promoted its regional and bilateral trade policies as a means 
of complementing the multilateral trading system under the WTO and Japan believes that these 
agreements will serve as building blocks to achieve higher trade liberalization at t he multilateral 
level.  
 
Question 28  
What is Growth Strategy 2019? What policy directions are defined in this Strategy in relation to the 
Economic Partnership Agreements (EPAs) and the Free Trade Agreements (FTA) of Japan?  
 
RESPONSE  
Japan issued the "Action  Plan of the Growth Strategy" and the "Follow -up on the Growth Strategy" 
last June. These documents are referred to as the "Growth Strategy 2019". In regard to EPA/FTA, 
the "Follow -up on the Growth Strategy" states that "Japan, as flag -bearer of free trade , aims to take 
the lead in establishing comprehensive, balanced and high -level global rules through the conclusion 
and expansion of high -quality EPAs", and sets out a KPI to "aim to promptly conclude RCEP 
negotiations, upon which the FTA ratio will exceed 70%".  
 
Para 2.6 (Page5)  
As the holder of the G20 Presidency in 2019, Japan hosted the G20 Osaka Summit and led the 
discussion on trade issues. The G20 leaders confirmed to strive to realize a free, fair, non -
discriminatory, transparent, predictable and stable trade and investment environment, and to keep 
their markets open. They also reaffirmed their support for the necessary reform of the WTO to 
improve its functions.  
 
Question 29  
What did the G20 accomplished or contributed in terms of trade and investment policies and 
development during Japan 's G20 Presidency in 2019?  
 
RESPONSE  
There were several key accomplishments that came out of Japan 's G20 Presidency in 2019. The G20 
Trade and Digital Economy Ministers adopted a statement rich in substance with a view to realizing 
free, fair, and non -discriminatory trade. Ministers confirmed their willingness to work constructively 
with other WTO Membe rs to undertake necessary WTO reform with a sense of urgency. Ministers 
also agreed that action is necessary regarding the functioning of the dispute settlement system 
consistent with the rules as negotiated by the WTO Members. G20 Leaders confirmed fundam ental 
principles of free trade as a free, fair, non -discriminatory, and open market and level playing field. 
And G20 Leaders reaffirmed their support for the necessary reform of the WTO to improve its 
functions. Furthermore, the Osaka Track was launched in  June 2019 as a process to promote 
international policy discussions on digital economy, inter alia, international rule -making on trade -
related aspects of electronic commerce at the WTO.  
 
Para 2.34 (Page 11)  
In March 2015, under the leadership of the Prime  Minister, the Council for Promotion of Foreign 
Direct Investment in Japan adopted the "Five Promises for Attracting Foreign Businesses to Japan" 
as important items to be addressed going forward. In addition, in May 2016, this council adopted 
the "Policy P ackage for Promoting Foreign Direct Investment into Japan to Make Japan a Global Hub" 
to promote more FDI to make Japan an international trade and investment hub.  
 
Question 30  
Japan adopted its policy package for FDI promotion in May 2016, during which Jap an's inbound FDI 
flows peaked at USD 19.4 billion. However, in the succeeding years, Japan 's inbound FDI dropped 
to USD 11 and 9.9 billion for 2017 and 2018, respectively. Was Japan able to identify the factors 
leading to the substantial decline in investm ents, and if so, what measures were implemented to 
address or mitigate the same?  
 WT/TPR/M/397/Add.1  
 
- 164 - 
 
RESPONSE  
Japan has not identified specific factors of such decline in investments so far.  
 
  WT/TPR/M/397/Add.1  
 
- 165 - 
 
CHINESE TAIPEI  
PART I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S /397 ) 
1 ECONOMIC ENVIRONMENT  
1.3 DEVELOPMENTS IN TRADE AND INVESTMENT  
1.3.2 TRENDS AND PATTERNS IN FOREIGN DIRECT INVESTMENT (FDI)  
 
Page 29 (Para 1.26)  
FDI is not only an additional source of capital. It is also considered to bring with its entrepreneurship, 
management skills and, especially, new technology, which contribute to improved multi -factor 
productivity. Japan's inbound FDI stocks as a share of GDP (4% in 2016) are the lowest in the OECD, 
due to tradition -related challenges in certain areas (e.g. mergers and acquisitions, corporate 
governance, and labour market rigidities) that are being addressed by the authorities. FDI inflows 
peaked at USD 19.4 bi llion in 2016 (Table 1.5). During the review period, inflows were largely 
concentrated in the manufacturing of electric machinery, transportation equipment, and chemicals 
and pharmaceuticals, as well as in services, mainly finance and insurance (Tables 1.4  and 1.5); in 
2018, they originated mainly in the United States, the Cayman Islands, the European Union and the 
Republic of Korea. The FDI inbound stock continued to rise steadily and was largely held by European 
Union investors (Table 1.7). Despite a decl ine in its share, the United States remains the second FDI 
stock -holder, followed by Singapore. Within the European Union, in 2017, the largest single stock 
holder remained the Netherlands, where around 80% of investment was in electrical machinery, 
follow ed by France, where over 70% of investment was in transportation equipment; around 80% 
of the stock from North America was in the non -manufacturing sector, with the majority in the 
finance and insurance industry.  
 
Question 1 
The ratio of Japan's inbound FD I stocks to GDP is the lowest among OECD members, due to 
tradition -related challenges in certain areas (e.g. mergers and acquisitions, corporate governance, 
and labour market rigidities). Please provide a more detailed explanation. What measures has 
Japan taken to tackle this issue?  
 
RESPONSE  
The Annual Report on the Japanese Economy and Public Finance 2011 pointed out that Japanese 
companies ' hesitation toward foreign companies was one of the reasons for deterring direct 
investment in Japan. In order to change the tendency of Japanese companies to hesitate to 
collaborate or work with foreign companies only on the ground that they are foreign c ompanies, and 
to promote better understanding of doing business with foreign companies, Japan has made efforts 
such as dissemination of successful cases and promotion of mutual understanding among various 
stakeholders.  
(For your reference)  
Website of Coun cil for Promotion of Foreign Direct Investment in Japan.  
http://www.invest -japan.go.jp/documents/en_index.html . 
 
2 TRADE AND INVESTMENT REGIMES  
2.2 TRADE POLICY FORMULATION AND OBJECTIVE S 
 
Page 35 (Para 2.6) 
The institutional framework for trade policy -making has not changed since Japan's previous Review. 
Overall coordination of trade policies rests with the Cabinet. The Ministry of Economy Trade and 
Industry (METI) and the Ministry of Foreign Affairs (MOFA) continue to formulate and implement 
trade policy. Several other ministries and official agencies have trade policy related responsibilities 
(Sections 3 and 4). The mandates of various of the legislature's (Diet) committee s include trade (i.e. 
committees on economy trade and industry; financial affairs; forestry and fisheries; and 
fundamental national policies). As indicated in a previous Review, ministries and agencies receive 
inputs from the private sector concerning matt ers related to trade policies, through, inter alia, 
exchanging opinions with private entities and receiving petitions from them.  
 
Question 2  
How does the communication mechanism on trade policies between the public and private sectors 
function when the pri vate sectors submit opinions, requests or petitions? Is this practice of 
exchanges between government and private sectors conducted periodically or when the need arises? 
Please elaborate.  WT/TPR/M/397/Add.1  
 
- 166 - 
 
RESPONSE  
The Government of Japan informs its trade policy through cl ose communication with the public at 
various occasions including the Diet discussions and other explanatory sessions.  
 
2.3 TRADE AGREEMENTS AND ARRANGEMENTS  
2.3.2 REGIONAL AND PREFERENTIAL AGREEMENTS  
2.3.2.1 REGIONAL TRADE AGREEMENTS (RTAS)  
 
Page 41 (Para 2.15) 
Japan has RTAs in force with: Australia; Brunei Darussalam; Chile; India; Indonesia; Malaysia; 
Mexico; Mongolia; Peru; the Philippines; Singapore; Switzerland; Thailand; Viet Nam; ASEAN 
Member economies ; EU member economies ; and participant s in the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership (CPTPP). New developments over the review 
period were the entry into force of the CPTPP and the EU -Japan Economic Partnership Agreement 
(see below). Taken together, these econom ies accounted for 38.7% of Japan's merchandise imports 
and 34.8% of its merchandise exports in 2018.  
 
Question 3  
Could Japan elaborate on the impacts that the new regional trade agreements that Japan has 
concluded since its last review period have had on c hanges in its imports and exports?  
 
RESPONSE  
After the last review in March 2017, Japan has concluded the TPP11 Agreement and Japan -EU EPA. 
As for the trade trends after the entry into force of these agreements, for example, during the 1 -
year period, after  the entry into force of TPP11, export of dairy products towards countries in which 
TPP11 has entered into force increased by more than 20%. During the 11 -month period after the 
entry into force of Japan -EU EPA, beef export increased by more than 30%, as w ell as import of 
wine rose by 11 % in relation with the EU (The numbers above are in comparison with those from 
the same period of the previous year.).  
 
2.3.2.1.1 CPTPP  
 
Page 43 (Para 2.19)  
CPTPP signatories are: Australia, Brunei Darussalam, Canada, Chile , Japan, Malaysia, Mexico, New 
Zealand, Peru, Singapore, and Viet Nam. As at July 2019, the CPTPP had not yet entered into force 
for: Brunei Darussalam, Chile, Malaysia, and Peru.  
 
Question 4  
Could Japan explain the criteria for other countries to join the CPTPP?  
 
RESPONSE  
TPP11 establishes free and fair rules of the 21st century, and creates a single massive economic 
area consisting of a population of 500 million people, GDP of 10 trillion US  dollars, and total trade 
of 5 trillion US dollars. It is the common aspiration of the TPP11 participating countries to spread its 
high-standard and balanced new rules of the 21st century worldwide. The TPP11 Agreement is open 
to all economies willing to m eet the high standards of the Agreement. Please also refer to the 
Commission Decision of the Accession Process.  
 
Question 5  
To the best of Japan 's knowledge, apart from the 11 CPTPP signatories, are there any other countries 
applying to join the CPTPP?  
 
RESPONSE  
No economy has notified New Zealand (TPP11 depositary) of their formal request to commence 
negotiations on acceding to TPP11 so far.  
 
Page 43 (Para 2.20) 
...Upon entry into force of the agreement, 83.3% of tariff lines were duty free. The transition period 
is 21 years for Japan (i.e. ending in 2038). At the end of this period, 459 tariff lines will remain 
subject to duties. Tariff rate quotas, applied to 16 0 lines, are either CPTPP -wide or country -specific. 
Services commitments on investment and cross -border trade in services are scheduled on a negative WT/TPR/M/397/Add.1  
 
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list basis, while commitments on the temporary entry of business persons are scheduled on a 
positive -list basis (Section 4.4).  
 
Question 6  
Since the CPTPP entered into force, has Japan conducted any quantitative impact assessments on 
its economy, investments, or trade? Are there any differences to date between the actual impacts 
of the CPTPP since it took effe ct and Japan 's prior assessment?  
 
RESPONSE  
Japan (Cabinet Secretariat) conducted the economic impact analysis of the CPTPP in December 2017. 
The analysis estimated that the implementation of the CPTPP would boost Japan 's GDP by 
approximately 1.5%. Because it has been only about one year since the CPTPP entered into force, 
it is too early to evaluate the actual economic effects of the CPTPP to date.  
 
2.3.2.3.1 ASIA -PACIFIC ECONOMIC COOPERATION (APEC)  
 
Page 45  
2.31. In 2016, APEC leaders adopted the Lima Declaration on the Free Trade Area of the Asia Pacific 
(FTAAP), which envisages negotiations on a comprehensive RTA which would include "next -
generation trade and investment issues". These negotiations would be held outside of APEC but in 
parallel with the  APEC process, building upon regional undertakings such as the CPTPP and the 
Regional Comprehensive Economic Partnership. APEC members are now examining how current 
pathways could contribute to the realization of the FTAAP.  
 
Question 7  
The Lima Declaration  states that the FTAAP should be built upon ongoing regional undertakings, and 
through possible pathways including the Trans -Pacific Partnership (TPP) and Regional 
Comprehensive Economic Partnership (RCEP). Could Japan share more on how the two mentioned 
pathways support the Lima Declaration on the realization of the FTAAP?  
 
RESPONSE  
TPP11, a "pathway" for the realization of FTAAP, can be seen as a model for 21st century trade and 
investment rules due to its high quality and comprehensiveness. Japan will c ontinue to strive for 
steady implementation and expansion of such rules with other economies. With regard to RCEP, 
Japan has been working on towards the signing of the agreement among 16 countries by the end of 
this year. Japan will continue to make effort s on trade and investment liberalization and facilitation 
and contribute to the realization of high quality and comprehensive FTAAP through these efforts for 
the pathways.  
 
Question 8  
In Japan 's view, how should APEC member economies support the TPP and RCEP so as to complete 
and strengthen the pathways to realizing the FTAAP?  
 
RESPONSE  
Japan has steadily contributed to set pathways towards the realization of FTAAP through its efforts 
to encourage TPP11 economies which have not entered into force to do so and to promote efforts 
towards the signing of RCEP among 16 countries by the end of this year. Additionally, Japan believes 
that the participation of more APEC members in the TPP11 will lead to the promotion of high -quality 
and comprehensive RTAs such as TPP11, and will lead to the eventual realization of high quality and 
comprehensive FT AAP. 
 
2.4 INVESTMENT REGIME  
2.4.1 INVESTMENT FRAMEWORK  
 
Page 47 (Para 2.36) 
According to the news in Japan, in November of 2019, the National Diet of Japan newly passed 
amendment bill of the Foreign Exchange and Foreign Trade Act (FEFTA), under which the o verseas 
investors are required to seek prior -notification from the Japanese government before obtaining a 1 
percent or higher stake in Japanese companies engaged in business related to weapons, nuclear 
energy, semiconductors, railroads, etc., lowering the threshold from the current 10 
percent.  Relevant ordinance of the said amendment bill of FEFTA and the list of Japanese companies 
that require prior notification will be drafted at the beginning of 2020.  WT/TPR/M/397/Add.1  
 
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Question 9  
Could the Japanese government elaborate more on the said amendment to FEFTA, relevant 
ordinance and how the list of Japanese companies will be organized?  
 
RESPONSE  
Although Japan fails to see the point of this question, the industries subject to the requir ement of 
the prior notification are specified in the public notice.  
 
Question 10  
Could the Japanese government elaborate more on its future Foreign Direct Investment policy 
relating to the sectors considered as national security?  
The Japanese Diet approved  the amendment of the FEFTA last November. The amendment will 
become effective on the day provided by the cabinet order within six months from its promulgation.  
 
RESPONSE  
At this moment, Japan does not have any specific future plans for further amendment o f Foreign 
Direct Investment policy relating to such sectors other than the amendment above.  
 
As for the Direct Investment policy, please refer to the factors to be considered in the examination 
process as follows:  
 
1. Maintenance of defense production and  technological bases related to industries concerning 
national security (i.e. weapons, aircrafts, space and nuclear related industries, etc.)  
2. Prevention of outflow of critical technologies to the national security.  
3. Preservation of public services in emergency and peacetime situations.  
4. Protection of public safety.  
5. Maintenance of stable supply of food or energy etc., sound stockpiling policy, preservation of 
national land, and productivity and continuity of specific domestic businesses , with respect to 
business types of which Japan has lodged a reservation pursuant to the provisions of Article 2 -b of 
the Code of Liberalization of Capital Movements of the Organization for Economic Cooperation and 
Development , from the viewpoint of smoot h management of the Japanese economy.  
6. Characteristics of the investor and its affiliate party(ies), such as, their nature, financing plan and 
record of performance of their investment, etc.  
7. Such other factors that need to be considered.  
 
3 TRADE POLI CIES AND PRACTICES BY MEASURE  
3.3 MEASURES DIRECTLY AFFECTING PRODUCTION AND TRADE  
3.3.3 SANITARY AND PHYTOSANITARY (SPS) REQUIREMENTS  
3.3.3.2 LEGISLATIVE FRAMEWORK  
3.3.3.2.3 THE PLANT PROTECTION ACT  
 
Page 89 (Para 2)  
3.131. The Plant Protection Act, which falls under the responsibility of the MAFF, provides the legal 
basis for regulations on plant protection, including quarantine for local, imported and exported 
plants. There were no changes to the Act over the review period. The Act's main implementing 
regulation is the Ordinance for Enforcement of the Plant Protection Act. As notified by Japan to the 
WTO, revisions of the Ordinance's annex tables (relating to: quarantine pests; plants subject to field 
inspection in ex porting countries; import prohibited plants; and plants subject to specific 
phytosanitary measures to be carried out in exporting countries) will enter into force in January 
2020.  
 
Question 11  
We would like to ask Japan to give further explanation about th e implementation of transparency 
obligation under the SPS Agreement with its plant quarantine measures. For example, are the 
notified amendments of phytosanitary requirements to the SPS Committee identical to the Japanese 
version posted on MAFF 's Website?  
 
RESPONSE  
Japan has provided public information on SPS measures including the one mentioned, in accordance 
with the transparency obligation under the SPS agreement. Information available to the public and 
that contained in the notifications are the same an d the both are consistent with the SPS Agreement.  
 WT/TPR/M/397/Add.1  
 
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4 TRADE POLICY BY SECTOR  
4.2 MINING AND ENERGY  
4.2.2 ENERGY  
 
Page 1 53 (Para 4.109 ) 
The 2018 SEP indicates that the Government will propose measures aimed at utilizing solar power 
for residential consumption and as a distributed power source to carry out local production for local 
consumption. The support measures taken since application of the SEP include an annual 
JPY 2.8 billion subsidy scheme to support the construction of net zero energy house s equipped with 
storage batteries or electric vehicle charging/discharging facilities, and an annual JPY 2 billion 
subsidy scheme for companies constructing local micro grids i.e. energy systems which can be 
operated independently from large -scale electric  power systems in case of blackout. The Government 
is also subsidizing the acquisition of storage batteries for residential and small factory use, based on 
a target/maximum eligible price system whose scales are described in Chart 4.9. Measures are also 
expected to be taken to ensure the proper recycling of used solar panels.  
 
Question 12  
Will foreign entities be allowed to apply SEP subsidies? If yes, what are the substantial terms 
regarding  foreign entities? Is there any differential treatment between fo reign and domestic entities?  
 
RESPONSE  
Foreign entities can apply to SEP subsidies under the same condition as domestic entities as long as 
they meet the following conditions:  
1. The pilot project for ZEH+ (Net -Zero Energy House +)  
Applicants shall be an owner of newly built house, buyer of ready -built new house, or house owner.  
2. The pilot project for ZEH -M (Net -Zero Energy House for high -rise apartment)  
Applicants shall be self -employed individuals or corporations that run businesses in Japan. The ZEH -
M project shall be carried out in Japan.  
3. Local micro grid project  
Applicants shall be self -employed individuals or corporations that run businesses in Japan.  
4. Subsidy for storage batteries for residential and small factory use  
Applicants shall be regi stered corporations in Japan, individuals or self -employed individuals who 
live in Japan.  
 
Page 1 54 (Para 4.116) 
According to Japan's latest notification to the Committee on Subsidies and Countervailing Measures, 
during the review period, several schemes p rovided support, in form of subsidized loans and/or 
grants, to energy -related activities aimed at implementing the country's energy policy objectives 
regarding supply, stockpiling, renewable energy, energy efficiency, and environmental protection 
(Table 4. 19).  
 
Question 13  
Significant subsidies and domestic supports are provided to hydrocarbons, although for the 
production/exploration and the supply -related activities rather than directly at the price level. While 
this would eventually contribute to the realization of the low -carbon hydrogen society in Japan, 
however, with sizeable volume of hydrocarbons needed by Japan, this may, in the interim, encourage 
the continued development of global fossil fuel industry, and hence result in increasing the carbon 
emissions considerably. What is Japan 's stance on this?  
 
RESPONSE  
The Pittsburgh Summit communiqué clarifies subsidies to be eliminated as "contributing to wasteful 
consumption." Japan has a stance that it does not have inefficient fossil fuel subsidies that promote 
wasteful consumption.  
 
Page 157 (Para 4.132)  
In 2017, 65% of natural gas was imported by seven electricity companies for power generation. 
City-gas companies imported the remainder, with one third of their sales to individual consume rs 
and more than half to industry. The city -gas industry is fragmented into many vertically integrated 
regional companies, the four largest having a combined market share of 71%. Under the provisions 
of the Foreign Exchange and Foreign Trade Act, foreign e ntities wishing to invest in gas utilities must 
notify their intention to the competent authorities, including the METI. The authorities state that WT/TPR/M/397/Add.1  
 
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permission may be denied on grounds of, inter alia, public order. Foreign investments have 
effectively taken  place in this sector.   
 
Question 14  
The city -gas industry is currently composed of vertically integrated regional companies. If taking 
achieving full market liberalization into consideration, is unbundling the city -gas industry necessary?  
 
RESPONSE  
Although retail market has been fully liberalized, to encourage the participation of various businesses 
and to make retail market more effective, it is necessary to prepare a fair gas market by unbundling 
the city -gas industry and further securing  the neutrality of business operations in the pipeline sector.  
 
Question 15  
Furthermore, please provide more detailed information regarding foreign investments, such as 
shareholding restrictions etc.  
 
RESPONSE  
1. Maintenance of defense production and techn ological bases related to industries concerning 
national security (i.e. weapons, aircrafts, space and nuclear related industries, etc.)  
2. Prevention of outflow of critical technologies to the national security.  
3. Preservation of public services in emerge ncy and peacetime situations.  
4. Protection of public safety.  
5. Maintenance of stable supply of food or energy etc., sound stockpiling policy, preservation of 
national land, and productivity and continuity of specific domestic businesses, with respect to 
business types of which Japan has lodged a reservation pursuant to the provisions of Article 2 -b of 
the Code of Liberalization of Capital Movements of the Organization for Economic Cooperation and 
Development, from the viewpoint of smooth management of the  Japanese economy.  
6. Characteristics of the investor and its affiliate party(ies), such as, their nature, financing plan and 
record of performance of their investment, etc.  
7. Such other factors that need to be considered.  
 
Question 16  
Has any application proposed by foreign entity been rejected before?  
 
RESPONSE  
No, it has not.  
 
Page 1 57 (Para 4.134) 
Following the amendment of the 1954 Gas Business Act in April 2017, the full deregulation of the 
gas retail market was enforced on 1 April 2017. A s a consequence of this reform, the share of new 
entrants rose in volume, from 8% to 14% between April and July 2019, the number of registered 
retail firms rose to 54 (as at April 2018), among which 18 directly served individual households. 
There are forei gn operators among them. The number of consumers switching from one company 
to another rose from 60,000 in March 2017 to 840,000 in March 2018. The next stage of the reform, 
the legal separation of the pipelines business division from large gas suppliers, is scheduled for 
April 2022.  
 
Question 17  
In the next stage of the reform whereby the legal separation of the pipelines business division from 
large gas suppliers will be effective, will foreign investment and/or foreign operators be allowed to 
join pipelines business? If yes, what will be the terms and criteria of foreign entities participation?  
 
RESPONSE  
In Gas Business Act, foreign operators are not prohibited from joining pipelines business. Conditions 
of permission for gas pipeline service busine ss is equal regardless of nationality.  
 
Question 18  
Does the pipelines business include both transportation and distribution? What is the dispute 
settlement mechanism regarding obligations concerning third party access to the natural gas 
transmission secto r? 
 WT/TPR/M/397/Add.1  
 
- 171 - 
 
RESPONSE  
The gas pipeline business includes both transportation and distribution. Third party access to the 
gas pipeline is possible because the Gas Business Act obligates the gas pipeline business to provide 
transportation service and to formulate gen eral provisions for transportation service that determine 
rates and other supply conditions and to make it public.  
 
Page 1 58 (Para 4.137) 
Chart 4.11 describes the power -generation mix for FY2017, and the planned one for 2030.  
 
Question 19  
What is the total amount of electricity generated in 2017 and the forecasted amount in 2030?  
 
RESPONSE  
1060.5 billion kWh electricity was generated in 201 7, and around 1065.0 billion kWh electricity will 
be generated in 2030 according to Japan 's long -term energy supply and demand outlook (METI, 
July 2015).  
 
Page 1 59 (Para 4.140) 
Following the 2016 liberalization of the retail market, and up to May 2019, the share of new power 
producers and suppliers of electricity in total retail sales rose from 5.0% to 14.2%. Entry into the 
retail market requires government approval. In addition,  under the provisions of the Foreign 
Exchange and Foreign Trade Act, foreign entities wishing to invest in electric utilities (including retail 
operations) must notify their intention to the competent authorities, including the METI. The 
authorities state that permission may be denied on grounds of, inter alia, public order. The number 
of new entrants rose considerably, from 109 operators registered in October 2013 to 614 in 
September 2019. New options for consumers have appeared, such as bundled packages w ith gas 
and other services, loyalty schemes, and the provision of CO 2-free electricity.  
 
Question 20  
To avoid the possible negative impacts on liberalization resulted from those new options for 
consumers, have the Japanese authorities implemented any measu res on the retail market? If yes, 
please provide more details regarding the measures.  
 
RESPONSE  
The Electricity and Gas Market Surveillance Commission established a consultation service in order 
to provide advice during times of market discord, such as con tract disputes between consumers and 
retail electric power suppliers, in order to ensure  proper electric power trade and the neutrality of 
network division. In implementing the full liberalization of retail in April 2016, the transitional 
measures on retail regulation fees for low -pressure consumers were taken in order to prevent the 
"non-regulated monopoly", and the measures as a transitional fees mechanism has retain only in 
the supply area designated by the Minister of Economy, Trade and Industry as being deemed 
particularly necessary to protect the interests of electricity users after April  2020. In case low -
pressure consumers are not satisfied with "new options" and cancel the contracts, it is possible for 
them to contract the EPCOs again and be supplied at regulated rates while the regulations on 
household rates remain.  
 
Question 21  
Furthe rmore, please provide more detailed information regarding bundled packages with gas and 
other services and loyalty schemes.  
 
RESPONSE  
Regarding to city gas businesses, mainly, gas retailers in the metropolitan area supply not only gas 
but electricity. They  discount a price of electricity for the customers who have both gas contract and 
electricity contract and provide service that watch over daily life by grasping gas use situation. In 
some cases, across industries, city gas businesses and electricity busin esses jointly invested and 
started a new company and are working on customer acquisition by providing various price menu 
and by improving the customer loyalty leveraging each advantage and know -how. 
 
Question 22  
Has any application proposed by foreign entity been rejected before? And the reason?  
 WT/TPR/M/397/Add.1  
 
- 172 - 
 
RESPONSE  
There was one case that the Minister of finance and the Minister of Economy, Trade and Industries 
ordered a foreign Investor to discontinue its investment in Japanese electricity company. The 
decision of discontinuation is to avoid any negative impact on the stable supply of electric power, 
and on the construction plan of nuclear power plants which will become the core of Japan 's nuclear 
fuel cycle policy.  
 
Page 1 59 (Para 4.142) 
While consumers can now choose among a variety of services offered by the operator they 
selected, the prices for specific retail services remain regulated for the time being, so long 
as competition has not fully produced its effects.  
 
Question 23  
Why has competition not fully produced its effects?  
 
RESPONSE  
The EPCOs had a monopoly in their respective service areas before the liberalization of the retail 
market and they still represent for the large part of the supply capacity.  
 
Question 24  
Does Japan plan to adopt any measures to further promote competition in the electricity market?  
 
RESPONSE  
In order to realize stable and inexpensive power supply through competition among retailers, which 
is the purpose of the power system reform, it is indispensable  to activate the wholesale market 
where retailers can procure necessary power for retail supply. Therefore, METI is discussing activities 
toward the wholesale market activation etc. Examples of the discussion are as follows:  
1 Discussion of activation of the spot market by a gross bidding, etc.  
2 Discussion of activation of forward market and intraday market  
 
4.4 SERVICES  
4.4.1 FINANCIAL SERVICES  
4.4.1.1 REGULATORY EVOLUTIONS IN THE BANKING SECTOR  
 
Page 168 (Para 4.168)  
The Government is developing a regulatory framework for e -payment services, in order to protect 
consumers and boost innovation. The Banking Act was amended on 26 May 2017 to add a new 
chapter on electronic payment services (Chapter VII -5). This Chapter created a registratio n 
procedure office to operate such services. Foreign corporations and foreign individuals can register 
but must designate an agent in Japan. The definition of Electronic Settlement Intermediary Services 
Providers (ESISPs) encompasses both Payment Initiatio n Services Providers and Account 
Information Service Providers, and includes provisions regulating their business conduct.  
 
Question 25  
In terms of market access, do foreign corporations and foreign individuals enjoy the same treatment 
(i.e., national treatment and non -discrimination) as Japanese ESISPs? Is there a significant 
difference between the qualification requirement of ESISPs and those of other WTO members?  
 
RESPONSE  
There is no discriminatory treatment against foreign corporations and foreign individuals for the 
entry of ESIS. It is also applied among WTO members.  
 
PART II: REGARDING THE GOVENMENT  REPORT (WT/TPR/ G/397) 
2 TRADE AMD INVESTMENT POLICY  
2.1 OVERVIEW  
Page 4 (Para 2.3) 
Japan is currently a party to eighteen EPAs. Japan is aiming for the swift conclusion of RCEP 
negotiations among 16 countries, through which the FTA ratio will exceed 70%, as set out in the 
Growth Strategy 2019. Japan has also pr omoted its regional and bilateral trade policies as a means 
of complementing the multilateral trading system under the WTO and Japan believes that these 
agreements will serve as building blocks to achieve higher trade liberalization at the multilateral 
level. WT/TPR/M/397/Add.1  
 
- 173 - 
 
Question 26  
We understand that India still has many concerns about unresolved RCEP issues and will make its 
final decision based on the members' resolution of these issues. It has been reported that RCEP 
members have begun to carry out related work, such as the legal scrubbing of texts, and RCEP 
members are also actively addressing India's concerns about unresolved issues. Could you please 
share with us the current progress of and schedule for RCEP negotiations, as well as the likelihood 
for Ind ia to jointly sign the RCEP in 2020?  
 
RESPONSE  
Japan has been working towards the signing of an RCEP Agreement by 16 countries by the end of 
this year, following the Joint Leaders ' Statement on the RCEP adopted on 4 November 2019 in 
Bangkok, Thailand.  
 
Question 27  
In addition to China and South Korea, Japan has signed FTAs with the remaining 14 RCEP members, 
and Japan is currently conducting negotiations on the "Japan -China -Korea FT A" with China and Korea. 
In Japan 's opinion, what are the differences between RCEP and the Japan -China -Korea FTA?  
 
RESPONSE  
Trilateral free trade agreement is to realize a comprehensive, high -quality and mutually beneficial 
agreement with its own value bui lding upon the RCEP negotiations.  
 
2.2 WTO  
Page 5 (Para 2.7) 
Furthermore, through the launch of the "Osaka Track" at the sideline  of the G20 Osaka Summit, 
Japan seeks to achieve a high standard agreement on trade -related aspects of e -commerce with the 
participation of as many WTO Members as possible, aiming at achieving substantial progress by 
MC12.  
 
Question 28  
Could Japan please elaborate on the "Osaka Track" and how it might contribute to international rule -
making on trade -related aspects of electronic commerce?  
 
RESPONSE  
The Osaka Track was launched in June 2019 as a process to promote international policy discussions 
on digital  economy, inter alia, international rule -making on trade -related aspects of electronic 
commerce at the WTO. The Osaka Track will contribute to enriching such existing endeavors by 
approaching digital economy from the following three viewpoints:1) discussin g issues which need 
further intellectual works, to foster mutual understanding among WTO members participating in the 
on-going negotiations on electronic commerce at the WTO (hereinafter referred to as the "WTO 
negotiations");  2) making best use of the acc umulation of the best experiences and knowledge 
conducive to the WTO negotiations, gained through expert discussions in international fora other 
than the WTO; and  3) promoting holistic policy discussions on issues surrounding digital economy, 
not limited t o those covered under the WTO negotiations.  
 
2.3 FTA/EPAs  
Page 8 (Table2.1)  
After the United States withdrawing TPP  (Trans -pacific Partnership Agreement), Japanese 
Government took the initiative to organize and accomplish the negotiation of CPTPP (Comprehensive 
and Progressive Agreement for Trans -pacific Partnership), pushing back against the rising trade 
protectionism . 
 
Question 29  
CPTPP has taken effect for more than one year. Could the Japanese government demonstrate  the 
impact of CPTPP on Japan 's trade, main industrial sectors and agriculture so far?  
 
RESPONSE  
As for the trade trends after the entry into force of the TPP11 Agreement, for example, during the 
1-year period after the entry into force of TPP11, export of dairy products towards countries in which 
TPP11 has entered into force increased by more than 20%.  
 WT/TPR/M/397/Add.1  
 
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2.4.3 JAPAN'S BILATERAL ACTIVITIES  
Page 10 (Para 2.21)  
2.21. Following this leaders' decision, Japan and the United States held bilateral negotiations, 
including eight ministerial -level negotiations between Minister Motegi and Ambassador Lighthizer in 
approximately five months. At the summit meetin g in September 2019, the two leaders confirmed 
that the both sides reached final agreement on the Japan -United States Trade Agreement and the 
Japan -United States Digital Trade Agreement.  
 
Question 30  
Could Japan please give some examples of the provisions that contain high -standard commitments 
in the Japan -United States Digital Trade Agreement?  
 
RESPONSE  
The Japan -United States Digital Trade Agreement, for example, includes high -standard 
commitments advanced from the TPP Electronic Commerce Chapter, such as  the provisions with 
respect to prohibition of request for disclosure of cipher or algorithm.  
 
2.5 INVESTMENT POLICY  
Page 12 (Para 2.35. ) 
The Working Group for Revising Regulations and Administrative Procedures under the Council for 
Promotion of Foreign Direct Investment in Japan discussed issues impeding foreign investment in 
the economy and compiled the Final Report in 2017. In addition, t he Council launched the Support 
Program for Regional Foreign Direct Investment in Japan in 2018 to advance regional revitalization 
through FDI. In 2019, the Council adopted the Program to Intensively Attract Foreign Direct 
Investment in Regional Japan to s trengthen the Support Program and provide intensive support to 
priority local governments. In addition, the Japanese Government will work to further improve 
Japan's overall business environment. By following up the past plans and conducting those steadily,  
the Japanese Government aim to achieve the goal of doubling the inward FDI stocks to JPY 35 trillion 
by 2020.  
 
Question 31  
With regard to para 2.35 on Page 12 of the Trade Policy Review Report By The Secretariat, it is 
stated that the Council for Promoti on of Foreign Direct Investment in Japan launched the Support 
Program for Regional Foreign Direct Investment in Japan in 2018 to advance regional revitalization 
through FDI. In 2019, the Council adopted the Program to Intensively Attract Foreign Direct 
Investment in Regional Japan to strengthen the Support Program and provide intensive support to 
priority local governments. As we understood that, in order to promote investment cooperation 
between foreign companies and local companies, measures have been tak en to reduce corporate 
tax and assist foreign investors through financing and other systems. Does the government of JAPAN 
have any specified measures to promote further plans for attracting foreign investment, which 
measures in place have been offered to f oreign investment incentives?  
 
RESPONSE  
The further plan is under consideration and will be announced on the web site when it is decided.  
 
4 JAPAN 'S DOMESTIC POLICIES  
4.1 ABENOMICS  
Page 14 (Para 4.1) 
 
Since 5G is an essential social foundation for achieving "Society 5.0," it is extremely important to 
ensure that 5G telecommunication related systems is built up with trust, stability and safety. In light 
of the importance of dealing dissemination and promotion of 5G information and telecommunications 
infrastructure, "2020 Tax Reform Outline," under which a company can receive either a 15%  tax 
credit or 30% bonus depreciation for qualifying 5G investments, was released by Japanese ruling 
coalition on 20th December 2019 . Further, this new tax measure wil l also be introduced in 
accordance with the requirements of "Act on Promotion of Dissemination of Specified Advanced 
Information and Telecommunications System  (tentative name)," which is still in draft stage now.  
 
Question 32  
Could the Japanese government elaborate more on its tax reform regarding 5G investment and 
qualifies  for the incentives?  
 WT/TPR/M/397/Add.1  
 
- 175 - 
 
RESPONSE  
The specific requirements for utilizing the 5G investment promotion tax system will be stipulated in 
the Bill of Promotion on  Development, Supply, and Introduction of Specific Advanced Information 
and Communication Technologies Utilization Systems.  
Japan would like to refrain from answering this question as the bill is currently under consideration 
in the Diet and still not enac ted. 
 
4.4 COMPETITION POLICY  
Page 16 (Para 4.8)  
In accordance with the conclusion of the Trans -Pacific Partnership (TPP) agreement and the 
Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP), a scheme so -
called "Commitment Procedu res" was introduced into the Antimonopoly Act (AMA). It has been put 
into force since 30 December 2018. The Commitment Procedures would enable the JFTC and alleged 
violators to communicate with each other throughout all the procedures after the launch of t he 
investigation. It is considered that the Commitment Procedure would facilitate early resolution of 
competition concerns and contribute to the effective and efficient enforcement of the AMA by 
resolving more cases through cooperation between the JFTC and  alleged violators. Ensuring the 
transparency and the predictability regarding the enforcement of the law related to Commitment 
Procedures, the JFTC established rules and policies such as the "Rules on Commitment Procedures 
by the Fair Trade Commission" an d the "Policies Concerning Commitment Procedures".  
 
Question 33  
Could Japan elaborate on the practical impacts of the Commitment Procedures?  Are there any  
discrepancies with previous expectations?  
 
RESPONSE  
The Japan Fair Trade Commission has approved only one Commitment Plan (submitted by Rakuten, 
Inc. and approved on October 25, 2019) so far, and thus the JFTC is not quite sure what kind of 
practical impacts Commitment Procedures have on the enforcement act ivities by the JFTC. In 
general, it is considered that, compared to the procedures regarding cease -and-desist orders or 
orders for payment of surcharges, Commitment Procedures will enable swifter elimination of 
competition concerns, broaden the range of co operative problem -solving by the JFTC together with 
enterprises, and contribute to efficient and effective enforcement of the Antimonopoly Act.  
 
  WT/TPR/M/397/Add.1  
 
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SWITZERLAND  
Report by the Secretariat (WT/TPR/S/397)  
 
1. ECONOMIC ENVIRONMENT  
 
1.1 Main Features of the Economy  
 
Question 1  
According to para 1.1, small and medium -sized enterprises (SMEs) continue to play a considerable 
role in the economy. However, according to the OECD, despite public support, they face a 
productivity gap with large companies, and struggl e to take advantage of international trade 
opportunities. How does Japan intend to improve the participation of its SMEs in the global economy?  
 
RESPONSE  
The Ministry of Economy, Trade and Industry (METI) hopes that SMEs with excellent technologies 
and ser vices and potential for overseas expansion will be able to take on overseas markets and take 
on overseas expansion in a form that fully reflects their strengths. The METI provides meticulous 
support according to the stage. In particular, (1) At the stage o f collecting information with the aim 
of overseas expansion, provide information on available SME support measures on websites, etc. 
(2) In the specific planning and preparation stages, marketability research, business plan 
formulation, support for product  and service development, (3) At the stage of actually expanding 
into the local area, searching for overseas partners such as agents and buyers, supporting sales 
channel development at exhibitions and business meetings, (4) At the stage of stabilizing and 
expanding overseas business, Japan is working to support local legal and labor issues and other 
issues in anticipation of establishing local bases.  
 
1.2 Recent Economic Developments  
1.2.4 Structural policies  
1.2.4.3  Competition policy and corporate governance  
 
Question 2  
Unfair competition and the utilisation of data and information technology: in para 1.15, the report 
mentions that the Unfair Competition Prevention Law was amended to encourage businesses to 
utilize data and increase productivity from new informati on technologies. Can Japan elaborate which 
measures mentioned under Sections 2.1, 2.4.2 and 3.3.4.1 are being referred to here and how they 
relate to the increasing of productivity through the use of data and IT?  
 
RESPONSE  
The promotion of the progress of new businesses using big data and the social implementation of 
"Society 5.0" is the key to increase Japan's productivity. Both the "Future Investment Strategy 2017" 
(referred in 2.4 of Section 2.1) and the "New Economic Policy Package" (referred in 2.5 of Section 
2.1) declared the necessary measures to achieve those goals. The amendment of the UCPA in order 
to establish remedy measures for improper acquisition, use and provision of data, as one of those 
measures, was referred in these documents as follows:  
(Future Investment Strategy 2017)  
"The key to break the secular stagnation and achieve mid -and-long-term growth is to realize "Society 
5.0" that resolves various social challenges by incorporating the innovations of the fourth industrial 
revolution (e.g., IoT, big data, artificial intelligence (AI), robot, and sharing economy), which has 
recently been taking place rapidly, into every industry and social life."  
"In order to develop an environment where data can be exchanged with confidence and appropriate 
considerations for data creation, collection, analysis, management, etc. can be obtained 
corresponding to the cost invested in the development, etc., the government will study measures 
also taking into consideration of a revision to the Unfair Competition Pr evention Act to include 
prohibition of fraudulent acquisition of data, etc."  
 
(New Economic Policy Package)  
"The appearance of new innovations such as the Internet of Things, big data, robots, artificial 
intelligence (AI), has enabled us to solve various s ocial problems including energy -related 
environmental constraints, producing many innovative businesses and services. It has a significant 
potential to revolutionarily boost productivity not only by achieving business efficiency and labor -
savings, but also  by creating innovative added values in the era of Society 5.0. Supply System WT/TPR/M/397/Add.1  
 
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Innovation is being well -noticed throughout the world. Aiming to achieve it in 2020 as a big target, 
Japan will take all the possible measures to realize it first in the world."  
"To promote the progress of new businesses using big data, the government will submit to the next 
ordinary session bills aiming to develop flexible regulations of restrictions on rights in the Copyright 
Act and to establish remedy measures for improper acq uisition, use and provision of data in the 
Unfair Competition Prevention Act. "  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
 
3.1 Measures directly affecting imports  
3.1.4 Tariffs  
3.1.4.1 MFN applied tariffs  
 
Question 3  
Paragraph 3.21 indicates that "temporary rates are applicable only for a certain period of time, in 
order to modify general rates to meet policy needs or for other reasons." Could Japan elaborate on 
those policy needs? Which are the other reasons for using temporary rates? What is the duration of 
the temporary rates?  
 
RESPONSE  
The temporary rates can be applied to the products whose rates should be determined on an annual 
basis comprehensively from the point of view of domestic industry protection, import demand and 
the status of ongoin g FTA 's. The rates are applicable for one year and they are extended if necessary. 
For example, the temporary rate of Bio -polyethylene has been exempted since 2019. It was intended 
to promote and spread Bio -plastics, which is likely to be produced domestic ally in the future, as a 
measure against global warming. The other reason for using temporary rates is the tariff quota 
system, for instance.  
 
Question 4  
According to paragraph 3.22 the structure of Japan 's MFN applied tariffs remains complex. As 
internati onal trade is slowing and given the importance of access to inputs for the export oriented 
Japanese economy, which measures is Japan considering to simplify the complexity of its applied 
MFN tariffs?  
 
RESPONSE  
Japan does not have such a simplification plan . 
 
3.1.4.3 Tariff reductions and exemptions  
 
Question 5  
According to paragraph 3.30 Japan has a permanent and a temporary system of customs duty 
reduction and exemptions. The system is further explained in Chart 3.5. Could Japan explain, which 
are the cond itions to benefit from the temporary duty reduction/exemption for parts of aircrafts? 
Could Japan provide the rationale for this measure?  
 
RESPONSE  
Goods set forth in the following, if they are recognized as those difficult to be manufactured in Japan 
and if they are prescribed by Cabinet Order, shall, pursuant to the provision of Cabinet Order, be 
exempted from custom duty.  
(i) parts used for aircraft;  
(ii) materials used for manufacture of aircraft and parts thereof at a manufacturing factory approved  
by the Director General of Customs;  
(iii) artificial satellites, rockets for launching artificial satellites, appliances and instruments used for 
launching and tracking such satellites or rockets and other goods used for space development;  
(iv) materials used for manufacture of goods set forth in the preceding item at a manufacturing 
factory approved by the Director General of Customs.  
(Legal Basis: Article 4 of the Temporary Tariff Measures Act)  
This temporary duty exemption is introduced with a view to further develop the national 
aircraft/space craft industry.  
 WT/TPR/M/397/Add.1  
 
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3.1.5 Other charges affecting imports  
 
Question 6 : The Secretariat does not include a chapter on excise duties, which is normally a 
standard chapter in the TPR reports by the Secretariat. Could J apan provide a list or an internet link 
of excise duties that are currently applied?  
 
RESPONSE  
Please refer to Table A3.1 Taxation rates, November 2019.  
 
3.3 Measures Directly Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy  
 
Question 7  
In para. 3.147, the report mentions that Japan cooperates closely with foreign competition 
authorities through different types of agreements, including inter -agency memoranda of 
understanding (MoUs). During the review per iod, Japan concluded four MoUs (Canada, China, 
Mongolia and Singapore) but no agreements. Is there an explanation why Japan didn 't conclude 
agreements in the same period which are generally legally binding and of larger application than 
MoUs ? Can Japan explain what are the main characteristics of the four MoUs concluded?  
 
RESPONSE  
There have already been agreements with Canada, Mongolia, and Singapore, and MoUs with 
competition authorities of these countries were signed to implement these agr eements. As for China, 
the JFTC signed MoUs separately with the Ministry of Commerce of the People 's Republic of China 
(MOFCOM), the National Development and Reform Commission (NDRC), and the State 
Administration for Industry and Commerce of the People 's Republic of China (SAIC), which were all 
former competition authorities of China that were integrated into the State Administration for Market 
Regulation (SAMR): and thus the JFTC has signed the MoU with SAMR. In general, MoUs can be 
negotiated and signed i n a shorter period compared to the agreements. While the MoUs with the 
competition authorities of China, Mongolia, and Singapore are almost the same as other MoUs in 
terms of provisions regarding notification, cooperation, coordination, etc., the MoU with the 
competition authority of Canada contains a provision which encourages one competition authority 
to consider providing the other competition authority with more sensitive information.  
 
Question 8  
Para 3.149 states that Japan and the European Union, in t he context of the EU -Japan EPA, agree to 
promote cooperation and coordination between the competition authorities. How does the 
cooperation and coordination with the European competition authority work in practice? Is there a 
cooperation and coordination o n specific cases (f.e. exchange of information), or is it more about 
general matters?  
 
RESPONSE  
As stipulated in the Japan -EU EPA, under the framework of the Japan -EC Antitrust Cooperation 
Agreement, enforcement cooperation and coordination between the two  competition authorities on 
individual cases are properly implemented. In merger cases, such cooperation and coordination 
contribute to consideration of market definition and remedy appropriately. Since specific cases or 
matters are not generally disclosed , we would like to refrain from mentioning them.  
 
4. TRADE BY SECTORS  
 
4.2 Mining and Energy  
4.2.2 Energy  
4.2.2.1 Hydrocarbons  
 
Question 9  
Table 4.19 as well as chapter 4.2.2.1 mention different support programmes for research, 
development or production of hydrocarbons (e.g. oil and gas). With a view of Japan 's commitment 
to reform inefficient fossil fuel subsidies under the G7 and G20, is Japan considering reforming these 
support programmes?  
 WT/TPR/M/397/Add.1  
 
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RESPONSE  
The Pittsburgh Summit communiqué clarifies  subsidies to be eliminated as "contributing to wasteful 
consumption." Japan has a stance that it does not have inefficient fossil fuel subsidies that promote 
wasteful consumption.  
 
4.4 Services  
4.4.6 Distribution services with a specific focus on e–commerce  
 
Question 10  
Para 4.275 reads as follows: "There is no specific general regulatory framework for e -commerce. 
The main relevant laws deal with consumer protection and e -payments." Japan is one of the leading 
and most important e -commerce markets in the world. Research, innovation and a business -friendly 
environment are crucial for sustainable success in modern electronic enabled trade. In 2009, 
Switzerland concluded its EPA with Japan containing substantial provisions on e -commerce. 
Switzerland is  in a similar situation as Japan, as there is no specific e -commerce regulation in 
Switzerland. We would like to ask Japan, the following questions: Did Japan in the past make a 
systematic evaluation on the potential need for an e -commerce specific regulat ion? If yes, what were 
the main outcomes?  
 
RESPONSE  
Since 2002, the relevant ministries, academic experts and the business community have evaluated 
and clarified how the Civil Code and other relevant laws are applied to various legal issues related 
to elec tronic commerce. The outcomes of the evaluation are revised and released annually in 
"Interpretative Guidelines on Electronic Commerce and Information Property Trading." The guideline 
is expected to enhance predictability for concerned parties and contribu te to the facilitation of 
business activities.  
  WT/TPR/M/397/Add.1  
 
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REPUBLIC OF KOREA  
PART I: Questions Regarding the Secretariat Report  
 
Page 46 (Para 2.36)  
 
In 2017, the FEFTA  was amended, inter alia, to expand the scope of a prior checking of unlisted 
stock transfers between foreign investors, and to introduce a provision that foreign investors 
investing in Japan without being registered may be subject to executive orders, inc luding orders to 
sell their holding stocks; these measures were taken in order to protect Japan's essential security. 
There have been no further amendments since 2017.  
 
Question 1  
According to the Foreign Exchange and Foreign Trade Act (FEFTA) amended in 2 017, a prior 
notification should be made to the Japanese government about unlisted stock transfers between 
foreign investors. The Act also states that the government of Japan can place limitations on the 
transfer of unlisted stocks when deemed essential fo r its national security. Could Japan elaborate on 
the criteria used for making such decisions? Is there a way for foreign investors to appeal against 
such decisions?  
 
RESPONSE  
The criterion used for decisions is whether the specified acquisition is highly likely to cause a situation 
that would compromise national security.  Foreign investors can request for review of an 
administrative disposition when an administrative agency orders investors to modify or discontinue 
the inward direct investment or equivalent action that is the subject of the notification.  
 
Page 71 (Para 3.64.)  
 
Changes were introduced in July 2019 to the licensing system, with the result that the relevant bulk 
licences for exports of three items (fluorinated polyimide, resist and hy drogen fluoride, and their 
relevant technologies) to the Republic of Korea are no longer applicable. According to the Japanese 
authorities, so far, these changes have had no impact on actual production or the global supply 
chain.  
Page 71 (Para 3.64.)  
 
Ques tion 2  
Please provide the Japanese government 's reason for excluding Korea from the white list in July 
2019 and for changing the export license for three items (i.e., fluorinated polyimide, resist and 
hydrogen fluoride) from a comprehensive (negative syste m) one to an individual one (positive 
system).  
 
RESPONSE  
In light of A.(i) of Annex 3 of the WTO Agreement and for the sake of credibility of TPR mechanism, 
taking into account Korea 's submission on 18 June, 2020, of a request for the establishment of a 
WTO panel concerning the issues that appear to be closely related to the questions posed in this 
process, Japan would like to refrain from addressing the issue within the Trade Policy Review process 
and answering Question 2.  
(note) The m atter at question has been discussed between Japan and Korea at the Export Control 
Policy Dialogue and other forms of communications.  
 
Question 3  
Were there specific cases that have caused Japan to restrict the export of the three items to Korea?  
 
RESPONSE  
In light of A.(i) of Annex 3 of the WTO Agreement and for the sake of credibility of TPR mechanism, 
taking into account Korea 's submission on 18 June, 2020, of a request for the establishment of a 
WTO panel concerning the issues that appear to be closely related to the questions posed in this 
process, Japan would like to refrain from addressing the issue within the Trade Policy Review process 
and answering Question 3.  
(note) The matter at question has been discussed between Japan and Korea at the Export Co ntrol 
Policy Dialogue and other forms of communications.  
 WT/TPR/M/397/Add.1  
 
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Question 4  
Which penalties have been imposed on Japanese companies for inappropriate export management? 
What kind of efforts did Japan make before implementing export restriction to minimize the negative 
impact of trade restrictions? If no effort has been made to minimize the impact of trade restrictions, 
what was the urgent cause that led to taking such a drastic measure against Korea?  
 
RESPONSE  
In light of A.(i) of Annex 3 of the WTO Agreement a nd for the sake of credibility of TPR mechanism, 
taking into account Korea 's submission on 18 June, 2020, of a request for the establishment of a 
WTO panel concerning the issues that appear to be closely related to the questions posed in this 
process, Japa n would like to refrain from addressing the issue within the Trade Policy Review process 
and answering Question 4.  
(note) The matter at question has been discussed between Japan and Korea at the Export Control 
Policy Dialogue and other forms of communicati ons. 
 
Question 5  
At the time of imposing restrictions on exports to Korea, did the Japanese government conduct a 
comprehensive and overall inspection and assessment on its export management for the world 's 
major countries? If it did, which countries were r eviewed? What standard did Japan use in reviewing 
the export management system? Did no country other than Korea pose a problem?  
 
RESPONSE  
In light of A.(i ) of Annex 3 of the WTO Agreement and for the sake of credibility of TPR mechanism, 
taking into account Korea 's submission on 18 June, 2020, of a request for the establishment of a 
WTO panel concerning the issues that appear to be closely related to the qu estions posed in this 
process, Japan would like to refrain from addressing the issue within the Trade Policy Review process 
and answering Question 5.  
(note) The matter at question has been discussed between Japan and Korea at the Export Control 
Policy Dial ogue and other forms of communications.  
 
Question 6  
How long did it take the Japanese government to decide whether to permit the export of the three 
items to Korea? Please provide the respective amount of time before and after the export control 
was put in  place (starting from the date of receipt of the application). If it varies case by case, we 
would like to know the average time taken.  
 
RESPONSE  
In light of A.(i) of Annex 3 of the WTO Agreement and for the sake of credibility of TPR mechanism, 
taking in to account Korea 's submission on 18 June, 2020, of a request for the establishment of a 
WTO panel concerning the issues that appear to be closely related to the questions posed in this 
process, Japan would like to refrain from addressing the issue within t he Trade Policy Review process 
and answering Question 5.  
(note) The matter at question has been discussed between Japan and Korea at the Export Control 
Policy Dialogue and other forms of communications.  
 
Question 7  
Please provide data on the amount of export for each of the three items to Korea during the period 
from July 2019 to December 2019. Also, please give a detailed explanation to support Japan 's 
argument that the export control will have little impact on actual production or the global supply 
chain. 
 
RESPONSE  
In light of A.(i) of Annex 3 of the WTO Agreement and for the sake of credibility of TPR mechanism, 
taking into account Korea 's submission on 18 June, 2020, of a request for the establishment of a 
WTO panel concerning the issues that appear to be closely related to the questions posed in this 
process, Japan would like to refrain from addressing the issue within the Trade Policy Review process 
and answering Question 7.  
(note) The matter at question has been discussed between Japan and Korea at  the Export Control 
Policy Dialogue and other forms of communications.  
 WT/TPR/M/397/Add.1  
 
- 182 - 
 
Page 72 (Para 3.65.)  
 
[…] Recent changes to the system resulted in the Republic of Korea now being listed under "Group 
B" countries and regions.71 
 
Question 8  
Regarding the revision of Appendix 3 of the Export Trade Control Order, has Japan established 
transparency and a clear standard based on which countries shall be grouped into categories ranging 
from A to D?  
Considering some countries have no explicit catch -all regulations on conventional weapons (such as 
Canada) and are still included in Japan 's white list of countries (which is currently Group A countries), 
please provide the reason Japan singled out Korea (which does have a catch -all control framework 
and de facto catch -all regulations on conventional weapons) and removed it from the white list.  
 
RESPONSE  
In light of A.(i ) of Annex 3 of the WTO Agreement and for the sake of credibility of TPR mechanism, 
taking into account Korea 's submission on 18 June, 2020, of a request for the establishment of a 
WTO panel concerning the issues that appear to be closely related to the qu estions posed in this 
process, Japan would like to refrain from addressing the issue within the Trade Policy Review process 
and answering Question 8.  
(note) The matter at question has been discussed between Japan and Korea at the Export Control 
Policy Dial ogue and other forms of communications.  
 
Page 119 (Para 3.236.)  
 
The Unfair Competition Prevention Act (UCPA) protects trade secrets and prohibits unfair competition. 
A METI study group, tasked with identifying an IP system that is responsive and supportiv e of the 
Fourth Industrial Revolution, reported, in 2017, that then -existing measures were insufficient to 
prevent the unfair use of data. Accordingly, 2018 amendments to the UCPA, which took effect on 1 
July 2019, establish civil remedies for the wrongful  acquisition, disclosure, and use of "data for 
limited provision" – information that is valuable to business and society but does not qualify as a 
trade secret or for copyright protection. This includes technical or business information accumulated 
in a re asonable amount, managed by electronic or magnetic means, and regularly provided to 
specific persons. The law is reportedly the first in the world to attempt to protect Big Data. The METI 
published new Guidelines on Protected Data on 23 January 2019, which  offer practical guidance on 
the amendments, including examples of targeted behaviours.  
 
Question  9 
The term "data for limited provision" mentioned in the Secretariat's report was not found in the 2018 
amendments to the UCPA. Instead, the term "protected data" was used. It is the same for the  
notification of laws and regulations under Article 63.2 of the TRIPS Agreement. Could you confirm 
whether these two terms are the same in meaning?  
 
RESPONSE  
The meanings of the terms of "data for limited pr ovision" and "protected data" are the same.  
The UCPA (Article 2(7)) defines "protected data" as follows:  
The term "protected data" as used in this Act means technical or business information that is 
accumulated in a reasonable amount by electronic or magn etic means (meaning an electronic form, 
magnetic form, or any other form that is impossible to perceive through the human senses alone; 
the same applies in the following paragraph) as information provided to specified persons on a 
regular basis and that is  managed (excluding information that is kept secret).  
 
Question 10  
The term "data for limited provision" is described in the Secretariat's report as "information that is 
valuable to business and society but does not qualify as a trade secret." Can Japan ex plain in more 
detail the difference between "data for limited provision" and "trade secret"? What parts of 
Article  39.2 of the TRIPS Agreement have been relaxed to be categorized as "data for limited 
provision"?  WT/TPR/M/397/Add.1  
 
- 183 - 
 
RESPONSE  
"Protected data" is information designed to be provided exclusively to specific outsiders satisfying 
certain conditions, while "trade secrets" are information that is reasonably controlled by business 
operators as secret, and the definitions of these terms  are different. In order to avoid overlaps 
between them, "trade secrets" are excluded from "protected data" as defined in Article 2 (7) of the 
UCPA. Also, "protected data" is not correspond to "undisclosed information" in Article 39.2 of the 
TRIPS Agreemen t because the meaning of "protected data" is different from that of "trade secrets".  
 
Article 2(6) of the UCPA  
The term "trade secrets" as used in this Act means technical or business information useful for 
business activities, such as manufacturing or ma rketing methods, that are kept secret and that are 
not publicly known.  
 
Article 2(7) of the UCPA  
The term "protected data" as used in this Act means technical or business information that is 
accumulated in a reasonable amount by electronic or magnetic mea ns (meaning an electronic form, 
magnetic form, or any other form that is impossible to perceive through the human senses alone; 
the same applies in the following paragraph) as information provided to specified persons on a 
regular basis and that is managed  (excluding information that is kept secret).  
 
Page 135 (Para 4.30)  
 
The Agricultural Disaster Compensation Act used to serve as the legal basis for the Agricultural 
Mutual Aid System (AMAS) that provides compensation from losses caused by natural disaster s 
(including from extreme weather), diseases, and other events. In 2018, the Act was revised, and 
renamed the Agricultural Insurance Act. It introduces procedural efficiencies as well as a Revenue 
Insurance Program (RIP). The RIP, effective from 2019, oper ates in addition to the AMAS, and is 
applicable to all farm products and certain livestock products. It is a voluntary insurance system, 
designed to compensate farmers in the event of revenue decreases; farmers taking out insurance 
policies are paid back f or 90% of the loss when the loss is more than 10%, based on five -year 
average farming income. The Government contributes 75% of the reserve fund and about 50% of 
the premiums (the insurance premium rate is 1.08%).23 
 
Question 11  
The Revenue Insurance Program (RIP), effective since 2019, seems to be one of the notable changes 
in Japan 's agricultural policy. What is the percentage of farms that applied for the RIP in 2019?  
 
RESPONSE  
The RIP in 2019 covered 23,000 farming entities. The farmers who file a blue returns (the tax 
declaration based on double book keeping system) are qualified for the RIP, and the number of all 
the qualitied farmers was 460,000 in 2018.  
 
Question 12  
Since the RIP covers all farm products, according to the Report, it a ppears that some products may 
benefit from both the newly introduced RIP and other existing insurance programs that compensate 
for losses resulting from natural disasters. Is it possible for farmers planting certain crops to receive 
payments from more than  one program at the same time?  
 
RESPONSE  
A farmer who is covered by the RIP cannot take similar schemes to compensate the income loss 
(such as Agricultural Mutual Aid).  
 
Question 13  
It seems the RIP does not meet the requirements stated in Annex 2 in the Agreement on Agriculture. 
Under which category has Japan notified (or plans to notify) the newly adopted support in DS:1 
notification? Approximately how much was the total spending amount in 2019?  
 
RESPONSE  
Japan will examine the categorization prior t o the next DS1 notification. The budget for the RIP in 
FY2019 is approximately 20 billion JPY.  
 WT/TPR/M/397/Add.1  
 
- 184 - 
 
Question 14  
According to the report, the Japanese government contributes about 50% of the premiums and 75% 
of the reserve fund toward the revenue insurance that needs to be paid by farmers. Are these 
support measures consistent with the Agreement on Agriculture 's rules which limit the government 's 
financial participation in income insurance to less than 70% of the producer 's income loss?  
 
RESPONSE  
See the response to Q.13 from Republic of Korea.  
 
Page 136 (Para 4.34)  
 
All spending notified under the Blue Box was for the rice income stabilization program. Over the 
period FY2012 -16, spending levels fluctuated, from a high of JPY 155.9 billion in 2013 to a low of 
JPY 70.8 billion in FY2016.  
 
Question 15  
Has Japan continued to spend for the rice income stabilization programme under the Blue Box after 
FY2017?  
 
RESPONSE  
The Direct Payment for Rice was abolished in 2018.  
 
Page 138 (Para 4.40)  
 
The Government's policy on rice evolved over the review period, with the abolition of the Direct 
Payment for Rice and the administrative allocation of rice production volume targets, in 2018. The 
payments made to rice farmers were linked to rice production  volume targets assigned to each 
prefecture and each individual farmer based on MAFF estimates of supply and demand. As indicated 
by an external source, this policy change is expected to raise the competitiveness of the rice farm 
sector, by enabling farmer s to plan their production, unrestricted by volume targets; the 
Government's role is now refocused on providing market information.28 
 
Question 16  
According to the report, Japan abolished direct payments on rice in 2018. It is known that rice-
producing farmers account for a large portion of Japan 's agriculture. Is there any other subsidy 
policy, other than the support for agricultural insurance premiums, that will replace the policy of 
Direct Payment for Rice?  
 
RESPONSE  
No subsidy policy to replace the Direct Payment for Rice.  
 
Page 148 (Para 4.86)  
 
Japan reshuffled the presentation of its subsidy schemes in its notification. In its previous WTO 
notification in 201754 (covering FY2014 and 2015), it notified only two national program mes: the 
Fisheries Modernization Fund Interest Subsidy and the Fund for the Measure to Recovery Fishery 
Resources. Table 4.15 contains the support programmes for fisheries as notified by Japan to WTO 
in July 2019. The total amount of subsidies rose signifi cantly. It was JPY 73.2 billion for FY2016 and 
JPY 68.7 billion for FY2017, compared with JPY 1.7 billion for FY2014 and JPY 1.3 billion for FY2015. 
According to the authorities, this increase can be explained by the fact that, for the sake of 
transparency  in the ongoing negotiations on fisheries subsidies, Japan notified programmes which, 
in its view, may not constitute subsidies under Article 1 of the SCM Agreement or may not be 
"specific" under Article 2 of the same Agreement.  
 
Question  17 
Under paragraph 4.86, Japan explained to the WTO that the support programs for fisheries, in its 
view, may not constitute subsidies under the Agreement on Subsidies and Countervailing Measures 
(SCM Agreement). Please clarify Japan 's position regarding the follow ing question: Does the 
Japanese government consider all of the four notified programs as not related to fisheries subsidies? 
Or which of the four programs has the nature of support for fisheries? What is the total amount of 
fisheries subsidies? Also, could  Japan clarify why it explained that the notified programs may not 
constitute subsidies?  WT/TPR/M/397/Add.1  
 
- 185 - 
 
RESPONSE  
Since the fisheries subsidies to be notified are not clear in terms of their definitions, scope, and 
specificity, Japan 's notification in this regard was limi ted to the ones which were highly presumed to 
be specific.  
In 2019, Japan submitted a wide range of notification in order to enhance transparency in light of 
the notification obligation set out in paragraph 2 of the Ministerial Decision in the 11th Ministe rial 
Conference. This notification includes certain fisheries related government expenditures that may 
not constitute "subsidies" under Article 1 of the SCM Agreement or may not be "specific" under 
Article 2 of the Agreement. Please refer to the cover page  of G/SCM/N/343/JPN for more detailed 
information.  
Although the nature of Japan 's notified programs this time support fisheries sectors in a general 
sense, they may include government expenditures that may not be subsidies in the sense of ASCM. 
Because of such premise of notification noted above, the total amount of notifications enco mpassing 
four programs can be regarded as a possible maximum amount of fisheries subsidies.  
 
PART II: Questions Regarding the Government Report  
 
Page 17 (Para 4.12., 14.)  
 
4.12. Japan, shortly after the accident at the Tokyo Electric Power Co. (TEPCO) Fuku shima Daiichi 
Nuclear Power Station (NPS) in March 2011, has taken a comprehensive set of measures such as 
decontamination of the farm land and fruit trees, control over feeds and agricultural inputs and 
introduced a risk -based food monitoring scheme.  
 
4.14. Japan's national laws mandate that food products which exceed these stringent maximum 
levels be recalled and disposed of, and if exceeding cases are observed in a particular product over 
an area, their distributions be restricted on an area basis. Japan 's regulatory framework thus ensures 
that food products exceeding the maximum level are neither distributed in domestic market nor 
exported to third countries.  
 
Question 18  
Could Japan elaborate on the scope and the methodology of its food monitoring program regarding 
the food produced in Fukushima Prefecture including its sampling plans? Also, will Japan maintain 
the current level of monitoring and its methodology in the future?  
 
RESPONSE  
As section 4.14 of the Trade Policy Review Report submitted by Japan on 22 January 2020, Japan's 
national laws mandate that food products which exceed these stringent maximum levels be recalled 
and disposed of, and if exceeding cases are observed in a particular product over an area, their 
distribu tions be restricted on an area basis. Japan's regulatory framework thus ensures that food 
products exceeding the maximum level are neither distributed in domestic market nor exported to 
third countries.  
The latest monitoring scheme "Concepts of Inspection Planning and the Establishment and 
Cancellation of Items and Areas to which Restriction on Distribution and/or Consumption of Foods 
concerned Applies (Developed by the Nuclear Emergency Response Headquarters)" is available on 
the URL below,  
https://www.mhlw.go.jp/english/topics/2011eq/dl/food_revision_22March_2019.pdf . 
In order to conduct inspections more rationally and effectively, the consideration is to be carr ied on 
annually by the competent authorities while assessing the state of the transition of the concentration 
monitoring data, an accumulation of new scientific knowledge, cases of cancelling the restriction on 
distribution and/or consumption, and others.  
 
PART III: Other Questions  
 
Question 19  
Due to the differences in vehicle standards between in Korea and in Japan and other safety reasons, 
Japan has not allowed Korean vehicles carrying live fish to drive on roads in Japan for a long period 
of time. In accordance with current regulations in Jap an, transshipment to Japanese live -fish vehicle 
is required when delivering Korean live fish to fish markets in Japan. In this process, Korean 
exporters are burdened with additional logistics cost and suffering from deteriorating quality of goods 
due to th e increased transportation time. On the principle of reciprocity, Korea requests Japan to WT/TPR/M/397/Add.1  
 
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acknowledge the results of vehicle safety inspections carried out based on the Korean standard and 
to allow live -fish vehicles to drive in Japan as Korea allows.  
 
RESPONSE  
To ensure road traffic safety and environmental protection in Japan, Japan needs to thoroughly 
check the differences of vehicle regulations between two countries, conduct a detailed investigation 
on the potential safety and environmental impacts of r oad traffic based on the differences of the 
regulations, and take necessary measures to eliminate potential safety or environmental concerns, 
taking into account the need for Korean live -fish vehicles to enter Japan. In addition to taking such 
measures, it  is necessary to confirm that vehicles entering Japan meet safety and environment 
regulations one by one, which could be practically difficult to do in the current system, and another 
system such as new bilateral agreements would be necessary. Therefore, i n order to ensure road 
traffic safety and environmental protection in Japan, the results of vehicle safety inspections 
conducted in accordance with Korean regulations cannot be approved in Japan.  
 
Question 20  
In order to export a vehicle to Japan, the vehicle must be registered on the list of imported vehicles 
for Japan. And a certification for conformity with technical standards including safety evaluation 
results such as crash test is required for registratio n. MSMEs have difficulties exporting vehicles 
because such a safety test is conducted only in Europe. Moreover, there is no competent authority 
to inquire the specific criteria, information and evaluation methods related to safety evaluation. It is 
thus ne cessary to establish an arrangement that recognizes safety evaluation conducted in Korea. 
We would also like to request Japan a clear description of the safety evaluation process and to 
provide information on the Japanese agency responsible for safety eval uation.  
 
RESPONSE  
The "Agreement concerning the Adoption of Harmonized Technical United Nations Regulations for 
Wheeled Vehicles, Equipment and Parts which can be Fitted and/or be Used on Wheeled Vehicles 
and the Conditions for Reciprocal Recognition of Ap provals Granted on the Basis of these United 
Nations Regulations" (1958 Agreement), which Japan and Korea have acceded, and have been used 
internationally, can be used in exporting Korean vehicles to Japan.  
 
Question 21  
Since Japanese construction law dele gates to local governments the administrative authority to 
approve foreigners ' construction business, the requirements for construction businesses vary by 
region. Some local authorities require full -time executives to have more than five years of experienc e 
in managing offices. In this context, it is difficult for MSMEs to send abroad manager -level workers 
who meet this requirement. Also, some local authorities require supervisory engineers to be 
equipped with level 1 national qualification. It is difficult  for foreign companies to meet this 
requirement because it is almost impossible to acquire this qualification outside Japan. Therefore, it 
is necessary to alleviate the qualification requirements of full -time executives and to recognize 
qualifications gran ted by foreign governments as the qualification of supervisory engineers.  
 
RESPONSE  
First of all, the requirements for managing officers are the same all over Japan. Japan has revised 
the Construction Business Act last June and is now planning to require m anaging officers to:  
① meet conditions currently required to be a managing officer,  
② have experience in construction management or administrative position for more than 5 years,  
③ have experience in management for an industry other than construction for more than 5 years,  
④prepare a supporter, who has somehow experienced some management  in construction, for a 
company officer,  
⑤ enroll in appropriate social insurance.  
There are three patterns in order to become a managing officer: satisfy (1) ① and ⑤, (2) ②, ④and 
⑤ or (3) ③, ④ and ⑤. 
 
Moreover, for supervisory engineers, there are some foreign qualifications which allow foreign 
workers to work as supervisory engineers in Japan as long as they get certification from the Minister 
of Land, Infrastructure, Transport and Tourism.  
For those who have experience as supervisory engineers in their  own country, by having an 
individual check by the Minister of Land, Infrastructure, Transport and Tourism, they could work as 
supervisory engineers in Japan.  
  WT/TPR/M/397/Add.1  
 
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CANADA  
Secretariat Report – Japan (S397)  
Part I. Economic Environment: Main Features of the Economy  
Paragraph 1.1, page 15:  
The Secretariat report notes that "[s]mall and medium -sized enterprises (SMEs) continue to play a 
considerable role in the economy". In respect to the SME segment of Japan 's business community:  
 
Question  1 
How are SMEs ( MSMEs) defined for the purposes of statistical and policy analysis?  
 
RESPONSE  
SMEs generally fall into one of the following categories: It is described in the following article.  
(1) Any entity which is a company whose capital or total amount of investment does not exceed 
three hundred million yen (300,000,000 yen), or a company or an individual whose regular workforce 
does not exceed three hundred persons, and which is principally engaged in manufacturing, 
construction, transportation or any other category of business (except those categories of business 
mentioned in any of items (2) to (4) below);  
(2) Any entity which is a company whose capital or total amount of investment does not exceed one 
hundred million yen (100,000,000 yen), or a company or an indivi dual whose regular workforce does 
not exceed one hundred persons, and which is principally engaged in the wholesale trade;  
(3) Any entity which is a company whose capital or total amount of investment does not exceed fifty 
million yen (50,000,000 yen), or a company or an individual whose regular workforce does not 
exceed one hundred persons, and which is principally engaged in the service industry;  
(4) Any entity which is a company whose capital or total amount of investment does not exceed fifty 
million ye n (50,000,000 yen), or a company or an individual whose regular workforce does not 
exceed fifty persons, and which is principally engaged in the retail trade.  
 
Question  2 
Please provide any readily available statistics on the role of SMEs in Japan 's economy and 
participation in international trade, specifically: (i) total number of SMEs in Laos; (ii) percentage of 
businesses that are SMEs; (iii) employment profile of SMEs, e.g. percentage of total employment 
generated by SMEs; (iv) exports and imports  by SMEs, e.g. percentage of all exports and imports 
for SMEs, total number of SMEs that are exporting and importing.  
 
RESPONSE  
Please see the following figures.  WT/TPR/M/397/Add.1  
 
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SMEs in Japan  
 
Source:  "2016 Economic for Business Activity" (Ministry of Internal Affairs and Communications, Ministry of 
Economy, Trade and Industry) (rearranged and processed).  
Changes in the Number of Exporting Companies and the Ratio of Exporting Companies  
 
Source:  Ministry of Economy, Trade and Industry "Basic Survey on Corporate Activities".  
 
Question  3 
Does Japan collect statistics on SME ownership by diverse groups (e.g., women, youth, etc.)? If so, 
please provide this information.   
 
RESPONSE  
Please refer to the results of basic survey of small and medium -sized enterprises (2018 report) as 
the following website.  
https://www.e -stat.go.jp/stat -
search/files?page=1&layout=datalist&toukei=00553010&tstat=000001019842&cycle=7&tclass1=0
00001132003&tclass2=000001132004&stat_infid=000031849189  
 
Question  4 
Does Japan include provisions in its Regional Trade Agreements in support of SMEs in cross -border 
trade, e.g. cooperation, investment? If so, please provide an overview of these provisions.  
WT/TPR/M/397/Add.1  
 
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RESPONSE  
There is nothing that corresponds to that.  
 
Part I. Economic Environment: Main Features of the Economy; Tax Reform  
Paragraph 1.12, page 23:  
It is noted that Japan 's 2019 tax reform includes the creation of a Forest Environment Tax 
(provisional) and a Forest Environment Transfer Tax (provisional).  
 
Question  5 
Could Japan explain how the funds raised through the Forest Environment Tax will be allocated? In 
particular , please clarify if this revenue will be used to support Japan 's forest industry to promote 
the production of domestic forest products.  
 
RESPONSE  
The Forest Environment Transfer Tax will be allocated to municipalities and prefectures according to 
objective standards (the total area of private planted forests, number of forestry workers, and 
population). The Forest Environment Transfer Tax does not aim at promoting the production of 
domestic forest products. Instead, the tax aims at maintaining and enhancing the multiple functions 
of forests for the public benefits that result in achieving the greenhouse gas emissions reduction 
target under the framework of the Paris Agreement and protecting citizens from disasters.  
 
Question  6 
Could Japan explain wh at the word "provisional ' means in this context?  
 
RESPONSE  
It indicates that the name of the tax and the transfer tax was yet to be officially decided before the 
enactment of the Act, however, it has been established by the enactment.  
 
Part II. Trade and I nvestment Regimes: Trade Policy Formulation and Objectives  
 
Paragraph 2.7, page 35:  
The Government of Japan 's "comprehensive trade policy" includes promoting the use of economic 
partnership agreements (EPAs), the establishment in 2016 of a Consortium for New Export Nation, 
and measures to increase food exports.  
 
Question  7 
In its comprehensive trade policy, does Japan envision a policy that ensures that the benefits of 
trade are more widely shared across the economy, similar to Canada 's poli cy on inclusive trade?  
 
RESPONSE  
To realize that the appropriate distribution of benefits of trade across the economy and well -balanced 
economic growth, Japan has been implementing policy to promote and support companies ' business 
in foreign countries more actively. In comprehensive trade policy, providing a huge opportunity for 
Second -tiers and SMEs that have refrained from overseas business is one of the priorities. The 
Ministry of Economy, Trade and Industry has been wo rking to create an environment where women 
can work with motivation. In addition to providing financial support, such as financing by the Japan 
Finance Corporation to promote businesses conducted by women, 10 networks which aim to support 
female entreprene urs were built across Japan. In doing so, the system for supporting women is 
being enhanced. The Act Promoting Measures to Achieve a Society in which the Pride of Ainu People 
is Respected, enacted in April 2019, aims to advance regional, industrial and tou rism promotion, in 
addition to previous welfare measures and cultural promotion. The Act provides for new subsidies to 
support projects implemented by municipalities.  
 
Paragraph 2.9, page 37:  
It is noted that under the 2001 Government Policy Evaluations Ac t (GPEA), the Cabinet Order for 
Enforcement of the Government Policy Evaluation Act, and the Basic Guidelines for Implementing 
Policy Evaluations (as revised in 2017), the Cabinet Office and ministries are required to evaluate 
policies before and after imp lementation, to publish the results of these evaluations, and have 
discretion to ask for the opinions of stakeholders and the public.  
 WT/TPR/M/397/Add.1  
 
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Question  8 
Does the requirement to evaluate policies before and after implementation extend to trade 
agreements? If so, how is the evaluation undertaken?  
 
RESPONSE  
Administrative organs must carry out the evaluation when regulations are enacted, revised or 
abolished by laws or cabinet orders.  
 
Question  9 
Does Japan consult widely, i.e. with stakeholders and the public, on their comprehensive trade policy 
and trade policy positions in regard to specific trade agreements? Does Japan have best practices or 
lessons learned to share in this area?  
 
RESPONSE  
The Government of Japan informs its trade  policy through close communication with the public at 
various occasions, including the Diet and other explanatory sessions.  
 
Part II. Trade and Investment Regimes: Investment Regime; Business Environment  
Paragraph 2.44, page 50:  
The Government of Japan co ntinues to implement various policy measures to assist MSMEs, including 
financing support; measures to realize wage increases; and productivity -improvement assistance.  
 
Question  10 
Are the effects (intended or unintended) of policy measures on MSMEs a consideration in any 
mandated review process for new or revised legislation or regulation? Is this process implemented 
when the new or revised legislation or regulation is not directly related to assisting MSMEs, in 
contrast to the examples above?  
 
RESPONSE  
The effect of policy measures on SMEs is a consideration in the process of evaluating new or revised 
SME-related laws and regulations.  
 
Question  11 
Are there targeted policies and pro grams to help establish Indigenous -owned MSMEs (Ainu peoples) 
or women -owned MSMEs and to help them engage in international trade?  
 
RESPONSE  
The Act Promoting Measures to Achieve a Society in which the Pride of Ainu People is Respected, 
enacted in April 20 19, aims to advance regional, industrial and tourism promotion, in addition to 
previous welfare measures and cultural promotion. The Act provides for new subsidies to support 
projects implemented by municipalities. The Ministry of Economy, Trade and Indust ry has been 
working to create an environment where women can work with motivation. In addition to providing 
financial support, such as financing by the Japan Finance Corporation to promote businesses 
conducted by women, 10 networks which aim to support fem ale entrepreneurs were built across 
Japan. The network for support system for female is being enhanced.  
 
Question  12 
Are there specific policy measures/programs at the national or sub -national levels for Indigenous -
owned MSMEs (Ainu peoples) that seek to remove barriers and improve their capacity to engage in 
international trade? Including in the industry and tourism sec tors?  
 
RESPONSE  
In order to promote Ainu SMEs, Ministry of Economy, Trade and Industry provides subsidies for Ainu 
folk crafts to develop sales channels, support sales promotion, and secure and develop human 
resources.  
 
Paragraph 2.45, page 50:  
The Government of Japan is actively trying to promote women's participation in the work force.  
 
Question  13 
Does Japan have best practices or lessons learned to share regarding: (a) targeted support programs 
and/or policies to encourage women -owned MSMEs to gr ow domestically and/or export WT/TPR/M/397/Add.1  
 
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internationally? (b) policies and programs aimed at promoting the participation of Indigenous 
peoples (Ainu peoples) in the workforce?  
 
RESPONSE  
Japan does not have best practices or lessons learned to share regarding their pr ograms or policies.  
 
Paragraph 2.46, box 2.2, page 51:  
It is noted that Japan has launched regulatory reform pilot schemes under the National Strategic 
Special Zone initiative. Box 2.2 notes a pilot scheme on reform in agriculture and forestry in Senboku 
City Zone.  
 
Question  14 
Could Japan provide details on the forestry reform and agriculture reform pilot projects undertaken 
in Senboku City Zone?  
 
RESPONSE  
Under a national regulation, a forester can borrow less than 5 hectares of national forest land. A 
forestry reform project undertaken in Semboku City, however, allows large -scale forestry by utilizing 
up to 10 hectares of national forests. In this project,  Semboku City puts pigs to graze, promoting 
the food industry as well as the forest industry. Another project in Semboku City relaxes the 
requirements for membership of agricultural production corporation provided by the Agricultural 
Land Law. Under this r egulatory exception, a farming cooperation was founded and produces Kiku -
imo, a kind of Japanese potato that is supposed to be beneficial for health. Because this project has 
been successful, it led to a revision of the Agricultural Land Law.  
 
Part III.  Trade Policies and Practices by Measure:  Measures Directly Affecting Production 
and Trade; Incentives; Taxation  
Paragraph 3.87, page 77 and Table 3.11, page 78:  
Japan provides various tax incentives, including to companies located in Special Zones. It is noted 
that Japan has different types of Special Zones: National Strategic Special Zone and Comprehensive 
Special Zones.  
 
Question15  
Could Japan explain the difference between National Strategic Special Zone and Comprehensive 
Special Zones?  
 
RESPONSE  
(1) Na tional Strategic Special Zones: The aim of National Strategic Special Zones is to conduct pilot 
experiments in a "Sandbox" environment, thereby advancing regulatory reforms across various 
sectors that could boost the economic growth of Japan.  
(2) Comprehen sive Special Zones: Comprehensive Special Zones not only implement regulatory 
reforms, but also provide fiscal support and tax benefits in order to comprehensively and 
strategically address the challenges in the regions.  
 
Question  16 
Are any of these two Z ones addressed to industries or sectors of the economy and if so, which ones?  
 
RESPONSE  
(1) National Strategic Special Zones: National Strategic Special Zones are not addressed to specific 
industries or sectors, and regulatory reforms realized in the zones include a wide range of areas 
including urban regeneration, business environment, foreign human resources, tourism, medical and 
child care, agriculture, forestry and fishery, employment, and education.  
(2) Comprehensive Special Zones: Comprehensive S pecial Zones are not addressed to specific 
industries or sectors. But a variety of sectors participate in the zones such as global business, 
ecological business, healthcare, manufacturing, tourism, agriculture, and town development.  
 
Paragraph  3.88, page  78 and Table A3.2, page 200:  
Over the review period, revisions were made to the tax system for R&D. These revisions are 
discussed in Table A3.2. The following questions relate to the gross R&D cost base and the special 
R&D cost -based credit.  
 WT/TPR/M/397/Add.1  
 
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Question  17 
Under the gross R&D cost base, the limitation of credit is set at 25% of corporate tax before credit. 
In 2019, this limitation of credit was raised to 40% for "a certain scope of start -ups conducting 
R&D". Could Japan clarify what this entails and what are t he industries or sectors that are eligible 
for this 40% limitation of credit?  
 
RESPONSE  
In order to assist certain start -ups (※) and encourage innovative R&Ds, Japan changed the R&D tax 
law. Any industry or sector can use the R&D cost -based credit.  
Note: Certain start -ups: Companies established within the previous 10 years and which have loss 
carry forwards which will be carried over into the next fiscal year are eligible. Subsidiaries of large 
enterprises, etc. are excluded.  
 
Question  18 
Similarly, in 2019, the scope of the special R&D cost -based credit expanded, with the addition of 
"certain types of research". Could Japan clarify what this entails and what are the industries or 
sectors that are eligible for the special R&D cost -based cre dit? 
 
RESPONSE  
Research consigned to a large enterprise had not been eligible. However, in 2019, to encourage 
innovative R&D, Japan made it eligible for a large enterprise. For the same reason, we also included 
open innovation for venture companies. Althou gh, any industry or sector is eligible for the program, 
it is limited to basic research, applied research and R&D for the purpose of utilizing intellectual 
property/ Mere consignment of R&D operations are excluded.  
 
Part III. Trade Policies and Practices b y Measure: Standards and Other Technical 
Requirements  
Paragraphs 3.104 and 3.109, page 82:  
These paragraphs discuss developments related to Japan Agriculture Standards (JAS).  
 
Question  19 
Is Japan considering expanding the scope of its JAS graded lumber p romotion so that it applies to 
other lumber suitable for use in construction in Japan? If not, please provide reasons for this position.  
 
RESPONSE  
As Canada mentioned, while the MAFF  has made efforts to promote utilization of JAS graded lumber 
in construction in Japan, non -JAS graded lumber is not included in these efforts.  
 
Part III. Trade Policies and Practices by Measure: Sanitary and Phytosanitary (SPS) 
Requirements; SPS Measures  
Paragraph 3.124, page 87:  
 
Question  20 
Can Japan please provide information on its anticipated future sanitary and phytosanitary initiatives 
that will impact Canadian exports to Japan? Such as the adoption of, or amendments to, sanitary 
and phytosanitary legislation and regulations and significant sanitary and phytosanitary policies.  
 
RESPONSE  
If a proposed sanitary and phytosanitary regulation may have a significant effect on trade of other 
Members including Canada, Japan will notify the proposed sanitary or phytosanitary regulation in 
accordance with the SPS Agreement.  
 
Part III. Trade Policies and Practices by Measure: Measures Directly Affecting Production 
and Trade; Government Procurement  
Paragraph 3.168, page 101:  
The Secretariat Report notes: "Japan has no restrictions on the place of origin of products or the 
nationality of suppliers in government procurement. The principle of non -discrimination is pursued 
in all procurement activities. However, there has been concern over the apparentl y low share of 
foreign companies in public procurement; it seems that this is partly due to non -regulatory barriers, 
the geographical distance from certain overseas markets, and a lack of knowledge of the local 
market."  
 WT/TPR/M/397/Add.1  
 
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Question  21 
Has the Government of Japan taken any measures to encourage the participation of foreign 
companies in its public procurement market?  
 
RESPONSE  
Yes. In terms of GPA covered procurement, the central government announces in advance the annual 
schedule of its procurem ent and holds a seminar on Japan 's government procurement for foreign 
entities and diplomatic corps stationed in Tokyo.  
 
Question  22 
If yes, what are these measures?  
 
RESPONSE  
In terms of GPA covered procurement, the central government announces in advance  the annual 
schedule of its procurement and holds a seminar on Japan 's government procurement for foreign 
entities and diplomatic corps stationed in Tokyo.  
 
Paragraph 3.174, page 105:  
Regarding the promotion of the participation of MSMEs in government procurement, the Secretariat 
Report notes: "The central Government, IAAs and national university corporations set their own 
procurement target value from SMEs every fiscal year. The target  amount for micro, small and 
medium -sized enterprises (MSMEs), set at 55.1% of the total budget of "public demand ', stood at 
JPY 3.8 trillion in 2017 and JPY 4.0 trillion in 2018. Local governments follow the policies of the 
central Government on an "endea vour basis. '" 
 
Question  23 
Could Japan clarify if the 55.1% procurement target applies only to Japanese MSMEs, or if it also 
applies equally to foreign MSMEs?  
 
RESPONSE  
In setting the target for the contract ratio for small and medium -sized enterprises in the total public 
budget of the national government, conditions such as domestic and overseas distinction are not set 
for small and medium -sized enterprises.  
 
Question  24 
Could Japan explain the meaning of "total budget of "public demand '" as used in this paragraph?  
 
RESPONSE  
The "total budget for "public demand '" refers to the total public and public demand budget of the 
country, and indicates the total amount of budget for public procurement of the country.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights (IPRs); 
Features and IP Strategy  
Paragraph 3.176, page 105:  
In the Secretariat Report, it is noted that the Japan Patent Office ( JPO) found a correlation between 
patent rights and operating profits on sales for SMEs. The Report also notes that over the five year 
period ending in December 2017, revenue from IP increased over 74%.  
 
Question  25 
Can Japan provide additional information on the correlation between patents and firms ' economic 
performance?  
 
RESPONSE  
2018FY Basic Survey on IP Activities by Small and Medium Enterprises in Japan provides data on 
the presence or absence of patent rights, utilization of patent rights  and operating profit margin. It 
is linked below; https://www.jpo.go.jp/resources/report/chiiki -chusho/report_chusho_chizai.html  
(Japanese version only). Please note that there is no further information regarding the above.  
 
Question  26 
Did Japan conduct inferential analyses to assess the correlation?  
 WT/TPR/M/397/Add.1  
 
- 194 - 
 
RESPONSE  
The Japan Patent Office (JPO)  did not conduct such analyses.  
 
Question  27 
With respect to the revenue generated by IP, can Japan provide additional details on how it measures 
the revenue from IP? For example, is it based on royalties and licensing revenue, or does it also 
include revenue from the sale of IP rights?  
 
RESPONSE  
Japan 's Balance of Paym ents Statistics comply with the sixth edition of the Balance of Payments 
Manual (BPM6) published by the International Monetary Fund (IMF) and the data are compiled 
primarily based on reports which are submitted under the Foreign Exchange Act. In the statis tics, 
"Charges for the use of intellectual property n.i.e." is further divided into "charges for the use of 
industrial property n.i.e." and "charges for the use of copyrights n.i.e.". "Charges for the use of 
industrial property n.i.e." consists of royaltie s and licensing revenue. It does not include revenue 
from the sale of IP rights.  
 
Paragraph 3.178, page 106:  
Chart 3.7 in the Secretariat report presents the growth in charges for the use of IP since 1996. The 
chart is separated by charges for the use of industrial property and copyrights.  
 
Question  28 
Chart 3.7 indicates that Japan is a net importer of copyrights; however, the revenue from industrial 
property offsets this negative IP trade balance. Can Japan provide information on whether it is a net 
exporter or net importer of patents?  
 
RESPONSE  
Japan cannot provide the details of patents because there is no breakdown of "Charges for the use 
of industrial property n.i.e." in the statistics.  
 
Paragraph  3.179 -3.180, page  107: 
In the Secretariat Report, it is noted that Japan 's 2018 IP Strategy Visio n foresees Japan as a "value 
design society" with innovation driven by latent needs and wants. It is further clarified that the 
Government intends to pursue this vision by "strengthening IP strategy relating to data, artificial 
intelligence, and other new data-related assets".   
 
Question  29 
Could Japan elaborate on how their approach to artificial intelligence IP strategy aligns with their 
goal of "value design"?  
 
RESPONSE  
It is conceivable that big changes beyond assumption of the traditional industrial fi eld happen by 
analyzing big data collected via IoT, which connects everything, by AI. Effective utilization of 
resources by AI has led to dramatic improvement of productivity. Promoting business development 
based on consumer behavior and potential demand g rasped by various data has been a source of 
competitiveness. Those strategies will lead to the realization of a value design society.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights (IPRs); 
Policies on Promotion and Commercialization of Innovation  
Paragraph 3.188, page 108:  
The Secretariat report notes that SMEs are provided comprehensive IP Support Service Counters in 
all 47 prefectures of Japan. The support counters provide free -of-charge assistance from experts on 
legal matters, branding, business development, agriculture, and geographical indications. 
Additionally, under the Global IP Producers programme, support is offered for establishing and 
protecting intellectual property rights abroad including an insurance s cheme, where half the cost of 
overseas IP litigation is covered.  
 
Question  30 
Is the cost of overseas IP litigation governed by the JPO or other external organisations?  
 WT/TPR/M/397/Add.1  
 
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RESPONSE  
The JPO governs the cost. The JPO will subsidize the premiums for SMEs enrol ling in the overseas 
IP litigation insurance scheme by paying half of the cost (reduced to 1/3 from the 2nd year onwards, 
after renewal).  
 
Paragraph 3.187 -3.189, page 108 -109: 
The Secretariat Report notes that Japan has recently prioritized IP education and awareness as a 
part of their strategy to encourage innovation. The JPO in collaboration with the National Center for 
Industrial Property Information and Training (INPIT) has debuted a number of programs to spread 
IP awareness and education, such as consultations with patent examiners and IP support services.  
 
Question  31 
Can Japan provide information on the early benefits and challenges that have arisen from these 
program mes? 
 
RESPONSE  
The JPO considers that IP awareness and literacy have developed through these programs. The JPO 
will continue these programs so that IP awareness can spread more broadly.  
 
Question  32 
Has the JPO witnessed a direct correlation between the increas ed support of start -ups with programs 
such as "super -accelerated examination" and the number of patent filings?  
 
RESPONSE  
Although the number of patent filings applied by start -ups has not been aggregated, the number of 
average monthly applications of "su per-accelerated examination" for start -ups has yearly increased, 
presuming that the number of patent filings applied by start -ups increased.  
 
Paragraph 3.190, page 109:  
The Secretariat Report notes that Japan is adapting its IP regime and associated processes to the 
development of Big Data, artificial intelligence (AI) technologies, and the Internet of Things (IoT).  
 
Question  33 
Based on the measures already implemented to modernize/adapt the IP regime and associated 
processes as it relates to the development of Big Data, artificial intelligence (AI) technologies, and 
the Internet of Things (IoT), in Japan 's opinion what measures have been most and least effective?  
 
RESPO NSE 
Japan is of the opinion that to adapt the rapid change of the IP regime caused by the development 
of the new emerging technologies (NET), constant review of current IP system is important and 
effective. As a result of the constant review, Japan has con sidered and will consider appropriate 
measures to adapt the NET and all of them are important and effective. As a reference, some 
examples of such measures are shown below:  
・Addition of AI and IoT case examples to the Patent Examination Guidelines;  
・Creati on of new patent classifications for IoT technologies;  
・Organizing an IoT Examination Team;  
・Hosting the "International Symposium on Patent Examination Practices on AI -related Inventions" 
(Nov. 2019 in Tokyo); and  
・Amendment of the Japan Patent Act (Establishment of inspection system).  
 
Paragraph 3.194, page 110:  
The Secretariat Report notes that in 2018, the Cabinet adopted an Integrated Innovation Strategy, 
and established an Integrated Innovation Strategy Promotion Council. University reforms, 
technologically disruptive R&D programmes, supportive start -up ecosystems, and the promotion of 
science and technology for the achievement of SDGs are among the "hallmarks of the Strategy," 
which is to be implemented horizontally across ministries and agencie s. 
 
Question  34 
Have there been any challenges faced with the implementation of the Integrated Innovation 
Strategy, if so, what were the key challenges and how were they overcome?  
 WT/TPR/M/397/Add.1  
 
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RESPONSE  
Though Japan is facing various challenges, Japan is co -working to implement this strategy, 
coordinating between related ministries and agencies. The Integrated Innovation Strategy Promotion 
Council has been held since 2018 in order to fulfill the cross -cutting and substantial coordination 
between ministries or agencies.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights (IPRs); 
General Regulatory Framework  
 
Paragraph 3.209 -3.210, page 113 - 114: 
The Secretariat Report notes that the JPO  aims to provide the "world's fastest and utmost quality 
patent examinations", to respond to the accelerated cycle of creating, establishing, and utilizing IPRs 
and to facilitate acquisition and protection of rights abroad… The JPO outsources prior art sea rches, 
plans to employ AI technology to improve speed and quality, and has introduced design -driven 
management principles to improve the quality of its services to users.  
 
Question  35 
Could Japan elaborate on the process of implementing AI technology to im prove the speed and 
quality of patent examinations? What have been the most significant challenges and advantages 
that Japan has already witnessed?  
 
RESPONSE  
JPO formulated an "Action Plan" in FY2017 with a view to utilizing artificial intelligence technol ogy 
in the future, and revised the Action Plan in November 2018. JPO has conducted PoC projects in 
accordance with this Action Plan. JPO has examined the feasibility of introduction and developed 
business support tools based on the verification results. Si gnificant challenges are the advancement 
and growth in the complexity of cutting -edge technologies of applications and the expansion of the 
scope of prior art searches. JPO considers that developing an examination support tool to streamline 
examination wor k and solving these challenges are the advantages of AI technology development.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights (IPRs);  
Designs  
Paragraphs 3.220 – 3.222, page 116:  
The Secretariat Report notes that the term of protection for all design rights has been extended from 
20 years from the registration date to 25 years from the filling date. There has also been an 
expansion of examination procedures in order to improve the speed and quality of examination. 
Despite t hese improvements, the number of design applications and registrations has stabilized.  
 
Question  36 
Despite the significant improvements in design laws and examination procedures domestic Japanese 
design applications have been falling over time, can Japan provide additional information to explain 
this trend?  
 
RESPONSE  
In regard to the decrease in the number of domestic design applications in recent years, according 
to some major companies in Japan, it seems that one of the reasons for this trend is th at they 
nowadays tend to consider carefully whether or not to file domestic design applications in accordance 
with their domestic business strategy within their budgetary constraint for IP, while they increase 
the number of design applications filed abroad  along with globalization of their businesses.  
Please note, however, that to what extent the revised Design Act will affect the number of domestic 
design applications is not sure at the moment since the revised Design Act including the extension 
of the du ration of design rights will come into force in April 1, 2020.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights (IPRs); 
Trademarks  
Paragraph 3.224, page 117:  
The Secretariat Report notes that Japan 's Trademark Act was revised during the review period for a 
number of reasons including with respect to statutory damages for trademark infringement, 
"prompted by the CPTPP."  
 WT/TPR/M/397/Add.1  
 
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Question  37 
Can Japan provide additional information on how statutory damages wor k in trademark infringement 
cases, both generally, and in light of this new revision?  
 
RESPONSE  
For claiming damages, Article 38 of Japan 's Trademark Act provides presumption clauses to reduce 
burden of proof of the amount of damages. Article 38 para (1) p rovides the calculation method for 
the amount of damages, para (2) provides that the amount of profits gained by the infringer shall 
be presumed to be the amount of damages and para (3) provides that the amount the right holder 
would have been entitled to receive for the use of a registered trademark can be claimed as the 
amount of damages.  
In order to comply with the CPTTP Agreement appropriately, statutory damages for trademark 
infringement cases was newly introduced into Japan 's Trademark Act as Article 38 (4) which enables 
claiming pre -established damages which is available on the election of the right holder.  
The amount of statutory damages may be presumed to be the amount equivalent to the expenses 
normally required for the acquisition and maintenance of the trademark right.  
The "amount equivalent to the expenses normally required for the acquisition and maintenance of 
the trademark right" includes at least application and registration fee.  
 
Paragraph 3.224, page 117:  
Per the Secretariat report notes that a 2019 amendment to Japan 's Trademark Act would permit the 
owner of a famous mark representing the nation, a local government or agency, or a public interest 
non-profit to grant non -exclusive licenses. The revision was intended to facilitate the  use of such 
marks by industries and businesses in collaboration with public or non -profit entities, such as 
universities.  
 
Question  38 
Would Japan please further explain the mechanics of the new legal provision regarding non -exclusive 
licenses for this ty pe of famous mark be further explained?  
 
RESPONSE  
Japan 's Trademark Act permits to register a mark which is identical with, or similar to, a famous 
mark representing (i) the nation, (ii) a local government, (iii) an agency thereof, (iv) a non-profit 
organization undertaking a business for public interest, or (v) a non -profit enterprise undertaking a 
business for public interest, provided that an applicant of the mark corresponds to the authorities 
itself (Article 4(2)). For this purpose, be fore the revision, it was not allowed to license those public 
famous marks for third parties. However, in recent years, local governments and universities often 
use such marks for the purpose of regional revitalization or other promotional activities in 
collaboration with business entities and there has been a growing demand to liberalize the restriction 
for licensing. Taking into account of this situation, we decided to allow non -exclusive licenses for 
those marks by removing the sentence after "provided" in Article 31 of the Japan 's Trademark Act.  
- Article 31(1)  The holder of trademark right may grant to another person a non -exclusive right to 
use to the trademark to which he/she holds the right; provided, however, that this provision shall 
not apply to the trademark right pertaining to an application for trademar k registration provided in 
Article 4 (2) . 
 
Paragraph 3.228, page 118:  
The Secretariat Report notes that the JPO outsourced and computerized examination processes and 
increased the number of assistants for examiners.  
 
Question  39 
Can Japan provide additiona l information on what elements of the process were outsourced and 
computerized, and how they are computerized? For example, is the JPO using AI -based solutions?  
 
RESPONSE  
The JPO  mainly outsources preliminary trademark search. The main outsourced items are as follows:  
(i) search on unclear designated goods and services;  
(ii) search on the meaning of words which constitute trademarks; and  
(iii) search on prior figure trademarks tha t are similar to the filed figure trademarks.  
Also, all documents are digitized and trademark examinations are performed on a computer basis, 
but no AI -based trademark examinations are currently conducted.  
 WT/TPR/M/397/Add.1  
 
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Part III. Trade Policies and Practices by Measure : Intellectual Property Rights (IPRs); 
Geographical Indications  
Paragraph 3.234, page 119:  
Amendments regarding GIs were enacted in 2018 that permitted good -faith use of an identical or 
similar GI for up to seven years following the registration or designa tion of a GI. These amendments 
also provide for the co -existence of trademarks registered in good faith, prior to the date of 
registration or designation of a GI. Lastly, the amendments expand the regulatory scope beyond 
products and packages, to include a dvertisements, price lists, and transaction documents.  
 
Question  40 
Can Japan further explain the mechanics of expanding the regulatory scope beyond products and 
packages and including advertisements, price lists and transaction documents?  
 
RESPONSE  
The 20 14 Act provided for the regulatory scope before the 2018 amendments as follows: affixing a 
GI to (1) the registered products, (2) its package, container or invoice.  
The 2018 amendments expanded that regulatory scope as follows: using a GI of (1) the regist ered 
products or (2) its package, container, advertisement, price list or transaction document (including 
information on these provided through electro or magnetic means (which means electronic means, 
magnetic means, or any other means that cannot be perce ived by the human perceptions)).  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights (IPRs); 
Copyright  
Paragraph 3.239, page 120:  
The Secretariat report describes limitations in Japan 's copyright law to support the development of 
artificial intelligence (AI) technologies. Articles 30 -4 (Exploitation without the Purpose of Enjoying 
the Thoughts or Sentiments Expressed in a Work), 47 -4(1) (Exploitation of Works Incidental to the 
Exploitation of Works on a Computer) and  47-5 (Minor Exploitation Incidental to Computerized Data 
Processing and the Provision of the Results Thereof) of Japan 's Copyright Act appear to all be related 
to the development of AI technologies.  
 
Question  41 
Could you please provide additional explan ation of the differences in the purpose of these three 
articles, and how the three exceptions work together to support AI?  
 
RESPONSE  
Under Japan 's circumstances that certain amount of stakeholders in Japan prefer clarity to flexibility 
in provisions, it is  suitable to have a multi -layered solution with several provisions balanced in clarity 
and flexibility rather than highly flexible and general single provision.  
Article 30 -4 and 47 -4 are more flexible provisions than Article 47 -5 and these two articles app ly to 
certain actions that are not normal use of works and usually considered not to prejudice right holders ' 
interest.  
Article 30 -4 prescribes limitation for exploitation without the purpose of enjoying the thoughts or 
sentiments expressed in a work. Thi s article applies to actions such as collecting data necessary for 
machine learning in developing AI and providing those data to third parties.  
Article 47 -4 prescribes limitation for exploitation of works incidental to the exploitation of works on 
a comput er. This article applies to actions such as generating cache data in computers and storing 
data as backup.  
Article 47 -5 is a flexible provision for actions which are not normal use of works and only slightly 
prejudice right holders ' interest. Article 47 -5 prescribes limitation for minor exploitation incidental 
to computerized data processing and the provision of the results thereof. This article applies to 
actions such as undertaking computerized data analysis and furnishing the results of that analysis.  
The combination of these provisions leads to smooth exploitation of works in a suitable way for 
Japan 's circumstance and then promotes innovations.  
 
Part IV. Trade Policies by Sector: Agriculture; Agricultural Policy  
Paragraph 4.8, page 128:  
As part of Japan Revitalization Strategy 2016, the export target for major agriculture, forestry and 
fisheries products was set at more than JPY 1 trillion by 2019.  
 WT/TPR/M/397/Add.1  
 
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Question  42 
What proportion of this export target is specifically dedicated to agricultur al products, forestry 
products, and fishery products respectively?  
 
RESPONSE  
The export target is for the total value only; there are no product -specific targets.  
 
Paragraph 4.9, page 128:  
The Secretariat report notes that in 2017, Japan released a Policy Package for Enhancing the 
Competitiveness of Japan 's Agriculture. The policy package aims to increase farmer 's 
competitiveness through 13 actions. One of the actions is to reduce the price of farming inputs.  
 
Question  43 
Could Japan elaborate as to  how it will reduce the price of farming inputs and which inputs would be 
eligible?  
 
RESPONSE  
Japan recognizes the importance of promoting cost reduction of agricultural production in order to 
raise farmers ' income. Japan promotes business restructuring or  entry into a business against 
agricultural production -related business, based on the "Act on the Support for Strengthening 
Agricultural Competitiveness '. Accordingly, Japan has been certifying business restructuring plans 
and business entry plans and allowing certified enterprises to receive financial support based on the 
certified plan.  
The eligible farming inputs are fertilizers, agricultural chemicals, animal feed, agricultural machines, 
seeds and seedlings.  
 
Part IV. Trade Policies by Sector: Agric ulture; Trade Policies and Border Measures  
Paragraph 4.21, page 130:  
It is noted that the Japanese Government considers that, as a result of the full implementation of 
the CPTPP and the Japan -EU EPA, prices are expected to be affected for certain agricult ural, forestry 
and fisheries products. It estimates a total loss of JPY 112.5 billion for these products under the 
Japan -EU EPA, and of JPY 145.9 billion under the CPTPP due in part to price declines for certain 
agricultural, forestry and fisheries product s. The agricultural products projected to be hardest hit are 
beef and dairy products under the Japan -EU EPA, and beef, dairy products and pig meat under the 
CPTPP. However, the Government is of the view that, despite this, domestic production volumes and 
farmers' incomes will be maintained through government measures.  
 
Question  44 
Could Japan describe the government measures aimed at mitigating these losses in the agricultural 
sector, forestry sector, and fisheries sector respectively?  
 
RESPONSE  
Japan is ta king the following measures in order to help mindful producers engaged in agriculture, 
forestry and fisheries: (1) For agriculture: development and extension of smart technologies, 
resizing and versatile enhancement of farmland,  (2) For forestry: providing  guidance and support to 
coordinate and integrate forest management areas/groups, and (3)  For fisheries: support to 
transform fishing operating system to sustainable cost -effective one.  
 
Question  45 
What share of these losses are related respectively to agricultural products, forestry products, and 
fisheries products?  
 
RESPONSE  
The shares are as follows:  
The Japan -EU EPA  
・Agricultural products: approximately 60 ％ 
・Forestry products: approximately 32 ％ 
・Fisheries products: approximately 8 ％ 
CPTPP 
・Agricultural products: approximately 75 ％ 
・Forestry products: approximately 14 ％ 
・Fisheries products: approximately 10 ％ WT/TPR/M/397/Add.1  
 
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Question  46 
Are there any government measures provided to the forest sector that aim to overcome this loss?  
 
RESPONSE  
See the response to Q44 from Canada.  
 
Part IV. Trade Policies by Sector: Agriculture; Domestic Support  
Paragraph 4.30, page 134:  
The Secretariat report notes that in 2018, the Agricultural Insurance Act was revised and one of the 
changes was the introduction of the Revenue Insurance Program (RIP), which is applicable to all 
farm products and certain livestock products. This is a vol untary insurance system which 
compensates farmers in the event of declines in revenue.  
 
Question  47 
Could Japan elaborate as to which livestock products are eligible for RIP?  
 
RESPONSE  
Eligible for the RIP is the sales income of all the animal products ex cept beef cattle and calves, hogs 
and poultry for eggs.  
 
Question  48 
Could Japan provide the payments to -date under the RIP  
 
RESPONSE  
The information on the amounts paid under the RIP are not yet available as the payment has just 
started in February 2020.  
 
Table 4.19, page  155: 
It is noted that Japan has a subsidy for promoting business reorganization and resilience of 
petroleum industrial complexes.  
 
Question  49 
Could Japan expand on the details of this program and speak to its outcomes?  
 
RESPONSE  
(1) Promoting business reorganization  
It supports investment in facilities that multiple companies can utilize in cooperation in the petroleum 
industrial complexes. It aims to contribute to the stable supply of oil.  
(2) Resilience of pe troleum industrial complexes  
Since oil will be an energy source of "last resort" in the event of large -scale disasters, such as The 
Great East Japan Earthquake, it is necessary to further strengthen the resilience of oil supply 
networks. As part of it, to maintain a sufficient shipping function even in the event of large -scale 
disasters, METI will support the refining oil companies to install emergency power generation 
facilities, assess resilience, and take measures to strengthen resilience at refineries a nd oil terminals.  
 
Part IV.  Trade Policies by Sector:  Mining and Energy; Gas  
Paragraph  4.131, page  157: 
It is noted that the State does not appear to be involved in the ownership of gas exploration, 
production, liquefaction or distribution companies.  
 
Question  50 
Could Japan clarify if it is involved in the ownership of such companies?  
 
RESPONSE  
(1) Gas exp loration, production or liquefaction companies:  
The Government of Japan owns a part of shares of some Japanese gas exploration, production or 
liquefaction companies.  
(2) Gas distribution companies:  
The Government of Japan doesn 't own any Japanese gas distribution companies.  
 WT/TPR/M/397/Add.1  
 
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Part IV. Trade Policies by Sector: Mining and Energy; Electricity  
Paragraph 4.137, Chart 4.11, page 158:  
According to Chart 4.11, Japan 's planned power generation mix for 2030 calls for renewable power 
from biomass to approximately  double from 2017 levels by 2030. As well, in the primary energy 
supply mix (Chart 4.7 and 4.8, page 152) woody biomass is set to increase by 6% to account for 
19% of all renewables by 2030.  
 
Question  51 
Considering this transition, is Japan planning an update to its sustainability requirements for biomass 
fuels? If so, can Japan provide further details, including the timing for such an update?  
 
RESPONSE  
The sustainability of biomass fuel for power generation has been required as the approval criteria 
under the FIT (Feed -in Tariff) in Japan. The sustainability criteria of biomass fuel for power 
generation has been under consideration by the working group which consists of experts in Japan, 
including the timing for update.  
 
Paragraph  4.140, page  159: 
It is noted that permission to engage in the electricity sector may be denied government approval 
on the grounds of "public order '.  
 
Question52  
Could Japan outline what is meant by "public order '? 
 
RESPONSE  
Industries such as electric and gas utility, water supply and railway transport could be those related 
to 'public order.' Whether it falls under the investment that would compromise public order is 
determined on a case -by-case basis.  
 
Part IV. Trade Policies by Sector: Servi ces; Financial Services  
Paragraph 4.155, box 4.1, page 164 -165: 
It is noted that in April 2019, the deposit cap for Japan Post -Bank was doubled, with a 
limit of JPY 13 million each for ordinary savings accounts and fixed -term deposit accounts.  
 
Question  53 
Could Japan elaborate on whether there is a plan to similarly increase Japan Post 
Insurance 's per -person deposit and coverage limits?  
 
RESPONSE  
There are no specific plans to increase the insurance limit at Japan Post Insurance.  
 
Paragraph 4.161, page 167: 
It is noted that a third sale of shares towards the privatization of Japan Post Holdings has 
not been decided yet.  
 
Question  54 
Could Japan elaborate on possible timelines for the third sale of Japan Post Holdings (JPH) shares in 
furtherance of the privatization of Japan Post Bank?  
 
RESPONSE  
Please refer to Para 4.161 in the Trade Policy Review Report by the Secretariat.  
 
Paragraph 4.162, page 167:  
It is noted that when Japan Post Holdings will have sold 50% or more of the shares o f 
JPB, the new business implemented by JPB will no longer be subject to approval but 
simply to the notification system.  
 
Question  55 
Could Japan elaborate on whether this notification process will apply uniquely to Japan Post Holdings 
or all banks in Japan ? 
 WT/TPR/M/397/Add.1  
 
- 202 - 
 
RESPONSE  
The notification system is applied only to Japan Post Bank and Japan Post Insurance.  
Part IV. Trade Policies by Sector: Agriculture, Forestry, and Fisheries; Services  
Paragraph 4.258, box 4.8, page 185 -186: 
It is noted that one of the main objectives of the regulations overseeing waste management services 
is to achieve a circular economy.  
 
Question  56 
Could Japan explain how recycling and waste management activities designed to increase circularity 
in Japane se supply chains will affect trade in raw materials.  
 
RESPONSE  
The main objectives of waste management and recycling policy are achieving a circular economy by 
limiting the volume of waste disposal; reducing the consumption of natural resources; and promoting 
sustainable use of resources to ensure healthy and cultured living for both the present and future 
generations. Regarding question No.56, recycling and waste management activities may have 
potential linkages with import and export of raw material s, but at the same time, the transition to 
the circular economy may bring new opportunities for utilization of raw materials. On this point, 
waste management and recycling policies are designed to avoid both setting unnecessary barriers 
to international tr ade and causing undesirable health and environmental effects.  
 
Government Report - Japan (G397)  
Part II. Trade and Investment Policy; Overview  
Paragraph 2.3, page 4:  
It is noted that Japan is aiming for the swift conclusion of RCEP negotiations among 16 countries.  
 
Question  57 
Will Japan proceed with its signature of RCEP without India or any one of the other 16 countries 
referenced?  
 
RESPONSE  
Japan has been working towards the signing of an RCEP Agreement by 16 countries by the end of 
this year, following the Joint Leaders ' Statement on the RCEP adopted on 4 November 2019 in 
Bangkok, Thailand.  
 
Part II. Trade and Investment Policy: Other Regional/Bilateral Ar rangements; Japan's 
Bilateral Activities  
Paragraph 2.20, page  9-10: 
It is noted that Japan and the United States reached a final agreement on the Japan -U.S. Trade 
Agreement and the Japan -U.S. Digital Trade Agreement in September 2019.  
 
Question  58 
Will Japan formally submit notification to the WTO of its agreements with the United States?  
 
RESPONSE  
Notification of the Japan -US Trade Agreement to the CRTA is under coordination with the U.S.  
 
Question  59 
What are the timelines for the second round of negotiations with the United States?  
 
RESPONSE  
Please refer to paragraph 3 of the Joint Statement of Japan and the United States on 25 September 
2019. (https://www.mofa.go.jp/mofaj/files/000520821.pdf)  
 
Question  60 
In the absence of outcomes from the secon d round of negotiations, is it Japan 's view that the Japan -
United States Trade Agreement is in compliance with WTO GATT Article XIV obligations?  
 
RESPONSE  
Paragraph 1 of Article 5 of the Japan -US Trade Agreement provides: "Further to the existing 
commitments by each Party under the WTO Agreement, unless otherwise provided for in this 
Agreement, each Party shall improve market access in accordance with Annex I or Annex II."  By the WT/TPR/M/397/Add.1  
 
- 203 - 
 
implementation of this provision, the tariff elimination covering sub stantially all the trade between 
the two countries will be achieved. On that basis, Japan is of the view that the Japan -US Trade 
Agreement is consistent with Article XXIV of GATT in itself.  
 
Question  61 
Is Japan considering measures to compensate its agricultural industry following the implementation 
of the Japan -United States Trade Agreement? If so, what type of measures?  
 
RESPONSE  
Japan is taking following measures in order to help mindful producers engaged in agriculture, 
forestry and fisheries:  
i) "Enhancement of robustness" to support productivity improvement through development and 
extension of smart technologies, block resizing of farmland, etc.  
ii) "Stabilization of management" to support financial stability for specific products, such as Maruki n 
described in section 4.54.  
  WT/TPR/M/397/Add.1  
 
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RUSSIAN FEDERATION  
REPORT BY JAPAN  (WT/TPR/G/397)  
 
2 TRADE AND INVESTMENT POLICY  
2.2 WTO  
2.2.2 Dispute settlement  
Page 5, para 2.10  
Observing the compliance with the WTO rules through dispute settlement is one of the most 
important and critical roles played by the WTO to maintain an open and fair multilateral trading 
system. Japan has actively engaged in the WTO dispute settlement mech anism to resolve disputes 
as both a party and a third party to a dispute. Japan continues to make best efforts towards the 
reform of the dispute settlement system, including the Appellate Body.  
 
Question 1  
Which initiatives with regard to the reform of th e dispute settlement system does Japan support? 
Will Japan participate in arbitration agreement in accordance with Article 25 of the DSU?  
 
RESPONSE  
Our priority has always been to achieve a long -lasting solution to the reform of the Appellate Body, 
which is not limited to an interim solution. Japan believes that it would serve a better functioning 
dispute settlement system and an ultimate goal of securing a positive solution to a dispute. From 
this perspective, Japan has actively contributed to the I nformal Process of solution -focused 
discussion on matters related to the functioning of the Appellate Body under the auspices of the 
General Council. Japan submitted a proposal regarding the reform of the dispute settlement system 
jointly with Australia on  17 April 2019 (WT/GC/W/768). Subsequently, Chile also participated in the 
proposal (WT/GC/W/768 /Rev.1). Japan stands ready to further proactively contribute to the 
discussion towards a better functioning dispute settlement system. In Japan 's view, any att empt to 
adopt measures of interim nature, including certain Members ' effort on arbitration agreement 
arrangement, must serve the ultimate purpose of finding a long -lasting solution to the functioning 
of the Appellate Body.  
 
4 JAPAN'S DOMESTIC POLICIES  
4.4 Competition Policy  
Page 14, para 4.4  
Japan has enacted the law for Partial Revision of the Payment Services Act, etc., to address the 
Diversification of Financial Transactions based on Advances in Information Technology (enacted on 
31st May 2019). The law intends to address greater diversification on financial transaction amid the 
development of the digital technology, and to enhance the credibility of financial function while 
securing user protection. The law stipulates regulations on crypto -asset Exchange  Service Providers, 
derivative /financing transactions using crypt -assets, and clearing a margin on OTC derivatives. The 
law also allows financial institutions to engage in the business of providing data held to a third party.  
 
Question 2  
Please specify regulatory regime for retail payment services, including regulatory framework, 
licensing criteria, capital requirements, prudential regulations, specific provisions etc.  
 
RESPONSE  
While there is not sole definition of retail payment services, busin ess operators have to comply with 
the relevant regulations on payments subject to its type of business. The regulations include the 
following:  
【E-money】 
Under the "Payment Services Act", e -money (electric money) and those issued for prepaid/pre -
loaded valu es fall within the category of prepaid payment instruments.  
Prepaid payment instruments are classified into the following two types:  
1． those which can be used for purchase of goods and services only from the issuer of prepaid 
payment instruments (prepaid payment instruments for own business); and  
2． those other than 1 (prepaid payment instruments for third -party business).  
*If the total amount of the outstanding balance of the prepaid payment instruments for one 's own 
business prescribed in 1 exceeds 10 mi llion yen on the record date (on March 31 and September 30 
every year), the issuer shall give notification to the Local Finance Bureau within two months from 
the record date.  WT/TPR/M/397/Add.1  
 
- 205 - 
 
*The issuer of the prepaid payment instruments for third -party business prescribe d in 2．shall 
register with the Local Finance Bureau in advance.  
 
(Funds Transfer Service ) 
When a person/an entity engages in exchange transactions equivalent to one million yen or less in 
the course of trade, registration as a funds transfer service provid er is required. For exchange 
transactions exceeding one million yen, a license for banking business pursuant to the "Banking Act" 
is required. Funds transfer service providers are subject to certain regulations, particularly those in 
which they are require d to preserve not less than 100% of the outstanding amount of funds that are 
in the middle of being transmitted or are pending by means of deposits.  
 
For further details, please look at the Payment Services Act.  
Tentative translation of the Act is available at:  
http://www.japaneselawtranslation.go.jp/law/detail/?id=3078&vm=04&re=01 . 
 
REPORT  BY THE SECRETARIAT  (WT/TPR /S/397)  
 
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.1 Growth, income, and employment  
Pages 17 -18, para 1.4  
Since 2016, the overall sectoral pattern of Japan's GDP and employment has remained virtually 
unchanged (Table 1.2). According to OECD data, the annual growth rate of multi -factor productivity 
in the economy was -0.05% (2014), 1.05% (2015), -0.02% (2016) and 1.20% (2017); the annual 
growth rate of labour productivity forecast stood at 0.99% (2014), 1.00% (2015), 0.99% (2016), 
1.00% ( 2017) and 0.99% (2018 and 2019). According to the OECD, since 2012, labour productivity 
growth has slowed to an annual pace of 1.0%; the Government set a goal to double productivity 
growth to 2% by 2020, including by promoting artificial intelligence and r obots, as well as measures 
for the Supply System Innovation under the 2017 New Economic Policy Package (Sections 2.1 and 
2.4.2). Furthermore, according to the OECD, despite a high level of public support for SMEs, in 
financial year (FY) 2017, productivity in large firms was 2.5 times higher than in SMEs in 
manufacturing, a large gap by international standards (Sections 1.1, 1.2.4.1, 1.2.4.3, 1.2.4.4 and 
3.3.1.2). Nevertheless, according to the World Economic Forum's Global Competitiveness report for 
2018, J apan was the world's fifth most competitive nation out of 140 countries (Section 2.4.2). 
According to United Nations Conference on Trade and Development (UNCTAD) estimates, in 2017, 
Japan ranked 19th (17th in 2010) among the world's 25 top exporting econom ies by global value 
chain (GVC) participation rate, as its average GVC participation growth was zero in the period 
2010-17 compared to 9% between 2000 and 2010; its GVC participation in exports (48%) stood 
below the average level of both the developed (60% ) and developing (56%) exporting economies.  
 
Question 3  
What are the reasons for low SMEs productivity in manufacturing compared to large firms? What 
measures should be implemented to change the situation in the manufacturing sector? What 
international opportunities can be open to SMEs in order to maximize their productivity?  
 
RESPONSE  
Factors in the difference between the productivity of SMEs and large companies in the manufacturing 
field are due to their aggressiveness in capital investme nt (IT investment) and the amount of 
investment. Japan will support efforts to improve productivity, such as capital investment, more 
efficient back -office operations, and expansion of sales channels, through the IT introduction subsidy 
and the sustaining subsidy, which were taken with the supplementary budget.  
 
1.3 Developments in Trade and Investment  
1.3.2 Trends and patterns in foreign direct investment (FDI)  
Pages 29 -30, para 1.26  
FDI is not only an additional source of capital. It is also considered to  bring with it entrepreneurship, 
management skills and, especially, new technology, which contribute to improved multi -factor 
productivity. Japan's inbound FDI stocks as a share of GDP (4% in 2016) are the lowest in the OECD, 
due to tradition -related chall enges in certain areas (e.g. mergers and acquisitions, corporate 
governance, and labour market rigidities) that are being addressed by the authorities. FDI inflows 
peaked at USD 19.4 billion in 2016 (Table 1.5). During the review period, inflows were large ly 
concentrated in the manufacturing of electric machinery, transportation equipment, and chemicals WT/TPR/M/397/Add.1  
 
- 206 - 
 
and pharmaceuticals, as well as in services, mainly finance and insurance (Tables 1.4 and 1.5); in 
2018, they originated mainly in the United States, the Ca yman Islands, the European Union and the 
Republic of Korea. The FDI inbound stock continued to rise steadily and was largely held by European 
Union investors (Table 1.7). Despite a decline in its share, the United States remains the second FDI 
stock -holder , followed by Singapore. Within the European Union, in 2017, the largest single stock 
holder remained the Netherlands, where around 80% of investment was in electrical machinery, 
followed by France, where over 70% of investment was in transportation equipm ent; around 80% 
of the stock from North America was in the non -manufacturing sector, with the majority in the 
finance and insurance industry.  
 
Question 4  
Are there any measures taken to compensate the "tradition -related challenges" in certain areas that 
negatively affect inbound FDI? Do you create any incentives, which offset existing problems and 
stimulate the inflow of FDI to Japan?  
 
RESPONSE  
While it is difficult to specify the measures that are taken to compensate the "tradition -related 
challenges", Japan established the Council for Promotion of Foreign Direct Investment in Japan to 
stimulate the inflow of FDI. For further information, please  see the website below.  
http://www.invest -japan.go.jp/en_index.html . 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Directly Affecting Production and Trade  
3.3.5 State trading, state -owne d enterprises (SOEs), and privatization  
Pages 96 -97, para 3.159  
During the review period, state involvement in the economy remained relatively unchanged. State 
trading entities continued to engage in leaf tobacco, opium, rice, wheat, barley and milk products. 
Major commercial SOEs include those operating in energy, fin ancial services, telecommunications 
and some transport -related activities. The State continues to wholly or partially own several 
companies, including large ones (Table 3.18), in the delivery of goods and services that the 
authorities believe would not be adequately provided by the private sector alone. Ownership is 
maintained either directly or via Incorporated Administrative Agencies (IAAs), which are public -
sector corporations with a separate legal personality; as at 1 April 2019, there were 87 IAAs (88 in 
2017). As at 31 December 2016 (latest data available), there was a total of 228 (234 in 2015) 
entities with government capitalization; the total amount of capitalization stood at JPY 76.0 trillion 
(JPY 80.1 trillion as at 31 March 2015). Based on the OE CD definition of SOEs, Japan identified 
1 majority -owned listed enterprise (Japan Post Holdings Co., Ltd, 218,312 employees, valued at 
USD 55.8 billion), 7 majority -owned non -listed enterprises (37,953 employees, valued at 
USD 26.5 billion), 2 minority SOE s (Japan Tobacco Inc.,  63,968 employees (as at 
31 December  2018) and Nippon Telegraph and Telephone Corporation, 303,350 employees (as at 
31 March 2019)) and no statutory corporations or quasi -corporations. In 2014, based on the OECD 
definition of SOEs, Ja pan had identified 26 SOEs: 2 minority -owned listed enterprises, 8 majority -
owned non -listed enterprises, and 16 statutory corporations or quasi -corporations.185 Market 
monopolies continue to be retained in domestic manufacturing of tobacco and the importa tion of leaf 
tobacco.  
 
Question 5  
What is the share of governmental participation in Japanese railway market, including infrastructure, 
rolling stock, hauling operations?  
 
RESPONSE  
Most railway companies in Japan are private, and most of them own both infrastructure and rolling 
stock and operate on their own. To be specific, there are 216 railway operators in Japan and three 
of them, JR Hokkaido, JR Shikoku, JR Freight, are held by J RTT, a governmental agency. Thirteen 
others are operated or owned by local government; Sapporo, Hakodate, Sendai, two in Tokyo, 
Yokohama, Nagoya, Kyoto, Osaka, Kobe, Fukuoka, Kumamoto and Kagoshima. Others are private 
companies. The total passenger -km in J apan is about 437 B (passenger -km, 2017) while the total 
passenger -km of those public -held companies is about 49 B (passenger -km, 2017), which means 
that most of the passengers are carried by private railway companies.  WT/TPR/M/397/Add.1  
 
- 207 - 
 
Page 97, table 3.18  
 
Question 6  
Why i sn't the Japan Railway Construction, Transport and Technology Agency added into the list of 
large state enterprises? What are the rules applicable to Agency 's operations? What is Agency 's 
influence over Japanese railway market?  
 
RESPONSE  
Although there is no precise definition of state -owned enterprises (SOEs) in Japan, in Table 3.18, 
Japan has provided information on "special public corporations" whose ratios of investment by the 
government is more than 50%. Although the revenue size of the Japan Railway Construction, 
Transport and Technology Agency (JRTT) is relatively large, it is not included in the list since it is an 
independent administrative agency, not a special public corporation. There is an original law for 
establishing JRTT, and its ope ration is based on the law. Its purpose is to establish a transportation 
system based on modes of mass transportation by constructing railways; to provide assistance for 
the development of railway infrastructure by railway companies, maritime transport com panies and 
others; and to provide other assistance so that JRTT can contribute to the stable development of the 
national economy and improvement of Japanese lifestyles. One of its main businesses is to construct 
new Shinkansen lines (High -speed Rail in Jap an). 
 
3.3.6 Government procurement  
Pages 99 -100, paras 3.164 -3.165  
3.164. As a party to the WTO Agreement on Government Procurement (GPA), Japan implements the 
GPA rules and other international agreements through: the Cabinet Order Stipulating Procedures for 
Government Procurement of Products or Specified Services; the Cabinet Order Stipulating 
Procedures for Government Procurement of Products or Specified Services in Local Governments 
Entities; and the Ministerial Ordinance Stipulating Special Procedures for Government Procurement 
of Products or Specified Services. To implement the Japan -EU EPA (Section 2.3.2 and below), the 
Cabinet Order Stipulating Procedures for Government Procurement of Products or Specified Services 
was revised on 19 Decemb er 2018 (Cabinet Order No. 340 of 2018) and the Cabinet Order 
Stipulating Procedures for Government Procurement of Products or Specified Services in Local 
Governments Entities on 21 and 27 December 2018 (Cabinet Order No.347 and No.353 of 2018). 
On 6 Novem ber 2016, with the agreement of other parties to the GPA, Japan withdrew the Kyushu 
Railway Company from its GPA schedule as the result of the privatization of the company.  
3.165. Many of the EPAs signed between Japan and its trade partners contain chapter s on 
government procurement (Section 2.3.2). During the review period, two more agreements with 
government procurement chapters were signed and subsequently came into force, namely the CPTPP 
(or TPP11) and the Japan -EU EPA. Japan's government procurement c ommitments under the CPTPP 
are roughly the same as its GPA commitments. While its undertakings under the Japan -EU EPA are 
built on its GPA commitments, the coverage of local government entities under this EPA is further 
expanded to local independent admini strative agencies.  
 
Question 7  
Can Japan elaborate more on preferences given to Japan and provided by Japan as part of the 
government procurement deal in railway sector within the EU -Japan FTA? Under which terms can 
Japan get access to the EU railway marke t and vice versa?  
 
RESPONSE  
Procurements of goods and services related to the operational safety of transportation by the entities 
listed in Japan's Annex 2 to Appendix I to the GPA covered by Note 4 to that Annex and the entities 
listed in Japan's Annex 3 to Appendix I to the GPA co vered by Note 3.a. to that Annex (Hokkaido 
Railway Company, Japan Freight Railway Company, Japan Railway Construction, Transport and 
Technology Agency, Shikoku Railway Company and Tokyo Metro Co., Ltd.) shall be open to suppliers 
of the European Union. Thi s commitment entered into force on 2 February 2020. The thresholds for 
the procurement by the entities listed in Japan's Annex 2 to Appendix I to the GPA are those set out 
in that Annex, while the thresholds for the procurement of goods and services (other  than 
construction services and architectural, engineering and other technical services) by the above -
mentioned five entities referred to in the first sentence of this paragraph are 400,000 SDR. As to 
the preference given to Japan by the EU in the railway sector, please refer to Paragraph 4 of Section 
A of Part 2 of Annex 10 of the Japan -EU EPA.  
 WT/TPR/M/397/Add.1  
 
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Page 100, para 3.166  
In addition to the market access commitments undertaken under the GPA and various EPAs, Japan 
maintains various "voluntary measures", the outc ome of bilateral negotiations with the United States 
in the past, to facilitate foreign suppliers' opportunities to access its government procurement 
markets. These access opportunities are applied at multilateral level. They included the lowering of 
the thresholds of contract value above which the procurement would be open to international 
competition, the extension of the period for tenderers to submit their tenders, and an increase in 
the number of procuring entities whose procurements are open to intern ational competition. 
However, due to the fact that the 2014 revised GPA has "caught up" with voluntary measures as 
compared to the GPA 1994, the benefits that can be drawn from these voluntary measures have 
become marginal. Details on the remaining value a dded of these voluntary measures is essentially 
of a procedural nature as indicated in the previous TPR Report of Japan.  
 
Question 8  
Japan refers to the so called "voluntary measures" providing easier government procurement 
access, in addition to Japan 's international obligations. Do such measures exist in relation to the 
railway sector and which measures, if any?  
 
RESPONSE  
The "voluntary measures" provide easier government procurement access in such areas as 
supercomputers and non -R&D satellites as sector -specific voluntary measures (Please refer to the 
Table 3.24 of WT/TPR/S/351/Rev.1.). However, there are no "voluntary measures" which apply 
specifically to the railway sector.  
 
Page 101, para 3.168  
Japan has no restrictions on the place of origin of  products or the nationality of suppliers in 
government procurement. The principle of non -discrimination is pursued in all procurement 
activities. However, there has been concern over the apparently low share of foreign companies in 
public procurement; it seems that this is partly due to non -regulatory barriers, the geographical 
distance from certain overseas markets, and a lack of knowledge of the local market. Foreign 
participation in government procurement is described in Tables 3.21 and 3.22.  
 
Question 9  
Japan notes that its government procurement market does not set origin -based restrictions. It also 
notes that the level of foreign procurement is quite low, which is connected, according to Japan, to 
geographical factors and bad market awareness . Which measures does Japan take to eliminate this 
barrier?  
 
RESPONSE  
In terms of GPA covered procurement, the central government announces in advance the annual 
schedule of its procurement and holds a seminar on Japan's government procurement for foreign 
entities and diplomatic corps stationed in Tokyo.  
 
Page 101, table 3.23  
 
Question 10  
According to information presented by Japan, foreign share in government procurement for railway 
vehicles and associated equipment amounts to 0.4% in 2017 and to 0 % in 2016. What is the reason 
for zero foreign share in railway government procurement sector, in Japan 's view? What is the reason 
for a minimal raise of share in 2017? We note that the previous Japan 's trade policy review indicated 
that foreign share in railway equipment government procurement amounted to 45.9% in 2014. What 
is the reason for such a substantial decrease?  
 
RESPONSE  
Japan has an "Operational Safety Clause" in the GPA, so Japanese railway operators do not have to 
procure railway vehicles and  associated equipment in compliance with the GPA. There was 
procurement from foreign suppliers in 2017. The GPA had applied to three big Japanese railway 
operators, JR East, JR West, and JR Central, and they have procured railway equipment from not 
only Ja panese suppliers but also foreign suppliers. However, they were delisted from Japan 's 
Appendix I to the GPA in 2014.  
 WT/TPR/M/397/Add.1  
 
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4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.2 Agricultural policy  
Pages 127 -129, paras 4 .7-4.11 
 
Question 11  
In July 2019, Japanese companies stopped any purchases of grain from the Russian Federation due 
to the African pig cholera breakout. Could Japan please elaborate further according to which 
legislative act this ban has been applied, as well as its correlation with the WTO rules, as well as 
with agricultural policies of Japan mentioned in the Report.  
 
RESPONSE  
The actions are of private contract nature. There is no import prohibition as official measures of 
Russian Federation grains due to African Swine Fever.  
 
  WT/TPR/M/397/Add.1  
 
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DOMINICAN REPUBLIC  
DOCUMENTO WT/TPR/S/397  
 
1 ECONOMIC ENVIRONMENT  
1.3 Developments in Trade and Investment  
1.3.2 Trends and Patterns in Foreign Direct Investment (FDI)  
Pág. 30  
Párrafo 1.27.  "Japan remains not only one of the major exporters of goods, but also of capital. 
Monetary easing in Japan and "search -for-yield" by Japanese investors continued to support FDI 
outflows and overseas diversification by institutional investors. FDI outflows p eaked in 2017 and 
then dropped by an overall 14.4% in 2018 (Table 1.5). Unlike inflows, during the review period, 
outflows were largely concentrated in services (communications, and finance and insurance) and 
manufacturing (chemicals and pharmaceuticals, a nd transportation equipment) (Table 1.5). At the 
same time, the main individual destinations were the European Union, the United States (albeit a 
decline) and the Cayman Islands. Similar to the inbound stock, the outward FDI stock continued 
to rise steadil y, with the United States and the European Union remaining the main destinations 
(Table 1.7). " 
 
Question  1  
¿Está interesado el gobierno de Japón en promover la IED en El Caribe? ¿Se visualiza un 
empresariado interesado en potenciar las inversiones de capital hacia la República 
Dominicana en un futuro cercano? ¿En algún sector en particular?  
 
RESPONSE  
At this time, Japan has no specific information about Japanese companies interest ed in investing in 
the Dominican Republic in the near future. Meanwhile, Japan is aware of the potential advantages 
of doing business in the Dominican Republic since it is located in the center of the Caribbean Sea; 
has good access to North America, Centra l America and South America, and especially to the North 
American market; and has the Dominican Republic -Central America FTA (CAFTA -DR). 
 
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and preferential agreements  
2.3.2.2 Preferential trade agreements (PTAs)  
Pág. 43  
Párrafo 2.26.  "Japan offers preferential tariff treatment to 128 developing economies and five 
territories under its GSP scheme. This includes all least developed countries (LDCs) who qualify for 
more extensive product coverage (98% of tariff lines) and duty -free and quo ta-free treatment. In 
2017, Japan notified to the WTO its preferential rules of origin for LDCs. Product coverage under the 
duty-free, quota -free scheme for LDCs and the GSP scheme is reviewed each year as part of the 
annual tariff revision. The GSP scheme  itself is revised every ten years, with the next revision in 
March 2021."  
 
Question  2 
¿Es posible conocer las revisiones arancelarias anuales del esquema de preferencias GSP, 
posteriores a las realizadas en 2017? ¿Pueden suministrarnos información sobre d icho 
esquema, con más detalle que la suministrada en el link https://www.customs.go.jp/ ? 
 
RESPONSE  
Please refer to 2.3.2.2 in the Trade Policy Review Report by the Secretariat and FAQs from 1501 to 
1508 on the following webpage.  
https://www.customs.go.jp/english/c -answer_e/customsanswer_e.htm . 
  WT/TPR/M/397/Add.1  
 
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MALAYSIA  
QUESTIONS FROM MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI)  
 
SECRETARIAT REPORT  
 
2.3.1 WTO  
 
Page 38  
 
2.13 Over the review period, Japan submitted several notifications under different WTO agreements 
(Table 2.2); notifications are outstanding in the areas of domestic support  in agriculture and 
government procurement.   
 
Question 1  
Could Japan update the information related to its domestic support policies for the agriculture sector?  
 
RESPONSE  
The most recent DS1 notification was made last year, including domestic supports in FY2016. The 
next DS1 notification is in preparation.  
 
Question 2  
When does Japan plan to submit its pending notification for domestic support?  
 
RESPONSE  
Please refer to the answer to Question1 from Malaysia  
 
3.3.1 Incentives  
 
Page 78  
3.88 Over the review period, new or revised  tax incentives  for companies were, inter alia, designed 
to: promote business investment by local SMEs, promote business succession of SMEs, and spur 
wage hikes and productivity, including through revisions to the tax system for R&D (Table A3.2).96 
Accordi ng to the authorities, no studies were undertaken over the review period on the effectiveness 
of tax (and non -tax) incentives.  
 
Question 3  
Malaysia would like to enquire whether the Japanese Government has any plans to review the current 
incentives scheme?  
 
RESPONSE  
Please refer to the link below regarding tax reform for FY2020.  
https://www.mof.go.jp/english/tax_policy/tax_reform/fy2020/02keyhighl ight.pdf . 
 
4.4.6 Distribution services with a specific focus on e –commerce  
 
Page 187  
 
4.275. Similarly, there are no GATS -type restrictions on e -commerce. There is no specific general 
regulatory framework for e -commerce. The main relevant laws deal with co nsumer protection and 
e-payments . The most significant among them is the Act on Special Provisions to the Civil Code on 
Electronic Consumer Contracts and Electronic Acceptance Notice (Act No. 95 of 29 June 2001). This 
Act provides special provisions to the  Civil Code (Act No. 89 of 1896) in cases where there are certain 
mistakes in the elements comprising an electronic consumer contract, or where an electronic 
acceptance notice is dispatched by a consumer under a contract made at a distance.109 The 
Consumer  Contracts Act (Act No. 61 of 12 May 2000) permits a consumer to rescind his/her intention 
to offer or accept a contract when s/he has misunderstood, or was distressed by, certain acts of the 
business operator. It also nullifies any clauses (in whole or in  part) that exempt business operators 
from liability for damages, or that otherwise unfairly harm the interests of consumers.  
 WT/TPR/M/397/Add.1  
 
- 212 - 
 
Question 4   
Can Japan elaborate more on the current regulation dealing with e -payments and  the challenges 
faced in its implementation?  
 
RESPONSE  
Regarding the e -payments, while there is no sole definition of e -payments, business operators have 
to comply with the relevant regulations subject to its type of business. The regulations include the 
following:  
 
E-money  
Under the "Payment Services Act", e -money (electronic money) and those are issued for 
prepaid/pre -loaded values fall within the category of prepaid payment instruments.  
Prepaid payment instruments are classified into the following two types:  
(1) those which can be used for purchase of goods and services only by the issuer of prepaid payment 
instruments (prepaid payment instruments for own business); and  
(2) those other than (1) (prepaid payment instruments for third -party business).  
* If the total amount of the o utstanding balance of the prepaid payment instruments for one 's own 
business prescribed in (1) exceeds 10 million yen on the record date (on March 31 and September 
30 every year), the issuer shall give notification to the Local Finance Bureau within two mo nths from 
the record date.  
* The issuer of the prepaid payment instruments for third -party business prescribed in (2) shall 
register with the Local Finance Bureau in advance.  
 
Funds Transfer Service  
When a person/entity engages in exchange transactions equ ivalent to one million yen or less in the 
course of trade, registration as a funds transfer service provider is required. For exchange 
transactions exceeding one million yen, a license for banking business pursuant to the "Banking Act" 
is required.  
Funds t ransfer service providers are subject to certain regulations, particularly those in which they 
are required to preserve not less than 100% of the outstanding amount of funds that are in the 
middle of being transmitted or are pending by means of deposits.  
 
Regarding the challenges, FSA recognizes the following:  
-Since funds transfer service providers ' scales and business models are very diverse, their internal 
control systems and risk profiles are also different. As the use of cashless payments improves furt her 
and the number of foreign users increases, new trends, such as entries of new providers, 
development of new services and significant changes in risks regarding fund transfer business, are 
expected.  
-In order to ensure that the services are appropriatel y provided and users are protected, it is 
important to further encourage providers to enhance business management and internal control 
systems which will enable them to respond to changes in the business environment and risks in a 
timely manner.  
 
To respon d to these, FSA is working on:  
- Analyzing the providers ' business models and usage by foreigners. Monitoring with a risk -based 
approach taking into account new business development and changes in risks.  
- Strengthening monitoring and dialogue with the pro viders for enhancement of their internal control 
systems particularly in the area of the maintenance management of remittance funds, IT system 
risk management, and AML/CFT with due consideration to each provider 's size and characteristics.  
 
1.4.7  Legal services  
Page 189  
 
4.283. There is no specific track or procedure for requalification of foreign lawyers, already qualified 
abroad, in Japanese law. The whole cursus  must be followed. In addition, a commercial presence  
in Japan is required. That may explai n why foreign lawyers almost never practice as bengoshi .  
 
Question 5   
Can Japan further elaborate the registration/licensing process for foreign lawyers in order to practice 
legal service in Japan? Are foreign lawyers allowed to employ or establish a part nership or joint legal 
services with Japanese lawyers ( bengoshi )? 
 WT/TPR/M/397/Add.1  
 
- 213 - 
 
RESPONSE  
A service supplier must be recognized as "Gaikoku -Ho-Jimu-Bengoshi  (Registered Foreign Lawyers)" 
by the Minister of Justice and register with the Japan Federation of Bar Associations. The conditions 
for granting recognition by the Minister of Justice are as follows:  
(a) The service supplier must be qualified as a lawyer in that jurisdiction.  
(b) The service supplier must have been engaged as a lawyer for at least 3 years in that jurisdiction.  
(c) The service supplier is not subject to such conditions of disqualification in that jurisdiction which, 
would disqualify the Ben goshi.  
(d) The service supplier possesses the intention to undertake the profession in good faith.  
(e) The service supplier must possess plans, residence and financial basis to perform his functions 
properly and steadily.  
(f) The service supplier must poss ess capability to compensate for damage caused to the client, if 
any. 
A Registered Foreign Lawyer or a Registered Foreign Lawyer Corporation and an Attorney at Law or 
a Legal Professional Corporation may jointly operate under a partnership contract or othe r 
continuous contract for the purpose of providing legal services.  
A Registered Foreign Lawyer or a Registered Foreign Lawyer Corporation can employ Japanese 
lawyers.  
 
GOVERNMENT REPORT  
 
2.2 WTO  
 
Page 5  
 
2.7. Strengthening and maintaining the multilateral  trading system, which forms the basis of global 
trade, is a main pillar of Japan's trade policy. Since the last review, Japan has always fully engaged 
in bringing about progress in the multilateral trading system under the WTO. While respecting the 
princi ples of openness, transparency, non -discrimination and inclusiveness, Japan is setting out to 
offer new ideas and approaches to advance the trade negotiations under the WTO. In the lead up to 
the successful conclusion of the 11th WTO Ministerial Conference  (MC11) in Buenos Aires in 2017, 
Japan has made significant contributions to the launch of the Joint Statement Initiative on Electronic 
Commerce based on the Joint Statement issued at MC11 (WT/MIN(17)/60). In this statement, 
signatories agreed to jointly i nitiate exploratory work toward future WTO negotiations on trade -
related aspects of electronic commerce. Japan, as a co -convener, has led exploratory work 
toward future WTO negotiations in 2018 . In January 2019, another Joint Statement 
(WT/L/1056) was issu ed in Davos, in which 76 WTO Members confirmed their intention to commence 
WTO negotiations on trade -related aspects of electronic commerce. As of December 2019, the latter 
Joint Statement has been joined by 82 Members, and building on that, the like -minde d Members 
have observed positive and effective progress in the negotiation. Furthermore, through the launch 
of the "Osaka Track"  at the sideline of the G20 Osaka Summit, Japan seeks to achieve a high 
standard agreement on trade -related aspects of e -commerc e with the participation of as many WTO 
Members as possible, aiming at achieving substantial progress by MC12.  
 
Question 6  
As the co -convener of the Joint Statement Initiative on Electronic Commerce, how does Japan see 
the process moving into Twelfth WTO Ministerial Conference (MC12) in Kazakhstan? What would be 
envisaged as an anticipated outcome in MC12?  
 
RESPONSE  
As stated  in the co -conveners' joint media release issued on 24 January, Japan agreed at the informal 
meeting of ministers on the WTO electronic commerce negotiations in Davos, along with other 
members participated in the meeting, to develop a consolidated negotiat ion text by MC12 and also 
affirmed its commitment to a high standard outcome with the participation of as many WTO 
members as possible. See: https://www.mofa.go.jp/mofaj/files/000560874.pdf  
 
Question 7  
Malaysia notes the launching of the Osaka Track at the sideline of the G20 Osaka Summit in Japan. 
Malaysia is interested to know how the Osaka Initiative works in parallel to the on -going JSI in 
developing digital trade rules?  
 WT/TPR/M/397/Add.1  
 
- 214 - 
 
RESPONSE  
The major purpose of the Osaka Track is to give political impetus to the WTO negotiations by the 
Leaders ' level for the first time and it will also contribute enriching existing endeavors by approaching 
digital economy from the following three viewpoints.  
1) discussing issues which need further intellectual works, to foster mutual understanding among 
WTO members participating in the on -going negotiations on electronic commerce at the WTO 
(hereinafter referred to as the "WTO negotiations");  
2) making best use of  the accumulation of the best experiences and knowledge conducive to the 
WTO negotiations, gained through expert discussions in international fora other than the WTO; and  
3) promoting holistic policy discussions on issues surrounding digital economy, not l imited to those 
covered under the WTO negotiations.  
Also, Japan add that the "Osaka Track" does not replace the JSI, nor does it intend to prejudge the 
WTO negotiations.  
 
2.5 Investment Policy  
 
Page 12  
 
2.5.1 Outlook  
2.35. The Working Group for Revising Re gulations and Administrative Procedures under the Council 
for Promotion of Foreign Direct Investment in Japan discussed issues impeding foreign investment 
in the economy and compiled the Final Report in 2017. In addition, the Council launched the Support 
Program for Regional Foreign Direct Investment  in Japan in 2018 to advance regional 
revitalization through FDI. In 2019, the Council adopted the Program to Intensively Attract Foreign 
Direct Investment in Regional Japan to strengthen the Support Program and  provide intensive 
support to priority local governments. In addition, the Japanese Government will work to further 
improve Japan's overall business environment. By following up the past plans and conducting those 
steadily, the Japanese Government aim to a chieve the goal of doubling the inward FDI stocks to JPY 
35 trillion by 2020.  
 
Question 8  
Malaysia is interested to know further on the Support Program for Regional Foreign Direct 
Investment?  
 
RESPONSE  
It is essential for municipalities of Japan to determine their regions ' strengths (such as unique 
industrial clusters, agriculture, forestry and fishery products and tourism resources) and to connect 
these strengths with sales channels, technologies, human resources and know -how of overseas 
companies. In May 2018, the Council  for Promotion of Foreign Direct Investment in Japan, a body 
organized by the government, decided to implement the support program (secretariat: Ministry of 
Economy, Trade and Industry (METI) and JETRO), which aims to advance efforts to attract overseas 
companies to regional areas of Japan in a strategic manner by taking advantage of the uniqueness 
of such areas. To this end, this program supports municipalities in developing their strategies and 
encourages them to effectively make use of related measures a nd advance specific activities for 
attracting overseas companies in accordance with the strategies by uniting the efforts of all 
ministries and agencies of the government. METI and JETRO have selected 28 successful 
municipalities to be supported under the support program so far, and they have supported the 
selected municipalities in formulating strategies that take advantage of regional strengths and in 
advancing specific activities for attracting overseas companies.  
 
3. Trade and Development  
 
Page 12  
 
3.1 Aid for Trade  
Japan's Development Initiatives for Trade  
3.3. Given the successful results of the above -mentioned first initiative, Japan announced a new AfT 
strategy, " Development Initiative for Trade 2009 " in July 2009. Its main pillar was USD 12 
billion of financial assistance for trade -related projects including trade, production and distribution 
infrastructure for 3 years from 2009 to 2011. During the designated period (2009 -11) of this 
initiative, the total sum of financial assistance amounted to USD 2 3.36 billion, which reached 195% 
of the target, well surpassing the amount of the first initiative. Despite the fact that no additional WT/TPR/M/397/Add.1  
 
- 215 - 
 
development initiative has been launched since then, Japan has continuously expanded its 
assistance. Since the adoption of the "Hong Kong Declaration" in 2005, Japan has provided 
approximately USD 72 billion worth of Aid for Trade related assistance as of 2017. This is 
representative of Japan's strong commitment to AfT, which Japan considers as important to help 
beneficiary  countries meet the new challenges they face in the regional and global economy.  
 
Question 9  
Can Japan elaborate further on the Japan Development Initiative for Trade and its benefits to other 
countries, for example, Malaysia?  
 
RESPONSE  
Japan announced th e "Development Initiative for Trade", prior to the WTO Ministerial Conference in 
Hong Kong, China in December 2005. This initiative featured: (a) implementation of Duty -Free and 
Quota Free Market Access for essentially all products originating from LDCs, ( b) provision of US$10 
billion of financial assistance including trade, production, and distribution infrastructure for three 
years (2006 -08), and (c) as part of (b), the exchange of a total of 10,000 trainees and experts in 
trade -related fields over the sa me period, the targets of which were fully achieved. During the 
designated period (2006 -08) of the initiative, the total sum of financial assistance amounted to 
US$17.66 billion, greatly exceeding the target at 177%.  
 
On 21 May 2015, Prime Minister Abe an nounced the "Partnership for Quality Infrastructure" on the 
occasion of the 21st International Conference on the Future of Asia, which was held in Tokyo. With 
this Partnership, the Government of Japan promotes "quality infrastructure investment" in 
collabo ration with other countries and international organizations. To that end, Japan and the 
strengthened Asian Development Bank will provide approximately US$ 110 billion for quality 
infrastructure development in Asia over the next five years. Subsequently, in  May 2016, at the 24th 
meeting of the Management Council for Infrastructure Strategy, Prime Minister Abe delivered an 
initiative titled "Expanded Partnership for Quality Infrastructure" which was directed toward the G7 
Ise-Shima Summit meeting 2016. Throug h the initiative, Japan will aim to provide financing of 
approximately 200 billion USD in the next five years to infrastructure projects across the world, 
including those for natural resources, energy, etc. In addition, at the G20 Osaka Summit in June 
2019, under Japan 's leadership, G20 countries endorsed the "G20 Principles for Quality 
Infrastructure Investment" which includes the elements of Japan 's priority such as openness, 
transparency, economic efficiency, and debt sustainability. Japan promotes the importance of 
Quality Infrastructure based on the G20 Principles, as a part of international standardization of 
Quality Infrastructure, in leaders and ministerial meetings related to G7, G20, UN, APEC, ASEAN, 
and so on.  
 
As for Japan's new Dev elopment Initiative for Trade, please refer to the website of the Ministry of 
Foreign Affairs of Japan ( https://www.mofa.go.jp/policy/economy/wto/min05/initiative.pdf ). 
 
As for Malaysia specific supports, please see the websites of JICA  
(https://www.jica.go.jp/malaysia/english/index.html ), JETRO (https://www.jetro.go.jp/malaysia/), 
and JBIC ( https://www.jbic.go.jp/en/index.html ). 
 
Question10  
Malaysia is interested to enquire whether the initiative will be extended further?  
 
RESPONSE  
Regarding the "Development Initiative for Trade", Japan continues to lead international discussion 
in order to implement and reflect on individual projects and disseminate and settle the G20 
Principles. Not limited to these initiatives, Japan continuously expands its supports; through the 
WTO alone, Japan contributes to the Doha Development Agenda Global Trust Fund, the Enhanced 
Integrated Framework Trust Fund, as well as the International Trade Center.  
 WT/TPR/M/397/Add.1  
 
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SECRETARIAT REPORT  
QUESTIONS FROM MINISTRY OF HEALTH (MOH)  
 
Page 111 -112 
 
3.3.7.3 International cooperation and harmonization  
 
3.200. The JPO also supports the development of IPRs  and systems in emerging and developing 
countries in Asia, the Pacific, Africa, and the Middle East, by collaborating with ASEAN, the African 
Regional Intellectual Property Organization (ARIPO), the Gulf Cooperation Council (GCC), and 
member country IP off ices both bilaterally and multilaterally. Its initiatives include providing training 
on examination practices, accepting trainees from other countries, supporting efforts to accede to 
international application systems (e.g. Madrid Protocol and Hague Agreem ent) and regional IP 
systems (e.g. ARIPO and African Intellectual Property Organization (OAPI)), cooperating in the 
revision and preparation of patent examination manuals and guidelines, and promoting the 
commercialization and awareness of IP and counterfe it products. The JPO coordinates particularly 
closely with ASEAN IP Offices, with which it executed a Memorandum of Cooperation in 2012.  
 
Question11  
With regards to quality patents examinations practices, does the Japan Patent Office consults with 
the Phar maceuticals and Medical Device Agency (PMDA) or Ministry of Health, Labour and Welfare 
(MHLW) on patents applications of pharmaceuticals?  
 
RESPONSE  
Based on Article 194(2) of the Japanese Patent Act, examiners can consult with the PMDA or MHLW 
if necessary . 
(Reference: Article 194(2) of the Japanese Patent Act)  
The Commissioner of the Japan Patent Office or the examiner may request the relevant 
administrative agency, educational institution or any other organizations to conduct an investigation 
that is nec essary to the examination.  
 
QUESTIONS FROM MALAYSIAN INVESTMENT DEVELOPMENT AUTHORITY (MIDA)  
SECRETARIAT REPORT  
 
2.4.1 Investment framework  
 
Page 48  
 
2.40. The Government's investment goals are to increase the inward FDI stock to JPY 35 trillion by 
2020. By end -2018, the inward FDI stock reached JPY 30.7 billion. Since its previous Review, the 
Council for Promotion of Foreign Direct Investment has conti nued to undertake initiatives to 
attract inward investment, through the 2016 Policy Package for Promoting Foreign Direct 
Investment into Japan  to Make Japan a Global Hub. Specific programmes were adopted. Firstly, 
the Support Program for Regional Foreign D irect Investment in Japan (Support Program) was 
adopted in May 2018. Under this Program, relevant ministries and agencies are to: help local 
governments formulate plans to attract foreign companies; provide support in matching foreign and 
local companies; advise local governments on the effective use of available measures to attract 
foreign companies; and advise foreign companies and local governments on regulations and 
administrative procedures. This Program is designed to ensure FDI inflows, which are cur rently 
concentrated in Tokyo, have broader geographical reach. Secondly, the Program to Intensively 
Attract Foreign Direct Investment in Regional Japan was adopted in April 2019; this Program includes 
strengthening of the Support Program, and efforts to fu rther improve Japan's business environment. 
Other programmes aimed at increasing the FDI stock are the Basic Policy on Economic and Fiscal 
Management and Reform 2017, a Council on Economic and Fiscal Policy initiative decided by the 
Cabinet, the Japanese R evitalization Strategy 2016, and the Cabinet's 2019 Growth Strategy 
(Section 1).  
 
Question 12  
What are the main areas promoted under the initiatives to attract inward investment, through the 
2016 Policy Package for Promoting Foreign Direct Investment into Japan?  
 WT/TPR/M/397/Add.1  
 
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RESPONSE  
There are no specific areas promoted in the 2016 Policy Package.  
 
2.4 Investment Regime  
 
2.4.1 Investment framework  
 
Page 49  
 
2.42. From a domestic perspective, Japan considers that there is a strong need for tax and 
investment -related treaties to support and protect its increasing levels of investment abroad, and to 
encourage investment into Japan. Guided by the Action Plan Aimi ng to Facilitate an Investment 
Environment  Through Promoting the Conclusion of Investment -Related Treaties, formulated in 
2016, the Government plans to accelerate the conclusion of investment -related treaties and the 
revision of existing ones; its target i s to have in force investment -related treaties with 100 countries 
and regions by 2020. It is also considering inclusion of trade in services and e -commerce in these 
agreements, to reflect economic and social developments.  
 
Question 13  
What types of facilit ation services are offered by the government in the Action Plan Aiming to 
Facilitate an Investment Environment?  
 
RESPONSE  
"The Action Plan Aiming to Facilitate an Investment Environment through Promoting the Conclusion 
of Investment -Related Treaties" is a basic guideline for accelerating the conclusion of investment -
related treaties including the revision of existing treaties.  
  WT/TPR/M/397/Add.1  
 
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THAILAND  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 2. Trade and Investment Regimes  
 2.4 Investment Regime  
Paragraph 2.42 (Page 49)  
From a domestic perspective, Japan considers that there is a strong need for tax and investment -
related treaties to support and protect its increasing levels of investment abroad, and to encourage 
investment into Japan. Guided by t he Action Plan Aiming to Facilitate an Investment Environment 
Through Promoting the Conclusion of Investment Related Treaties, formulated in 2016, the 
Government plans to accelerate the conclusion of investment -related treaties and the revision of 
existing  ones: its target is to have in force investment -related treaties with 100 countries and regions 
by 2020. It is also considering inclusion of trade in services and e -commerce in these agreements, 
to reflect economic and social developments.  
 
Question1  
The investment goal of Japan is to increase the inward FDI stock to JPY 35,000,000 by 2020. 
Therefore, Japan considers that there is a strong need for tax and investment -related treaties to 
support and protect its increasing levels of investment abroad, and to  encourage investment into 
Japan. Which countries and regions that Japan plans to conclude the investment related treaties 
within 2020? What are the elements that Japan want to revise regarding the existing investment -
related treaties? Could Japan elaborat e more on the inclusion of trade in services and e -commerce 
in investment -related treaties regarding additional elements? Lastly, how would this help to promote 
the FDI in Japan and protect Japan 's outward investment?  
 
RESPONSE  
Japan promotes negotiations on investment -related treaties based on "The Action Plan Aiming to 
Facilitate an Investment Environment through Promoting the Conclusion of Investment -Related 
Treaties." Japan expects that the conclusion of such investment -related treaties wil l contribute to 
protect Japan 's outward investment including overseas operation of Japanese companies by 
improving transparency of the investment environments, legal stability and predictability in 
negotiating countries.  
 
3. Trade Policies and Practices b y Measures  
3.1 Measures Directly Affecting Imports  
Paragraph 3.2 (Page 52)  
The report by Secretariat states that "The Customs Act remains the principal piece of legislation 
covering customs procedures and documentation. Over the review period, amendments t o the 
Customs Act in 2017 and 2018, inter alia, integrated a new principle regarding reporting on matters 
related to cargoes in electromagnetic records, and strengthened penalties for failure to obtain export 
and import permissions when required . Other reg ulations governing customs procedures are: 
Cabinet Order No. 150 of 1954 (Order for Enforcement of the Customs Act) and the Ministry of 
Finance Ordinance for Enforcement of the Customs Act (No. 55 of 1966)."  
 
Question2  
It would be appreciated if Japan coul d kindly clarify the detail of strengthened penalties for failure 
to obtain export and import permission when required.  
 
RESPONSE  
In recent years, gold smuggling aimed at evasion of import consumption tax has sharply increased. 
This indicates that the former penalties for unauthorized importation were not adequately effective 
in preventing gold smuggling. Therefore, to enhance the ef fectiveness of preventing gold smuggling, 
the amount of the fines for unauthorized importation was raised.  
 
3. Trade Policies and Practices by Measures  
3.2 Measures Directly Affecting Exports  
Paragraph 3.74  (Page  74) 
The report by Secretariat indicates that "JETRO established the Japan Agricultural and Foodstuff 
Exports as a new service in its Trade Tie -up Promotion Programme; this provides an Internet 
matching services for Japanese agricultural and food products. In the same year, it also esta blished 
the Japan Food Product Overseas Promotion Center, in order to promote branding and marketing of WT/TPR/M/397/Add.1  
 
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Japanese agricultural, forestry, fishery and food products in overseas markets. Since 2019, JETRO 
has strengthened its support to promote innovation, ex pansion of Japanese start -ups overseas, and 
inward FDI in Japan, corresponding to global acceleration of cutting -edge technologies and the digital 
economy."  
 
Question3  
Please share the outcome of the internet matching services for Japanese agricultural and  food 
products.  
 
RESPONSE  
Since JAFEX started, about 710 selling offers and 180 buying offers are registered on average. As of 
the end of January 2020, the numbers of registrations for each product category are as shown in 
the table below. On this system, about 180 messages for the registered matter are exchanged per 
month.  
 
Product Category  The Numbers of Registrations  
Selling Offer  Buying Offer  
Processed Food  379 73 
Beverages, Water  79 11 
Alcoholic Beverage  51 14 
Livestock and Their Products  25 11 
Rice 26 5 
Fruits and Vegetables  43 6 
Ornamental Plants  7 0 
Forestry Products  31 11 
Fishery Products  120 44 
Others  46 18 
Total 807 193 
 
3. Trade Policies and Practices by Measure  
3.3 Measures Directly Affecting Production and Trade  
3.32 Standards and other technical requirements  
Paragraph 3.118 (Pages 85 -86) The Food Labelling Standard covers all food and drink sold in 
Japan. Importers are responsible for ensuring that their products are properly labelled (standard -
compliant product label ling is not required at the time of customs clearance). An amendment to the 
Food Labelling Standard in September 2017 (Cabinet Office Ordinance No. 43 of 2017) introduced 
the requirement to indicate on the label the place of origin of the heaviest ingredie nt of those 
contained in the final product; this applies to all processed foods domestically produced and sold, 
with the exception of a few items, for which separate standards apply. There is a transition period 
for compliance, which ends in 2022. Previous ly, the requirement was for specified processed foods 
to be labelled with the place of origin of the heaviest ingredient, provided it was over 50% of the 
product's weight. For imported processed foods, the country of origin of the product must be labelled 
(labelling the place of origin of ingredients is not required). In May 2018, a further amendment to 
the Standard introduced a new labelling method for aseptic filling tofu; introduced labelling 
requirements for fungicides used for food; expanded the foods for which fungicides (fludioxonil) can 
be used; and provided for "Mortadella Bologna" to be labelled as "Bologna sausage" as the generic 
term of the product.  
 
Question 4  
Does Japan have any English version of documents or guidelines for food labelling standard for 
foreign exporters? It is clearly stated that importers are responsible for ensuring that the products 
are properly labelled under The Food Labelling Act. However, the exporters sometimes need to 
participate in preparing the labels an d packaging  which requires an understanding of the food 
labelling standard.  
 
RESPONSE  
Japan does not have any English version of documents or guidelines for Food Labelling Standard.  
 WT/TPR/M/397/Add.1  
 
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3. Trade Policies and Practices by Measures  
3.3 Measures Directly Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary (SPS) requirements  
Paragraph 3.129  (Page 88 ) 
Under the Act, the MHLW is responsible for establishing MRLs for agricultural chemicals (pesticides, 
feed additives and veterinary drugs).  Foreign countries may apply to the MHLW to establish or revise 
MRLs for newly approved agricultural chemicals used in/on foods exported to Japan. In this regard, 
an application must be made to the MHLW, and risk assessments are undertaken by the FSCJ. Som e 
concerns were expressed about the length of the review process for the registration of new pesticides 
and the establishment of MRLs. In this connection, Japan indicated that it has decided to streamline 
an approval process for pesticides and food additiv es by utilizing a unified application and 
deliberation process. Notifications on standard processing periods are published online. For items 
where no MRLs have been established, Japan maintains a positive list system for agricultural 
chemicals, so as to ge nerally prohibit the distribution of foods that contain agricultural chemicals 
above a certain level. As indicated by the authorities, when violations of MRL standards are found in 
imported foods, Japan clarifies the increased surveillance measures for the  targeted food and the 
requirements for lifting them. In so doing, it takes in consideration the test results and the status of 
control for pesticide residues in the exporting country; measures are based on the relevant Codex 
guidelines, and try to minimiz e the burden on the exporting country. Since Japan's previous Review, 
the following standards of pesticide residues and additives in food have been established, revised or 
revoked: colistin sulfate and virginiamycin; salinomycin; L -carnitine; alkaline prot ease; 
chlorpropham; and guanidinoacetic acid.  
 
Question 5  
During the establishment or revision of MRLs for agricultural chemicals, does Japan conduct any 
analyses or predictions  of the effects of the establishment/ revision of MRLs will have on currently 
imported commodities to Japan?  
 
RESPONSE  
Japan does not conduct any analyses of the effect on current trade. However, Japan revises MRLs if 
stakeholders provide the data when they were informed about a proposal for the revision of MRL 
through the public co mment procedure or WTO SPS notification.  
 
4. Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
Paragraph 4.1.1.5.3.1 (Page 138)  
In September 2017, the Government introduced the Rice Overseas Market Expansion Project, to 
mitigate the impact of decreasing domestic rice consumption on farmer's incomes. 30, A JPY 60 
billion target was set for exports of rice and rice products for calendar year 2019, to be achieved 
through enhanced links between three groups: (i) exporters working on the strategi c expansion of 
rice exports ("strategic exporters"); (ii) businesses working on the stable production of rice for 
export, which include rice producers and collecting organizations/groups ("strategic production areas 
for export"); and (iii) strategic export ers' target export destinations (China; Chinese Taipei; Hong 
Kong, China; Macau, China; Singapore; Thailand; Viet Nam; Malaysia; Mongolia; the United States; 
Canada; the European Union; Switzerland; Australia; the Russian Federation; the Middle East; and 
India). Government assistance includes support to attend some international exhibitions to promote 
Japanese rice products, and the organization of some matching events between producers and 
exporters.  
 
Question 6  
Is there any other governmental assistance for rice export besides supporting businesses to attend 
international exhibitions in order to promote Japanese rice products and business matching 
activities? Are there any programs such as mandatory production for export or tax benefits for 
exporters and producers of rice?  
 
RESPONSE  
The MAFF has encouraged the export of rice by releasing the list of motivated exporters and 
producers to promote matching between production areas and exporters. There are no programs 
such as mandatory production for  export or tax benefits for exporters and producers of rice.  
 WT/TPR/M/397/Add.1  
 
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4. Trade Policies by Sector  
4.4 Services  
4.4.6 Distribution services with a specific focus on e –commerce  
Paragraph 4.275 (Page 188)  
Similarly, there are no GATS -type restrictions on e -commerce. There is no specific general regulatory 
framework for e -commerce . The main relevant laws deal with consumer protection and e -payments. 
The most significant among them is the Act on Special Provisions to the Civil Code on Electronic 
Consumer Contracts and E lectronic Acceptance Notice (Act No. 95 of 29 June 2001). This Act 
provides special provisions to the Civil Code (Act No. 89 of 1896) in cases where there are certain 
mistakes in the elements comprising an electronic consumer contract, or where an electron ic 
acceptance notice is  dispatched by a consumer under a contract made at a distance. The Consumer 
Contracts Act (Act No. 61 of 12 May 2000) permits a consumer to rescind his/her intention to offer 
or accept a contract when s/he has misunderstood, or was d istressed by, certain acts of the business 
operator. It also nullifies any clauses (in whole or in part) that exempt business operators from 
liability for damages, or that otherwise unfairly harm the interests of consumers . 
 
Question 7  
According to the report, Japan has no specific general regulatory framework for   e -commerce but 
has relevant laws and regulations to regulate various issues including e -payments. Does Japan plan 
to enact any specific legal framework to accommodate the development of e -commerce in the 
future?  
 
RESPONSE  
In February 2020, The Ministry of Economy, Trade and Industry has submitted a new bill on 
improving transparency and fairness of specified digital platforms to the Diet.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
2. Trade and Investment Policy  
2.4 Other Regional/ Bilateral Agreements  
Paragraph 2.20 - 2.21 (Pages 9 -10) 
The report by Japan states that "Following this leaders' decision, Japan and the United States held 
bilateral negotiations, including eight ministerial -level negotiations between Minister Motegi and 
Ambassador Lighthizer in approximately five months. At th e summit meeting in September 2019, 
the two leaders confirmed that the both sides reached final agreement on the Japan -United States 
Trade Agreement and the Japan -United States Digital Trade Agreement. Those agreements were 
signed in October and approved b y the Japan's Diet in December 2019. Japan and the United States 
are conducting their domestic procedures respectively, aiming at the early entry into force of the 
agreements."  
 
Question 8  
• Does Japan -United States Trade Agreement serve as a part of negot iation related to U.S. concerns 
about the imports of automobiles and certain automotive parts which the President has instructed 
the U.S. Trade Representative (USTR) to negotiate agreements with Japan and others?  
• Do Japan and the U.S. have any plan to fu rther negotiate a trade deal regarding trading in 
automobiles and parts in the near future?  
 
RESPONSE  
As for the first question, the Japan -US Trade Agreement is not related to the U.S. President 's 
instruction on the imports of automobiles and certain autom otive parts.  As for the second question 
on further negotiations, please refer to paragraph 3 of the Joint Statement of Japan and the United 
States on 25 September 2019. ( https://www.mofa.go.j p/mofaj/files/000520821.pdf ). 
 
2. Trade and Investment Policy  
2.5 Investment Policy  
Paragraph 2.36 (Page 12)  
Japan has actively promoted the conclusion of investment agreements as they create stable, 
equitable, favourable and transparent conditions for greater investment through the removal of 
barriers to investment and provision of investor protections. In the J apan Revitalization Strategy, 
the Japanese Government set the goal of signing and/or achieving entry into force of investment -
related agreements (investment agreements and economic partnership agreements with investment WT/TPR/M/397/Add.1  
 
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chapters) covering 100 countries/reg ions by 2020. As of November 2019, Japan has 
concluded/signed investment -related agreements with 76 countries and regions.  
 
Question 9  
Japanese Government sets the goal of signing and/or achieving entry into force of investment -
related agreements covering  100 countries/regions by 2020. What are the criteria that the Japanese 
Government has adopted in selecting country/region to be the partner for an Investment -related 
Agreement?  
 
RESPONSE  
"The Action Plan Aiming to Facilitate an Investment Environment thro ugh Promoting the Conclusion 
of Investment -Related Treaties" lists four main criteria for selecting countries to negotiate. (1) 
Investment performance and prospects of increase in investment from Japan to partner 
countries/regions, (2) Request from the Jap anese industry, (3) Consistency with Japanese diplomatic 
policy, (4) Needs and situations of partner countries/regions.  
  WT/TPR/M/397/Add.1  
 
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NEW ZEALAND  
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/397)   
 
SECTION 2: TRADE AND INVESTMENT REGIMES  
2.3.2 Regional and preferential agreements  
2.3.2.1 Regional Trade Agreements  
WT/TPR/S/397, page 41  
Paragraph 2.16 of the Secretariat's report notes that Japan signed the Japan -United States Trade 
Agreement, eliminating or reducing tariffs on certain agricultural and industri al products.  
Questions  
• 1. When will Japan notify the WTO Committee on Regional Trade Agreements of the Japan -
United States Trade Agreement?  
RESPONSE  
Notification of the Japan -US Trade Agreement to the CRTA is under coordination with the U.S.  
• 2. What is Japan's plan and timetable for completing a comprehensive trade agreement with the 
United States, as required by GATT Article XXIV?   
RESPONSE  
Article 5 of the Japan -US Trade Agreement provides: "Further to the existing commitments by each 
Party under the W TO Agreement, unless otherwise provided for in this Agreement, each Party shall 
improve market access in accordance with Annex I or Annex II. "By the implementation of this 
provision, the tariff elimination covering substantially all the trade between the two countries will be 
achieved. On that basis, Japan is of the view that the Japan -US Trade Agreement is consistent with 
Article XXIV of GATT in itself.  
For further negotiations, please refer to paragraph 3 of the Joint Statement of Japan and the United 
States on 25 September 2019. ( https://www.mofa.go.jp/mofaj/files/000520821.pdf) . 
SECTION 3: TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.4 Tariffs  
3.1.4.1 MFN applied tariff  
WT/TPR/S/397, page 55 
Paragraph 3.22 of the Secretariat's report notes that "The structure of Japan's MFN applied tariff 
remains complex, with a total of 272 tariff rates (same as in FY2016); there are 136 different ad 
valorem  rates, 75 different specific rates, 29 different  alternate rates, and 24 different compound 
rates, as well as 8 different other types of duty".  
Questions  
• 3. What steps has Japan taken to simplify its tariff structure?  
RESPONSE  
In the process of the tariff revision, Japan has often merged tariff lines. In 2017, for example, several 
tariff lines were merged with regard to toys as well as sanitary goods in order to reduce the burdens 
on importers and custom brokers. Furthermore, in 2018, Japan reduced 105 lines in total in Japan's 
tariff schedule fr om Chapter 61 to 63 (textile products).  
 
• 4. What steps does Japan intend to take to simplify its tariff structure?   
RESPONSE  
Japan does not have such a simplification plan.  
 
• 5. What plans, or regular programmes, are in place to review applied tariff levels ? WT/TPR/M/397/Add.1  
 
- 224 - 
 
RESPONSE  
The changes of tariff rates are determined comprehensively from several points of view, including 
import demand and the status of ongoing FTAs. As for Japan's plans concerning possible changes in 
its tariff policy, the Government of Japan cannot  announce the changes in advance, which would 
otherwise prejudge those points.  
Please refer to the following URL for the schedule of the annual tariff revision process,  
https:// www.customs.go.jp/english/c -answer_e/sonota/9702_e.htm . 
 
• 6. What policies are in place that would allow Japan to increase or lower its applied tariffs in 
general or in specific circumstances?   
 
RESPONSE  
The changes of tariff rates are determined comprehen sively from several points of view, including 
import demand and the status of ongoing FTAs. As for Japan's plans concerning possible changes in 
its tariff policy, the Government of Japan cannot announce the changes in advance, which would 
otherwise prejudg e those points.  
Please refer to the following URL for the schedule of the annual tariff revision process,  
https://www.customs.go.jp/english/c -answer_e/sonota/9702_e.htm . 
 
SECTION 4: TRADE POLICIES BY SECTOR  
4.1 Agriculture and Fisheries  
4.1.1.2 Agricultural Policies  
WT/TPR/S/397, pages 128  
 
Paragraph 4.8 of the Secretariat report notes that in May 2016 the Ministry of Agriculture Forestry 
and Fisheries developed the Strategy to Promote Exports of Agriculture, Forestry, Fisheries Products 
and Foods.  
 
Questions:  
• 7. How has Japan carried this strategy out?   
RESPONSE  
The Government established "the Plan for Empowering Export on Agriculture, Forestry and Fisheries" 
in May  2016 to support agricultural, forestry, fishery and food businesses in several measures, for 
example:  
− establish the Headquarters for Export of Agricultural, Forestry and Fisheries Products and 
Food to further improve the domestic export -related procedures , such as the issuance 
procedures for various certificates;  
− enhance the consulting and advice systems of Japan External Trade Organization (JETRO) 
and the overseas promotions of Japan Food Product Overseas Promotion Center (JFOODO);  
− provide the farmers, fi shermen, foresters and food manufactures who intend to export their 
products overseas with supports such as export diagnosis and market information through 
the meetup and the community website.  
 
As a result, the total value of exports of Japanese agricultu ral, forestry and fisheries products and 
foods reached JPY 912.1 billion in 2019.  
 
• 8. Can Japan provide an update on how this strategy is progressing?   
RESPONSE  
Please see the response  to question 7.  
Paragraph 4.9 notes that in 2017 Japan released a Policy  package for enhancing the competitiveness 
of Japan's farmers through 13 actions, including through reducing the price of farming inputs and 
the introduction of a revenue insurance system.  
 
Questions  
• 9. Can Japan provide further information on how the price of farming inputs will be reduced and 
specify the farming inputs targeted?   
 
RESPONSE  
Recognizing the importance to promote cost reduction of agricultural production in order to raise the 
farmers' income, Japan promotes business restructuring or entry into a business against agricultural WT/TPR/M/397/Add.1  
 
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production -related business, based on the "Act on the  Support for Strengthening Agricultural 
Competitiveness'.  
Accordingly, Japan has been certifying business restructuring plans and business entry plans, 
allowing the relevant enterprises to receive financial supports based on the certified plan.  
The eligib le farming inputs are, fertilizers, agricultural chemicals, animal feed, agricultural machines, 
seeds and seedlings.  
 
• 10. Can Japan provide further information about the revenue insurance system provided to 
farmers?   
 
RESPONSE  
Regarding the details of the revenue insurance system, see paragraph 4.30.  
WT/TPR/S/397, pages 128 -129 
Paragraph 4.11 outlines a number of changes to Japan's agricultural policies including increased 
support for domestic beef and pork producers and a new type of residency status for f oreigners in 
sectors that need more workers, including the agricultural sector, implemented April 2019.  
Questions  
• 11. Can Japan provide further detail on the increased support offered to beef and pork 
producers?   
RESPONSE  
Regarding the details of supports for pork producers, see paragraph 4.54. For the supports for beef 
producers, the payment for beef covers 90% of the cost gap and beef producers pay 25% (no 
change) of the grant amount from the reserve fund.  
 
• 12. How many foreign nationals have been granted residency status to work in Japan's 
agricultural sector since the implementation of this policy?   
RESPONSE  
292 foreign residents have been granted residency status to work in the agricultural sector as of 
December 2019.  
 
• 13. What impact has the introduction of the new type of residency status had on increasing labour 
supply, particularly the agricultural sector?   
RESPONSE  
Certain sectors had difficulties to secure stable human resources, including agriculture, fishery, food 
and drink manufacturin g industry, and restaurant industry. With the new type of residency status, 
more supply of labour with expertise and technique has become available to these sectors.  
The number of such expertised foreigners has been steadily increasing since April 2019 and  is 
expected to further increase as the initial challenges are properly addressed for the system . 
 
4.1.1.4 Trade policies and border measures  
WT/TPR/S/397, page 130  
Paragraph 4.20 notes that the simple average tariff on agricultural products has increased to 17.9% 
in FY2019 from 16.3% in FY2016, and that tariffs on agricultural products are higher than tariffs on 
non-agricultural products, with an average of 17.9% for the former and 3.5% for the latter. Tariffs 
also vary considerably between agricultural pr oducts with less than one quarter of products being 
duty-free and a maximum tariff of 499.7%.  
Questions  
• 14. What steps has Japan taken to simplify and adjust its agriculture tariff structure, given the 
complex agricultural tariff system and increased avera ge agricultural tariff?  
RESPONSE  
Japan's tariff structure for agricultural products is fully transparent and predictable and is set out in 
Japan's Tariff Schedule (publicly available).  
No changes have been made to the MFN rates of agricultural products from FY2016 to FY2019. While 
Japan has not been fully informed of how the Secretariat calculated to obtain the average tariff rates 
in the report, seemingly AVEs were calculated for non -ad valorem  duties and the reason for the WT/TPR/M/397/Add.1  
 
- 226 - 
 
identified changes could be the changes in prices of the goods in question (not the changes in applied 
tariff rates itself).  
• 15. What steps does Japan intend to take to simplify and adjust its agriculture tariff struc ture?  
RESPONSE  
Japan does not have any intention to change its tariff structure at least for the time being.  
 
• 16. What plans, or regular programmes, are in place to review applied agriculture tariff levels?  
RESPONSE  
Please refer to the following URL as of the schedule of annual tariff revision process,  
https://www.customs.go.jp/english/c -answer_e/sonota/9702_e.htm . 
• According to paragraph 4.21 government measures will ensure domestic production volumes 
and farmer's incomes in the agricultural, forestry and fisheries sectors will be maint ained through 
government measures, despite the estimated impact of the CPTPP and Japan -EU EPA.  
Questions  
• 17. What government measures will Japan make to maintain production volumes and farmer's 
incomes?   
RESPONSE  
Japan is taking following measures in orde r to help mindful producers engaged in agriculture, 
forestry and fisheries with ease:  
i) "Enhancement of robustness" to support productivity improvement through development 
and extension of smart technologies, block resizing of farmland among others.  
ii) "Stabili zation of management" to support financial stability.  
 
Japan's domestic support policy is consistent with the relevant WTO agreements.  
 
• 18. Has Japan considered whether these measures will distort trade?  
RESPONSE  
Please see the response  to Question 17.  
WT/TPR/S/397, section 4.1.1.4 p.132, para 4.24  
The Secretariat report notes "The method of administering TRQs  varies from one item to another, 
although the competent authority for administering for all but one quota is the MAFF (the exception 
being "designated dairy products for general use", where the competent authority is the Agriculture 
Livestock Industries C orporation, a state trading enterprise). One quota (prepared edible fat) is 
partially allocated to a supplying country. Under all methods, the applicant for an allocation must 
meet criteria, such as end -use requirements, record as an importer, or planned u sage. There were 
no substantive changes to quota administration methods since 2009."  
Questions  
• 19. As this statement indicates the quota system Japan administers is complex. Does Japan 
have any intention to change this?   
RESPONSE  
Japan's tariff structure for agricultural products is fully transparent and predictable. Regarding the 
details of TRQ administration, please refer to MA1 notification.  
The main reason seems decreased domestic demand. There might be other reasons but not id entified 
specifically.  
• 20. As noted on p.132, paragraph 4.23, there is significant variations in fill rates in tariff quotas 
varying from 23.4% to 305.6%. Authorities have indicated that low fill rates for some products 
were mainly due to decreased domesti c demand. What other factors have contributed to the low 
fill rates?   
RESPONSE  
Please see the response to Question 19.  WT/TPR/M/397/Add.1  
 
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4.1.1.5.2 Support Levels  
WT/TPR/S/397, section 4.1.1.5.2.2 p.137, para 4.37  
The secretariat report notes "as reported by the OECD, suppor t to producers remains high, at 2.5 
times higher than the OECD average. According to OECD calculations, market price support remains 
the main element of producer support, and is mainly sustained by border measures, for rice, pork 
and milk."  
Questions  
• 21. Please explain what structural reforms Japan is planning to undertake over the next 5 year 
intended to reduce the trade -distorting forms of support currently provided to Japan's agriculture 
sector?   
RESPONSE  
Based on the result of the Uruguay Round negotiations, Japan has revised its market price support 
policies and introduced and expanded direct payments. Japan will continue to consider structural 
reform taking into account the agricultural situation in Japan, in accordance with the WTO Agreement 
on Agriculture.  
 
SECTION 4.1.2 Fisheries  
WT/TPR/S/397, page 148, table 4.15  
Table 4.15 on page 148 sets out the list of fisheries subsidies notified by Japan in July 2019 for 
FY2016 and FY2017.  
Questions  
• 22. New Zealand commends Japan for demonstrating transparency and commitment to the 
Buenos Aires Ministerial Statement on fisheries subsidies. How does Japan intend to ensure that 
its fisheries subsidies do not contribute to illegal, unreported and unregulated fishing; or to 
overfishing and  overcapacity consistent with the United Nations Sustainable Development Goal 
14.6?   
RESPONSE  
Japan's fishing activities are properly managed by the government in accordance with relevant 
fisheries laws and regulations based on the scientific stock assessm ent, and adequate monitoring, 
control and surveillance (MCS) measures in place to prevent IUU fishing. To our best knowledge, 
none of Japanese fishing vessels has been listed on IUU fishing vessels by RFMOs. Japan's fisheries 
subsidies programs are impleme nted in a manner not to contribute to IUU fishing or overfishing and 
overcapacity.  
 
4.2 Mining and Energy  
4.2.2 Energy  
WT/TPR/S/397, page 152, paragraph 4.103  
Section 4.1.2, paragraph 4.103 states that "The 2030 energy mix factors in Japan's commitments 
(Nationally Determined Contribution) for the reduction of greenhouse gases submitted to the United 
Nations Framework Convention on Climate Change under the Paris Agreement; these include a 
reduction by FY2030 of 26% of emissions compared to FY2013."  
Questio ns 
• 23. New Zealand commends Japan for its commitment to reduce greenhouse gas emissions, the 
largest global source of which is the burning of fossil fuels. How does Japan intend to rationalise 
any inefficient fossil fuel subsidies that encourage wasteful c onsumption in line with the United 
Nations' Sustainable Development Goal 12(c) and the G20 commitment so as to contribute to 
the reduction of greenhouse gas emissions?   
RESPONSE  
There are no inefficient fossil fuel subsidies that encourage wasteful consumption in Japan.  
In general, reducing wasteful consumption of fossil fuels through the price effect of rationalizing and 
phasing out inefficient fossil fuel subsidies contributes to proper allocation of resources, measures 
against global warming, and easing supply and demand in the energy market. We recognize that it 
is important to support such efforts further.  
 WT/TPR/M/397/Add.1  
 
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REPORT BY JAPAN (WT/TPR/G/397)  
SECTION 4 Japan's Domestic Policies  
WT/TPR/G/397, page 11, paragraph 4.1  
The Japan report states that a dramatic improvement in productivity is necessary to boost potential 
growth rates and reach Japan's goal of reaching nominal GDP of JPY 600 trillion around 2020.  
Questions  
• 24. Can Japan advise  what measures they are putting in place to increase productivit y? 
 
RESPONSE  
In 2015, Prime Minister Abe launched the nation's effort to tackle the issue of the declining birth 
rate and aging population, with the targets of "the largest nominal GDP in post -war history of 600 
trillion yen," "a desirable birth rate of 1.8," and "no one forced to leave their jobs for nursing care." 
In June 2016, "The Japan's Plan for Dynamic Engagement of All Citizens," which includes specific 
measures to achieve these targets, was compiled. In order to promote related measures, deciding  
when to take what kind of specific measures, with respect to each topic, with concrete deadlines, 
and continually reviewing them, the Government of Japan drafted the roadmaps of these measures. 
The detailed roadmaps are provided at : 
http://www.kantei.go.jp/jp/singi/ichiokusoukatsuyaku/pdf/plan2.pdf . 
 
• 25. Can Japan update us on the outcomes of these initiatives?   
 
Information about planned measures and the outcomes of these i nitiatives can be found at : 
https://www.japan.go.jp/abenomics/_userdata/abenomics/pdf/2001_abenomics.pdf .  
  WT/TPR/M/397/Add.1  
 
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AUSTRALIA  
Report by the Secretariat (WT/TPR/S/397)  
2 Trade and Investment Regimes  
2.4 Investment Regime  
2.4.1 Investment framework  
Pages 46 -49, Paragraphs 2.33 -2.42 
and 
Report by Japan (WT/TPR/G/397)  
2 Trade and Investment Policy  
2.5 Investment Policy  
2.5.1 Outlook  
Pages 11 -12, Paragraphs 2.33 -2.35 
 
We appreciate the information on Japan's Investment Framework in the Report by the Secretariat 
and on Japan's Investment Policy Outlook in the Report by Japan.  
 
Question 1  
Could Japan provide information on the changes to Japan's inwards foreign investment screening 
regime under the amendments to the Foreign Exchange and Foreign Trade Act enacted in November 
2019 which are expected to take effect in 2020 and indicate the rationale for those changes.  
 
RESPONSE  
The Amendment Bill aims to:  
- Further promote foreign direct investment (FDI) conducive to sound economic growth; and  
- Ensure minimal review of FDI that could pose risks to national security.  
Particularly, the Bill introduces exemption from the prior -notification requirement and adjusts the 
coverage of FDI. More details are as follows:  
The threshold for prior  notification of purchasing listed companies' stocks will be lowered from 10% 
to 1%. This is accompanied by a system, where foreign investors can be exempted from prior -
notification requir ement if (i) they or their closely -related persons will not become board members 
of the investee company; (ii) they will not propose transfer or disposition of critical business domain  
of the investee company to the general shareholders' meeting; and (iii)  they will not access to non -
public information about the investee company's technology that can impact national security. State -
owned enterprises are not eligible for the exemption in principle.  
Certain foreign investors' actions after stock purchases wil l be subject to  prior notification. These 
are the following: (i) foreign investors or closely related persons become board members of the 
investee company; and (ii) foreign investors propose transfer or disposition of critical business 
domain of the invest ee company at shareholders' meetings.  
Legal provisions have been added to permit the Japanese authorities to exchange information among 
domestic intelligence agencies and with foreign authorities.  
  
Report by the Secretariat (WT/TPR/S/397)  
3 Trade Policie s and Practices by Measure  
3.3 Measures Directly Affecting Production and Trade  
3.3.7 Intellectual Property Rights  
3.3.7.2 Policies on promotion and commercialisation of innovation  
Page 108, Paragraph 3.187 -3.189  
 
The report states that the Japan Patent Of fice, in collaboration with other agencies, launched new 
support program mes designed to address the needs of SMEs and others.  
 
Question 2  
How effective has the SME program been, and how much have SMEs used it?  
 
RESPONSE  
These are assessments of three new support programmes launched in 2017 and after. INPIT -KANSAI 
office has been working to ensure more appropriate protection and utilization of outstanding 
technology by offering exports' advice to help SMEs develop IP strat egies and go abroad while 
utilizing IP, and providing a venue to conduct interview examinations in order to promote face to 
face dialogue between applicants and examiners.  WT/TPR/M/397/Add.1  
 
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In FY 2018, the number of SMEs used the provided support for sophisticated and speci alized for IP 
matters by experts was 320 in western Japan and had increased twice compared to in FY 2016 
(before it established). IPAS has been highly reviewed with positive feedback. One of the participants 
commented, "We received beneficial advice based on a wealth of experience, including advice on 
the positioning of intellectual property in business strategy, application strategy and negotiation 
strategy". 25 start -ups have taken part in the program since its launching in FY 2018. In FY 2020, 
the progra m is planned to accept 15 new start -ups. IP-BASE, a community website for start -ups and 
their supporters including IP experts, has been playing a key role to disseminate information such 
as IP knowledge, support programs etc. and raise awareness on IPs in Japanese start -up ecosystem. 
The website has been accessed tens of thousands of times.  
 
Question 3  
Can Japan please elaborate on what support is provided by the Global IP Producers programme?   
 
RESPONSE  
The Global IP Producers programme  provides an IP consultancy service by experts in the IP field, 
"Global IP Producers", free of charge. Global IP producers, who worked for private sector enterprises 
before INPIT and have overseas work experience, give advice on IP risk management and IP s trategy 
to the service users based on their abundant experience and practical knowledge in the IP field. For 
example, Global IP Producers take into consideration each user's business and situation they are in 
and give them advice on how to obtain, protect and utilize IPRs.  
 
Report by the Secretariat (WT/TPR/S/373)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.4 Trade Policies and border measures  
Page 133, Paragraph 4.25  
 
The report states a simultaneous buy and sell (SBS) system for rice and wheat remains in place.  
 
Question 4  
What, if any, plans does Japan have to reform its SBS system to ensure it does not result in barriers 
to trade?  
 
RESPONSE  
The SBS system does not create any trade barr ier inconsistent with the WTO rules, and there is no 
plan to modify this system.  
 
Question 5  
Can Japan describe how, and on what basis, it manages its price and mark -up settings for products 
subject to the SBS system?  
 
RESPONSE  
Under the SBS system, a dome stic user and an importer jointly bid for the tender held by MAFF. 
MAFF purchases imported rice and wheat from the importer and sells it to the user simultaneously 
based on the result of tender.  
The purchasing and selling prices as well as the mark -up, wh ich is the difference between those 
prices, are determined as a result of bidding by the importer and the domestic user.  
 
Question 6  
Has Japan assessed the economic impact of the SBS system, in particular the impact on consumer 
prices and the economic cost on Japanese consumers?  
 
RESPONSE  
The SBS system provide direct transaction in substance between a domestic user and an importer 
in accordance with commercial considerations. It contributes to meet consumers' specific needs of 
imported agricultural products.  
 WT/TPR/M/397/Add.1  
 
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Report by the Secretariat (WT/TPR/S/397)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 A griculture  
Page 125, Paragraph 4.2  
 
and 
 
Report by the Secretariat (WT/TPR/S/397)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.5 Domestic Support  
4.1.1.5.3 Specific Products  
4.1.1.5.3.1 Rice  
Page 138, Parag raphs 4.41 to 4.42  
 
The report states that MAFF continues to provide direct payments to farmers who produce crops 
other than table rice in the paddy field. The budgetary cost of payments was JPY 320.0 billion in 
2017 and JPY 305.9 billion in 2018; and unde r page 138 paragraph 4.42, the report states that since 
September 2017, Japan has introduced a Rice Overseas Market Expansion Project under which a 
JPY60 billion target was set for exports of rice and rice products for CY2019.  
Under section 4.1.1 Agricult ure, page 125 paragraph 4.2, the report also states that nearly half of 
commercial farm households are mainly engaged in rice production, and well over half of cultivated 
land is under rice production; and under Table 4.9 Food assistance FY2013 -FY2016, the  report states 
that Japan continues to provide food assistance in the form of rice (FY2016 totalled 59,508 tonnes).  
 
Question 7  
Noting the measures in place to support the development of an export market for Japanese -produced 
rice, coupled with the continued provision of rice for food assistance, can Japan explain how its 
measures to incentivise diversification away from rice production are progressing in the desired 
manner/direction?   
 
RESPONSE  
As described in paragraph 4.41, MAFF provides to direct  payment to farmers who produce crops 
other than table rice, such as wheat and soybeans, in order to make effective use of paddy fields  
 
Question 8  
Can Japan provide advice with respect to the Rice Overseas Market Expansion Project and how it is 
fully cons istent with Japan's Export Competition obligations under the Agreement on Agriculture and 
the 2015 Nairobi Decision on Export Competition? For example, is access to the ROMEP in any way 
contingent on meeting the JPY60 billion target set for exports of rice  and rice products for CY2019?  
 
RESPONSE  
MAFF  has encouraged the export of rice by releasing the list of motivated exporters and producers 
to promote matching between production areas and exporters. The support which the MAFF provides 
in relation to this project is for widely available export promoti on and advisory services and does not 
constitute an export subsidy as described in the Agreement on Agriculture and agreed in Nairobi 
Package.  
 
Report by the Secretariat (WT/TPR/S/397)  
4 Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.5 Domestic Support  
4.1.1.5.3 Specific Products  
4.1.1.5.3.6 Dairy  
Page 141, paragraph 4.58  
 
The report states that dairy producers benefit from several support programmes and that various 
dairy products were the subject of  SSGs.   Under Table 4.5 SSGs, FY2017/18, the volume -based 
SSG for milk and cream, not concentrated or containing added sugar or other sweetening matter WT/TPR/M/397/Add.1  
 
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(HS: 040120190) was applied for ten months from 01/06/2017 to 31/03/2018, i.e. just two 
months into Japa n's Financial Year reporting period.  
 
Question 9  
While acknowledging that the Agreement on Agriculture allows a Member to apply SSG's with an 
automatic trigger, given 25 years has passed since Japan set its SSG commitments and the 
mentioned SSG saw imports  prohibited for ten months in that reporting year, has Japan reviewed 
the practical market impact of these SSGs, or whether the continued application of automatic 
volume -based SSGs remains in the spirit of the Agreement on Agriculture and support of a fair , 
market -oriented trading system?   
 
RESPONSE  
Given Special Safeguards was introduced in compensation for tariffication on the UR agreement and 
the reform process is still ongoing, Japan will continue to use it properly in a manner consistent with 
the Agree ment on Agriculture.  
 
Report by the Secretariat (WT/TPR/S/397)  
4. Trade Policies By Sector  
4.2 Mining and Energy  
4.2.2 Energy  
Page 153, Paragraph 4.107  
 
The report states that, "The New SEP sets as a goal for 2050 the realization of the "hydrogen 
society", hydrogen being an efficient energy source, with no greenhouse gas emissions'. Australia 
notes the leading role that Japan is playing to build hydrogen production, capabilities a nd a demand 
market.   Building on the long history of successful energy and resources trade, Australia is playing 
a leading role in building a production base to meet both future export demand and fostering 
domestic demand.  
 
Question 10  
What domestic and i nternational measures is Japan introducing to create demand for hydrogen?  
 
RESPONSE  
Subsidies for the introduction of FCVs, buses and forklifts, have been implemented.  
 
(domestic and international)  
Technologies for various types of hydrogen mobility, including trucks and ships, power to gas, 
hydrogen power generation, and hydrogen -reduced steel production have been developed to expand 
the introduction of hydrogen in the future.  
Model for local consumption of hydrogen derived from renewable en ergy was constructed in 
Fukushima Prefecture.  
 
Question 11  
What trade facilitation measures does Japan intend to create or amend to achieve its goal of a 
"hydrogen society" by 2050?  
 
RESPONSE  
In the hydrogen roadmap, Japan aims to bring the price of hydro gen to the same level as fossil fuels 
by around 2050, and to introduce a supply chain for the production, transportation and storage of 
hydrogen derived from unused energy overseas by around 2030. Japan is developing technologies 
such as liquefied hydrogen  carrier for hydrogen trade and conducting demonstration projects. A 
decision will be made based on the progress of the demonstration project.  
Based on the progress of the demonstration project, Japan will decide whether to formulate trade 
promotion measu res. 
 
Question 12  
What is Japan's approach to the establishment of clean hydrogen certification?  
 
RESPONSE  
A working group consisting of industry, government, and academia has been discussing the direction 
of future plans for CO2 -free hydrogen supply in the future.  
  WT/TPR/M/397/Add.1  
 
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SINGAPORE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
QUESTIONS  
 
2 Trade and Investment Policy  
Page 48 (Para 2.40)  
 
1. We note that Japan is promoting more foreign investment into the various Japanese regions 
outside of popular FDI destinations such as Tokyo through various support programs for Regional 
Foreign Direct Investment. The same program mes were referred in Par a 2.35 (page 12) of the 
Government Report.  
 
• What are the respective priority areas identified for economic revitalisation in the other Japanese 
regions outside of Tokyo?  
 
RESPONSE  
There are the municipalities selected under the Support Program for Regi onal Foreign Direct 
Investment in Japan such as Hokkaido, Miyagi -ken, Fukushima -ken, Ibaraki -ken, Chiba -ken, 
Kanagawa -ken, Aichi -ken, Mie -ken, Kyoto -fu, Wakayama -ken, Fukuoka -ken, Kumamoto -ken, 
Okinawa -ken, and other 15 municipalities.  
 
• Can Japan highlig ht the key policies to improve the business environment in these regions for 
foreign investors?  
 
RESPONSE  
Key policies are different for each municipality. For example, Kyoto -fu launched the Kyoto Overseas 
Business Center as a hub for supporting Japanese companies in overseas business development and 
attracting overseas companies to Kyoto under the framework of All -Kyoto initiatives. Since then, the 
prefecture has been proactively advancing such efforts.  
Taking advantage of the support program, the prefect ure will deploy strategic activities for attracting 
overseas companies in the field of tourism, with the ultimate goal of attracting greater numbers of 
overseas tourist, targeting foreign -invested hotels, travel agencies, travel -tech companies and other 
overseas companies as efforts to increase services to respond to the recent influx of overseas tourists 
to Kyoto. Through these activities, the prefecture will strive to attract more overseas tourists to 
various areas of the prefecture and to encourage such overseas tourists to visit every corner of the 
region dispersively. Moreover, the prefecture will endeavor to promote efforts to attract more 
overseas companies to the region in the field of smart cities(e.g., AI, IoT, robotics and mobility), 
taking advant age of the wide range of networks among clusters of research and development 
institutes in the Kansai Science City (commonly called "Keihanna Science City"), Kyoto Smart City 
Expo, an annual international conference on smart cities and other opportunities.  
 
• What are the results of these programs so far?   
 
RESPONSE  
In some of the municipalities selected under the Support Program for Regional Foreign Direct 
Investment in Japan such as Hokkaido, Sendai -shi and Fukushima -ken, the Ministry of Economy, 
Trade and Industry (METI) and the Japan External Trade Organization (JETRO) have held a series of 
Regional Business Conferences (RBC) projects in which municipalities and other entities invite senior 
managers an d other representatives of overseas companies to Japan, explained the synergies 
between such companies and the regions, and hold business matching events between these 
companies and regional companies. METI and JETRO adopted new RBC projects involving such  
business matching event as follows:  
 
-FY2018 projects  
https://www.meti.go.jp/english/press/2018/0516_001.html  
-FY2019 projects  
https://www.meti.go.jp/english/press/2019/0416_001.html   
  WT/TPR/M/397/Add.1  
 
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PERU  
Informe de la Secretaría de la OMC: WT/TPR/S/397  
2.4.2 Business environment – párrafo 2.45.  
 
1.- El Perú saluda los avances del Japón en materia de empoderamiento económico de la mujer, así 
como el copatrocinio del Japón de la Declaración Conjunta en materia de Comercio y 
Empoderamiento Económico de la Mujer en el marco de la Conferencia Ministerial de la OMC en 
Buenos Aires. El informe de la Secretar ía de la OMC hace referencia al "Women's Empowerment Act" 
del Japón. En este sentido, ¿podría Japón señalar si dicha ley u otros actos públicos prevén el 
fomento de la participación de la mujer en el comercio internacional? De no ser el caso, ¿contempla 
Japón fomentar la participación de la mujer en el comercio internacional en el futuro? De ser el caso, 
¿por qué medios y bajo qué formato fomentaría Japón este tipo de participación?  
 
RESPONSE  
At this point, there is no provision in Japanese law which encourages women to participate in 
international trade. However, the Government of Japan is committed to women's socio -economic 
empowerment. For detailed measures and policies, please refer to the official website of the 
Government of Japan.( https://www.japan.go.jp/diversity/women/index.html ).  
 
2.- ¿Realiza Japón actividades de cooperación con terceros países con miras a fomentar el 
empoderamiento económico de la mujer a través del comercio ? De ser el caso, ¿podría Japón 
describir brevemente dichas actividades?   
 
RESPONSE  
No. 
  WT/TPR/M/397/Add.1  
 
- 235 - 
 
DOMINICAN REPUBLIC  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3.4 Competition policy and price controls  
3.3.4.2 Price controls  
Pág. 94 -95 
Párrafo 3.154.  "Japan maintains a price survey scheme on certain pharmaceutical products, 
based on a drug price standard. The reimbursement price of medicines used/dispensed under the 
National Health Insurance is defined by the MHLW since 1950s. The actual purchase prices  paid by 
medical institutions and pharmacies (prevailing market price) are surveyed (drug price survey), 
and the prices specified in the drug price standard are revised periodically based on the results of 
the survey. All medicines covered by the National Health Insurance (approximately 20,000) are 
subject to the price survey. To control healthcare costs (Section 3.3.7), the Government has been 
revising drug prices biennially, based on the actual purchasing price, leading to annual price cuts 
of 5% to 7% si nce 2017. The latest pricing reform in April 2018 added pressure; for example, the 
scope of the price -maintenance premium (PMP), introduced in 2010 to delay biennial price cuts, 
was narrowed to drugs deemed truly innovative, which numbered 560 in 2018 as o pposed to 823 
in 2016. From 2021, annual price revisions will begin for drugs with a large yakkasa (dispenser 
margin). However, the 2018 honebuto, or Basic Policy on Economic and Fiscal Management and 
Reform, called for price revisions of all products in 2 019, the year of the consumption tax rate hike 
(Sections 1.1 and 1.2), that would bring forward the de facto shift to annual revision that is planned 
as from the year 2021. " 
 
1. ¿Puede Japón señalar cuando y como fueron hechos ajustes a los impuestos de 
los productos farmacéuticos?   
 
RESPONSE  
Japan has determined the  reimbursement price of medicines, adding the prevailing market price, 
the amount equivalent to the consumption tax, and its adjustment (Reasonable zone). The 
consumption tax of medical drugs used by medical institutions and pharmacies is included in drug 
price as an amount equivalent to the consumption tax.  
 
3.3.5 State trading, state -owned enterprises (SOEs), and privatization  
Pág. 96  
Párrafo 3.159.  "During the review period, state involvement in the economy remained relatively 
unchanged. State trading entities continued to engage in leaf tobacco, opium, rice, wheat, barley 
and milk products. Major commercial SOEs include those operating in energy, fin ancial services, 
telecommunications and some transport -related activities. The State continues to wholly or partially 
own several companies, including large ones (Table 3.18), in the delivery of goods and services that 
the authorities believe would not be adequately provided by the private sector alone. Ownership is 
maintained either directly or via Incorporated Administrative Agencies (IAAs), which are public -
sector corporations with a separate legal personality; as at 1 April 2019, there were 87 IAAs (88 in 
2017). As at 31 December 2016 (latest data available), there was a total of 228 (234 in 2015) 
entities with government capitalization; the total amount of capitalization stood at JPY 76.0 trillion 
(JPY 80.1 trillion as at 31 March 2015). Based on the OE CD definition of SOEs, Japan identified 
1 majority -owned listed enterprise (Japan Post Holdings Co., Ltd, 218,312 employees, valued at 
USD 55.8 billion), 7 majority -owned non -listed enterprises (37,953 employees, valued at 
USD 26.5 billion), 2 minority SOE s (Japan Tobacco Inc., 63,968 employees (as at 
31 December  2018) and Nippon Telegraph and Telephone Corporation, 303,350 employees (as at 
31 March 2019)) and no statutory corporations or quasi -corporations. In 2014, based on the OECD 
definition of SOEs, Ja pan had identified 26 SOEs: 2 minority -owned listed enterprises, 8 majority -
owned non -listed enterprises, and 16 statutory corporations or quasi -corporations. Market 
monopolies continue to be retained in domestic manufacturing of tobacco and the importatio n of leaf 
tobacco."  
 
2. ¿Es posible conocer la lista de todas las empresas estatales del sector tabaco?  
 
RESPONSE  
Regarding "Large state enterprises", please refer to Table 3.18 in the Trade Policy Review Report by 
the Secretariat.  
Regarding "State -trading enterprises", please refer to Table 3.19 in the Trade Policy Review Report 
by the Secretariat.   WT/TPR/M/397/Add.1  
 
- 236 - 
 
PHILIPPINES  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
III. TRADE POLICIES AND PRACTICES BY MEASURE  
Para 3.18 (Page 55)  
 
The main laws governing the setting of tariffs are the Customs Tariff Act  (which, inter alia, provides 
for customs duty rates through the appended Tariff Schedule, customs duty reductions and 
exemptions, and the application of tariff rate quotas) and the Temporary  Tariff Measures Act  (which 
provides for temporary exemptions to the Customs Act and the Customs Tariff Act to allow for 
customs duty adjustments, if needed, for the sound development of the national economy). Over 
the review period, the Customs Tariff Ac t was amended several times, inter alia, to extend the 
effective periods of temporary rates of customs duty and the related exemption system; review 
customs duties on individual items; extend special tariff measures in the Okinawa prefecture; and 
apply dut y-free rates to certain products (as a result of the revision of the preferential tariff system.  
 
Question/s  
1.  Which Office or Ministry in the Japanese Government has the specific mandate on the 
administration and transposition of Japanese tariff schedul es to reflect changes in the HS 
nomenclature? Can Japan elaborate on the procedures involved in modifying/suspending/eliminating 
tariffs?  
 
RESPONSE  
The Customs and Tariff Bureau, the Ministry of Finance has the mandate on the administration and 
transposition of Japanese tariff schedules to reflect changes in the HS nomenclature. It is responsible 
for the elaborate tariff revision.  
 
Para 3.49 (Page 68)  
3.49. Japan's legislative framework for anti -dumping duties is the Customs Tariff Act, the Cabin et 
Order Relating to Anti -Dumping Duties, and the Guidelines for Procedures Relating to Anti -Dumping 
Duty. In 2017, the Cabinet Order and Guidelines were amended to change the definition of 
"interested parties for domestic industry", and reduce the burden for applicants requesting the 
imposition of an anti -dumping duty by easing the conditions for making such a request. With respect 
to the latter, before the amendment, it was not clear to what extent an applicant was required to 
substantiate the impact of t he dumped product on domestic industry; the amendment specifies that 
such impact is to be indicated "by reasonably available information". Moreover, under the previous 
regime, the applicant was requested to show that the degree of support of the request fo r the 
imposition of an anti -dumping duty in the domestic industry satisfied the requirement; amendments 
authorize the minister in charge of the industry to confirm such degree of support. These 
amendments were notified to the WTO; no questions related to t hese changes were raised in the 
WTO Committee on Anti -Dumping Practices.  
 
Question/s  
2.  What alternative actions does the Japanese Government consider if an applicant does not 
provide the required information (or substantiate) on the impact of the dumped product on domestic 
industry for reason of non -availability?  
 
RESPONSE  
At least an applicant is expected to be able to indicate the impact of the dumped product on his/her 
own business by reasonably available information.  If the applicant is not able to o btain and present 
any information that shows the impact, an anti -dumping investigation is not initiated upon such 
application and he/she is informed in writing accordingly.  
 
3. What parameters does the Minister in charge of the industry use in confirming t he degree of 
support of the domestic industry?  
 
RESPONSE  
In accordance with the Guidelines for Procedures Relating to Anti -Dumping Duty 
(G/ADP/N/1/JPN/Suppl.6), (i ) the collective domestic output of the like products of the imported 
product concerned by interested producers, in support of the said request for the imposition of duty, 
or (ii) the collective number of labours engaged in the domestic production of the s aid product who WT/TPR/M/397/Add.1  
 
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are in support of the said request for the imposition of duty, are used in order to confirm the degree 
of support by the domestic industry.  
 
Para 3.50 (Page 68)  
3.50.  Anti -dumping investigations may be initiated when the Government conside rs it necessary, 
when an application for investigation is submitted by a domestic industry to the Minister of Finance, 
or when there is enough evidence.  The decision is published as a public notice in the Official Gazette, 
by the Minister of Finance. Inve stigations are carried out by a team comprised of officials from the 
Ministry of Finance Office of Trade Remedy Affairs, the METI's Office for Trade Remedy 
Investigations, and the ministry in charge of the relevant industry. The final decision to impose an  
anti-dumping duty is issued as a Cabinet Order. Provisional measures may be applied no earlier than 
60 days from the initiation of the investigation, if affirmative preliminary determinations are made. 
Provisional measures are, in principle, applied for u p to four months, although a longer time -frame 
may apply upon request by exporters representing a significant percentage of the trade involved. 
Exporters may offer an undertaking to revise prices or cease exports, so that the injurious effect of 
the dumpin g on the domestic industry is eliminated. Anti -dumping duties can be imposed for a period 
not exceeding five years, and may be extended thereafter following a review. Each extension of the 
measure may not be longer than five years.   
 
Question/s  
4. Can Japan elaborate on how it handles computations of normal values, export prices, and 
appropriate dumping margins/duties from voluminous transactions?  
 
RESPONSE  
For details of how to calculate the said items, please refer to the paragraph 7 of the Guidelines  for 
Procedures relating to Anti -Dumping Duty (G/ADP/N/1/JPN/2/Suppl. 6). For sampling, which may 
be used in accordance with the provisions of paragraph 10 of Article 6 of the Anti -Dumping 
Agreement, please refer to the paragraph 11 of the Guidelines for P rocedures relating to Anti -
Dumping Duty (G/ADP/N/1/JPN/2/Suppl.6 and G/ADP/N/1/JPN/2/Suppl.10).  
 
Question/s  
5. Which agency administers the review of anti -dumping duties? Can Japan provide a link on an 
online portal for the public where its updated anti -dumping procedures, including review of an anti -
dumping duties, may be accessed?  
 
RESPONSE  
Agencies in charge of the review of anti -dumping duties are the same as those for original 
investigations. For information on anti -dumping procedures in Japan, please refer to the following 
address: https://www.customs.go.jp/tokusyu/index.htm  (Japanese language only).  
 
  WT/TPR/M/397/Add.1  
 
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THAILAND (ADDITIONAL)  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
4. Trade Policies by Sector  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1.2 Agricultural policy  
Paragra ph 4.7 (Page 127)  
The overall goal for the sector is to make agriculture a growth industry, with greater private -sector 
participation. The agricultural policy is set out in the Food, Agriculture and Rural Areas Basic Plan, 
which is reviewed roughly every f ive years. The current Plan, adopted in March 2015, sets out the 
objectives of doubling incomes in agriculture and rural areas over the next ten years, by increasing 
domestic and export demand, improving value chains, reducing costs, promoting structural r eform, 
and improving productivity.4 In September 2019, the Ministry of Agriculture, Forestry and Fisheries 
(MAFF) launched the process of developing the next five -year plan, to be released in 2020.5 
Agricultural policy continues to emphasize self-sufficien cy, and the Plan sets self -sufficiency targets 
for FY2025 of 45% on a calorie basis and 73% on a production value basis, as well as a self -
sufficiency target for feeds of 40% for FY2025. In 2017, self -sufficiency on a calorie basis was as 
37%, under target  due to climate change affecting the production of main crops such as wheat and 
soybeans.6 Self-sufficiency rates for individual products vary year -on-year but are consistently high 
(at 70% and above) for: unshu, rice; eggs; sweet potato; fungi; vegetables  and tubers (Table A4.1). 
Agricultural policies are reviewed annually in the MAFF's Annual Report/White Papers on Food, 
Agriculture and Rural Areas in Japan.  
Question  
Could Japan explain more on this Self -Sufficiency Agricultural Policy; for example, how to set each 
category in self -sufficiency targets?  
 
RESPONSE  
The relevant act (Food, Agriculture and Rural Areas Basic Act) stipulates that the target level of food 
self-sufficiency rate should be a guide for national agricultural production an d food consumption. In 
line with the verification discussions in Council of Food, Agriculture and Rural Area Policies, the 
Ministry set two principles: i) the demand estimates should be realistic for each commodity, and 
ii) the supply estimates should be b ased on such consumption levels and with proper consideration 
of realistic production conditions. Taking into account the principles and feasibility within the time 
scale, the Ministry decided the target level of 45% in 2025, which was raised from 39% in 2 013. 
  
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GUATEMALA  
Informe de Gobierno.  
 
3 COMERCIO Y DESARROLLO  
3.1 Ayuda para el comercio  
Asistencia al movimiento "Una aldea, un producto"  
3.5. El movimiento "Una aldea, un producto" es uno de los proyectos típicos de las iniciativas de la 
Ayuda para el Comercio. "Una aldea, un producto" es un movimiento de apoyo a las economías 
locales mediante la elaboración, mejora y promoción de productos locales (alimentos, bebidas, 
productos textiles y prendas de vestir, entre otros) con la participación de la po blación local. El 
movimiento se inició en una prefectura del sur del Japón a finales del decenio de 1970 y 
posteriormente se extendió a las demás prefecturas. Se ha introducido en otros países asiáticos y 
ha contribuido al desarrollo de las economías local es.  
 
Pregunta  
¿Podría el Gobierno de Japón proporcionarnos más información sobre este proyecto y que estrategias 
ha utilizado para su implementación?  
 
RESPONSE  
The "A village, a product" project started in February 2006 by Ministry of Economy Trade and 
Industry (METI) and Japan External Trade Organization (JETRO) under the Development Initiative 
for Trade, which Japan released at the 6th WTO Ministerial Conference in Hong Kong.  
The project aims to create a competitive product in domestic and global markets in the course  of 
looking for specialty products, sophisticating them and promoting sales, and consequently to vitalize 
local economy in developing countries.  
In detail, as of March 2020, JETRO opens two stores in Narita International Airport and Kansai 
International Ai rport and they sell food and beverages, artwork, textiles and clothing, among others, 
to people visiting Japan from around the world. Local products sold in the stores also distributed in 
Japan. These stores have the role to help sales promotion for Japane se market and increase 
recognition on products and their countries of origin.  
 
Informe de la Secretaría  
 
3.3.7 Derechos de propiedad intelectual (DPI)  
3.3.7.2 Políticas sobre promoción y comercialización de la innovación  
3.186. La Red Universitaria de Innovación y Transferencia de Tecnología (UNITT) controla el sistema 
de transferencia de tecnología y promueve la creación de asociaciones entre el mundo académico y 
las empresas. Su encuesta anual más reciente de universidades y organizac iones para la concesión 
de licencias de tecnología revela que los ingresos totales en concepto de licencias superaron los JPY 
3.000 millones en el ejercicio económico de 2016, una cuantía que triplica la generada en el ejercicio 
de 2005, pero que es muy in ferior a los USD 3.140 millones notificados en 2017 por instituciones 
similares en los Estados Unidos. Las universidades y los organismos públicos de investigación del 
Japón tradicionalmente han colaborado estrechamente con las grandes empresas, con las qu e 
comparten la propiedad de las invenciones y pueden conceder licencias libres de regalías. Ello puede 
repercutir no solo en los ingresos, sino también en la frecuencia con la que esas innovaciones 
impulsan la creación de nuevas empresas.220 El porcentaje de organismos encuestados que 
pusieron en marcha empresas emergentes en el ejercicio económico de 2016 fue del 26,5%, 
mientras que en los Estados Unidos ascendió al 79,6%.221  
 
Pregunta  
¿Podría el Gobierno de Japón, ampliar la información con respecto a l as estrategias utilizadas en la 
promoción de innovación en el sector académico?  
 
RESPONSE  
The Government of Japan (CSTI: Council for Science, Technology and Innovation)  formulates the 
"Integrated Innovation Strategy" based on the Science and Technology Basic Plan every year to 
promote innovation policies in an integrated manner from basic research to social implementation.  
 
For more details, please refer to the link below  
CSTI 
https://www8.cao.go.jp/cstp/english/index.html  WT/TPR/M/397/Add.1  
 
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Integrated innovation strategy  
https://www8.cao.go.jp/cstp/english/doc/integrated_main.pdf  
https://www8.cao.go.jp/cstp/english/doc/integrated_outline.pdf  
  WT/TPR/M/397/Add.1  
 
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ICELAND  
Question 1  
What is the participation of women in the economy of Japan?  
 
RESPONSE  
The number of female workers has increased by approximately 3.3 million from 2012 to 2019, and 
the number of female board members at listed companies has increased 3.4 times in the same time 
period. In addition, the employment rate of women in the child raising period (aged 25 to 44) has 
increased fro m 67.7% in 2012 to 77.7% in 2019, and the proportion of women in managerial 
positions (private companies with over 100 employees) has increased from 6.9% in 2012 to 9.9% 
in 2018. Furthermore, the rate of women continuing to work after having their first ba bies has 
increased from 38.0% in 2011 to 53.1% in 2016.  
 
Question 2  
Have specific barriers that limit women's participation in trade been identified?  
 
RESPONSE  
No specific barriers have been identified by the Government of Japan.  
 
Question 3  
Has Japan imp lemented any specific measures to encourage women's participation in trade and 
promote women's entrepreneurship, or are such measures being developed?  
 
RESPONSE  
Women's entrepreneurship is an important way for women to remain in, enter, or re -enter the 
workforce.  To help women overcome the challenges of starting a business, the Ministry of Economy, 
Trade and Industry (METI) has been working to establish a network of systems that can provide 
appropriate follow -ups to female entrepreneurs who have just start ed a business. This project has 
been expected to increase the number of female entrepreneurs by providing the know -how to 
properly support women in the process before starting business.  
Additionally, Japan has passed legislation and implemented projects to  advance women's full 
participation in economic life across all sectors.  Measures include the Act on the Promotion of Female 
Participation and Career Advancement in the Workplace, revision of the Act on Securing, Etc. of 
Equal Opportunity and Treatment be tween Men and Women in Employment, the Act on the 
Arrangement of Related Acts to Promote Work Style Reform, the revision of the Child Care and 
Family Care Leave Act, the formulation of Guidelines for Initiatives to Promote Women's Activity and 
Work-life Ba lance of National Public Employees, and the Act on Promotion of Gender Equality in the 
Political Field.   
 
Source:  https://www.meti.go.jp/english/press/2019/0419_002.html . 
 
Question 4  
Are the effects of trade policy on women and men measured and monitored, and if so how?  
 
RESPONSE  
The Government of Japan does not measure or monitor the effects of trade policy on men and 
women.  
  WT/TPR/M/397/Add.1  
 
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RUSSIAN FEDERATION  
REPORT BY THE SECRETARIAT  (WT/TPR /S/397)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Directly Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary (SPS) requirements  
3.3.3.1 SPS measures  
Pages 86 -87 
 
Question 1  
We would appreciate a more detailed explanation of the functioning of the Animal Health Advisory 
Committee, responsible, inter alia, for the recognition of regionalization of the importing country's 
territory. Please specify the legal and institutional frameworks that guide the Committee in its work 
and decision -making, procedures for appointing its membership, as well as the timeframes for the 
consideration of the requests received by the Committee.   
 
RESPONSE  
Upon applying regionalization for AI on import of poultry products, Japan conducts  risk assessment 
in accordance with the "Standard Procedure for Approval for Import of Designated Items into Japan 
to be Quarantined" and "Standard Operating Procedures for Approval for Import of Designated Items 
into Japan to be quarantined", which are co nsistent with SPS agreement and the OIE codes.  
The standard procedure and the standard operating procedures are published in English and 
available at:  
https://www.maff.g o.jp/j/syouan/douei/eisei/sop/pdf/080401sop_eng.pdf . 
https://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/2010sop_en.pdf . 
 
As a part of risk assessment, an assessment report needs to be consulted with the Committee of 
Animal Health, which is composed of experts including university professors, representative of 
producers and consumers, local government veterinary officers. Once the risk assessment results 
are considered approp riate by the Committee, Japan could apply the regionalization.  
For your reference, the Committee is established based on Food, Agriculture and Rural Areas Basic 
Act. English translation of the Act is available at:  
http://www.japaneselawtranslation.go.jp/law/detail_main?vm=&id=102 . 
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
4.1.1.3 Institutional and legal framework  
Page 132, para 4.23  
According to its most recent notification on imports under tariff quotas (for FY2017/18) to the WTO 
Committee on Agriculture, Japan applies 18 tariff rate quotas (TRQs ) covering 101 tariff lines at the 
HS six -digit level. Fill rates varied considerably from one quota to another, ranging from 23.4% to 
305.6% (Table 4.6). The authorities indicated that low fill rates for some TRQ products were mainly 
to decrease domestic demand.   
 
Question 2  
We would appreciate if you could describe the procedure of tariff quotas allocation in more detail. 
Are there any intentions to increase the volumes of tariff quotas for goods that have a high fill rate?  
 
RESPONSE  
Regarding the procedure of tariff quota a llocation, see the MA1 notification.  
The volumes of tariff quotas are described in the Schedule, and Japan does not foresee amendments 
of the Schedule at this stage.  
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TURKEY  
SECRETARIAT REPORT  
 
Summary, pg.10, 2.   
 
It is stated in the Secretariat Report that  "During the review period, trade -related structural reforms 
(e.g. in the areas of taxation, competition policy, corporate governance, and labour market policies) 
were undertaken. Both multi factor and labour productivity registered positive growth, and targets 
were set for the latter; SMEs' productivity in manufacturing remains relatively low compared to large 
firms. Monetary policy, involving, among others, Quantitative and Qualitative Monetary Easing (QQE) 
with negative interest ra te, continued to provide a monetary stimulus to growth and help building a 
stable financial environment."  
 
Question 1  
Could Japan provide information regarding measures taken to ensure that the stimulative monetary 
and fiscal policies have positive impact on its economy?  
 
RESPONSE  
In September 2016, the Bank of Japan conducted a "Comprehensive Assessment" of the effects of 
"QQE" and "QQE  with a Negative Interest Rate." For more information, please refer to 
(https://www.boj.or.jp/en/announcements/release_2016/k160921b.pdf). In terms of the current 
situation, please refer to (https://www.boj.or.jp/en/mopo/outlook/gor2007a.pdf).  
 
Summary, pg . 10, 5.  
 
It is stated in the Secretariat Report that "Japan aims to develop "free, fair and high -level trade 
rules" domestically, with key trading partners and in international fora (including the WTO), as well 
as to make progress in reinforcing economic ties and cooperation with emerging economies. Its 2018  
White Paper on International Economy and Trade includes promoting exports and the use of 
Economic Partnership Agreements (EPAs). Trade -related policy objectives are also contained in 
various other strategies also being implemented, including: the evolving  Abenomics programme; 
the 2016 Japan Revitalization Strategy; the Future Investment Strategy; the New Economic Policy 
Package; and the 2019 Growth Strategy. Over the review period, Japan was involved in three new 
dispute settlement cases as complainant, an d reserved its third -party rights in 34 cases. Japan 
maintained a strong record of notifications to the WTO, although up -to-date notifications on domestic 
support in agriculture and government procurement are outstanding. Since 2017, new regional trade 
agreements that have entered into force for Japan are: the Comprehensive and Progressive 
Agreement for Trans -Pacific Partnership (CPTPP) and the EU -Japan EPA. Japan also signed the First 
Protocol to Amend the Agreement on ASEAN -Japan Comprehensive Economic Pa rtnership (AJCEP), 
which includes chapters on trade in services and on investment, as well as a trade agreement with 
the United States. Changes were made to the framework for graduation from Japan's GSP scheme, 
with a view to granting preferences to the ec onomies that need them most. Key initiatives to improve 
the business environment include: introducing labour force reforms; improving corporate 
governance; and lowering corporate tax. Regulatory reform pilot schemes continue to be undertaken 
through the Na tional Strategic Special Zone initiative."  
 
Question 2  
Could Japan provide further information on its plan for extending FTA network in the near future? 
Which bilateral FTA's and/or regional trade agreements does Japan plan to conclude/sign in 2020?  
 
RESP ONSE  
Japan will continue to work on the steady implementation and expansion of the TPP11 Agreement 
and the steady implementation of the Japan -EU EPA, and to promote negotiations of other EPA/FTAs 
including RCEP and a new economic partnership between Japan and the UK as well as Japan -Turkey 
EPA.  
Japan aims to conclude the RCEP Agreement by the end of this year. Moreover, both Japan and UK 
leaders confirmed their intention to ensure a new Japan -UK economic partnership will be established 
as soon as possible, taking into account the transition perio d will end at the end of this year.  
Japan will also continue working on the Japan -Turkey EPA toward the early conclusion of the 
negotiation.  
 WT/TPR/M/397/Add.1  
 
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Question 3  
Could Japan elaborate more on the outcomes and performance of the Abenomics program and other 
structur al programs?  
 
RESPONSE  
Since late 2012, the Government of Japan unveiled comprehensive policy packages to revive the 
Japanese economy from two decades of deflation, all while maintaining fiscal discipline.  
As a result, many economic indicators have improv ed since then, such as nominal GDP, corporate 
pre-tax profit, unemployment rate.  
(It should be noted that the Japanese economy is currently in severe situation due to the COVID -19, 
but it is showing movements of picking up recently.)  
The Government of Japa n tries to achieve sustainable growth and realize Society 5.0. For these 
purposes, the Government of Japan is implementing various policies, such as encouraging 
innovation, promoting work -style reform and human resources development, as well as promoting 
economic partnerships.  
 
For more detail, please see https://www.japan.go.jp/abenomics/index.html . 
 
1. Economic Environment, 1.1. Main Features of the Economy, pg.15, 1.1.  
 
It is stated in the Secretariat Report that "Japan's highly -developed, high -income and market -
oriented economy, with a population of 126.2 million (as at 1 March 2019), remains the world's third 
largest, behind the United States and China, in gross domesti c product (GDP) terms.1 According to 
the World Bank economic complexity index, it remains the world's most diverse economy, due to 
the sophistication of its exports, with the services sector constituting the backbone of the economy. 
Japan has an ageing pop ulation, and the highest ratio of public debt (gross financial liabilities of 
general government) to GDP of any developed nation. Small and medium -sized enterprises (SMEs) 
continue to play a considerable role in the economy. However, according to the Organ isation for 
Economic Co -operation and Development (OECD), despite public support, they face a productivity 
gap with large companies, and struggle to take advantage of international trade opportunities 
(Section 1.2.1). The Government continued to support gr owth (Table 1.1) by easing financial 
conditions, reducing the fiscal deficit, and raising employment and female labour force participation, 
thus ensuring Japan's longest economic expansion in the post -war era. According to latest available 
data, between 20 12 and 2015, Japan's income inequality and poverty gap remained virtually 
unchanged."  
 
Question 4 
Given that Japan is the world's third largest economy, what is its strategy to avoid any negative 
effects from the trade tension between the United States and  China?  
 
RESPONSE  
At present, with the spread of COVID -19, it is extremely important for the United States and China, 
which are the world's first and second largest economies, to build a stable relationship from the 
perspective of the peace and stability of the international community.  
 
While promoting a variety of cooperation with our ally, the United States, based on the strong 
relationship of trust, Japan would like to hold close communication with China and encourage it to 
fulfill its respons ibilities as a major power. In this context, Japan would like to play a proactive role 
in maintaining and promoting a free, open and fair order based on international rules.  
 
1. Economic Environment, 1.1. Main Features of the Economy, pg. 15, 1.2.  
 
It is stated in the Secretariat Report that "Despite an estimated growth above the potential growth 
(Section 1.2.1), as at May 2019, risks to the outlook were skewed to the downside. Endogenous 
risks involving macro -financial vulnerabilities, fiscal consolidatio n needs, and limited monetary policy 
space make the economy vulnerable to adverse shocks. The intertwined challenges of rapid 
population ageing, involving a sharp rise in social spending, and high government debt (gross 
financial liabilities of general gov ernment) intensified during the review period. Risks have also risen 
from deteriorating global conditions. Exogenous risks involve developments in overseas economies, 
including the consequences of protectionist moves, developments in the Chinese economy, a nd 
progress in global adjustments in IT -related goods."  
 WT/TPR/M/397/Add.1  
 
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Question 5  
Could Japan explain its policies against challenges coming from rapid population ageing and sharp 
rise in social spending? Does Japan have any immigrant policy for integrating migrants to the labor 
system?  
 
RESPONSE  
Japan has aimed at realizing a type of society where individuals can all be important participants 
through "Dynamic Engagement of All Citizens."  
To make this happen, the Abe administration is implementing measures su ch as bolstering support 
for child -rearing generations, securing employment opportunity up to the age of 70, improving 
working environments for those who wish to take on multiple jobs, expanding the range of the timing 
for when a person can start to draw o ld-age pension benefits, increasing preventive healthcare and 
nursing care incentives.  
As a policy of improving foreign workers' employment management, the government is 
implementing several measures such as holding seminars and providing consultation supp ort for 
business employing foreigners.  
 
1. Economic Environment, 1.2. Recent Economic Developments, 1.2.1. Growth, income and 
employment, pg.17, 1.3.  
 
It is stated in the Secretariat Report that "During the review period (2016 -18), the annual average 
GDP g rowth rate stood at 1.1%, a minor slowdown compared to the average of 1.2% over the period 
2013-15 (Table 1.1). Growth above its estimated potential rate continued to be supported by the 
"three arrows" of Abenomics, and by both domestic and external demand , where corporate profits 
and fixed business investment remain favourable, even after accounting for recent natural disasters. 
An increase in private consumption, which was supported by improvement in employment and 
income conditions, constituted another f actor that stimulated growth. Nevertheless, output growth 
slowed since 2017, reflecting weaker exports as world trade decelerated. As at May 2019, Japan's 
economy was likely to continue on a moderate expanding trend, despite being affected by the current 
slowdown in overseas economies. According to the IMF, underlying growth is to remain solid, 
notwithstanding the effects of the October 2019 consumption tax rate hike from 8% to 10% 
(Section  1.2.4.1), and growth will move closer to its estimated potential ov er the medium term. 
According to the OECD, output growth is expected to remain close to 0.75% through 2020, as 
shortages of labour and capacity, combined with record -high profits, continue to support business 
investment and wages."  
 
Question 6  
Could Japan provide detailed information about its 2020 and 2021 GDP growth ratio forecasts and 
ongoing commitment to pursuing ambitious structural (Third Arrow) reforms to develop its business 
environment?  
 
RESPONSE  
Based on the "Mid -Year Economic Projection for FY20 20" (Cabinet Office on July 30, 2020), Japan's 
real GDP for FY2020 is projected to contract by approximately 4.5%, while that for FY2021 is 
projected to grow by approximately 3.4%. If you want to know detailed tabular statements, please 
refer to the follow ing URL:  
https://www5.cao.go.jp/keizai1/outlook -e.html  
 
To reform Japan's business environment, Japan has set a new KPI  "By 2030, rank first among the 
G20 in the World Bank Doing business rankings" in April 2020. Based on this newly -set KPI, Japan 
is taking the following measures  
・Realization of one -stop service for corporation:  
・Electronization and automation of tax and s ocial insurance procedures  
・Promotion of adoption of IT in court procedures.  
・Reformation of trade procedures and port logistics  
・Digitalization of real estate related information and service.  
Throughout these measures, Japan aims to realize a country tha t is most favorable for companies 
to conduct business activities.  
 WT/TPR/M/397/Add.1  
 
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1. Economic Environment, 1.2. Recent Economic Developments, 1.2.2. Price, pg. 20, 1.6.  
 
It is stated in the Secretariat Report that " During the review period, CPI inflation remained 
conside rably below the Bank of Japan's target, picking up from -0.1% (2016) to 1.0% in 2018, inter 
alia, on the back of soaring vegetable prices, higher energy prices, high raw materials prices, and 
personnel expenses reflected in firms' prices, as well as quanti tative and qualitative monetary 
easing, accompanied by yield curve control and negative interest rates since 2016 (Table 1.1, 
Section 1.2.3.1). According to the authorities, sluggish inflation was also partly due to firms' 
preference to invest in labour -saving technology rather than raise prices and wages. According to 
the IMF, under current policies, including the 2.2% hike in unit labour costs in 2018, a consumption 
tax-induced spike expected in 2020 and the provision of free childcare for children aged t hree to 
five, with the output gap remaining positive, inflation is likely to rise gradually but to remain below 
target."  
 
Question 7 
Could Japan elaborate more on the measures taken to ensure the targeted inflation rate in 2020 and 
2021?  
 
RESPONSE  
The Bank of Japan will continue with "Quantitative and Qualitative Monetary Easing (QQE) with Yield 
Curve Control," aiming to achieve the price stability target of 2 percent, as long as it is necessary 
for maintaining that target in a stable manner. It will co ntinue expanding the monetary base until 
the year -on-year rate of increase in the observed consumer price index (CPI, all items less fresh 
food) exceeds 2 percent and stays above the target in a stable manner.  
The Bank will continue to support financing m ainly of firms and maintain stability in financial markets 
through (1) the Special Program to Support Financing in Response to the Novel Coronavirus (COVID -
19), (2) an ample provision of yen and foreign currency funds without setting upper limits mainly 
by purchasing JGBs and conducting the U.S. dollar funds -supplying operations, and (3) active 
purchases of ETFs and J -REITs.  
For the time being, the Bank will closely monitor the impact of the novel coronavirus (COVID -19) 
and will not hesitate to take additi onal easing measures if necessary, and also it expects short - and 
long-term policy interest rates to remain at their present or lower levels.  
 
1. Economic Environment, 1.3. Developments in Trade and Investment, 1.3.2. Trends and 
patterns in foreign direct investment (FDI), pg. 30, 1.27.  
 
It is stated in the Secretariat Report that "Japan remains not only one of the major exporters of 
goods, but also of capital. Monetary easing in Japan and "search -for-yield" by Japanese investors 
continued to support FDI ou tflows and overseas diversification by institutional investors. FDI 
outflows peaked in 2017 and then dropped by an overall 14.4% in 2018 (Table 1.5). Unlike inflows, 
during the review period, outflows were largely concentrated in services (communications, and 
finance and insurance) and manufacturing (chemicals and pharmaceuticals, and transportation 
equipment) (Table 1.5). At the same time, the main individual destinations were the European Union, 
the United States (albeit a decline) and the Cayman Islands.  Similar to the inbound stock, the 
outward FDI stock continued to rise steadily, with the United States and the European Union 
remaining the main destinations."  
 
Question 8  
Japan is one of the major capital exporters all across the world and total amount of Japanese FDI 
outwards peaked as 164.7 billion USD in 2017. The Japanese FDI outflow largely concentrated in 
services and manufacturing industries majorly located in the US  and EU. Could Japan explain the 
factors that might have influenced its FDI outflow policy? Does Japan have any policy to increase 
the amount of Japanese outward FDI and diversify sectors or main destination countries?  
 
RESPONSE  
The Government of Japan launched the "action plan aiming to facilitate an investment environment 
through promoting the conclusion of investment -related treaties" in May 2016. This action plan 
provides the goal to sign and enact investment -related treaties with 100 economies by 2020. Japan 
will continue to actively advance investment -related treaties from the perspective of incorporating 
the growth of emerging economies through overseas investment and attracting foreign investment 
into the Japanese market. A s of June 2020, Japan has signed 51 investment -related treaties and 
they cover 78 countries and regions.  WT/TPR/M/397/Add.1  
 
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Question 9  
Could Japan provide information about whether there is a link between the destination of the 
Japanese FDI outflows and its FTA partners? If  so, could Japan provide data on this linkage (before 
and after)?  
 
RESPONSE  
The conclusion of investment related treaties including the Investment Chapters of EPA/FTAs does 
not guarantee immediate increase of FDI outflows in partner countries, as investme nts are made 
based on each investor's individual management decisions with consideration for various elements. 
Meanwhile, the conclusion of investment related treaties promotes the creation and development of 
positive FDI environments. It may serve as one of important factors for companies to decide their 
investment destinations.  
 
2. Trade and Investment Regimes, 2.1. General Framework, pg. 34, 2.2.  
 
It is stated in the Secretariat Report that " As part of the implantation strategy for the Abenomics 
programme, the 2016 Japan Revitalization Strategy is being pursued. This involves reforms to: 
cultivate new promising markets; engender a productivity revolution to mitigate supply -side 
constraints and  impending workforce shortages; and enhance the capability of individuals to facilitate 
industrial transformation. Initiatives being implemented are: the launch of the 10 Strategic Public -
Private Joint Projects (an initiative to cultivate new markets and f or knowledge - and strategy -sharing 
between the public and private sectors); the introduction of a road -map method for the back 
calculation of goals; regulatory reforms to reduce administrative costs for businesses; 
education/skills/workforce reforms; encou raging joint research between industry and academia; the 
introduction of a Japanese Green Card for Highly -Skilled Foreign Professionals (see below); support 
to business to introduce information technology and robots; promotion of technology in the fields o f 
health care, the environment and energy; development of a large -scale hydrogen supply chain (by 
2030); development of the sports sector in connection with the 2020 Olympic Games; measures to 
improve the productivity of the services sector (Section 4.4); continued reform of the agriculture 
sector (Section 4.1); measures to enhance and promote tourism; encouragement of National 
Strategic Special Zones utilization (see below); corporate governance reforms (see below); 
measures to ensure vibrant financial/cap ital markets (Section 4.4.1); and expansion of private 
participation in public services and assets. Various new entities were established to guide some of 
these efforts, namely, the Public -Private Council for the Fourth Industrial Revolution, the Artificia l 
Intelligence Technology Strategy Council; and the Council for Promoting Human Resource 
Development to Respond to the Fourth Industrial Revolution."  
 
Question 10 
Could Japan provide detailed information about 10 strategic Public -Private Joint Projects? Wh ich 
sectors are included in these projects?  
 
RESPONSE  
The content of "10 strategic Public -Private Joint Projects" is as follows.  
(1) Promotion of the fourth industrial revolution (IoT, Big Data, artificial intelligence)  
(2) Promotion of world -leading healt hcare nation  
(3) Overcoming environment -energy constraints and expansion of investments  
(4) Transformation of Sports sector to a growth industry  
(5) Revitalization of existing housing and housing -renovation market  
(6) Improvement of productivity in service  industry  
(7) Renovation of mid -ranking companies, SMEs and microenterprises  
(8) Promotion of proactive agriculture, forestry and fishery and strengthened export  
(9) Promotion of tourism nation  
(10) Stimulation of consumer appetite by public -private collaboration  
 
2. Trade and Investment Regimes, 2.1. General Framework, pg. 35, 2.4.  
 
It is stated in the Secretariat Report that "In 2017, the Government released its Future Investment 
Strategy, which identifies five areas for the promotion of investment in order to achieve Society 5.0, 
namely: the extension of a healthy lifespan; the realization of a mobility revolution; creating next -
generation supply chains; building and developing pleasant infrastructure and towns; and advancing  
FinTech."  
 WT/TPR/M/397/Add.1  
 
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Question 11 
Could Japan elaborate more on the "Future Investment Strategy" and its five areas for the promotion 
of investment in order to achieve Society 5.0.?  
 
RESPONSE  
The Growth Strategy 2017 states that the Government of Japan should choose  and focus on 
promising "strategic fields" to achieve Society 5.0.  
In order to identify and choose these strategic fields, the following perspectives should be taken into 
account:  
 Whether or not it is a field where Japan can take advantage of its strengths  (aptitude for 
manufacturing goods, innovativeness and scale of social challenges, and likelihood of 
acquiring and utilizing real data);  
 Whether or not growth is expected in the field both domestically and internationally; and  
 Whether or not it is a field appealing to the world which can be used as a model case of a 
country with advanced challenges.  
Based on these perspectives, the policy resources of Japan should be concentrated on the following 
five fields to promote future investment.  
"Extension of healt hy lifespan"  
Japan is among the very first in the world to head toward an aging society. However, Japan does 
have rich data, as Japan has a universal healthcare system and nursing care insurance system.  
The Government of Japan aims to establish a "new syst em of health, medical care, and nursing care" 
with an emphasis on health management, prevention of diseases and nursing, and self -support. 
With this system, the Government of Japan aims to further extend healthy lifespan and will realize 
ahead of the world  a society where everyone can be active throughout his/her life.  
 
"Realization of mobility revolution"  
Although Japan is facing social challenges such as labor shortage in logistics and lack of means of 
transportation for elderly people in local communitie s, Japan has strengths in manufacturing for AI 
as well as approximation of data and hardware. Japan is also able to acquire mass travel data on 
automobiles.  
The Government of Japan will expand the range and opportunities of day -to-day activities of each 
individual by streamlining logistics and sophisticating transportation services to reduce traffic 
accidents, resolve labor shortage in local communities, and eradicate the issue of transportation -
vulnerable people.  
 
"Creating of next-generation supply chains"  
Japan has already had a pioneering approach called Kanban system (just -in-time inventory 
management system). In addition to the in -depth "approximation", which is one of the strengths 
unique to Japan, Japan has abundant data from plants as well as distribution data with a focus on 
convenience stores.  
This will enable us to create innovative products and services which meet demands of individual 
customers and consumers.  
 
"Building and developing comfortable infrastructure and t owns"  
While Japan has conspicuous problems of aging of skilled workers and labor shortage, there is also 
a great demand, including construction of Olympic/Paralympic -related facilities, renovation of worn -
out facilities, and disaster -prevention measures. S ervices created by integration of competitive 
construction machines and data has a sales potential.  
 The Government of Japan will balance efficiency and safety without being bothered by labor 
shortage or cost increase, and penetrate stable maintenance, man agement and update into the 
market.  
 
"FinTech"  
Japan still has higher rate of cash transaction compared to other developed countries, and the use 
of IT by small and medium -sized companies is still limited. This is why Japan can expect to have a 
profound ef fect by introducing FinTech.  
The Government of Japan will dramatically improve the convenience of finance -related services for 
users and drastically improve the fund -raising capacity of companies as well as their productivity 
and earning capacity.  
 WT/TPR/M/397/Add.1  
 
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2. Trad e and Investment Regimes, 2.3. Trade Agreements and Arrangements, 2.3.2. 
Regional and preferential agreements, 2.3.2.1 Regional trade agreements (RTAs), pg. 41, 
2.16.  
 
It is stated in the Secretariat Report that " In February 2019, Japan signed the First Protocol to 
Amend the Agreement on ASEAN -Japan Comprehensive Partnership, which includes chapters on 
trade in services and investment. In September 2019, Japan signed the Japan -United States Trade 
Agreement to eliminate or reduce tariffs on certain a gricultural and industrial products, and the 
Japan -United States Digital Trade Agreement, which is intended to establish high standard rules in 
this area ". 
 
Question 12  
Could Japan give further information regarding the context of Japan -United States Digit al Trade 
Agreement especially in terms of provisions on cross -border e -commerce?   
 
RESPONSE  
The Japan -United States Digital Trade Agreement which entered into force in January 2020 aims at 
promoting digital trades and e -commerce between the two countries, establishing a legal foundation 
to promote smooth and reliable free digital trades.  
The agreement stipulates that neither party shall impose customs duties on electric transmissions 
and require the transfer of, or access to, source code, an algorithm and any information relating to 
cryptography.  
 
2. Trade and Investment Regimes, 2.3. Trade Agreements and Arrangements, 2.3.2. 
Regional and preferential agreements, 2.3.2.1. Regional trade agreements (RTAs), 
2.3.2.1.2. EU -Japan Economic Partnersh ip Agreement, pg. 43, 2.23.  
 
It is stated in the Secretariat Report that " The EU -Japan Economic Partnership Agreement (EPA) was 
signed on 17 July 2018 and entered into force on 1 February 2019. It was notified to the WTO on 
14 January 2019. It covers both trade in goods and services. It is the world's largest RTA, with 
signatories together accounting for nearly one third of world GDP."  
 
Question 13 
Could Japan provide data demonstrating the impacts of Japan -EU EPA on trade in agricultural and 
industrial goods since the beginning?  
 
RESPONSE  
About a year and a half has passed since the Japan -EU EPA entered into force, and trade between 
Japan and the EU has been expanding in such goods as wine and automobile. Looking at the trade 
in its first year b efore the Covid -19 pandemic (February 2019 to January 2020), imports of wine 
from the EU increased 13% year -on-year, and exports of automobile to the EU grew by 14% year -
on-year. 
 
2. Trade and Investment Regimes, 2.3. Trade Agreements and Arrangements, 2.3 .2. 
Regional and preferential agreements, 2.3.2.1. Regional trade agreements (RTAs), 
2.3.2.1.2. EU -Japan Economic Partnership Agreement, pg. 43, 2.25.  
It is stated in the Secretariat Report that " The CPTPP has provisions on, inter alia: trade facilitation;  
e-commerce; government procurement; competition policy; state -owned enterprises and 
designated monopolies; intellectual property rights (Section 3.3.7); labour; environment; 
competitiveness and business facilitation; development; SMEs; regulatory coherenc e; and 
transparency and anti -corruption" and "The EPA has provisions on, inter alia, e -commerce; 
government procurement (Section 3.3.6); competition policy (Section 3.3.4); state -owned 
enterprises; enterprises granted special rights or privileges and designated monopolies; intellectual 
property (Sec tion 3.3.7); trade and sustainable development; agricultural cooperation; and SMEs ".  
 
Question 14 
Could Japan give further information regarding the context of e -commerce provisions in the above -
mentioned trade agreements and whether provisions on e -comme rce in CPTPP and EPA cover 
different aspects of cross -border e -commerce such as logistics, customs procedures, taxes and 
duties?  
 WT/TPR/M/397/Add.1  
 
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RESPONSE  
The provisions on e -commerce in trade agreements such as the TPP11 Agreement and the Japan -
EU EPA stipulate rules on  measures affecting trade by electronic means and measures related to 
cross border e -commerce. For instance, in Article 14.3 (Customs Duties) of the TPP11 Agreement, 
the rule is set not to impose customs duties on electronic transmissions. In addition, Art icle 14.9 
(Paperless Trading) of the TPP11 Agreement sets rules on trade administration documents.  
 
2. Trade and Investment Regimes, 2.3. Trade Agreements and Arrangements, 2.3.2. 
Regional and preferential agreements, 2.3.2.2. Preferential trade agreements  (PTAs), pg. 
44, 2.27.  
 
It is stated in the Secretariat Report that  "Under the GSP scheme, preferential tariff rates apply to 
400 tariff lines at the nine -digit level in Chapters 1 to 24 (agriculture and fisheries) (excluding in -
quota rates), and to 2,621  tariff lines in Chapters 25 to 97 (industrial products). The main exclusions 
are rice and rice products, meat and meat products, fish, dairy products, pineapples, cereal products, 
textiles and clothing, leather and leather products, and footwear. The pref erential margin varies 
from one product to another.   
 
Question 15 
Could Japan explain the main factors for excluding the textiles and clothing, leather and leather 
products, and footwear from the GSP Scheme?  
 
RESPONSE  
Due to taking the needs of domestic manufacturers into careful consideration, some products like 
textiles and clothing, leather and leather products, and footwear are not subject to GSP. In order to 
support least developed countries (LDCs) more effectively, products originating from LDCs are given 
special wider preferential treatment. They are basically giv en duty -free, quota -free (DFQF) market 
access.  
 
The lists of products under GSP treatment and special preferential treatment for the LDCs are as 
below,  
o List of products under the GSP treatment  at:  
http://www.mofa.go.jp/policy/economy/gsp/product.pdf  
o List of products for which duty -free, quota -free market access is granted to LDCs  at: 
http://www.mofa.go.jp/policy/economy/gs p/dfqf.pdf 」 
 
2. Trade and Investment Regimes, 2.4. Investment Regime, 2.4.2. Business environment, 
pg. 49, 2.44.  
 
It is stated in the Secretariat Report that "The authorities indicated that efforts are also being made 
by the SME Agency Japan to help these companies deal with structural transformation challenges, 
such as ageing business owners, labour shortages, natural disaster prevention, and mitigation 
measur es. In July 2019, the Act on the Strengthening of the Management of SMEs was enacted; this 
aims to strengthen SME management, and support the continuation of their business activities, 
particularly in light of the ageing of business owners. In order to hel p SMEs prepare for natural 
disasters, the Government established a plan approval system for specific measures SMEs should 
take before natural disasters, and strengthened the support systems of the Society of Commerce 
and Industry and the Chamber of Commerc e and Industry. Additionally, to cope with ageing of 
business owners, the Government expanded coverage of special arrangements under the Civil Code 
in terms of a statutory reserved portion to include individuals, to effectively carry out the Tax System 
for Individual Business Succession, established in 2019. In 2019, an innovation initiative was set up 
by a government council to assist start -ups become globally competitive; it is aimed at doubling the 
number of innovative start -ups by 2024."  
 
Question 16 
Could Japan elaborate further on ageing of business owners? What kind of measures does it plan to 
take?  
 
RESPONSE  
In Japan, where the Small and Medium Enterprise (SME) owners are aging, succession of SME 
business is an urgent issue. SME Agency provides vario us support measures such as providing WT/TPR/M/397/Add.1  
 
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information, consultation etc., and consider necessary measures for the issue with discussion of 
stake holders in Japan.  
 
Question 17  
Could Japan provide additional information on its plan to support small and medium -sized 
businesses?  
 
RESPONSE  
METI, Ministry of Economy, Trade and Industry considers to provide necessary measures for the 
issue with consultation of stake holders in Japan.  
 
3. Trade Policies and Practices by Measure, 3.2. Measures Directly Affecting Exports, 3.2.4. 
Export support and promotion, ｚ3.2.4.1. Export subsidies, pg. 73, 3.69.  
 
It is stated in the Secretariat Report that "According to the authorities, Japan has no export subsidy 
programmes in place; over the review period, it notified the WTO Committee on Agriculture that it 
had not provided export subsidies for the fiscal years 2016 and 2017".  
 
Question 18  
Does Japan have  any supportive project or action instead of export subsidies at joint federal and 
provincial/territorial policy framework?  
 
RESPONSE  
Japan has no supportive project or action instead of export subsidies (except for widely available 
export promotion and ad visory services) at joint federal and provincial/territorial policy framework.  
 
3. Trade Policies and Practices by Measure, 3.2. Measures Directly Affecting Exports, 3.2.4. 
Export support and promotion, 3.2.4.4. Export promotion, pg. 74, 3.74.  
 
It is stated in the Secretariat Report that "The Japan External Trade Organization (JETRO) remains 
the official agency responsible for promoting exports through information, research, support for, and 
participation in international trade fairs, and other a ctivities to promote exports from, and 
investment in, Japan; it has 74 overseas offices in 54 countries. Since 2016, JETRO has been 
providing export -related services under the Consortium for the New Export Nation; these include 
advice to Japanese SMEs on t heir exports and overseas investment, for example, in terms of foreign 
country regulations and contractdrafting in English. In 2017, JETRO established the Japan 
Agricultural and Foodstuff Exports as a new service in its Trade Tie -up Promotion Programme; th is 
provides an Internet matching services for Japanese agricultural and food products. In the same 
year, it also established the Japan Food Product Overseas Promotion Center, in order to promote 
branding and marketing of Japanese agricultural, forestry, fi shery and food products in overseas 
markets. Since 2019, JETRO has strengthened its support to promote innovation, expansion of 
Japanese start -ups overseas, and inward FDI in Japan, corresponding to global acceleration of 
cutting -edge technologies and the digital economy".  
 
Question 19  
Could Japan provide detailed information about regulations and operations of the Japan Food Product 
Overseas Promotion Center and the Japan Agricultural and Foodstuff Exports mechanisms 
established by the JETRO?  
 
RESPONSE  
As for the outline of Japan Food Product Overseas Promotion Center (JFOODO), please see the 
following website; https://www.jetro.go.jp/en/jfoodo/  
For more information on the Japan Agricultural and Foodstuff E xports (JAFEX), a matching site for 
export of agricultural, forestry, fishery products and food of Japan, please see the following website; 
https://www.jetro.go.jp/ttppoas/special/agri /agris.html  
 
Question 20  
Could Japan provide further information about the export -related services under the Consortium for 
the New Export Nation?  
 WT/TPR/M/397/Add.1  
 
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RESPONSE  
The JETRO  offers advice to Japanese firms so that they can cope with different business practices 
and rules, and support their business transactions with foreign firms under the Consortium for the 
New Export Nation.  
 
3. Trade Policies and Practices by Measure, 3.3. Measures Directly Affecting Production 
and Trade, 3.3.1. Incentives, 3.3.1.2. Subsidies and other assistance programmes, pg. 79, 
3.89.  
 
It is stated in the Secretariat Report that " In its latest notification  to the Committee on Subsidies 
and Countervailing Measures under Article XVI:1 of GATT 1994 and Article 25 of the Agreement on 
Subsidies, Japan listed 51 subsidy schemes provided by central or local governments, largely for 
fiscal years 2016 and 2017; supp ort was mainly targeted at the following activities/sectors: crafts; 
mining and energy; beverages (sake and shochu); agriculture; fisheries; leather; and R&D for next -
generation technology. In most cases, subsidies took the form of grants. Interest subsidi es and loans 
were also used to subsidize some economic activities. The most significant subsidy programmes in 
value terms were (i) loans for purchasing petroleum and liquefied petroleum gas for stockpiling by 
private companies (JPY 517.9 billion in FY2016 and JPY 335.2 billion in FY2017); and (ii) grants for 
rice production, which have since been abolished (subsidy of JPY 98.7 billion in FY 2015 and JPY 
70.8 billion in FY 2016). No new subsidy programmes were introduced over the reporting period 
covered by Japan's notification, but several were terminated".  
 
Question 21 
Is there a subsidy control system at federal or state level that ensures that subsidies do not distort 
or threaten to distort competition in Japan? If so, how do the different agencies at dif ferent levels 
(federal, state, local) coordinate the necessary procedures for control of granting subsidies?  
 
RESPONSE  
Each government agency implements their subsidy programs in a WTO -consistent manner and thus 
ensures to undertake the necessary procedur es under the WTO agreement.  
 
3. Trade Policies and Practices by Measure, 3.3. Measures Directly Affecting Production 
and Trade, 3.3.1. Incentives, 3.3.1.2. Subsidies and other assistance programmes, pg. 79, 
3.90.  
 
It is stated in the Secretariat Report th at "Subsidies are available for the purchase of clean energy 
vehicles sold by car makers, and for building hydrogen fueling stations.97 The subsidy to promote 
clean energy vehicle purchases applies to the purchase of electric battery vehicles, plug -in hybr id 
electric vehicles, fuel -cell energy vehicles, and clean diesel vehicles (Table 3.13). The subsidy 
amount is calculated based on the grade of the clean energy vehicle, and is paid within the limits 
set per vehicle grade (it is not paid if the calculated amount is under JPY 15,000). The budgetary 
allocation for this subsidy scheme was JPY 16 million in 2019. The upper limit of the subsidy scheme 
for building hydrogen stations is from JPY 180 million to JPY 390 million. The upper limit on the 
subsidy for th e operation of hydrogen stations is from JPY16 million to JPY 26 million. These limits 
depend on the type of machines involved".  
 
Question 22  
Could Japan elaborate more on the subsidies provided for the purchase of clean energy vehicles in 
terms of maintai ning its competition policy among other stakeholders in the automotive industry?  
 
RESPONSE  
In Japan, the transportation sector accounts for 20% of total CO2 emissions, and it is important to 
reduce CO2 through the introduction of clean energy vehicles. While these vehicles have excellent 
environmental performance, there is a challenge for demand generation since clean energy vehicles 
are much more expensive for consumers than conventional ones, because of the very high costs of 
vehicle producti on, such as in -vehicle batteries, which are reflected in the vehicle prices. Therefore, 
Japan has maintained financial incentives to provide subsidies for the purchase of PHEVs (up to 
JPY 200 000 [USD 1 800]), BEVs (up to JPY 400 000 [USD 3 700]) and FCEVs  (up to JPY 2 250 000 
[USD 20 800])  regardless of country of origin. PHEVs, BEVs, FCEVs, NGVs (Natural Gas Vehicles), 
CDVs (Clean Diesel Vehicles) and other vehicles with high fuel efficiency are exempt from the 
purchase tax and a part of the weight tax. I n addition, a lower annual vehicle ownership tax is 
applied to these vehicle types. These financial and tax incentives have been provided considering WT/TPR/M/397/Add.1  
 
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their environmental performance, in a manner to ensure a fair and free competition among all 
stakeholders in the automotive industry.  
 
3. Trade Policies and Practices by Measure, 3.3. Measures Directly Affecting Production 
and Trade, 3.3.1. Incentives, 3.3.1.2. Subsidies and other assistance programmes, pg. 79, 
3.89.  
 
4. Trade Policies by Sector, 4.2. Mining a nd Energy, 4.2.1. Mining, pg. 150, 4.91.  
 
It is stated in the Secretariat Report that "In its latest notification to the Committee on Subsidies 
and Countervailing Measures under Article XVI:1 of GATT 1994 and Article 25 of the Agreement on 
Subsidies, Japan  listed 51 subsidy schemes provided by central or local governments, largely for 
fiscal years 2016 and 2017; support was mainly targeted at the following activities/sectors: crafts; 
mining and energy; beverages (sake and shochu); agriculture; fisheries; le ather; and R&D for next -
generation technology. In most cases, subsidies took the form of grants. Interest subsidies and loans 
were also used to subsidize some economic activities. The most significant subsidy programmes in 
value terms were (i) loans for pu rchasing petroleum and liquefied petroleum gas for stockpiling by 
private companies (JPY 517.9 billion in FY2016 and JPY 335.2 billion in FY2017); and (ii) grants for 
rice production, which have since been abolished (subsidy of JPY 98.7 billion in FY 2015 and JPY 
70.8 billion in FY 2016). No new subsidy programmes were introduced over the reporting period 
covered by Japan's notification, but several were terminated (Table 3.12)."  
 
"The State appears not to be involved in the ownership of mines, and does not provide specific 
subsidies or support to the mining sector. There are no programmes to help the reconversion of 
areas affected by the closure of mines."  
 
Question 23  
In the first  paragraph, it is stated that Japanese Government provides subsidies to the mining sector. 
However, in the second paragraph, it is stated that Japan does not provide specific subsides or 
support to mining sector.  
 
Could Japan kindly explain its subsidy policy in the mining sector?  
 
RESPONSE  
The secretariat report mentions "mining and energy" because it simply cites the chapter title. There 
are no subsides directly provided by the government in the field of mineral resources.  
 
3. Trade Policies a nd Practices by Measure, 3.3. Measures Directly Affecting Production 
and Trade, 3.3.1. Incentives, 3.3.1.2. Subsidies and other assistance programmes, pg. 80, 
3.91.  
 
It is stated in the Secretariat Report that "Various subsidies to encourage the establishm ent of 
foreign -affiliated businesses are also provided at the local level. These subsidies, inter alia, relate to 
rent costs; expenses; depreciable assets; investments; employment; and research costs".  
 
Question 24  
Could Japan elaborate more on subsidies a llocated for foreign -affiliated businesses?  
 
RESPONSE  
As for the outline of  various incentives and support exclusively for foreign -affiliated companies and 
foreign companies that are planning to open an office in Japan, please see the following website;  
https://www.jetro.go.jp/en/invest/incentive_programs.html  
 
4. Trade Policies by Sector, 4.4. Services, 4.4.1. Financial services,  4.4.1.2. Regulatory 
evolution in other fina ncial services sectors, pg. 169, 4.174 .  
 
It is stated in the Secretariat Report that " Regarding stock markets, on 31 May 2019, the Financial 
Instruments and Exchange Act was amended, to subject high -speed traders to a registration 
requirement, as of 31 Ma y 2020. Foreign high -speed traders are also subject to this registration 
requirement. The conditions for registration do not include the establishment of an office in Japan 
but require the designation of a representative or an agent in Japan. "  
 WT/TPR/M/397/Add.1  
 
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Question 2 5 
Could Japan provide information about the exact requirements for registration? In Japan's 
understanding, could these requirements constitute any inconsistency with Japan's commitments on 
National Treatment in financial services?  
 
RESPONSE  
For details of the requirements, please refer to Article 66 -50 to Article 66 -70 of the Financial 
Instruments and Exchange Act.  
http://www.japaneselawtranslation.go.jp/law/detail/?ft=1&re=01&dn=1&x=0&y=0&co=01&ia=03
&ja=04&ky=%E9%87%91%E8%9E%8D%E5%95%86%E5%93%81%E5%8F%96%E5%BC%95%
E6%B3%95&page=6  
Please note that the date of the amendment made was on 17 May 2017, not 31 May 2019.  
Japan understands that the requirements are consistent with our commitments on NT in financial 
service, as it does not set any discriminatory treatment foreign to financial service suppliers.  
 
4. Trade Policies by Sector, 4.4. Services, 4.4.2. Telecommunicati on services, pg. 170, 
4.179.  
 
It is stated in the Secretariat Report that " Regarding number portability, a major change occurred. 
The enforcement, in May 2019, of the "telecommunication Number Plan (public notice No. 6 of the 
Ministry of Internal Affairs a nd Communications (2019))" required telecommunications operators to 
take the necessary measures to enable number portability among them by the end of January 2025. "  
 
Question 26  
Could Japan provide information on the coverage of "telecommunications operat ors"? Do they also 
include mobile operators and, if so, could Japan provide information on the current availability and 
conditions for number portability among mobile operators? Is the current situation consistent with 
Japan's existing obligations under it s bilateral or regional agreements?  
 
RESPONSE  
Currently, the Telecommunication Business Act requires number portability to all mobile 
telecommunications operators and NTT East/West among fixed telecommunications operators. In 
addition, the "Telecommunication Number Plan", which came into effect in May 2019, requires all 
fixed telecommunications operators to enable number portability among them by the end of January 
2025. This situation is consistent with regional or bilateral agreements incl uding CPTPP and Japan -
EU EPA.  
 
GOVERNMENT REPORT  
 
1. Trade and Economic Environment, 1.1. Japan's Economic Environment, Pg. 3, 1.1.  
 
It is stated in the Government Report that "The Japanese economy is recovering at a moderate pace. 
The private consumption and business investment are on the increase, supported by continued 
improvements in the employment and income situation and high corporate profits. However, due to 
the declining global demand for IT -related goods and slowdown of the Chinese economy exports  in 
certain sectors remain weak since 2018. As a consequence, industrial production has been in a weak 
tone. Further attention shall be given to international trade issues and ambiguous economic trends 
and policies abroad, including the prospect of the Chi nese economy"  
 
Question 27  
Could Japan provide detailed information about expected impact of COVID -19 pandemic on Japan 
economy?  
 
RESPONSE  
The Japanese economy has been severely affected owing to the impact of the COVID -19. The 
economy was in an extremely severe condition from April to May as economic activities were 
suppressed under the state of emergency to prevent the spread of the infectious disease.  
Economic activity has gradually resumed since the state of emergency was lifted in late May, a nd 
private consumption is picking up and exports are bottoming out, although the influence of the 
infectious disease remains. As a whole, although the Japanese economy is still in a severe condition, 
it is showing movements of picking up.  WT/TPR/M/397/Add.1  
 
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Concerning future  prospects, it is expected that the economy will continue to show movements of 
picking up supported by the effects of government policies, while socio -economic activities will 
resume gradually with measures to prevent the spread of the infectious disease. However, full 
attention should be paid to the impact of the infectious disease on domestic and overseas economies.  
 
2. Trade and Investment Policy, 2.1. Overview, pg. 4, 2.3.  
 
It is stated in the Government Report that "Japan is currently a party to eighte en EPAs. Japan is 
aiming for the swift conclusion of RCEP negotiations among 16 countries, through which the FTA 
ratio will exceed 70%, as set out in the Growth Strategy 2019. Japan has also promoted its regional 
and bilateral trade policies as a means of complementing the multilateral trading system under the 
WTO and Japan believes that these agreements will serve as building blocks to achieve higher trade 
liberalization at the multilateral level."   
 
Question 28  
Could Japan explain how it reconciles its em phasis on protecting Japan's domestic markets, 
especially some agricultural and textile products, with its aim to reach a higher level of trade 
liberalization through bilateral or multilateral initiatives?  
 
RESPONSE  
Japan aims to take the lead in establishing comprehensive, balanced and high -level global rule 
through the conclusion and expansion of high -quality EPA/FTAs while taking into account both the 
offensive and defensive aspects.  
  WT/TPR/M/397/Add.1  
 
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UNITED KINGDOM  
Question 8  
Please can Japan outline whether t hey are taking measures to improve the share of foreign 
companies in Japanese public procurement? And if so, which measures are they taking?  
 
RESPONSE   
In terms of covered procurement, the central government announces the annual schedule of its 
procuremen t by holding a seminar once a year.  
 
FOLLOW -UP QUESTION : Could Japan further explain how this seminar works and what sorts of 
businesses typically attend these.   
 
RESPONSE  
At these seminars, the central government announces (1) general overview of the Japanese 
Government Procurement Procedures and (2) the annual schedule of the expected procurements.  
These seminars are open to domestic and foreign suppliers and members of f oreign missions / 
representative offices interested in the Japanese Government Procurements.  Various types of 
businesses attend these seminars; Electric Appliances, Telecommunications, Healthcare, etc. For 
foreign participants, the seminar held by the MOFA  (Ministry of Foreign Affairs) is conducted in 
Japanese, with simultaneous translation into English. The participants get detailed information on 
covered procurement through these seminars.  
 
Question 12  
Could Japan provide more information on recent refor m of service sector regulation, such as 
through legislation, to make Japan's service sector more open to international service providers.  
 
RESPONSE   
(1) New status of residence for acceptance of work -ready foreigners  
The Immigration Services Agency has i ntroduced the following 2 new status of residence for 
acceptance of work -ready foreigners who possess certain expertise and skills in fields where labour 
shortages exist in Japan (effective in April 2019):  
- Status of residence of Specified Skilled Worker  (i) – Based on the Basic Policy, this status of 
residence is applicable to foreigners who have successfully completed "Technical Intern Training 
(ii)" or who pass a qualifying test in 14 fields, many of which are service fields. The initial period of 
stay will be 1 year, 6 months or 4 months and can be renewed for a maximum of 5 years in total.  
- Status of residence of Specified Skilled Worker (ii) – This status of residence is applicable to 
foreigners who pass a higher -level qualifying test in 2 fields a t the moment, including construction 
services. The initial period of stay will be 3 years, 1 year or 6 months and can be renewed without 
limitation.  
(2) Amendment to the Telecommunications Business Act  
Japan's Diet approved an amendment to the Telecommun ications Business Act in May 2019 to 
facilitate fair competition in the mobile communication sector. The amendment prohibits mobile 
operators from offering discounts for retail communication charges at the time of sale of mobile 
handsets. It also prohibits  conditions which unduly constrain subscribers from cancelling contracts.  
 
FOLLOW -UP QUESTION  
The United Kingdom would like to ask Japan to expand on its response to Question 12 related to 
domestic reforms in the services sector.   Specifically, we are interested to know the extent to 
which legal services are covered by these and related reforms.   We understand that new rules 
governing legal services offered by foreign legal services providers are to enter into force later this 
year.  Can you please provide details about these new rules?    
 
RESPONSE  
The bill of Act on the Amendment Part of the Act on  Special Measures concerning the Handling of 
Legal Services by Foreign Lawyers was passed in May 2020.  
The revised law has three main features:  
1 The amendment expands the definition of the term "international arbitration cases", in which 
registered foreig n lawyers and qualified foreign lawyers are permitted to provide procedural WT/TPR/M/397/Add.1  
 
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representation. The amendment also establishes provisions on "international mediation cases", in 
which registered foreign lawyers and qualified foreign lawyers are able to provide representation.  
2 The amendment prescribes that a maximum of two total years (the previous Act prescribed a total 
of one year) of employment in Japan by an attorney at law or other such person while providing 
services based on knowledge of the laws of a pe rson's jurisdiction of qualification following that 
person's qualification to practice in a foreign jurisdiction will be deemed to constitute professional 
experience as a foreign lawyer, and counted toward the requirement of professional experience to 
become a registered foreign lawyer (at least three years of relevant experience is required following 
a foreign lawyer's qualification to practice in a foreign jurisdiction).  
3 The amendment creates a system for joint corporations (attorney at law/registered f oreign lawyer 
joint corporations) whose scope of practice is to provide full legal services, consisting both of 
attorneys at law and registered foreign lawyers.  
(1 and 2: effective on 29 August 29 2020)  
(3: effective within two years and six months from the date of promulgation)  
  WT/TPR/M/397/Add.1  
 
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MEXICO  
INFORME DE LA SECRETARÍA (WT/TPR/S/397)  
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3 Medidas que afectan directamente a la producción y al comercio  
3.3.4 Política de competencia y controles de precios  
3.3.4.1. Política de competencia  
 
(Págs 103 -104) 3.142. La política de competencia se sigue rigiendo por la Ley de Prohibición de 
los Monopolios Privados y Fomento del Comercio Leal de 1947 (la Ley Antimonopolio) (modificada 
por última vez en 2019,  véase infra), cuyo objetivo general es promover, entre otras cosas, la 
competencia libre y leal, estimular la iniciativa creativa de los empresarios y fomentar las 
actividades empresariales para mejorar las perspectivas de desarrollo económico y el bienes tar 
de los consumidores.160 La Comisión de Comercio Leal del Japón (JFTC) es el organismo encargado 
de la aplicación de la Ley Antimonopolio. Para garantizar una mayor transparencia en la aplicación 
de la legislación y aumentar la previsibilidad para las e mpresas, la JFTC ha publicado directrices 
sobre diversas cuestiones relativas a los monopolios y el comercio desleal, entre otras, tratadas 
en la Ley Antimonopolio, así como normas detalladas para las investigaciones. Toda la legislación 
y las normas de ap licación están publicadas en el sitio web oficial de la JFTC.161 
 
1. ¿Cuáles son los sectores que regula la Comisión de Comercio Leal de Japón?  
 
RESPONSE  
The Antimonopoly Act (AMA), which the JFTC  enforces, prohibits acts by enterprises or trade 
associations restraining competition regardless of business fields.  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3. Medidas que afectan directamente a la producción y al comercio  
3.3.4. Política de  competencia y controles de precios  
3.3.4.1 Política de competencia  
 
(Págs. 104 -105) 3.146. Algunas actividades o prácticas empresariales permanecen fuera del 
ámbito de aplicación de la Ley Antimonopolio. La competencia en esos ámbitos puede regirse por 
otros instrumentos legislativos y estar sujeta a la supervisión de distintas instituciones (cuadro 
3.16). No se ha introducido ninguna nueva exención desde 2017. Para garantizar la transmisión 
fluida y adecuada del impuesto sobre el consumo cua ndo se incremente el tipo de impuesto, en 
junio de 2013 se aprobó y promulgó la Ley de Medidas Especiales para Corregir las Prácticas que 
Impiden la Transmisión del Impuesto sobre el Consumo, entre otras, con el objetivo de Garantizar 
una Transmisión Fluid a y Adecuada del Impuesto sobre el Consumo. La Ley, que entró en vigor el 
1º de octubre de 2013, debía permanecer vigente hasta el 31 de marzo de 2017. En noviembre 
de 2016 fue modificada para prorrogar su vigencia hasta el 31 de marzo de 2021, debido a qu e 
se aplazó el aumento programado del tipo impositivo (secciones 1.1 y 1.2). La Ley prohíbe, entre 
otras, las siguientes conductas: eludir, mediante una reducción o subvaloración de los precios, el 
traslado de los impuestos sobre el consumo; y solicitar qu e, a cambio de aceptar el traslado de 
los impuestos sobre el consumo, se compren productos, utilicen servicios o confieran ventajas 
económicas. Y excluye del ámbito de aplicación de la Ley Antimonopolio a los cárteles de 
transmisión y los cárteles de repre sentación entre empresas o asociaciones mercantiles si se 
cumplen los siguientes requisitos: presentación de una notificación previa a la JFTC; en lo que 
concierne a los cárteles de transmisión, que al menos dos terceras partes de las empresas 
participante s sean pequeñas y medianas empresas; las "decisiones relativas a un acuerdo sobre 
los precios" quedan excluidas de la exención; y, en lo que concierne a los cárteles de 
representación, solo está exenta la práctica concertada en relación con las decisiones sobre 
métodos de representación que afecten a los impuestos sobre el consumo.  
 
2. ¿Cuáles son las actividades o prácticas empresariales que permanecen fuera del 
ámbito de aplicación de la Ley Antimonopolio?  
RESPONSE  
The Antimonopoly Act does not apply to t he following acts: acts found to constitute an exercise of 
rights under certain laws such as the Copyright Act (Article 21); certain acts by a partnership 
(Article 22); and certain resale price contracts (Article 23). Moreover, as of March 2020, there are WT/TPR/M/397/Add.1  
 
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16 laws other than the AMA that stipulate the exemptions of the Antimonopoly Act regarding 
certain enterprises or acts of trade associations.  
3. ¿ Existe algún tipo de relación o coordinación entre las distintas instituciones que 
supervisan temas de competencia?  
 
RESPONSE  
The JFTC holds consultations with an administrative agency to ensure coordination from the 
viewpoint of the Antimonopoly Act and competition policy when the agency plans to enact or 
amend a law or ordinance.  
 
4. POLÍTICAS COMERCIALES , POR SECTORES  
4.4. Servicios  
4.4.2. Servicios de telecomunicaciones  
 
(Págs. 194 -195) 4.179. Cabe reseñar un cambio importante en relación con la portabilidad 
numérica. Desde la entrada en vigor del Plan de Números de Telecomunicaciones (Aviso público 
Nº 6 del Ministerio de Asuntos Internos y Comunicaciones (2019)), en mayo de 2019, se exige a 
los operadores de telecomunicaciones que adopten las medidas necesarias para permitir la 
portabilidad de los números entre ellos a más tardar a finales de enero de 2025.  
 
4. ¿Cuáles son las medidas que se le han exigido a los operadores  para permitir la 
portabilidad de números entre ellos?  
 
RESPONSE  
The "Telecommunication Number Plan", which came into effect on May 2019, requires 
telecommunications operators who use fixed telephone numbers for the telecommunications 
services to enable mutual number portability by the end of January 2025. The details on how to 
realize this fixed telephone number portability are to be discussed among the telecommunications 
operators. Also, mobile number portability has been available among mobile t elecommunications 
operators since October 2006. In introducing mobile number portability, the Ministry of Internal 
Affairs and Communications issued the guidelines in May 2004 for the matters regarding number 
portability such as cost burden and implementat ion methods including the network connection 
method and the number management method.  
 
4. POLÍTICAS COMERCIALES, POR SECTORES  
4.4. Servicios  
4.4.2. Servicios de telecomunicaciones  
 
(Pág. 195) 4.182. Aparte de esas pequeñas modificaciones técnicas del régimen de 
telecomunicaciones y de la implantación de redes 5G -LTE y de programas experimentales sobre 
la Internet de las cosas y la inteligencia artificial, la política gubernamental en materia de 
telecomunicaciones durante el período examinado se ha cent rado en dos aspectos fundamentales: 
la protección del consumidor y la reducción de los costos relacionados con el uso de los teléfonos 
móviles.  
 
5. ¿Cómo ha sido la reducción de los costos relacionados con el uso de los teléfonos 
móviles?  
 
RESPONSE  
Regarding mobile phone charges, Japan has been facilitating a fair competition environment 
including by the amendment to the Telecommunication Business Act in October 2019, which 
separates the connection fee from the price of mobile phone handsets and bans  excessive  
customer capture . Japan expects that both the connection fee and the price of mobile phone 
handsets  will decrease as there will be more competition in the market.  
Please refer to 4.187 of the report by the secretariat for the details of the rev ised 
Telecommunication Business Act enforced in October 2019.  
 WT/TPR/M/397/Add.1  
 
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4. POLÍTICAS COMERCIALES, POR SECTORES  
4.4. Servicios  
4.4.2. Servicios de telecomunicaciones  
 
(Pág. 195) 4.187. Primeramente, en mayo de 2019 se revisó la Ley de Telecomunicaciones 
(mediante una ley de modificación parcial de la Ley de Telecomunicaciones, la Ley Nº 5 de 2019), 
a fin de prohibir la aplicación de descuentos en las tarifas de conexión  y de los teléfonos móviles 
cuando se vendan la conexión y el dispositivo conjuntamente, a partir de septiembre de 2019. El 
descuento sobre los teléfonos móviles cuando se vende la conexión y el teléfono de manera 
conjunta, y el aplicado a los teléfonos mó viles para los nuevos clientes, se limita a JPY 20.000 
(esta limitación figura en la Orden Ministerial de aplicación de la ley que estipula la cantidad 
específica de beneficios que se pueden otorgar si se ofrecen condiciones ventajosas a los clientes). 
La Ley también dispone que la diferencia máxima entre el plan de precios con limitación temporal 
y el plan sin limitación temporal será de JPY 170 mensuales. Esta norma se aplica a los tres 
principales operadores de telefonía móvil (NTT DOCOMO Inc., SoftBank Corp. y KDDI Corp.) y a 
Rakuten, la empresa de comercio electrónico que entró en el mercado de la telefonía móvil. El 
objetivo de estas medidas es lograr que la tarifa de conexión esté totalmente desvinculada del 
precio de los teléfonos móviles y prohibir la captación excesiva de clientes.  
 
6. Además de las mejoras y el fortalecimiento en las normas de protección al usuario. 
¿qué otras modificaciones se realizaron a la Ley de Telecomunicaciones en 2019?  
 
RESPONSE  
The amendment to the Telecommunications Business Act in 2019, in addition to the details 
described in 4.189 of the report by the secretariat, introduced the notification system for sales 
agents in order to ensure the properness of the business by sales agents and protect the i nterests 
of users. Moreover, the amendment prohibits telecommunications operators or sales agents from 
soliciting consumers without telling their name or letting the customers know that it is a solicitation 
in advance.  
 
II. INFORME DEL JAPÓN (WT/TPR/G/397)   
 
4 POLÍTICAS INTERNAS DEL JAPÓN  
4.3 Reforma financiera  
(Pág. 17) 4.5. En respuesta a la evolución de la tecnología de la información y a sus repercusiones 
en los servicios financieros, el Japón ha adoptado la Ley de Revisión Parcial de la Ley de Banca 
(promulgada el 26 de mayo de 2017) a fin de promover la cooperación y colaboración adecuadas 
entre las instituciones financieras y las empresas de tecnología de la información relacionadas con 
el sector financiero, así como para asegurar la protección de los  usuarios. La Ley establece 
disposiciones relativas a los proveedores de servicios de pago electrónico. Entre las medidas 
previstas figuran las siguientes:  
1. Medidas aplicadas a los proveedores de servicios de pago electrónico para la implantación de 
un sistema de protección y un mecanismo de control seguro de la información:  
• Implantar un sistema para la protección de los usuarios;  
• Garantizar un control seguro de la información;  
• Asegurar una base financiera suficiente.  
2. Conclusión de un contrato con instituciones financieras:  
• Concluir un contrato que prevea los siguientes aspectos:  
➢ La responsabilidad compartida del banco y del proveedor de servicios de pago electrónico 
respecto a la obligación de compensar por toda pé rdida o daño que puedan sufrir los usuarios de 
los servicios de pago electrónico;  
➢ La gestión adecuada y el control seguro de la información sobre los usuarios.  
3. Medidas destinadas a las instituciones financieras para la promoción de la innovación abier ta: 
• Formular y dar a conocer los planes de cooperación y colaboración con el proveedor de servicios 
de pago electrónico;  
• Formular y dar a conocer las normas relativas a la conexión con el proveedor de servicios de 
pago electrónico;  
• Procurar la implan tación de un sistema de API abierta.  
4. Otras medidas  
• Permitir que las sucursales de bancos extranjeros en el Japón escojan el ejercicio económico (de 
1º de abril a 31 de marzo del año siguiente, o bien el mismo período que abarca el ejercicio 
económico del banco extranjero) para la presentación reglamentaria de informes con arreglo a la WT/TPR/M/397/Add.1  
 
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Ley de Banca.  
• Suprimir el requisito de notificación relativa a los agentes bancarios en caso de cambio temporal 
del domicilio de la oficina comercial.  
 
7. En relación a  la Ley de Revisión Parcial de la Ley de Banca, ¿se podría brindar mayor 
información sobre las medidas aplicadas para la protección del usuario y garantizar un 
control seguro de la información?  
 
RESPONSE  
Please refer to Chapter VI-5 of the Banking Act in the following link.  
http://www.japaneselawtranslation.go.jp/law/detail/?id=3534&vm=04&re=02&new=1  
For further information, please refer to Chapter IX of the Compr ehensive Guidelines for 
Supervision of Major Banks, etc. in the link below (only available in Japanese).  
https://www.fsa.go.jp/common/law/guide/city/09.html  
 
 
  WT/TPR/M/397/Add.1  
 
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EU FOLLOW -UP QUESTIONS  
WT/TPR/S/397 – WTO Secretariat's Report  
 
Section 3.3.3.1 SPS measures; para.3.122, page 86.  
Initial EU question N° 7  
According to the Secretariat's report: "The key agencies responsible for SPS measures are contained 
in Box 3.2; there were no major changes to this institutional framework over the review period."  
The report states that there has not been any major institutional change with regard the agencies 
responsible for SPS measures. However, within that framework, especially in agro -food s ector and 
more specifically related to plants and vegetables, the approach followed by the responsible body is 
"one country -one product" as there are no resources to widen their activities. As a result, it is usual 
that the procedures to open the Japanese market for these products could take more than a decade.  
Has Japan envisaged increasing resources to these agencies so that negotiations of bilateral 
protocols could not take so many years to be approved and enacted?  
Reply  
When a request for lifting a ban on plant import is made, evaluation is carried out based on the 
scientific data.  
The procedure for the evaluation and the progress of individual case are made public, being managed 
under a full transparency.  
 
➢ EU follow -up question  1 
The EU welcomes the transparency on the procedure. The EU would, however, welcome 
also a reply on whether Japan has envisaged increasing resources to these agencies 
and/or adopting any other measures so that negotiations of bilateral protocols could be 
shortened and not result in long delays?  
 
RESPONSE  
Bilateral consultations with regard to SPS measures are carried out based on scientific data with 
available resources.  
 
Section 3.3.3.1 SPS measures; para. 3.124, page 87.  
Initial EU Question N° 8  
According to the report, Japan has lifted age restrictions to beef imported from some countries. 
However, currently other countries are not allowed to export beef if the animal is above 30 months 
age. 
Question N° 8: Could Japan explain the scientific principles, not follow ed by the Organization for 
Animal Health, on the basis of which there should be a distinction between animals of 30 months of 
age when it comes to evaluate the risk assessment of BSE?  
Reply  
In general, SPS measures of Japan are based on relevant international standards, or where its 
measures do not conform to relevant international standards, based on scientific risk assessment, 
in accordance with the SPS Agreement. The SPS Agreement requires  that the SPS measures 
conducted by WTO members are based on scientific principles. As for BSE regulations, MHLW 
requests risk assessment to FSCJ taking into account the OIE evaluation.  
For relaxing further age restrictions based on the international stan dards regarding beef from 
countries where BSE occurred, MHLW has already lifted the age restrictions for U.S., Canada and 
Ireland in May 2019, and for France and Norway, we are discussing review of import conditions, 
based on results of risk assessments on  lifting age restrictions by FSCJ. For other countries, FSCJ 
will be able to complete the assessment when all the necessary information, such as more data 
collected by the risk management organizations and new scientific evidences, become available. 
After FSCJ notifies MHLW of the risk assessment result, MHLW will consider further relaxation of the 
beef import requirement based on the result of risk assessment.  WT/TPR/M/397/Add.1  
 
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➢ EU follow -up question  2 
Could Japan please explain the scientific rationale for not allowing impo rt to Japan of beef 
from animal above 30 months age?  
RESPONSE  
SPS measures of Japan are in general based on relevant international standards or scientific risk 
assessment, where the measures do not conform to relevant international standards, in accordanc e 
with the SPS Agreement.  
The SPS Agreement requires that the sanitary or phytosanitary measures conducted by WTO 
Members are based on scientific principles. As for BSE regulations, the MHLW requests risk 
assessment to FSCJ taking into account the recognit ion of OIE.  
In relation with relaxing further age restrictions based on the international standards regarding beef 
from countries where BSE occurred, the MHLW has already lifted the age restrictions for U.S., Canada 
and Ireland in May 2019, and, is discus sing about review of import conditions, based on results of 
risk assessments on lifting age restrictions by FSCJ in January 2020, with France and Norway. For 
other countries, FSCJ will be able to complete the assessment when all the necessary information, 
such as more data collected by the risk management organizations and new scientific evidences, 
become available. After FSCJ notifies the MHLW of the risk assessment result, the MHLW will consider 
further relaxation of the beef import requirements based on the result of risk assessment.  
 
Section 3.3.3.2.3 On the Planet Protection Act; para. 3.131, page 89.  
Initial EU Question N° 11  
The EU thanks Japan for the information provided on standard processing periods as per information 
under paragraph 3.129 on the Food Sanitation Act on MRL and food additives. Similarly, the EU 
would welcome information on the standard processing periods fo r conducting the risk assessment 
prior to approval of imports of fruits and vegetables for consumption.  
Reply  
When a request for lifting a ban on plant import is made, evaluation is carried out based on the 
scientific data. If a measure to prevent introdu ction and spread of pests is established, the ban will 
be lifted.  
The procedure for the evaluation and the progress of individual case are made public, being managed 
under a full transparency  
➢ EU follow -up 3 
The EU welcomes the transparency on the procedur e. However, the EU would also 
welcome information on the standard processing periods (approximate time needed) for 
conducting the risk assessment prior to approval of imports of fruits and vegetables for 
consumption.  
 
RESPONSE  
As evaluation is carried out based on scientific data and each case takes different time, it is difficult 
to anticipate and indicate the "standard processing period".  
 
Section 3.3.6 Government procurement; para. 3.168, page 101  
Initial EU Question N° 14  
1. What was the for eign companies share (in %) of number of contracts awarded to them in 2018 
and 2019:  
a) at central government level,  
Reply  
2.4% for number of contracts awarded in 2018. Data for 2019 is not yet available.  
b) at sub -central level?  
Reply  
There is no avai lable data for the foreign companies' share at sub -central level.  
What is the trend over the last 5 years?  
Reply  
It was around 2 -3% share at central government level.  WT/TPR/M/397/Add.1  
 
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➢ EU follow -up question  4 
The EU thanks Japan for the information - at central government level - regarding the 
foreign companies share (in %) of number of Government Procurement contracts in 2018 
(2019) and the trend over the last 5 years.  
At the same time, the EU would be grateful for such information regarding the sub-central 
level (per prefecture).  
RESPONSE  
There is no available data for the foreign companies' share at the sub -central level (per prefecture).  
 
Initial EU Question N° 15  
What actions does Japan undertake in order to increase the participation of fore ign companies in the 
government procurement market in Japan, in particular to address the non -regulatory barriers 
mentioned in the report?  
Reply  
In terms of GPA covered procurement, the central government announces in advance the annual 
schedule of its pr ocurement and holds a seminar on Japan's government procurement for foreign 
entities and diplomatic corps stationed in Tokyo.  
➢ EU follow -up question  5 
The EU would welcome the information regarding Japan's actions undertaken at sub -
central level in order to increase the participation of foreign companies in the government 
procurement market.  
RESPONSE  
At sub -central level as well, in order to increase th e participation of foreign companies in the 
government procurement market, Japan has established, on a voluntary basis, non -discriminatory, 
fair and transparent procedures that surpass the level of obligations stipulated in the GPA under the 
domestic laws and ordinances. For foreign supplier's convenience, "Suggestions for Accessing the 
Government Procurement Market of Japan" is published in English on MOFA's website 
https://www.mofa.go.jp/files/000 037391.pdf , and Japan has established a single -access database 
of the Government Procurement at the JETRO's website so that everyone is able to access the tender 
information (summary) in English (https://www.jetro.go.jp/en/database/procurement/  ).  
Section 4.1.1.4 Trade policies and border measures; table 4.6, page 132  
Initial EU Question N° 33  
According to the report by the Secretariat, the fill rate of Japan's TRQs ranges from 23.4% to 
305.6%. Could Japan clarify how the fill rate of a TRQ, notably the one on "designated dairy products 
for general use" can be higher than 100%?  
Reply  
The import s of the TRQ for "designated dairy products for general use" are implemented by state -
trading with a view to stabilizing supply -demand for dairy products.  
➢ EU follow -up question  6 
The EU would welcome more clarification on how the fill rate of a TRQ, notabl y the one on 
"designated dairy products for general use" can be higher than 100%.  
RESPONSE  
The imports of "designated dairy products for general use" are implemented by state -trading to 
meet the domestic demand. The fill rate in the report is calculated based on the quantity established 
as the result of Uruguay Round negotiation. Since then, the demand has increased and accordingly 
actual imports as well.  This is reflected in the calculated fill rate in question, which apparently goes 
beyond 1 00%.  
 WT/TPR/M/397/Add.1  
 
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Section 4.1.2.6 Border and domestic support measures for Fishery; page 147  
Initial EU Question N° 35  
Can Japan provide information regarding the functioning of IQ system for fishery products managed 
by METI?  
Reply  
This quantitative import restricti ons (import quotas), which is administered by METI in cooperation 
with MAFF, play an important role in the conservation and management of fisheries resources in 
waters adjacent to Japan.  
➢ EU follow -up question  7 
The EU would like to receive more clarifications regarding the functioning of IQ system 
for fishery products managed by METI in cooperation with MAFF.  
RESPONSE  
Quantitative import restrictions (import quotas) play an important role in the conservation and 
management of fisheries resources in waters adjacent to Japan. The import quotas for these 
resources complement Japan's fisheries management measures such as total allowable catch (TAC) 
scheme, which manages catch of these fish species. This system is cons istent with the 1994 GATT 
(Article  XI 2(c) and Article XX(g)), and was notified to the WTO. The government of Japan will 
continue to implement this system in an appropriate manner.  
  WT/TPR/M/397/Add.1  
 
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CHINA FOLLOW -UP QUESTIONS  
PART I: QUESTIONS REGARDING THE SECRETARIAT REP ORT 
Page 108 ，Para 3.181  
There is a clear link between the 2018 IP Strategic Programme and the modifications that were 
made to Japan's IP laws during the review period, including expansions in the scope and breadth of 
protection for designs, new data protec tions, new flexible copyright restrictions that account for the 
rise of digitization and networking, and modifications to litigation procedures and damages 
calculations intended to facilitate the enforcement of IPRs. Japan's IP regime was also influenced b y 
international commitments, particularly the entry into force of the CPTPP and the EU Japan EPA. 
These agreements prompted some significant amendments, including an extension of the copyright 
term of protection from 50 to 70 years, and high -level protecti on for more than 200 European 
geographical indications (GIs).  
 
Questions  
1. What are the specific contents of Japan's modifications to the damages calculations to facilitate 
the enforcement of the IPRs?  
 
RESPONSE  
Details about review of damages calculation method are below.  
*Similar measures have also been taken for the Utility Model Act, Design Act and Trademark Act.  
1. For the portion of the profits made by the infringer whose need for compensation was denied on 
the basis that it was beyond the patent rights -holder's production/sales capacity, etc., the revision 
has ena bled the rights -holder to request damages by deeming that it had licensed the portion to the 
infringer.  
 
2. The revision clearly states that damages calculation can take into consideration the amount likely 
to have been determined if negotiations were cond ucted assuming patent rights infringement when 
a court determines the amount equivalent to the amount of money to be received for the 
implementation of the patent invented.  
 
2. What other specific impacts do the aforementioned international agreements have  on Japan's IP 
laws?  
 
RESPONSE  
In accordance with conclusion of CPTPP and the Japan -EU EPA, amendments were made to relevant 
provisions of the Copyright Act, the Patent Act, the Trademark Act and the Act on Protection the 
Names of Specific Agricultural, Fo restry and Fishery Products and Foodstuffs (Act No.84 of June25, 
2014) ("the GI Act") as follows;  
 
<Amendments in accordance with CPTPP>  
 The Copyright Act  
1. Extending the duration of copyright and related right from 50 to 70 years  
2. Introducing measures  to prevent the circumvention of access controls  
3. Ex officio prosecution of certain criminal infringement  
4. Right to remuneration for secondary use of sound recordings  
5. Addition of a new method using a collective management organization royalty rule to calculate 
compensatory damages  
 
 The Patent Act  
1. Extending the period for claiming an exception to lack of novelty of invention, during which 
novelty of an invention is not denied by publication resulting from the act of, against the will of the 
perso n having right to obtain a patent prior to the filing of a patent application, from six months to 
one year  
2. Introducing the system of patent term extension in cases where the establishment of the 
patent right is registered after 5 years from the filing d ate of an application, or 3 years from the 
filing date of a request for examination, whichever is later  
 
 The Trademark Act  
Introducing a statutory damages system pertaining to trademark counterfeiting  
 WT/TPR/M/397/Add.1  
 
- 267 - 
 
 The GI Act  
Introducing provision to enable mutual pr otection of geographical indications through international 
agreements with foreign countries  
 
Amendment in accordance with Japan -EU EPA  
 The GI Act  
1. Limiting the prior use period up to 7 years  
2. Expanding the regulatory scope to the use of GIs on advertisement materials, price list or 
transaction document  
3. Regulating suggestive means which mislead public including the combination of text and figure  
 
3. Please elaborate on the details of Japan' s high -level protection for more than 200 European 
geographical indications (GIs).  
 
RESPONSE  
71 European geographical indications (GIs) for agricultural products are in high -level protection 
which applies to labelling on the products, advertisement, and de scription on internet as well as 
other similar actions. Regarding use of GI not meeting relevant requirements of GI specification, the 
use of GI is prohibited when the use misleadingly indicates that the product is an authentic GI 
products. Prohibition app lies to use of GI even where a) the origin is correctly indicated, b) the GI 
is in translation or transliteration and c) the GI is accompanied with "kind", "type", "style", 
"imitation", or the like.  
 
139 European GIs for alcoholic beverages are in high -level protection.  
(https://www.nta.go.jp/taxes/sake/yushutsu/pdf/chiritekihyouji.pdf ) 
 
Page 109 ，Para 3.185  
Compared with the United States, Japan has only recently initiated a legal framework for promoting 
the commercialization of government -financed innovations and public -private collaboration. In 1998, 
Japan introduced technology licensing organizations (TLOs) at universities, to promote the transfer 
of technology to industry,  followed one year later by the Act on Special Measures Concerning 
Revitalization of Industry and Innovation in Industrial Activities (Japan's analogue to the 1980 US 
Bayh Dole Act), which transferred rights associated with government funded research resul ts from 
the Government to individual researchers. Then, in 2004, following the privatization of national 
universities, universities gained the right to own and license patents associated with the results of 
research generated by their professors.  
 
Question s 
4. Please brief on the implementation effect of the Act on Special Measures Concerning Revitalization 
of Industry and Innovation in Industrial Activities.  
 
RESPONSE  
A study shows that the effect that the utilization rate of patents obtained under the act  is higher 
than that of government -owned patents.  
 
5. What are the benefits of the Act? Which parts of the Act need be improved?  
 
RESPONSE  
The benefit is that Japan can vitalize technology -related research and development activities and 
promote effective utilizations of the results thereof in business activities. Japan is of the view that 
any improvements are not necessary at this stage.  
 
Page 109 ，Para 3.189  
In 2018, the JPO  established the "IP acceleration programme for start -ups", which dispatches expert 
teams of venture capitalists, business consultants, and attorneys to provide hands -on support in the 
early stages of development to selected start -ups. The JPO also offers "super accelerated 
examination" to start -ups, so they can obtain patent rights within one month for inventions that are 
already being worked. Most recently, the JPO launched IP Base, an online community providing 
essential information on IP strategies, JPO  support, event information, and access to IP experts for 
start-ups. Start -ups can also expect to benefit from government procurement programmes, set forth 
in the 2018 IP Strategy Vision, to promote partnerships between start -ups and existing businesses.  
 WT/TPR/M/397/Add.1  
 
- 268 - 
 
Questions  
6. What are the conditions and specific procedures for obtaining services related to "super 
accelerated examination"?  
 
RESPONSE  
The conditions are that the applications for inventions "that have already been put into practice and 
that are also fi led in one or more other countries," or "that are applied by startups and that have 
already been put into practice."  
A request for a super -accelerated examination will be made by submitting a form of"written 
explanation of the needs of the super -accelerat ed examination." It is necessary to describe 
circumstances related to a filing of a super -accelerated examination, disclosures of the prior art 
documents and explanations of the comparisons with the invention and the prior art, etc. in the form 
of "written  explanation of the needs of the super -accelerated examination."  
 
7. Can foreign applicants enjoy the services related to "super -accelerated examination"?  
 
RESPONSE  
Foreign applicants can enjoy the services related to "super -accelerated examination."  
 
Page 109，Para 3.190  
Japan is adapting its IP regime and associated processes to the development of Big Data, artificial 
intelligence (AI) technologies, and the Internet of Things (IoT). Standard essential patents (SEPs), 
which are essential to implement stand ards in fields such as wireless communications, have become 
critical to the development and implementation of new technologies, and licences are increasingly 
sought by companies in previously distinct industries with diverse sets of technical knowledge and  
corporate cultures. In response to increasing disputes over SEPs, Japan launched several initiatives 
during the review period.  
Page 110 ，Para 3.191  
First, the JPO published a non -binding Guide to Licensing Negotiations Involving Standard Essential 
Patents,  in order to enhance transparency and predictability, facilitate negotiations, and help prevent 
or quickly resolve disputes. The Guide draws upon relevant court decisions in various countries, and 
thus attempts to articulate global norms. Second, the JPO e xpanded its "Hantei" advisory opinion 
service on whether a patent claim reads on a product, to offer opinions on standard essentiality in 
April 2018. Although the opinions are non -binding, they are influential in licensing negotiations, and 
facilitate disp ute resolution. Third, a new specialized IP International Arbitration Centre opened in 
Tokyo in 2018. Although it can handle a range of matters, it claims to be uniquely capable of 
resolving complex disputes involving SEPs.  
 
Questions  
8. In addition to the  JPO, which Japanese government authorities are also responsible for SEP -
related affairs?  
 
RESPONSE  
As a national standard body, JISC (Japanese Industrial Standards Committee) provides a guidance 
that asks a declaration of a patent right inclusion in the s tandard by the stakeholders at its 
developing stage. JISC sets such general guidance following the Common Patent Policy for ITU -
T/ITU -R/ISO/IEC. However, the JPO and JISC are not responsible for any disputes related to SEP 
issues.  
 
9. Does Japan have bindi ng laws, regulations or other provisions related to SEPs?  
 
RESPONSE  
As the JPO, we are not aware of any binding laws, regulations or other provisions specific to SEPs.  
 
10. What is the nature of the new IP International Arbitration Centre? What is the relationship 
between the JPO and the new IP International Arbitration Center?  
 
RESPONSE  
International Arbitration Centre (IACT) is an independent private institution. The JP O, if necessary, 
cooperates with IACT, as with other arbitration institutions, for activation of international 
arbitrations.  
 WT/TPR/M/397/Add.1  
 
- 269 - 
 
Page 117 ，Para 3.218  
Except for an adjustment to the calculation of infringement damages, discussed in Section 3.3.7.12, 
there were  no significant amendments to the Utility Model Act or the process for registering a UM, 
during the review period. Applications and registrations of UMs continued their decades -long decline. 
Almost all applications lead to grant (Table 3.27), and are regis tered faster than patents since there 
is no substantive examination.  
 
Questions  
11. What is the reason for the continued decline in the number of applications of UMs in Japan?  
 
RESPONSE  
Patents are registered through substantive examinations, and patent term is 20 years from the filing 
date. On the other hand, UMs are registered without substantive examinations, and the term of the 
right is 10 years from the filing date.  
In terms of the enforceability, applicants may prefer patent to UM.  
 
12. How l ong is the examination cycle for UMs?  
 
RESPONSE  
There is no substantive examination in UM system.  
 
13. Based on the current status of the UM system, does Japan have any relevant considerations or 
plans for the future development of the UM system?  
 
RESPONSE  
There is an opinion in Japan that it should be applied to technologies with short life cycles. However, 
at this time, the JPO has no plans to change the UM system.  
 
Page 119 ，Para 3.229  
Japan's Regional Collective Trademark System (RCT ), introduced in 2006 and managed by the JPO, 
co-exists with the sui generis system of GI protection introduced in 2015 under the authority of the 
MAFF (Section 3.3.7.9).  
 
Questions  
14. Are there any conflicts between Japan's Regional Collective Trademark System and the sui 
generis system of GI protection during the processes of implementation? If so, in what ways? How 
to resolve these conflicts?  
 
RESPONSE  
In order to avoid conflicts between Japan's Trademark Act and GI Act*, we have introduced 
provisions t o coordinate the trademark right and the protection of GI by each law.  
In case of an application for registration of a GI which is identical or similar to a registered trademark, 
the GI is registered only if the applicant has obtained the approval of the t rademark right holder 
(and exclusive licensee) pertaining to the registered trademark with regard to the registration of the 
GI.  
Meanwhile, the Trademark Act provides that a trademark right shall have no effect against the 
legitimate use of a protected GI . 
*Act on Protection of the Names of Specific Agricultural, Forestry and Fishery Products and 
Foodstuffs  
 
15. Has Japan's sui generis system of GI protection been adjusted due to the EU -Japan EPA? If so, 
what are the specific changes?  
 
RESPONSE  
Regarding G Is for agricultural products, the GI act (the Act on Protection the Names of Specific 
Agricultural, Forestry and Fishery Products and Foodstuffs (Act No.84 of June25, 2014)), the changes 
are as follows in response to the Japan -EU EPA:  
− Limiting the prior us e period up to 7 years,  
− Expanding the regulatory scope to the use of GIs on advertisement materials, price list or 
transaction document, and,  
− Regulating suggestive means which mislead public including the combination of text and 
figure  WT/TPR/M/397/Add.1  
 
- 270 - 
 
16. With regard to t he sui generis system of GI protection, does Japan apply the same legal system 
to both domestic and foreign products?  
 
RESPONSE  
Regarding GIs for agricultural products, the GI act (the Act on Protection the Names of Specific 
Agricultural, Forestry and Fish ery Products and Foodstuffs (Act No. 84 of 25 June 2014)) applies to 
both domestic and foreign products.  
 
GIs for alcoholic beverages are protected under the National Tax Agency Notice No. 19 of 2015 
(Notice on Establishing Indication Standards Concerning Geographical Indications for Liquor) based 
on Act Concerning Liquor Business Associations and Measures for Securing Revenue from Liquor Tax 
(Act No. 7 of 1953). This protection applies to both domestic and foreign products.  
 
Page 120 ，Para 3.235  
Application s for all GIs except those applied to alcoholic beverages are handled by the MAFF. 
Applications for GIs for alcoholic beverages are submitted to the Commissioner of the National Tax 
Agency, and designated in accordance with the Indicating Standards Concern ing Geographical 
Indications for Liquor…  
 
Question  
17. Are GIs for alcoholic beverages and other GIs protected under the same laws?  
 
RESPONSE  
GIs for alcoholic beverages are protected under the National Tax Agency Notice No.19 of 2015 
(Notice on Establishing Indication Standards Concerning Geographical Indications for Liquor) based 
on Act Concerning Liquor Business Associations and Measures for Securing Revenue from Liquor Tax 
(Act No.7 of 1953).  
 
18.Are the tort liabilities of the two groups of G Is the same? If not, what are the differences?  
 
RESPONSE  
The two groups of GIs are under different acts.  
Regarding illicit use of GIs for agricultural products, illicit use of GI marks, and breach of the 
producer's duty, in accordance with GI Act, MAFF ord ers to stop illicit use of GIs etc. If they don't 
follow, they will be subject to the penalties. In case of illicit use of GIs, the penalty is as follows:  
(a) any person who has violated the provisions is imprisoned no more than 5 years or is fined no 
more than 5 million yen and  
(b) any corporation and the like which has violated the provisions is fined no more than 300 million 
yen. 
 
GIs for alcoholic beverages are protected by the administrative action for illicit use based on Act 
Concerning Liquor Busine ss Associations and Measures for Securing Revenue from Liquor Tax (Act 
No.7 of 1953). The details of the administrative action are as follows:  
 
 
WT/TPR/M/397/Add.1  
 
- 271 - 
 
Page 77 ，Para 3.80  
Total central government tax revenue in Japan in FY2019 was JPY 62,495 billion, with the big gest 
contributions from: income tax, the consumption tax, and corporation tax. Revenue from customs 
duties accounted for 1.65% of the total in the same year (Table 3.10).  
 
Page 77 ，Para 3.86  
National and local taxes on tobacco are being raised by JPY 3 per cigarette in a three -phased period 
(JPY 1 per cigarette in each phase) which started in 1 October 2018. A new tax category was created 
for heat -not-burn tobacco products, and the taxation system will be revised in consideration of the 
products' characteris tics. The phase -out of the preferential tax treatment for Japanese -produced 
"third class cigarettes" was completed in 2019; all cigarettes are now taxed at the same rates.  
 
Question  
19. Please explain the composition of Japan' tax rate on cigarettes. Pleas e evaluate the effect of 
raising the tobacco tax?  
 
RESPONSE  
Please refer to figures below about tobacco tax rates and the effect of raising the tobacco tax in 
FY2018 tax reform.  
 
 
 
 
 
WT/TPR/M/397/Add.1  
 
- 272 - 
 
 
 
20. Does "CONSUMPTION TAX" in Table 3.10 "Japan's tax revenue, FY2015/19" include the tax 
revenue from cigarettes? What is the difference from the "TOBACCO TAX" in a line below it of the  
same table?  
 
RESPONSE  
"CONSUMPTION TAX" in Table 3.10 include the consumption tax revenue from cigarettes.  
"CONSUMPTION TAX" is value -added tax (VAT), whereas "TOBACCO TAX" is excise tax.  
 
Page 99 ，Para 3.160  
According to Japan's latest WTO notification pursuant to the provisions of Article XVII: 4(a) of the 
GATT 1994 and  paragraph 1 of the understanding on the interpretation of Article XVII and covering 
the period 2015 -17, four state -trading enterprises remained operational (Table 3.19).  
 
Page 126 ，Para 4.5  
Imports of agricultural products are widely spread across many dif ferent tariff lines, with the top ten 
products representing 41% of total agricultural imports (Table 4.3).  
 
Page 127 ，Para 4.6  
Agricultural exports tend to be processed products; in almost all top ten export categories, there 
was a steady increase in both v olume and value terms over the period 2014 -18, with the notable 
exception of cigars, cheroots, cigarillos and cigarettes, which saw a marked decline (Table 4.4).  
 
Page 141 ，Para 4.50  
For 2019, the total area is set at 6,886 ha (down 4.8% from 2018) and grow er prices are set at JPY 
1,912.3 per kg (up 1.3% from 2018).  
 
Question  
21. According to Table 4.3 "Imports of agricultural products, 2014 -2018" and Table 4.4 "Exports of 
agricultural products, 2014 -2018", the import volume and value of the raw materials of  leaf tobacco 
increased year by year, while the import and export volumes and values of tobacco products such 
as cigarettes (including cigars) declined dramatically during the same period. The cost of 
domestically produced leaf tobacco in Japan far exceede d the international market price and is 
several times higher than that in China. JT imported a large amount of leaf tobacco from other 
countries, while the import and export volumes of cigarettes decreased during the same period. 
While the imports of raw m aterials increased and the production of tobacco products also increased 
theoretically, please explain the decline in import and export volumes of cigarettes.  
 
WT/TPR/M/397/Add.1  
 
- 273 - 
 
RESPONSE  
As for raw materials of tobacco products, we depend on the import of them to some degree due to 
the decline in the number of tobacco farmers. These raw materials are used for the domestic 
consumption of tobacco products.  
 
As for the export of tobacco products, JT strengthens the export from overseas factories. As for the 
import of tobac co products, the domestic demand for tobacco products is shrinking in Japan. For 
these reasons, the import and the export of tobacco products are declining.  
 
Page 75 ，Para 3.74  
In the same year, it also established the Japan Food Product Overseas Promotion Center, in order 
to promote branding and marketing of Japanese agricultural, forestry, fishery and food products in 
overseas markets.  
 
Question  
22. What measures have been taken to promote the exports of Japanese agricultural exports since 
the establishmen t of the Japan Food Product Overseas Promotion Center? How effective have these 
measures been?  
 
RESPONSE  
The outline of Japan Food Product Overseas Promotion Center (JFOODO)is available at: 
https://www.jet ro.go.jp/en/jfoodo/  
 
As various other factors are relevant, it is not possible to see the effect exclusively from those 
measures.  It may be the useful fact, however, that the total value of exports of Japanese 
agricultural, forestry and fisheries products  and foods reached JPY 912.1 billion in 2019.  
 
Page 132 ，Para 4.23  
According to its most recent notification on imports under tariff quotas (for FY2017/18) to the WTO 
Committee on Agriculture, Japan applies 18 tariff rate quotas (TRQs) covering 101 tariff l ines at the 
HS six -digit level. Fill rates varied considerably from one quota to another, ranging from 23.4% to 
305.6% (Table 4.6). The authorities indicated that low fill rates for some TRQ products were mainly 
to decrease domestic demand.  
 
Question  
23. W e note that the fill rates of TRQs of some varieties were low, e.g. 38.4% for skimmed milk (for 
other purposes), and 25.5% for barley and its processed products. Please explain the reason and 
provide the domestic market prices of products with low fill rat es of TRQs.  
 
RESPONSE  
The reason of low fill rate is due to the decrease of domestic demand as described in the Secretariat 
report. Regarding barley, the fill rate appears low because the import from Australia is excluded 
from the notification, which is su bject to Japan -Australia Economic Partnership Agreement, as is 
mentioned in the footnote of Japan's MA2 notification and several previous COA meetings. The 
domestic market price of the products in question can be found in Japan's state trading notification . 
 
Page 134 ，Para 4.25  
A simultaneous buy and sell (SBS) system for rice and wheat remains in place. Its purpose is to 
meet specific needs, such as imports of small quantities of rice (maximum 100,000 tonnes) and 
wheat. Under this system, an importer and a domestic user make a joint bid to the MAFF, submitting 
the government purchase price from the importer and the government sale price on the domestic 
Japanese market. The MAFF collects the difference in the prices. Since the previous Review, there 
have been  no changes in SBS system. The volume of imports for both products fluctuated 
(Table  4.8). The "ordinary tender system" is used for large -quantity imports.  
 
Question  
24. Why is the SBS limited to wheat and rice trading?  
 
RESPONSE  
These products are imported under the state trading, to which the SBS system is applied, within the 
access commitments as a result of the GATT UR agreement.  
 WT/TPR/M/397/Add.1  
 
- 274 - 
 
25. The purpose of the SBS system is to meet specific needs. In addition to imports of small 
quantities of wheat and rice mentioned in the report, what are the other specific needs?  
 
RESPONSE  
There are "specific needs" for particular purposes or varieties such as Jasmine rice and durum wheat.  
 
26. How are the transaction prices of rice and wheat in the SBS system determi ned? Do they comply 
with the market operation law?  
 
RESPONSE  
Under the SBS bidding system, importers and domestic users jointly bit to imports specific wheat 
and rice at specified prices. Government of Japan (or MAFF) will choose the bid with the largest 
spread in prices of the purchase price and selling price.  This goes until the planned contract amounts 
are filled.  
 
27. Which types of agricultural products are traded through the "ordinary tender system"? Why are 
large-quantity imports traded through the  "ordinary tender system" instead of the SBS system? 
What are the differences between these two systems?  
 
RESPONSE  
While the MAFF conducts large -quantity imports for major varieties based on the domestic demand 
with the ordinary tender system, small -quanti ty imports as well as those for special needs are 
conducted with the SBS system, in which varieties are determined by bidders.  
 
Page 142 ，Para 4.54  
Coinciding with the entry into force of the CPTPP in 2018, Japan increased support for domestic pork 
produce rs by expanding the Hog Growers Business Stabilization Measure (also known as Marukin). 
The Marukin payment system for pork meat covers 90% of the cost gap. Pork producers pay 25% 
of the grant amount from the reserve fund (down from 50% prior to the expans ion of the system).  
 
Question  
28. In order to deal with the impact of the CPTPP on agriculture, has Japan adopted similar measures 
upon other agricultural products (such as beef and rice, etc.)?  
 
RESPONSE  
The similar measure (covers 90% of the cost gap) was adopted to beef under the Beef Livestock 
Stabilization Program before the time of the entry into force of TPP11.  
 
Page 17 ，Para 24  
The air transport regime remains basically unchanged, except for the concession process of airports 
which was acceler ated. Japan signed several air services agreements, liberalizing additional 
frequencies and capacities, during the review period. Regarding maritime transport, the ports 
concession process was also accelerated, and support for the Japanese merchant fleet w as prolonged 
and extended. Japan imposes no restrictions on foreign carriers, except for access to the flag and 
cabotage. The port sector remains open to foreign investment.  
 
Question  
29. In terms of Japan's civil aviation special development fund, please brief on the method and 
standard for collection, and the scope of support.  
 
RESPONSE  
It is unable to answer the question because the term of "Japan's civil aviation special development 
fund" described by China is not clarified.  
 
30. Please brief on Japan' s relevant tax incentives for airlines and airports.  
 
RESPONSE  
Japan has no tax incentives to attract new airline or airport services.  
 
Page 14, Para 4.2  
In June 2018, the Intellectual Property Strategy Headquarters established "The Intellectual Property 
Strategy Vision" as a new and mid -to long -term vision until 2030. In this vision, Japan set out a WT/TPR/M/397/Add.1  
 
- 275 - 
 
"value design society" to be realized in the future, where a variety of values that go beyond economic 
value are subsumed, where various individualities fully demonstrate multifaceted abilities, make 
good use of Japanese characteristics, make new values, and gain empathy of the world. Japan will 
actively and creatively design the concrete systems to achieve the above -mentioned society.  
 
Question  
31. How is the v ision elaborated on?  
 
RESPONSE  
In "The Intellectual Property Strategy Vision", it is described as follows.  
The following shapes of society which embraces a mechanism for intellectual assets will be 
illuminated as the future vision of Japan.  
The first shap e of society is one where people who are edgy or assuming challenges (eccentric 
people) and have diverse abilities are born in Japan and also gather from around the world.  
The second shape of society is one where the time and place for individuals to exerc ise their multiple 
abilities or realize their multiple ideas are dispersed according to their respective needs and such 
abilities and ideas are combined with those of others, thereby enabling exercise of abilities and 
realization of ideas.  
The third shape of society is one which can actively accept foreign supporters and"fans"who feel 
empathy on the characteristics of the society or culture of Japan or any of the elements in its future 
direction.  
For details, refer to the following URL.  
https://www.kantei.go.jp/jp/singi/titeki2/kettei/chizai_vision_e.pdf . 
 
Page 16, Para 3.7  
On 19 June 2019, the Antimonopoly Act (AMA) Amendment Bill was approved in the 198th  ordinary 
session of the Diet, and the enacted act was promulgated on 26 June 2019. The purpose of the 
amended act is to deter "unreasonable restraint of trade", etc. effectively, invigorate the economy, 
and enhance consumer interests by fair and free comp etition, through increasing incentives for 
enterprises to cooperate in the Japan Fair Trade Commission (JFTC)'s investigation and imposing an 
appropriate amount of surcharges according to the nature and extent of the violation. The enacted 
act shall come i nto effect on the date specified in the Cabinet Order within one year and six months 
from 26 June 2019.  
 
Question  
32. Please brief on the application scope of the amendment (government monopoly or private 
monopoly) and the nature of the JFTC.  
 
RESPONSE  
The outlines of the amendment in 19 June 2019, are as follows:  
(1) Amendment of leniency program  
− Introducing a system which allows the JFTC to reduce the amount of surcharges when 
enterprises submit information and documents that contribute to the fact findin g of the case, 
in addition to the reduction according to the order of application,  
− Abolishing the current limit on the number of applicants in the leniency programme  
(2) Revision of the calculation methods  
− Addition of the basis of calculation of surcharges , and extension of the calculation term, etc.  
(3) Revision of Penal Provisions  
− - Raising the limit of the amount of criminal fine for juridical person charged with the offense 
of obstructing investigation  
  WT/TPR/M/397/Add.1  
 
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CANADA FOLLOW -UP QUESTIONS  
1. In Question 5, Canada requested an explanation from Japan regarding how the funds raised 
through the Forest Environment Tax will be allocated. Canada also asked if revenue from this tax 
will be used to support Japan's forest industry to promote the produc tion of domestic forest products. 
Japan replied as follows:  
The Forest Environment Transfer Tax will be allocated to municipalities and prefectures according to 
objective standards (the total area of private planted forests, number of forestry workers, an d 
population). The Forest Environment Transfer Tax does not aim at promoting the production of 
domestic forest products. Instead, the tax aims at maintaining and enhancing the multiple functions 
of forests for the public benefits that result in achieving t he greenhouse gas emissions reduction 
target under the framework of the Paris Agreement and protecting citizens from disasters.  
 
Question1  
Could Japan please provide details regarding allocations to its forestry industry of revenues 
generated by this tax? For instance, what are the "multiple functions of forests" that the tax 
promotes and to what extent are they funded through the revenue tha t it generates?  
RESPONSE  
The Forest Environment Transfer Tax is not allocated to forestry industry directly. It is allocated to 
municipalities and prefectures for the purpose of maintaining and enhancing the multiple functions 
of forests for the public be nefits. The "multiple functions of forest for the public benefits" include the 
contribution by well -managed forests to the greenhouse gas emissions reduction target under the 
framework of the Paris Agreement and to disaster prevention.  
2. In Question 19, C anada asked whether, "Japan [is] considering expanding the scope of its JAS 
graded lumber promotion so that it applies to other lumber suitable for use in construction in Japan? 
If not, please provide reasons for this position." Japan replied as follows: " MAFF has made efforts to 
promote utilization of JAS graded lumber in construction in Japan, non -JAS graded lumber is not 
included in these efforts".  
Question2  
Will Japan consider expanding this program so that it applies to lumber that, like JAS graded lu mber, 
conforms with building laws and regulations and is suitable for use in construction in Japan? If not, 
what is the basis for the exclusion of such lumber from the program?  
RESPONSE  
As Canada mentioned, certain lumber that is not JAS graded can be use d as building materials under 
the Building Standard Laws and related regulations in Japan.  Ministry of Agriculture, Forestry and 
Fisheries (MAFF) Japan is promoting the use of JAS graded lumber in order to disseminate JAS as 
the national fundamental stand ard. JAS system is open to any country.  
  WT/TPR/M/397/Add.1  
 
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UNITED STATES  FOLLOW -UP QUESTIONS  
Questions based on the Secretariat Report  (WT/TPR/S/397)   
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
Tax reform  
Page 23, paragraph 1.12 : The Secretariat report references the "creation of Forest Environment 
Tax (provisional) and Forest Environment Transfer Tax (provisional)."  
1. Please provide details on how the revenue generated from these taxes will be  used.  
2. Will this tax revenue be used to support Japan's forestr y industry and Japan's goal of 
increasing the domestic wood supply from 30 million cubic meters to 40 million cubic meters 
by 2025?  
RESPONSE  
1. The ways of using the revenue are prescribed by the "Act on Forest Environment Tax and Forest 
Environment  Transfer  Tax". Under  this Act, municipalities  shall expense  the Tax for undertaking  and 
promoting  forest  management,  and prefectures  shall expense  it mainly  for supporting  municipalities' 
activities.  
2. The Forest Environment Transfer Tax does not aim at increasing the domestic wood supply. 
Instead, the tax aims at maintaining and enhancing the multiple functions of forests for the public 
benefits  that result  in achieving  the greenhouse  gas emissions  reduction  target  under  the framework 
of the Paris Agreement and protecting citizens from  disasters.  
U.S. Follow -Up to Questions 1 -2 
• Question 1:  Will timber extraction from Japan's forests be among "municipalities' activities" 
supported by the "Act on Forest Environment Tax and Forest Environment  Transfer Tax"?  
RESPONSE  
The Forest Environment Transfer Tax is solely used for the promotion of forest management which 
aims at maintaining and enhancing the multiple functions of forests for the public benefits. It is not 
intended to be used for timber e xtraction for commercial benefits.  
• Question 2:  If so, will the timber and woody biomass extracted under the program me be 
distributed in the market?    
RESPONSE  
See the answer to Q uestion 1. 
• Question 3:  How will Japan monitor and distinguish between non -comm ercial outcomes of the 
program me (e.g., greenhouse gas emission reduction, water storage, biodiversity, prevention of 
soil erosion, etc.) and commercial benefits (e.g., timber sales)?"   
RESPONSE  
Japan will evaluate the outcome of this program from the perspective of maintaining and enhancing 
multiple functions of forests for the public benefits. As answered in Q1, Japan has no intention to 
monitor the  commercial benefits, since such activities are not conducted through the program.  
 
3. TRADE POLICIES AND P RACTICES BY  MEASURE  
3.2 Measures Directly Affecting Exports  
3.2.4 Export support and promotion  
Page 73, paragraph 3.69: According to the Secretariat Report, Japan has no export subsidy 
programmes in place; over the review period, it notified the WTO Commit tee on Agriculture that it 
had not provided export subsidies for the fiscal years 2016 and 2017. In the WTO Committee on 
Agriculture the United States has asked questions regarding Japan's program called "Subsidies for 
the Creation of Production Areas". Sp ecifically, the United States has asked about eligibility criteria 
for receiving payments. Japan responded generally in AGIMS91158 that "The eligibility of products 
and the levels  of payment  to farmers  are determined  by the criteria  which  local agricultural  councils 
decide,  including  those  in the prefectures  cited in the question.  Those  criteria  are established  based 
on their individual  situations,  regardless  of the unit amounts  of funding  allocation  set by the national 
government, and payment is made according to such  criteria."  WT/TPR/M/397/Add.1  
 
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8. Please provide specific criteria used by major rice producing prefectures, such as Niigata, 
Hokkaido, and  Akita.  
RESPONSE  
A variety  of criteria  are set forth under  "Grants  for Production  Areas".  Payments  are made  to farmers 
in accordance with the eligibility of products and the levels of payments which local agricultural 
councils establish on their own initiative in their respective plans with other requirements reflecting 
diverse agricultural situations in th e major rice producing prefectures cited in the  questions.  
U.S. Follow -Up to Question 8  
Through the Grants for Production Areas, prefectural governments and local agricultural councils 
provide support payments to farmers who produce rice for exports, and t his rice is exported under 
the Guidelines for Promotion of Rice Production and Sales in Accordance with Demand.  These 
Guidelines require that Rice for Processing and Rice for New Demand are produced, distributed, and 
used for intended purposes by requirin g producers to submit sales contracts with buyers that indicate 
actual shipment and/or sales volume.  
• Question 4:  Is our understanding correct?  If not, please clarify.  
RESPONSE  
The Grant for Production Areas is a program which aims to support diverse local initiatives for 
agricultural development including the production of crops other than rice. Local agricultural councils 
determine specific criteria of payments to farmers under the program.  
Rice for new demand consists of rice for feed, rice for flour, rice plant for whole crop silage, early 
harvested rice plant for feed, rice plant for straw and rice for new market development, and does 
not distinguish whether it is for domestic or overseas markets.  
The guideline mentioned in the question req uires the submission of a sales contract in order to 
confirm that it is for non -table rice use, such as processing use and new demand.  
9. For what duration is this program authorized and upon expiration, will it be eligible for 
renewal or automatically  termin ated?  
RESPONSE  
MAFF's budget, including the expenditure on the program "Grants for the Production Area," is 
considered in the annual budget compilation process. The draft budget for FY2020 includes the 
allocation to the program and is currently under parli amentary discussions for approval.  
U.S. Follow -Up to Question 9  
• Question 5:  What is the total amount allocated through MAFF's Grants for Production Areas by 
prefectural governments and local agricultural councils to growers of rice for exports?   
• Question 6: Do prefectural governments report the allocation of the Grants to MAFF?  
RESPONSE for Q.5 and Q.6  
As described in the answer to Q.4, rice for new demand consists of rice for feed, rice for flour, rice 
plant for whole crop silage, early harvested rice plant for feed, rice plant for straw and rice for new 
market development and does not distinguish whether it is for domestic or overseas markets.  
Prefectural governments report to the MAFF the total amount of funding allocated to each local 
agricultural co uncil.  
3.3. Measures Directly Affecting Production and Trade  
3.3.2.2 Standards  
Page  83, paragraph  3.109 : According  to the Secretariat  Report,  "For non-compulsory  JASs,  a 30- 
day public comment period is provided  for." 
14. Does Japan  offer an English  translation  of proposed  non-compulsory  JASs during  the public 
comment  period?  
RESPONSE  
For non -compulsory JAS, only the Japanese version is available.  
U.S. Follow -Up to Question 14  
• Question 7: Does Japan provide an English language translation for all compulsory JAS?   WT/TPR/M/397/Add.1  
 
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RESPONSE  
The provisional English translations of the compulsory JASs are available at:  
https://www.maff.go.jp/e/policies/standard/specific/organic_JAS.html#Organic Standards.  
• Question 8:  How does Japan define "compulsory" and "non -compulsory" JASs?   
RESPONSE  
JASs for organic food products are compulsory because the use of "o rganic" labelling requires the 
JAS certification and logo mark. The compulsory JASs have been defined by the Order for 
Enforcement of the Act on Japanese Agricultural Standards (Article 17).  
3.3.2.5 Labelling requirements  
Page  85, paragraph  3.117:  The Secretariat  Report  recognizes  concerns  that Japan's  classification 
of chemical  substances  as pesticides  or food additives  based  on the time of application  "places  more 
burden  on trading  partners  than on Japanese  producers."  Yet, Japan  continues  to classify  post-
harvest fungicides (PHF) as food additives that require labeling. The same chemical applied pre - 
harvest is not required to carry such labeling  
15. Please explain the scientific basis for Japan's designation of PHF as food  additives?  
RESPONSE  
The reason why so -called post -harvest, which is used for the purpose of preventing mold on 
harvested crops, is designated as a food additive is based on the Japanese legal system. The Food 
Sanitation Act stipulates that food additives are "substances which  are used by being added, mixed 
or infiltrated into food or by other methods in the process of producing food or for the purpose of 
processing or preserving food."  
U.S. Follow -Up to Question 15  
• Question 9:  As both pre -harvest and post -harvest fungicides ar e added for the purpose of 
preserving food by killing fungi, what is the scientific basis (not legal basis) for classifying post -
harvest, but not pre -harvest, fungicides as food additives?   
RESPONSE  
Post-harvest fungicides are scientifically the same as p re-harvest fungicides in terms of fungicidal 
effects. In Japan, however, the Acts that apply to fungicides differ depending on whether they are 
used at the pre -harvest or post -harvest stage. As a result, post -harvest fungicides are classified as 
food addit ives. Japan implements a streamlined approval process for fungicides that may be applied 
to both pre -harvest and post -harvest stage by utilizing a unified application and deliberation process 
for pesticides and food additives.  
• Question 10:  What is the scie ntific (not legal) basis for requiring products treated with a post -
harvest fungicide to be labeled at the point of sale with a statement indicating a list of chemicals 
applied?   
RESPONSE  
As mentioned above, it is understood that post -harvest fungicides ar e scientifically the same as pre -
harvest fungicides in terms of fungicidal effects. In Japan, however, food additives specified by the 
Ordinance for Enforcement of the Food Sanitation Act are obliged to be labeled as information for 
facilitating consumers'  choice.  
3.3.3.1 SPS measures  
Page 87, paragraph 3.124: According to the Secretariat Report, Japan has started reviewing the 
portion  of commodities  to which  MRLs apply,  with a view to harmonizing  them with Codex  standards.  
16. Can Japan provide examples of portions of commodities to which MRLs apply that are 
harmonized to Codex  standards?  
RESPONSE  
For example, MRLs  of some agricultural products such as Satsuma mandarin were set only for the 
pulp excluding peels. Japan has begun to establish MRLs for these agricultural products for whole 
commodities, including peels, for each pesticide.  
U.S. Follow -Up to Question 16:  Currently, Japan's harmonization to Codex standards for a portion 
of commodities is limited to some selected commodities, such as Satsuma mandarin in Japan's 
example above.   
• Question 11:  Does Japan plan to expand the list of target commodities? If so, wh en does Japan WT/TPR/M/397/Add.1  
 
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anticipate completing the harmonization?   
RESPONSE  
Japan is intending to expand harmonization to Codex standard for other commodities in the future, 
but does not have any specific timeline at the moment.  
Japan harmonized a portion of some co mmodities such as satsuma mandarin from the MRLs set in 
2019. Now we are examining how much burden may be added to the laboratories by this change.  
• Question 12:  Please provide the expected timeline and proposed list of target commodities.   
RESPONSE  
Japan i s intending to expand harmonization to Codex standard for other commodities in the future, 
but does not have any specific timeline at the moment.  
Japan harmonized a portion of some commodities such as satsuma mandarin from the MRLs set in 
2019. Now we are examining how much burden may be added to the laboratories by this change.  
Page  87, paragraph  3.124:  The Secretariat  Report  notes  that risk assessments  undertaken  by the 
Food Safety Commission of Japan (FSCJ ) are available on its website. However, most risk 
assessments are only available in Japanese. Also, the Secretariat Report notes that since the last 
TPR, Japan  has allowed  beef imports  from Austria  and the United  Kingdom,  and lifted age restrictions 
to beef imported from Canada, Ireland, and the United States. However, the import requirements 
for U.S. beef are still not aligned with the OIE recommendation that the United States is negligible 
risk for  BSE. 
17. Will the FSCJ conduct  another  risk assessment  to consider  the removal  of remaining BSE -
related restrictions on U.S. beef (including those related to specified risk materials).  
JRESPONSE  
MHLW  has already requested risk assessment on review of the range of specific risk materials for 
domestic beef to FSCJ. For imported beef including from the U.S., MHLW will consider it based on 
the result of the risk assessment for domestic beef.  
U.S. Follow -Up to Question 17  
• Question 13:  Has Japan considered completing an import risk assessment simultaneously with 
the domestic risk assessment?  
RESPONSE  
Yes. Japan has considered proceeding the risk assessments for imported and domestic beef together 
as much as  possible by conducting consultations for risk assessments of those two categories of beef 
for example.  
 
• Question 14:  Alternatively, will the domestic decision immediately apply to imports without the 
need for a separate assessment?  
RESPONSE  
Regarding con trol measures for BSE, the MHLW requests risk assessment to FSCJ, taking into 
account the status of risk management in Japan for domestic beef, and the status of risk 
management in exporting countries for imported beef. Then the MHLW reviews the domestic c ontrol 
measures and import requirements based on the results of the assessments by FSCJ.  
• Question 15:  Regardless of the FSCJ's domestic risk assessment conclusion, will the FSCJ risk 
assessment of imports be conducted consistent with the relevant OIE risk classification for BSE 
in the country of question?  
RESPONSE  
When the FSC conducts the risk assessment of imports, it will consider the relevant OIE risk 
classification on BSE for the risk assessment of the country concerned.  
3.3.3.2.2 The Food Sanitation Act 
Page 88, Paragraph 3.128: Japan notes that amendments were made to the Food Sanitation Act 
(the Act) during the review period, and that new provisions directly related to imports and exports 
include:  
(i) tightened  sanitary  regulations  for utensils,  containers  and packaging  for food and food additives.  
18. Will Japan provide a transition period for these tightened sanitary  regulations?  WT/TPR/M/397/Add.1  
 
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RESPONSE  
During the period, apparatus, containers and packaging made of synthetic resins which are 
considered  to be the same  as those  marketed  in Japan  at the point of the effective  date, are allowed 
to be sold, produced or imported even if the substances used in those apparatus, containers and 
packaging are not listed in the Positive  List. 
U.S. Follow -Up to Question 18  
Question 16:  Can substances be added to the Positive List during the 5 -year transition period?  
RESPONSE  
The Positive List (PL) for food utensils, containers, and packaging (UCP) is specified as Appended 
Table 1 of the Specificatio ns and Standards for Foods, Food Additives, Etc. pursuant to Article 18 of 
the Food Sanitation Act. Public Notice of the MHLW No. 196 (April 28, 2020) specifies transitional 
measures for the PL System. The measures allow, during five years from the enforce ment date (until 
the end of May 2025), the substances being used as raw material of UCP ,which are regarded as 
being listed in Appended Table 1 before the enforcement date in Japan (substances subject to the 
transitional measures).  
For substances subject t o the transitional measures, to add a substance to Appended Table 1 or 
revise existing specifications for a substance in the same Table, please make a request and provide 
required information in writing to the Food Safety Standards and Evaluation Division,  Pharmaceutical 
Safety and Environmental Health Bureau, MHLW. The MHLW will not accept the information if it fails 
to demonstrate that the substance has been used since before the enforcement date.  
Please refer to the URL below for the details of the provi sion of the information. An English translation 
will be posted later.  
The procedures to revise the Positive List (Appended Table 1)  
https://www.mhlw.go.jp/stf/newpage_11487.html  
In case that Appended Table 1 were revised and substances subject to the transitional measures 
were not contained in revised Appended Table 1 after five years, UCP would not be allowed to be 
manufactured using such substances or UCP made of synthetic resins containing such substances 
would not be allowed to be imported into Japan.  
Page 88, paragraph 3.129: The Secretariat Report notes that when violations of MRL standards 
are found in imported foods, Japan clari fies the increased surveillance measures for the targeted 
food and the requirements for lifting them. In doing so, it takes into consideration the test results 
and the status  of control  for pesticide  residues  in the exporting  country;  measures  are based  on the 
relevant Codex guidelines and try to minimize the burden on the exporting  country.  
20. Can Japan explain how any increased inspection and testing measures are risk - based?  
RESPONSE  
As for the reinforcement  of inspections  of residual  agricultural  chemicals,  in order  to grasp  the level 
of the use of agricultural chemicals, etc. by the exporting country, the MHLW  will carry out 
monitoring inspections on a higher proportion for the imported food and inspection item of concern 
so that violations of the Food Sanitation Act may be detected with a certain level of reliability from 
statistical viewpoint. The enhanced mo nitoring inspection will be lifted when the MHLW determines 
that there is no longer a fear that the food violating the Act will be exported into  Japan.  
Also, in principle, when more than one violations have been detected with regard to residual 
agricultura l chemicals as a result of the monitoring inspection of the imported food 
manufactured/processed  by the same  manufacturer/processor  from the same  exporting  country,  all 
or part of the imported  food in question  will be subjected  to an inspection  order,  taking  into account 
the regulations and sanitary controls being implemented in the exporting country, the historical 
compliance record and other factors. The inspection order will be lifted when the MHLW determines 
that there is no longer a fear that the f ood violating the Act will be exported into  Japan.  
U.S. Follow -Up to Question 20  
• Question 17:  Would Japan explain how the following measures are risk -based: 1) increasing 
inspection rate to 30% for all imports of a product from a country when there is one violation of 
an MRL, and 2) applying 100 percent hold and test on all imports of a product from a country 
when there are two violations of an MRL by two different exporters?     WT/TPR/M/397/Add.1  
 
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RESPONSE  
As for the reinforcement of inspections of residual agricultural chem icals, the MHLW is carrying out 
more monitoring inspections in order to grasp the level of the use of and the control over agricultural 
chemicals by the exporting country.  
When the MHLW deems it necessary in order to prevent any food sanitation hazards tha t may arise 
out of an imported food with a high risk of violation of the Food Sanitation Act, the MHLW will order 
importers to have the imported food inspected.  
• Question 18:  How does Japan take into account the historical compliance record of the exporting  
country?   
RESPONSE  
The MHLW  considers that a compliance record of the exporting country is one of the measures to 
verify the control system for residual agricultural chemicals in the exporting country.  
3.3.7  Intellectual property rights  (IPRs)  
3.3.7.9 Geographical indications  
Page 119, pa ragraph 3.234: According to the Secretariat Report, the 2018 amendments to the 
"2014 Act on Protection of the Names of Specific Agricultural, Forestry and Fishery Products and 
Foodstuffs"  were enacted  in response  to the EU-Japan  EPA and provide  for a transition  period,  during 
which prior good faith use of an identical or similar GI may be continued for up to seven years 
following the registration or designation of a GI. The Secretariat Report also notes that the 
amendments provide for the co -existence of trademarks registered in good faith and later in time 
GIs. 
42. What will happen to those goods which have been using a name in good faith that is identical 
or similar to a later GI? Will these products have to be renamed/relabeled or will they be 
pulled fro m the market? Please provide clarification on the policy reason for denying the 
continued use of a name that has been used in good faith and will now be phased out after 
seven  years.  
RESPONSE  
A name  which  is identical  or similar  to registered  GI should  be removed  or erased  seven  years  after 
the registration or designation of that GI even if that name has been used in good faith. This 
restriction is necessary to maintain high -level GI protection, through prevention of free -ride on GI 
including prio r uses.  
U.S. Follow -Up to Question 42: Japan has responded to Question 42 noting that a term that is 
identical or similar to a registered GI should be removed or erased seven years after the GI 
registration, even where the prior term was used in good faith . Japan has further noted in its 
response to Question 43 that when analyzing whether a term seeking protection as GI could be 
generic, or components of it could be generic, that Japan will consider "whether consumers recognize 
the applied names are used as  generic term or not, taking into account the information in Japanese 
dictionaries, newspapers and websites, etc."  
• Question 19:  Can Japan clarify the policy reasons for removing a term identical or similar to a 
registered GI from use in the marketplace, ev en when the term has been used in good faith?  If 
used in good faith previously, how can a term "free -ride" on the GI, as Japan has alleged?   
RESPONSE  
It is important to ensure the validity of GIs thorough the high -level GI protection in order for 
consume r protection. To avoid consumer confusion, Japanese GI act does not allow the use of a 
term identical or similar to the registered GI to any products which do not meet the requirements in 
the specifications after seven years from GI registration. The trans itional period of seven years is 
provided for preparing the change of the name so as to protect prior users in good faith at maximum 
level.  
• Question 20:  Can Japan provide an explanation as to why prior use, when in good faith, is not 
sufficient to deny a t erm protection as a GI?   
RESPONSE  
It is important to stipulate the rule of the prior use of a term identical or similar to the GI for the 
high-level GI protection. The use of identical or similar name to GI on products which do not meet 
the requirements in the specifications causes consumer confusion, and therefore prior use is 
restricted.  WT/TPR/M/397/Add.1  
 
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43. Will Japan consider evidence that a particular term is considered generic by the consumer 
as part of its analysis in determining whether to protect a termお9 as a GI? If so, how does 
this analysis reconcile with the phasing out after seven  years?  
RESPONSE  
In examining  GI registration  and designation,  we consider  whether  consumers  recognize  the applied 
names  are used as generic  term or not, taking  into account  the information  in Japanese  dictionaries, 
newspapers and websites,  etc. 
U.S. Follow -Up to Question 43  
• Question 21:  Can Japan confirm that it will deny a term protection  as a GI where there is 
evidence that the Japanese public perceives the nam e to be a common name, as recognized in 
Japan?   
RESPONSE  
Correct. The determination whether a term is a common name or not is based on how the term is 
publicly recognized in Japan. This is in accordance with Article 24.6 of TRIPS, which stipulates that 
"Nothing in this Section shall require a Member to apply its provision in respect of a geographical 
indication of any other Member with respect to goods or services for which the relevant indication is 
identical with the term customary in common language as the common name for such goods or 
services in the territory of that Member."  
• Question 22:  Besides the evidence it has indicated such as "Japanese dictionaries, newspapers, 
websites, etc.", what other types of evidence of the term being used as a common name will 
Japan consider?  For example, will Japan consider whether the term is used in rele vant 
international standards to refer to a type or class of goods, or whether the term is used in 
relevant international standards to refer to a production method?   
RESPONSE  
In case that an international standard is applied in Japan, and consequently the name defined in the 
standard is widely used in Japan, Japan takes such facts into account. The determination whether a 
term is a common name or not is based on how the term is publicly recognized in Japan thorough a 
comprehensive consideration on any relev ant facts including the above.  
• Question 23:  Will Japan consider other relevant information of genericness from outside its 
territory?   
RESPONSE  
As mentioned in Q uestion 21 and Q uestion 22, Japan considers public recognitions in the country.  
 
4. TRADE POLICIES BY  SECTOR  
4.1.1 Agriculture, Forestry, and Fisheries  
Page 125, paragraph 4.1: The Secretariat Report's section on "Agriculture, Forestry, and 
Fisheries" does not include a "Forestry" section.  
49. The Plywood, Lumber, and Glulam International Competiti veness Enhancement Measure was 
established in the 2018 supplemental budget. Please provide information  on how the 
allocated  budget  was spent  and how it affected  Japan's  wood production?  
RESPONSE  
The budget for this measure was spent for some programs as below:  
- provide  guidance  and support  for local communities  to coordinate  and integrate  forest  
management areas/groups  
- provide  guidance  and support  for wood  processing  mills to improve  productivities  and to shift 
their products to more value -added  ones 
- conduct the surveys on Japanese wood -related business entities behaviors  under the Clean 
Wood Act, Act on Promotion of Use and Distribution of Legally -Harvested Wood and Wood  
Products.  
With regard to the second question, it is difficult to evaluate how the measure has affected to Japan's 
wood production so far.  WT/TPR/M/397/Add.1  
 
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U.S. Follow -Up Question  
• Question 24:  Within the 2018 and 2019 Plywood, Lumber, Glulam International 
Competitiveness Enhancement Measure, what proportion of the allocated budget do the three 
program mes above represent?  
RESPONSE  
The budget which is allocated for "the surveys on Japanese wood -related business entities behaviors 
under the Clean Wood Act" is approximately 60 million yen per year.  
The budget allocation of other two programs is not available, because prefectures have the authority 
to decide the allocation of specific amounts to each  program within the fund provided from the 
Government.  
• Question 25:  Japan's Forestry Agency has stated that the goal of this measure is to increase 
the domestic wood supply from 30 million cubic meters to 40 million cubic meters by 2025.   In 
light of this  goal and the constituent program to support improved productivity (per Japan's 
response  above), how will Japan evaluate the impact of the "Plywood, Lumber, and Glulam 
International Competitiveness Enhancement Measure" on Japan's wood production?  
RESPONSE  
Since this goal is set to be achieved by 2025, the evaluation on the impact of this measure on Japan's 
wood production is difficult at the moment.  
4.1.1.3 Institutional and legal framework  
1.1.  Page  129, paragraph  4.12:  The Secretariat's  Report  states  that MAFF  is responsible  for 
agricultural policy, including agricultural insurance. Japanese vegetable farmers can access multiple 
crop insurance programs, such as the Income Insurance Program, the Agricultural Mutual Aid, and 
Vegetable Price Stabilization  Program. 
51. How much overlap is there among beneficiaries of these  programs?  
RESPONSE   
There is no overlap when a producer selects the Income Insurance Program as explained in the 
response  to Q.50. There is no information available on the overlap between the Agricultural Mutual 
Aid and Vegetable Price Stabilization Program.  
U.S. Follow -Up to  Question 51  
• Question 26:  In light of Japan's lack of information about the potential recipient overlap 
between the Agricultural Mutual Aid and Vegetable Price Stabilization Program, will such 
information be collected?   
RESPONSE  
The Agricultural Mutual Ai d basically does not cover vegetables. As is mentioned in the answer to 
US's initial question No.50, these programs differ in objectives and compensation coverage and there 
is no plan for collection of the information to compare beneficiaries for each prog rammes. The 
effectiveness of the programs will be confirmed when their objectives are achieved.  
• Question 27:  How will Japan evaluate the effectiveness of these programs?   
RESPONSE  
The Agricultural Mutual Aid basically does not cover vegetables. As is mentioned in the answer to 
US's initial question No.50, these programs differ in objectives and compensation coverage and there 
is no plan for collection of the information to compare beneficiaries for each program mes. The 
effectiveness of the programs wil l be confirmed when their objectives are achieved.  
4.1.2.4  International agreements  
Page 147, paragraph 4.82: Japan announced its withdrawal from IWC.  
75. How many whales does Japan intend to harvest each year? What species and from where?  
RESPONSE  
Catch quotas are set within the catch limits calculated in line with the scientific method developed 
and adopted by IWC.  
Catch quotas of each species for the commercial whaling are as follows:  WT/TPR/M/397/Add.1  
 
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- Year 2020 initial quota (from 1 January to 31 December) are 1 20 for Minke whale, 150 for Bryde's 
whale and 25 for Sei whale. The whaling operations are conducted within Japan's territorial sea and 
its exclusive economic zone.  
U.S. Follow -Up to Question 75  
• Question 28:  Is the Government of Japan providing subsidies s upport to whaling operations 
that are conducted within Japan's territorial sea and its exclusive economic zone? If so, please 
describe how the support is allocated and implemented.   
RESPONSE  
In consideration of 30 -year absence from commercial whaling in Ja pan, during which only special 
permit whaling for scientific research were conducted, the Government of Japan currently allocates 
its expenditures to whaling companies, which conduct trial operations including searching whaling 
grounds, and for the improve ment of hunting and processing skills of large whales.  
4.1.2.5  Border and domestic support measures  
Page 148, paragraph 4.86; table 4.15: According to the Secretariat's report" Japan notified 
programs which, in its view, may not constitute subsidies under Article 1 of the SCM Agreement or 
may not be "specific" under Article 2 of the same Agreement."  
80. Are there subsidies tied to, or contingent  upon distant water fishing? Overall, how much of 
the subsidies go to building fleet capacity in the Japanese fishing  fleet?  
RESPONSE  
The answer to the former question depends on the legal interpretation of "tied to, or contingent 
upon".  With regard  to the latter  question,  Japan  has government  support  programs  related  to fishing 
vessels,  but they are planned  and implemented  as a package  of comprehensive  measures  of fisheries 
policy. Because the total amount of "subsidies go to building fleet capacity" depends on how such 
term is precisely defined and calculated accordingly, we cannot provide the definitive  answer.  
U.S. Follow -Up to Question 80: We regret any confusion provoked by this question. We hope the 
following more specific questions can  help Japan produce the salient information.  
• Question 29:  Please describe how Japan's fisheries subsidies for fishing in Korean and Russian 
EEZ's currently are allocated and implemented.   
RESPONSE  
Regarding Japan's fishing access to Korean EEZ, while we ha ve bilateral mutual fisheries access 
agreement with Korea, as shown para. 4.78 of Secretariat Report (WT/TPR/S/397), currently there 
is no fishing operations by Japanese fishing vessels in Korean EEZ. This is because the parties did 
not reach an agreement on operational conditions for mutual access to each party's EEZ.  
In this regard, while it is possible that in near future the Japanese fishing vessels with some support 
by the Government of Japan may enter into Korean EEZ for fishing if mutual access is r esumed, 
there is no subsidy on the condition recipients to operate fishing in Korean EEZ.  
Regarding Japan's fishing access to Russian EEZ, for example, since the Russian government banned 
drift net fishing in Russian EEZ in 2016, the Government of Japan ha s supported research and trial 
for alternative fishing gears to drift net in order to mitigate the impacts by that decision on Japanese 
fishing vessels concerned.  
• Question 30:  Please describe the extent to which Japan's fisheries subsidies support building , 
improving, or repairing vessels.   
RESPONSE  
As shown fisheries subsidies notification submitted by Japan for 2017 (G/SCM/N/343/JPN), as a part 
of comprehensive measures for Japan's fisheries policies, the Government of Japan extended a 
variety of supports to its fishermen, which includes turnover loans to fishermen in distress and 
promotion of structural reform of fisheries sectors. Regarding the extent of support for vessels 
among a variety of support items, the exact figure is not available becau se such expenses have not 
been extracted and aggregated item by item.  
 WT/TPR/M/397/Add.1  
 
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4.4 Services  
4.4.6 Distribution services with a specific focus on e –commerce Page 187, paragraph 
4.271:  
84. Does Japan consider the 7 -Eleven company to be "foreign  owned"?  
RESPONSE  
Japan does not consider 7 -Eleven, Inc. as foreign -owned. Seven & i Holdings Co., Ltd. owns 100% 
of equity of 7 -Eleven, Inc. Please see page 3 of financial statements of Seven & i Holdings Co., Ltd. 
https://www.7andi.com/en/ir/file/library/co/pdf/2019_01.pdf . 
U.S. Follow -Up to Question 84:  We thank Japan for the clarifying response.  
 
85. How does Japan consider parent companies in determining whether companies are foreign 
or domestically  owned?  
RESPONSE  
Since this question is too vague for Japan to provide an answer, Japan requests to make it more 
specific. What kinds of regulations and what regulatory processes does it discuss in relation to the 
ownership of a company?  
U.S. F ollow -Up to Question 85: The question was asked in the event that Japan affirmed the 
Secretariat report's statement that 7 -Eleven, Inc was foreign owned.  However, given Japan's 
clarifying response, no follow -up is required . 
Additional Question based on th e Secretariat Report (WT/TPR/S/397)   
1.2.4.2 Privatization  
Page 23, paragraph 1.14: Section 1.2.4.2 notes the reduction of government shareholding in 
Japan Post Holdings during the review period.    
1. When does Japan expect to conduct the third sale of shares  for Japan Post Holdings?  
RESPONSE  
As for the timelines for the selling of the shares of Japan Post Holdings (JPH), please refer to 
Paragraph 4.161 in the Trade Policy Review Report by the Secretariat.  
 
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