WORLD TRADE  
ORGANIZATION  WT/REG235/1  
18 April 2011 
 (11-1978) 
Committee on Regional Trade Agreements  
 
 
 
 
  
 
 
 
FACTUAL PRESENTATION 
 
Economic Partnership Agreement  
between Japan and Thailand 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considerati on of the Economic Partnership Agreement 
between Japan and Thailand has been draw n up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties.  The report has been drawn 
up in accordance with the rules and pro cedures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 
Any technical questions arising from this report may be addressed to Ms. Juneyoung Lee (tel: +41 22 739 6791). 
  WT/REG235/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
I.  TRADE ENVIRONMENT 1  
A.  MERCHANDISE TRADE  1  
B.  TRADE IN SERVICES AND INVESTMENT  5  
II.  BACKGROUND INFORMATION 9  
III.  TRADE IN GOODS 10  
A.  IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  10  
1.  General provisions 10  
2.  Liberalization of trade and tariff lines 11  
3.  Japan's liberalization schedule 12  
4.  Thailand's liberalization schedule 16  
5.  Tariff-rate quotas 20  
(a)  Japan 20  
(b)  Thailand 20  
B.  RULES OF ORIGIN  21  
C.  EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  22  
D.  REGULATORY PROVISIONS ON TRADE IN GOODS  22  
1.  Standards 22  
(a)  Sanitary and phytosanitary measures 22  
(b)  Technical barriers to trade 22  
2.  Safeguard mechanisms 22  
(a)  Global safeguards 22  
(b)  Bilateral safeguards 23  
(c)  Special safeguards 24  
(d)  Balance of payments safeguards 24  
3.  Anti-dumping and coun tervailing measures 24  
4.  Subsidies 24  
5.  Customs valuation 25  
6.  Other regulations 25  
IV.  TRADE IN SERVICES AND INVESTMENT 25  
A.  SCOPE AND DEFINITIONS  25  
B.  DENIAL OF BENEFITS  27  
C.  GENERAL PROVISIONS ON TRADE IN SERVICES  27  
1.  Market access 27  
2.  National treatment 27  
3.  MFN treatment 28  
4.  Commercial presence 28  WT/REG235/1 
Page iv 
 
 
  5.  Movement of natural persons 28  
(a)  Short-term business visitors 30  
(b)  Intra-corporate transferees 30  
(c)  Investors 30  
(d)  Other 30  
D.  LIBERALIZATION COMMITMENTS ON TRADE IN SERVICES  33  
1.  Japan 33  
(a)  Horizontal co mmitments 33  
(b)  Sector specific commitments 33  
2.  Thailand 36  
(a)  Horizontal co mmitments 36  
(b)  Sector specific commitments 36  
E.  REGULATORY PROVISIONS ON TRADE IN SERVICES  39  
1.  Domestic regulation 39  
2.  Recognition 39  
3.  Monopolies and exclusive service suppliers 39  
4.  Safeguard measures 39  
5.  Further negotiations on trade in services 39  
F.  REGULATORY PROVISIONS ON INVESTMENT  40  
1.  Performance requirements 40  
2.  Dispute settlement on investment 40  
V.  GENERAL PROVISIONS OF THE AGREEMENT 40  
A.  TRANSPARENCY  40  
B.  EXCEPTIONS  40  
C.  ACCESSION AND TERMINATION  41  
D.  INSTITUTIONAL FRAMEWORK  41  
E.  DISPUTE SETTLEMENT  41  
F.  RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  43  
G.  INTELLECTUAL PROPERTY RIGHTS  44  
H.  GOVERNMENT PROCUREMENT  45  
I.  COMPETITION POLICY  46  
J.  ENVIRONMENT  46  
ANNEX I  47  
ANNEX II  51   WT/REG235/1 
 Page 1 
 
 
   
Key Facts 
 
Parties to the Agreement: 
 
Japan and Thailand 
 
Date of Signature:  3 April 2007 
 
Date of Entry into Force: 1 November 2007 
 
Date of Notification:  25 October 2007 
 
 I. TRADE ENVIRONMENT 
1. The Economic Partnership Agre ement (EPA) between Japan and Thailand (hereinafter 
referred to as "the Agreement") is Japan's thir d RTA with an Asian country following RTAs with 
Singapore and Malaysia, and Thaila nd's first bilateral RTA including trade in services with an Asian 
country. 
2. The economies of the Parties are different in si ze and trade profiles.  In 2009 Japan's GDP 
was estimated at US$5,068 billion while that of Thailand was US$263.7 billion.  With total 
merchandise exports of US$580.7 billion and imports  of US$551.9 billion, Japan was the world's the 
fourth largest exporter and the fifth largest importer in 2009 compared to Thailand ranking at 
25
th exporter and 26th importer (its merchandise exports  were US$152.4 billion and imports 
US$133.6 billion).  In commercial services also, while Japan ranked sixth and fifth in terms of exports 
and imports, (US$125.9 billion and US$146.9 bi llion respectively), Thailand ranked 28th and 24th 
exporter and importer (exports at US$29.6 billion and imports at US$37.5 billion).  In terms of 
integration with the world economy, Thailand's trade to GDP ratio averaged over 2007-2009 was 
considerably higher at 139.4 compared to 32.2 for Japan. 1 
A. MERCHANDISE TRADE  
3. The Parties are closely integrated with each ot her in terms of merchandise trade.  In 2010 
Japan was Thailand's third largest export market (10. 5% of Thailand's exports) and its largest source 
of imports (20.8% of its imports).  Thailand was Japan's 12th largest import source (3% of Japan's 
imports) and 7th export (4.4% of Japan's exports) destination.2 
4. Recent developments in global and intra-Party trade are presented in Charts I.1 and I.2.  Over 
the period surveyed (2000-2010), Japan ran a consiste nt trade surplus on a global basis.  Its trade 
surplus with Thailand has shown a tendency to wide n, especially as Japan's exports to Thailand have 
grown more rapidly than imports since 2001. 
 
                                                      
1 WTO Statistics Database, Trade Profiles (March 2011). 
2 UNSD, Comtrade database. WT/REG235/1 
Page 2 
 
 
  
 
  WT/REG235/1 
 Page 3 
 
 
  
 
 
5. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in the period 2004-2006, is shown in Ch art I.3 on the basis of Harmonized System (HS) 
section. 
6. The composition of exports both global and bilatera l is similar for the two Parties.  Machinery 
makes up the largest export category for both, accoun ting for 40.6% of exports for Japan and 36.6% 
for Thailand.  Machinery is also the largest bilateral import category, accounting for 39.8% of Japan's 
total imports from Thailand and 46. 1% of Thailand's imports from Japan .  Japan's four largest export 
product categories – machinery, vehicles, base meta ls and chemicals – made up 79% of its total 
exports in 2004-2006 and accounted for 83.7% of Thailand's imports from Japan.  Thailand's four 
largest export product categories – machinery, plastics, vehicles and prepared foods – made up 62.5% of its total exports in 2004-2006 and accounted for 62 .7% of Japan's imports from Thailand;  a key 
difference is vehicle exports which is Thailand's th ird largest export product to the world but forms 
only 2.6% of imports by Japan from Thailand. WT/REG235/1 
Page 4 
 
 
  Chart I.3
Japan and Thailand: product composit ion of merchandise trade, annual 
average (2004-2006)
Japan's imports from Thailand Thailand's imports from Japan
 Source:  UNSD, Comtrade database.Per cent
Total:  US$15.6 billion Total:  US$24.8 billion
Total:  US$516.7 billion Total: US$113.7 billion
Total:  US$ 602.5 billion Total:  US$112.3 billionJapan's global exports Thailand's global exportsJapan's global imports Thailand's global imports Chemicals 3.6
Machinery
34.5
Animals 4.0
Textiles 6.0Chemicals 7.0Optical 3.8
Precious stones 2.8
Machinery
40.6Other 
10.4Other 
9.9
Base metals 7.6Stone, plaster, Cement 2.0
Minerals 17.9Base metals 5.1
Plastics 4.3
Base metals 4.6 Textiles 2.8
Vehicles 23.8Prepared foods 6.5Other
10.1Other 
5.7
Optical 2.0Other 
8.9Machinery 39.8
Vehicles  10.4
Minerals 4.9Minerals 28.7
Machinery 22.1Vehicles  2.6
Chemicals  6.4Prepared foods 10.5
Vegetables 3.0Plastics 2.3
Textiles 5.4Optical 2.3Miscellaneous 3.7
Other 
7.0
Vehicles  4.6
Machinery 36.6
Chemicals 3.6Chemicals  8.2
Vegetables 3.6Minerals 2.4
Animals 3.6
Base metals 5.3
Plastics 9.8
Optical 4.4Articles of wood 2.3
Base metals 13.3Plastics 4.5Precious stones 3.2
Plastics 11.1Optical 6.2Vehicles  2.6Prepared foods 3.5Machinery 46.1
Base metals 20.4Plastics 7.1Chemicals 6.8Optical 3.5
Textiles 2.5
Vehicles  8.3
 
  WT/REG235/1 
 Page 5 
 
 
  B. TRADE IN SERVICES AND INVESTMENT3 
7. Bilateral trade in services between the Parties is considerably lower than in goods.  With 
respect to commercial services, in 2009 Thailand w as Japan's ninth largest export market and tenth 
largest source of imports (respectively 2.04% a nd 1.96% of Japan' tota l exports and imports).4  Chart 
I.4 shows the breakdown of commercial services trade fo r Japan in 2000-2009.  In contrast to its trade 
balance in goods, Japan has run a deficit in its gl obal trade in commercial services.  While exports 
have risen steadily and especially since 2002 (except in 2009), imports stagnated up to 2003 since 
when they have shown stronger growth.  The main  contributors to exports of services during this 
period were transportation and othe r business services and more recently royalties and licenses, while 
the main contributors to imports of services were transportation, other business services, and travel 
services.  These sectors accounted for almost 76.1% of services exports and 72.1% of imports in 
2009. 
 
                                                      
3 The exchange rate used for converting data in Japanese Yen to US dollars in this section was: 107.77 
Yen per US dollar (2000), 121.53 (2001), 125.39 (2002), 115.93 (2003), 108.19 (2004), 110.22 (2005), 116.30 
(2006), 117.75 (2007), 103.36 (2008), and 93.57 (2009). 
4 Bank of Japan, http://www.stat-search.boj.or.jp/index_en.html. WT/REG235/1 
Page 6 
 
 
  8. Chart I.5 shows the breakdown of commercial services trade for Thailand in 2000-2009 
which is subject to a trade deficit.  Exports rose mo re slowly than imports during this period, resulting 
in a widening of the deficit (except in 2009).  Tr avel services account for the bulk of its exports with 
significant shares for transportation and other busin ess services.  Imports of commercial services have 
been mainly driven by transportati on, other business and travel services. 
 
 
9. Chart I.6 shows the breakdown of Japan's co mmercial services trade with Thailand in 
2004-2009, with which in contrast to its global pos ition in services trade, it has run a growing surplus 
since 2005 (except in 2009).  Royalties and license fees, transportation services, and construction 
services are the largest categories in terms of expor ts of commercial services, while travel services, 
transportation services, and construction services are the largest in terms of imports. 
  WT/REG235/1 
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  0123456
Export Import Export Import Export Import Export Import Export Import Export Import
2004 2005 2006 2007 2008 2009
Note: Negative export figures in 2009 for insurance (US$ 4.3 million) and other business services (US$ 325 million).
Source: WTO Secretariat estimates based on data provided by Japan, Bank of Japan and OECD.Chart I.6
Japan, bilateral commercial services trade with Thailand, 2004-2009
US$ billion
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance services
 
 
 
10. Japan's global investment position is depicted in  Chart 1.7.  With outward investment of 
almost US$730 billion in 2009, Japan remains an importa nt net provider of investment to the world.  
In comparison its stock of inward FDI was ar ound four times less than outward FDI stock at 
US$196.9 billion in 2009.   WT/REG235/1 
Page 8 
 
 
  
 
 
 
11. Chart I.8 shows Japan's inward and outward stock of FDI with Thailand over the period 
2000-2009.  In keeping with its global FDI position, Japan is a significant investor in Thailand.  Its FDI stock in Thailand was US$22.3 billion accounting fo r 3.1% of its total outward FDI in 2009.  In 
contrast, inward investment from Thailand is rela tively low and has remained constant since 2003 
registering at US$77.7 million in 2009.  WT/REG235/1 
 Page 9 
 
 
  
 
 
 
II. BACKGROUND INFORMATION 
12. The Agreement was signed by Japan and Thailand on 3 April 2007 and entered into force on 
1 November 2007. 
13. The goods and services aspects of the Agreement were notified to the WTO by the Parties on 
25 October 2007 under Article XXIV of the GATT 1994  and the Understanding on the Interpretation 
of Article XXIV of GATT 1994, and Article V of the GATS, respectively (WT/REG235/N/1 and 
S/C/N/419).  The text of the Agreement is availa ble, together with its related Annexes, on the 
following official websites: 
 Japan: 
 http://www.mofa.go.jp/policy/ economy/fta/thailand.html   
  Thailand: 
 http://www.mfa.go.th/jtepa/asset/jt epa_basic_agreement_eng.pdf
 
 WT/REG235/1 
Page 10 
 
 
  14. The Agreement is composed of 15 Chapte rs and has related Annexes, as follows: 
Box II.1:  Composition of the Agreement 
Preamble 
Chapter 1:  General Provisions 
Chapter 2:  Trade in Goods 
Chapter 3:  Rules of Origin 
Chapter 4:  Customs Procedures   
Chapter 5:  Paperless Trading 
Chapter 6:  Mutual Recognition 
Chapter 7:  Trade in Services 
Chapter 8:  Investment 
Chapter 9:  Movement of Natural Persons 
Chapter 10:  Intellectual Property 
Chapter 11:  Government Procurement 
Chapter 12:  Competition 
Chapter 13:  Cooperation 
Chapter 14:  Dispute Settlement 
Chapter 15:  Final Provisions 
Annexes 
   Annex 1 referred to in Chapter 2 – Schedules in relation to Article 18  
   Annex 2 referred to in Chapter 3 – Product Specific Rules  
   Annex 3 referred to in Chapter 3 – Minimum Data Requirement for Certificate of Origin 
   Annex 4 referred to in Chapter 6 – Electrical Products 
   Annex 5 referred to in Chapter 7 – Schedules of Specific Commitments in relation to Article 77 
   Annex 6 referred to in Chapter 8 – Schedules in relation to Investment 
   Annex 7 referred to in Chapter 9 – Specific Commitments for the Movement of Natural Persons  
 
Source : Economic Partnership Agreemen t between Japan and Thailand. 
 
15. No overall implementation period is explicitly stated  in the Agreement.  However, the Parties' 
schedules of concessions on trade in goods foresee an implementation period of 15 years for Japan and ten years for Thailand from the date of entry into force of the Agreement. 
III. TRADE IN GOODS 
A. I
MPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
16. Each party accords national treatment to the goods of the other Party in accordance with 
Article III of the GATT 1994 (Article 17). 
17. The Parties agree to eliminate or reduce import duties on originating goods as scheduled in 
Annex 1 of the Agreement and upon request by eith er Party, can negotiate improving market access 
conditions on goods designated for negotiation in th e schedules (Article 18).  Annex 1 contains the 
following categories relating to tariff liberalization be tween the Parties: i) immediate elimination of 
customs duties from the date of entry into force of the Agreement (category A);  ii) progressive 
elimination of customs duties (category B);  iii) prog ressive reduction, stand-still, or combination of 
progressive reduction and stand-still, where applicab le, in accordance with notes or rate of customs 
duty specific to the Parties' schedules (category P);  iv) tariff-rate quotas (category Q);  and v) future negotiations (category R).  Products in categor y X are excluded from any tariff concessions.  The 
Parties shall review the schedules in Annex 1, in cluding the excluded goods from any elimination or  WT/REG235/1 
 Page 11 
 
 
  reduction scheme in the tenth year after the entry in to force of the Agreement (2016), or earlier if the 
Parties agree (Article 26). 
18. Tariff reductions begin on the date of entry in to force of the Agreement and subsequent 
annual reductions take place on 1 April of each  year (Paragraph 5, Part 1, Annex 1). 
2. Liberalization of trade and tariff lines 
19. Trade in goods under the Agreement is classified under the 2002 nomenclature of the 
Harmonized System (HS) (Paragraph 4, Part 1, Annex 1). 
20. The overall tariff elimination under the Agreem ent is depicted in Tables III.1.A-B.  
Table III.1.A shows duty elimination in terms of tari ff lines and trade, as applied by Japan to imports 
from Thailand.  Before the entry into force of the Agreement, 3,718 tariff lines (41.7% of Japan's 
tariff) were already duty-free on an MFN basis.5  Upon entry into force of the Agreement, an 
additional 3,612 tariff lines (40.5% of the tariff) became duty-free for import from Thailand;  as a 
result, 82.2% of Japan's tariff lines became duty-free corresponding to 87.1% of imports by value 
from Thailand.  The remaining tariffs are to be pr ogressively eliminated in five additional stages 
starting in 2010 and ending in 2022.  By 2017, af ter ten years of implementation, a further 602 lines 
are to become duty-free (6.7% of the tariff lines) amounting to 5.1% of the value of imports from 
Thailand.  By the end of implementation in 2022, 90.2% of tariff lines and 92.1% imports by value 
from Thailand will be duty-free. 
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
A.  Japan 
Duty phase-out 
period Number of lines % of total lines in 
Japan's tariff schedule Value of Japan's imports 
from Thailand  
(2004-2006) 
in million US$ % of Japan's total 
imports from Thailand 
2004-2006 
MFN duty free 
(2007) 3,718 41.7 10,653.9 72.5 
2007-2009 3,612 40.5 2,140.3 14.6 
2010-2011 4 0.0 9.5 0.1 
2012-2013 86 1.0 499.8 3.4 
2014-2016 268 3.0 205.4 1.4 
2017-2021 244 2.7 26.9 0.2 
2022 115 1.3 1.9 0.0 
Remain dutiable 870 9.8 1,166.1 7.9 
Total 8,917 100.0 14,703.8 100.0 
 
Note: Based on the HS 2002 nomenclature.  Calculati ons exclude tariff lines having an in-quota rate. 
 
Source:   WTO estimates based on data provided by Japan. 
 
21. Table III.1.B shows Thailand's duty elimination in terms of tariff lines and trade, applied to 
Japan.  Before the entry into force of the Agreem ent, 1,138 tariff lines (20.7% of Thailand's tariff) 
were already duty-free on an MFN basis.6  Upon entry into force of the Agreement, an additional 
1,643 tariff lines (29.8% of the tariff) became dut y-free for import from Japan;  as a result, 50.5% of 
Thailand's tariff lines became duty-free corresponding to  36.7% of imports by value from Japan.  The 
                                                      
5 Japan's MFN tariff schedule in the year of entry into force of the Agreement (2007) comprised 8,917 
tariff lines at the HS 9-digit level;  93.4% of this tariff is ad valorem, 2.3% relates to lines with specific duties;  
0.6% relates to compound tariff lines;  3.7% relates to mixed tariff lines, and 0.2% to others.  For compound and 
mixed lines, only the ad valorem  component is taken into account in the calculation of averages. 
6 Thailand's MFN tariff schedule in the year of th e entry into force of the Agreement (2007) comprised 
5,505 tariff lines at the HS 7-digit level;  84.65% of this tariff is ad valorem , 1.45% relates to lines with specific 
duties;  and 13.9% relates to mixed tariff lines. WT/REG235/1 
Page 12 
 
 
  remaining tariffs are to be progressively eliminat ed in nine additional stages starting in 2009 and 
ending in 2017.  The bulk of the liberalization will be completed in 2012 wh en 1,002 lines will be 
liberalized, as a result of which 81.7% of the tari ff will become duty-free for Japan's exports to the 
Thai market.  In 2017, after full implementation, a further 2,575 lines are to be become duty-free 
(46.7% of the tariff lines) amounting to 47.7% of th e value of imports from Japan;  as a result in 2017, 
97.3% of tariff lines and 84.3% of imports  by value from Japan will be duty-free.  
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Thailand 
Duty phase-out period Number of lines % of total lines in 
Thailand's tariff 
schedule Value of Thailand's 
imports from Japan  
(2004-2006) 
in million US$ % of Thailand's total 
imports from Japan 
2004-2006 
MFN duty free (2007) 1,138 20.7 6,748.1 27.5 
2007-2008 1,643 29.8 2,255.1 9.2 
2009 144 2.6 366.9 1.5 
2010 551 10.0 2,299.3 9.4 
2011 21 0.4 5.2 0.0 
2012 1,002 18.2 4,024.5 16.4 
2013 24 0.4 100.4 0.4 
2014 98 1.8 46.5 0.2 
2015 341 6.2 52.7 0.2 
2016 184 3.3 2,345.9 9.6 
2017 210 3.8 2,447.9 10.0 
Remain dutiable 149 2.7 3,840.6 15.7 
Total 5,505 100.0 24,533.0 100.0 
 
Note For tariff lines subject to TRQs only the out-of-quota duty  is included in the tariff-related calculations; for the calcul ation of 
averages, specific rates are excluded and the ad valorem  part of alternate rates are included 
 Based on the HS 2002 nomenclature. 
 
Source :  WTO estimates based on da ta provided by Thailand. 
 
3. Japan's liberalization schedule 
22. Table III.2 shows Japan's tariff elimination commitments vis-à-vis  Thailand by HS section 
product categories.  Of the 3,612 tariff lines liberaliz ed upon entry into force of the Agreement, more 
than half fall under HS section XI (textiles) while the others are distributed across the other HS sections with a majority falling under HS secti on VI (chemicals).  Of the 870 lines retaining a duty 
at the end of the implementation period, the vast ma jority fall under HS sections I to IV (agricultural 
products).  The overall average tariff in 2022 on the lines remaining dutiable will be 18.4% with the 
highest rates for footwear (25.8%) and prepared foods (22.5%).   
Table III.2 
Japan: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  
HS section  MFN 
avg.
% Total 
No. of 
lines  MFN 
2007  2007 
- 
2009  2010
- 
2011  2012
-
2013  2014 
- 
2016  2017
-
2021  2022  
No. of lines 
remaining 
dutiable  
Avg. final tariff 
(dutiable)  
I Live animals and animal 
products 8.4 508 109 49 2 20 49 10 2 267 14.1 a 
II Vegetable products 6.1 526 165 139  13 52 38 19 100 20.2 a 
III Animal or vegetable 
fats and oils 3.8 85 20 21  1 5 2 1 35 14.8 a 
IV Prepared foods etc. 16.4 761 77 56 2 17 61 99 93 356 22.5 a 
V Minerals 0.5 219 166 34  18    1 - 
VI Chemicals and 
chemical products 2.3 1,034 403 620  1 1 1  8 14.2 a  WT/REG235/1 
 Page 13 
 
 
  Number of duty-free lines  
HS section  MFN 
avg.
% Total 
No. of 
lines  MFN 
2007  2007 
- 
2009  2010
- 
2011  2012
-
2013  2014 
- 
2016  2017
-
2021  2022  
No. of lines 
remaining 
dutiable  
Avg. final tariff 
(dutiable)  
VII Plastics and rubber 2.4 296 103 179  14      
VIII Hides and skins 10.4 196 66 3   67 32  28 17.7  
IX Wood and articles 3.4 233 83 72  2 1 37  38 6.6 
X Pulp, paper etc. 0.0 172 172         
XI Textiles and textiles 
articles 6.5 2,063 91 1,966      6 - 
XII Footwear, headgear 16.3 111 6 25   24 25  31 25.8  
XIII Articles of stone 1.1 160 100 58   2     
XIV Precious stones, etc. 1.3 80 58 22        
XV Base metals and base 
metals products 0.9 842 603 239        
XVI Machinery 0.1 959 945 14        
XVII Transport 
equipment 0.1 147 146 1        
XVIII Precision 
equipment 0.2 294 285 6   3     
XIX Arms and 
ammunition 6.9 24  24        
XX Misc. manufactured 
articles 1.7 200 113 84   3     
XXI Works of art, etc. 0.0 7 7         
Total 4.8 8,917 3,718 3,612 4 86 268 244 115 870 18.4 
 
Note: Based on the HS 2002 nomenclature;  for tariff lines subj ect to TRQs only the out-of-quota duty is included in the tariff -related 
calculations. 
a Combination of ad valorem  and specific duties; for tariff lin es with specific duties only the ad valorem  component are included 
in the calculations. 
- Specific  duty. 
 
Source:  WTO estimates based on data provided by Japan. 
 
23. The 870 tariff lines that will remain dutiable at the end of the implementation period (2022) 
include products: i) excluded from liberalization (cat egory X) (531 tariff lines, mainly in HS chapters 
3-4, 11, 19, and 64);  ii) subject to future ne gotiation (category R) (315 tariff lines, mainly in 
HS chapters 2-3, 16, 20, and 44);  iii) subject to progressive duty reducti on up to 2012 or standstill 
during the implementation period (category P)7 (15 tariff lines, in HS chapters 2-3, 15-16, and 20-21);  
iv) subject to TRQs (five tariff lines, in HS chap ters 8, 16-17, and 35);  and v) under other mixed 
categories for which there is partial liberalization (four tariff lines8, in HS chapters 8, 16, and 22).  
Chart III.1 below shows the breakdown of these products. 
                                                      
7 Category P is composed of: two tariff lines that are scheduled for a standstill from the entry into force 
of the Agreement until the end of the implementation period (HS030490095 (preferential duty of 2%), and 
HS160250600 (preferential duty of 14.9%));  and 13 lines subject to progressive duty reduction up to 2012. 
8 The lines are HS080430010 (category Q/X);  HS160590290 (category B5/R);  and HS220600229 and 
220890129 (category A/X) where part of each line is subject to different regimes such as TRQs or government 
certification requirements. WT/REG235/1 
Page 14 
 
 
  Chart III.1  
Japan: Composition of lines remaining dutiable
Excluded 
(Category X) 
(61.0 %)TRQs
(0.6 %)
Duty 
reduction or 
standstill
(Category P)
(1.7 %)
Source :  WTO estimates based on data provided by Japan.Subject to Negotiations 
(Category R)
(36.2 %)
Mixed 
Categories 
(0.5 %)Pasta, prepared foods, 
pastrycooks' products (13.8%)
Fish  (9.5%)
Cereals, flour, 
malt,wheat (6.1%)
Dairy produce 
(5.7%)
Footwear 
Other products 
under Category X 
(22.3%)
 
 
 
24. Chart III.2 shows a comparison of average du tiable rates in those HS sections where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines subject to preferential duties only.  For those 
HS sections where tariff peaks remain after impl ementation of the Agreement is completed, the 
preferential duties are identical to the MFN duties for HS sections I, III, VI, VIII, IX and XII, whereas 
the preferential duties are slightly lower than the MFN duties for HS sections II and IV.  The average 
applied MFN rate in 2007 for HS sections II and IV  was 20.3% (compared to a preferential rate of 
20.2%) and 22.7% (compared to a preferential rate of 22.5%), respectively.  WT/REG235/1 
 Page 15 
 
 
  0.0 5.0 10.0 15.0 20.0 25.0 30.0XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart III.2
Japan:  Average of dutiable rates, by HS Section
HS Section  
Note: For tariff lines with non ad valorem  components, only the ad valorem  part of alternate rates are included in the calculation.
Source :  WTO Secretariat estimates, based on data provided by Japan.Average rate of duty (%)
MFN Preferential
 
 
25. Chart III.3 shows a comparison of average du tiable rates in those HS chapters where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines subject to preferential duties only.  For those 
HS chapters where tariff peaks remain after impl ementation of the Agreement is completed, the 
preferential duties will be identical to the MFN duties for HS chapters 1, 4, 7, 9-13, 15, 17-19, 23-24, 
29, 35, 41-44, and 64, whereas the preferential du ties will be lower than the MFN duties for HS 
chapters 2-3, 8, 16, and 20-22.  The highest ra tes are found in HS Chapters 17 (sugars and sugar 
confectionary), 10 (cereals) and 4 (dairy pr oducts), respectively, 43.1%, 35% and 26.9%. WT/REG235/1 
Page 16 
 
 
  05101520253035404550
1
2347
8
9
1011121315
16
171819
20
2122
23
2405101520253035404550
25
29
35
41
42
43
44
50
64Chart III.3
Japan: Average of dutiable rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential**
Note: For tariff lines with non ad valorem  components, only the ad valorem  part of alternate rates are included in the calculation; 
          * HS Chapters 25 and 50 only contain specific duties.Source :  WTO Secretariat estimates based on data provided by Japan.
 
 
 
4. Thailand's liberalization schedule 
26. Table III.3 shows Thailand's tariff elimination commitment vis-à-vis  Japan by HS section 
product categories.  Of the 1,643 tariff lines liberaliz ed upon entry into force of the Agreement, more 
than half fall under HS section XI (textiles).  Of the 149 lines retaining a duty at the end of the 
implementation period, most fall under HS sections  XVII (transport equipment), and II (vegetable 
products).  The overall average tariff in 2017 on the lines remaining dutiable will be 29.3% with the 
highest for prepared foods (52.8%).    
   WT/REG235/1
 Page 17Table III.3 
Thailand: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  HS section  
MFN avg.%  
Total No. of 
lines  
MFN 2007  
2007-
2008  
2009  
2010  
2011  
2012  
2013  
2014  
2015  
2016  
2017  
No. of lines 
remaining 
dutiable  
Avg. final 
tariff 
(dutiable)  
I Live animals and animal products 17.5 254 30 61 5 29 11 41 1 13 41  6 16 12.8 
II Vegetable products 29.3 279 5 73 10 13 1 46 2 4 89  7 29 41.0 a 
III Animal or vegetable fats and oils 19.9 71  15  1 6 2   39   8 - 
IV Prepared foods etc. 27.4 204 1 35  3 2 33 8 9 80  16 17 52.8 a 
V Minerals 1.8 158 64 66 5 3  20        
VI Chemicals and chemical products 2.9 838 427 205 25 72 1 92     14 2 10.0 
VII Plastics and rubber 9.6 239 31 8 7 41  22   6  124   
VIII Hides and skins 12.5 78 2 15  8  28  22 3     
IX Wood and articles 8.1 99 1 20 9 6  22  25 16     
X Pulp, paper etc. 4.5 164 65     99        
XI Textiles and textiles articles 14. 3 866 5 853    6  1    1 10.0 
XII Footwear, headgear 25.8 56  1 6 1  4  20 15  9   
XIII Articles of stone 11.8 146 13  36 47  39  2 9     
XIV Precious stones, etc. 5.2 54 38 7 6 3          
XV Base metals and base metals 
products 6.7 616 227 18 11 11  124 13  9 184 17 2 15.0 a 
XVI Machinery 6.2 822 167 197 10 179  222   31   16 9.1 a 
XVII Transport equipment 23.3 152 8 46 1 16  6     17 58 30.6 a 
XVIII Precision equipment 5.6 241 44   78  118  1      
XIX Arms and ammunition 24.3 21 4 17            
XX Misc. manufactured articles 15.7 135   13 40  78  1 3     
XXI Works of art, etc. 10.0 12 6 6            
Total 10.8 5,505 1,138 1,643 144 551 21 1,002 24 98 341 184 210 149 29.3 
 
-  Specific duty. 
a  Combination of ad valorem  and specific duties; for tariff lines with specific duties only the ad valorem  component are included in the calculations. 
 Note For tariff lines subject to TRQs only the out-of-quota duty  is included in the tariff-related calculations; for the calcul ation of averages, specific rates are excluded and the ad valorem  part of alternate rates are 
included. 
 Based on the HS 2002 nomenclature.  
 Source:  WTO estimates based on data provided by Thailand. 
 
 WT/REG235/1 
Page 18 
 
 
  27. The 149 tariff lines that will remain dutiable at  the end of implementation period (2017) 
include products: i) excluded from liberalization (cat egory X) (ten lines, in HS chapters 24 and 50);  
ii) subject to future negotiation (category R) (nin e lines, in HS chapter 87);  iii) subject to: a) 
progressive duty reduction up to either the end of th e implementation period or 2010;  b) progressive 
reduction, standstill, or combination of progressive  reduction and standstill from the entry into force 
till the end of the implementation period (category P) (123 tariff lines, mainly in HS 3-4, 9, 84, and 
87);  and iv) under other mixed categories (seven tariff lines9, HS chapters 7-9, 12, 22, and 87).   
 
Chart III.4  
Subject to Negotiations 
(Category R)
(6.0%)
Mixed Categories
(4.7%)
Excluded 
(Category X)
(6.7%)
Other products under 
Category P 
(26.2%)Parts of machinery 
(7.4%)
Coffee, tea, mate and spices
(6.7%)
Fish (5.4%)
Dairy produce (5.4%)Motor vehicles
(31.5%)Thailand: Composition of lines remaining dutiable
Source :  WTO estimates based on data provided by Thailand.Duty reduction 
or standstill
(Category P)
(82.6 %)
 
 
  
28. Charts III.5 shows a comparison of average dutiable rates in those HS sections where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines subject to preferential duties only.  For those 
HS sections where tariff peaks remain after impl ementation of the Agreement is completed, the 
preferential duties will be identical to the MFN du ties for HS sections VI, XI, and XV-XVI, whereas 
the preferential duties will be lower than the MFN duties for HS sections I-II, IV, and XVII.  The 
average applied MFN rate in 2007 for HS sections  I-II, IV, and XVII  was 17.1% (compared to a 
preferential rate of 12.8%), 43.3% (compared to a preferential rate of 41%), 54.9% (compared to a 
preferential rate of 52.8%), and 40.9% (compared to a preferential rate of 30.6%), respectively. 
 
 
                                                     
 
9 The seven lines are HS1209910 (category A/P);  HS0712900, HS0813400, HS0901900, HS2202900 
(category B/P);  and HS8703332 and HS8703339 (category P/R).   WT/REG235/1 
 Page 19 
 
 
  0.0 10.0 20.0 30.0 40.0 50.0 60.0XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIV*IIIIIIChart III.5
Thailand:  Average of dutiable rates, by HS Section
HS Section  
Note: For tariff lines with non ad valorem  components, only the ad valorem  part of alternate rates are included in the calculation.
          *HS section III only contains specific duties.
Source :  WTO Secretariat estimates, based on data provided by Thailand.Average rate of duty (%)
MFN Preferential
 
 
29. Chart III.6 shows a comparison of average du tiable rates in those HS chapters where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines subj ect to preferential duties only.  For those HS 
chapters where tariff peaks remain after implementation of the Agreement is completed, the 
preferential duties will be identical to the MFN dutie s for HS chapters 3, 17, 21, 23-24, 50, and 83-85, 
whereas the preferential duties will be lower than th e MFN duties for HS chapters 4, 7-9, 12, 22, and 
87.  Products in Chapters 7-9, 17,  21, and 24 in particular are subject to duties in excess of 40% and as 
high as 65% for Chapter 17. WT/REG235/1 
Page 20 
 
 
  010203040506070
03
04
07
08
09
*10
12
*15
17
21
22
23
24010203040506070
*35
50
83848587Chart III.6
Thailand: Average of dutiable rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
Note: For tariff lines with non ad valorem  components, only the ad valorem  part of alternate rates are included in the calculation; 
          * HS Chapters 10, 15 and 35 only contain specific duties.Source :  WTO Secretariat estimates based on data provided by Thailand.
 
 
5. Tariff-rate quotas 
(a) Japan 
30. In addition to tariff-rate quotas (TRQs) on an MF N basis, Japan maintains five TRQs schemes 
for six tariff lines10 relating to agricultural products:  fresh bana nas;  fresh pineapples;  other hams and 
cuts thereof;  other prepared or preserved meat, meat offal or blood of swine other than hams;  cane 
molasses;  and esterified starches and other starch derivatives.  Among these, the tariff line relating to 
cane molasses is also subject to TRQs on an MFN b asis.  Details of the quantities and rates applying 
to these lines are given in Table AII.1.  In-quota dut ies are zero for bananas, pineapples and starches, 
and above zero for the other products.  Imports a bove the quota quantity enter at the prevailing MFN 
rates for all products subject to a TRQ except fresh bananas for which the out-of-quota rates are either 
10% or 20% depending on the season.       
(b) Thailand 
31. In addition to TRQs on an MFN basis, Thaila nd maintains three TRQs schemes for six tariff 
lines in HS chapter 72 – iron and steel.  Details of  the quantities and rates applying to these lines are 
given in Table AII.2.  The in-quota rates for such  products are all duty-free.  The out-of-quota rates 
for all these lines continue to be the MFN 2007 rates (5%) which will be eliminated in 2017.  The 
Parties explain that if the MFN rate for the six ta riff lines in 2010 or later falls below 5%, and the out-
of-quota rates for these lines under the Agreement is  at 5% importers may utilize the lower MFN 
                                                      
10 Five lines are subject to categor y Q and one to category Q/X (see paragraph 23 and footnote 8 of the 
Presentation).  WT/REG235/1 
 Page 21 
 
 
  rates.  Quota quantities for the period between 2008 a nd 2016, shall be determined by Thailand in the 
preceding year, taking into account recommendations by government officials and experts on iron and 
steel, who are members of the Japan-Thailand St eel Dialogue.  If such recommendations are not 
available, Thailand shall endeavour to set an a ppropriate level of the quota quantity based on the 
quantity for the current year, except in special circumstances.11  Based on further information received 
from the Parties, the quota quantities for 2008-2010 are indicated in Table AII.2 of Annex II of this 
presentation. 
B. RULES OF ORIGIN  
32. Disciplines regarding rules of origin and custom s procedures are set out in Chapters 3 and 4, 
respectively.  Articles 27-49 deal with the rules of origin, while Articles 50-56 cover other customs-
related issues.  
33. The general requirement for a good of a Party to be considered originating (Article 28.1) is 
that it is: i) wholly obtained or produced entirely in  the Party, as defined in Article 28.2;  ii) produced 
entirely in the Party exclusively from originating mate rials of the Party;  or iii) produced entirely in 
the Party using non-originating materials in whole or  in part which satisfy the product specific rules in 
Annex 2 and other applicable requirements in Chapter 3.   
34. Section 2 of Annex 2 sets out specific criteria for non-originating materials to meet so that the 
final product acquires originating status.  In most  cases, origin is granted if the non-originating 
materials have undergone a change in tariff classifi cation (CTC) on the basis of HS chapters, or HS 
headings or subheadings (i.e. at the four or six-di git level).  Except for products under HS chapters 1-
20, 24, 26-27, 41-44, 46, 49-65, and 78-81, in many cases, the rule that no CTC is required if there is 
a qualifying value content (QVC) of a minimum of 40% of originating materials, is prescribed as an 
alternative to CTC.  For some products under HS ch apter 18 (cocoa and cocoa preparations), a CTC is 
applied provided that non-originati ng materials constitute no more than 50% of the weight of the 
products. 
35. Annex 2 also contains rules relating to imports from other member countries of the 
Association of South East Asian Nations (ASEA N).  For some agricultural products under HS 
chapters 7 (edible vegetables and certain roots and tubers) 18 (cocoa and cocoa preparations)12, 19 
(preparations of cereals, flour, starch or milk), and 20 (preparations of vegetables, fruit, nuts or other 
parts of plants), all non-originating materials used  must originate in a non-Party which is a member 
country of the ASEAN.  For some fish and fish  products under HS chapter 16, all non-originating 
materials used must be obtained by fishing in a no n-Party which is a member country of the ASEAN, 
or taken by vessels that are registered in and sail under the flag of a member country of the ASEAN.  
In the case of HS chapters 61-62, the technical test  required, e.g. knitting, crocheting or weaving may 
be performed either in one of the Parties or a non- Party which is a member country of the ASEAN.   
36. For products of HS 7403.11, the applicable rule  is categorized by two different time frames; 
from the first year to the fifth year, a minimum QVC of 40% of originating materials is prescribed as 
an alternative to the CTC, wher eas from the sixth year onwards, e ither a CTC on the basis of HS 
heading or the QVC is applied. 
                                                      
11 The Parties explain that 'special circumstances' i ndicate unpredictable situations such as financial 
crisis, etc. 
12 For some products (i.e., 1803.20, and 18.05) in HS chapter 18, the rule relating to imports from a 
member state of the ASEAN is further accompanied by the requirement that the non-originating imports from 
the member state of the ASEAN constitute at least 50% of the weight of the products. WT/REG235/1 
Page 22 
 
 
  37. Bilateral cumulation between the Parties is possi ble under Article 29.  Article 30 establishes a 
de minimis  principle whereby non-originating materials used in the production of a good that do not 
satisfy an applicable rule for the good shall be disregarded, provided th at the totality of such materials 
does not exceed specific percentag es in value, weight or volume of the good.  These percentages are: 
7% of value of goods in HS chapters 19-24;  10 % of value of goods under HS chapters 28-49 and 
64-97;  and 10% of the weight of goods unde r HS Chapters 50-63 (Section 1.(f), Annex 2). 
38. Articles 33-38 define how certain materials ( unassembled or disassembled goods;  fungible 
goods and materials;  indirect materials;  accessories , spare parts and tools;  packaging materials and 
containers for retail sale;  and packing materials a nd containers for shipment) are to be treated/valued 
when determining their origin.  Article 31 contains  a list of non-qualifying operations which do not 
confer origin.   
39. The Parties established Sub-Committees on Rules of Origin and Customs Procedures 
responsible for the implementation and operation of Chapters 3 and 4, respectively (Articles 49 and 
56). 
C. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
40. The Agreement contains no specific provision concerning export duties and charges, and 
quantitative restrictions. 
D. REGULATORY PROVISIONS  ON TRADE IN GOODS  
1. Standards 
(a) Sanitary and phytosanitary measures 
41. There are no provisions on sanitary and phytosanitary measures per se  explicitly stated in the 
Agreement. 
(b) Technical barriers to trade 
42. Chapter 6 on mutual recognition applies to registration or designation of conformity 
assessment bodies and procedures for products or  processes covered by Annex 4 on electrical 
products (Article 63).  Each Party must allow the other Party's registered or designated conformity 
assessment bodies to participate in its system of conf ormity assessment and accept the results of such 
conformity assessment conducted by the other Pa rty which are pursuant to each Party's laws, 
regulations and administrative provisions specified in  Annex 4.  Such results include certificates of 
conformity (Article 62.1).  Annex 4 lists the Parti es' applicable laws, regulations and administrative 
provisions on: electrical products (Section I);  the technical requirements and the conformity 
assessment procedures (Section II);  criteria for registration or designation (Section III);  and 
registering or designating authorities (Section IV). 
2. Safeguard mechanisms 
(a) Global safeguards 
43. The Parties retain their existing rights and obligations under Article XIX of GATT 1994 and 
the WTO Agreement on Safeguards (Article 22.9).  According to the Parties, in the case of the 
application of a global safeguard measure by any of  the Parties to the Agreement, the measure is 
inclusive of the other Party.  WT/REG235/1 
 Page 23 
 
 
  (b) Bilateral safeguards 
44. As a result of the elimination or reduction of customs duties, if a good originating in one 
Party is imported by the other Party in such incr eased quantities, in absolute terms or relative to 
domestic production, and under such conditions that the imports constitute a cause of serious injury, 
or threat thereof, to a domestic industry of the importing Party, it may apply a bilateral safeguard 
measure to the minimum extent necessary to preven t or remedy serious injury and to facilitate 
adjustment (Article 22.1).13 
45. Bilateral safeguards may take the form of (a) suspension of the further reduction of customs 
duty on the originating good;  or (b) increased cu stoms duty to the lesser of the applied MFN duty 
when the safeguard is taken and on the day immediat ely preceding the date of entry into force of the 
Agreement (Article 22.1.(a) and (b)). 
46. An investigation shall be carried out by the competent authorities of a Party mutatis mutandis  
as in Articles 3 and 4.2 of the WTO Agreement on Safeguards.  The investigation shall, except in 
special circumstances, be completed within one year, and no more than 18 months from the date of initiation (Article 22.2).
14 
47. Bilateral safeguards cannot be imposed for more than three years (compared to four years in 
the WTO Agreement on Safeguards), but can be ex tended up to a maximum period of five years 
provided that conditions in the Agr eement are met (see Table III.4 below).15  When the expected 
duration of a bilateral safeguard is over one year, the Party applying the measure shall progressively 
liberalize it at regular intervals during the period of application (Article 22.3.(d)).  The measure must 
not be applied to goods which have already been su bject to a bilateral safeguard, for a period of time 
equal to the duration of the previous measure or one  year, whichever is longer (Article 22.3.(e)).   
48. Provisional measures may be taken in critical circumstances where delay would cause 
damage (Article 22.7.(a)).  If th e subsequent investigation did not  determine that increased imports 
caused or threatened to cause seri ous injury to a domestic industry, the customs duty imposed as a 
result of the measure shall be "promptly" refunded (Article 22.7.(d)).  The duration of provisional 
measures cannot exceed 200 days within the overa ll period of the safeguard (Article 22.7.(c)). 
49. If necessary, the Parties shall review the bilateral safeguard provisions 15 years after the entry 
into force of the Agreement (November 2022) (Article 22.10). 
Table  III.4:  Synopsis of bilateral safeguards  
Requirements Specific Conditions under the Agreement 
Trigger Rise in imports 9 (Article 22.1) 
Criteria Cause of serious injury or threat 
thereof 9 (Article 22.1) 
Measures allowed  Suspension of further duty reduction 9 (Article 22.1.(a)) 
 Increase in duty rate Up to a maximum limit corre sponding to the MFN rate 
applicable to the same pr oduct at the time when the 
bilateral safeguard measure is taken;  and on the day 
immediately preceding the date of entry into force of the 
Agreement, whichever is lesser (Article 22.1.(b))  
                                                      
13 Under Article 15, the Agreement follows the definitions of domestic industry, serious injury and 
threat of serious injury in Article 4 of the WTO Agreement on Safeguards. 
14 There is no time period for the investig ation in the WTO Agreement on Safeguards. 
15 Under the WTO Agreement on Safeguards, the maximum period of application of (global) safeguard 
measures is eight years (Article 7.3). WT/REG235/1 
Page 24 
 
 
  Requirements Specific Conditions under the Agreement 
Timing Maximum duration including 
provisional measures 3 years;  provided that the conditions of Article 22.3 are 
met, extended by up to 2 years - up to a maximum of 5 
years. 
(Article 22.3.(d)) 
Conditions or limitations Information of initiation of an 
investigation and of the intention to 
take measures through a written 
public notice  9 
(Article 22.3) 
Detailed criteria are to be id entified in the written public 
notice.  
 Prior consultation 9 
(Article 22.3.(c))  
 Prior investigation 9 
(Article 22.2.(a)) 
 Provisional bilateral safeguard 
measures 9 
(Article 22.7) 
 Re-imposition of safeguard measures 
on the same good Shall not be applied for a period of time equal to the 
duration of the previous measure or 1 year, whichever is 
longer (Article 22.3.(e)) 
 Progressive liberalization 9 
(Article 22.3.(d)) 
 Compensation 9 
(Article 22.4.(a)) 
 Possibility of retaliation 9 
Article 22.4.(b)-(d)  
 
Source:  Economic Partnership Agreemen t between Japan and Thailand. 
 
(c) Special safeguards 
50. The Parties retain their rights and obligati ons under Article 5 of the WTO Agreement on 
Agriculture (Article 22.9). 
(d) Balance of payments safeguards 
51. The Agreement allows the Parties to take meas ures to safeguard the balance of payments in 
accordance with Article XII of the GATT 1994, and the Understanding on Balance-of-Payments 
Provisions of the GATT 1994 (Article 23). 
3. Anti-dumping and countervailing measures 
52. There are no anti-dumping and countervailing provisions per se  in the Agreement.  However, 
Article 15.(b).(ii) implies that anti-dumping or countervailing duty can be applied pursuant to the 
provisions of Article VI of the GATT 1994 and the WTO Agreement on Implementation of Article VI 
of the GATT 1994. 
4. Subsidies 
53. The Agreement contains no specific provision on subsidies.  As in the case of anti-dumping 
and countervailing measures above, subsidies may be  applied according to the WTO Agreement on 
Subsidies and Countervailing Measures (Article 15.(b). (ii)).  In Article 20 the Parties agree not to 
introduce or maintain any export subsidies on ag ricultural goods listed in Annex 1 to the WTO 
Agreement on Agriculture.  WT/REG235/1 
 Page 25 
 
 
  5. Customs valuation 
54. Part I of the Agreement on Implementation of Article VII of the GATT 1994 applies mutatis 
mutandis  for determining the customs value of goods between the Parties (Article 19). 
6. Other regulations 
55. The Parties agree not to introduce or maintain any non-tariff measures on trade between the 
Parties which are inconsistent with the WTO Agreem ent and to ensure transparency of the permitted 
non-tariff measures (Article 21).  A Sub-Committe e on Trade in Goods was established for the 
effective implementation and operation of Chapte r 2 (Trade in Goods) (Article 25), including 
discussion on ensuring transparency in the permitted non-tariff measures.   
IV. TRADE IN SERVICES AND INVESTMENT 
A. SCOPE AND DEFINITIONS  
56. A Party's measures affecting trade in services are mainly governed by Chapter 7, which 
covers GATS modes of supply 1 (cross-border), 2 (consumption abroad), 3 (commercial presence), 
and 4 (temporary movement of natural persons) (Article 73.(y)).  Commercial presence means any type of business or professional establishment, in cluding through: i) th e constitution, acquisition
16 or 
maintenance of an enterprise; or ii) the creation or  maintenance of a branch or a representative office, 
within the Area of a Party for the purposes of supplying a service (Article 73.(c)).   
57. Chapter 7 does not apply to: i) measures affecting air traffic rights;  or measures affecting 
services directly related to the exercise of air traffic rights other than measures affecting aircraft repair 
and maintenance, sales and marketing of air transport services, and computer reservation systems;  ii) cabotage in maritime transport services;  iii) subsidies or grants provided by a Party or a state 
enterprise;  iv) measures pursuant to immigration la ws and regulations;  v) measures affecting natural 
persons seeking access to the employment market of  a Party, or measures regarding citizenship, 
residence or employment on a permanent basis;  and vi) government procurement (Article 72.2). 
58. As regards financial services, the GAT S Annex on Financial Services applies 
mutatis mutandis (Article 72.3).  Rights and ob ligations under the Agreement that are not contained in 
the GATS shall not apply to financial services,  except for Articles 77 (schedule of specific 
commitments), 82 (transparency), 89 (review unde r Chapter 7), 90.4 (sc ope and coverage under 
Chapter 8)
17, 114 (review under Chapter 8), Chapters 13 (cooperation) and 14 (dispute settlement) 
(Article 72.4).  The Parties agree that within five  years after the entry into  force of the Agreement 
they will review Article 72.4 (Article 89.4).  Th e Parties indicate that as at March 2011 no such 
review had taken place. 
59. Chapter 7 follows a "positive-list approach" w ith the Parties taking commitments only in the 
sectors and sub-sectors listed in the schedules of specific commitments (Annex 5).  For the 
implementation and operation of the Chapter, a Su b-Committee on Trade in Services is established 
(Article 88). 
                                                      
16 The term acquisition in the Agreement includes partial acquisition of equity in an enterprise 
supplying a service. 
17 Articles 94-96,100, 102-103, 105-107, and 109-112 shall apply to measures by a Party relating to 
investors of the other Party and their investments in services sectors other than financial services sector with 
respect to the management, conduct, operation, maintenance, use, enjoyment and sale or other disposition of 
investments;  and Articles 94, 102-103, 105, 109 and 112 shall apply to measures by a Party relating to investors 
of the other Party and their investments in financial services sector with respect to the management, conduct, 
operation, maintenance, use, enjoyment and sale or other disposition of investments. WT/REG235/1 
Page 26 
 
 
  60. For some sectors and sub-sectors in which Japan  has taken specific commitments in Annex 5, 
it has locked in the liberalization (indicating SS) so  that it does not become more restrictive.  The 
same is not the case for Thailand.  The Parties indica te that negotiations are foreseen within five years 
after the entry into force of the Agreement for a general review of all service sectors including on the 
scope of commitments scheduled as " SS" in accordance with Article 89.1. 
61. For the purpose of transparency, the Parties shall prepare a non-legally binding list with all 
relevant laws and regulations affecting market  access, and national treatment obligations and 
additional commitments in all sectors.  The list is subject to review and revision as necessary (Article 82).  Regarding the rela tionship between this list and Anne x 5, while Annex 5 specifies the 
sectors or sub-sectors in which the specific commitm ents are undertaken, the non-legally binding list 
provides all relevant laws and regul ations affecting the obligations under Articles 74, 75, and/or 76 in 
all sectors for the purposes of transparency.   Thailand has not confirmed to the Secretariat whether 
there is such a list for Thailand. 
62. Chapter 8 and its related Annex 6 contain pr ovisions on investment.  The Annex follows a 
positive list approach scheduling the Parties' sp ecific commitments on investment under national 
treatment (Article 93.1) and perfo rmance requirements (Articles 97.1  and 97.2) (Article 98.1).  The 
Chapter applies to measures by a Party relating to: i) investors of the other Party;  ii) investments of investors of the other Party in the Area of the Part y;  and iii) all investments in the Area of the Party 
with respect to Article 111 (envir onment measures) (Article 90.1). 
63. The Chapter does not apply to a Party's measures relating to investors of the other Party and 
their investments in services sectors (A rticle 90.3).  However, some provisions
18 of the Chapter on 
investment apply to measures by a Party relating to i nvestors of the other Party and their investment in 
service other than financial services with resp ect to the management, conduct, operation, 
maintenance, use, enjoyment and sale or other dis position of investments (Article 90.4. (a)).  The 
Parties shall further negotiate to review their commi tments under this provision within six years after 
the entry into force of the Agreement (Article 114).    
64. For measures by a Party relating to investors of the other Party and their investments in the 
financial sector, Articles 94, 102-103, 105, 109 and 112 apply with respect to the management, 
conduct, operation, maintenance, use, enjoymen t and sale or other disposition of investments 
(Article 90.4. (b)). 
65. The provisions on national and MFN treatment (A rticles 93 and 96, respectively) shall not 
apply to any measure covered by an exception to, or derogation from, the obligations under Article 3 
or 4 of the TRIPS Agreement (Article 90.5).  The Ch apter also does not apply to laws, regulations or  
procedures and practices governing the procurement by government agencies of goods and services 
for government purposes (Article 90.6). 
66. Investments are defined by the Chapter as the following assets owned by a direct investor: i) 
shares, stocks or other forms of equity interest in a direct investment enterprise, including rights derived therefrom;  ii) reinvested earnings in a dir ect investment enterprise;  or iii) bonds, debentures, 
other debt instruments and loans between a direct investor and its direct investment enterprise, 
including rights derived therefrom (Article 91.(j)).   Investment activities means the establishment, 
                                                     
 
18 Articles 94-96 (access to the Courts of Justi ce;  minimum standard of treatment;  and MFN 
treatment, respectively), 100 (acquire d treatment), 102 (expropriation and compensation), 103 (protection from 
strife), 105-107 (subrogation;  settlement of investment  disputes between a Party and an investor of the other 
Party;  and special formalities, respectively), 109-112 (prudential measures and measure to ensure the stability 
of the macroeconomy or the exchange rate;  taxation measures as expropriation;  environmental measures;  and 
denial of benefits, respectively).  WT/REG235/1 
 Page 27 
 
 
  acquisition, expansion, manageme nt, conduct, operation, maintenance, use, enjoyment and sale or 
other dispositions of i nvestments (Article 91.(i)) (see paragraph 147 of the Factual Presentation, with 
the reference to Article 111). 
B. DENIAL OF BENEFITS  
67. Subject to prior notification and consultation, a Party may deny the benefits of Chapter 7 to a 
service supplier of the other Party if that supplier is  an enterprise owned or controlled by persons of a 
non-Party (Article 87.1).  The Parties clarified that  although under the Article a Party may deny the 
benefits of Chapter 7 to an enterprise establishe d in Japan or Thailand w ith substantive business 
activities if it is owned or controlle d by persons of non-Party, this is  subject to prior notification and 
consultation with the other Party.  Therefore, the Pa rty may not deny the benefits to such an enterprise 
without the agreement of the other Party.  The Parties shall enter into negotiations to review this 
provision within five years of entry into force of  the Agreement (Article 89.4), taking into account 
consistency with the GATS.  According to the Par ties, such a review had not been conducted as at 
March 2011.  Under Chapter 8 on investment, a non-Party is eligible to benefit from the Chapter, if it 
has substantive business operations in th e Area of a Party (Article 112.2).  
68. A Party may deny the benefits of Chapter 7 or 8 to a service supplier, or an investor of the 
other Party that is an enterprise of the other Party and to investments of such an investor, respectively 
if the service supplier or the enterprise is owned or controlled by persons of a non-Party, and the 
denying Party does not maintain diplomatic relati ons with the non-Party, or adopts or maintains 
measures with respect to the non-Party that prohibit transactions with the enterprise or that would be 
violated or circumvented if the benefits of the Ch apter were accorded to th e enterprise or to its 
investments (Articles 87.2 and 112.1). 
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
1. Market access 
69. The Agreement contains provisions on market  access along the lines of Article XVI of the 
GATS, providing that, where specific commitments ar e undertaken, six types of limitations cannot be 
maintained or adopted by the Parties, unless othe rwise specified in their schedules (Article 74). 
2. National treatment 
70. Article 75 essentially reproduces the national treatment provisions of Article XVII of GATS.  
The Article also specifies that a Party may no t invoke this Article under Chapter 14 (dispute 
settlement) regarding a measure of the other Party th at falls within the scope of an international 
agreement between the Parties relating to th e avoidance of double taxation (Article 75.4). 
71. With respect to the establishment, acquisition a nd expansion of investments in a Party's Area, 
the Parties shall accord to investors of the other Party and to their investments treatment no less 
favourable than they accord, in like circumstances, to their own inv estors and to the investments of 
the investors.  However, this applies only to th ose sectors in Part 1 of Annex 6 subject to any 
conditions and qualifications set out therein (Article 93.1). 
72. With respect to the management, conduct, operati on, maintenance, use, enjoyment and sale or 
other disposition of investments in a Party's Area, national treatment applies, subject to its laws and 
regulations existing on the date of entry into fo rce of the Agreement (Article 93.2).  For Japan, 
however, this provision does not apply to some i ndustrial sub-sectors.  Therefore, Japan either WT/REG235/1 
Page 28 
 
 
  reserves the right to adopt or maintain any measu re relating to investment in such sub-sectors19 or may 
adopt or maintain any measure relating to activities of tobacco manufacturing, issuing and minting of 
Bank of Japan notes and coinage (Part 2 of Anne x 6).  There is no such a list for Thailand.   The 
Parties shall conduct further general review ne gotiations on their commitments under the national 
treatment provision in all non-service sectors within five years after the entry into force of the 
Agreement (Article 114).   The Parties indicated that such review had not been conducted as at March 
2011. 
3. MFN treatment 
73. Concerning trade in services, there is no automa tic MFN obligation as such;  therefore, the 
Parties may choose not to extend to each other any curre nt or future preferential treatment granted to a 
non-Party.  After entry into force of the Agreemen t, when a Party enacts any agreement on trade in 
services or on establishment, acquisition and expansi on of investments with a non-Party, the enacting 
Party shall consider a request by the other Party to incorporate in the Agreement treatment no less 
favourable than provided under any other agreement (Article 79 and Article 96.1). 
74. With respect to the management, conduct, operati on, maintenance, use, enjoyment and sale or 
other disposition of investments in a Party's Area, the Party shall accord, to investors of the other 
Party and to their investments treatment no less favour able than it accords, in  like circumstances, to 
investors of any non-Party and to their investments (Article 96.2).   However, Article 96.2 does not 
apply to the sectors which Japan specified  as either maintaining existing measures20 or reserving the 
right to adopt or maintain any measure re lating to investment (Part 3 of Annex 6).21  There is no such 
a list for Thailand.   In addition, Article 96.2 shall not be cons trued so as to oblige a Party to extend to 
the investors of the other Party the benefit of an y treatment, preference or privilege which may be 
extended by the Party by virtue of any customs union, free trade area, a monetary union, similar 
international agreements leading to such unions or free trade areas, or other forms of regional 
economic cooperation to which either Pa rty is or may become a party.  
75. The Parties shall conduct further review ne gotiations on their commitments under the MFN 
treatment provision of the Chapter on investment in the sixth year of the entry into force of the 
Agreement (Article 114). 
4. Commercial presence 
76. The Chapter on trade in services contains no  specific provision on commercial presence, per 
se.  The limitations on commercial presence in the services scheduled by the Parties are summarized 
in the section on liberalization commitments on trade in services in this presentation. 
5. Movement of natural persons 
77. Subject to compliance with immigration laws and regulations, the Parties grant entry and 
temporary stay to each other's nationals in accordan ce with Chapter 9 and its related Annex 7.  The 
categories of natural persons covered by Annex 7 are: i) short-term business visitors;  ii) 
                                                      
19 These are: electricity and gas utilities;  nuclear ener gy;  fisheries within the territorial sea, internal 
waters, exclusive economic zone and continental shelf;  manufacturing related to aircraft and space industry;  
and manufacturing related to arms and explosives.   
20 These are agriculture, forestry and fisheries (mis cellaneous crop farming;  tree seed gathering and 
forest nursery services;  seaweed aquaculture;  and se ed aquaculture), air transport, freight forwarding, and 
water transport. 
21 These are fisheries within the territorial sea, internal waters, exclusive economic zone and 
continental shelf (marine and inland water fisheries, marine and inland water aquaculture, and recreational 
fishing guide business);  and public law enforcem ent and correctional services and social services.  WT/REG235/1 
 Page 29 
 
 
  intra-corporate transferees;  iii) investors;  iv ) natural persons engaging in professional services;  
v) natural persons engaging in business activities,  which require technology or knowledge at an 
advanced level or specialized skills in particular fi elds of industry, on the basis of a personal contract 
with public or private organizations in a Party;  and vi) instructors (Article 117.1).  The Parties 
indicate that Annex 7 is not specific to services but covers also the movement of natural persons for 
business purposes in all sectors including manufacturi ng or as specified in Annex 7.  Regarding the 
relationship between specific commitments in mode 4 in the services schedules (Annex 5) and 
specific commitments for the movement of natural pers ons in Annex 7, the Parties clarify that even if 
mode 4 is liberalized for a given sub-sector in Anne x 5, the liberalization is limited to the categories 
of natural persons for which ther e are commitments in Annex 7. 
78. The Parties shall not impose or maintain any limitations on the total number of visas granted 
to natural persons of the other Party, unless ot herwise specified in Annex 7 (Article 117.3).22  The fact 
that a Party requires a visa of certain nationalities or citizenship and not for others shall not be 
regarded as nullifying or impairing benefits under a specific commitment (note of Article 115).  The Parties shall ensure that application fees charge d by their competent authorities do not unjustifiably 
hinder the movement of natural pers ons (Article 118.4).  Transparen cy provisions require each Party 
to publish or make available to  the other Party information on re quirements and procedures necessary 
for effective application of the granting of entry, and initial or renewal of temporary stay (Article 
118.1).  The Chapter echoes the provisions on mutual recognition stated in Article 81 of the Chapter 
on trade in services (Article 119).  The Parties agreed  to stipulate mutual recognition in the chapter on 
the movement of natural persons in addition to th at for trade in services for the purposes of facilitating 
the movement of natural persons.   Further, the Sub-Committee on Mo vement of Natural Persons 
works in close consultation with the Special S ub-Committee on Mutual Recognition whose functions 
are, inter alia , seeking possibilities for the Parties to ma ke commitments on matters of mutual 
recognition and identifying areas for deepening coop eration between the Parties (Articles 120.3 and 
120.6). 
79. Annex 7 Parts 1 and 2 for Japan and Thailand, respectively, defines the Parties' specific 
commitments for the movement of natural pers ons.  The six categories of natural persons 
(in paragraph 77 of the Factual Presentation) do no t include 39 professions stipulated in a Thai law
23, 
the Royal Decree Prescribing Works Relating to Occupation and Profession in which an Alien is 
Prohibited to Engage.   In addition, Thailand defines conditions  for the entry of intra-corporate 
                                                      
22 According to the Parties, other quantitative limitations, not relating to the number of visas, cannot be 
imposed. 
23 The 39 professions for which Thailand indicates the various reasons relating to security and culture 
for prohibiting foreigners from engaging in these professions are: 1) labour work;  2) agriculture, animal 
husbandry, forestry or fishery, except work requiring specialized knowledge or farm supervision;  3) brick-
laying, carpentry or other construction work;  4) wood carving;  5) driving motor vehicles or vehicles which do 
not use machinery or mechanical devi ces, except piloting aircraft internationally;  6) front-shop sale;  7) 
auctions;  8) supervising, auditing or providing accountancy services, excep t occasional internal auditing;  9) 
cutting or polishing precious or semi-precious stones;  10) haircutting, hairdressing or beautification;  11) cloth-
weaving by hand;  12) mat-weaving or making utensils from reed, rattan, jute, hay or bamboo;  13) making rice 
paper by hand;  14) lacquer work;  15) making Thai musical instruments;  16) niello work;  17) goldsmith, 
silversmith, or gold-and-copper alloysmith;  18) stone work;  19) making Thai dolls;  20) making mattresses or 
quilts;  21) making alm-bowls;  22) making silk products by hand;  23) making Buddha images;  24) knife-
making;  25) making paper or cloth umbrellas;  26) shoe-making;  27) hat-making;  28) brokerage or agency, 
except  in international trading;  29) engineers in civil engineering concerning design and calculation, 
systemization, analysis, planning, testing, construction supervision, or consulting services excluding work 
requiring specialized techniques;  30) architects concerning design, drawing-making, cost estimation or 
consulting services;  31) dressmaking;  32) pottery;  33) cigarette-rolling by hand;  34) guide or tour conductor;  
35) hawking of goods;  36) Thai typesetting by hand;  37) Unwinding and twisting silk by hand;  38) clerical or 
secretarial work;  and 39) providing legal services or engaging in legal work.   WT/REG235/1 
Page 30 
 
 
  transferees, and investors for the sectors that it has scheduled mode 3 commitments, whereas for 
short-term business visitors, the scope has been widen to the sectors in which it has mode 4 
commitments.  Commitments in the three categories apply to all manufacturing sectors as well. 
(a) Short-term business visitors 
80. For both Parties, a short-term business visitor is understood not to engage in direct sales to the 
general public or supply services himself, but, inter alia , aims to establish a commercial presence in 
the other Party (Section 1, Parts 1 and 2, Annex 7).  Thailand clarifies that there are no restrictions on 
the total number of short-term business visitors ( unlike under "intra-corporate transferees", see 
paragraph below), although those vi siting Thailand for less than 15 days are obliged to notify their 
arrival,  to the Department of Employment in th e Ministry of Labour.  Japan's specific commitments 
do not permit remuneration for short-term visito rs.  While Thailand's specific commitments do not 
refer to remuneration.  Thailand confirms that this is permitted.    
(b) Intra-corporate transferees 
81. Japan limits eligible Thai intra-corporate transferees to certain activities requiring, for 
example, certain management posts or education le vels.  Thailand's commitments on intra-corporate 
transferees are limited to the sectors or sub- sectors in which it undertakes specific mode 3 
commitments under Annex 5 and for all manufacturing sectors.  A branch or affiliate of the juridical person concerned must import a mi nimum value of three million baht in foreign currency into 
Thailand.  Further, the total number of foreigners  is limited to ten persons per company (Annex 7, 
Part 2, Section 2.4).  This limitation applies not only to Japan but also to non-Parties.  Japan does not have similar limitations. 
(c) Investors 
82. A Japanese investor in Thailand is a natural pe rson who is a representative or an employee of 
a juridical person of Japan that is investing, or  has invested, in the Area of Thailand except: i) a 
representative or employee of a branch located in the Area of Japan that is a juridical person of a 
non-Party;  ii) for all manufacturing sectors, a re presentative or employee of a juridical person of 
Japan which is owned or controlled by persons of a non-Party and has no substantive business 
operations in Japan;  or iii) for all service sectors, a representative or employee of a juridical person of Japan which is owned or controlled by persons of a non-Party, in case the benefits of Chapter 7 are 
denied to such a juridical person in accordance with the provision on deni al of benefits (Annex 7, Part 
2, Section 3).  
83. A Thai investor in Japan is a natural person w ho is engaged in activities: i) investing in and 
managing a business in Japan;  ii) managing a business in Japan on behalf of a person other than that 
of Japan who has invested in such business;  or iii) conducting a business in Japan in which a person 
other than that of Japan has invested, where business is defined as including Thai spa services 
(Annex 7, Part 1, Section 3). 
(d) Other 
84. Thai professionals supplying legal, accoun ting or taxation services, and qualified under 
relevant Japanese laws are eligible to enter and tempor arily stay in Japan (Annex 7, Part 1, Section 4).  
Thailand did not make commitments in this category (A nnex 7, Part 2, Section 4).  Thailand indicates 
that under the Agreement it does not allow Japane se natural persons engagi ng in professional services 
to enter and temporarily stay in Thailand beyo nd that permitted by existi ng laws and regulations.  WT/REG235/1 
 Page 31 
 
 
  85. Japan allows temporary entry and stay for na tural persons from Thaila nd engaging in business 
activities under the status of "engineer", "specialis t in humanities/international services" and "skilled 
labour".  Skilled labour refers to activities requiring specialized skills in Thai  cuisine with specific 
requirements (e.g. five years of work experience, et c.) (Annex 7, Part 1, Section 5).  Upon request, 
Thailand shall provide to Japan a list of National Skill Standard (NSS)  certified eligible Thai cooks 
and any future modifications in the requirements fo r NSS certification. (Annex 7, Part 2, Section D). 
86. Thailand allows Japanese natural persons in nine services sectors24 to enter and stay 
temporarily in Thailand under specific conditions (e.g. academic qualifications and professional 
experience).  Juridical persons in the nine services sectors must pay at least two million baht per 
foreigner employed.  The total number of foreigners is limited to ten persons per company as for the 
case of intra-corporate transferees (Annex 7, Part 2, S ection 5).  Thailand confirms that this applies to 
Japan and to non-Parties. 
87. Japan grants entry and temporary stay to a Th ai natural person engaged in teaching Thai 
classical or traditional dance;  music;  cuisine;  boxing;  language;  or spa services.  Thailand grants 
entry and temporary stay to Japanese natural persons , who are invited or are employed in specific 
educational sub-sectors.25 
88. The period of stay for natural persons in th e six categories is summarized in Table IV.1. 
Table IV.1  
Duration of temporary stay by a natural person in a Party 
 Japan Thailand 
 Initial period of entry 
and stay Extension Initial period of 
entry and stay Extension 
Short-term business visitors 90 days Yes - no indication of 
extension criteria Not more than 90 
days Yes - subject to 
meet the criteria 
under the relevant domestic laws for up to one 
year from the 
arrival date. 
Intra-corporate transferees One or three years Yes - no indication of 
extension criteria Not exceeding one 
year a Yes – further 
three terms of 
not more than one year each. 
Investors One or three years Yes - no indication of 
extension criteria Not exceeding 90 
days Yes – subject to 
meet the criteria under the relevant 
domestic laws 
for up to one year from the arrival date. 
                                                      
24 Consultancy services related to the installation of computer hardware;  software implementation 
services;  data processing services;  data base services;  other computer services: software training services for 
staff of clients;  general management consulting servi ces;  engineering services;  hotel lodging services;  and 
restaurant services. 
25 International and national school education servi ces;  technical and vocational education services;  
higher education services;  profession al and/or short courses education serv ices;  and other education services. WT/REG235/1 
Page 32 
 
 
   Japan Thailand 
 Initial period of entry 
and stay Extension Initial period of 
entry and stay Extension 
Natural persons engaging in 
professional services One or three years Yes - no indication of 
extension criteria No commitment No commitment 
Natural persons engaging in 
business activities, which require technology or knowledge at an advanced 
level or specialized skills in 
particular fields of industry, on the basis of a personal contract with public or private organizations in the 
Party One or three years Yes - no indication of 
extension criteria Not more than 
90 days or duration of the employment contract, whichever 
is less No indication of 
extension criteria. 
Instructors One or three years Yes - no indication of 
extension criteria Not exceeding six 
months or duration 
of the employment 
period, whichever is less No indication of 
extension 
criteria. 
 a A work permit for an initial period of one year shall also be granted and may be extended on an annual basis for a total of 
four years subject to verification of on-goi ng employment with original employer and compliance with relevant Thai laws and 
regulations (Annex 7, Part 2, Section 2.3). 
 
Source : Annex 7, the Agreement. 
 
89. The Parties shall enter into negotiations in acco rdance with Annex 7 and as specified in Parts 
I.C and 2.C of the Annex (Article 121).  Japan sha ll negotiate with Thailand on whether Thai certified 
care-workers and spa therapists can  work in Japan.  For Thai spa therapists, the Parties aim to 
conclude negotiations not later than two years after the entry into force of the Agreement, while for 
care-workers, they aim to reach agreement within one  year but not later than two years after the entry 
into force of the Agreement (Annex 7, Part 1, Sec tion C).  The Parties have conducted five meetings 
of the Sub-Committee on Movement of Natural Persons as of March 2011, and are continuing 
negotiations.  The negotiations are confined to Th ai certified care-workers and spa therapists.   
90. To ease Thai requirements and restrictions, the Pa rties shall negotiate on: i) Thai immigration 
requirements to hire four Thais for each foreigne r (in this case a Japanese natural person who enters 
and temporarily stays in Thailand in accordance with Annex 7) with a view to concluding negotiations 
not later than three years after the entry into force of the Agreement;  ii) the quantitative restriction of 
a maximum of ten foreigners (including Japanese na tionals) per company as a requirement for issuing 
a work permit, with a view to c oncluding negotiations not later than two years after the entry into 
force of the Agreement26;  iii) the possibility of reducing th e requirements above for a Japanese 
natural person being transferred from a Japanese public  or private organization to its branch or 
affiliate in Thailand, with a view  to concluding negotiations not la ter than two years after the entry 
into force of the Agreement27;  and iv) the possibility of further facilitating and expediting notification 
procedures to the Thai Ministry of Labour with a view to reaching a conclusion of the negotiations not 
later than one year after the entry into force of the Agreement28 (C, Part 2, Annex 7).   
                                                      
26 The deadline for these negotiations under the Sub-Committee on Movement of Natural Persons has 
been extended. 
27 The Parties confirm that Thailand would increase the maximum number of work permit renewals for 
Japanese intra-corporate transferees by five times, provided that such natural persons continue to be employed 
by the same employer or company. 
28 The deadline for these negotiations under the Sub-Committee on Movement of Natural Persons has 
been extended.  WT/REG235/1 
 Page 33 
 
 
  D. LIBERALIZATION COMMITMENTS ON TRADE IN SERVICES  
91. The schedules of specific commitments, followi ng a "positive-list approach", are in Annex 5, 
Parts 2 and 3, for Japan and Thailand, respectively.   Each schedule specifies terms, limitations and 
conditions on market access;  conditions and qua lifications for national treatment;  additional 
commitments;  and where appropriate, the time-fra me for their implementation (Article 77).   
92. Any modification or withdrawal of specific commitments is possible in accordance with 
Article 171.1.  Such modification or withdrawal s hould aim at pursuing no less favourable to trade 
than what provided for in its original schedules of  specific commitments (Article 78.1).  Regarding 
the same commitments scheduled both in the Agreem ent and the GATS, if modification or withdrawal 
has been made under the GATS and consequently, th e relevant compensatory adjustment has been 
followed for the other Party in accordance with Artic le XXI (modification of schedules) of the GATS, 
then without further negotiation, the Parties sh all amend the Agreement to incorporate such 
modification or withdrawal, subject to their applicable domestic procedures (Article 78.2). 
1. Japan 
(a) Horizontal commitments 
93. Japan has no horizontal commitments under the Agreement. 
(b) Sector specific commitments 
94. For business services, Japan has added a number of new commitments for: i) some legal 
services29;  ii) urban planning and landscape architectur al services;  iii) veterinary services;  iv) 
services supplied by physiotherapists;  v) rental and leasing services, without operators, relating to 
ships and aircraft;  and vi) a number of  sub-sectors under other business services.30  Its commitments 
in legal services under the Agreement, are somewhat different than those in its GATS schedule.  For 
legal services supplied by qualified lawyers such as "bengoshi" and "benrishi", Japan has broadened 
its commitments to cover legal profession corporations  and patent business corporations in addition to 
natural persons.  For legal advisory services on law of  jurisdiction, it has removed mode 2 limitations;  
practices of third country law and representation in  international arbitration are permitted, and the 
minimum period of work experience for lawyers has b een shortened to three years from five years in 
the GATS.  In research and development services, Japan has added two sub-sectors.  In terms of placement services for personnel in Japan, the Agreement takes a negative-list approach listing 
excluded occupations whereas its GATS schedule lists eligible occupations for placement services for 
personnel. 
95. In communication services, Japan has fully liberalized postal and courier services subject to 
permission/registration requirements for relate d modes of transport services. It has taken 
commitments across the full range of basic and value-added telecommunication services, with no limitations under modes 1 to 4 except a foreign owne rship ceiling (raised from one-fifth in the GATS, 
to a maximum one-third of equity) and a nationalit y requirement for board members and auditors in 
                                                     
 
29 Legal services supplied by judicial and administrative scriveners;  certified social insurance and 
labour consultants;  and land and house surveyors. 
30 The additional other business services in the Agr eement are: technical testing and analysis services 
for manufactured goods, excluding services covered by the Measurement Law;  services incidental to 
agriculture, mining, manufacturing, energy distribution;  investigation services;  security guard services; 
scientific and technical consulting services related to petroleum, petroleum products, gas and mineral;  credit 
reporting services;  collection agency services;  teleph one answering services;  dupli cating services;  mailing list 
compilation and mailing services;  trade fair and exhibitio n organization services;  and services incidental to 
energy manufacturing related to heating supply and oil industry. WT/REG235/1 
Page 34 
 
 
  Nippon Telegraph and Telephone Co rporation (NTT) (including its regional companies).  It 
incorporates and expands upon the reference paper of the GATS by adding examples of prohibited 
anti-competitive practices and through additional requirements in connection with the reference 
interconnection offer.  It has added new sub-sector s - telegraph services, radio and television services 
and their transmission services – sectors in which it has no GATS commitments - but only for mode 2.   
96. Commitments have been made in constructi on and related engineering services, services 
related to mining, for which it has no GATS commit ments, although there are some limitations in 
modes 3 and 4 including that services requiring mining or mining lease rights must be supplied by a Japanese national or an enterpri se established under Japanese law.   
97. For distribution services, Japan has no limitations under modes 1 to 4 for commission agents' 
services, wholesale trade services, and retailing services, sectors unbound under mode 4 in its GATS 
schedule.  With respect to franchising services, it has taken commitments in services related to rice, 
tobacco and salt in the Agreement, whereas service s relating to these products are excluded from its 
GATS schedule.  It also has undertaken commitments  with some limitations in franchising services 
related to petroleum and petroleu m products;  alcoholic beverages;  and these services supplied at the 
public wholesale market, sectors in which it has no commitments in the GATS.   
98. For education services, Japan has taken commitments in child day-care services, for which it 
has no GATS commitments.  For pre-school education services supplied by nursery services, Japan 
does not have mode 3 limitations under th e Agreement whereas under the GATS it has no 
commitments.  It has liberalized other educati on services with some limitations (including services 
supplied by instructors of Thai classical or trad itional dance, music, cuisine, boxing and language) 
which are not in its GATS schedule.  In addition, in  contrast to the GATS, higher and adult education 
services are fully liberalized including mode 4 (no co mmitments for mode 4 in the GATS) except that 
formal educational institutions must be established by school juridical persons for higher education 
services. 
99. In environmental services, Japan has removed the limitation on the number of licenses issued 
for service suppliers of waste oil disposal at sea which it maintains in its GATS schedule. 
100. In financial services, Japan incorporates the GATS Understanding on Commitments in 
Financial Services into its schedule under the Agre ement.  While no commitments in additional sub-
sectors have been taken under the Agreement, some  changes have been ma de.  In insurance and 
insurance-related services, Japan has removed th e obligation for compulsory coverage by the 
Government in modes 1-3 and opened the sub-sect or to insurance intermediation services albeit 
subject to commercial presence requirements.  For banking and other financial services, it has 
removed the requirement that investment trust management services must be provided by juridical persons established in Japan. 
101. Under health related and social services, GA TS commitments in hospital services have been 
replicated except that under the Agreement the re imbursement of expenses for medical treatment 
received by Japanese nationals in Thailand has been made possible.  For medical services delivered in 
the ambulance and social services (including services supplied by certified careworkers, excluding 
child day-care services), for which Japan has no commitments in the GATS, it has taken mode 2 
commitments and mode 3 is unbound except that  there is no limitation on foreign capital 
participation.  It also has taken new mode 2 commitments in blood collection services. 
102. For tourism and travel related services, it has replicated its GATS commitments while adding 
hotel management services under the hotels and rest aurants sub-sector with full commitments except 
mode 1 due to lack of technical feasibility.  Serv ices supplied by Thai cook in hotels and restaurants 
have been added.  WT/REG235/1 
 Page 35 
 
 
  103. In recreational, cultural and sporting services,  Japan has fully liberalized museum services 
including preservation services for historical sites and buildings, other cultural services, and other 
recreational services not included in its GATS schedule.  Thai classical or traditional dance, Thai music and Muay Thai kickboxing have been specifi ed in entertainment services and sporting services. 
104. Japan has undertaken commitments a number of transport service sub-sectors, for which it has 
no GATS commitments.
31  In particular, it has made full commitments in rental of vessels with crew, 
maritime agency services, and rental of commercial ve hicles with operators.  In international maritime 
transport services, a sub-sector fully unbound in its  GATS schedule across the four modes, Japan has 
made commitments albeit subject to nationa lity requirements, in modes 3 and 4.  
105. In other services not included elsewhere, it has added Thai spa services excluding medical 
related services by opening them fully except in m ode 1 due to the lack of technical feasibility. 
106. Table IV.2 below summarizes Japan's specific commitments under Annex 5 of the Agreement 
and compares them with its GATS schedule excl uding mode 4 commitments.  Improvements in its 
existing GATS commitments are mainly represented by new sub-sectors of services (see paragraphs 94-105 for a detailed description of the changes).  Compared to the GATS, Japan has 
undertaken new commitments in areas such as i) posta l/courier services;  ii) space services;  and iii) 
Thai spa services, sub-sectors for which it has no GATS commitments.  
Table IV.2 
Japan: comparison between the GATS and Agreement specific commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Improved 
B. Computer and related services  √ Improved 
C. Research and development √ Improved 
D. Real estate √ Improved 
E. Rental/Leasing services without operators √ Improved 
F. Other √ Improved 
2. COMMUNICATION SERVICES   
A. Postal - New 
B. Courier - New 
C. Telecommunication  √ Improved 
D. Audiovisual √ Improved 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES √ Improved 
4. DISTRIBUTION SERVICES √ Improved 
5. EDUCATION SERVICES √ Improved 
6. ENVIRONMENTAL SERVICES √ Improved 
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services √ Improved 
B. Banking and other financial services √ Improved 
8. HEALTH RELATED AND SOCIAL SERVICES √ Improved 
9. TOURISM AND TRAVEL RELATED SERVICES   
                                                      
31 Compared to its GATS schedule, the following CPC sectors have b een added to the bracketed sub-
sectors: (maritime transport services) rental of vessels with crew excluding vessels flying the Japanese flag;  
(maritime auxiliary transport services) maintenance and re pair of vessels;  pilotage services;  maritime cargo 
handling services;  container station and depot services ;  maritime freight forwarding services;  (internal 
waterways transport) maintenance and repair of vessels;  (space transport);  (rail tr ansport services) passenger 
transportation;  freight tr ansportation;  pushing and towing services ;  supporting services for rail transport 
services;  (road transport services) passenger transportati on;  rental of commercial vehicles with operator;  
supporting services for road transport services;  (pipeline transport) transportation of fuels;  (services auxiliary 
to all modes of transport) cargo-handling services;  storage and warehouse services relating to petroleum and 
petroleum products;  freight transport agency services;  and customs clearance agent services related to Japanese 
customs. WT/REG235/1 
Page 36 
 
 
  Sectors GATS FTA 
A. Hotels and restaurants √ Improved 
B. Travel agencies and tour operators √ Improved 
C. Tourist guides √ Improved 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES √ Improved 
11. TRANSPORT SERVICES   
A. Maritime √ Improved 
B. Internal waterways √ Improved 
C. Air  √ Improved 
D. Space - New 
E. Rail  √ Improved 
F. Road √ Improved 
G. Pipeline √ Improved 
H. Services auxiliary to all modes of transport √ Improved 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - New 
Note: 
√: Commitments in the GATS. 
-: No commitments either under the GATS or the Agreement. 
Improved: Improved commitments made under the Agreement compared to those under the GATS. 
New: New commitments made under the Agreement. 
 
Source :  Japan’s Schedule of Specific Commitments under the GATS (S/DCS/W/JPN) and Anne x under the Agreement.  
The comparison only concerns market access and na tional treatment for mode s 1-3 and not mode 4. 
 
2. Thailand 
(a) Horizontal commitments 
107. Thailand's horizontal commitments under mode 3 are along the lines of its GATS 
commitments, with some improvement under nati onal treatment.  Its mode 4 commitments cover 
intra-corporate transferees and natural persons, like in the GATS.  The commitments for natural 
persons specifically lists nine sub-sectors for which Thailand is bound to provide temporary access 
and stay for Japanese service suppliers, compared to no such list in the GATS.32 
(b) Sector specific commitments 
108. For business services, Thailand has taken new commitments (albeit mode 3 only) in some 
sub-sectors33 for which it has no GATS commitments.  In medical services, for which it has no GATS 
commitments, Thailand allows Japanese medical doctors to accompany Japanese patients coming for 
medical treatment in Thailand subject to the approv al by its authorities.  Mode 4 commitments in 
computer and related services specify that the Thai Government could set numerical ceilings and 
specific qualification requirements.  Mode 3 limita tions on market access and national treatment were 
relaxed by increasing the foreign equity ceiling by 1% from the GATS commitment of 49% for 
                                                      
32 Consultancy services related to the installation of computer hardware;  software implementation 
services;  data processing services (excluding those pr ovided over public telecommunications network);  data 
base services (excluding those provided over public telecommunications network);  other computer services: 
software training services for staff of clients;  genera l management consulting services;  engineering services 
(except civil engineer);  hotel lodgin g services;  and restaurant services. 
33 Marketing management consulting services, hum an resources management consulting services, 
production management consulting services, public relations services, logistics consulting services, services 
related to management consulting, and maintenance and repa ir services by a Japanese enterprise established in 
Thailand relating to the maintenance and repair of household electrical appliances manufactured either in Japan 
or Thailand (for this service, some conditions are attached, inter alia , minimum capital ceiling and transfer of 
technology).  WT/REG235/1 
 Page 37 
 
 
  advertising services34;  and withdrawing foreign equity limita tions in management consulting services 
although with some conditions35. 
109. For communication services, like at the multilateral level Thailand undertakes no 
commitments in postal and courier services.  The general conditions for te lecommunication services 
are the same as in the GATS except that the limitatio n on the number of foreign shareholders has been 
abolished.  Under mode 3 for some telecommunication services36, the ceilings on foreign equity and 
shareholders have been lowered to 25%, compared  to 40% in the GATS.  In addition, the build-
operate-transfer obligation for telecommunicatio n services companies does not appear in the 
Agreement.   
110. Under distribution services, Thailand added wholesale trade services and retailing services 
albeit mode 3 commitments only.  The commitments are limited to: i) products manufactured by a 
Japanese enterprise or by its group companies in Thailand under the same  brand;  or ii) automobiles 
manufactured in Japan by its group companies unde r the same brand.  Except for distilled liquor 
distribution, there is no limitation on the number of foreign shareholders, and maximum foreign 
equity of up to 75% is allowed as long as the loan to capital ratio of 3:1 or lower is maintained. 
111. In education services, Thailand has taken new commitments in higher education and foreign 
language tuition services.  For the latter services,  modes 2 and 3 are fully liberalized, whereas for 
higher education services, foreign equity of up to  49% is allowed subject to Thai nationality 
requirements for at least half of the Members of  the University Council and the service supplier's 
compliance with relevant domestic laws.  For bot h services, mode 4 is liberalized under certain 
conditions.  The same commitments under mode 4 ha ve also been undertaken for international and 
national school education services, technical a nd vocational education services, and professional 
and/or short courses education services, in  contrast with unbound commitments in the GATS 
schedule. 
112. For tourism and travel related services, the lim it on foreign equity participation has been 
increased to 60% (from 49% in the GATS) in hotel lodgi ng and restaurant services.  In addition, mode 
3 limitations on the number of foreign shareholders have been abolished in catering services.  Hotel 
management services, in which it has GATS comm itments, do not appear under the Agreement. 
113. For transport services, under the Agreement Thailand has taken new commitments in 
maritime cargo handling and agency services (full commitments in modes 2 and 3), and port and 
waterway operation services, excluding cargo handlin g (commitments in modes 2 and 3 under market 
access only). 
114. There are no changes in commitments in constr uction, environment, finance, sporting and 
other recreation, and recreation park and beach servi ces.  Like in the GATS, Thailand has undertaken 
no commitments in health-related and social services. 
115. Table IV.3 below summarizes Thailand's sp ecific commitments under Annex 5 of the 
Agreement and compares them with its GATS schedule excluding mode 4 commitments.  Improvements in its existing GATS commitments are mainly represented by new sub-sectors of 
                                                     
 
34 The foreign equity ceiling for investment is allowed as long as a loan to capital ratio of 3:1 or lower 
is maintained both under market access and national treatm ent;  and there is no limi tation on the number of 
foreign shareholder under market access. 
35 The foreign equity ceiling for investment is up to 100 per cent as long as the investor/service supplier 
which is an enterprise of Japan is registered as a registered ordinary partnership, limited partnership or limited 
liability company in Thailand;  and a loan to capital ratio of 3:1 or lower is maintained. 
36 Data base access services, on-line information and/or data processing  services, videotext, 
teleconference, and domestic leased circuits. WT/REG235/1 
Page 38 
 
 
  services in addition to the relaxation of mode 3 li mitations in some services (see paragraphs 108-113 
for a detailed description of the changes).  Like in the GATS, Thailand took no specific commitments 
in areas such as i) research and development servic es;  ii) real estate services;  iii) postal/courier 
services;  iv) health related and social services;  v) tourist guides services;  vi) internal waterways 
services;  vii) space services;  and viii)  pipeline services.  
Table IV.3 
Thailand: comparison between the GATS and Agreement specific  commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Improved 
B. Computer and related services  √ Additional limitations on mode 4  
C. Research and development - - 
D. Real estate - - 
E. Rental/Leasing services without operators √ Same 
F. Other √ Improved 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - - 
C. Telecommunication  √ Improved/Backwards 
D. Audiovisual √ Same 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES √ Same 
4. DISTRIBUTION SERVICES √ Improved 
5. EDUCATION SERVICES √ Improved 
6. ENVIRONMENTAL SERVICES √ Same 
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services √ Same 
B. Banking and other financial services √ Same 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants √ Improved 
B. Travel agencies and tour operators √ Same 
C. Tourist guides - - 
D. Other √ Not listed 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES √ Same 
11. TRANSPORT SERVICES   
A. Maritime √ Improved 
B. Internal waterways - - 
C. Air  √ Same 
D. Space - - 
E. Rail  √ Same 
F. Road √ Same 
G. Pipeline - - 
H. Services auxiliary to all modes of transport √ Same 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - - 
Note: 
√: Commitments in the GATS. 
-: No commitments either under the GATS or the Agreement. Backwards: Backwards commitments made under the Agreement compared to those under the GATS. 
Improved: Improved commitments made under the Agreement compared to those under the GATS. 
Not listed: Committed in the GATS, but not listed under the Agreement. Same: Same commitments made under th e Agreement as those under the GATS. 
 
Source :  Thailand’s Schedule of Specifi c Commitments under the GATS (S/DCS /W/THA/Rev.1) and Annex under the 
Agreement.  The comparison only concerns market access and national treatment for m odes 1-3 and not mode 4. 
  WT/REG235/1 
 Page 39 
 
 
  E. REGULATORY PROVISIONS ON TRADE IN SERVICES  
1. Domestic regulation 
116. Article 80 on domestic regulation is based on Article VI of the GATS.  The provision further 
governs not only sectors in which the Parties have undertaken specific commitments, but also sectors 
not subject to specific commitments, for which the Pa rties shall endeavour to ensure to the extent 
possible that licensing and qualification requirements and technical standards are in conformity with 
the criteria in Article VI of the GATS (Article 80 .6).  In addition, in sectors where a Party has 
undertaken specific commitments subject to any term s, limitations, conditions or qualifications, the 
Party shall not apply licensing and qualification requi rements and technical standards that nullify or 
impair such specific commitments. (Article 80.5). 
2. Recognition 
117. Article 81 on mutual recognition is based on Artic le VII.1 of the GATS.  It authorizes a Party 
to recognize the education or experience obtained,  requirements met, or licenses or certifications 
granted, in whole or in part (compared to no indicatio n of such scope in the GATS), in the other Party.  
Recognition may be achieved through harmonizati on or based on an agreement or arrangement 
between the Parties or may be accorded 'unilate rally' ('autonomously' in the GATS).  Concerning 
recognition granted by a Party to a non-Party, adequate opportunity shall be given to the other Party to   
demonstrate its qualification for such recognition (Article 81.3). 
3. Monopolies and exclusive service suppliers 
118. Article 83 of the Agreement governing monopo lies and exclusive service suppliers captures 
the key elements of Article VIII of the GATS. 
4. Safeguard measures 
119. Article 84 provides that the Parties shall consult with a view to starting negotiations on 
emergency safeguard measures on trade in services no la ter than six months after the entry into force 
of the Agreement.  According to the Parties, consultations on emerge ncy safeguard measures 
commenced at the first meeting of th e Sub-Committee on Trade in Services on 28th April 2008. 
120. If serious balance of payments and external fina ncial difficulties or threat thereof arise, the 
Parties may adopt or maintain restrictions on trade in services, including payments or transfers for transactions (Article 86).  In general, the Artic le is based on Article XII of the GATS, but the 
Agreement does not explicitly recognize particular pressures on the balance of payments in the 
process of economic development (compared to the reference in Article XII.1 of the GATS).  The 
Article requires the restrictions to be non-discrim inatory both on a national treatment and MFN basis 
(Articles 86.2.(a) and (b)). 
5. Further negotiations on trade in services 
121. Article 89 instructs the Parties to negotiate fu rther, aiming at progressively higher levels of 
liberalization through a review of the scope of any commitments, terms, limitations, conditions, 
qualifications or undertakings in their schedules of specific commitments.  The negotiations are 
categorized into two groups based on different timelines. 
122. Within five years after the entry into force of the Agreement, the Parties shall undertake a 
general review of all services sectors including trans port, tourism, financial and telecommunications 
services.  The general review includes the scope of  commitments (marked as "SS" in the schedules of WT/REG235/1 
Page 40 
 
 
  specific commitments) (Article 89.1).  Separate fro m the general review, within three years from the 
entry into force of the Agreement,  the Parties shall review maintenance and repair, wholesale trade 
and retailing, and rental services. (Article 89.2).  The Parties indicate that there is no update as of March 2011. 
F. R
EGULATORY PROVISI ONS ON INVESTMENT  
1. Performance requirements 
123. Unless otherwise specified in Part 1 of Annex 6, the Parties may impose or enforce any 
performance requirements as a condition for: i) invest ment activities in their Areas (Article 97.1), and 
ii) granting or continuing to grant an advant age in connection with the investment activities 
(Article 97.2).  The Agreement shall not affect th e rights and obligations of the Parties under the 
WTO Agreement on Trade-Related Investment Measu res (Article 97.3).  Th e Parties shall conduct 
further general review negotiations on thei r commitments under the performance requirements 
provision in all none-services sectors within five y ears after the entry into force of the Agreement 
(Article 114). 
2. Dispute settlement on investment 
124. Article 106 (composed of 15 provisions) govern s disputes arising between a Party and an 
investor of the other Party concerning a claim that the investor has incurred loss or damage due to, or 
arising out of, an alleged breach of an obligation un der the Chapter by the Party (Article 106.1).  The 
Article exempts investment disputes: i) arising from events which occurred, or to investment disputes 
which had been settled before the entry into force of the Agreement;  ii) on obligations under Article 
97 (performance requirements);  and iii) on measur es other than those relating to the management, 
conduct, operation, maintenance, use, enjoyment, and sale or other disposition of investments.  The 
measures under (iii) are those relating to the estab lishment, acquisition and e xpansion of investment; 
disputes relating to these activities will be governed by the state-to-state dispute mechanism.  As for 
Article 106, only post-establishment issues will be covered. 
V. GENERAL PROVISIONS OF THE AGREEMENT 
A. TRANSPARENCY  
125. Each Party shall promptly publish or make  publicly available its laws, regulations, 
administrative procedures and rulings and judicial d ecisions of general application as well as, to the 
extent possible international agreements to which th e Party is a party, which affect the implementation 
and operation of the Agreement (Article 3).  Except  urgent and insignificant situations, each Party 
shall, in accordance with its laws and regulations, endeavour to provide an opportunity for the public 
to comment before the adoption, amendment or repeal of regulations of general application that affect 
any matter covered by the Agreement (Article 4) .  When the authorities adopt measures imposing 
obligations on or restricting the rights of a pe rson, the person shall be given a reasonable notice 
including a description of the measur e and an opportunity to present facts and arguments (Article 5).  
Chapters 7 on trade in services, 8 on investment and 10 on intellectual property contain relevant transparency provisions (Articles 82, 101 and 127). 
B. E
XCEPTIONS  
126. General and security exceptions for goods and ser vices are maintained by incorporating into 
the Agreement mutatis mutandis  Articles XX and XXI of the GATT 1994 for goods and Articles XIV  WT/REG235/1 
 Page 41 
 
 
  and XIV bis of the GATS for services (Article 10).37  The Agreement also includes exceptions for 
taxation.  However, Articles 3 (t ransparency) and 8 (confidential in formation) of the Agreement are 
applicable to taxation measures (Article 9). 
C. ACCESSION AND TERMINATION  
127. There are no accession provisions in the Agre ement.  Either Party may terminate the 
Agreement but first notify the other Party in  writing one year in advance (Article 173). 
D. INSTITUTIONAL FRAMEWORK  
128. A joint committee composed of Government re presentatives from the Parties was established 
to, inter alia , review the implementation and operation of  the Agreement;  consider and recommend 
any amendments to the Agreement;  and supervi se and coordinate the work of Sub-Committees 
established under the Agreement.  The Joint Commi ttee is co-chaired by Japanese and Thai officials 
at the level of deputy Minister or  higher and deputy permanent secreta ry or higher, respectively unless 
the Parties agree on the Ministerial level (Article 13.3).  The Parties have established a contact point 
to facilitate communications (Article 14).  Provisions are also made for review and appeal (Article 6) 
and the disclosure of confiden tial information (Article 8). 
129. Pursuant to Article 12 of the Agreement, a sep arate Implementing Agreement was concluded.  
It mainly elaborates cooperation in areas such as, ag riculture, forestry and fisheries;  education and 
human resource development;  financial services, and tourism.  
Box V.1:  Composition of  the Implementing Agreement 
Preamble 
Chapter 1:  Customs Procedures 
Chapter 2:  Paperless Trading 
Chapter 3:  Government Procurement 
Chapter 4:  Competition 
Chapter 5:  Cooperation in the field of Agriculture, Forestry and Fisheries 
Chapter 6:  Cooperation in the field of Education and Human Resource Development 
Chapter 7:  Cooperation in the field of Enhancement of Business Environment 
Chapter 8:  Cooperation in the field of Financial Services 
Chapter 9:  Cooperation in the field of Information and Communication Technology 
Chapter 10:  Cooperation in the field of Sc ience, Technology, Energy and Environment 
Chapter 11:  Cooperation in the field of Small and Medium Enterprises 
Chapter 12:  Cooperation in the field of Tourism 
Chapter 13:  Cooperation in the field of Trade and Investment Promotion 
Chapter 14:  Dispute Settlement   
Chapter 15:  Final Provisions  
 
Source : The Implementing Agreement between Japan and Thailand. 
 
E. DISPUTE SETTLEMENT  
130. Chapter 14 sets out procedures on dispute settle ment relating to the interpretation or 
application of the Agreement.  The Chapter applies mutatis mutandis  to dispute settlement concerning 
Chapters 1-3 (Customs Procedures, Paperless Trading, and Government Procurement, respectively) 
                                                      
37 For the purposes of trade in goods;  rules of origin;  customs procedures;  and investment (except 
Article 103), and for the purposes of trade in services ;  investment (except Article 103);  and movement of 
natural persons. WT/REG235/1 
Page 42 
 
 
  and 15 (Final Provisions) of the Implementing Agreement (Article 57 of the Implementing 
Agreement).  Articles 159.2 and 159 .3 provide a forum election clause for matters falling under both 
the Agreement and any other interna tional agreements to which both Parties are party.  Once a forum 
has been chose to settle a dispute, the forum shall be used to the ex clusion of the others (exclusive 
forum clause).  However, the clause is not applicab le if substantially separate and distinct rights or 
obligations under different interna tional agreements are in dispute, and when the Parties agree to use 
more than one dispute settlement procedure for a pa rticular (individual) dispute (Articles 159.3 and 
159.4). 
131. A Party may request consultations in writi ng with the other Party on any matter on the 
interpretation or application of the Agreement.  Th e other Party shall reply promptly to the request 
and the Parties shall enter into consultations within  30 days after the date of receipt of the request 
(Article 160).  If the Party complained against does not enter consultations within 30 days, or the 
Parties fail to resolve the dispute through consultatio ns within 60 days, after receipt of the request, the 
complaining Party may request in writing the establish ment of an arbitral tribunal (Article 162.1).  
Following the receipt of the request the tribunal must be formed within 52 days 
(Articles 162.3-162.5).   
132. The arbitral tribunal consults with the Par ties and provide opportunities for a mutually 
satisfactory resolution;  makes its award in accordance with the Agreement and applicable 
international law;  and may suggest implementati on options for the Parties (Article 163.1).  The 
tribunal may seek necessary information from the Pa rties as well as from any relevant source and may 
consult experts.  Concerning scientific or other techni cal issues raised by a Party, the arbitral tribunal 
may request advisory reports from experts.  The arb itral tribunal may, at the request of a Party or on 
its own initiative, select, in consultation with the Pa rties, no fewer than two scientific or technical 
experts, but they have no right to vote on any d ecision by the arbitral tribunal (Articles 163.2 and 
163.3). 
133. Within 20 days after the arbitral tribunal issu es an award, the Party complained against shall 
notify the complaining Party of the implementa tion period (Article 166.2).  When the Party 
complained against finds it impracticable to comply  with the award within the implementation period, 
it shall enter into consultations with the complain ing Party to find compensation that is mutually 
acceptable (Article 166.3).  If agreement cannot be r eached within 20 days after the expiry of the 
implementation period, the complaining Party may notif y the Party complained against of its intention 
to suspend the application of concessions or other obligations under the Agreement (Article 166.3).  
The complaining Party also may notify the Party compla ined against within 30 days after the date on 
which the arbitral tribunal confirms that the Party complained against has failed to comply with the 
award (Article 166.4).  The conditions for suspension s listed in Article 166.5 are similar to Article 22 
of the WTO DSU.  However, the Agreement is more  stringent than Article 22.3.(a) of the WTO DSU 
in that such suspension shall be r estricted to the same sector or se ctors to which the nullification or 
impairment relates unless it is not practicable or effe ctive to suspend the application of concessions or 
other obligations in such sector or sectors. 
134. If the Party complained against considers that  the requirements for the suspension of the 
application of concessions or other obligations unde r the Agreement by the complaining Party have 
not been met, it may request consultations with the complaining Party, and the latter shall enter into 
consultations within ten days after the receipt of the request for consultations.  In the case of failure to 
resolve the matters within 30 days after the receipt of the consultations request, the Party complained 
against may refer the matter to an arbitral tribunal (Article 166.6). 
135. The tribunal shall attempt to make its decisions , including its award, by consensus, but also 
possibly by majority vote (Article 163.7);  the award shall be final and binding on the Parties 
(Article 163.8).  The Parties may agree to terminat e the proceedings at any time by joint notification  WT/REG235/1 
 Page 43 
 
 
  to the chair of the arbitral tribunal (Article 165).  The Parties share equally th e costs of the arbitral 
tribunal (Article 167).  No particular provisions on  perishable goods are available under the Chapter.  
The steps to be taken in the process for dispute settlement are described below (Table V.1).  The 
Parties may request good offices, conciliation or medi ation, which may continue during the process of 
dispute settlement (Article 161).  
Table V.1 
Synopsis of Dispute Settlement Provisions under the Agreement 
 
F. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
136. The Agreement's relationship with other agreemen ts concluded by the Parties is defined in 
Article 11, where the Parties reaffirm their right s and obligations under the WTO Agreement or any 
other agreements to which both Parties are part ies.  The WTO Agreement prevails over this 
Agreement to the extent of any inconsistenc y between the two Agreements (Article 11.2). 
137. Table V.2 lists all other regional trade agreem ents (RTAs) notified a nd not notified to the 
GATT/WTO and in force to which Japan and Thailand are party. 
 Request for Consultations (Art.160.1)
Establishment of Arbitral Tribunals (Art.162) 
Issuance of Award (Art.163.5 and 163.6)
Notification of Implementation Period (Art.166.2)
Consultation on Compensation (Art.166.3) Referral to Arbitral Tribunal (Art.166.4)
Suspension of Concession (Art.166.5)Consultations (Art.160.2)
Consultation (Art.166.6)
Referral to Arbitral Tribunal (Art.166.6)Issuance of Award (Art.166.7)
Issuance of Award (Art.166.7)WT/REG235/1 
Page 44 
 
 
  Table V.2 
Japan and Thailand:  Participation in other RTAs (n otified and non-notified in force), as of April 2011 
GATT/WTO Notification 
Partner/ 
Agreement Date of 
entry 
into 
force Type of 
agreement Year WTO Provision 
JAPAN  
Viet Nam 01.10.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Switzerland 01.09.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Philippines 11.12.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
ASEANa 01.12.08 Goods 2009 GATT Art. XXIV 
Brunei Darussalam 31.07.08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V 
Indonesia 01.07.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Chile 03.09.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Malaysia 13.07.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Mexico 01.04.05 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Singapore 30.11.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
THAILAND  
New Zealand 01.07.05 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Australia 01.01.05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
ASEAN Agreements : a     
- ASEAN – Rep. of Korea 01.01.10 
01.05.09 Goods 
Services 2010 
2010 GATT Art. XXIV & Enabling 
Clause GATS Art. V 
- ASEAN – India 01.01.10 Goods 2010 Enabling Clause 
- ASEAN - Australia - New Zealand 01.01.10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
- ASEAN - Japan 01.12.08 Goods 2009 GATT Art. XXIV 
- ASEAN - China  01.07.07 Services 2008 GATS Art. V 
 01.07.03 Goods 2004 Enabling Clause 
- AFTA 28.01.92 Goods 1992 Enabling Clause 
Laos 20.06.91     Goods 1991    Enabling Clause 
GSTP 19.04.89     Goods 1989    Enabling Clause 
 
a  Dates of entry into force differ. 
 
AFTA: ASEAN Free Trade Area. 
GSTP: Global System of Trade Preferences.  
Source: WTO Secretariat. 
 
G. INTELLECTUAL PROPERTY RIGHTS  
138. Chapter 10 contains the relevant provisions fo r intellectual property.  The Chapter seeks to 
grant and ensure adequate, effective and non-discrim inatory protection of intellectual property and 
enforce intellectual property rights (Article 122.1).  While the objectives of the Chapter are based on 
Article 7 of the TRIPS Agreement (Article 129.1), the Agreement a dds that the Chapter should be 
interpreted and implemented in a manner supportive of  the Parties' rights to take measures to protect 
public health in accordance with the TRIPS Agre ement and the decisions by the Ministerial 
Conference or the General Council of the WTO, re lated to the TRIPS Agreement and public health 
(Article 129.2).  The Parties reaffirm that they sha ll fulfil the obligations of the TRIPS Agreement, the 
Berne Convention and Articles 1-12 and 19 of  the Paris Convention (Article 122.4).  WT/REG235/1 
 Page 45 
 
 
  139. Intellectual property is defined in Article 122.2 as: i) patents;  ii) industrial designs;  iii) 
trademarks for goods and services;  iv) copyright and related rights;  v) geographical indications;   vi) 
new varieties of plants;  vii) unfair competition;  viii) protection of undisclosed information;  and ix) 
those that are under the TRIPS Agreement or the releva nt international agreements referred to in the 
TRIPS Agreement.  National and MFN treatments are mandated with explicit reference to Articles 3-5 
of the TRIPS Agreements (Articles 124 and 125). 
140. In particular, the Parties shall ensure that a claimed invention and industrial design shall not 
be new, if it is publicly known, described in a pub lication distributed, or "made available to the public 
through telecommunication line" (applying to inventions  only, not industrial designs) in either party 
or in any non-Party before the application (Artic les 130.2 and 131.2).  The Chapter also includes a 
provision to refuse or cancel the registration of a trademark which is identical or similar to a well-
known trademark not only in either Party but also in any non-Party (Article 132.2).  As regards 
geographical indications (GI), the Parties shall exchange views on strengthening such protection 
under the Sub-Committee on Intellectual Property (Artic le 134).  According to the Parties, since the 
entry into force of the Agreement, the Sub-Comm ittee on Intellectual Property has not yet met, and a 
GI list has not been established. 
141. The Parties shall ensure that rights relating to ne w varieties of plants are adequately protected 
and endeavour to protect as many plant genera or  species as possible.  However, they may, in 
accordance with their laws and regulations, limit the scope of the plant genera or species for which a 
Party accords the rights relating to new varieties of pl ants to the nationals of the other Party to the 
genera or species for which the other Party accords th e rights to the nationals of the Party (Article 
135).  In addition, any patent application shall not be  rejected solely due to the fact that the subject 
matter claimed in the application is related to a naturally occurri ng micro-organism (Article 130.3). 38  
In an exchange of letters on 3 April 2007, the Pa rties confirmed their common understanding that the 
Article does not oblige either Party to patent  naturally occurring micro-organisms and their 
components beyond the TRIPS Agreement. 
142. Article 140.1 allows criminal remedies at least  in cases of infringement of patents, utility 
models, industrial designs, trademarks, copyrights and related rights, layout-designs of integrated 
circuits and rights relating to new varieties of pl ants, committed wilfully and on a commercial scale.  
Such scope of criminal remedies is broader compared to Article 61 of the TRIPS Agreement where 
only trademark counterfeiting or copyright piracy ar e mentioned.  As regards customs procedures for 
suspected goods infringing intellectual property righ ts, the customs authorities shall cooperate and 
exchange information to prevent trade of such goods (Article 5 of the Implementing Agreement). 
H. GOVERNMENT PROCUREMENT  
143. Chapter 11 on government procurement consis ts of two Articles on the exchange of 
information through designated contact points, and the establishment of a Sub-Committee on 
Government Procurement, respectively (Article s 145 and 146).  Article 9 of the Implementing 
Agreement invites senior officials from the releva nt Ministries of the Parties to form the Sub-
Committee.  The Agreement does not contain any details on government procurement such as 
coverage or thresholds.   Japan is a member of the WTO Agreement on Government Procurement 
(GPA), while Thailand is neither a member nor an observer of the GPA.   
                                                      
38 As the Thai Patent Act B.E. 2535 (1992) does not recognise a naturally occurring micro-organism as 
an invention, it is not patentable.  However, if the na turally occurring micro-organism in question is used and 
results in a new product, which is an invention, the new product will be patentable under Thai law.    WT/REG235/1 
Page 46 
 
 
  I. COMPETITION POLICY  
144. As indicated as one of the objectives of the Ag reement (Article 1.(h)), Chapter 12 promotes 
fair and free competition to facilitate trade and inve stment between the Partie s (Article 147).  Subject 
to the availability of the Partie s' respective resources, they co operate to prohibit anti-competitive 
activities through the fair implementation of admini strative and judicial procedures (Articles 148 and 
150). 
145. Chapter 4 of the Implementing Agreement contains 11 provisions, inter alia , stipulating 
notification, exchange of inform ation and coordination, consultatio n and review of cooperation on the 
Chapter (Articles 12, 13, 16, and 17 of the Implemen ting Agreement).  In particular, the Parties shall 
enhance further cooperation concerning notification,  cooperation in and coor dination of enforcement 
activities and positive and negative comities (Article 17 of the Implementing Agreement).  The Parties 
shall apply their competition laws and regulati ons in a manner which does not discriminate on the 
basis of their nationalities (Article 149). 
146. This Chapter is not applicable to Article 8 (confidential information)39 and Chapter 14 
(dispute settlement)40 of the Agreement (Article 151). 
J. ENVIRONMENT  
147. The Parties recognize it is inappropriate to  encourage investment by relaxing their 
environmental measures.  Therefore, they shall no t waive or derogate from environmental measures to 
boost investment activities in their territories (Article  111).  With respect to Article 111, "investment 
activities" are widened to include those activities by investors of non-Parties, in which case the term 
"investments" also includes those by investors of non-Parties (Article 91. (i). Note). 
 
                                                      
39 Confidential information on competition policy in re lation to Chapter 12 is dealt with in  accordance 
with Article 18 (treatment of confidential in formation) of the Implementing Agreement. 
40 According to the Parties, any matter arising in  connection with Chapter 12 is settled through 
consultations as in Article 16 (consultation) of the Implementing Agreement.  WT/REG235/1 
 Page 47 
 
 
  ANNEX I 
 
Indicators of tariff and trade liberalization under the Agreement  
 
 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the MFN rates applied by Japan and Th ailand is shown in Table AI.1 (Japan) and AI.2 
(Thailand) below, by total products, agricu ltural products and non-agricultural products. 
Table AI.1 
Japan: Indicators of MFN tariff rates and pr eferential rates for imports from Thailand 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2007 4.8 8.3 41.7 11.2 15.8 25.8 3.4 6.2 45.5 
Thailand 2007 2.2 14.0 82.2 9.6 18.0 41.3 0.6 8.3 92.1 
 2008 2.1 13.5 82.2 9.3 17.4 41.3 0.6 7.8 92.1 
 2009 2.1 13.0 82.2 9.1 16.9 41.3 0.6 7.3 92.1 
 2010 2.0 12.5 82.2 8.8 16.4 41.4 0.5 6.9 92.2 
 2011 1.9 12.0 82.2 8.5 15.8 41.4 0.5 6.4 92.2 
 2012 1.8 12.1 83.2 8.2 15.7 42.7 0.5 6.5 92.8 
 2013 1.7 11.6 83.2 7.9 15.2 42.7 0.4 6.1 92.8 
 2014 1.7 14.0 86.2 7.7 17.0 49.0 0.4 8.2 95.0 
 2015 1.6 13.7 86.2 7.5 16.6 49.0 0.4 7.9 95.0 
 2016 1.6 13.3 86.2 7.3 16.2 49.0 0.4 7.6 95.0 
 2017 1.5 16.7 89.0 7.1 19.7 57.3 0.4 10.3 96.5 
 2018 1.5 16.5 89.0 7.0 19.4 57.3 0.4 10.3 96.5 
 2019 1.5 16.3 89.0 6.9 19.1 57.3 0.4 10.3 96.5 
 2020 1.5 16.1 89.0 6.8 18.8 57.3 0.4 10.3 96.5 
 2021 1.5 16.0 89.0 6.7 18.6 57.3 0.4 10.3 96.5 
 2022 1.4 18.4 90.2 6.6 23.1 64.0 0.4 10.3 96.5 
 
a WTO Definition. 
Note:  For tariff lines subject to TRQs only the out-of-quota duty is incl uded in the tariff-related 
calculations;  lines with specific duties  and the non ad valorem  component of lines with 
compound and alternate rates are excluded from the calculations. 
 Based on the HS 2002 nomenclature. 
 
Source:  WTO Secretariat estimates base d on data provided by Japan. 
 
2. Japan's average applied MFN rate in 2007 w as 4.8%.  Tariffs on agricultural products are 
higher than for non-agricultural products with the av erage applied MFN tariff on agricultural products 
roughly three times higher than that applied to  non-agricultural products.  Duty-free tariff lines 
account for 41.7% of all tariff lines.  As a result of the Agreement, Thai exporters enjoyed an absolute 
margin of preference of 1.6% for agricultural goo ds, vis-à-vis the prevailing average MFN tariff in 
2007, and 2.8% for non-agricultural goods.  Overall, Thai exporters enjoyed an absolute margin of 
preference of 2.6% vis-à-vis the prevailing averag e applied MFN tariff;  the share of duty-free lines 
applicable to imports from Thailand also rose from 41.7% on an MFN basis to 82.2% in 2007.  By 
2017, after ten years of implementation, 89% of a ll tariff lines are due to become duty-free for Thai 
exporters to Japan, of which 57.3% for agriculture  and 96.5% for non-agriculture.  By the end of 
implementation in 2022, the share of duty-free lines fo r imports from Thailand is expected to rise to 
90.2% overall, with 96.5% of non-agricultural prod ucts and 64% of agricultural products becoming 
duty-free. 
 
 WT/REG235/1 
Page 48 
 
 
  Table AI.2 
Thailand: Indicators of MFN tariff rates a nd preferential rates for imports from Japan 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2007 10.8 13.6 20.7 24.4 26.0 5.7 8.7 11.3 23.1 
Japan 2007 6.6 13.5 50.5 17.8 25.7 29.0 4.9 10.6 54.0 
 2008 5.7 11.6 50.5 15.3 22.1 29.0 4.2 9.1 54.0 
 2009 4.6 9.9 53.1 12.8 19.7 33.0 3.4 7.7 56.4 
 2010 3.6 10.0 63.1 10.5 18.2 39.9 2.6 7.8 66.8 
 2011 2.9 8.1 63.5 8.6 15.1 40.5 2.1 6.3 67.2 
 2012 2.2 12.6 81.7 6.7 15.3 52.7 1.5 11.2 86.4 
 2013 1.9 10.9 82.2 5.4 12.5 53.5 1.3 10.0 86.8 
 2014 1.5 9.9 83.9 4.1 10.4 56.8 1.1 9.7 88.3 
 2015 1.1 11.5 90.1 2.9 28.5 87.7 0.8 8.6 90.5 
 2016 0.8 13.1 93.5 2.7 26.6 87.7 0.5 9.2 94.4 
 2017 0.7 29.3 97.3 2.5 39.1 91.5 0.4 23.7 98.2 
 
a  WTO Definition. 
 
Note For tariff lines subject to TRQs only the out-of-quota duty  is included in the tariff-related calculations; for the calcul ation of 
averages, specific rates are excluded and the ad valorem  part of alternate rates are included 
 Based on the HS 2002 nomenclature.  
 
Source : WTO Secretariat estimates base d on data provided by Thailand. 
 
3. Thailand's average applied MFN rate in 2007 w as 10.8%.  Tariffs on agricultural products are 
higher than for non-agricultural products with the av erage applied MFN tariff on agricultural products 
roughly three times higher than that applied to  non-agricultural products.  Duty-free tariff lines 
account for 20.7% of all tariff lines.  As a result of the Agreement, Japanese exporters enjoyed an 
absolute margin of preference of 6.6% for agri cultural goods, vis-à-vis the prevailing average MFN 
tariff in 2007, and 3.8% for non-agricultural prod ucts.  Overall, Japanese exporters enjoyed an 
absolute margin of preference of 4.2% vis-à-vis th e prevailing average applied MFN tariff;  the share 
of duty-free lines applicable to imports from Japan  also rose from 20.7% on an MFN basis to 50.5% 
in 2007.  By the end of implementation after 10 y ears in 2017, 97.3% of all tariff lines are due to 
become duty-free for Japanese exporters to Thailand,  of which 91.5% for agricultural products and 
98.2% for non-agricultural products. 
Table AI.3 –Japan: Market access opportunities under the Agreement  for Thailand's top 25 exports 
Access Conditions to Japan's import markets  
MFN (2007)  Thailand's top export products in 2004-2006  
No. of tariff lines  Duty-free in  
HS number and description of 
the product  Share in global  
exports MFN 
average  Duty-
free Dutiable 2007 2012 
Remain 
Dutiable  
847170 Storage units 4.6 0.0 5     
854229 Other 3.7 0.0 2     
847330 Parts and 
accessories of the 
machines of heading 84.71 3.1 0.0 3     
870421 g.v.w. not exceeding 
5 tonnes 2.2 0.0 1     
100630 Semi-milled or 
wholly milled rice, 
whether or not 
polished or glazed 1.9 0.0 1 1   1 
400129 Other 1.6 0.0 1     
271019 Other 1.5 2.2 9 22 11 11  
847160 Input or output 
units, whether or not 
containing storage units in the same 1.4 0.0 4      WT/REG235/1 
 Page 49 
 
 
  Access Conditions to Japan's import markets  
MFN (2007)  Thailand's top export products in 2004-2006  
No. of tariff lines  Duty-free in  
HS number and description of 
the product  Share in global  
exports MFN 
average  Duty-
free Dutiable 2007 2012 
Remain 
Dutiable  
housing 
852812 Colour 1.4 0.0 5     
400121 Smoked sheets 1.3 0.0 1     
270900 Petroleum oils and 
oils obtained from bituminous minerals, crude. 1.1 0.0 2     
853400 Printed circuits. 1.1 0.0 1     
160414 Tunas, skipjack and 
bonito (Sarda spp.) 1.0 9.6  4  4  
271011 Light oils and 
preparations 1.0 1.3 5 11 4 7  
841510 Window or wall 
types, self-contained or "split-system" 1.0 0.0 2     
870899 Other 1.0 0.0 2     
711319 Of other precious 
metal, whether or 
not plated or clad with precious metal 0.9 5.3  3 3   
854221 Digital 0.9 0.0 15     
870323 Of a cylinder 
capacity exceeding 
1,500 cc but not 
exceeding 3,000 cc 0.9 0.0 1     
880390 Other 0.9 0.0 1     
030613 Shrimps and prawns 0.8 1.0  1 1   
160520 Shrimps and prawns 0.8 5.1  4 3  1 
400110 Natural rubber latex, 
whether or not pre-vulcanized 0.8 0.0 1     
847190 Other 0.8 0.0 1     
390740 Polycarbonates 0.7 1.4 1 1 1   
         
Total of above  35.5  64 47 23 22 2 
 
Source:  WTO estimates based on data provided by Japan and UNSD, Comtrade data. 
 
4. Table AI.3 shows the market access conditions in Japan for Thailand's top 25 exports, which 
in 2004-2006 accounted for 35.5% of  its global exports.  Sixty-four tariff lines were already duty-free 
on an MFN basis.  Out of 47 tariff lines which were dutiable, 23 lines became duty-free upon the 
entry into force of the Agreement;  a further 22 lin es are to become duty-free in 2012.  The two tariff 
lines which remain dutiable among Thailand's top 25 exports are rice and shrimps. 
Table AI.4 –Thailand: Market ac cess opportunities under the Agr eement for Japan's top 25 exports 
Access Conditions to Thailand's import markets  
MFN (2007)  Japan's top export products in 2004-2006  No. of 
tariff lines  Duty-free in  
HS number and description of the product  Share in 
global exports MFN 
average  
Duty-
free 
Dutiable 2007 2009 2010 2012 
Remain Dutiable  
870323 Of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 
cc 5.8 56.7 3 3 1    2 
870324 Of a cylinder capacity exceeding 
3,000 cc 4.4 56.7 3 3 1    2 
854221 Digital 3.4 0.0 1       
847330 Parts and accessories of the 
machines of heading 84.71 2.5 0.0 1       WT/REG235/1 
Page 50 
 
 
  Access Conditions to Thailand's import markets  
MFN (2007)  Japan's top export products in 2004-2006  No. of 
tariff lines  Duty-free in  
HS number and description of the product  Share in 
global exports MFN 
average  
Duty-
free 
Dutiable 2007 2009 2010 2012 
Remain Dutiable  
847989 Other 1.8 1.0 1 1 1     
852540 Still image video cameras and 
other video camera recorders; 
digital cameras 1.8 3.0 1 1   1   
852990 Other 1.8 4.0 3 3 2 1    
870322 Of a cylinder capacity exceeding 
1,000 cc but not exceeding 1,500 
cc 1.6 56.7 3 3 1    2 
870840 Gear boxes (transmissions) 1.4 30.0 1 1     1 
870899 Other 1.3 30.0 1 1     1 
890190 Other vessels for the transport of 
goods and other vessels for the 
transport of both persons and 
goods 1.2 10.0 1 1   1   
842952 Machinery with a 360° revolving 
superstructure 0.9 5.0 1 1    1  
854229 Other 0.9 0.0 1       
870332 Of a cylinder capacity exceeding 
1,500 cc but not exceeding 2,500 cc 0.9 56.7 3 3 1    2 
840991 Suitable for use solely or 
principally with spark-ignition 
internal combustion piston 
engines 0.8 10.0 1 1     1 
854140 Photosensitive semiconductor 
devices, including photovoltaic cells whether or not assembled in 
modules or made up into panels; 
light emitting diodes 0.8 0.0 1       
890120 Tankers 0.8 1.0 1 1 1     
870333 Of a cylinder capacity exceeding 
2,500 cc 0.7 56.7 3 3 1    2 
847160 Input or output units, whether or 
not containing storage units in the same housing 0.6 0.0 1       
870422 g.v.w. exceeding 5 tonnes but 
not exceeding 20 tonnes 0.6 40.0 1 1     1 
870829 Other 0.6 30.0 1 1     1 
271019 Other 0.5 6.7 5 4 3 1    
381800 Chemical elements doped for use 
in electronics, in the form of 
discs, wafers or similar forms; 
chemical compounds doped for use in electronics. 0.5 0.0 1       
853400 Printed circuits. 0.5 0.0 1       
853690 Other apparatus 0.5 10.0 1 1   1   
           
Total of above  35.5  41 33 12 2 3 1 15 
 
Source:  WTO estimates based on data provided by Thailand and UNSD, Comtrade data. 
 
5. Table AI.4 shows the market access conditions  in Thailand for Japanese top 25 exports, 
which in 2004-2006 accounted for 35.5% of its gl obal exports.  Forty-one tariff lines (at the 
HS 7-digit level) were already duty-free on an MFN basis.  Out of 33 tariff lines which were dutiable, 
12 lines became duty-free upon the entry into force of the Agreement;  a further two, three, and one 
lines became or is to become duty-free in 2009-2010,  and 2012, respectively.  The 15 lines remaining 
dutiable after the implementation period are relating to mainly HS chapter 87 (vehicles other than 
railway or tramway rolling-stock, and parts and acce ssories thereof), but also HS chapter 84 (nuclear 
reactors, boilers, machinery and mechanical appliances;  parts thereof).  WT/REG235/1 
 Page 51 
 
 
  ANNEX II 
 
Tariff-Rate Quotas under the Agreement  
 
 
1. Japan maintains tariff-rate quotas (TRQs) in so me agricultural products (six tariff lines at 
9-digit) while Thailand has TRQs in iron and steel products (six tariff lines at 7-digit), the details of 
which are shown below. 
Table AII.1 
Japan: Tariff-rate quotas for some agricultural products originating in Thailand  
TRQ from the date of entry into force 
(1 November 2007) except "cane molasses" which are  
subject to TRQs from 1 April 2009  Liberalization scheme  
Duty  HS Code (description)  
Quantity  In-quota Out of quota Quantity Duty 
Fresh bananas 
080300100 
4,000 metric tonnes (MT) in 
2007 and increasing 
annually to 8,000 MT in 
2011 onwards  0 either 10% 
(MFN: 20%, 
imported from 
1 April to 30 
September) or 
20% (MFN: 
25%, imported 
from 1 October 
to 31 March) None 
Fresh pineapples 
080430010 100 MT in 2007 and 
increasing annually to 300 
MT in 2011 onwards 0 MFN duty 
(2007) (17%) None 
Preparations of meat 
160241090;  160249290 
 1,200MT for each year  16% MFN duty 
(2007) (20%) 
 None 
Cane molasses     
170310099 
4,000 MT in 2009 and 5,000 
MT in 2010 onwards ¥7.65/kg MFN duty 
(2007)  
(¥15.3/kg) 
 None 
Esterified starches and 
other starch derivatives 
350510100 
  
 
 200,000 MT for each year  0 MFN duty 
(2007) 
(6.8%)  None 
Note: The operation of the TRQs is based on Japan's fiscal year (April - March). 
Source: Section 1, Part 2, Annex 1 of the Economic Pa rtnership Agreement betw een Japan and Thailand. WT/REG235/1 
Page 52 
 
 
  Table AII.2 
Thailand: Tariff-rate quotas for iron and steel products  originating in Japan  
TRQ from the date of entry into force  
(1 November 2007)  Liberalization scheme  
Duty  HS Code (description)  
Quantity  In-quota Out of quota Quantity Duty 
Hot rolled coil, pickled 
7208250;  7208260;  and 
7208270 440,000 MT in 
2007 and 2010;  
455,000 MT in 
2008;  and 
470,000 MT in 
2009 
 0 
 5% until 2016 Elimination in 2017 
IF steel 
7208370;  7208380;  and 
7208390 
230,000 MT in 
2007;  176,500 
MT in 2008-2009; 
and 191,500 MT 
in 2010  0 5% until 2016 Elimination in 2017 
Hot rolled coil for cold 
rolled for automotive use 
7208370; 7208380;  and 
7208390 (when Thailand 
imports products under these 
HS codes from Japan for use in manufacturing motor vehicles or parts and accessories of motor 
vehicles, and by 
manufacturers of motor vehicles or parts and accessories of motor vehicles) 280,000 MT in 
2007;  307,000 
MT in 2008-2009;  
and 257,000 MT 
in 2010   0 5% until 2016 Elimination in 2017 
Note: The operation of the TRQs is based on Th ailand's calendar year (J anuary - December). 
Source: Section 1, Part 3, Annex 1 of the Economic Pa rtnership Agreement betw een Japan and Thailand. 
 
 
__________