WORLD TRADE  
ORGANIZATION  WT/TPR/M/243 
18 March 2011 
 (11-1305) 
Trade Policy Review Body 
15 and 17 February 2011  
 
 
 
TRADE POLICY REVIEW 
 
JAPAN 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Bozkurt Aran (Turkey) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF JAPAN 4 
III. STATEMENT BY THE DISCUSSANT 7 
IV. STATEMENTS BY MEMBERS 9 V. REPLIES BY THE REPRESENTATIVE OF JAPAN AND ADDITIONAL 
 COMMENTS  40 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 47 
 
 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Japan are 
reproduced in document WT/TPR/M/243/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/243 
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  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The tenth Trade Policy Review of Japan was held on 15 and 17 February 2011.  
The Chairperson H.E. Mr. Bozkurt Aran (Turkey)  welcomed the delegation of Japan headed by 
Mr. Takehiro Kagawa, Deputy Director-General, Econom ic Bureau, Ministry of Foreign Affairs, and 
the discussant, H.E. Mr. Steffen Smidt (Denmark).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Japan was contained in document WT/TPR/G/243 and 
that of the WTO Secretariat in WT/TPR/S/243. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of Japan:  Mexico;  India;  Brazil;  China;  
Pakistan;  Switzerland;  Australia;  the Republic of  Korea;  the United States;  Hong Kong, China;  
Canada;  Colombia;  New Zealand;  Singapore;  Norw ay;  Chile;  European Union;  Chinese Taipei;  
Indonesia;  and Turkey. 
4. The following delegations submitted written ques tions after the two-weeks deadline:  Costa 
Rica;  Argentina;  Nigeria;  Ecuador;  and Thailand. 
5. The Chairperson noted that he had consider ed the reports prepared by Japan and the 
Secretariat.  He noted that he saw with satisfacti on that Japan refrained from raising new trade barriers 
during the period under review (2009-2010) despite a severe negative impact of the global financial 
and economic crisis on its economy.  For example, Ja pan's growth had contracted since its previous 
Trade Policy Review in 2009, its  exports dropped by 25% in 2009,  and its current account surplus 
narrowed to 3.3% of GDP in the same year, co mpared with 4.8% in 2007.  To boost domestic 
demand, Japan introduced an important stimulus package, and made its monetary policy more 
accommodative.   
6. While looser macroeconomic policies had helped  Japan's recovery from the crisis, its long 
term structural problems continued to impede growth .  The report by the Secretariat mentioned that 
structural reforms had, if anything, slowed since 2009.  It would appear that the Japanese authorities 
were currently planning and formulating measures to  implement further reforms.  This would appear 
to entail measures including those outlined in the Ne w Growth Strategy announced in June 2010, and 
new measures to attract foreign direct investment in Japan.  Moreover, Japan's Prime Minister Kan 
emphasized in his speech at Davos that Japan aimed to further "open up" its market.  He assumed that 
many Members wished to know how Japan intend ed to address structural issues, including trade 
liberalization. 
7. Concerning Japan's trade policy regime, while  it remained committed to the multilateral 
trading system and to an early conclusion of the Doha Round, it had also been intensifying its pursuit of bilateral/regional free trade agreements with so me of its trading partners.  Currently, it would 
appear that Japan was considering favourably part icipation in the Trans-Pacific Partnership (TPP) 
initiative.  In this regard, Japan maintained that these agreements would serve as building blocks to 
reach higher trade liberalisation at the multilateral leve l.  He noted that Members would be interested 
in learning more about how the Government  of Japan hoped to accomplish this goal. WT/TPR/M/243 
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  II. OPENING STATEMENT BY THE REPRESENTATIVE OF JAPAN 
8. The approximately 700 questions from 25 Member s demonstrate a keen interest from the 
WTO Members toward Japan's economic and trade policies. I am pleased to announce that the 
responses to all questions submitted by the closing da te are being distributed today in written form.  
9. While the world economy is in the process of recovery, Japan recognizes that protectionist 
pressure is still persistent.  The role of the TPR, at this juncture, is even more important.  Japan has 
maintained its trade policy of openness in line with  WTO rules, and has refrained from raising "new 
barriers to trade and investment or to trade in goods and services" in keeping with the commitments 
made at the G8, G20, and APEC Leaders' meetings .  Japan highly values the report by the Secretariat 
for this meeting, as well as a series of WTO repor ts on G20 trade measures. Those reports accurately 
confirmed Japan's strong commitment in this regard.  
10. "Opening up the nation" is one of the main principles of building the nation of Japan, as stated 
in the Policy Speech by Prime Minister Mr. Naoto Kan at the beginning of the current Diet Session, which started this January. Over the last 150 years,  Japan has twice opened itself to the world in the 
1860's and also after World War II.  Japan now ventur es to take on its "third opening".  Bringing this 
new openness to fruition involves taking the initiative in  the liberalization of trade and investment and 
in facilitating the exchange of human resources.  Under this principle, in November 2010, the 
Government of Japan adopted a cabinet deci sion "Basic Policy on Comprehensive Economic 
Partnerships", based on which Japan will pur sue high-level economic partnerships.   
11. Japan's economy has not shown much growth si nce the collapse of the bubble economy at the 
beginning of 1990's. Policies for economic growth  did not work sufficiently well and the economy 
was not able to escape deflation. For the past ten years, the nominal economic growth rates, which 
correspond closely to what the people actually feel  about the economy, were minus values. Japan's 
growth is at the lowest among OECD countries. 
12. Speaking about public finance, on the other ha nd, annual expenditures constantly exceed tax 
revenues by a large margin. Japan's outstanding bala nce of government debt has increased by about 
470 trillion yen in the past 20 years. 
13. In order to link the afore-mentioned "21st-century opening of Japan" to growth and 
employment, the current administration has started a series of initiatives to achieve a "strong economy", "robust public finances" and a "strong social se curity system" in an integrated manner.  In 
June 2010, Japan issued the "New Growth Strategy" in  order to overcome the stagnation that has long 
troubled our economy.  Under this strategy, Jap an has been implementing necessary regulatory and 
institutional reforms in order to form a firm econom ic structure, which will in turn generate more 
stable domestic demand.  Our government will carry  these out one by one, and make this year the 
turning point for us to take a major leap towards the revival of our economy. 
14. Now, let me explain Japan's Basic Policy on Tr ade in a more concrete manner.  Maintaining 
and strengthening the multilateral trading system under the WTO remains a fundamental basis of 
Japan's trade policy. Japan recognizes this year as the "window of opportunity" for conclusion of the 
DDA and concurs with the concrete schedules and ti melines widely shared at the recent ministerial 
meetings at Davos.  Japan will actively participat e in every negotiating pro cess to move forward the 
DDA for realizing an ambitious and balanced outco me based on the progress made up to now.  In 
order to achieve this goal, we need progress not onl y in the areas of agriculture, NAMA, and services, 
but also in other areas, in line with the single undertaking principle. Japan believes that its proposals 
in such areas as NAMA, services and rules will make substantial contributions to the progress of the 
negotiations.   WT/TPR/M/243 
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  15. The Government of Japan is also working pr oactively to strengthen economic partnerships 
through developing new FTAs and EPAs, ba sed on a cabinet decision "Basic Policy on 
Comprehensive Economic Partnerships". Japan w ill move forward expeditiously in our ongoing 
negotiations with Australia, as well as with GCC, a nd Japan will aim to resume or launch negotiations 
on economic partnership agreements with the Republic  of Korea, the EU, and Mongolia.  Japan also 
intends to press forward further in the joint st udy for a Free Trade Agreement among Japan, China, 
and the Republic of Korea.  With respect to the TPP, the Trans-Pacific Partnership Agreement, last 
year Japan began consultations with the relevant countries participating in the TPP negotiations. The 
Japanese Government will continue to hold consulta tions with those countries to reach a decision on 
whether to join negotiations by around June of this year.  
16. Last year, as chair of APEC 2010, Japan c onducted an assessment of the progress toward 
achieving the "Bogor Goals" that aim for free and open trade and investment in the Asia-Pacific 
region.  Japan took the lead in setting forth "the APEC Leaders'Growth Strategy", a comprehensive, 
long-term framework for promoting high-quality growth  in the Asia-Pacific region, and in exploring a 
range of possible pathways to achieving a Free Tr ade Area of the Asia-Pacific (FTAAP). Japan also 
took the initiative to give a strong political message to accelerate the DDA negotiations.  
17. Now, let me move on to an explanation in detail of Japan's New Growth Strategy and 
Domestic Reforms.  With respect to robust public finances, as have been emphasized by the recent 
G20 leaders'declarations, for many countries, rest oring fiscal consolidation is a challenge to be 
tackled with a sense of urgency. In June 2010, we formulated the "Fiscal Management Strategy" that 
indicates the path to fiscal consolidation. The strate gy is to halve the primary deficit as a percentage 
of GDP by fiscal year 2015 from 2010 levels and to achieve a primary surplus by fiscal year 2020.  To 
achieve the targets, we introduced the Medium-T erm Fiscal Framework.  In FY2011 draft budget, 
based on the Medium-Term Fiscal Framework, we maintained the "Overall Expenditure Limit (approx. 71 trillion yen)", and at revenue side , restrained the amount of new government bond 
issuance within the level of FY2010 (approx. 44 tr illion yen). We will continue to implement fiscal 
consolidation steadily in and after FY2011. Moreov er, we decided to put forward a social security 
reform agenda and a tax reform agenda which aims  to secure the financial resources needed for the 
social security reform as well as to achieve fiscal consolidation simultaneously.  
18. Our total value of agricultural production is about 8.5 trillion yen (US$102 billion). In 
comparison, our total agricultural imports are about 4.6 trillion yen (US$55 billion). If forestry and fishery products are included, total imports reach 6.7 trillion yen (US$81 billion). These figures show 
to what degree our agricultural market contributes to world trade. On the other hand, over the past 20 
years, domestic agricultural production has decreased by 20% while the distancing of youth from agriculture has become increasingly pronounced. The av erage age of people engaged in agriculture is 
now 66. The revival of the agriculture, forestry, and fishery industries is a truly pressing issue. 
19. In his Policy Speech at the beginning of the current Diet Session, Prime Minister Mr. Naoto 
Kan set forth this objective, "the revival of the ag riculture, forestry, and fishery industries" as one of 
the major objectives in bringing about a "21st-century ope ning of Japan".  In the speech, he also stated 
that Japan will pursue transition in  its agricultural industry through industrial and commercial tie-ups, 
as well as the expansion of scale thr ough the consolidation of farmland.  
20. Against this backdrop, in order to promote bot h high-level EPAs and improvement in Japan's 
food self-sufficiency and revitalization of its agricu lture industry and rural communities, and also in 
order to take measures aimed at fostering sustaina ble and strong agriculture, "the Council for the 
Realisation of the Revival of the Food, Agriculture, Forestry and Fisheries Industries" was established. A basic policy will be developed ar ound June, and with the consideration of the 
necessary, appropriate, and drastic domestic measu res needed to improve competitiveness and other WT/TPR/M/243 
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  aspects of agriculture, an action plan with a medi um and long-term persp ective will be drawn up 
around October this year.  
21. The Government of Japan has strenuously carri ed out regulatory and institutional reforms, 
with a view to enhancing the competitiveness of Japanese companies and creating new industries and employment. In September 2010, the "Regulator y Reform 100 to Revitalize Japan" program was 
hammered out. Through this program , the Government of Japan w ill promote high-quality reforms, 
effective for generating demand and employment in areas such as urban revitalization, housing, 
environment, energy, health care and tourism, as stimulus measures. 
22. While opening up the country and importing the best management resources in order to 
enhance its potential for growth, the Government of Japan, with a view to achieving active economic 
partnerships and eliminating non-tari ff barriers, will decide on a concrete plan by March of this year 
through the Government Revitalization Unit.  
23. Japan has made various efforts to contribute to the recovery of the world economy and to 
strengthen Asia's growth potential as a centre of growth open to the world. At the G20 London Summit in April 2009, it announced the expansion of its ODA to Asia  that totalled up to 2.0 trillion 
yen, or approximately US$20 billion. Japan also ma de additional assistance to trade finance which 
totalled US$22 billion over two years, which was in addition to the average US$90 billion per annum. 
It also provided a loan of a maximum of US$100 billion to the IMF.  Japan established funds to 
recapitalize banks in developing countries, which c ontributes to supplying sufficient liquidity in each 
region.   Furthermore, Japan has provided various supports for African countries that are suffering an adverse impact from the global fi nancial and economic crisis.  
24. Japan believes that "Aid for Trade" must be e ffectively implemented in a way that aims to 
create sustainable economic growth in developing countries through the expansion of trade, which 
will contribute to poverty reducti on. While emphasizing the importance of the "mainstreaming of 
trade" in developing countries, Japan has been  implementing two AfT initiatives called "Development 
Initiative for Trade" and "Development Initiative fo r Trade 2009", since AfT was globally launched at 
the WTO Hong Kong Ministerial Conference in 2005. These Initiatives include, for instance, a 
provision of ODA amounting to US$10 billion and US$12 billion respectively for the designated three years. 
25. Recently, "Effectiveness" has often been discussed as one of the key elements of AfT. Japan 
has had a lot of experience in AfT activities over th e years, especially in the Asia region, where 
several countries have realized trade-driven economic  growth.   Japan will continue to contribute to 
the consideration of the "Effectiveness of AfT". Fu rthermore, in the Asia-Pacific region, we have 
participated since its initiation in the Regional Technical Group (RTG), in which members discuss 
AfT issues and proposals, sharing good practices, bu ilding partnerships and considering coordinated 
approaches to operationalizing AfT in the medium-t erm.  For the upcoming Global Review in July, 
Japan will contribute to the success of the meeting by providing its case stories and through its 
collaborative work in the RTG.  WT/TPR/M/243 
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  III. STATEMENT BY THE DISCUSSANT (H.E. MR. STEFFEN SMIDT (DENMARK)) 
26. In his speech in Davos recently Prime Minist er Naoto KAN spoke about "Opening Japan and 
Reinventing KIZUNA" (i.e. creati ng new bonds).  He focused on pr omoting economic partnerships 
and characterized the Government's efforts as a ne w opening of Japan to the outside world.  During 
the second half of the 20th century Japan opened up its economy to  the world and grew into a major 
economic power. Unfortunately, things changed. St agnation took over and the recent financial and 
economic crises worsened the situation. 
27. KIZUNA – the creation of new bonds – is called for. The world needs Japan again to become 
an engine for economic growth and social progress worldwide.  The questions in today's review should be guided by the objective of KIZUNA. 
28. My questions to Japan at this TPR fall logi cally in three categories:  on macroeconomic 
challenges;  on multilateral and regional challenges;  and on bilateral issues, or more specific trade 
issues 
29. I will focus my opening remarks and my questions on the two first, as they would seem both 
relevant for all of us.  Japan's macroeconomic circ umstances and its trade policy is still characterised 
by the 2009 financial crisis. The Japanese economy contracted during the period under review owing 
to the sharp fall by 25% in 2009 in exports, which have traditionally been the main engine of Japan's 
economic growth.   
30. During the period since the last review Japan has refrained from introducing new barriers to 
trade, and according to the Government's Report, Japan has taken various measures to promote liberalisation of trade.  The looser macroeconomic  policies have helped Japan's economy to recover 
from the global financial crisis, but they do not address the long-standing problems that are reflected 
in sluggish growth during the past decade, both real GDP and total factor productivity, a key determinant of Japanese firms' international comp etitiveness.  Therefore my question here is that 
although the Government recently has taken steps to reform the economy, it seems fair to ask if the 
hitherto rather sluggish macroeconomic policy was in fact contradicting Japan's declared interest in 
trade liberalization at multilateral,  regional and bilateral level.  
31. Turning to structural challenges, Japan's economic challenges are well known: high public 
debt, the need for tax reform of both the corporat e and personal tax regimes to broaden the taxation 
base, a population that will place increased dema nds on government services in future years. 
32. According to the OECD, to be able to sustai n growth in the future, the Japanese economy will 
need to undergo far-reaching structural changes focused on improving productivity, especially in the 
services sector, through increased competition and furthe r deregulation, reform the labour market as 
well as reducing the cost of doing business so that the sector attracts more investment (both foreign 
and domestic).  What are the plans of Japan with a vi ew to increase the pace of the structural reforms? 
33. On growth, Japan has launched initiatives to  achieve three targets: a "strong economy", a 
"robust public finances" and a "strong social security sy stem" in an integrated manner.  What role can 
domestic regulatory reform play to promote trade, in such areas as competition policy? 
34. In June 2010, the government issued a "New Growth Strategy, Blueprint for Revitalizing 
Japan" and a "Fiscal Management Strategy, for the Security and Hope of the People", which contain concrete measures for achieving the above-mentioned th ree targets.  To mitigate the adverse effects of 
the crisis, the Government initiated a stimulus packag e. Consequently, the fiscal deficit rose to 10% of 
GDP in 2009 and the public debt reached roughly 22 0% of GDP.  How does Japan plan to reduce this 
deficit, especially in light of the aging popul ation and the associated future fiscal burden? WT/TPR/M/243 
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  35. The New Growth Strategy is focusing on seven priority areas (environment and energy, etc.) 
by "picking winners" in these seven areas. It would be interesting to learn more about the specific 
"winners" foreseen under the new 2010 Growth Stra tegy. Can Japan share with Members its policy 
approach in this respect? (As experience in OECD and other fora has shown, "picking winners" is a 
difficult and not always successful concept).  
36. On investment, the inward FDI has been lower than the authorities expected, net FDI inflow 
in 2009 declined more than 50%, due mainly to the global recession. It would be interesting to learn 
in more detail what the priorities are in terms of  regulatory and institutional reforms, which would 
increase Japan's market openness and Japan's FDI ratio.  
37. It is well known that Japan is firmly committed to  the multilateral system.  It is an active and 
involved participant in the ongoing work of the Or ganization, and in the DDA negotiations.  As the 
host of APEC 2010 Japan suppor ted the progress of the negotiations as Japan has done in the 
framework of G20.  
38. According to the Government report, Japan  has been making efforts for the further 
development of all regional cooperative frameworks,  including ASEAN Plus Three (Japan, China and 
the Republic of Korea), ASEAN-Japan, Japan-Chi na-Korea tripartite cooperation and the newly 
established East Asia Summit (EAS ), along with larger organisations such as APEC and ASEM.  
Japan is currently a party to 11 Economic Partne rship Agreements which include elements of FTAs 
and institution-building covering areas such as inve stment, competition, intellectual property rights 
and human resources development.  Japan is also involved in several ongoing negotiations for EPAs. 
39. The Report states that Japan has promoted its re gional and bilateral trade policies as a means 
of complementing the multilateral trading system.  Could Japan please substantiate in which ways 
bilateral and regional agreements serve as building bl ocks to reach higher trade liberalization at the 
multilateral level?  Could Japan elaborate more on the added-value of the regional framework it is 
pursuing compared to its objectives in multilateral context and its efforts on macroeconomic level? 
40. Finally I have two specific questions.  The Secretariat Report states that "non- ad valorem  
duties, which account for 6.6% of Japan's tariff lines, tend to involve high ad valorem  equivalents, 
and are an important feature of Japan's tariff, particul arly for agricultural produc ts". It also states that 
"non- ad valorem  rates tend to conceal tariff peaks".  Se veral Members have enquired whether Japan 
has plans to move to a more transparent ad valore m regime and, if not, what is the rationale for 
maintaining the different types of non- ad valorem  tariff? 
41. The Secretariat Report describes the ex-ante regulatory impact analysis (RIAs), which is 
promoted by the OECD and is also an effectiv e instrument for more objective decision-making and 
enhanced fairness in assessing both positive and ne gative implications of new regulations. Such 
analysis is rarely used to evaluate existing me asures, such as tariff and non-tariff protection of 
agriculture, or to evaluate the economic effects of preferential trade agreements (PTAs).  Could Japan 
tell us more about its RIA methodology and about Ja pan's view on cost-benefit analysis as a tool in 
good regulatory practice?   WT/TPR/M/243 
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  IV. STATEMENTS BY MEMBERS 
INDIA 
 
42. Since its previous review in 2009, Japan has witnessed several momentous changes. As per 
the recent figures available, Japan's GDP grew 3. 9% amounting to US$5.47 trillion during 2010.  This 
was Japan's first annual growth in three year s.  However, GDP shrank a seasonally adjusted, 
annualized 1.1% in real terms in the final quarter of  2010 to mark its first decline in five quarters.  
The Japanese industrial production grew by 3.3% in  December 2010, up from an initial reading of a 
3.1% gain and 1.0% increase in November 2010. 
43. Some of the major challenges as noted by our discussant facing Japan are deflation, debt, a 
strong yen, high levels of youth unemployment and an aging population. For Japan it should be a 
matter of concern that Standard and Poor's has cut Japan's credit rating to "AA-" from "AA", saying 
the government lacked a "coherent strategy" to ease  the debt running near 200% of GDP, the highest 
in a developed nation.  According to Shinji Fukuka wa, former Vice Minister of the Ministry of 
International Trade and Industry and President of Dentsu Research Institute, all things considered, 
Japan is likely to tread a path of decline unless it makes all-out national efforts now to overcome the 
current national crisis. Japan in the days ahead w ill need to comprehensivel y address the issues which 
have been raised by the Discussant and others, like social sector reforms, enhancing private 
consumption and exports.   
44. Though understandably economic media has larg ely focused on Japan yielding rank as the 
second largest economy, it is important to remember  that Japan is still one of the three major 
economies and has again one of the highest per ca pital income of over US$42,000.  Despite current 
problems being faced by Japan, we believe Japan will c ontinue to play a very vi tal and crucial role in 
the global economy and trade in the decades to come. We are also encouraged by the recent report of 
Bank of Japan that economy is gradually emer ging from the current deceleration phase; Japan's 
exports and production are showing signs of resuming an uptrend. 
45. India and Japan have historical and civilizationa l old ties. Our relations have been marked by 
mutual goodwill, amity and respect. Rabindranath Tagore, a Laureate first visited  Japan in 1916, he 
found much to admire: the country's economic, industr ial and scientific advances, for one thing, but 
also its cultural and literary traditions and the va lues he felt those traditions represented. While in 
Japan he wrote: "The Japanese do not waste their energy in useless screaming and quarrelling, and 
because there is no waste of energy it is not found wanting when required. This calmness and 
fortitude of body and mind is part of their national self-realization."  
46. In modern era, our bonds have strengthene d based on our shared values of freedom, 
democracy and the rule of law. After nearly four years of negotiations, India and Japan have finalised 
the Economic Partnership Agreement.   I am happy to note with appreciation that Takehiro has had a 
role in the final lap in the negotiations of this  agreement.  The deal includes trade in goods and 
services and investments.  The agreement also c overs facilitation of business environment and the 
rules of origin.  The EPA will eliminate tariffs on 94% of two-way trade in 10 years after the pact 
takes effect. 
47. India-Japan bilateral trade has been in the p ast three years over US$10 billion.  The Japanese 
exports to India during 2009-10 amounted to US$6.7 billion and India's export to Japan US$3.6 billion.  The major items of India's exports to Japan include petroleum products, iron ores, 
gems and jewellery and marine products.  Imports from Japan include machinery, transport 
equipments, iron and steel and electronic goods.  Japan is India's seventh largest source of FDI.  In 
2009-10 investment from Japan tripled to US$1.2 billion from US$405 million a year ago.  There are about 1,000 Japanese firms operating in India.  Th ere are several institutio nal arrangements existing WT/TPR/M/243 
Page 10  
 
  between Japan and India to promote bilateral trade and investment including Japan-India Policy 
Dialogue which met in Delhi in April 2010. 
48. My delegation has posed questions to the dele gation of Japan for the Trade Policy Review, 
albeit with some delay.  We thank the delegation of Japan for the responses provided to India's first 
lot of questions.  We look forward to receive respon se to India's additional questions in due course of 
time. I do not wish to elaborate on them, however, I would like to briefly touch upon some of the most 
important ones. 
49. Japan's specific plans, schemes to address l ongstanding structural challenges. Some more 
information in this regard will be appreciated.  Do es Japan plan to increase percentage of its industrial 
standards to international standards and by what percentage?  What are the reasons for Japan not 
conducting cost-benefit analysis of SPS measures? 
50. Low level of inward FDI in Japan is generally attributed, inter alia , to impediments to 
mergers and acquisitions; insufficient regulatory reform  and financial transparency and flexibility; and 
lack of flexibility in the labour market.  We would appreciate Japan sharing mo re information in these 
areas. 
51. Agriculture sector continues to receive subs tantial government support, which involves, inter 
alia, a relatively higher average MFN applied rate compared with other sectors, tariff quotas and 
income support. The current total aggregate measu rement of support in Japan was ¥517.2 billion in 
2006. Japan's farmers, average age 66, produce only 1% of national output. Japan has protected them 
with tariffs of 778% on rice and 252% on wheat. It h as also largely fenced o ff the agricultural sector 
in FTAs, going so far as to exclude goldfish and cu t flowers. Can Japan explain how these measures 
are affecting the market access prospects of agricultural products from developing countries? 
52. Japanese Pharma market is around US$60-65 b illion, of which around US $10 billion is being 
imported. But in view of non-tariff barriers, access to  the Japanese market is difficult. Certain services 
continue to be subject to, inter alia,  licensing and restrictions on foreign investment; as in many other 
sectors, they are also faced with the generally high cost of doing business in Japan. We would 
appreciate Japan easing costs of doing business in Japan.   
53. In view of size of the Japanese economy, share in  the world trade, it is natural that Members 
look forward to Japan playing a leadership role in the Doha Round negotiations. 
MEXICO 
54. This tenth Trade Policy Review of Japan is of particular interest as it coincides with the 
recovery from the major international financial cris is to which we have been witness.  In this 
connection, we would highlight the fact that Japan  has fully complied with its commitment to resist 
protectionist pressures for the imposition of trade-restricting measures. 
55. We are pleased to note that the recovery sympto ms are already being reflected in the growth 
rate of nearly 3% in GDP, mainly as a result of th e strong growth of roughly 25% in exports.  At the 
same time, Japan has taken a number of noteworth y steps to improve its competitiveness, including 
amendments to various laws on intellectual property rights in order to broaden their scope;  and the 
amendment to the Anti-Monopoly Act so as to impose fines for practices relating to private monopolies, price fixing cartels and bid rigging. 
56. Nevertheless, Japan continues to face major econo mic challenges.  First there is the growth in 
public debt:  220% of GDP is one of the highest na tional levels in the world.  Secondly, the budget  WT/TPR/M/243 
 Page 11 
 
 
  deficit of 10% of GDP.  These circumstances could pose a serious problem in the area of public 
finances, in relieving the deflationary pressures th at are being felt and in Japan's economic growth. 
57. Although the Japanese economy grew in 2010, the ra te was slower than expected.  This was 
due, inter alia , to the fact that the structural reforms that have not yet come on stream, as was 
mentioned by the discussant and the representative  of India, and to the appreciation of the 
Japanese currency, which has led to a loss of international competitiveness.  However, the latter factor 
is not the most important one in terms of Japan's  loss of international competitiveness.  Among other 
things, Japan still faces an important task of trade lib eralization, particularly in the agricultural sector, 
but significant reforms are required in the services sector in order to make it more competitive and enable it to cope with international competition. 
58. Regarding tariffs, we are struck by the fact th ere are tariffs with an applied level well below 
the bound level.  However, concrete data on the pro ducts concerned are lacking.  Many of them are 
products of interest to Mexico, and we would theref ore ask the delegation of Ja pan to provide us with 
a list showing these differences in tariff levels.  As  was mentioned by the discussant, the share of 
tariff lines subject to non- ad valorem  tariffs is also a matter of concern to my delegation. 
59. In the area of services, although a number of initiatives have been taken to improve 
productivity, some sectors continue to be subject to  licensing and restrictions on foreign direct 
investment, this being one of the main obstacles to competition. 
60. With regard to agriculture, in addition to ve ry high MFN tariffs, the agricultural support 
granted by Japan amounts to 1.1% of GDP.  This is only 0.1% higher than the value of agricultural production in the GDP, which demonstrates the i nordinately high level of domestic support for 
agricultural production. 
61. There is no doubt that Japan could play a bigger role and exert greater leadership in the 
Doha Round.  But for that purpose it needs to de monstrate greater flexibility in agriculture in 
particular.  We acknowledge the major efforts made  by Japan to promote progress in the Doha Round, 
but it should begin instituting greater flexibilities in order to be able to provide the required 
reciprocity in terms of its NAMA and services aspi rations, and this applies not only to agriculture. 
62. At the bilateral level, an agreement for the st rengthening of economic partnership has been in 
effect between Mexico and Japan since 2005.  This  is a free trade agreement that has been submitted 
to the WTO and has already been discussed.  It has given a major boost to both trade and bilateral 
investment between Japan and Mexico.  Our bilate ral trade is already now approaching levels of 
US$20 billion per year, which may seem small in relati on to Japan's total trade or the total trade of 
Mexico, but what counts is the rate of growth. 
63. I should like to point out, in connection with Japan's investment projects in Mexico, that a 
quarter of all automobiles sold in Mexico are Jap anese vehicles, which are produced not only for the 
domestic market but also for export. 
BRAZIL 
64. Japan is a key player in global trade and one of the world's largest markets. Japan's Prime 
Minister Naoto Kan recently outlined his view on the need for a "third great opening" in his country, 
in terms of economic reforms coupled with social solidarity. Three weeks ago, Ministry of Foreign 
Affairs Seiji Maehara presented trade liberalizati on as one of the fundamental pillars of Japanese 
economic diplomacy. We must say that the views expressed by both the Prime Minister and the Foreign Minister are developments that  that we, in Brazil, welcome warmly. WT/TPR/M/243 
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  65. Foreign trade has been traditionally a key factor in Japan's overall good economic 
performance. This has been no different in r ecent and more difficult years. From 2003-07, the 
Japanese economy enjoyed a relatively healthy peri od of recovery. The 2008 financial crisis hit 
Japan's economy hard, and as a result the GDP cont racted 5.2% in 2009. And yet foreign trade has 
remained a key factor in sustaining economic pe rformance. Trade surplus from 2005-09 contributed 
to the economic recovery, and current account su rplus reached 3.3% of the GDP in 2009.  
66. As many other countries, Japan is taking initia tives to stimulate its economy and prevent any 
worsening of the crisis. The Government instituted a few stimulus packages, equivalent to 4.8% of 
GDP, targeted to domestic demand. The long-term n eed for structural reform is vital, and Japan's 
early steps into that direction, as announced by Prime-Minister Naoto Kan, should be highly praised.  
67. Since the expansion of demand in foreign markets is such an important factor for its economic 
performance, Japan's unabated commitment to an open and fair multilateral trading system is a 
welcome attitude in an international environment wh ere protectionism in all its forms is a permanent 
challenge.  
68. I would like to draw attention to two elements  of Japan´s trade policy that deserve special 
attention and as a result have been the object of specific written questions from Brazil.  The first 
element is related to government support for the de velopment of civil aircraft generally and the 
Mitsubishi Regional Jet project, in particular. This is  a matter of great concern to Brazil. The details 
of such financial support and the amounts involved  were not made available, despite requests for 
relevant information made on many occasions – su ch as the 2009 TPR – and in different formats – 
such as the bilateral meeting between Brazil and Japa n held in November 2010. It is unclear whether 
or not this support provided by the Government of  Japan is consistent with the WTO Agreement on 
Subsidies and Countervailing Measures. Full transparen cy by Japan will be important to make that 
assessment. Let me stress that Brazil will be following developments in this area closely. 
69. The second element is related to trade in agricu lture in Japan, which remains highly distorted 
by a combination of extremely high trade barriers and domestic support. We are, to be sure, aware of 
the specificities of Japanese agricu lture. Such specificities notwithstanding, levels of distortion and 
restriction in Japan find few, if any, matches am ong WTO Members. Tariff peak s in Japan seem to be 
significantly underestimated in the Secretariat's Re port, which makes the need for a tariff capping in 
the Doha Round negotiations even more urgent. Ta riff rate quotas in products such as rice, milk, 
wheat, barley and dairy products work as virtual qua ntitative barriers to the extent that out-of-quota 
rates are often prohibitive. Moreover, the in-quota  imports of some of those products are handled 
mainly by state-trading entities. Japan often r esorts to the Special Safeguard Measures (SSG). 
70. Agriculture products are in addition heavily s ubsidized. We note, however, that additional 
steps have been taken to replace price suppor t subsidies by income support payments.  
71. As a result of a number of tariff and non-ta riff barriers, a highly competitive food exporting 
country as Brazil accounts for only 3.8% of Japan 's agriculture imports, whereas the U.S. alone 
accounts for almost 50% of those imports. This situ ation needs to be redressed. A new impetus to 
raise the level of ambition in the Doha Round ma rket access negotiations in agriculture could be a 
means to that end.  
72. Brazil continues, to follow with interest internal developments  in Japan related to foreign 
trade policy. We note that bilateral trade fl ows remain below their full potential, at around 
USS14.1 billion in 2010. There is much room fo r improvement as both economies are diversified and 
vibrant. Brazil has imported from Japan high-value goods such as electronic equipment, capital goods 
and automobiles. Nevertheless, some of our expo rts, especially in agriculture, are subject to 
significant barriers, particularly in the area of sanita ry and phytosanitary measures where Japan is still  WT/TPR/M/243 
 Page 13 
 
 
  reluctant to accept the principle of regionalization. Br azil has been pursuing this issue bilaterally with 
Japan for quite some time now, but this remains unresolved. Furthermore, Japan's Maximum Residue 
Level in coffee seems to lack scientific evaluation.  
73. A promising area that is yet to develop its full potential is biofuels. One of the stated 
objectives of Japan's energy policies is to ensure a stable supply. Diversification of suppliers and 
sustainable development can be achieved simultane ously should Japan move in the direction of 
favouring the introduction of biofuels in its energy mix. 
74. We hope to further expand and im prove our bilateral trade. Brazil trusts that the Japan will 
retain its commitment to the multilateral trading syst em and will continue its engagement in the Doha 
Round. Brazil looks forward to discussing the rep lies to the written questions submitted to the 
Japanese delegation on several issues. 
CHINA 
75. On the economic and trade relations between China and Japan, it is stated in paragraph 57 of 
the Government Report that "the economic interd ependence between Japan and China is growing 
deeper". China shares this statemen t. According to the statistics of China, our exports to and imports 
from Japan dropped by 15.7% and 13.1% respectivel y in 2009 compared with 2008 as a result of the 
global financial crisis, standi ng at US$98 and US$131 billion, respectively. Despite that, China 
remained the largest trading partner of Japan in that  bleak year, and the margin of decline was smaller 
than those for many other Japan's trading partners. In 2010 the situation has already improved. China's 
exports reached US$121 billion and imports even reached US$176.7 billion. These represented 23.7% 
and 35% year-on-year increases respectively, surpassing th e peaks recorded before the crisis. It is fair 
to say that our economic and trade ties are strong enough to have withstood the severe test of the 
crisis. 
76. The growing interdependence of the bilateral economic and trade relationship is significant. 
Japan's trade surplus with China always sits alongside China's surplus with some other WTO 
Members, at a fairly impressive scale for both. Th e Government Report of Japan points out that in 
2009, in spite of the heavy strike of  the financial crisis, investment from Japan to China still registered 
US$4.1 billion. And at the end of 2008, there we re more than 25,000 Jap anese enterprises conducting 
business in China. Recently more Chin ese enterprises begin to be inter ested in investing in Japan. In 
view of such evolving economic and trade interdep endence, it is China's belief that Japan and China 
should further enhance mutual trust and intensif y dialogue and coordination. China will continue 
making efforts towards this direction. 
77. China has great interest in the economic perfo rmance of Japan as well as its macroeconomic 
policy orientation. Japan has taken a series of stimul us packages in response to the adverse impact of 
the financial crisis. However, as noted in the Secr etariat Report, these measures did not address long-
standing structural problems in the Japanese economy.  Instead they bring about even heavier burden 
to Japan's fiscal deficit and public debt, and the pace  of reforms in Japan has slowed if not reversed. 
In this respect, China has put forw ard a series of written questions to  Japan. It will be appreciated if 
Japan could provide its views and responses on this aspect. 
78. Regarding trade and investment, despite the heavy blow of the financial crisis, the Secretariat 
Report noted that Japan had largely refrained from introducing new trade barriers. China appreciates 
this effort of Japan and has a shared position in fighting against trade protectionism. That said, the 
Secretariat Report also pointed out that since the last Review, few measures were taken by Japan to 
further liberalize its trade and trade-related regime. In this regard China does have a series of long-
standing concerns, the most outstanding issues being transparency of Japan's trade and investment 
regime, particularly in the following area s:  import and export licensing and quota; TRQ WT/TPR/M/243 
Page 14  
 
  administration of rice; numerous technical ba rriers including extremely harsh inspection and 
quarantine criteria and procedures; barriers to i nvestment; constant high protection of certain 
economic sectors; strict restricti ons on movement of natural persons, even intra-corporate transferees. 
79. China would like to urge Japan to proceed with the reforms and to further liberalize its trade 
and investment by addressing the concerns of its trading partners. This will not only enhance the 
mutually beneficial relationship, but also cont ribute substantially towards the multilateral trading 
system, especially the ongoing DDA. 
80. This Trade Policy Review of Japan has attrac ted much attention of various ministries and 
industries in China. We have submitted to Japan th ree batches of questions. We thank Japan for the 
detailed and informative answers provided, which will facilitate our understanding of the economic 
and trade policies in Japan.  Finally, I would like to conclude by appreciating the active role of Japan 
in the WTO and the current DDA negotiations. Ambassa dor Kitajima and his strong team in Geneva 
have been contributing constructiv ely in all areas of our work.  
PAKISTAN 
81. The TPRM is an important element to ensure tr ansparency in the multilateral trading system. I 
am encouraged by the Secretariat Report that desp ite difficulties and considerable dwindling exports 
during 2008-2009, Japanese economy remained open and continues to adhere strictly to Japan's 
multilateral commitments. 
82. Pakistan and Japan always enjoyed cordial relations leading to enhanced bilateral 
cooperation. Japan has remained one of the larg est single donors for Pakistan in development 
assistance and technical cooperation. Japan is also on e of the top investors in Pakistan in sectors like 
automobile and power generation. JICA, JBIC (Japan Bank for International Cooperation) and 
JETRO are well known and respected in Pakistan. Si nce 2008, there has been structural interaction 
between the business communities of both countries a nd Pakistan-Japan Business Forum has prepared 
a joint study to identify avenues for enhanced bilateral trade, which is still much below of its 
potential, and to address huge imbalance in bilateral trade.  
83. There has been a shift in the trade policy of Jap an during the first decade of this century. We 
have witnessed a flurry of bilateral and regiona l FTAs and economic partne rship agreements, which 
are likely to create further barriers for the exports of Pa kistan to Japan. In spite of this factor, we have 
no doubt that Japan is committed to multilateralism, which is evident from Japan's engagement in the 
negotiations of the Doha Round. We  understand Japan's sensitivities in  Agriculture and the difficult 
decisions to be taken by Japan in the ongoing negoti ations on agriculture in the Doha Round. One of 
the major achievements of this Round would be the opening of markets in agriculture for the 
developing countries including Pakistan. We are awar e that the issues of mark et access in agriculture 
can only be addressed at the multilateral forum. 
84. As regards manufacturing goods, the products of e xport interest to Japan by the developing 
countries remain rather high. Such products incl ude footwear, textile and clothing and leather 
products. Besides, some non tariff barriers also tend to restrict or delay th e market access for these 
countries. Such measures include stringent TBT, SPS measures and linguistic challenges of doing 
business. Although, conclusion of NAMA negotiations  is likely to address many of these issues for 
creating a level playing field, Japan may like to ins titute unilateral liberalization of its GSP scheme for 
developing countries.   WT/TPR/M/243 
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  SWITZERLAND 
85. After the longest continuing period of economic  growth since the war, the world economic 
crisis has left Japan in a weakened position.  While  it has been spared from the worst impact of the 
financial crisis, Japan has among the countries bearing the brunt of the ensuing slump in world trade.  
Affecting first its highly competitive export industry , the crisis led to a rise in unemployment and 
further exacerbated Japan's weak domestic demand.   The Government reacted with a large spending 
oriented stimulus programme, and amidst global rec overy, Japan's economy returned to growth albeit 
weakly.  Domestic demand remains weak against a background of widespread precarious employment 
of the young and a rapidly aging society.  In addition, Japan fights the highest debt to GDP ratio among advanced economies. 
86. Nevertheless and despite all these rather challe nging prospects, I am pleased to say that 
bilateral economic relations between  Switzerland and Japan, suffered only slightly during the crisis, 
although they have yet to really rebound.  As for Swiss direct investments, the Swiss private sector 
still maintains high confidence in Japan as a business lo cation since it continues to attract most of the 
Swiss FDIs in Asia. 
87. On the Government side, together with our Japanese partners, we have done our part in 
creating an institutional environment conducive to ec onomic growth between our two countries.  As 
we had the pleasure to announce during the last TPR  of Japan two years ago, Switzerland and Japan 
concluded a comprehensive Free Trade and Economic  Partnership Agreement which entered into 
force in September 2009 and whose Joint Committee just  met in Tokyo a couple of days ago.  This 
bilateral Agreement stands in the tradition of the almost 150 years of treaty-based trading between our 
two countries.  Complementary to the multilateral rul es of the WTO, we believe that this Agreement 
will provide the basis for an ever closer bilate ral relationship between our advanced economies. 
88. Questions submitted by Switzerland concern in  particular Japan's Preferential Trade 
Agreement policy.  As the Secretariat notes, Jap an shows great interest in the Trans-Pacific 
Partnership Initiative.  We shall be more than in terested in the following the evolution of this 
endeavour.   
89. Furthermore, as the Secretariat rightly points out, there remains a number of challenges for 
Japan to make its economic growth sustainable, many  of which I believe lay in the area of regulation 
and policy formulation.  Switzerland, like others , welcomes Japan's New Growth Strategy and the 
regulatory form measures taken to wards its implementation.  I look forward to Japan's explanations 
on the impact of these measures on trade policies and on the access of goods and services to the 
Japanese market.  Especially in  the field of medical technology, including pharmaceuticals and 
medical devises, and in the field of clean technolog y, Switzerland has a considerable interest in the 
establishment of a level playing field consistent with  internationally established standards.  Under this 
chapter falls also the continuous restriction on beef imports.  Switzerland would be interested to hear 
Japan's explanation on the relations between th e substantial work carried out by the World 
Organisation for Animal Health (OIE) and its ow n domestic BSE risk assessment. We hope in this 
context, that the Review in Geneva will provide  our Japanese colleagues with even more authority 
and incentives to convince their technical authorities to  act even closer to the spirit of the multilateral 
trading system. 
90. Other questions concern, among others, Japan's  willingness to bind its yet unbound tariff lines 
under the DDA;  a sudden drop in the share of foreign supplies for railway vehicles and associated 
equipment despite a significant expansion of the value of the procurement in question;  as well as 
Japan's way of approaching the problem of revita lizing highly indebted businesses.  Lastly, in the 
field of government procurement, Japan's small a nd medium enterprises organised in a federation may WT/TPR/M/243 
Page 16  
 
  enjoy limited tendering – instead of open tendering, which runs the risk of discriminating against 
foreign SMEs. 
91. Before I conclude, I would like to highlight th e very active role of Japan in the DDA and its 
constructiveness to find middle grounds in all areas.  I also would like to underline the good cooperation between Switzerland and Japan in the WTO.  For exporters of high value, high 
technology goods and services like our two countries, a strong rules-based system, as provided by the 
WTO, remains essential.  We look forward to pursui ng and further enhancing our already very close 
cooperation in this regard, and ca ll on all Members for an ambitious and balanced conclusion of the 
Doha Development Round of multilate ral trade negotiations in 2011.  
AUSTRALIA 
92. Japan is one of our most vital and long standi ng economic partners.  The links between us are 
strong and deep.  Japan is Australia's second largest  trading partner and expor t destination, and third 
largest source of imports.  In the 2009-10 financia l year, Japan was Australia's second largest trading 
partner and export destination, and third largest  source of imports.  Similarly our investment 
relationship is strong – Japan is Australia's thir d largest foreign investor, with a stock of around 
A$102 billion.  Japan is Australia's sixth la rgest destination for outward investment.  
93. The long term health of the Japanese economy is th erefore vital to Australia, as it is to the 
Asia-Pacific region.  In this context, Australia  warmly welcomes Japan's Basic Policy on Economic 
Partnerships released in November 2010. The Basi c Policy and more recent iterations we heard from 
the Japanese Government represents a positive and fo rward looking stance on trade liberalisation and 
economic reform and Australia stands ready to wo rk with Japan to meet the challenges of its 
ambitious reform commitments.   
94. Australia does have an interest in reform in se veral key sectors in Japan.  Just so as not to 
disappoint the Swiss Ambassador or the delegation of  Japan, one of these is in the area of food and 
agricultural products where Australia is a major supplier to Japan.  While we understand Japan's 
sensitivities in this sector, Australia  continues to be concerned by  the high tariff and non-tariff 
barriers, particularly the involvement of importing st ate-trading enterprises. We are also concerned by 
the high levels of support Japan provides its farm ers, which is above the OECD average.  These 
measures not only impede trade, making Japan a less attractive market for food exports, but also impose significant costs on Japanese consumers.  Re moval of Japan's high tariff and non-tariff 
barriers would support Japan's own efforts to improve its food security. 
95. We also encourage Japan to remain open to fo reign investment.  Australia's experience has 
shown that foreign investment can not only stimul ate the economy, but also spur reforms through 
promoting international best practice.  Australia also encourages Japan to further open its services 
market, given that the share of foreign particip ation in Japan's annual services turnover remains 
amongst the lowest in the OECD.   
96. Australia and Japan have a sh ared interest in a strong, open and rules-based multilateral 
trading system .  Like Australia, Japan has a cr ucial stake in the Doha R ound and Australia recognises 
Japan's active role in trying to bring the Round to  a successful conclusion this year, and indeed 
Australia and Japan are cooperating closely with this  objective in mind.  We welcome Japan's efforts 
to introduce new thinking and new ideas into the negotiations such as on sectoral liberalisation in 
NAMA and also welcome Japan's strong support fo r an ambitious services package as part of the 
Doha Round outcome.  Australia looks forward to working closely with Japan and other WTO 
Members, to translate the strong co mmitments made by leaders at the G20 and the APEC meetings in 
Japan last November into concrete actions to wards a final conclusion of the negotiations.  WT/TPR/M/243 
 Page 17 
 
 
  97. Both Australia and Japan recogni se that as our region becomes the engine for global growth, 
the importance of further regional integration incr eases.  We are working closely to build on the 
outcomes of Japan's APEC host year in 2010 incl uding through promoting domestic and economic 
reform and liberalisation efforts throughout the region.  
98. And as strong as the bilateral trade relationship is, potential exists for further integration and 
deepening.  In this regard, Australia remain s committed to concluding a high quality and WTO-
consistent bilateral FTA with Japan that also is  consistent with Japan's  domestic economic reform 
efforts, particularly in agriculture.  
REPUBLIC OF KOREA 
99. As close neighbours, Korea and Japan have enjoyed excellent economic relations over the 
years.  Currently, Japan is the second largest trad ing partner for Korea, and Korea is the third top 
trading partner for Japan with bilateral trade figur es reaching a record high of US$92 million in 2010.  
In addition, since 1962, Japan has been the second la rgest investor in Korea.  In light of these 
remarkable figures, which stand as a testament to the strong economic ties between the two countries, 
I have every confidence that our important economic partnership will continue to further develop in 
the future. 
100. My delegation also notes with satisfaction Jap an's commitment to the strengthening of the 
multilateral trading system, and in this context, its strong support and participation in the current Doha 
Round of Negotiations.  In November 2010, Korea and Japan closely cooperated in coming up with 
strong political messages on the DDA negotiations  at the G20 Seoul Summit and the APEC 
Yokohama Summit, followed in December by the Director General Lamy's work program and 
timeline for the conclusion of the negotiations.  Furt hermore, Korea has been an important partner of 
Japan in various areas of the ongoing DDA negotiations , and will continue to work closely with Japan 
in an effort to bring the DDA negotiations  to a successful conclusion this year. 
101. This TPR is being held against the backdrop of  some sobering news concerning the economic 
performance of the major economies of the worl d.  Although the world economy is gradually 
recovering from its worst financial crisis, the pace and the extent of the recovery are not enough for us 
to feel relieved yet.  As we are all aware, Japan is one of the largest economies of the world.  For the entire world economy to get back on the right trac k at the earliest possible date, it is vital and 
imperative that major economies, such as Japan, regain their full vitality as soon as possible. 
102. In this context, my delegation would like to applaud the efforts of Japan to revitalize its 
economy, including the announcement in November l ast year of the Basic Policy on Comprehensive 
Economic Partnerships. 
103. The questions posed by my delegation range from Japan's New Growth Strategy introduced 
last year, to some of its new agricultural policy, policies on competition and foreign investment in certain services markets, and government procurem ent.  Our questions also touch upon technical 
regulations or standards regarding TBT and SPS-re lated issues and include more specific questions 
raised by our industry on "doing business" issues in Japan. 
104. As a country that registers a large trade defic it with Japan every year, Korea is always more 
than interested in ways to alleviate this recurri ng phenomenon.  Although reasons  for this trade deficit 
are diverse and thus a single "miraculous" solution is not available, we are of the view that the 
situation could be alleviated to a certain degree,  if the issues of "doing business" as well as the 
technical regulations and standards-related issues c ould be amicably resolved.  My delegation would 
also like to note that the issues of non-tariff ba rriers and some restraints in the government 
procurement system that Korea has been raising bila terally need to be addressed in a speedy manner.  WT/TPR/M/243 
Page 18  
 
  In this context, Korea looks forward to continued di scussions at various levels and in various fora to 
review and seek solutions to the different issues at hand. 
UNITED STATES 
105. Even as there has been much ch ange in Japan, and in the global economy, since Japan's last 
Trade Policy Review in 2009, certain fundamental factors remain unchanged.   Japan remains a key 
player and partner in the international trading system .  For the United States, Japan remains our fourth 
largest trading partner.  Japan also has been vigilant  in helping avoid a substantial slip backwards into 
protectionism within the global trading system.  Th is is a concern where the United States and Japan 
continue to stand shoulder to shoulder. 
106. As an energetic host of APEC in 2010, Japan h as again demonstrated its  readiness to promote 
steps that further advance the goals of open trade an d investment both regionally and globally.  In the 
same vein, Japan has made important contributions  in advancing ambition in the industrial goods and 
services negotiations under the Doha Development Agenda. 
107. There are also signs of new and important changes afoot.  The United States in particular 
applauds the bold vision recently outlined by Prim e Minister Kan and his Government to "open 
Japan" as a tool to promote Japan's economic revitali zation.  This effort to address the unfinished 
business in Japan's own process of trade and market liberalization is a welcome and laudable call to 
action. 
108. At the same time, the Secretariat has pointed out that since Japan's 2009 Review, Japan "… 
has introduced few measures aimed at further liberaliz ing its trade and trade-related regime (p.vii)."  
A similar observation was made in the Secretariat's 2009 Review of the preceding two years.  
Expectations are therefore high that with Prime Minister Kan's announcement, Japan will now move 
beyond the inertia that the Secretariat ha s noted over the past several years. 
109. The concrete steps that are taken to "open Japan" are of great interest to the United States, as 
well as other Members.  Some of Japan's greatest  contributions to promoting an open trade and 
investment regime across the globe reside in actions  Japan is prepared to take itself – steps that 
effectively open Japan to the wo rld. This includes a willingness to remove highly protective tariffs, 
particularly in the area of agriculture.  It also mean s a preparedness to remove the myriad of non-tariff 
measures and other preferences that have the cumula tive effect of distorting competition and creating 
significant barriers to trade and investment across a broad array of industry sectors. 
110. The United States has high expectations that through this process of "opening Japan", Japan 
will address serious market access concerns.  One priori ty for the United States is the need for Japan 
to ensure a level playing field between the private sector and Japan Post in the insurance, banking, and 
express delivery sectors.  I know this is a concern shar ed by other Members.  Another priority area is 
for Japan to ensure that its import measures for agriculture products and food are scientifically-
justified based on international standards, guide lines or recommendations in accordance with the 
WTO SPS Agreement.  Specifically, it is important  for Japan to bring its import measures into 
conformity with international st andards and guidelines established by CODEX and, particularly for 
beef and beef products, the World Organization fo r Animal Health (OIE).  Both concerns were 
identified in the last U.S. statement on Japan's Trad e Policy Review at this forum, but there has been 
no forward movement in either area. 
111. Further improvements are also sought from Jap an across additional areas as well.  These 
include removing barriers to create truly open  access to Japan's automobile market, improving 
transparency in the regulatory process, and taking steps to ensure Japan's information technologies 
and communications market is open a nd promotes fair competition.  It is also important for Japan to  WT/TPR/M/243 
 Page 19 
 
 
  take meaningful steps that improve access by fo reign suppliers to Japan's  government procurement 
market.  This means tackling issues such as the ex tensive use of single tendering, bid-rigging, and a 
lack of transparency in qualification requirements. 
112. The Secretariat points to the fact that Japan con tinues to keep large secti ons of its agriculture 
sector protected from trade.  To date, the United St ates has consistently indicated in the fora on 
Regional Trade Agreements its concern with the exte nt of Japanese tariffs that are not changed by 
Japan's bilateral and regional free trade agreements.  The practical effect of leaving such a large 
percentage of tariff lines untouched is to create weaker free trade agreements that, in many cases, 
leave Japan's market less open than its agreement partner or partners.  As a WTO matter, we wonder 
how Japan's RTAs can be explained in light of GATT Article XXIV. 
113. The United States is therefore encouraged th at Japan has begun a domestic discussion on 
steps to help Japan maintain a viab le agriculture sector that may bette r enable this sector to co-exist 
with substantially greater openness to internationa l trade in agricultural pr oducts. Addressing this 
challenge successfully will enable Japan to show great er leadership on trade issues overall in bilateral, 
regional, and multilateral negotiations. 
114. Japan is also looking forward to new opportuniti es for trade agreements.  Of specific interest 
to the United States is Japan's intere st in the Trans-Pacific Partnership, a high-standard agreement that 
the United States and eight other Members are jointly pursuing.  My Government has welcomed Japan's interest in this important initiative, and we are aware of Japan's domestic deliberations to 
consider its preparedness to seek participation.  How Japan faces challenges such as those I have 
identified in the effort to "open Japan" are integr al to Japan's ability to achieve the type of high-
standard FTA that the TPP partners are pursuing. 
115. Other steps are also important.  We welcome Japan's support in APEC to build upon and 
expand the momentum created during Japan's 2010 host  year, and we look forward to having Japan as 
a partner in the effort to promote a more open trad e and investment regime across the Asia-Pacific.  
We also urge Japan to take steps to implement, in  the very near term, the fourth update of the WTO 
Pharmaceutical Agreement, thereby joining all the ot her participants to the Agreement, including the 
United States, that have recently implemented the new list of products afforded tariff free access.  It is 
also vital that as Japan promotes new growth sect ors, it does so in a manner that is fully open to 
international competition and does not provide prefer ential treatment to domestic interests in a manner 
inconsistent with the scope and spirit of Japan's WTO commitments. 
116. I would like to reiterate our appreciation for Japan's active participation in the Doha Round 
negotiations.  I would also like to emphasize that we continue to value our close work with the 
Japanese government and our WTO partners to st rengthen and build on the WTO's rules-based and 
cooperative foundation.  But more work is needed to  reach a balanced and ambitious conclusion to the 
Doha Round.  We expect Japan, in particular because  of its significant fisheries sector, to contribute 
constructively in achieving an ambitious outcome in  the Doha fisheries subsidies negotiations.  To 
achieve a Doha outcome that results in the global economic growth necessary to spur development, all 
key players will need to make meani ngful market-opening contributions.   
117. In closing, the United States appreciates the e fforts made by Japan in regional and multilateral 
fora to promote the expansion of global trade, as well as the support that Japan has shown to maintain 
an open global trading system.  The United States is  also greatly encouraged by a new preparedness 
by Japan's Government to examine ways it can further open its market, including in traditionally 
sensitive sectors.  By taking bold decisions on this  front, Japan will greatly contribute to the cause of 
open trade and also play a stronger leadership role  in promoting free trade across all sectors.  The 
United States looks forward to a continued close partnership with Japan in all these areas.   WT/TPR/M/243 
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  HONG KONG, CHINA 
118. Hong Kong, China maintains extensive ties with Japan in trade and economic fields.  Japan 
was our third largest trading partner in 2009, th e third largest market for exports, and the second 
largest source of imports.  Among Asian economies, Japan was our second largest trading partner in 
2009, after the Mainland of China.  HKC's Japane se community, with some 26,000 people, is one of 
our largest expatriate communities.  Japanese bra nds and products are popular, as is Japanese culture 
manifested in cuisine, fashion, films, music and other entertainment.  In HKC, long queues from 
outside the ubiquitous Japanese restaurants, be they serving sushi, sashimi, tempura or ramen.  Indeed, 
HKC has been Japan's largest overseas market  for food and agricultural products since 2005, 
importing 22% of the total exports of such products in 2009. 
119. Japan also remains one of the favourite destinations for HKC t ourists.  Last year, half a 
million HKC people travelled there.  At the same ti me, Japan was HKC's third largest source market 
for inbound tourism, with over 1.3 million Japanese people visiting us last year.   We expect our 
strong bilateral trade relations with  Japan will continue to prosper. 
120. Before providing our comments on specific trade ar eas, we would like first to put on record 
our sincere appreciation for Japan's excellent chairman ship of APEC last year, cumulating in the very 
successful Leaders'Meeting in Yokohama.  Among ot her things, leaders from all 21 APEC Member 
economies provided a strong political signal for us to conclude the Doha Round this year, and this has 
helped to breathe some fresh air into the negotiati ons, as we have witnessed over the past few months.   
121. Turning to specific trade issues, we are glad to note that Japan has slightly reduced its simple 
average applied MFN tariff rate from 6.1% in 2008 to 5.8% in 2010.  It has also unilaterally 
eliminated or reduced the applied rates on some commodities, such as petroleum products and certain 
types of ethyl alcohol.  Besides, Japan has bound 98.8% of its total tariff lines; and the average bound MFN tariff at 5.9% in 2010 was very close to  the average applied MF N tariff at 5.8%, hence 
imparting a high degree of predictability to Japan's tariff regime.  That said, we note that the simple average applied MFN rate for footwear and headg ear remains higher than the rest (above 25% in 
2010).  We would encourage Japan to make improvement in these aspects. 
122. As to trade in services, the services sector constitutes a dominant part of the economies of 
both HKC and Japan.  We therefore share many goa ls.  We are both staunch supporters of pursuing 
continuous and progressive liberalisation of trad e in services and bringing about a successful outcome 
in services by the conclusion of the DDA negotiations .  We join hands in proposing ambitious 
plurilateral market access requests in sectors including audiovisual, computer, financial, 
telecommunication, logistics and maritime service s, which are sectors important for our two 
economies.  We also work very closely in dema nding reduction or elimination of the limitations on 
commercial presence and the MFN exemptions mainta ined by Members.  We appreciate Japan's 
active and valuable contribution and we look fo rward to continuous close cooperation with our 
Japanese colleagues in these areas. 
123. In line with Japan's valued efforts to bring about the Leaders'and Ministerial messages calling 
upon Members to fight against protectionism, we would like to encourage Japan continuously to improve the competitive environment of its services re gime, in particular in reducing the restrictions 
on foreign investment and lowering trade barriers. 
124. According to the Secretariat Report, Japan's  agricultural sector continues to receive 
substantial government support.  Th e total support estimates for agriculture in 2006-08 were 1.1% of 
GDP, which was close to the sector's contribution to GDP at 1.2% in 2009.  Despite a reduced 
average applied MFN tariff for agricultural products of 15.7% in 2010, when compared to 17.1% in  WT/TPR/M/243 
 Page 21 
 
 
  2008, protection for agricultural products was still si gnificantly higher than the overall average tariff 
of 5.8%. 
125. We fully appreciate that agriculture is a sens itive sector for Japan, and that there are policy 
considerations other than economic factors that Japan  needs to take into account in the negotiations.  
Nevertheless, given that agriculture remains a ke y driver for the overall outcome, we would like to 
call on Japan to exercise the greatest flexibility in  handling the remaining outstanding issues in the 
agriculture negotiations.  As noted in the Secretaria t Report, nearly half of Japan's farm workers are 
now over 65 years old.  We share the view that their retirement will present a timely opportunity for 
Japan to take greater strides in reforming its agricu ltural sector, not only to the benefit of Japan but 
also for the world trading community at large.   
126. On rules negotiations, Japan and HKC work  together in seeking practical and pro-
liberalisation improvements to the WTO disciplines so  as to prevent abusive use of trade remedies.  
HKC attaches great value to this long partners hip with Japan, which dates back to the Uruguay 
Round.  We look forward to continued co-operatio n with Japan as well as with other Members to 
bring the rules negotiations to a satisfactory conclusion. 
127. HKC and Japan are also close partners in pus hing forward the trade facilitation negotiations.  
We appreciate Japan's active and constructive cont ributions to advance the negotiations in this 
important area, as shown in the in tensified negotiations over the p ast weeks.  We also welcome 
Japan's plan to host a regional workshop on trade f acilitation in the Asia-Pacific area to share its 
experience on the implementation of various trade facilitation measures.  This will no doubt promote 
a better understanding of the various trad e facilitation measures being negotiated. 
128. One of Japan's trade policy priorities is to seek a further strengthening of the multilateral 
trading system and HKC shares this objective.  The team led by Ambassador Shinichi Kitajima here 
in Geneva plays a very active role in the WTO, including the DDA negotiations.  We appreciate their 
hard work and look forward to continuing to wo rk closely with them and other Members towards 
bringing the Doha negotiations to a successful conclusion.  
CANADA 
129. We are particularly pleased to be taking part in this Trade Policy Review of Japan, since 
Canada and Japan pursue similar aims on a number of issues relating to international affairs, 
particularly on the importance of ensuring that the international trading system is open, predictable 
and based on WTO principles. 
130. Canada attaches great importance to its trade re lations with Japan, which is one of its most 
important economic and trading partne rs.  Japan is our most important bilateral partner in the sphere 
of foreign direct investment in Asia.  Japanese stock in Canada amounted to US$13.1 billion at the 
end of 2009, while Canada's direct investment st ock in Japan reached US$3.6 billion at the end of 
2009.  Japan is also Canada's fifth largest partner wh en it comes to bilateral trade in goods.  Canadian 
goods exports to Japan amounted to US$8.3 billion in  2009, while imports of goods from Japan were 
valued at US$12.3 billion.  Coal is Canada's la rgest single export to Japan, followed by canola seed, 
while Japanese motor vehicles are the largest single category of imports into Canada. 
131. The past year has been marked  by a series of important milestones for Canada and Japan on 
the international scene.  On the one hand, Canada hosted the G-8 and the G-20 and Japan, for its part, 
organized a series of meetings leading up to the APEC Summit in Yokohama last November.  
Although the global economic recovery remains frag ile, the consensus achieved at those meetings 
sends an important and positive message regarding th e need to ensure sustainable growth, to resist 
protectionism and to open the way for free trad e and regional and international investment. WT/TPR/M/243 
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  132. Canada would like to congratulate Japan on the leadership showed by Prime Minister Kan, 
not only for hosting a highly successful APEC year, but  also in terms of the hard work that was done 
to forge a domestic consensus on the future of Japan's trade policy, as a nnounced in Japan's Basic 
Policy on Comprehensive Economic Partnerships re leased just prior to the APEC Summit.   
133. Canada does not believe that these bilateral, re gional and multilateral approaches are mutually 
exclusive.  We know this from our experience in  negotiating the NAFTA at the same time as the 
WTO Uruguay Round of negotiations was ongoing.  The c onclusion of both led to enormous benefits 
for the Canadian economy, and so we are pleased to  see Japan moving resolutely ahead, armed with a 
new and more forward-looking trade policy.  
134. Canada commends Japan for refraining from intr oducing new trade barriers since its previous 
Trade Policy Review in 2009, notwithstanding the formidable challenges faced by the Japanese 
economy during this period that included a sharp drop in exports, a contraction in domestic demand, and a rising yen.  
135. Canada appreciates the very ac tive role Japan plays in the WTO's Committee on Government 
Procurement and Japan's extensive contributions to facilitate the conclusion of the Agreement on 
Government Procurement negotiations. 
136. However, there are areas relevant for Japan's trade policy where Canada harbours concerns 
and believes that improvements can be made. Relate d to beef market access, as is noted in the 
Secretariat Report, Japan's process of lifting import restrictions includes the implementation of a risk 
assessment that takes into account the World Organi zation for Animal Health guidelines.  It has now 
been over two years since Canada formally request ed that Japan undertake such a risk assessment on 
Canadian beef derived from cattle under 30 months of age as a first step toward  full beef access.  We 
believe that Japan, as a country committed to a multilateral trading system underpinned by rules and 
objective science, should proceed with this risk assessment as soon as possible.  
137. Also as noted in the Secretariat Report, Japan has announced that it will promote the use of 
domestic wood with a target of covering more than  half of domestic dema nd for wood with domestic 
supply.  In this regard, Canada stresses the need for program eligibility and implementation to be non-
discriminatory, consistent with WTO obligations. 
138. Finally, this Trade Policy Review period for Jap an has also seen changes come into play for 
Japan Post, with a new bill scheduled to be reintrod uced in the current Diet session.  It is Canada's 
hope that the implementation of reforms to the regul atory and legislative regime governing Japan Post 
will ensure a level playing field for private service providers in the Japanese insurance sector, and will 
respect Japan's international trade obligations  under the WTO General Agreement on Trade in 
Services.  
COLOMBIA 
139. At the time of Japan's last Trade Policy Re view, the world was facing the worst economic 
crisis since the Great Depression of 1929.  The magn itude of the crisis in Japan was reflected in a 
25% fall in exports and a 5.2%  contraction of GDP in 2009, together with an increase in debt which 
rose to 220% of GDP in the same year.  The latte r figure led the risk rating agency Standard and 
Poor's to reduce Japan's long-term debt rating for th e first time since 2002.  In  this connection, Japan 
should continue with tax reforms to curb the growi ng public debt and maintain fiscal discipline, these 
being essential conditions for maintaining market conf idence in its public finances.  This is also 
necessary in view of the importance of the Japanese  economy to global prosperity and the expansion 
of international trade.  WT/TPR/M/243 
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  140. Another subject of concern is the appreciation of the yen - given the potential loss of export 
competitiveness - and the relatively low level of FD I, a natural driver of economic growth.  The 
measures that are being adopted, in particular the New Growth Strategy, are steps in the right 
direction.  Although these are not easy times, the coun try of those disciplined and austere warriors, the 
samurai, should pluck up the spirit to tackle these difficulties without affecting trade. 
141. It is gratifying that, in the midst of the crisis , Japan has resisted protectionist pressures and, as 
is noted in the Secretariat report, has "refrain ed from introducing new trade barriers".  We also 
congratulate Japan on the measures taken to liber alize its trade regime:  many of the applied 
MFN rates are the same as the bound rates, and the arithmetic average of applied tariffs in 2010 was 
5.8%, below the 2008 level of 6.1%. 
142. Nevertheless, it is noteworthy that agricultura l products, made-up articles and articles of 
apparel - sectors of major interest to developing co untries - continue to be subject to tariff peaks, 
quotas, State trading practices and a high level of domestic support in the case of agriculture.  We urge Japan to improve access to the above-mentioned sectors and to services, given the high level of 
protection and relatively low competitiveness in those sectors. 
143. Colombia is grateful for Japan's continued cont ributions to technical and financial assistance, 
including official development aid.  Between 2006 and 2008, the financ ial assistance provided 
amounted to US$17.66 billion, well above the target level of US$10 billion. 
144. At the bilateral level, Colombia and Japan recently concluded a reciprocal investment 
promotion and protection agreement, which estab lished a transparent legal framework for the 
promotion and protection of FDI.  We are also  negotiating a double taxation agreement.  These 
two instruments open the way for the negotiatio n of an economic complementarity agreement 
between our two countries.  We believe that these  two agreements consolid ate our relations with 
Japan, a key player in the Asia Pacific, which is a region of priority importance for Colombia's trade 
policy in the coming years. 
145. Trade between our two countries reached US $1.327 billion in 2010, with a deficit for 
Colombia.  Our main exports to Japan are coff ee, flowers and ferronickel.  Imports from Japan 
included machinery, vehicles and spare parts, chem icals and metal-based products.  Japanese FDI in 
Colombia amounted to only US$54 million in 2002-2010,  which is barely 0.2%  of total FDI in our 
country.  We hope that the agreement recently sign ed will spur even more bilateral investment.  
Colombia received 4,987 Japanese tourists in 2009. 
146. Lastly, we wish to highlight the active role pl ayed by Japan in the Doha Round negotiations.  
We particularly support its efforts as coordinato r of the Friends of the Anti-Dumping Negotiations 
group, which is working to clarify and strengthen th e disciplines of the Agreement and eliminate trade 
distorting measures.  We likewise note with inter est the basket approach  advocated in the NAMA 
negotiations. 
NEW ZEALAND 
147. Japan is one of New Zealand's most signifi cant trade and investment partners, and we 
congratulate it on the positive tone of the current Re view.  In light of Japan's economic importance to 
New Zealand, we very much appreciate the fact th at not only did Japan not take any significant 
protectionist measures during the recent global ec onomic crisis, but it has embarked on a dynamic 
process of strengthening and liberalising its economy through the Economic Growth Strategy 
announced last year.   Japan has a major contribution to make to efforts to conclude the Doha Round 
negotiations this year. WT/TPR/M/243 
Page 24  
 
  148. New Zealand also welcomes Japan's adoptio n of its "Basic Policy on Comprehensive 
Economic Partnerships" in November  2010 which indicated that Japan would seek to raise the quality 
of its FTAs and widen the range of FTA partners.  We would encourage Japan to take the necessary 
steps to liberalise protected sectors of its economy.  As well as strengthening Japan's capacity to promote trade liberalisation at the multilateral level, we  believe that this would also help to create the 
conditions for Japan to participate in high qualit y, comprehensive, future-orientated free trade 
agreements.  In this context th e Japanese Government expressed inte ntion to consider joining the 
Trans-Pacific Partnership negotiations at the sa me time as it strengthens the international 
competitiveness of its agricultural sector is particularly significant and welcome. 
149. New Zealand is also pleased to note that Japan  has revised its plant protection laws and SPS 
measures to bring them more into line with inte rnational standards and norms.  The new Quarantine 
Pest List in particular is welcome as it allows  trading partners to be tter understand Japan's import 
requirements.  We trust that work on expanding bo th the quarantine pest list and the non-quarantine 
pest list will continue and we look forward to Jap an including a number of organisms of concern to 
New Zealand in the revised lists.   
150. As the current Review notes, an underlying them e of Japanese policy in the agricultural sector 
is the desire to improve food security.  Japan h as made important contributions to international 
discussions on this issue, such as the inaugural AP EC Ministerial Meeting on Food Security held in 
Niigata last year.  We expect that the changes to Japan's agricultural policies which are currently 
under consideration will require a somewhat different  approach to food security.  We encourage Japan 
to consider in a positive way the opportunities fo r enhancing food security which would be created 
through an efficient, more productive domestic agricultural sector as well as stronger food trade 
relationships with partners such as New Zealand,  which are committed to meet Japan's food safety 
requirements based on relevant international standards.   
151. Prime Minister Naoto Kan has indicated that Jap an stands on the cusp of its third "national 
opening" since the Meiji Restoration.   In that c ontext, while welcoming Japan's contribution to the 
multilateral trading system to date, given its c ontinuing global economic significance, we look to 
Japan to take a lead in adoptin g economic policies designed to meet the evolving challenges of the 
21
st century global economy.  While this will inevita bly require difficult adjustments, in the longer 
term it holds out the prospect of making Japan 's economy stronger, more competitive and more 
attractive as a trade and investment partner.  We lo ok to Japan for leadership and inspiration in the 
work which all WTO Members need to do now to meet the challenges involved in maintaining the 
relevance and credibility of the multilateral trading system.   
SINGAPORE 
152. Japan is a valued trade and investment partne r of Singapore, and our long-standing economic 
relationship had broadened and deepened over the ye ars. Japan was Singapore's sixth largest trading 
partner in 2010, with bilateral trade registeri ng a significant 24% increase to reach US$43.6 billion. 
Singapore is also one of Japan's top ten trading partners in Asia last year. 
153. In terms of investment, Japan continues to  be Singapore's top Asian investor, with 
investments ranging from electronics, chemicals and engineering services to biomedical sciences, water technology and logistics services. Japan is  also one of Singapore's top ten investment 
destinations in Asia, particularly in the area of r eal estate, food and beverage, and logistics services.  
154. Our strong bilateral economic cooperation was also  reflected in the 2002 signing of the Japan-
Singapore for a New-Age Economic Partnership Agreem ent (JSEPA).  In demonstration of our joint 
commitment to trade liberalization and strengthening  our bilateral partnership, JSEPA had since gone 
through two timely reviews to improve the scope of  its coverage. Singapore looks forward to future  WT/TPR/M/243 
 Page 25 
 
 
  reviews to improve JSEPA as a platform to spur bilateral trade and investment flows to greater 
heights.  
155. Singapore notes from the Secretariat's Report that Japan has refrained from introducing new 
trade barriers since the last Review, despite the fi nancial crisis.  Instead, it has introduced a few 
measures aimed at further liberalizing its trade and trade-related regime.  Japan's steadfast 
commitment to trade liberalization and open trade is  highly commendable.  We welcome these efforts, 
as well as initiatives such as the proposed cuts to corporate tax rates to encourage inward FDI.  
156. Japan's contribution to greater regional economic integration is invaluable. We would like to 
congratulate Japan on the successful hosting of APEC last year, and welcomes Japan's interest in participating in the Trans-Pacific Partnership (TPP). In the ASEAN context, Japan's commitment 
towards increasing trade and investment relations in  the region is highly valued, particularly its 
commitment to the ASEAN-Ja pan Comprehensive Economic Ag reement (AJCEP) and other 
initiatives for regional economic integration. Singapo re welcomes Japan's continued engagement of 
the regional countries at the ASEAN platform.  
157. Nevertheless, Singapore also notes that Japan faces longstanding structural problems that are 
reflected in sluggish growth during the past decade in both real GDP and total factor productivity.  In 
responding to these problems, Singapore urges Japan to once again pick up the pace and push ahead 
with far-reaching structural reforms particularly in  the services sector whic h has a lower level of 
productivity than the manufacturing sector.  We also  encourage Japan to contribute further to the 
sustenance of an open multilateral trading regime  through the reduction of MFN tariff rates and 
government support particularly in the agricultural sector. 
158. Japan has played an active and responsible role  at the WTO and on the global economic stage.  
Japan's decision not to introduce new trade barrier s during the global financial crisis is a clear 
example of its leadership and commitment to upholding the multilateral trading system.  Japan is also an active participant in all areas of the Doha Round negotiations. Singapore is committed to working 
with the Japanese Mission to bring the DDA negotiations to a successful conclusion. 
NORWAY 
159. Japan is the world's third largest economy and it is  also one of the wealthiest countries in the 
world.  Japan is an important economic engine, both in Asia and globally, and it is therefore with 
great interest that we have studied the Report on the Trade Policy and Trading Environment of Japan.  
Allow me to make some general remarks and rai se a couple of points of particular concern. 
160. Currently Japan is facing economic challenges but in the past Japan has been able turn its 
challenges into advantages. Hopefully this will also be the case this time. W ith a remarkable stability 
in the financial system, a solid currency and an in novative spirit that contributed to Japan's economic 
growth in the first place, Japan has money strength that will help them to overcome the challenges. 
161. Japan is a major trading nation, the economy is open with generally low tariffs and few 
restrictions on trade as evidenced in both Reports  presented to this session.  As the Trade Policy 
Review Report confirms Japan is an active par ticipant in the WTO.  No rway and Japan are both 
members of the G10 Group, and we enjoy cooperation in  many fields of mutual interest within the 
WTO, in the rules and the antidumping negotiations our ambitions and priorities correspond closely, and Norway and Japan works fruitfully together as Members of Friends of Antidumping Negotiations 
(FANs), and we have submitted joint proposals on certain issues.   
162. Maritime transport is an important facilitator of world trade and is very important for Norway.  
Japan is the second largest market for these services. Norway believes that better access to and supply WT/TPR/M/243 
Page 26  
 
  of maritime transport services on open and equal mark et conditions is beneficial to all WTO Members 
and crucial to economic developmen t.  We believe improved offers and binding commitments in the 
WTO are important for fair competition and economic growth. 
163. With reference to paragraph 20 in the Report by  Japan we note the statement that "... Japan 
remains strongly committed to the liberalization of  trade in services".  We  trust that Japan will 
continue to play an active role and work with  other WTO Members to pursue a successful outcome 
both in services and of the Doha Round, and we a ppreciate the constructive contribution from Japan 
as Chair of the Maritime Friends Group. 
164. Norway and Japan enjoy excellent trade rela tions and Japan is Norway's second largest 
trading partner in the increasingly important Asian market.  Japan is Norway's 17
th largest export 
market and the 12th largest source with regards to imports.  However, this does not actually reflect the 
actual level of economic cooperation between the two countries as numbers for the services sector are 
not included.  Japanese-Norway economic cooperation did not decrease significantly as a result of the 
international financial crisis, as Norwegian imports from Japan fell considerably less than the overall 
Japanese export.  Seafood represents approximately 30% of the total export value from Norway to 
Japan, and this is about 5% of the total Norweg ian seafood export, and Japan is thus the seventh 
largest market for the Norwegian seafood.  Continue d growth in this area is  expected; for instance, 
Japan is currently the fastest growing market for No rway's exports of trout.  Technology, particularly 
greentech and nanotechnology as well as design, communication system, and tourism are also important areas where economic cooperation betw een Norway and Japan is considerable. 
165. While the general assessment is quite positive we  remain concern about certain aspects of the 
trade policy of Japan.  Firstly, under examining what  still can be done to further improve Japan's trade 
with both Norway and other countries, Norway finds that Norwegian exporters experience difficulty with different standards.  Japan requires foreign companies to adjust  to Japanese industrial standards 
as shown in the Secretariat Report: only about 48%  of the GIS are comparable to international 
standards.  International standards and harmonisat ions are important aspects of a well functioning 
international market hence it will be interesting to hear whether Japan's policie s and practices in this 
area have changed since the last TPR.  Also we would like to know whether Japan has any plans for 
further harmonisation with international standards. 
166. Secondly, as mentioned earlier a key aspect for the trade relations between Norway and Japan 
is fish and seafood.  In this context, we note th at Japan continues to apply import quotas for certain 
fish products which we believe are not in line with  the WTO rules.  We en courage Japan to abolish 
these quotas. 
167. In conclusion, we are confident that this Review  will be useful both for Japan as well as for 
the other participants, and we look forward to r eceiving answers to our comments as well as to our 
written questions which were submitted pr ior to this meeting.        
CHILE 
168. The global economic crisis ended a period of  prolonged expansion for Japan during the 
previous decade.  The decline in  Japanese exports led the country into a recession which was actively 
countered by the authorities through fiscal and m onetary policies leading to renewed economic 
growth in 2010. 
169. Japan refrained from taking protectionist me asures.  However, as was mentioned this 
morning, the Japanese economy faces major challenges:  high unemployment, a sizeable fiscal deficit, 
a high level of government debt and lagging productivity in major sectors.  This was recognized by  WT/TPR/M/243 
 Page 27 
 
 
  the Japanese authorities when they  introduced the "New Growth Strategy", part of which was 
mentioned by Mr Kagawa this morning. 
170. Japan's two most backward sectors in terms of productivity are agriculture and services.  It is 
no coincidence that both sectors are protected from international competition, the former through 
tariffs and subsidies to domestic production.  The backward state of the services sector is illustrated 
by the low rate of import penetration of services an d the share of foreign affiliates in total national 
turnover. 
171. Both the World Bank and the OECD have indi cated that Japan should make much greater 
efforts to facilitate business activity and that, if it is to continue growing in the future, the 
Japanese economy must undergo extensive structural  reform centred on the improvement of 
productivity.  The Doha Round provides a significant opportunity for Japan to align the results of 
these negotiations with the structural reforms that are to be implemented. 
172. We appreciate Japan's adherence to the multilateral trading system.  Japan is an important 
actor in all WTO and Doha Round activities, particul arly through its leadership of the Friends of 
Anti-Dumping Negotiations group, known as FANs. 
173. At the bilateral level, Chile views positiv ely the results obtained from the Free Trade 
Agreement, which I had the honour to initiate, and wh ich has been in effect since September 2007.  
Following the downturn in bilateral trade in 2009 caused by the global economic crisis, in 2010 we 
saw a major recovery of international trade.  We welcome Japan's possible participation in the 
Trans-Pacific Partnership (TPP) process and the possible strengthening of the APEC process through 
the Free Trade Area of the Asia-Pacific (FTAAP). 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
174. Japan has long been a major trading partner of our s.  According to the latest statistics, in 
2010, Japan was again our largest source of goods imports, worth US$52 billion, and our fourth largest export destination, worth US$18 billion.  The total value of bilateral trade in goods between us 
in 2010 was US$70 billion, an increase of 38% compar ed with 2009.   Furthermore, Japan has been 
one of our major sources of foreign direct investme nt.  We therefore enjoy an important long-term 
cooperative relationship between us. We look forwar d to strengthen this economic cooperation with 
Japan even further in the future through c ontinued bilateral and multilateral dialogue.   
175. As mentioned in both Reports prepared for this  TPR, Japan has always been a firm supporter 
of free trade and a rules-based multilateral trading system.  On the multilateral front and in the Doha Round trade negotiations, in particular, we almost  share the same positions in all areas of the 
negotiations.  In this respect, I would like to ex press our appreciation for the very close working 
relationship between our two Missions  in Geneva under the leadership of Ambassador Kitajima.   
176. I would also like to approach Japan when it was the host economy for APEC in 2010, as a 
fellow-member of APEC ourselves.  We appreciate Japan's engagement and contribution to the whole 
process including supporting the early conclusion of the Doha Round.  At the same time, we 
understand that Japan has embarked on several regiona l and bilateral initiatives.  In this context, I 
would also like to remind Japan, for the benefit of both economies, to please consider put our country 
on its priority list for entering the negotiations for a free trade agreement. 
177. Japan, like most of us, has been feeling the e ffects of the unprecedented global financial crisis 
and economic downturn since 2009.   We recognize that it has not only refrained from introducing 
trade restrictive practices, nevertheless, there are high expectations among Members of some new 
trade liberalization measures being introduced soon.   Along with other Members, my delegation is WT/TPR/M/243 
Page 28  
 
  very interested in the effects of the crisis on the Japanese economy and in learning more about the 
fiscal stimulus packages and structural reforms th at Japan has put in place in the hope of overcoming 
the problem of its long-stagnant economy. 
INDONESIA 
178. Japan has been for many years and still re mains Indonesia's major economic and strategic 
partner.  Since Indonesia and Japan had been implementing the Economic partnership Agreement 
(EPA) in 2008, the trade volume between Indonesi a and Japan had been increased. This achievement 
reflects an outstanding effort between the two co untries. We believe the IJ-EPA will not only 
fostering bilateral economic relati ons to new heights, but also serve as a good model for removing the 
tariff and non-tariff barriers to trade in goods and services .  
179. As one of Japan's important trading partners, Indonesia has keen interest in Japan's trade 
regime. With this in mind, we have submitted sever al written questions concerning the various aspects 
of Japan's trade and economic policies. We would appreciate if the Japanese delegation could provide 
responses to our questions .  
180. In this Trade Policy Review occasion, we would also like to take the opportunity to deliver 
some comments on the economic and trade polic ies of Japan in which we believe further 
improvement will be made. 
181. In reference to the Secretariat Report, Japan  remains imposing non-tariff measures such as 
import prohibition and quantitative r estrictions on imports. Indonesia shares the concern over several 
quantitative imports restrictions for certain fish pr oducts, and import restrictions for tobacco leaves, 
opium, rice, wheat, barley, and also for dairy products.  
182. I am also pleased to inform you that Indonesia is currently one of the members of 
Commission for Conservation of the Southern Blue Fin Tuna (CCSBT) and Indian Ocean Tuna 
Commission (IOTC). Concerning market access on fi shery products, the Indonesian fishery agency 
and the Japanese fishery agency have agreed to c onduct further discussions on fishery products, such 
as tuna products.  
183. With regard to some revisions applied to the standards and specifications of Japanese food, 
Indonesia shares some concerns on the maximum residue limits Levels  (MRLs) applied for pesticides, 
changes in food additives and the determina tion of import requirements for fresh fruit. 
184. During the global economic crisis, the Jap anese yen currency had experienced an 
appreciation, where such appreciation resulted a quite significant impact to Indonesia's foreign debt in 
yen. In this regard, we would like to seek Japan  assurance to ensure necess ary policies undertaken to 
control and stabilize the yen currency.  
TURKEY 
185. Following the sharp contraction of the Japan ese economy in 2009, the Japanese economy has 
started to recover from the crisis in 2010. It seem s that the recovery is strong, partly result of 
substantial increase in exports. It must be noted with appreciation that Japan has not resorted any 
protectionist measures during this period. On the co ntrary, it has taken some measures to liberalize its 
trade regime in addition to the impressive stimulus package. Nevertheless, the structural problems still 
persist. As pointed out at its previous Review, the fiscal deficit which, compared to 2007, was almost 
doubled as a percentage of GDP has b een still an area for concern. The policies to tackle this problem 
may have significant implications for the global economy.  WT/TPR/M/243 
 Page 29 
 
 
  186. While the Secretariat's Report points at a slowdow n in Japan's efforts to reform its economy, 
it must be also pointed out that the Japanese governme nt is addressing this thro ugh the introduction of 
the New Growth Strategy. It is worth mentioning that in line with this new policy, more active 
policies towards encouraging the foreign investment are adopted.  
187. Turkey appreciates the vital role Japan plays in global trade and financial system. While 
pursing various bilateral and regional arrangements,  Japan is a strong and committed supporter of the 
multilateral system. It is also an active participan t of DDA negotiations.  In the DDA, we have close 
cooperation with Japan especially in rules negotiations . We are ready to work with Japan and others to 
carry the DDA to a successful conclusion in 2011. 
188. On this occasion, we must acknowledge Japan's role as a donor to the development at regional 
and bilateral levels. Japan has been providing importa nt amount of direct and technical assistance to 
developing countries, including Turkey.  
189. We maintain very good political and economic relations with Japan. The bilateral trade 
volume between Turkey and Japan was around than 3 billion dollars in 2010. Japan ranks eighth in 
the total FDI in Turkey. On this occasion, we mu st also recognize Japanese companies'contribution to 
the improvement of infrastructure in Turkey. I w ould like to emphasize that Turkey would like to 
further deepen its commercial and investment relations with Japan.  
190. With regard to Japan's trade regime, we would like to raise several points. First is the low 
level of alignment with the international standard s.  Taking into account the share of Japan in the 
world economy, we believe that addressing this issue is important to help remove some of the barriers 
before international trade. 
191. Second is the high level of protection accorded to leather and footwear sectors.  Duties for 
these products which are among important export pr oducts of a number of developing countries 
including Turkey are considerably higher compared even to some agriculture products. We hope that 
the Japanese authorities will phase out such ra tes at the end of the DDA negotiations.  
192. Thirdly, the Secretariat's Report points out that Japan intends to introduce a new direct 
payment support system in agriculture for certain cr ops. We commend this as a further step to move 
away from production supports.   
193. Lastly, on services, the Secretariat's Report ar gues that pace of liberalization seems to be 
slow. We hope Japan will reverse this trend in the coming months. As the largest contributor to GDP, 
further easing of doing business in services area may become the key to attract more foreign 
investment and to improve the productivity which are the objectives of the new growth strategy of 
2010.  
EUROPEAN UNION 
194. First of all a few facts demonstrating the significance of this Review for the WTO 
membership as a whole and for the EU in particular .  Japan is one of the world's largest economies, 
accounting for around 1.9% of the world population and around 9% of world GDP. After a decade of 
stagnation, Japanese economic growth has been cons olidating since 2003-2004, with a slow average 
growth rate for the period 2005-07 of  2.1% and then being hit by the recent recession which slashed 
GDP by 6%.  
195. A highly developed economy and major global trad er and investor, Japan is an important 
partner for the EU. Japan is the EU's sixth largest  trading partner overall, the EU's seventh largest WT/TPR/M/243 
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  export market and the sixth largest importer into the EU. The European Union is also a very important 
market for Japan – it is number 3 in Japan's imports and exports. 
196. However, when we look at investment – ther e is room for substan tial improvement. Japan 
should be a major destination for European FDI, in  the same way as Europe is for Japanese investors. 
But this is not the case. Although the trend in FDI flows has been more dynamic over the past three 
years with some "rebalancing" of investment fl ows, foreign and European investment in Japan 
remains very low in absolute figures (around 4% of GDP), in particular when compared to the EU 
(around 37% of GDP). 
197. In recent years, relations between Japan and the EU have broadened far beyond trade. We are 
like-minded global partners and are working togeth er towards a comprehensive and action-oriented 
partnership and a deepening of our bilateral relati ons. To that end, an EU-Japan Joint High-Level 
Group was set up at the 2010 EU-Japan Summit, w ith the task of identifying options for the 
comprehensive strengthening of all aspects of Japan-EU relations. 
198. The EU and Japan have common interests in the world trading system and we share the 
conviction that the multilateral, rule-based tradi ng system under the WTO remains the most effective 
and legitimate means to manage and expand trade re lations between countries.  Most importantly, the 
EU and Japan continue to be committed to the successful conclusion of the DDA. 
199. Having made these general observations, I woul d like now to draw Japan's and Members' 
attention to a number of Japanese economic and trad e policy measures of interest to the EU.  While 
our bilateral trade relations with Japan are predom inantly smooth sailing, there are areas where we see 
significant room for policy and regulatory improvement in Japan. I regret to note that despite of some 
incremental progress in a number of areas, most of our concerns were already highlighted during the 
ninth Review in 2009. 
200. Regulatory hurdles to trade in goods, services, investment and public procurement remain 
high. In this regard, we welcome the steps describ ed in the reports concerning Japan's activities on 
regulatory reforms, but we also note the finding in the Secretariat's Report that the pace of structural 
reforms has slowed down since 2009.  We acknowledge Prime Minister Kan's policy intention to bring 
Japan's economy back to the growth track and to  use the opening of the Japanese economy to foster 
economic growth and increase employment. The EU is highly interested in learning more about 
Japan's "New Growth Strategy" and its impact on trade, investment and more generally on the business environment as resulting from Japan's programme of domestic regulatory reforms, 
announced for March 2011. 
201. Looking at investment, the level of inward FD I in Japan continues to be low compared to 
other major economies. It is high time that the st ructural obstacles to inv estment in the Japanese 
market be removed. Not only would Japan be im proving market access, but it would also serve 
Japan's interests at a time when many companies are seeking to tap into foreign sources of capital.  
The Secretariat's Report states that since the ninth review, Japan has adopted measures to facilitate the 
approval of FDI and we encourage Japan to continue to do so. 
202. When it comes to public procurement, we not e that despite Japan being a party to the 
Government Procurement Agreement, it has committed  only a small share of its procurement market 
(Japan's statistical report mentions some €12 billion - slightly more than just one of the EU's 27 
Member States, namely Sweden), thus opening only a very small "window of opportunity" to foreign 
bidders. Just an example: Japan's restricts the ac cess to the procurement of its railway and urban 
transport operators through the "operational safety clause" in the GPA. Other impediments are the 
high thresholds in public works, administrative hurdles for suppliers (for instance registration and  WT/TPR/M/243 
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  qualification systems like keishin ), unclear system of remedies at local level and a non-codified legal 
system in procurement. 
203. In trade in goods, the EU's main concern is re lated to non-tariff trade barriers – where Japan's 
technical requirements in a number of important areas diverge considerably from international standards or add specific, cumbersome and ev en redundant procedures or requirements.  
204. Conformity assessment procedures are burdensome,  not based on international practices and 
are often performed or controlled by state bodies instead of independent entities. These practices are 
particularly common in the following sectors: pharm aceuticals, medical devices, telecommunications 
equipment, road vehicles, chemical substances a nd food additives. Amongst friends one has to be 
direct: Japan should enhance convergence of its sta ndards and regulations to international standards 
and practices and take effective and meaningful steps towards streamlining its conformity assessment 
and regulatory approval procedures, which are unnecessarily burdensome or lengthy compared to the 
international norm. 
205. This is particularly urgent with regard to  the approval procedures for new and innovative 
products and technologies. Just an example: when it comes to pharmaceuticals and medical devices, 
the shelf life of products is often shorter than the time it takes for the Japanese authorities to approve 
the placing on the market of these products. 
206. Time lag is also an important issue in the ar ea of food regulation. Japan still lags behind other 
countries in the process of approving food additives . The EU calls on Japan to accelerate approval 
procedures for food additives that are widely used around the world and that have been assessed and 
found safe by the competent international bodies. 
207. I would also like to raise the ban that Japan continues to impose on imports of beef from some 
EU Member States on the justification that this is necessary to prevent the spread of BSE. Most of the 
EU Member States from which beef imports are prohi bited by Japan have been classified as countries 
with "negligible risk" or "controlled risk" pursuan t the World Organization for Animal Health (OIE) 
Code that stipulates the conditions under which be ef and beef products can be safely traded. By 
contrast, Japan does allow beef to be imported from a non-EU country with OIE status of "negligible" 
and "controlled risk". The matter is straightforward: the EU calls on Japan again to review the ban on 
imports of beef from EU Member States and ensure that they get the same treatment as other WTO Members. 
208. Last, but not least, I would like to draw a ttention to the update of the Pharmaceutical 
Agreement, which gives duty free treatment to pharm aceutical products in the participating countries 
– Japan participates in this agreement stemming fro m the Uruguay Round. This agreement is regularly 
updated, the fourth update has just been finalised a nd is implemented by all pa rticipants except Japan. 
Could Japan please indicate when the agreed lis t of duty free products and substances will be 
implemented? 
COSTA RICA 
209. Costa Rica is participating with great interest in  this Trade Policy Review of Japan, which is 
an important trading partner.  The year 2010 saw a major recovery in Costa Rican exports to the 
Japanese market, following a decline between 2008 and 2009.  In the first 11 months of 2010, exports 
increased by 44% compared with the same period of th e previous year.  Costa Rica's exports to Japan 
cover a great variety of products, both in the in dustrial sector (e.g. information technology products, 
electrical conductors and rubber tyres), and in agricu lture (including coffee, fruit juices and plants).  
Japan, for its part, exports mainly vehicles, prin ted circuits, iron and steel and other manufacturing WT/TPR/M/243 
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  products to the Costa Rican market.  In overall terms, bilateral trade between 2000 and 2009 rose 
from US$265 million to US$660 million, with an annual average growth rate of 12%. 
210. Costa Rica applauds Japan's decisive support fo r the multilateral trading system and its active 
participation and commitment to ensuring that  the Doha Round negotiations reach a successful 
conclusion.  Costa Rica and Japan have the shared  objective of improving Articles V, VIII and X of 
the GATT 1994 through the future agreement on trade f acilitation, and in this area our countries have 
collaborated closely as members of the Colorado Group.  In NAMA, Costa Rica welcomes Japan's 
efforts to find a solution to the issue of sectoral s through its "basket approach" initiative.  As members 
of the Friends of Anti-Dumping Negotiations group, our countries also share an important commitment to strengthening the rules in that area, mainly so as to ensure that the benefits achieved 
through improved market access are not impaired by unclear and imprecise rules.  Similarly, my 
delegation shares Japan's interest in strengthening the rules of the WTO dispute settlement system, as 
the cornerstone of this Organization. 
211. Both the Secretariat report and the policy presentation made by the Japanese Government 
make abundant reference to the impact of the recen t crisis on the Japanese economy and to its effects, 
including a sharp decline in exports, the main engine of economic growth.  Bearing in mind in 
addition that the recovery witnessed in 2010 is still fragile, it is clearly important for the Japanese 
Government to implement policies to boost dom estic demand and contri bute to the economic 
recovery.  Costa Rica encourages Japan to prevent su ch measures from being used as trade barriers to 
achieve solely protectionist aims.  In this connec tion, the Secretariat report emphasizes that, since its 
last Trade Policy Review, Japan has refrained fro m introducing new trade barriers, a fact which 
Costa Rica welcomes.  However, the report also indicates that, during this same period, few measures 
were adopted to liberalize the trade regime. 
212. One noteworthy point referred to in the Secretariat report is the high level of protection 
afforded to the agricultural sector, through differe nt measures including high tariffs, tariff quotas and 
domestic support policies.  As a result, according to OECD data, total support to agriculture is 
estimated to be of a magnitude similar to the sect or's contribution to GDP in percentage terms.  
Costa Rica welcomes the recent announcement by the Japanese authorities, which is referred to in the 
report, that they will be promoting internal re forms in the sector to achieve greater openness. 
ARGENTINA  
213. Bilateral trade between Argentina and Japan s howed encouraging signs of recovery for both 
countries in 2010.  Imports from Japan rose from US$879 million to US$1.14 billion, coming very 
close to the levels they had achieved before Arge ntina's severe crisis in 2001, which had a seriously 
adverse effect on all the country's  economic variables.  Argentine e xports to Japan have practically 
doubled in comparison with the levels recorded dur ing the last decade:  in 2010 they amounted to 
US$812 million. 
214. These figures provide unambiguous evidence of a revi val in bilateral trade, although it is still 
far from achieving its full potential, bearing in mind the complementarity of the two economies.  
Japan is a net importer of foodstuffs and one of th e world's largest markets for food, while Argentina 
aspires to be a significant exporter of such products to Japan.  At the present time, however, Argentine 
exports account for a very small percentage of Japan's purchases. 
215. In this connection, my delegation wishes to express its concern at the difficulties encountered 
by Argentine exporters in the face of sanitary a nd phytosanitary regulations  which frequently impose 
requirements that are stricter than international st andards.  For this reason, we wish to urge the 
Japanese Government to streamline the processing formalities implemented by the Ministry of 
Agriculture, Forestry and Fisheries in respect of san itary requirements, and in particular to open up  WT/TPR/M/243 
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  the market for fresh meat from south of the 42nd parallel, as a region free from foot-and-mouth disease 
without vaccination. 
216. In more general terms, Argentina is seeking to further increase its trade relations with Japan 
in various areas.  Our capitals are working on a far-r eaching plan to enhance bilateral relations.  It 
may be recalled that Japan is one of our most important  partners in terms of cooperation.  It is also a 
major source of FDI, particularly in the automotiv e sector.  It should be emphasized that the Toyota 
company announced a few days ago that it would be making major investments in 2011 which will 
increase production levels at one of its main affilia tes in the province of Buenos Aires by 50%. 
217. We have carefully examined the Secretariat report and the Japanese Government report, and 
we note that the Japanese author ities announced in June 2010 a plan of economic revival and a new 
fiscal management strategy.  We trust that there w ill also be continuity in the structural reform 
process, with the aim of strengthening competition policies and creating new trade opportunities.  We 
have every confidence that these reforms will contri bute to an improvement in all aspects of trade 
policy, especially with regard to trade in agricultural products. 
NIGERIA 
218. As one of the largest trading na tions in the world that continues to make major contributions 
to the growth of the global economy, Nigeria considers today's 10th TPR of Japan as highly 
significant, particularly as this would be the s econd exercise since the aftermath of the global 
economic and financial crisis. In that regard, Nigeria is happy to note  that in spite of the contraction in 
the Japanese economy, during the period under review, due to the sharp fall in exports by 25% in 
2009, the Government has refrained from introducing ne w trade barriers.  We are also encouraged to 
note from the Secretariat Report that Japan has continued to adopt measures to increase the 
transparency of its trade and trade-related polic ies, practices and measures, thereby enhancing 
Government's accountability to the public. Nigeri a believes that it is this business-friendly 
environment that significantly accounts for Japan's improved economic situation since its previous 
trade policy Review.  Nigeria, therefore, shares Japan's optimism in the sustenance of the current 
recovery, which is still, nonetheless, dependent on a number of factors, including the pace of growth 
in the world economy. 
219. In particular, Nigeria notes the fact that the immediate and long-term growth prospects of 
Japanese economy would equally be determined by the country's ability to implement and situate 
monetary and fiscal policies within the context of its structural reforms. We, therefore, urge Japan to 
consider and address the following challenges.  
220. First, although Japan's relatively liberal trade regime should be easily acknowledged, there is 
no doubt that the country's tariff structure remains highly complex. Second, it is important to observe that most products of export interest to devel oping countries, such as agricultural products, textiles 
and clothing, leather products a nd footwear, encounter significant tariff peaks. Third, although Japan 
is planning to move away from price support toward s income support in its agricultural policies, it is 
still highly regrettable that the sector remains re latively protected from foreign competition. We 
would therefore like to encourage Japan to continue  with the ongoing trade policy reform process, in 
order to significantly improve its market access, par ticularly in agriculture and services, with a view 
to enabling developing countries, including Nigeria to fully reap the benefits accruing from their 
participation in the multilateral trading system. 
221. Japan is a very important WTO Member; and Nigeria would like to acknowledge the 
country's leadership role, active participation and major contributions to the DDA negotiations, 
particularly the unwavering commitment to an amb itious and balanced outcome in the agriculture 
negotiations, which is at the very heart of the development mandate of the entire negotiations. We WT/TPR/M/243 
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  wish to also recognise the various efforts and initiatives by Japan to move the DDA negotiations 
forward. Nigeria would further like to commend Jap an for its sustained financial and technical 
assistance, particularly its contributi ons to the Aid-for-Trade Initiative. 
222. Nigeria is delighted to note from the Governme nt Report that Japan is promoting the "one 
village, one product" programme all over the African c ontinent, as part of the country's drive towards 
expanding the volume of trade between Japan and Africa.  It is heartening to note that this programme 
is focused on building the capacity of producers of id entified products that c ould be exported and sold 
in the Japanese market. Nigeria would appreciate it if Japan could provide information on its 
evaluation of the programme so far, including th e response by Sub-Saharan African countries to the 
initiative. Still at the regional level, Nigeria wi shes to further commend Japan for its bold initiatives 
aimed at promoting trade and investment in A frica through several channels, including the Tokyo 
International Conference on African Development (TICAD) and Africa-Asia Business Forum (AABF). Again, we would like to hear Japan's ass essment of these initiatives, as well as any new 
measures that being taken to deepen these vehicles  of cooperation, in order to promote economic 
growth and poverty reduction in Africa. 
223. At the bilateral level, relations between Nige ria and Japan generally cover political, economic 
and socio-cultural spheres; and have been sustaine d over the years by the mutuality of interests and 
the friendship of our peoples. The relations have b een characterized by cooperation and trust between 
the leaders of our two countries, and owe a great deal  to the desire of our two countries to forge ahead 
in addressing the important issues that would make the world a better and more secure place to live.  
To that end, Nigeria and Japan ha ve intensified their bilateral rela tionship and cooperation through the 
consistent exchange of visits by our leaders, at  the highest level. The two countries have further 
agreed to create the Nigeria-Japan Special Partners hip Forum to provide a platform for discussions on 
all issues that would strengthen the existing bila teral relationship covering areas such as trade, 
investment and development cooperation; in formation and communication technology; human 
resources development; environment, oil and gas, as well as democracy and good governance. Nigeria 
would like to acknowledge, with appreciation, Japan 's continued development assistance in vital 
sectors of our national economy such as water supply, agriculture, health care delivery, education, and 
rural electrification. 
ECUADOR 
224. Since the last Trade Policy Review in 2009,  Japan's economy has been hit by the global 
economic crisis, causing a decline in  the export sector which has played a vital role in the country's 
economic growth.  The subsequent recovery in e xports, together with the adoption of stimulus 
packages by the Government, amounting to 4.7% of GDP, have enabled the Japanese economy to 
return to the path of growth. 
225. Japan continues to be one of the main players in international trade, particularly trade in 
industrial products, a sector in which it is highly co mpetitive, as is shown by the low tariffs it applies 
to goods of this type.  The situation is different with regard to agriculture, where a relatively high 
MFN rate is applied compared with other sectors,  including tariff peaks and tariff quotas, in addition 
to considerable income support from the State a nd, in some subsectors, measures to control 
production.  In this connection, we appeal to th e Government of Japan to review its agricultural 
policies in the light of their negative effects on the agricultural exports of developing countries. 
226. Among the non-tariff measures adopted by Japan, special mention should be made of the 
application of sanitary and phytosanitary measure s.  Although the Japanese authorities claim that 
these measures are based on scientific risk assessments, according to the Secretariat report no cost/benefit analysis appears to have been made in that regard.  This was reflected in the concerns 
expressed by various Members in the Committee on Sa nitary and Phytosanitary Measures regarding  WT/TPR/M/243 
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  Japan's sanitary and phytosanitary regulations, which they consider to be more restrictive than 
internationally approved guidelines and risk assessm ent procedures.  In that context, Ecuador was 
obliged to raise a trade concern in that Committee in connection with the imposition by the Japanese 
authorities of a maximum residue limit for cocoa, whic h is stricter than international limits.  As a 
result, various consignments of Ecuadorian cocoa were not allowed into the Japanese market.  We 
trust that the constructive dialogue between the re levant authorities will make it possible to find an 
expeditious solution to this problem, which has a di rect impact on the living conditions of low-income 
farmers in Ecuador. 
227. Japan and Ecuador are friends and maintain mu tually beneficial trade relations;  however, 
trade between the two countries shows a marked imba lance in favour of Japan.  That being the case, 
Ecuador considers it necessary to devise appropriate mechanisms to exploit existing trade potential. 
TRINIDAD AND TOBAGO 
228. Trinidad and Tobago views Japan as a market with potential for further development on a 
multi-dimensional basis, given that Trinidad a nd Tobago is among the most lucrative markets for 
Japanese goods in the Caribbean. In 2009, Trinid ad and Tobago exported to Japan US$6.4 million 
worth of goods, namely cocoa beans, liquefied na tural gas, asphalt, rum, beer and Steelpan, the 
national musical instrument that was invented in Trinidad and Tobago. On the other hand, we imported light and heavy weight  cars and trucks, car parts a nd small home appliances totalling 
US$141 million in that year. 
229. With the balance of trade so disproportiona tely in Japan's favour and growing, my 
Government is eager to broaden the level and scope  of economic cooperation with Japan and, in that 
context, to move beyond bilateral trade relations to  encompass and strengthen our investment links in 
the near future. In December 2010 when His Excellency Ikuo Yamahana, Parliamentary Vice-
Minister for Foreign Affairs visited Trinidad and Tobago, agreement was reached for our two 
countries to explore expanded cooperation in such areas as energy, trade and investment, urban development, transportation, fl ood reduction and information tec hnology.  My delegation would like 
to take this opportunity to reiterate to our Japan ese colleagues the strong interest of the Government 
of Trinidad and Tobago to cement the understandi ngs reached recently in our bilateral contacts. 
230. Japan is no stranger to the CARICOM region.  Ministers and senior officials collaborate at 
frequent CARICOM/Japan consultatio n meetings regarding tourism, fisheries and agriculture. The 
most recent such engagement was in September 2010, at the Second CARICOM/Japan Ministerial Conference in Tokyo which was a successful event that resulted in a thr ee-year CARICOM/Japan 
Partnership Programme, including joint public a nd private sector trade missions throughout the 
CARICOM Member States and Tokyo. My delegati on therefore underscores the commitment of the 
Government of Trinidad and Tobago  in contributing substantially to the successful realisation of this 
initiative on a mutually beneficial basis. 
231. Like Trinidad and Tobago, Japan is a very  open economy with a high degree of dependence 
on international trade and thus su sceptible to the volatility of the multilateral trading environment. 
Since its last Review in 2009, the full effect of th e 2008 financial crisis was seen in Japan's end of 
year performance for 2009 with negative GDP growth, decline in domestic demand, a contraction of 
its volume of trade and an increase in unemploymen t. Nonetheless my delegation was heartened to 
observe and compliments Japan on refraining from intr oducing new trade barriers in order to shelter 
its domestic manufacturing sector and to protect its export trade. 
232. Japan's projected positive growth for 2010 conf irms the competitiveness of the manufacturing 
sector and its strength in pulling the Japanese economy out  of the slump. However, we agree with the 
WTO Secretariat that structural reform is need ed to relieve the heavy dependence on manufacturing WT/TPR/M/243 
Page 36  
 
  and to promote greater productivity in the services sector. Japan we believe understands all too well 
the dangers, both short and long term , of continued deficit financing and of increasing its already high 
debt load. It is therefore a prudent signal to the markets that in the recent re-organisation of the 
Government and the allocation of Cabinet portfolios,  appropriate emphasis appears to have been put 
on fiscal conservatism and the promotion of macroeconomic stability. 
VIET NAM 
233. The world economy is seen on revival path since the second quarter of 2009 following the 
recession of 2008.  Japan, with its active role in the multilateral trading system, has substantially 
contributed to such a revival.  It is encouraging to know that since the onset of the financial crisis in 
2008, Japan has refrained from introducing new pr otective trade-policy measures.  Now, as the 
country is struggling to put the economy firmly b ack on the recovery track, I believe that this TPR 
session is important and will bring fruitful results. 
234. Let me turn to the bilateral economic relati onship between Viet Nam and Japan.  In recent 
years, Japan has been one of the largest trading part ners of Viet Nam.  In 2010, bilateral trade between 
Viet Nam and Japan reached US$16.7 billion, up 21.3% year-on-year.  Of the total, View Nam 
yielded US$7.7 billion from exports to Japan while  spending US$9 billion on imports from Japan in 
the same period. 
235. Among Viet Nam's major exports to Japan, ra nked number one in volume is garment and 
textiles, then come respectively:   electric wires and cables;  machinery, equipment and parts;  
seafoods;  and timber and timber products.  As for Viet Nam's major imports from Japan, ranked the 
first in volume is machinery, equipment and parts, then come respectively:  iron and steel;  computers 
and electronics; automobile parts;  and plastic products. 
236. With respect to investment, Jap an was the fourth biggest investor out of 55 countries and 
territories investing in Viet Nam last year with re gistered capital of around US$2.2 billion.  Japan has 
been one of Viet Nam's strategic investors in the el ectricity, petroleum, electronic, coal and minerals, 
iron and steel, and automobiles industries. 
237. Viet Nam and Japan are very keen to furthe r enhance our economic and trade relationship 
which is already flourishing.  The entry into fo rce of the Viet Nam-Japan Economic Partnership 
Agreement since October 2009 evidences our strong co mmitment to such an enhancement.  Following 
the Agreement, we have been implementing coop eration projects in a number of areas including 
supporting industry, garment and textiles, agriculture , sanitary and phytosanitary measures, technical 
regulations, standards and conformity assess ment and human resources development. 
238. Taking this opportunity we would like to th ank Japan for its financial and technical 
assistance, including ODA, which has been treme ndously helpful in our country's development 
process.  We also highly appreciate the preferential market access provided by Japan to developing countries like us and encourage Japan to further open its  markets to our exports.  At the same time, in 
order for Viet Nam and Japan to further develop bila teral cooperative relations for the sake of mutual 
benefits, we would like to request Japan to pay clo ser attention to the following issues of Viet Nam's 
concern. 
239. Firstly, taking into account that other large economies such as China and the Republic of 
Korea have already recognized Viet Nam as a ma rket economy, Viet Nam kindly requests Japan to 
expedite the process to grant the same to Viet Nam. 
240. Secondly, with respect to the movement of na tural persons within the Viet Nam-Japan EPA 
framework, Viet Nam kindly requests Japan to be more  active in negotiations in order to conclude the  WT/TPR/M/243 
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  MNP agreement in a timely manner.  In this conn ection, Viet Nam, kindly asks Japan to provide non-
refundable ODA to help further enhance the Japanese proficiency and professional skills of 
Vietnamese nurses and caregivers to be dispatched to Japan under the to-be-signed MNP agreement. 
241. And last but not least, with respect to Japan's commitment to developing Viet Nam's 
supporting industries, Viet Nam wishes that more conc rete actions shall be ta ken under the next phase 
of the Viet Nam-Japan Joint Initiative. 
242. We welcome Japan's strong support for the early conclusion of the DDA.  More than that, we 
would very much like to see a more active role of  the country in the multilateral trading system to 
reach that aim.      
EL SALVADOR 
243. Japan is one of our main suppliers of capital goods and a large number of Japanese companies 
are established in El Salvador, chiefly in the se ctor comprising vehicles and technological products, 
tractors, cycles and other land vehicles, as well as pa rts and accessories.  An interesting sidelight is 
that this years marks the 58th anniversary of the arrival in El Salvador, on 4 March 1953, of the first 
four Toyota Land Cruiser vehicles, which were th e first Japanese vehicles to be brought into the 
American continent by the first distri butor for that firm in the Americas. 
244. That being said and despite a negative trade balance with Japan, the flow of trade is 
complementary.  The main exports from El Salvad or include coffee, gourmet coffee, which is much 
prized by Japanese consumers, alcoholic bevera ges, vinegar, shrimps, and other products. 
245. We are pleased to note that Japanese trade policy is geared to strengthening regional 
economic integration, including in the Central American context, as was demonstrated on 
17 January 2010 when the Japanese Government  signed a memorandum of understanding on the 
granting of extra-regional observer status with the Central American Integration Secretariat.  In our view, this action reflects an intention to consol idate existing links in the area of cooperation on 
political, economic, social, educational, cultural a nd environmental issues between Central American 
and Japan, and thereby to develop a cooperation a nd economic and social complementarity agenda 
between the two parties. 
246. In the multilateral framework, Jap an supports the multilateral trading system by participating 
in the WTO in order to sustain the momentum of trad e liberalization, particularly in areas of interest 
to it, and to strengthen and modernize the system on the basis of rules that promote the expansion and 
liberalization of trade, as is reflected in its re port.  Nevertheless, we have concerns about the 
commitments that Japan is to undertake in su ch areas as the agriculture negotiations, from the 
standpoint of both tariff and non-tariff barriers, given the distortion caused by such barriers to trade in 
agricultural products.  As we see it, this Round offe rs an opportunity to correct these distortions and 
thus provide the necessary t ools for access to that market. 
247. In the context of the negotiations in the Council fo r TRIPS, we share with Japan an interest in 
establishing a multilateral system of notification and registration of geographical indications for wines 
and spirits, without imposing excessive burdens on Members, and we have been promoting this 
proposal together with other WTO Members. 
248. We further note that Japan has taken a num ber of initiatives to advance the Doha Round 
negotiations, and that it has actively participated in  the negotiation processes and in the deliberations 
on various elements of the Doha Development Age nda, such as special and differential treatment, 
Aid for Trade and the transparency mechanism fo r preferential trade agreements, among others.  
Japan's manifest recognition of these matters in  this Round should contribute to improving the WT/TPR/M/243 
Page 38  
 
  situation of developing and least developed countries.  One obvious ex ample is to be found in the area 
of fisheries subsidies, which are a clear example of  sensitivity to the concerns of small economies that 
have recently been manifested. 
ZAMBIA 
249. My delegation is pleased to note that despite  the pressure exerted on Japan's economy as a 
result of the financial crisis, Japan has continued to provide trade development support to developing 
countries.  We commend Japan for its aid for trade strategy of 2009, with a financial package of 
US$12 billion whose focus is on providing suppor t towards the implementation of trade related 
project over a period of three years.  My delegati on also commends Japan for its continued financial 
contributions to the Standards and Trade Developm ent Facility and the promotion of the one village, 
one product movement in Africa. 
250. On the bilateral front, I wish to state that  Japan remains one of Zambia's significant 
development partner and has been instrume ntal in providing support towards the smooth 
implementation of economic reform efforts, th rough various arrangements including the Japan 
International Cooperation Agency, Japan External  Trade Organisation and other bilateral support 
initiatives targeted at infrastructure development.  Among cooperation arrangeme nts entered into with 
Japan include the signing of a Memorandum of U nderstanding with the Japanese Oil, Gas, Metal 
Exploration Company to undertake joint exploration programmes for oil and gas.  The development of 
a Power Systems Master Plan in the energy sector, in  collaboration with JICA, Zambia has also been a 
beneficiary of the "21
st Century Invitation programme for pr omoting partnership" which seeks to 
strengthen economic cooperation be tween the two countries.  Further, through initiatives under the 
Tokyo International Conference on Africa Developmen t, Zambia continues to embark on a vigorous 
reform program aimed at attracting investment. A centerpiece of this strategy is the Private Sector Development Reform Action Plan and Implementa tion Framework, established in 2005, that was 
designed to further enhance prospects of foreign investment in Zambia. 
251. These are few examples to demonstrate that Zambia maintains strong economic ties with 
Japan.  Allow me, therefore, to take this opportunity  to thank the Government of Japan for the various 
forms of technical assistance and financial assistance availed to Zambia. 
252. With regard to trade, Zambia's main impor ts from Japan are automobiles and electronic 
products, and exports include cooper and cobalt.  Trade with Japan in 2008 stood at 4.9 million yen in 
terms of exports and 9.4 milli on yen in terms of imports. 
253. On the multilateral front we take note that Japan remains fully committed to implementing 
duty free and quota free market access essentially for all products from LDCs.  In 2007, we witnessed 
an increase in this commitment of agricultural and fishery products originating from LDCs from 
US$497 million to US$1,523 million and that of i ndustrial products increase from US$4,185 million 
and US$4,244 million. 
254. Although this presents many opportunities for tr ade growth and development of countries 
such as mine, a number of challenges continue to limit full utilization of this scheme.  Key among 
them is the low level of production, which make s it difficult for most companies to achieve the 
economies of scale that would make it more profitable to target Japan market, as well as challenges in 
meeting some of the technical, sanitary and phytosanitary requirements demanded by Japan.  
Therefore, support towards productive sector capacity building and addressing barriers to trade including the simplification of rules of origin are important for the effective utilization of the 
preferential market access.  To this end, we are happy to note that Japan has shown commitment in 
assisting Zambia enhance competitiveness of its export sector.  WT/TPR/M/243 
 Page 39 
 
 
  255. It is my delegation's expectation that Japan w ill continue to play a leadership role in the 
multilateral trading system and contribute to the conclusion of the Doha Round that will deliver on 
development.  WT/TPR/M/243 
Page 40  
 
  V. REPLIES BY THE REPRESENTATIVE OF JAPAN AND ADDITIONAL 
COMMENTS 
256. Let me first of all express my deep gratitude for the warm welcome my delegation received 
the day before yesterday. I am also grateful for the many positive comments on our efforts to refrain 
from protectionist measures in the face of financia l crisis and our determin ation to maintain and 
promote an open economy.  
257. In this session, the Japanese delegation will do its  best to answer the questions related to 
issues, which would be of keen interest to many Members and our Discussant. As to our answers to 
the issues that I do not touch upon here, I would like to ask you to refer to our written responses 
distributed the day before yesterday. Let me st art with the area of Economic and Fiscal Policy. 
258. A question was raised by the Discussant and some Members about Japan's structural reforms 
with a view to improve productivity and its relation to  our trade and investment policy. In this regard, 
as I said in my statement on the first day, Japan announced the program "Regulatory Reform 100 to 
Revitalize Japan" in September 2010.  Based on this  program, we have taken steps toward a more 
open economy by, for example, improving rules on procedures at customs clearance, opening one-
stop services for government procedures, providing English-speaking personnel at windows of public 
offices with a view to promote FDI, admitting elect ronic issuance of certificates of origin based on 
FTAs, and those measures would contribute to the encouragement of foreign competition as well. The 
program also includes reform measures on service sectors including tourism, medical and elderly care sectors, which will also lead to improvement of the productivity of services sectors. 
259. I would like to move on to trade and investment  policy issues.  The level of FDI penetration 
was also an issue many Member s and the Discussant touched upon. As mentioned, we look upon FDI 
as a positive impetus for boosting the Japanese economy.   Therefore, Japan is making efforts to 
promote both inward and outward investments. For ex ample, Japan plans to introduce new schemes to 
provide preferential treatment in terms of corpor ate tax to promote investment in Japan, and the 
related bills will be discussed at the ongoing ordina ry session of the Diet. It is worth mentioning that 
special depreciation, tax credit and income deductions will be introduced  in the International Strategic 
Special District, where big cities can enjoy comp etitive advantages internationally.  An another 
income deduction scheme to be introduced aims at attracting global companies'R&D centres and 
Asian regional headquarters. 
260. Furthermore, Japan is engaged to promote FDI th rough bilateral investment agreements so far 
with 15 countries and regions, including China and th e Republic of Korea. Thanks to the high quality 
investment agreement with the Republic of Korea, the mutual investment fl ow has increased.  Japan 
will also continue to work towards an early conclusion of a trilatera l investment agreement with China 
and the Republic of Korea. Japan believes that secu ring a reliable investment regime will facilitate the 
flow of investment. 
261. It seems to me that not only the Discussant but also many Members were interested in our 
FTAs and EPAs policy. I would like to emphasize he re again that maintaining and strengthening the 
multilateral trading system under the WTO remains a fundamental basis of Japan's trade policy, and 
efforts to promote economic part nerships through developing EPAs/FTA s are to supplement this basic 
policy. We are pleased to note that  there have been significant incr eases in trade with countries with 
which we have concluded EPA/FTAs as was men tioned by several Delegates the day before 
yesterday. 
262. With regard to Japan's existing EPAs, more than 90% of goods, based on both sides'trade 
volume, will be duty free in ten years time. In our "Basic Policy on Comprehensive Economic 
Partnerships", it is stated that Japan will take  major steps forward from its present posture and  WT/TPR/M/243 
 Page 41 
 
 
  promote high-level economic partners hips that will withstand comparison with the trend of other such 
relationships. 
263. I would like to thank you all for your keen inter est in our agricultural policy and its reforms. 
Quite a few Members, including th e Discussant, mentioned tariff levels of our agricultural products, 
non-ad valorem  tariffs, tariff quotas and the level of our domestic support. 
264. With aging farming population and the average size of farm managements being less than 2 
ha, a drastic reform in our agricultural policy is a big challenge for Japan. Therefore, there have been 
intensive discussions across the nation, as well as in  the Government, on how to achieve both opening 
up the nation and the revitalization of our agricultu re industry. Against this backdrop, Japan will 
determine and eagerly push forward n ecessary reforms in Japan's agriculture. 
265. Apart from agriculture, but in relation to border measures, some Members raised concerns 
about our tariff level on some of our NAMA products . Here again, Japan will address this issue by  
both achieving the revitalization of the industries and the principle of opening up the nation.  
266. As for SPS, some Members pointed out that our SPS regulations are more stringent than 
internationally established guidelines. The Food Safety Commission of Japan conducts risk 
assessment on food according to the Food Safety Basi c Act and in a scientific, independent and fair 
manner on the basis of scientific evidence, including various toxicological data. On this assessment, 
the Commission and its Expert Committee always ta ke into account international standards such as 
the OIE Code and Codex standards. Japan will con tinue to cooperate with interested Members in 
various international fora as well as on a bilate ral basis to address the outstanding issues. 
267. Several Members pointed out some issues on gove rnment procurement issues. I would like to 
reiterate that government procurement in Japan  is basically conducted through open tendering 
procedures.  Japan is willing to facilitate the pa rticipation of foreign companies in our tendering 
procedures.  
268. I would also like to address the interest show n by some Members and the Discussant in our 
measures taken for regulatory impact analysis. The Government of Japan understands that quantifying 
costs and benefits to assess regulatory measures is important and will promote such assessment. 
269. We additionally appreciate enquiries from some Members regarding implementation of the 
Fourth  Update to the WTO Pharmaceutical Ag reement. I would like to assure you that the 
Government of Japan endeavours to submit the modi fied Tariff Schedules to the Diet as early as 
possible. 
270. Finally, as for the interest of African Members I am more than pleased to receive questions 
and comments from some of our African partners.  Re garding rules of origin, Japan has been making 
an effort to adopt simple and transparent rules of origin for our GSP.  Japan takes note of the 
comments from our developing Members and will c ontinue to apply its rules in an appropriate 
manner. 
271. Japan attaches great importance to "Aid for Tr ade". To help developing countries and least 
developing countries expand their trade, the best wa y is to provide them with the opportunity to 
develop through the expansion of tr ade. From this point of view, I would like to touch upon some of 
our efforts in Aid for Trade. 
272. The One Village, One Product (OVOP) campai gn has been successfully implemented 
whereby developing countries and least developing  countries can develop, improve, and promote 
local products, such as foods, bevera ges, textiles and garments. I would be happy to note that we have WT/TPR/M/243 
Page 42  
 
  received positive feedback from many of our partne r countries on various levels as well as Japanese 
consumers. 
273. Japan will continue and strengthen its support of African development, based on initiatives 
announced at TICAD IV (Fourth Tokyo Internatio nal Conference on African Development), which 
includes the goal to double private-s ector investment by 2012. In or der to encourage private-sector 
investment, AABF (Africa-Asia Business Forum) has been  held five times. For example, at the Fifth 
Conference in June 2009, "tourism promotion" was discussed. We are expecting a future exchange of 
insights and experiences between Africa and Asia through our TICAD process, and I hope very much 
that we can further strengthen our partnerships. 
DISCUSSANT 
274. My closing remarks will be guided by the following question: What are the most important 
impressions and the most important pieces of advice  that Members seem to would like to ask the 
Japanese delegation to take home for further consideration? 
275. And as I did in my introduction on Tuesday, I will focus my remarks on aspects concerning 
the macroeconomic level and sector policy issues of more general interest.   
276. Members have acknowledged that the Japanese Gove rnment has taken several steps to "open 
up the nation" by a series of reform initiatives and Members are highly inter ested in how they are 
implemented and what outcome they will produce.   Members have also acknowledged that such 
reforms are of crucial importance for the capacity of Japan to regain its traditional role as an important 
engine for growth worldwide, as Prime Minister Ka n's initiative are expected to deliver very positive 
effects on the global economy.  Members have also ac knowledged that Japan plays a very vital role in 
promoting global trade and investment liberalization, inclusively via a series of bilateral and regional 
agreements.  Members have also acknowledged th at Japan play a very constructive role in 
contributing to a positive outcome of the Doha  Round.  And finally, Members have also 
acknowledged that Japan on the backdrop of the fina ncial crises has refrai ned from introducing new 
barriers to trade. 
277. Members have expressed concerns on a number of points and asked the Japanese authorities 
to consider adapting its policies in several areas. Let me highlight in particular four of those that I 
believe are the most important ones.  First, the n eed to consider the relativ e high tariffs and non-tariff 
barriers on imports of agricultural products.  Second,  the need to consider the relative stringent SPS 
measures, which should be harmonized with interna tional standards – and conducted on a cost-benefit 
analysis, so that especially developing countries coul d more easily access the Japanese market.  Third, 
the need to facilitate participation of foreign s uppliers in government proc urements.  And finally 
fourth, the need to facilitate foreign direct investments. 
278. Several other concerns have been put forward by  Members but those seem to me to be among 
the most important ones that a large part of WT O Members would like the Japanese delegation to take 
home for active consideration by the Government. 
BRAZIL 
279. At this point I would like to comment very br iefly on some responses given by Japan to our 
written questions.  Firstly, regard ing government financial support fo r the development of Mitsubishi 
Regional Jet.  As Brazil noted in its statement on th e first day of this meeting, we have requested 
information about financial support for the M itsubishi Regional Jet on numerous occasions.  We 
asked about it in Japan's last TPR, we approached Japan in several bilateral contexts, and forwarded 
specific questions to the Japanese Government, so far it has been in vain, and this TPR has  WT/TPR/M/243 
 Page 43 
 
 
  unfortunately not being an exception.  Japan responses fall way short of addressing the specific 
questions raised by Brazil.  The terms and c onditions of such financial support and the amount 
involved remain totally unclear.  Brazil has been  concerned about the lack of transparency 
surrounding government support for the Mitsubishi Regiona l Jet and we are disappointed that this was 
repeated here.  Let me reiterate that Brazil will be closely following developments on this matter. 
280. Secondly, on agriculture Brazil thinks that Jap an can do significantly more in reform in the 
DDA especially in market access.  As a matter of fact, as far as Brazil is concerned Japan will be 
required to do significantly more in market acces s to make the Doha Round viable.  On SPS, in 
relation to the assessment of risks for flutriafol in coffee let me make two comments.  First, it is important to underline that the JECFA is not in stitutional responsible for scientifically assessing 
pesticides, but the JMPR.  As far as pesticide residue s in Codex Alimentarius ar e concerned, it is this 
Institution's responsibility to conclude risk ass essment and not the JECFA as Japan mentioned. 
Furthermore, according to the EU Commission Regula tion mentioned by Japan in its written answers, 
the maximum residue level for coffee is 0.05 which is  also informed at the EU pesticide database.  
Therefore, there seems to be a mismatch in the in formation provided by Japan that the EU uses 0.01 
ppm as its limit. Finally, our delegation will request  Japan to immediately revise this measure which 
is not in accordance with the SPS Agreement.  
CHINA 
281. China has listened attentively to the statement of Mr. Kagawa that responds to Members' 
observations and comments made at the first day mee ting. We have also preliminarily looked into 
Japan's answers to our written questions. A lot of the answers have further enhanced our knowledge 
of the policies and regimes in Japan having impa cts on trade, but on a few other questions, for 
example those in macroeconomic field including monetary policies in which China is much interested, a better understanding could be achieved if the policy orientations stated by Japan in the 
written answers could be accompanied with more detailed information on concrete implementing 
measures. That said, we appreciate very much the efforts of the Japanese delegation and believe that 
the exchanges have been very useful and valuable. 
282. A couple of points on policies of Japan that are of  great and immediate interests to China, and 
these are in addition to the observations made by th e Discussant in his closi ng remarks, to which we 
fully agree.  Firstly it is the SPS regime and pract ices and also technical standards, on which Brazil 
just now and also other Members in their statements made at the first day meeting voiced comments. China submitted its fourth and last  batch of written questions to Japa n yesterday, which arrived a bit 
late. These questions are primarily in this field. We continue to be concerned with the positive list 
system of Japan, as enterprises continue to compla in for example that the system in many cases does 
not provide for testing measures, and application of the system lacks transparency. This, together with 
the high protection long given to  Japan's agriculture sector are not  good to the agricultural trade 
between China and Japan which are of great impor tance to the livelihood of many Chinese farmers. 
283. Secondly on Japan's policies concerning movement  of natural persons and labour forces from 
other Members. In response to our written questions concerning Japan's views on the suggestion in the 
Secretariat Report on Japan's shrinking labour force, Japan focused much on encouraging young people, women, the elderly and other people within  the Japanese society to en ter the job market, and 
there seems to be a reluctance in terms of policy or ientation to consider introduction of foreign labour 
forces. China believes that efforts of Japan in this  regard will be mutually beneficial both for Japan 
and other Members and China in particular could be helpful in services sectors including for example 
hotel services, tour guides, nurse services etc.  
284. I will refrain from raising more to our Japanese co lleagues. There are always a lot of issues to 
be discussed with our Japanese colleagues in view of  the important trade relations between our two WT/TPR/M/243 
Page 44  
 
  countries. To conclude, the exchanges we had in this 10
th Trade Policy Review of Japan have been 
fruitful for us, and we would like to thank again the Japanese delegation.  
EUROPEAN UNION 
285. The EU would like to present today one comme nt, two additional questions, as well as some 
follow-up questions that we have received from our experts on the basis of the written answers that 
Japan has provided so far.  
286. Let me start with the comment. In our statement made on the first day we stated that most of 
the EUs main concerns today were already highlighted during the 9th TPR of Japan. One of such 
concerns was and remains the ban on imports of beef from some of the EU Member States, on the 
justification that this is necessary to prevent the spread of BSE. Most of the EU Member States from 
which beef imports are prohibited by Japan have be en classified as countries with "negligible risk" or 
"controlled risk" pursuant the World Organization for Animal Health (OIE) Code that stipulates the 
conditions under which beef and b eef products can be safely traded. By contrast, Japan does allow 
beef to be imported from a non-EU country with OIE status of "negligible" and "controlled risk". 
Based on the first look at the replies in this rega rd we would like to once again use this opportunity 
and urge Japan to review this ban on imports and en sure EU Member States get the same treatment as 
other WTO Members.  
287. Turning to our additional questions, the EU w ould like to seek information on the following 
matters.  The first additional question is also re lated to Japan' s import regime, but concerns the 
import regime for pork meat. Namely, Japan's import regime for pork meat restricts the free flow of 
goods and does not allow operators sufficient predicta bility. We would like to ask whether Japan is 
planning to modify its gate price system in the near  future and if yes, in which context? In addition, 
does Japan foresee ending the automaticity of the pork safeguard in the near future or adjusting the 
trigger levels in order to allow more imports? We thank Japan in advance for clarifications in this 
regard. 
288. Our second additional question, asking for inform ation on Japan's intention to implement the 
updated Pharmaceutical Agreement, has been alrea dy presented in our statement on the first day and 
Japan has today provided further information on this  matter. We thank Japan for this information, 
however would kindly ask Japan to provide its reply on its intention to start implementing the agreed 
list of duty free products and substances also in written form.  
289. As mentioned, the EU has also some follow-up qu estions. In the interest of time, I will not go 
through the specific follow-up questions, but only info rm you about the areas they address:  first, on 
Aid for Trade, we would welcome some additi onal information of the activities of the Japan 
International Cooperation Agency (JICA); secondly,  we would like to ask Japan to share some 
additional information on standard setting activities;  thirdly, we seek additional information on 
agriculture policies, related to implementation of th e Japan's revised Basic Plan for Food, Agriculture 
and Rural Areas; and fourthly, we will present furthe r questions related to government procurement.  
We are submitting our follow-up questions in writing through the Secretariat, as well as the additional 
questions I have just presented and we expect the replies to these questions in due time.  
UNITED STATES 
290. I would like to thank the Japanese delegati on for the answers to our advance written 
questions.  We reviewed the responses carefully in  Washington D.C. and I offer the following five 
follow-up questions.  WT/TPR/M/243 
 Page 45 
 
 
  291. The first one is with respect to a U.S. questi on on RTA's.  Japan excludes large percentages of 
agricultural products from tariff elimination under its  RTAs.  Just as one example, under Japan's EPA 
with the Philippines, Japan eliminates duties on onl y 64.8% of agricultural duties compared to the 
Philippines's figure of 99.2%.  Basing an assessment of coverage on current volume of trade could be 
misleading since restrictions could be in place that  prevents current trade. How is Japan's selective 
coverage of agricultural goods trade-creating and not trade-distorting?   Moreover, in Japan's view, 
what are the effects of Japan's systematic protec tion of its agricultural sect or through exclusion of 
many agricultural products from its RTAs on the multilateral trading system? 
292. The second follow-up question is related to our qu estion on WTO Pharmaceutical Agreement.  
Does Japan intend to submit the modified tariff Schedules to the Diet during its current (2011) 
Ordinary Session?  Japan noted in its statemen t this morning that would be done "as soon as 
possible", but it would be helpful to fu rther clarify Japan's intended timeframe. 
293. The third question is related to wood.  Materials from the Forestry Agency of the Government 
of Japan related to the "Act for the Promotion of Use of Wood in Public Buildings" clearly state that 
the key aim of the law is to contribute to the e xpansion of demand for "dom estic wood" or "local 
region wood".  Please clarify how the intent identif ied through the statements in these materials is 
consistent with the statement provided that "The  Act and other Japanese timber-related policies, 
including subsidy policies, will be operated w ithout distinction between  domestic and imported 
woods".   
294. Furthermore, Forestry Agency materials indicat e that it is "necessary" for entities seeking to 
receive subsidies to join prefectural committees, which are to include local associations as well as 
forestry associations, wood producers/suppliers, and others.  Please explain how these associations do 
not de facto  promote the use of domestic wood in a manner that effectively discriminates against 
foreign suppliers.  How can foreign suppliers par ticipate in such groups in a manner that does not 
require a physical presence in Japan? 
295. The fourth question is related to intellectua l property rights.  Japan's response regarding 
"Type C" refers to "Exploitation not enjoying an expression of a work ".  Could Japan please clarify or 
elaborate upon the nature of an exploitation that would  be permitted under the description provided in 
"Type C" of the government's response and provide  an example of what would not be permitted? 
296. Finally a question related to butter TRQ.  The United States notes that the STE ALIC 
(Agriculture and Livestock Industrial Corpora tion) handles butter imports under Japan's WTO TRQ 
for "designated dairy products for general use" .  However, MAFF handles imports under Japan's 
WTO butter-specific quota which is 1,873 tons.   According to Japan's current tariff schedule, by 
Cabinet order, MAFF manages the allocation of 581 t ons for butter imports only for specific uses.  If 
ALIC does not handle imports under the WTO butter specific TRQ and the MAFF manages only 581 tons, how does Japan allocate the remaining tonnage  under the WTO butter TRQ?   Further, which 
entity is responsible ALIC, MAFF, or other?  Could the reason for the low fill rate be related to the 
1,000 tons of TRQ left unallocated?  What are Jap an's plans to change its butter TRQ administration 
and provide trading partners with the access agr eed under Japan's WTO market access concessions?  
JAPAN 
297. First of all on the issue of SPS, especially on th e BSE issue, Japan would like to reiterate that 
Japan wishes to continue the communication with its trading partners towards mutually agreeable 
solutions.  Regarding MRL related issues Japan would like to continue further technical discussions 
on a bilateral basis.  The various specific questions  of other Members will be  responded in due course 
if they provide us with the precise questions in writing. WT/TPR/M/243 
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  298. Regarding RTAs, our level of tariff elimination or liberalization of bilateral EPAs and FTAs, 
as I said this morning, we would like to make more efforts to reach the international high level of 
EPAs from the present posture.  Since the EPAs negotia tions are going on with some other countries, 
we could not say at what level we can reach, but we  will try to do our best  to open up in order to 
liberalize more our tariff lines in line with the B asic Policy on Comprehensive Economic Partnerships 
decided by our Cabinet last year.   
299. Regarding the question on agricultural products lik e pork meat, as I said this morning, we are 
now trying to do the agricultural reform and forthc oming June is the target for our Government to 
come up with the concrete plan.  So I think that an  action plan will be introduced within this year, 
without any kind of exclusion in our efforts we t ouched upon any important issues or related issues of 
trade, namely meat, dairy, etc.  Those are very sensitive items but we woul d like to touch upon those 
very much difficult sensitive issues of agriculture in Japan. 
300. Regarding the IPR issues and TRQ raised by the U.S., we would like to respond to them in 
due course in writing. Regarding Aid for Trade and government procurement we would like to 
respond to the EU, that we are now discussing in de pth on that issue bilaterally and the negotiation is 
going on in the WTO so that I think we would like to  continue the discussion on how to deal best with 
the government procurement.  As I said, we would like to facilitate the investment or the business 
from foreign countries in terms of the government procurement business in Japan, so we will double our efforts to open up our country incl uding government procurement business. 
301. Regarding the timber issue, we have already gi ven a written response to the U.S. in which we 
said very clearly that our new reservations to promote the forestry industry do not have any 
discriminatory measures in treatment basis.  If th e U.S. needs more information we would like to 
provide them with further information or clarifications  on that issue.  The issues raised by the EU and 
the U.S. on pharmaceuticals, we are committed alre ady to continue our efforts on the Pharmaceuticals 
Agreement but timing is not clear.  So we would have to coordinate with in our Government to 
accelerate the process. 
302. Finally, regarding the jet issue raised by Brazil we tried to be transparent about this project, 
and we have given enough information at certain fo ra as well as on a bilateral basis.  We are happy to 
provide Brazil with further information on this issue, if necessary, and we are ready to discuss further.  
  WT/TPR/M/243 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
303. This tenth Trade Policy Review of Japan has greatly enhanced Members' understanding of 
Japan's trade and related policies as well as how it has responded to the globa l financial and economic 
crisis.  Our discussions have benefited from the ac tive participation of the Japanese delegation led by 
Mr Takehiro Kagawa, the insightful and thou ght-provoking contributions by the discussant, 
Ambassador Smidt of Denmark, and the many inte rventions by Members.  Japan's answers to the 
large number of questions, made available at the be ginning of this meeting,  were well appreciated. 
304. Members looked forward to a quick recovery of  Japan's economy, which will enable it to 
become once again an engine for economic growth and social progress worldwide.  Members commended Japan for not introducing any protecti onist trade-policy measures despite the severe 
negative impact of the global fi nancial and economic cris is on its economy, notably the sharp drop in 
exports and contraction in domestic demand.   
305. Members felt that the macroec onomic policies pursued have help ed Japan to recover from the 
crisis, yet they do not adequately address Japan's long-standing structural impediments to growth.  
Consequently, Members urged Japan to undertak e far-reaching structural reforms, with trade 
liberalization as an integral part.  Such reform s would stimulate competition, and thereby improve 
productivity, especially in agriculture and services.  In  this context, Members expressed interest in the 
direction of Japan's regulatory reform as announced  in the New Growth Strategy. Furthermore, they 
welcomed the recent announcement by the Governme nt of Japan on "opening Japan and reinventing 
Kizuna ".   
306. Members welcomed Japan's activ e role in the multilateral tr ading system; they looked to 
Japan, as one of the world's largest economies and traders, for leadership in reaching an early 
conclusion of the Doha Development Agenda. 
307. Members commended Japan for its financial and technical assistance, including its Official 
Development Assistance and various regional in itiatives on economic cooperation, as well as its 
contribution to aid for trade.  Members also commended Japan's support for the process of accession 
by future Members.  They expressed appreciation of  preferential market access provided by Japan to 
developing and least-developed countries;  they enc ouraged Japan to open its market further to these 
countries' exports.   
308. Members also noted Japan's increasing in volvement in bilateral/regional trading 
arrangements, including its interest in the Trans-Pacific Partnership agreement.  While some Members appreciated Japan's stance expressed in its Basic Policy on Comprehensive Ec onomic Partnerships in 
regard to trade liberalization and economic re form, they urged Japan to ensure that these 
bilateral/regional arrangements are compa tible with the multilateral system.   
309. Members encouraged Japan to increase domestic transparency, and urged it to further utilize 
cost-benefit analysis and thus be in a better position to evaluate its existing policies with a view to 
formulating more effective new ones.   
310. While noting Japan's relatively liberal trade regime, Members urged Jap an to continue its 
liberalization of trade and investment.  Members not ed that although Japan's tariff is low, it remains 
complex.  Products of export interest to developi ng countries, notably agri cultural products, textiles 
and clothing, leather products and footwear, continue to encounter significant tariff peaks (which tend 
to be concealed by non- ad valorem  rates), tariff escalation, tariff quotas (and their intricacies), and/or 
state trading.  Members also urged Japan to implem ent its update of the Pharmaceutical Agreement.   WT/TPR/M/243 
Page 48  
 
  311. Members expressed concern about certain r estrictions on foreign access to Japan's 
government procurement market and encouraged it to allow greater foreign participation.  
312. Members expressed concern over the complexity, and thus lack of transparency, of Japan's 
sanitary and phytosanitary (SPS) measures as well as technical regulations and standards.  Some 
Members questioned the appropriateness of Japan's ri sk assessment practices regarding SPS measures.  
Members encouraged Japan to further adhere to international norms in these areas.   
313. Members expressed concern about border measure s and the relatively high level of overall 
domestic support for agriculture, noting that this s upport amounted to almost as much as the sector's 
small contribution to GDP.  More specifically, they were concerned about Japan's use of import quotas for fish and marine products and the ban on th e import of certain beef.  As regards reforms, 
Members sought clarification regarding the new direct payment scheme.   
314. Members encouraged Japan to continue reforms to enhance competition in services.  In this 
context, Members looked forward to the steps to remove remaining impediments to inward foreign 
direct investment, which remains relatively low in comparison with other OECD countries, and 
movement of natural persons.  They encouraged Jap an to ensure a level playing field in its major 
services markets, particularly insurance, teleco mmunications, maritime transport, and medical and 
health services.  Members also raised concerns about the status of reform of Japan Post.   
315. In closing, I would like to thank the Japanese de legation for its active participation in this 
Review, including its written responses provided before  and during this meeting.  We all look forward 
to receiving remaining answers within one month.  The keen interest shown by Members in this 
Review, as reflected in the large number of adva nce written questions, numerous interventions, and 
high attendance, indicates the importance they attach  to Japan's leadership role in the multilateral 
trading system.  This Review has clearly indicated  that the Trade Policy Review Mechanism is an 
important element in ensuring a transparent multilate ral trading system.  I am encouraged by the 
statement by Japan that, despite current difficulti es, not only had it maintained the openness of its 
economy and continued to adhere strictly to WTO ru les, it also envisaged "opening Japan" further in 
the near future.  In doing so, I trust that Japan w ill take to heart the concerns expressed by Members. 
 
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