WORLD TRADE  
ORGANIZATION  G/SCM/Q2/JPN/45 
1 February 2010 
 (10-0469) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Questions Posed by the UNITED STATES Regarding the  
New and Full Notification of JAPAN1 
 
  The following communication, dated 27 January 2 010, is being circulated at the request of the 
Delegation of the United States.    
_______________ 
 
 
Regional Specificity
 
 
Question 1 
 
 In its Communication of 8 July 2009 (Repli es to Follow-up Questions from the United States 
Regarding the New and Full Notification of Japan, G/ SCM/Q2/JPN/44), Japan stated its position that 
subsidy programmes limited to certain regions are not necessarily specific.  The reason for this, in 
Japan's view, is that under Article 2.2 of the S ubsidies Agreement to be  specific a programme's 
benefits must be limited to enterprises locat ed within a designated geographical region and  also 
limited to certain enterprises.  Could Japan explai n how this interpretation does not render Article 2.2 
superfluous, in light of Article 2.1, the terms of which already render a measure specific if it is 
"limited to certain enterprises"?    
Notified Programs
 
 
Eligibility Requirements  
 
Question 2 
  For each of the following notified programm es, would Japan please describe the eligibility 
requirements for participation in the programme:    
• Assistance for Development of Civil Aircraft 
• Subsidy for the Leather and Leather Goods Industries 
• Subsidy for Supporting the Manufacture of Traditional Craft Products 
• Subsidy for Promoting the Manufacture of Traditional Craft Products 
• Subsidy to Promote Action to Improve Energy Efficiency of Buildings under the Leadership 
of Energy Suppliers 
• Subsidy for Promoting Biofuel 
• Subsidies for Small and Medium-scale Hydropower Development 
                                                     
 
1 G/SCM/N/186/JPN.   G/SCM/Q2/JPN/45 
Page 2  
 
  • Geothermal Energy Programme 
• Subsidy for the Technology Development of In tegrated Coal Gasification Combined Cycle 
Power Generation Plant 
• Subsidies to Offset the Costs of Converting Old Coal-fired Thermal Power Generations to 
Natural Gas 
• Subsidy for the Innovative and Viable Nucl ear Energy Technology Development Project 
• Grant for the Technical Development of a Full-MOX ABWR Plant System 
• Subsidy for Research and Developmen t of Next Generation Technology 
 
Subsidy of Expense to Investigate the Deve lopment of Next Generation Airplanes  
 
Question 3 
 
 Please explain whether funds provided under th is programme were used to assist in the 
development of the Mitsubishi Regional Jet?   
 
Assistance for Development of Civil Aircraft 
 
Question 4 
 
 Please explain whether funds provided under th is programme were used to assist in the 
development of the Mitsubishi Regional Jet?   
 
Subsidy for Wind Power Generation and Its Grid Connection 
 Question 5 
 
 Japan states that this subsidy is provided to  "wind power generation companies who are the 
applicant against the offer from electric utilities".  Explain whether there any limits on which wind 
power generation companies are eligible for this programme and explain whether foreign companies 
are eligible for assistance under this programme.  
 
Fisheries Modernization Fund Interest Subsidy 
 
Question 6 
 
 Please provide greater detail on the structural adjustment operations of the subsidized fishery 
cooperatives.  Please include details on the criteri a for determining which small- or medium-size 
fisheries are eligible under the programme.    
Fund for the Measure to Supply Fishery Products Stably  
 
Question 7 
 
 Japan states that "subsidies for promotion of distribution, processing and consumption of fishery products are implemented for safe and effi cient supply of food".  Please provide details on the 
operation of these subsidies, including eligibility criteria.    G/SCM/Q2/JPN/45 
 Page 3 
 
 
  Fisheries Programs Not Notified  
 
Question 8 
 
 In G/SCM/Q2/JPN/38, Japan stated that "Jap an has fishing vessel insurance and reinsurance 
scheme, which compensates for part of losses incurre d by the natural disaster and other happenings.  
The scheme reinsures the fishing v essel insurance run by insurance asso ciations.  Any type of fishing 
is eligible."  If this scheme was in effect duri ng the period covered by Japan's most recent subsidy 
notification, please explain why it was not notified.    Question 9 
 
 In G/SCM/Q2/JPN/38, Japan stated that "Jap an has a programme, as a safety net in term of 
stable fish supply, to support fisheries organizati ons in stocking their members' catches, which are 
subject to great deal of fluctuation in production a nd price".  If this program was in effect during the 
period covered by Japan's most recent subsidy notif ication, please explain why it was not notified.   
 
Question 10 
 
 In G/SCM/Q2/JPN/38, Japan stated that "Japan  has an interest subsidy programme to assist 
fishermen, for those who borrow funds for obtaining their fishing vessels under specific 
requirements".  If this program was in effect during the period covered by Japan's most recent subsidy 
notification, please explain why it was not notified.      
__________