WORLD TRADE  
ORGANIZATION  G/SCM/Q2/JPN/41 
7 August 2008 
 (08-3743) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Questions from the UNITED STATES Regarding the New  
and Full Notification of JAPAN1 
 
  The following communication, dated 4 August 2008, is being circulated at the request of the Delegation of the Unites States.    
_______________ 
 
 
Contract for Development of Information Processing Systems and for Related Purposes 
 Question 1 
 
 Please elaborate on your response regarding the form of the subsidy under this programme, 
which is described as "contract".  Specifically, wh at is the nature of the financial contribution 
provided under this program?  What types of private sector companies are parties to these contracts?    The New Energy and Industrial Technology Develo pment Organization (NEDO) Japan Oil, Gas 
and Metals National Corporation 
 
Question 2 
 
 For various notified programmes, Japan states that subsidies are provided "through Japan Oil, 
Gas and Metals National Corporation" or "throu gh NEDO".  Please describe the nature of these two 
organizations and their specific purpose and role  in the implementation of various programmes 
(eg., why were these entities created?).    
Subsidy for Strengthening and Production System for Rationalization of Oil Industry 
 
Question 3 
 
 Could you please explain how the Petroleum Association of Japan assists in the closure of refineries?  How is it decided whic h refineries are to be shut down or  continue production in order to 
streamline the industry?   
                                                     
 
1 G/SCM/N/155/JPN.   G/SCM/Q2/JPN/41 
Page 2  
 
  Contract for Investigation of Promoting De velopment and Introduction of Hydropower 
 Question 4 
 
 Are the companies listed (i.e., New Energy Foundation, New Energy Foundation, Pacific 
Consultants Co., Ltd., Chugoku Electric Power Co., Inc.) all private sector companies?  Please 
describe the eligibility criteria that must be met in order to receive a contract under this programme.  
Do the same entities participate every year?   
 
Reserve for Special Repairs 
 
Question 5 
 
 Is this programme limited to the steel industry?  If not, please describe the other industries that benefit.   
 
  
FOLLOW-UP QUESTIONS FROM PREVIO US NOTIFICATION AND RESPONSE  
TO QUESTIONS (G/SCM/N/123/JPN;  G/SCM/Q2/JPN/40) 
 
Focus 21 Programme 
 
 It is our understanding that "Focus 21" is cen tred on the provision of funds to support research 
and development in priority areas.  Could you pl ease further explain what is meant by "priority 
areas"?  Why was this program not notified?   
 
General Specificity Question 
 
 With regard to the following programmes, please explain further the basis for Japan's position 
that benefits limited to enterprises located in a cer tain geographical region are not specific, within the 
terms of Article 2 of the SCM Agreement.   
 
- Aichi Prefecture's Industrial Facilities Tax Abatement Program 
- Aichi Prefecture's Tax Incentive in Depopulated Areas Program 
- Akita Prefecture's Assistance for Site Acquisition in Industrial Parks Program 
- Akita Prefecture's Tax Exemption Program 
- Mie Prefecture's Subsidy System for New Businesses Development Program 
- Underdeveloped Area Industrialization Act   
- Peninsula Development Promotion Act 
- Industrial Relocation Promotion Act 
- Chubu Region Development Act 
 Fisheries 
 
 In answering questions on its prior notificati on (G/SCM/Q/JPN/39), Japan stated that it had 
programs for:  promoting sustainable fisheries development;  fishing vessel insurance and reinsurance;  price stabilization (i.e., support to fi sheries organizations in stocking their members' 
catches);  reducing or reimbursing fuel taxes;  scrapping of fishing vessels;  and obtaining fishing 
vessels (i.e., an interest subsidy).  Were any of these programs in effect during the period covered by 
Japan's most recent subsidy notification?  If so, pl ease explain why they were not notified.  If they 
should be notified, please provide all the require d information under Article 25 of the Subsidies 
Agreement.    G/SCM/Q2/JPN/41 
 Page 3 
 
 
  Wind Turbines 
 
 Publicly available information indicates that in 2006 Japan had a wind power subsidy program in place.  It is our understanding that  the subsidy level varied  depending on various 
conditions being met.  Please describe this progra m and the eligibility criteria for each level of 
subsidy and explain why the program was not notified.   
   
__________