WORLD TRADE  
ORGANIZATION  WT/REG273/1 
6 January 2011 
 (11-0031) 
Committee on Regional Trade Agreements  
  
 
    
 
 
FACTUAL PRESENTATION 
 
Economic Partnership Agreement 
between 
Japan and Switzerland 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 This report, prepared for the considera tion of the Economic Partnership Agreement 
between Japan and Switzerland has been drawn up by the WTO Secretariat on its 
own responsibility and in full consultation with the Parties.  The report has been 
drawn up in accordance with the rules and pr ocedures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to 
Jean-Daniel Rey (tel: +41 22 739 52 64).  WT/REG273/1 
 Page iii 
 
 
  TABLE OF CONTENT 
 
 
Page 
 
I. TRADE ENVIRONMENT 1  
A. OVERVIEW  1 
B. MERCHANDISE TRADE  1  
C. TRADE IN SERVICES AND INVESTMENT  5  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 11  
A. BACKGROUND INFORMATION  11  
B. STRUCTURE OF THE AGREEMENT  12  
III. TRADE IN GOODS 13 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  13  
1. General Provisions 13  
2. Preferential treatme nt on tariffs 13  
3. Liberalization of tariff lines and trade 17  
4. Tariff Rate Quotas 27  
5. Import restrictions 28  
B. RULES OF ORIGIN  28  
C. CUSTOMS VALUATION  30  
D. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  30  
1. Export duties and restrictions 30  
E. REGULATORY PROVISIONS ON TRADE IN GOODS  30  
1. Standards 30  
2. Trade Remedies 31  
3. Subsidies and State-aid 33  
F. CUSTOMS -RELATED PROCEDURES  33  
IV. PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 34  
A. SCOPE AND DEFINITIONS  34  
B. GENERAL PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  35  
1. Measures affecting trade in services 35  
2. Investment 35  
3. Movement of natural persons 36  
C. DENIAL OF BENEFITS . 38  
D. LIBERALIZATION COMMITMENTS IN TRADE IN SERVICES AND INVESTMENT  38  
1. Lists of Reservations / Non-conforming measures for trade in services 39  
2. Lists of Reservations / Non-conforming measures for investment 41  
E. LIBERALIZATION COMMITMENTS IN SELECTED SECTORS AND SECTOR -SPECIFIC 
PROVISIONS ON TRADE IN SERVICES  42  
1. Communication services 43  
2. Financial services 44  
3. Transport services 45  
4. Other services 45  WT/REG273/1 
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  5. "New services" 46  
F. REGULATORY PROVISIONS ON TRADE IN SERVICES  46  
1. Domestic regulation 46  
2. Recognition 47  
3. Other regulatory provisions 47  
G. SAFEGUARD ACTIONS ON SERVICES AND INVESTMENT  47  
V. GENERAL PROVISIONS OF THE AGREEMENT 48  
A. TRANSPARENCY  48  
B. EXCEPTIONS  48  
C. TAXATION  48 
D. ACCESSION  48 
E. INSTITUTIONAL FRAMEWORK  49  
F. DISPUTE SETTLEMENT  50  
G. GOVERNMENT PROCUREMENT  52  
H. INTELLECTUAL PROPERTY RIGHTS  53  
I. ELECTRONIC COMMERCE  56  
J. OTHERS  57 
1. Competition 57  
2. Environment 57  
3. Promotion of a Closer Economic Relationship 58  
K. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  58  
ANNEX I 60 
ANNEX II 65 
 
   
  WT/REG273/1 
 Page 1 
 
 
   
 
Key Facts 
 
Parties to the Agreement:  Japan and Switzerland. 
 
Date of Signature:   19 February 2009. 
 Date of Entry into Force:  1 September 2009. 
 
Date of Notification:   1 September 2009. 
 
I. TRADE ENVIRONMENT 
A. OVERVIEW1 
1. The Free Trade and Economic Partnership Ag reement between Japan and Switzerland 
(hereinafter referred to as "the Agreement") is Japan's 10th free trade agreement (FTA)2 and 
Switzerland's 20th  FTA.3 
2. In 2009, Japan's GDP, with a population of 127.6 million, was estimated at US$5,068billion 
while that of Switzerland, with a population of  7.7 million was estimated at US$500 billion.  
Although both have similar trade profiles, exportin g mainly manufactured goods and importing also 
mainly manufactured goods and fuels (for Japan),  Japan had a lower trade to GDP ratio, 32.2, 
averaged over 2007-2009, than that of Switzerland, 111.2. 
B. MERCHANDISE TRADE  
3. For merchandise trade in 2009, Japan's share of total world exports, was 4.65%, while its 
share in total imports was 4.35%, while Switzerla nd's shares were 1.38% for exports and 1.23% for 
imports.  With total merchandise exports of US$580,719 million and imports of US$551,960 million 
(both in sharp decline from the previ ous year), Japan was the world's 4th largest exporter and importer 
compared to Switzerland's ranking at 14 for both exports and imports (also in sharp decline from the 
previous year, with global exports and impor ts of US$172,850 million and US$155,706 million).4 
4. In 2008, Japan was Switzerland's 4th largest source of imports5, accounting for 2.1% of its 
total imports.  Japan was Switzerland's 3rd largest destination for exports, accounting for 3.3% of its 
                                                      
1 Source for this section: WTO Trade Profiles 2010 ( 2009 data).  Export figures are calculated f.o.b. 
and import figures are calculated c.i.f.  Ranking in world trade excluding intr a-EU trade. For b ilateral trade, the 
2008 figures are reported. 
2 Agreements in goods and services counted as one a nd only agreements in for ce, notified to the WTO, 
counted. 
3 Agreements in goods and services counted as one a nd only agreements in for ce, notified to the WTO, 
counted (counting the Stockholm Convention establishing the EFTA (Goods), the EFTA agreement on Services, and the accession of Iceland to EFTA as one).  For Switzerland  the Agreement (with Japan) is only its third 
concluded independently of EFTA. 
4 EU(27) members counted as one partner and intra-EU trade not counted. 
5 Trade with EU Members counted as trade with one pa rtner.  In 2008, the five top sources of imports 
from Switzerland were: EU (78.8%), the USA (5.8%%), China (2.5%), Japan (2.1%), and Libya (1.7%). WT/REG273/1 
Page 2  
 
  total exports.
6  For Japan, Switzerland represented 0.8% of its total imports7 making Switzerland 
Japan's 23rd largest source of imports - while it was also Japan's 23rd largest destination for exports, 
accounting for 0.6% of its total exports.8 
5. Recent developments in global and intra-Party trade are presented in Charts I.1 and I.2.  
Bilateral trade between Japan and Switzerland h as slowly but steadily pr ogressed during 2000-2008, 
though at a relatively slower pace compared with  global export and import growth for Japan and 
Switzerland.  While maintaining a global trade surp lus during this period, Japan has had a constant 
deficit in its merchandise trade with Switzerland.  Switzerland maintains a small but growing surplus 
in its merchandise trade.  These observations have ho wever to be placed in the context of the relative 
importance of bilateral trade between  Japan and Switzerland as illustrated  in the previous paragraph.  
0100200300400500600700800
2000 2001 2002 2003 2004 2005 2006 2007 20080510152025US$billion US$billionChart I.1 - Japan: Merchandise im ports from and exports to the 
world and to Switzerland, 2000-2008
Source : UNSD, Comtrade database.Imports from Switzerland
Exports to SwitzerlandTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
                                                      
6 In 2008, the five top export destinations from Switzerland were: EU (61%);  the USA (9.6%);  Japan 
(3.3%);  Hong Kong, China (2.9%);  and China (2.8%). 
7 In 2008, the five top sources of imports from Japan were: China (18.8%), the USA (10.4%), EU(27) 
(9.2%), Saudi Arabia (6.7%), and Australia (6.2%). 
8 In 2008, the five top destination of exports from Japan were:  the USA (17.8%), China (16%), EU(27) 
(14.1%), the Rep. of Korea (7.6%), and Hong Kong, China (5.2%).  WT/REG273/1 
 Page 3 
 
 
  050100150200250
2000 2001 2002 2003 2004 2005 2006 2007 2008051015202530US$billion US$billionChart I.2 - Switzerland: Merchandise imports from and exports to 
world and Japan, 2000-2008
Source : UNSD, Comtrade database.Imports from Japan
Exports to JapanTotal imports
Total exportsLeft hand scale: Right hand scale:
 
6. The commodity structure of trade among the Par ties, as well as with the world in the period 
2006-2008, is shown in Charts I.3a  and I.3b on the basis of Harmonized System (HS) sections.   WT/REG273/1 
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  7. Chart I.3a allows focusing particularly on Japan's imports from Switzerland. Optical and 
chemical products accounted for almost two thir d of Japan's imports from Switzerland (respectively 
36.2% for optical products and 35.9% for chemical s).  These sectors represented almost half of 
Switzerland's exports to the world (respectivel y 14.7% and 32.5%) and only 10.1% of Japan's 
merchandise imports from the world (respectively 3.8% for optical and 6.3% for chemical products).  
The third largest import (13.2%) by Japan from Switzerland (machinery), was Switzerland's second 
largest global export (21.8% of its global exports).   Minerals, Japan's most important global import 
originated from other sources. 
Chart I.3a
Japan: import from Switzerland (product composition of merchandise trade, 
annual average 2006-2008)
Japan's imports from Switzerland
Source:  UNSD, Comtrade database.Per cent
Total:  US$5.6 billion
Total:  US$655 billion Total:  US$174 billionSwitzerland's global exportsJapan's global imports 
Machinery 
19.8Machinery 
21.8Other 
4.3Machinery 13.2
Base metals 5.6Chemicals
32.5 Plastics 3.2Other
4.9
Minerals 2.7
Optical 14.7Minerals 34.8
Vehicles 3.3Animals 3.1Vegetables 2.9Miscellaneous 2.1Other 
8.6
Prepared foods 2.4Textiles 2.0Optical 36.2
Chemicals 35.9Precious stones 7.1Prepared foods 1.5
Wood pulp 1.8
Precious stones 6.1Base metals 5.6Vehicles 2.8Base metals 1.2
Chemicals 6.3Textiless 4.6Optical 3.8Prepared foods  3.0Plastics 2.3
  WT/REG273/1 
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  8. Chart I.3b allows focusing particularly on Swit zerland's imports from Japan.  Precious stones 
and vehicles accounted for nearly half of Switzerland's imports from Japan (respectively 28% for precious stones and 26.1% for vehicles).  Vehicles we re Japan's second largest global export (24.9%).  
Machinery, Japan's most important global export,  represented 16.4% of Switzerland's merchandise 
imports from Japan, and was also Switzer land's largest global import (19.2%). 
Chart I.3b
Switzerland: imports from Japan (product compositio n of merchandise trade, 
annual average 2006-2008)
Switzerland's imports from Japan
Source:  UNSD, Comtrade database.Per cent
Total:  US$3.1 billion
Total: US$162 billion Total:  US$714 billionJapan's global exportsSwitzerland's global imports 
Machinery
19.2
Chemicals 6.9Plastics 2.1
Machinery
38.2Other 
10.2
Base metals 8.6Plastics 4.5
Plastics 4.4
Vehicles 24.9Other 
2.2
Other 
7.9Precious stones 28.0
Miscellaneous 3.0
Minerals  8.2Prepared foods 2.9
Chemicals  
18.9Optical 6.6
Base metals 7.8Vehicles 8.7Wood pulp 2.9
Textiles 4.2 Optical 5.0Base metals 2.2
Chemicals 16.4
Minerals 1.7Vehicles 
26.1Machinery 16.4
Precious stones 7.0Optical 4.9
 
 
C. TRADE IN SERVICES AND INVESTMENT  
9. In commercial services trade in 2008, Japan's shar e of total exports was 3.85%, while its share 
of total imports was 4.62%, while Switzerland's shar es represented 2.01% and 1.03% of world exports 
and imports.9  With total commercial services exports of US$146,514 million, and imports of 
US$163,270 million, Japan was the world's 3rd largest exporter and importer compared to 
                                                      
9 EU(27) members counted as one partner and intra-EU trade not counted. WT/REG273/1 
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  Switzerland's ranking as 8
th largest and 17th largest exporter and importe r (with commercial services 
exports of US$76,349 million and imports of US$36,277 million). 
10. Chart I.4 shows the breakdown of commercial services trade for Japan during the period 
2000-2008 during which Japan was a net importer of such service.  Transportation services and other 
business services accounted for the largest shares of both imports and exports followed by royalties 
and license fees. 
050100150200
2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: IMF, BOP CD-Rom.Chart I.4
Japan, total commercial services trade, 2000-2008
US$ billion
Transportation services
Travel
Communications services
ConstructionFinancial serv ices
Computer and information serv ices
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance services
Government services
Note:     Exports of insurance services were negative in the following years: 2001 (US$ -100m illion) and 2002 (US$-380 m illion).
 
  WT/REG273/1 
 Page 7 
 
 
  11. Chart I.5 shows the breakdown of commercial services trade for Switzerland during the 
period 2000-2008 during which it was a net exporter, with the value of exports more than twice that of 
imports.  Business and financial services accounted fo r the largest shares of exports while business 
services and travel accounted for the largest shares of imports during the same period.  
01020304050607080
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008
Note: no trade data of Construction; Computer and information services; a nd Royalties and license  fees in 2000-2008.
Source: IMF, BOP CD-Rom.Chart I.5
Switzerland, total commercial services trade, 2000-2008
US$ billion
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance services
Government services
 
 WT/REG273/1 
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  12. Chart I.6 shows bilateral trade in commercia l services in 2006-2008, as reported by Japan.  
Transportation and business services were the largest categories in terms of imports, with computer and information services and insurance services al so well represented, while business services and 
transportation services were the largest exports.  For both imports and exports, royalties and licence 
fees were also significant. 
0.00.51.01.52.02.53.03.54.04.55.0
Export Import Export Import Export Import
2006 2007 2008
Source: Japan authorities.Chart I.6
Japan, bilateral commercial servic es trade with Switzerland, 2006-2008
US$ billion
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance services
Government services
 
  WT/REG273/1 
 Page 9 
 
 
  13. Chart I.7 shows Japan's total stock of inward  and outward FDI and Chart I.8 shows Japan's 
stock of FDI from and to Switzerland over the peri od 2000-2008.  While Japan's global inward and 
outward investment stocks have grown consistently, its investment in Switzerland has remained 
relatively constant during the same period.  Sw itzerland's investment in Japan has increased 
particularly during the last years of the period.  In 2008, Switzerland's FDI stock in Japan was 
US$1.16 billion accounting for 0.2% of total investment in Japan (US$597.34 billion).  
050100150200250300350400450500550600650
2000 2001 2002 2003 2004 2005 2006 2007 2008050100150200250300350400450500550600650
2000 2001 2002 2003 2004 2005 2006 2007 2008Chart I.7
Japan inward and outw ard foreign direct investment stock with world, 2000-2008
Inward Outward
Source : WTO Secretariat estimates based on data at http://www.boj.or.jp/en.US$ billion US$ billion
 WT/REG273/1 
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  02468
2000 2001 2002 2003 2004 2005 2006 2007 200802468
2000 2001 2002 2003 2004 2005 2006 2007 2008Chart I.8
Japan inward and outward foreign direct investment  stock with Switzerland, 
2000-2008
Inward Outward
Source : WTO Secretariat estimates based on data at http://www.boj.or.jp/en.US$ billion US$ billion
  WT/REG273/1 
 Page 11 
 
 
  14. Chart I.9 shows Switzerland's FDI with the world in 2000-2008.  Switzerland is a significant 
net outward investor, with outward FDI accoun ting for over US$700 billion in 2008 compared with 
the corresponding figure of US$600 billion for Japan.  Switzerland is also a net investor in Japan as Chart 1.8 shows. 
050100150200250300350400450500550600650700750
2000 2001 2002 2003 2004 2005 2006 2007 2008050100150200250300350400450500550600650700750
2000 2001 2002 2003 2004 2005 2006 2007 2008Chart I.9
Switzerland, inward and ou tward foreign investment st ock with world, 2000-2008
Inward OutwardUS$ billion US$ billion
Source: UNCTAD, Foreign Direct Investment database.
 
 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
15. Negotiations between Japan and Switzerland we re initiated in May 2007 and conducted 
through eight rounds of bilatera l negotiations.  The Agreement was signed on 19 February 2009 and 
entered into force on 1 September 2009. 
16. The Parties notified the goods and services asp ects of the Agreement to the WTO on 
1 September 2009, in document WT/REG273/N/1 – S/C/N/512.  The notification was made pursuant to Article XXIV:7(a) of the GATT 1994 for goods, a nd to Article V:7(a) of GATS for services.  The 
text of the Agreement, together with its Annexes,  is available on the Parties' official websites: 
 Japan :  
 http://www.mofa.go.jp/region/euro pe/switzerland/epa0902/index.html
 
 
 Switzerland : 
 http://www.seco.admin.ch/themen/00513/ 02655/02731/02970/index.html?lang=en  WT/REG273/1 
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  17. While Switzerland had concluded a number of FTAs, within the framework of EFTA
10, the 
Agreement is a bilateral Agreement, outside of the EFTA scope.  However, as Switzerland and 
Liechtenstein are bound by the Customs Union Treat y of 29 March 1923, the Agreement also applies 
to Liechtenstein for matters covered by the Customs Union Treaty.  This means, that while the trade 
in goods part of the Agreement applies also  to Liechtenstein, the services part does not. 
B. STRUCTURE OF THE AGREEMENT  
18. The Agreement is composed of a Preamble and sixteen Chapters.  It is complemented by 
ten Annexes, each one related to a specific Chapter of the Agreement, including the Parties Schedules 
related to their liberalization commitments in  goods and Lists of Reservations of Specific 
Commitments in the context of their liberalization commitments in services and investment. 
19. The Parties also adopted, on 19 February 2009, a separate Implementing Agreement , pursuant 
to Article 10 of the Agreement, which sets forth details and procedures for the implementation of 
certain provisions of the Agreement.  The Implementing Agreement constitutes an integral part of the 
Agreement. In addition, on the occasion of the signing of the Agreement, the Parties issued a Joint 
Statement . 
20. The Joint Committee established unde r the Agreement met, for the first time on 1 September 
2009, on the date of entry into force of the Agreemen t.  It adopted three decisions:  it established the 
Rules of Procedures of the Joint Committee (Decisi on No. 1), Operational Procedures for trade in 
Goods (Decision No. 2), and Operational Procedures for Rules of Origin (Decision No. 3). 
Box II.1:  Outline of the Agreement. 
Chapters, Annexes and 
Letters Title/description 
Preamble  
Chapter 1 General Provisions 
 Æ Implementing Agreement (related to Art. 10) 
Chapter 2 Trade in Goods 
 Æ Annex I: Schedules  (related to Art. 15) 
      Æ Appendix 1 (Schedule of Japan) 
      Æ Appendix 2 (Schedule of Switzerland) 
 Æ Annex II: Rules of Origin  (related to Art. 25) 
      Æ Appendix 1 (Product Specific Rules) 
      Æ Appendix 2 (Specimen of Certificate of Origin) 
      Æ Appendix 3 (Text of Origin Declaration) 
Chapter 3 Customs Procedures and Trade Facilitation 
Chapter 4 Sanitary and Phytosanitary Measures 
Chapter 5 Technical Regulations, Standard s and Conformity Assessment Procedures 
Chapter 6 Trade in Services 
 Æ Annex III: List of Reservations  (related to Art. 57) 
      Æ Appendix 1 (List of Reservations of Japan) 
      Æ Appendix 2 (List of Reservations of Switzerland) 
 Æ Annex IV: Disciplines on Domestic Regulations on Services  (related to Art. 
48) 
 Æ Annex V: Recognition of Qualifications of Service Suppliers  (related to 
Art. 49) 
 Æ Annex VI: Financial Services  (related to Chapter 6) 
 Æ Annex VII: Telecommunication Services  (related to Chapter 6) 
                                                      
10 The European Free Trade Association, compri sing of Iceland, Liech tenstein, Norway, and 
Switzerland.  WT/REG273/1 
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  Box II.1:  Outline of the Agreement. 
Chapters, Annexes and 
Letters Title/description 
Chapter 7 Movement of Natural Persons 
 Æ Annex VIII: Specific Commitments for the Mo vement of Natural Persons  
(related to Chap. 7) 
      Æ Appendix 1 (Specific Commitments by Japan) 
      Æ Appendix 2 (Specific Commitments by Switzerland) 
Chapter 8 Electronic Commerce 
Chapter 9 Investment 
 Æ Annex IX: List of Reservations  (related to Art. 90) 
      Æ Appendix 1 (List of Reservations of Japan) 
      Æ Appendix 2 (List of Reservations of Switzerland) 
Chapter 10 Competition 
Chapter 11 Intellectual Property 
 Æ Annex X: Geographical Indications  (related to Chapter 11 / Art. 119) 
Chapter 12 Government Procurement 
Chapter 13 Promotion of a Closer Economic Relationship 
Chapter 14 Dispute Settlement 
Chapter 15 Administration of the Agreement 
Chapter 16 Final Provisions 
Annexes I to X Note: Annexes are listed above in conn ection with the Chapters they refer to. 
 
Source: WTO Secretariat based on the Agreement.  
 
III. TRADE IN GOODS 
21. While the Preamble and Chapter 1 contain provisi ons applicable to trade in goods and trade in 
services, Chapters 2 to 5 contain provisions specific to trade in goods.   
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General Provisions 
22. Each Party gives national treatment to the goo ds of the other Party in accordance with 
Article III of the GATT 1994.  Article III of th e GATT 1994 is made part of the Agreement 
mutatis mutandis  (Article 14).  
2. Preferential treatment on tariffs 
23. Article 15 provides that the Parties shall eliminate or reduce customs duties on imports on 
originating products of Japan and Switzerland importe d by one Party from the other.  The terms and 
conditions for the elimination or reduction of customs duties are set out in Annex I, which contains, in 
its Appendix 1, the Schedule of tariff concessions of  Japan, and in its Appendix 2, the Schedule of 
tariff concessions of Switzerland.  Article 15 has ther efore to be read in connection with the Parties' 
Schedules of tariff elimination attached to, and forming an integral part of the Agreement. 
"Originating product" means a product which quali fies as an originating product under Annex II, 
which contains the rules of orig in applicable to the Agreement.11  
24. In case an MFN rate of customs duty is lower th an the rate established by Annex I, the MFN 
rate is applied to products orig inating in Japan or Switzerland. 
                                                      
11 See Part III, section B of this factual presentation. WT/REG273/1 
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  25. The tariff elimination programme
12, presented in the following section and supported by 
Charts and Tables is complemented by a tariff reduction programme.13  Certain products are however 
excluded by Japan and/or by Switzerland from the tariff elimination / reduction programme.14  The 
Agreement also includes commitments, by both Parties, on tariff rates quotas (TRQs), progressively introduced for certain products during a transitional period of up to 10 years.
15 
26. Customs duty elimination / reduction starte d on 1 September 2009 when the Agreement 
entered into force, from the base ra tes in the respective Schedules. It will be completed at the end of a 
transition period of 15 years (2024).16 
27. For both Parties, the Agreement identifies diffe rent categories for the preferences granted by 
the Parties to each other are described. 
28. A general review of the Agreement's provisions  on trade in goods will take place in 2014 
(Article 25).  On that occasion, the Parties may, if they agree, enter into negotiations on the possible 
improvement of market access under Chapter 2 a nd on their Schedules of tariff concessions. 
(a) Japan's elimination / reduction programme, by categories 
29. Japan's Schedule distinguishes between 4 main product categories for which the elimination 
or reduction of customs duties is implemented differe ntly.  In addition, one product category identifies 
products which are excluded from the customs ta riff elimination / reduction programme.  These 
categories can be summarized as follows: 
30. Category "A"  covers products for which customs duties were eliminated at the date of entry 
into force of the Agreement (1 September 2009).   Category "B"  covers products for which customs 
duties will be reduced and eliminated progressively in equal annual instalments from the base rate.17  
Seven different sub-categories, with transition peri ods ranging from four to sixteen annual instalments 
have been established and can be summarized as follows:  
Table III.1 
Summary of Category "B" (Japan)  
Implementation Periods applicable to the Progressive elimination of customs duties on imports by Japan 
Sub-categories Number of entries (*) Number of equal annual 
instalments Duty free on 
B3 2 4 1 April 2012 
B5 39 6 1 April 2014 
B7 44 8 1 April 2016 
B9 1 10 1 April 2018 
B10 379 11 1 April 2019 
B12 2 13 1 April 2021 
B15 107 16 1 April 2024 
 
Note (*):  "Number of entries" means numb er of entire tariff lines, at the 6-digits le vel, or part of tariff lines subject to t he commitments.  
 
Source :  WTO Secretariat based on the Agreement,  Annex I, Appendix 1 (Schedule of Japan). 
                                                      
12 See Categories "A", and "B" in Japan's Schedule of tariff concessions, and Category "A" in 
Switzerland Schedule of tariff concessions. 
13 See Category "P" in Japan's and in Switzerland's Schedules of tariff concessions, 
14 See Category "X" in Japan's Schedule of tariff concessions and Categories "X" and "Y" in 
Switzerland's Schedule of tariff concessions. 
15 See Category "Q" in Japan's Schedule of tariff co ncessions and products identified as eligible for 
TRQs in column1 1 or 6 of Switzerland's Schedule of tariff concessions. 
16 In the case of Switzerland, all th e elimination / reduction commitmen ts took place at the entry into 
force of the Agreement. 
17 For Japan, the following reductio ns are due to take place on 1 April of each following  year until the 
elimination programme is completed.  WT/REG273/1 
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  31. Category "P"  covers products for which customs duti es have to be reduced, in most cases 
immediately.  Category P contains 13 sub-categori es, which will have different final rates once the 
Agreement is implemented.  One additional sub- category covers products for which customs duties 
are to be reduced in eleven equal annual instalme nts from the base rate to 5%.  The 14 sub-categories 
can be summarized as follows:  
Table III.2 
Summary of Category "P" (Japan)  
Final Rates and Implementation Periods applicable to the Pr ogressive reduction of customs duties on imports by Japan 
Sub-
categories Number of entries a Number of equal annual 
instalments Final Rate reached on Final Rate 
Pa 1 immediate reduction 1 September 2009 6.3% 
Pb 1 immediate reduction 1 September 2009 8.1% 
Pc 1 immediate reductionb 1 September 2009 8.5% 
Pd 1 immediate reduction 1 September 2009 9.6% 
Pe 1 immediate reduction 1 September 2009 12% 
Pf 1 immediate reduction 1 September 2009 12.6% 
Pg 1 immediate reduction 1 September 2009 13.4% 
Ph 5 immediate reduction 1 September 2009 17% 
Pi 2 immediate reduction 1 September 2009 19% 
Pj 1 immediate reduction 1 September 2009 20% 
Pk 1 immediate reduction 1 September 2009 23.8% 
Pl 2 immediate reduction 1 September 2009 27.2% 
Pm 1 immediate reduction 1 September 2009 32% 
Pn 24 11 1 April 2019 5% 
 
a "Number of entries" means number of entire tariff lines, at the 6-digits level, or part of ta riff lines subject to the commit ments. 
b For this Sub-category, special rules have been agreed in the context of the implem entation of the Bilateral Safeguard (Articl e 20, 
 paragraphs 2 and 9).   
Source :  WTO Secretariat based on the Agreement,  Annex I, Appendix 1 (Schedule of Japan). 
 
32. Category "Q"  covers products for which Japan grants preferential access to originating 
products in Switzerland through a TRQ.18  For products imported out of the quota, the MFN rate at the 
time of importation applies.  The TRQ-related pref erential access granted by Japan is summarized in 
the Summary Table contained in Annex II, Part A of this factual presentation. 
33. Category "X"  covers products, which are exclude d from the Agreement's coverage.  
(b) Switzerland's elimination / reduction programme, by categories 
34. Switzerland's Schedule contains tariff lines wh ich are sometimes split to distinguish similar 
products either by their end-uses, by their producti on processes, or to introduce a seasonal criterion. 
The Schedule distinguishes between 4 main product categories for which the elimination or reduction 
of customs duties is implemented differently.  In addition, one category cont ains products that are 
excluded from the customs tariff elimination / reduction programme.  These categories can be summarized as follows: 
35. Category "A"  covers products for which customs duties were eliminated at the date of entry 
into force of the Agreement (1 September 2009).  Duty elimination for some of these products, 
however, is "within the limits of a tariff quota".  The modalities for TRQs are to be deduced from the 
types of TRQ as recorded in the WTO List LIX. 
36. Category "P"  covers products for which customs duties were reduced on the date of entry into 
force of the Agreement. The Category contains three sub-categories, with different final rates and/or 
methods of computing them.  The first (P1) contains tariff lines (or parts of tariff lines) for which a 
preferential rate is granted, at the entry into for ce of the Agreement, to imports originating in Japan. 
                                                     
 
18 See also Part III, section 4 of this factual presentation. WT/REG273/1 
Page 16  
 
  Out of 135 entries, 56 are subject to duty reductions "w ithin the limits of a tariff quota".  In addition, 
special terms and conditions, set out in column 6 of  the Schedule, are applicable to certain reduction 
commitments. For instance, the reductions fo r certain types of cigarettes (HS 2402.2010 and 
2402.2020) are subject to renegotiation within a 24-m onth period from the date of entry into force of 
the Agreement. 
37. The second (P2) contains tariff lines (or parts of tariff lines) for which a preferential rate is 
granted to imports originating in Japan, at the entry into force of the Agreement.  The final rate is 
based on deducting the preferential "rebate" rate contained in Switzerland's Schedule of tariff 
concessions from the MFN rate applicable at the time of import. Out of 70 entries, 22 are subject to 
reductions "within the limits of a tariff quota".  In addition, special terms and conditions, set out in 
column 6 of the Schedule, are applicable to certain reduction commitments.  
38. The third (P3) contains tariff lines (or parts of  tariff lines) for which Switzerland commits to 
limit the customs duties imposed on imports originati ng in Japan to the "Agricultural Element" (AE) 
of the duties.  The AE of the customs duty, levied  upon import, shall be based on, but not exceed, the 
difference between the Swiss domestic price and th e world market price of the agricultural raw 
materials incorporated into the products concerned.
19  Out of 66 entries, 2 are reduced "within the 
limits of a tariff quota".  
39. Category "X"  covers products, which are excluded from the customs duties elimination / 
reduction programme .  Category "Y"  covers products in HS Chapter 1920, which are excluded from 
the customs duties elimination / reduction programme, but for which export subsidies21 may be 
maintained by Switzerland. 
40. Although there is no specific category coveri ng products for which Switzerland grants a 
preferential access to originating products in Switzerland through a TR22, Switzerland's commitments 
(in categories A and P) are, in a number of cases, "within the limits of a tariff quota".  For products 
imported above the TRQ, no preferential access is gran ted and the MFN rate applies.  References to 
TRQs are made for 193 tariff lines (or parts of tariff lines) in HS Chapters 1, 2, 5-8, 10, 20, 22, and 
35.  However, a number of lines referring to TR Qs correspond to products, for which Switzerland is 
not granting any preference to Japanese products (C ategory "X", excluded from the elimination / 
reduction programme).  Twenty-one different types of  TRQs are referred to in Switzerland's Schedule 
of concessions which concern the same products as in Switzerland's WTO commitments, contained in 
WTO Schedule LIX (Switzerland and Liechtenstein).23  The preferential treatment granted by 
Switzerland under the Agreement takes the form of preferential in-quota duties granted for products 
originating in Japan, within the overall quota quantities24 (final quota quantities contained in Schedule 
LIX, Part I, Section IB, column 4) of the respective WTO TRQs.  For Category "A" concessions the in-quota rate is zero immediately while for categories P1, P2 and P3 the in-quota-rate is the same as in 
                                                     
 
19 Annex I, Appendix 2, Section 1 (Notes for the Schedule of Switzerland), paragraph 2.b 
20 Preparations of cereals, flour, star ch or milk;  pastrycooks' products. 
21 As defined in Article 9 of the WTO Agreement on Agriculture. 
22 See also Part III, section 4 of this factual presentation. 
23 While the WTO Schedule LIX has been prepared, in 1993/94, on the basis of the HS 1992 
classification, Switzerland's Schedule of Tariff Concession s attached to the Agreement has been prepared on the 
basis of the HS 2007 classification.  As a consequence, a number of tariff lines listed in the context of the 
Agreement differ from the one registered in the WTO Schedule LIX. The TRQ-related lines are however consistent with the TRQ commitments contained in th e WTO Schedule LIX (Switzerland/Liechtenstein). This 
information has been confirmed by Switzerland. 
24 Final quota limits are often set for several tariff lin es (and not only for the lines for which Japan is 
granted a preferential access). We have therefore not inse rted the applicable quota limit for each line in the 
Summary Table contained in Annex II, Part B of this factual presentation, as it could mislead the reader.  WT/REG273/1 
 Page 17 
 
 
  Switzerland's Schedule of Tariff concessions (Annex II, Appendix 2).  The TRQ's maintained by 
Switzerland for Japan is discussed be low and also in Annex II below.25 
41. In addition, for three products (table grap es, peaches, and nectarines), Switzerland opened 
specific bilateral TRQs, through which customs duti es are eliminated "within the limits of a tariff 
quota of 50 tonnes/year" only for "gift fruits".26 
42. The Operational procedures for trade in goods referred to in Article 23 mandate the Joint 
Committee to take a decision to provide detailed regul ations pursuant to which the relevant authorities 
of the Parties shall implement their functions unde r Chapter 2 of the Agreement (part on trade in 
goods).  The Joint Committee at its first meeting a dopted Operational Procedures for Rules of Origin, 
in particular in the context of the allocation of TRQs.27 
43. The following section addresses the commitments made by a Party in terms of elimination of 
tariffs for imports from the other Party. For Japan and Switzerland this is covered by Category A and, 
for Japan only and to a certain extend, by Category Q. 
3. Liberalization of tariff lines and trade 
(a) Japan's liberalization schedule 
44. Japan's applied tariff in 2009 consisted of 8, 836 lines at the HS nine-digit level (HS 2007).28  
Of these tariff lines, 603 lines carry non ad valorem  rates.29  Table III.1.A shows the scheduled duty 
elimination in terms of tariff lines and trade, as applied by Japan to imports from Switzerland.30  
Before the entry into force of the Agreement, 3, 657 tariff lines (41.4% of Japan's tariff) were already 
duty-free on an MFN basis, representing 77.6% of Japan's imports by value (during 2006-08) from 
Switzerland.  Upon entry into force of the Agreemen t, an additional 3,547 lines (40.1% of the tariff) 
became duty-free for imports form Switzerland.  As a result, 81.5% of Japan's tariff became duty free 
for imports from Switzerland, corr esponding to 97.2% of imports by value from Switzerland.  After 
10 years of implementation, in 2018, 7,738 lines (87.6% of the tariff) are to become duty-free, 
amounting to 99.4% of the value of imports from Switzerland.  By the end of the implementation period (2024), 7,849 tariff lines, corresponding to 88. 8% of Japan's tariff will be duty free for imports 
from Switzerland, representing 99.5% of the value of  its imports from Switzerland.  987 tariff lines 
(11.2% of Japan's tariff) are excluded from any ta riff elimination, representing 0.5% of imports by 
value from Switzerland.  The 987 tariff lines which re main dutiable consist of lines that are excluded 
from the elimination commitments of the Agr eement, or because the commitment undertaken 
corresponds to an immediate or a progressive reduction of the customs duty rate to reach the final preferential rate at the end of the transitional pe riod.  Certain tariff lines (or parts of tariff lines)
31, are 
                                                      
25 The quota allocation method used by Switzerland to administer its commitments varies according to 
the types of product.  Details on the methods used and reports on the allocation are available at: 
http://www.blw.admin.ch/themen/00007/00059/index.html?lang=fr 
26 The tariff lines (or parts of tariff lines) subject to TRQ commitments are: HS ex0806.1011 (Table 
grapes considered as "gift fruits" imported from 15 July to 15 September); ex0806.1012 (Table grapes 
considered as "gift fruits" imported from 16 September to  14 July); ex0809.3010 (Pe aches considered as "gift 
fruits"); and ex 0809.3020 (Nectarin es considered as "gift fruits"). 
27 See the section of this factual presenta tion on Rules of origin for more details. 
28 As is standard practice, the WTO Secretariat do es not include tariff lines  which are subject to 
in-quota rates in its calculations. 
29 Of these 603 lines 203 have specific duties, 322 have mixed duties while 56 lines have compound 
rates of duty.  In addition, 22 lines have other duties. 
30 The Schedule can be found in Annex I, Appendix 1 of the Agreement. 
31 See Annex II, Part A below. WT/REG273/1 
Page 18  
 
  subject to preferential tariff rate quotas (TRQs) for imports from Switzerland and are discussed in 
Section 4 below. 
Table III.3 
Tariff elimination commitments under the Agreement and corresponding average trade 
Japan 
Duty phase-out 
period Number of lines % of total lines in 
Japan's tariff schedule Value of Japan's imports 
from Switzerland 
(2006-2008) 
in million US$ % of Japan's total 
imports from  
Switzerland 
2006-2008 
MFN duty free 
(2009) 3,657 41.4 4,302.5 77.6 
2009 3,547 40.1 1,087.5 19.6 
2012 2 0.0 10.6 0.2 
2014 69 0.8 90.9 1.6 
2016 51 0.6 7.8 0.1 
2018 1 0.0 0.7 0.0 
2019 411 4.7 16.2 0.3 
2021 2 0.0 0.1 0.0 
2024 109 1.2 0.1 0.0 
Remain dutiable 987 11.2 28.7 0.5 
Total 8,836 100.0 5,545.0 100.0 
 
Note: Tariff lines subject to in-quota rates are excluded in the computation.  Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provided by Japan.  WT/REG273/1 
 Page 19 
 
 
  45. Chart III.1 presents Japan's duty e limination under the Agreement by ranges of applied rates. 
Most of the lines to be progressively freed of duties during the transition period are subject to rates of 10% or less.  For lines with higher rates of MFN duties, especially those with rates above 20% and 
many non ad valorem  duties are to be eliminated after 10 year s of the Agreement having been in force 
(2019). 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,00020092012201420162018201920212024Chart III.1
Japan's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Japan.Number of duty-free lines (cumulative)
Duty-free ≤10% ≤20% MFN is: non ad valorem ≤30% ≤50% ≥50% ≤40%
 
 WT/REG273/1 
Page 20  
 
  46. Table III.4 shows Japan's tariff elimination commitments vis-à-vis  Switzerland by HS section 
product categories.  Of the 7,849 tariff lines which will become duty free for imports from Switzerland at the end of implementation of the Agreement
32, almost one third fall under HS section 
XI (textiles, 20%) and HS section VI (chemicals,12%) while the others are distributed across the other 
HS sections with a majority falling under HS s ections XVI (machinery), XV (base metals) and IV 
(prepared food).   
Table III.4 
Japan: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  
HS section and 
description  MFN 
average
% Total 
No. of 
lines  
MFN  
2009  
2009 
2012 
2014 2016 
2018 
2019 
2021 
2024 
Remain 
dutiable  
Avg. Final 
Tariff 
(Dutiable)  
I Live animals and 
animal products 8.3 517 112 34     59  4 308 12.7 a 
II Vegetable products 6.1 529 166 129 2 5 12  92  19 104 20.2 a 
III Animal or 
vegetable fats and oils 3.8 86 20 22     7   37 14.5 a 
IV Prepared foods etc. 16.4 764 79 47  12 20 1 119 2 83 401 21.3 a 
V Minerals 0.5 216 163 34  18      1 - 
VI Chemicals and 
chemical products 2.3 1,050 398 636   1  2   13 11.7 a 
VII Plastics and rubber 2.5 296 103 179     14     
VIII Hides and skins 10.5 193 65 3   12  72   41 13.4 
IX Wood and articles 3.4 263 94 92  32   4  3 38 6.9 
X Pulp, paper etc. 0.0 169 169           
XI Textiles and 
textiles articles 6.5 1,989 78 1,905        6 - 
XII Footwear, 
headgear 16.4 104 6 23   1  36   38 20.3 
XIII Articles of stone 1.2 164 99 63   1  1     
XIV Precious stones, 
etc. 1.3 80 58 17  2   3     
XV Base metals and 
base metals products 0.9 852 614 238          
XVI Machinery 0.1 919 905 14          
XVII Transport 
equipment 0.1 146 145 1          
XVIII Precision 
equipment 0.2 279 270 6   3       
XIX Arms and 
ammunition 6.9 24  24          
XX Misc. 
manufactured articles 1.8 189 106 80   1  2     
XXI Works of art, etc. 0.0 7 7           
Total 4.8 8,836 3,657 3,547 2 69 51 1 411 2 109 987 16.9 
 
- specific duty 
a contains ad valorem  and alternate duties 
Note: Tariff lines subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates a re excluded 
and the ad valorem  part of alternate rates are included. 
Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on da ta provided by Japan. 
 
47. While 3,547 lines were liberalized immediately, the remainder are mostly to be liberalized in 
2019 (411 lines) and 2024 (109 lines).  Of the 987 lines retaining a duty at the end of the 
implementation period, the vast majority (86%) fall under HS sections I to IV (agricultural products).  
At the end of the implementation period (2024 in the case of Japan), the overall average tariff of the 
lines remaining dutiable will be 16.9% with the high est rates for prepared foods (21.3%), footwear 
(20.3%) and vegetable products (20.2%).   
                                                      
32 Including the 3,657 tariff lines which were already duty free on an MFN basis in 2009.  WT/REG273/1 
 Page 21 
 
 
  48. Chart III.2 shows a comparison of average du tiable rates in those HS sections where 
preferential duties remain at the end of the implementation period.33  The comparison is made 
between the average preferential and MFN rates for lin es subject to preferential duties only.  For those 
HS sections where tariff peaks remain after impl ementation of the Agreement is completed, the 
preferential duties are identical to the MFN duties fo r HS sections I, II, III, VI, and IX, while the 
average preferential duties are lower than MFN duties for HS sections IV, VIII, and XII.  The average 
preferential rates range from between 6.9% in HS Section IX to 20.3% in HS XII.   
0.0 10.0 20.0 30.0XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXII*XIXIXVIIIVIIVI*VIVIIIIIIChart III.2
Japan:  Average of dutiabl e rates, by HS SectionHS Section  
Note: For tariff lines with non ad valorem  components, only the ad valorem  part of alternate rates are included in the calculation.
          *HS sections V and XI only contain specific duties.Source :  WTO Secretariat estimates, based on data provided by Japan.Average rate of duty (%)
MFN Preferential
 
 
                                                      
33 HS Sections V and XI contain sp ecific duties and in absence of AVEs, it is not possible to include 
these lines in the comparison. WT/REG273/1 
Page 22  
 
  49. Chart III.3 shows a comparison of average du tiable rates in those HS Chapters where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines s ubject to preferential duties only.  For those 
HS Chapters where tariff peaks remain after impl ementation of the Agreement is completed, the 
preferential duties are identical to the MFN duties fo r all Chapters except for 18, 19, 20, 41, 42, and 
64, where the preferential duties are lower, in most cases slightly lower, than the MFN duties.
34 
05101520253035404550
01
02
03
0405
07
08
101112
*13
151617
18
19
20
21
22
232405101520253035404550
*25
29
35
3841
42
4344
*50
64Chart III.3
Japan: Average of dutiable rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
Note: For tariff lines with non ad valorem  components, only the ad valorem part of alternate rates are included in the calculation; 
          * HS Chapters 13, 25 and 50 only contain specific duties.Source :  WTO Secretariat estimates based on data provided by Japan.
 
(b) Switzerland's liberalization schedule 
50. Switzerland's tariff consists of 8,082 lines, 6,657 (82.4%) of which are non ad valorem .35  As 
the Swiss tariff comprises essentially specific du ties, the WTO Secretariat has calculated ad valorem  
equivalents (AVEs) as the ratio of specific duties to import unit values, which in turn are estimated by 
the ratio of import values to import quantities/ volumes in 2008 (at the HS eight-digit level).36  If no 
import data were available for 2008,  import data for 2007 were used.  
51. Table III.5 shows the scheduled duty elimination in terms of tariff lines and trade, as applied 
by Switzerland to imports from Japan.37  Before the entry into force of the Agreement, 1,425 tariff 
lines (17.6% of Switzerland's tariff) were already du ty-free on an MFN basis, representing 19.99% of 
                                                      
34 HS Chapters 13, 25, and 50 contain specific duties and in absence of AVEs, the comparison is not 
possible. 
35 As is standard practice, the WTO Secretariat do es not include tariff lines  which are subject to 
in-quota rates in its calculations. 
36 This was the methodology used for instance in the most recent Trade Policy Review of Switzerland 
and Liechtenstein (WT/TPR/G/208/Rev.1). 
37 The Schedule can be found in Annex I, Appendix 2 of the Agreement.  WT/REG273/1 
 Page 23 
 
 
  Switzerland's imports by value from Japan duri ng 2006-08.  Switzerland implemented all its tariff 
concessions immediately upon entry into force of the Agreement, with an  additional 5,303 lines 
(65.6% of the tariff) becoming duty-free for imports from Japan.  As a result, 83.2% of Switzerland's 
tariff became duty free for imports from Japan, corresponding to 99.75% of imports by value from Japan.  1,354 tariff lines (16.8% of Switzerland's  tariff) are excluded from any tariff elimination, 
representing 0.25% of imports by value from Japan .  The 1,354 tariff lines which remain dutiable 
consist of tariff lines which are excluded from the elimination commitments of the Agreement, or 
because the commitment involves a reduction of custom s duties either immediately or as indicated in 
Switzerland's Schedule contained in  Annex I, Appendix 2.  In a ddition, for a number of products, 
Switzerland's commitments took the form of pref erential TRQs linked to WTO TRQ commitments or 
bilateral TRQs (see below).  In-quota rates are excluded in the Secretariat's calculations. 
Table III.5 
Tariff elimination commitments under the Agreement and corresponding average trade 
Switzerland 
Duty phase-out 
period Number of lines % of total lines in 
Switzerland's tariff 
schedule Value of Switzerland's 
imports from Japan 
 (2006-2008) 
in million US$ % of Switzerland's 
total imports from  
Japan 
2006-2008 
MFN duty free (2009) 1,425 17.6 697.3 19.99 
2009 5,303 65.6 2,781.8 79.76 
Remain dutiable 1,354 16.8 8.7 0.25 
Total 8,082 100.0 3,487.8 100.0 
 
Note: Tariff lines subject to in-quota rates are excluded in the calculation. 
 Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provi ded by Switzerland and WTO-IDB. WT/REG273/1 
Page 24  
 
  52. Chart III.4 presents Switzerland's duty elimination under the Agr eement by ranges of applied 
MFN rates.  Almost Switzerland’s entire tariff is non ad valorem  and these non ad valorem  tariffs 
were eliminated for imports originating in Japan at  the date of entry into force of the Agreement 
(1 September 2009). 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,0002009Chart III.4
Switzerland's duty elimin ation under the AgreementYear of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Switzerland.Number of duty-free lines (cumulative)
Duty-free MFN is: non ad valorem 
 
53. Table III.6 shows Switzerland's tariff elimination commitments vis-à-vis  Japan by HS section 
product categories.  Of the 6,728 tariff lines for which imports from Japan will enter duty free under the Agreement
38, almost 40% fall under HS section XI (textiles 20%) and HS section XVI (machinery 
19.5%) while the others are distributed across the ot her HS sections especially Sections II (vegetable 
products), IV (prepared foods) and XV (b ase metals and base metal products).   
Table III.6 
Switzerland: Tariff elimination under the Agreement, by HS section  
Number of 
duty-free lines HS section and description  MFN 
average
% Total 
No of 
lines  MFN 
2009  2009 Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  
I Live animals and animal products 47.8 337 123 31 183 5.0 
II Vegetable products 21.1 948 168 175 605 6.3  
III Animal or vegetable fats and oils 30.5 189 39 8 142 4.0  
IV Prepared foods etc. 16.0 595 83 95 417 9.0  
V Minerals 0.5 182 119 63   
VI Chemicals and chemical produc ts 1.4 1,015 409 599 7 CHF 465.1 par 
100 kg brut a 
VII Plastics and rubber 2.0 241 30 211   
VIII Hides and skins 1.6 74 15 59   
IX Wood and articles 2.5 130 14 116   
X Pulp, paper etc. 5.5 181 24 157   
                                                      
38 Including the 1,425 tariff lines which were already duty free on an MFN basis in 2009.  WT/REG273/1 
 Page 25 
 
 
  Number of 
duty-free lines HS section and description  MFN 
average
% Total 
No of 
lines  MFN 
2009  2009 Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  
XI Textiles and textiles articles 5.2 1,094 34 1,060   
XII Footwear, headgear 3.3 61  61   
XIII Articles of stone 2.9 160 2 158   
XIV Precious stones, etc. 0.4 61 7 54   
XV Base metals and base metals 
products 1.4 913 39 874   
XVI Machinery 0.8 1,234 204 1,030   
XVII Transport equipment 1.4 196 18 178   
XVIII Precision equipment 0.7 257 55 202   
XIX Arms and ammunition 1.1 28  28   
XX Misc. manufactured articles 1.9 176 34 142   
XXI Works of art, etc. 0.0 10 8 2   
Total 7.4 8,082 1,425 5,303 1,354 8.5 
 
a Average of specific duties.  
Note: The majority of Switzerland's tariff  is subject to specific duties for which ad valorem  equivalents were estimated by the 
Secretariat. 
Tariff lines subject to in-quota rates are excluded in the comput ation; for the calculation of averages, specific rates are exc luded 
and the ad valorem  equivalents (AVEs) are included. 
 AVEs are calculated as the ratio of specific duties to import unit values, estimated by the ratio of import values to import 
 quantities/volumes in 2008 ( at the HS 8-digit level).  If no import data were available in 2008, 2007 data were used. 
Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on data provi ded by Switzerland and WTO-IDB. 
 
54. Of the 1,354 lines retaining a duty once the Agreement is implemented (2009 for 
Switzerland), the vast majority (99.5%) fall under HS  sections I to IV (agricultural products).  The 
overall average tariff of the lines remaining dutiable was 8.5% with the highest rates for prepared 
foods (9%) and the lowest for live animals and animal products (5%).39 
                                                      
39 Data were not available to calculate the AVEs fo r HS Section VI (Chemicals and chemical products). WT/REG273/1 
Page 26  
 
  55. Chart III.5 shows a comparison of average du tiable rates in those HS sections where 
preferential duties remain at the end of the implementation period.
40  The comparison is made 
between the average preferential and MFN rates for lin es subject to preferential duties only.  For most 
HS sections where tariff peaks remain after implementation of the Agreement is completed 
(HS Sections I, II, III, and VI), the preferential du ties equal the MFN duties.  For HS Section IV (food 
products, beverages, and tobacco), on average, the pr eferential duties are slightly lower than the MFN 
duties.  
56. It can be noted that only the residual duties, fo r which an AVE can be calculated, have been 
used to do the averaging of the preferential duties in order to co mpare them with the average MFN 
duties. This needs to be taken into considera tion when attempting to interpret the two following 
Charts. 
0 1 02 03 04 05 06 07 08 09 0 1 0 0XXIXXXIXXVIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart III.5
Switzerland:  Average of dutiable rates, by HS Section
HS Section  
Average rate of duty (%)
MFN Preferential
Note:  For tariff lines with specific duties, only the ad valorem equivalents (AVEs) are included in the calculation;
           Excludes tariff lines where AVEs in the preferential level are not calculated due to the absence of bilateral import  data in  
           2008 or in 2007.Source :  WTO Secretariat estimates based on data provided by Switzerland and WTO-IDB.
 
 
                                                      
40 HS Sections V and XI contain specific duties and in the absence of AVEs, the comparison is not 
possible.  WT/REG273/1 
 Page 27 
 
 
  57. Chart III.6 shows a comparison of average du tiable rates in those HS Chapters where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines s ubject to preferential duties only.  For those 
HS Chapters where tariff peaks remain after impl ementation of the Agreement is completed, the 
preferential duties are identical to the MFN duties fo r all the HS Chapters except for HS Chapters 17, 
18, 19, 20, 21, and 24, where the preferential duties ar e lower, in most cases slightly lower, than the 
MFN duties.   
0102030405060708090100110120130
01
02040506
07
08101112151617
18
19
20
212223240102030405060708090100110120130
35
38Chart III.6
Switzerland: Average of dutiable rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
Note:  For tariff lines with specific duties, only the ad valorem equivalents (AVEs) are included in the calculation;
           Excludes tariff lines where AVEs in the preferential level are not calculated due to the absence of bilateral import  data in 
           2008 or in 2007.
Source :  WTO Secretariat estimates based on data provided by Switzerland and WTO-IDB. 
 
4. Tariff Rate Quotas 
58. In addition to tariff elimination and reducti on commitments, both Japan and Switzerland grant 
preferential access for some products originating in th e other Party in the form of TRQs.  Japan grants 
preferential TRQ access to some Swiss products e ither immediately upon entry into force of the 
Agreement (for bovine meat, some sugar confectionery  and chocolate, and some food preparations), 
or progressively over yearly instalments (for na tural cheese). Annex II, Part A below summarizes 
Japan's TRQ concessions granted to Switzerland. 
59. Switzerland grants preferential TRQ access to some Japanese products mostly through 
preferential in-quota rates, within the existing MF N TRQs in Switzerland's WTO Schedule of Tariff 
concessions (List LIX).  Although there is no spec ific TRQ category in Switzerland's Schedule of 
tariff concessions in the Agreement, TRQs co mmitments are provided under the "description of 
products" in the Schedule.  TRQ commitments are implemented, as for the rest of Switzerland's 
concessions to Japan, immediately up on entry into force of the Agreem ent.  In addition, for three 
products (table grapes, peaches, and nectarines) im ported as "gift fruits", Switzerland opened specific WT/REG273/1 
Page 28  
 
  bilateral TRQs granting preferential access within  the limits set for these TRQs.  Annex II below 
summarizes Switzerland's TRQ concessions granted to Japan. 
60. Decision No. 2, adopted on 1 September 2009 by the Joint Committee, defines, as part of the 
Annex to the Operational Procedures for Trade in Goods, procedures for the allocation, verification, 
and exchange of informati on and consultations on TRQs.
41   
5. Import restrictions 
61. The Parties commit not to maintain or introduce any import prohibition or restriction 
inconsistent with GATT Article XI obligations and with any other relevant provision under the 
WTO Agreement (Article 18).  
B. RULES OF ORIGIN  
62. The disciplines applicable to rul es of origin, referred to in Chapter 2 (Article 23), are set out 
in Annex II of the Agreement.  Section 2 of Anne x II, as well as the specific rules contained in its 
Appendix 1, which lists product specific rules, deal w ith the rules of origin themselves.  The general 
requirement for a good to be considered an origina ting good of a Party (Article II of Annex II of the 
Agreement) is that it is a product: 
(a) wholly obtained in the customs territory of the Party42; 
(b) obtained in the customs territory of th e Party using non-originating materials, 
provided that such materials have undergone sufficient working or processing in the customs territory of the Party
43 (the essential conditions being that the value of the 
non-originating materials used does not exceed 60% of the ex-works price of the product; or that non-originating materials used have undergone in the customs 
territory of the Party, a change in tariff classification at the HS four digit level); or 
(c) obtained in the customs territory of the Pa rty exclusively from materials that qualify 
as originating products of the Party pursu ant to paragraphs a) or b) above  
63. The product-specific rules of origin are b ased on tariff chapter (two digit), heading 
(four-digit), or subheading (six-digit) changes.  In  a number of cases, changes from certain headings 
or subheading to other headings or subhead ings do not confer origin.  Complementary 
origin-conferring manufacturing operations and process- related rules are also applicable to selected 
products in HS Chapters 61 to 63 (apparel and te xtiles) and 71 (metals).  An additional minimum 
regional value content (between 40% and 60%) is al so mandatory for a some products.  The tariff 
change rule does not apply to HS Headings/ Su bheading 3006.92 (pharmaceu tical waste), 63.09 and 
63.10 (used clothing and other used textile articles) for which the product is originating only if wholly 
obtained in a Party.
  
64. The principles and norms of the WTO Agreem ent on Customs Valuation are used to 
determine the value of non-originating materials.   Additional calculation rules are contained in 
Article IV of Annex II of the Agreement. 
                                                      
41 These procedures complement Notes 2(Qa), 2(Qb), and 2(Qf) in Section 1 of Appendix 1 (Japan's 
Schedule of tariff concessions) of Annex I of the Agreement, as well as Note 5 in Section 1 of Appendix 2 (Switzerland's Schedule of tariff concessions) of Annex I of the Agreement. 
42 Article III of Annex II of the Agreement lists the products which shall be considered as wholly 
obtained. 
43 Article IV of Annex II of the Agreement defines what allows a product obtained using 
non-originating materials to be considered  as an originating product of a Party.  WT/REG273/1 
 Page 29 
 
 
  65. In determining originating products of a Pa rty, cumulation is permitted when products 
originating from one Party are used as inputs for th e production of a product in the customs territory 
of the other Party (Article V of Annex II). 
66. According to Article VI of Annex II of th e Agreement, a product using non-originating 
materials that have not undergone the required change in tariff classification shall be considered as an 
originating product of a Party if the value of all n on-originating materials used does not exceed 7% of 
the ex-works price of the product for products classifi ed under HS Chapters 1 to 24.  The "tolerance 
de minimis " value is set at 10% of the ex-works price of  a product for HS Chapters 25 to 49, or 64 to 
97 and 7% of the total weight of the product for pro ducts in Chapters 50-63.  This "tolerance" rule 
applies except as otherwise provided for in Appendix 1 to Annex II.  
67. Article VII of Annex II of the Agreement cont ains a list of minimal operation or processes, 
considered as "non-qualifying operations", th at do not confer origin on a product.  
68. Additional disciplines on "unit of qualificati on", "unassembled or disassembled product", 
"accessories, spare parts and tools", "neutral elemen ts", and "accounting segregation" are in Section 2 
of Annex II, and on "territorial requirements"44 in Section 3 of Annex II of the Agreement.  
69. Section 4 of Annex II contains administrative rul es applicable to the certification of the origin 
of products.  Specific disciplines are defined in re lation to the proof of origin (Article XV), the 
certificate of origin (Article XVI), the certificate of  origin issued retrospectively (Article XVII), the 
issuance of a duplicate certificate of origin (Article XVIII), the declaration of origin (Article XIX), the validity of proof of origin (Article XX), the clai m of preferential tariff treatment (Article XXI), the 
supporting documents (Article XXII), and the preserva tion of documents and records (Article XXIII).  
A single Certificate of Origin form
45, and a standard declaration of origin46 have been developed. 
70. Section 5 of Annex II of the Agreement contai ns arrangements for administrative cooperation 
between the Parties in rules of or igin-related matters.  It covers, inter alia , notification 
(Article XXIV), verification of proof of origin  (Article XXV), confiden tiality (Article XXVI), 
penalties and measures against fraudulent acts (Article XXVII). 
71. Decision No. 3, adopted on 1 September 2009 by the Joint Committee established under the 
Agreement, contains "Operational Procedures for Rul es of Origin", which is intended to facilitate the 
implementation of the rules of origins contained in Annex II of the Agreement.  Chapter 1 of Section 
1 of the Operational Procedures contains disciplines on the proof of origin and Chapter 2 of Section 1 
contains the administration and enforcement of Annex II . Section 2 contains explanatory notes 
regarding, inter alia , calculating the value of non-originati ng materials, accumulation, tolerance and 
the splitting-up of consignments.  
72. A Sub-Committee on Rules of Origin, Customs Procedures and Trade Facilitation, placed 
under the supervision of the Joint Committee is esta blished to review and m onitor the implementation 
of preferential rules of origin (Article XXX). 
                                                      
44 Section 3 covers "principle of territoriality" and "consignment criteria". 
45 A specimen is contained in Appendix 2 of Annex II of the Agreement. 
46 Contained in Appendix 3 of Annex II of the Agreement. WT/REG273/1 
Page 30  
 
  C. C
USTOMS VALUATION  
73. Part I of the WTO agreement on the implementation of Art. VII of the GATT 1994 (Customs 
Valuation Agreement) is applicable for the purpose of determining the customs value of goods traded 
between the Parties and is made part of the Agreement mutatis mutandis  (Article 17).  
D. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. Export duties and restrictions 
74. The Parties committed not to in troduce or maintain any cust oms duties on exports to each 
other (Article 16). The Parties also committed not to maintain or introduce any export prohibition or 
restriction inconsistent with GATT Article XI oblig ations and with any othe r relevant provision under 
the WTO Agreement (Article 18).  
E. REGULATORY PROVISION S ON TRADE IN GOODS  
1. Standards 
(a) Sanitary and phytosanitary measures 
75. Chapter 4 of the Agreement covers Sanitary a nd Phytosanitary Measures (SPS).  It establishes 
that, with regard to the rights and obligations of  the Parties in respect of SPS measures, the WTO SPS 
Agreement shall apply (Article 34).  Specific is sues that may arise from the application of SPS 
measures shall be addressed through science-based bila teral consultations to find mutually acceptable 
solutions (Article 35).  The Parties also renounced  the use of the Agreement's dispute settlement 
mechanism for SPS-related matters (Article 36), th ereby relying on applicable instrument deriving 
from the SPS Agreement. 
(b) Technical barriers to trade 
76. Chapter 5 of the Agreement covers techni cal regulations, standards and conformity 
assessment procedures47 (hereinafter TBT).   
77. The WTO TBT Agreement applies with regards to the rights and obligations of the Parties in 
respect of TBT, unless otherwise provided for in Chapter 5.  The Agreement contains a best 
endeavour clause on the strengthening of cooperation in TBT-related fields.  Cooperation may take 
different forms such as exchange of information, jo int contributions in international and regional fora; 
and reinforcement of the role of international standards as a basis for technical regulations and 
conformity assessment procedures (Article 38).  
78. Japan has designated the Central and South Eastern Europe Division – European Bureau, 
Ministry of Foreign Affairs -, and Switzerland has designated the Free Trade Agreements Division of the State Secretariat for Economic Affairs (SEC O), as enquiry points to answer all reasonable 
enquiries from the other party regard ing TBT matters (Article 39).  
79. With regard to conformity assessment procedur es, each Party shall ensure that, in cases where 
a positive assurance of conformity with technical regulations is required fo r a particular product, 
suppliers of the product imported from the other Party shall be granted non-discriminatory access.  
Each Party shall also ensure, when ever possible, that results of the conformity assessment procedures 
                                                     
 
47 Technical regulations, standards and conformity a ssessment procedures have, in the Agreement, the 
same definition as in the WTO TBT Agreement.  WT/REG273/1 
 Page 31 
 
 
  in the other Party are accepted, even when the pr ocedures differ from its own, provided assurance can 
be given that conformity with its national technical  regulations or standards can be considered as 
equivalent.  In this regard, accreditation according to  international standards and guides shall establish 
a rebuttable presumption of technical competence. The Parties must upon request from the other Party explain why they do not accept the results of the conformity assessment procedure (Article 40).  
80. The Agreement establishes a Sub-Committee on Technical Regulations, Standards and 
Conformity Assessment Procedures (TBT Sub-Comm ittee), to serve as consultation, coordination, 
and facilitation body and to review the im plementation and operation of Chapter 5. 
81. Like for SPS matters, the Parties also renoun ced the use of the Agreement's Dispute 
Settlement mechanism for TBT-related matters (Article  42), thereby relying on applicable instruments 
deriving from the TBT Agreement. 
2. Trade Remedies 
82. The Agreement does not contain any specific disciplines on antidumping and countervailing 
measures.  It however does so for safeguard measures. 
(a) Safeguard mechanisms 
(i) Global safeguards 
83. The Parties retain the right to apply a safegua rd measure in accordance with Article XIX of 
GATT 1994 and the WTO Agreement on Safeguar ds, or Article 5 of the WTO Agreement on 
Agriculture (Article 20.12).  In case global safeguard s would be taken, imports of originating goods 
from the other Party would thus in principle be in cluded in the application of a safeguard measure 
pursuant to Article XIX of the GATT 1994 a nd the WTO Agreement of Safeguards.  
(ii) Bilateral safeguard actions 
84. For trade between the Parties Article 20 provid es for the application of bilateral safeguard 
measures on originating goods.  Such measures may be  applied at any time under the Agreement if an 
originating good, as a result of the elimination or reduction of a customs duty on imports in accordance with Article 15, is imported in such in creased quantities, either in absolute terms or 
relative to domestic production, and under such conditions that th e imports constitute a substantial 
cause of serious injury, or threat thereof, to the domestic industry of the importing Party.
48  In such 
cases, the importing Party may (a) suspend the furt her reduction of customs duty on the originating 
good;  or (b) increase the duty rate to a level not to exceed the lesser of the applied MFN rate in effect 
when the safeguard action is taken and the MFN ra te in effect on the day immediately preceding the 
date of entry into force (Article 20.2).   
85. The measure may only be applied following an  investigation by the Party's competent 
authorities in accordance with the same procedures as in Articles 3, and 4.2 of the WTO Agreement 
on Safeguards and to the minimum extent necessary to  prevent or remedy the serious injury to a 
domestic industry and to facilitate ad justment.  Prior to the application of such a measure, a Party 
must inform the other Party in writing of the initiation  of an investigation and the decision to apply or 
                                                      
48 Pursuant to Article 11, "serious injury" means a significant overall impairment in the position of a 
domestic industry. "Threat of serious injury" means serious injury that, on the basis of facts and not merely on 
allegation, conjecture or remote possibility, is clearly imminent. "Domestic industry" means the producers a s a 
whole of the like or directly competitive products operati ng in the customs territory of a Party, or those whose 
collective output of the like or directly competitive prod ucts constitutes a major proportion of the total domestic 
production of those products. WT/REG273/1 
Page 32  
 
  extend a bilateral safeguard.  That Party must also provide adequate opportunity for prior 
consultations with the other Party with a view to reviewing the proposed measure and reaching an 
agreement on the level of compensation.  The maximum duration of a measure is two years.  This can in exceptional circumstances be extended to a to tal maximum period of three years.  The measure 
must not be reapplied to goods which have already been subject to a bilateral safeguard, for a period 
of time equal to the duration of the previous measure or one year, whichever is longer.  It also cannot 
be applied to imports within the limits of tariff rate quotas. 
86. The Party proposing to apply a bilateral safeguard  must provide to the other Party mutually 
agreed adequate means of trade compensation at a level substantially equiva lent to the safeguard.  
Compensation takes the form of duty concessions on im ports whose value is s ubstantially equivalent 
to that of the additional customs duties on imports e xpected to result from the bilateral safeguard.  If 
the Parties are unable to agree on compensation within 30 days following commencement of the 
consultations the Party against who the measure is ta ken will be free to suspend the application of the 
duty concessions under the Agreement to a level substantially equivale nt to the bilateral safeguard.  
The right of suspension is limited to what is necess ary to achieve the substantially equivalent effects 
of the safeguard. 
(iii) Provisional bilateral safeguard measures 
87. Provisional safeguard measures (Article 20.9) may be taken in critical circumstances where 
delay would cause damage which would be difficult  to repair.  The imposition of such a measure 
requires a written notice and a preliminary determina tion that there is clear evidence that increased 
imports of an originating good have caused or are threatening to cause serious injury to a domestic 
industry.  The duration of a provisional measure cannot exceed 200 days
49;  where during this time the 
investigation fails to determine that the increased imports from the other Part y constitute a substantial 
cause of serious injury, or threat thereof, the Pa rty applying the measure must refund any additional 
duties collected as a result of the measure. 
88. Table III.7 presents the main features of  the bilateral safeguard mechanism. 
Table III.7 
Synopsis of the bilateral safeguard mechanis m, including provisional safeguard measures  
Description of the bilateral safeguard measure 
Trigger • Rise in imports in absolute terms or relative to domestic production. 
Criteria  • Substantial cause of serious injury or threat thereof to a domestic industry. 
Measures • Suspension of further duty reduction; 
• Increase in duty rate to MFN rate or MFN rate preced ing entry into force, whichever is lower - (the 
measure cannot be applied to the quota quantities granted under preferential TRQs). 
Transitional Measure • Possible in critical circumstances (delay would cause damage difficult to repair); 
• Preliminary determination based on clear evidence; 
• Refund in case the final determination does not dete rmine that increased imports have caused serious 
injury or threat thereof to a domestic industry. 
Timing • The maximum duration of a measure is two years (three in exceptional circumstances); 
• The maximum duration of a provisional measure is 200 days. 
Conditions or limitations • Written notice of: a) institution of a proceeding;  and b) decision to apply or extend a measure; 
 • Provision of adequate opportunity for prior consultati ons (except in the case of provisional measures); 
 • A measure may only be applied after an investiga tion has been carried out (except in the case of 
provisional measures) – an investigation must be  completed within one year of its initiation; 
 • No re-imposition of safeguard measures on the same  good for a period of time equal to the duration of 
the previous measure or one year, whichever is longer; 
• Requirement of progressive liberaliza tion for measures exceeding one year; 
 • Requirement to provide compensation with suspensi on of the application of concessions permitted 
corresponding to up to an amount substantially equiva lent to the safeguard measure where the Parties 
fail to agree on the compensation. 
Source: WTO Secretariat based on the Agreement. 
                                                      
49 The duration of the provisional bilateral safeguard measure is counted as a part of the total duration 
of the safeguard measure.  WT/REG273/1 
 Page 33 
 
 
  (iv) Restrictions to safeguard the balance of payments 
89. Article 21 authorizes the Parties to take measur es to safeguard the balance of payments in 
accordance with the conditions established un der Article XII of the GATT 1994, and the 
Understanding on the Balance-of -Payments Provisi ons of GATT 1994.  Moreover, nothing in the 
Agreement precludes the use by a Pa rty of exchange controls or ex change restrictions in accordance 
with the articles of IMF Agreements. 
(b) Anti-dumping and countervailing measures 
90. The Agreement does not contain any speci fic disciplines on antidumping and/or 
countervailing measures.50 
3. Subsidies and State-aid 
(a) Domestic Support 
91. The Agreement does not contain any specific disciplines on domestic support. 
(b) Export Subsidies 
92. Subject to the reservations contained in Annex I of the Agreement, export subsidies on any 
agricultural products51 are prohibited by the Agreement (Article 19).  The reservation contained in 
Annex I of the Agreement corresponds to some products of HS Chapter 1952 which are excluded from 
any commitment of reduction or elimination of customs duties on imports and for which export 
subsidies53 may be maintained.  This reservation is only applicable to export subsidies which may be 
granted by Switzerland for the concerned products. 
F. CUSTOMS -RELATED PROCEDURES  
93. Although customs-related procedures are cont ained in other parts of the Agreement54, 
Chapter 3 of the Agreement covers cust oms procedures and trade facilitation.  
94. In the provisions containing specific obligations , the Parties commit to transparency and that 
information relating to customs matters be readily available to any interested person.  In case of 
changes in customs laws, information should be give n in advance to enable interested persons to 
adjust (Article 28). 
95. The Parties commit to ensure predictable, c onsistent, transparent, and prompt customs 
procedures. Use of information and communication technology, simplification, and to the extent 
possible, harmonisation of procedures shall be used  to facilitate customs clearance (Article 29).  
Cooperation and exchange of information are for eseen (Article 31).  The Sub-Committee on Rules of 
origin, customs procedures and trade facilitation ( established by Article XXX of Annex II of the 
Agreement) is established to address, inter alia , customs-related matters covered by the Agreement. 
                                                      
50 The Joint Statement issued on the occasion of the signing of th e Agreement stresses states that 
antidumping measures should not be used for protectionist purposes. 
51 "Agricultural products" refer to the product s listed in Annex 1 to the WTO Agreement on 
agriculture. 
52 HS Chapter 19 covers Preparations of cereals, flour, starch or milk, and pastrycooks' products. 
53 As defined in Article 9 of the WTO Agreement on agriculture. 
54 For instance in Annex II on Rules of origin. WT/REG273/1 
Page 34  
 
  96. Temporary admission
55 and products in transit are discip lined by Article 30, which refers 
specifically to the "A.T.A.  Convention"56 as a tool to facilitate clearance.  The Parties also confirm 
the principles contained in Article V:3 of the GATT 1994 (Article 30).   
97. The Implementing Agreement (IA), signed by the Parties on 19 February 2009, provides for 
the details and procedures for the implementati on of cooperation and exchange of information 
(Articles 3 and 8 of the IA), including confidential information.  It provides for mutual assistance 
between the customs authorities of the Parties to ensu re the proper application of customs laws, and to 
prevent, investigate and repress any violation or attempted violation of  customs law (Article 3 of the 
IA).  Article 5 of the IA binds the Parties to con tinue to use risk management, while Articles 6 and 7 
of the IA foresee cooperation in enforcement agai nst illicit trafficking, including the import and 
export of products suspected of infringing intellectual property rights.  
IV. PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 
A. SCOPE AND DEFINITIONS  
98. Chapter 6 of the Agreement contains the main  provisions governing trade in services between 
the Parties.  In addition, for certain issues, referenc es are also made to other Chapters and/or Annexes 
of the Agreement.  In particular, the disci plines on most-favoured-nation (MFN) treatment 
(Article 45), market access (Article  46), and national treatment (Article  47), are applicable subject to 
the Parties lists of reservations in Annex III of the Agreement (Appendix 1 for Japan and Appendix 2 
for Switzerland).  The disciplines on domestic regul ations in Article 48, are supplemented by 
provisions in Annex IV of the Agreement.  The disciplines on recognition in Article 49, are 
supplemented by provisions in Annex V of the Agr eement.  The disciplines on movement of natural 
persons, in Article 50, are supplemented by the Par ties' specific commitments, and the provisions of 
Chapter 7 of the Agreement.  Annexes III, IV, V, VI  and VII of the Agreement form an integral part 
of Chapter 6 of the Agreement. 
99. In addition, Annex VII of the Agreement cont ains complementary disciplines on measures 
affecting trade in telecommunications services, while Annex VI of the Agreement contains 
complementary disciplines on measures affecting trade in financial services. 
100. The scope of Chapter 6 (Article 43) covers me asures by a Party affecting trade in services57 
taken by central, regional or local governments a nd authorities as well as by non-governmental bodies 
in the exercise of powers delegated by central, region al or local governments or authorities.  It applies 
to all services sectors.58  In respect of air transport servi ces, Chapter 6 does not apply to measures 
affecting traffic rights.  Moreover, MFN, market access, and national treatme nt provisions in Chapter 
6 do not apply to government procurement. 
101. Chapter 9 of the Agreement c overs Investment.  In the ev ent of inconsistency between 
investment-specific provisions in Chapter 9 and disci plines in Chapter 6, Chapter 6 prevails to the 
extent of the inconsistency.  The disciplines of Ch apter 9 related to national treatment (Article 87), 
MFN treatment (Article 88) and the prohibition of  performance requirements (Article 96) are not 
applicable to the non-conforming measures listed by  the Parties in Annex IX of the Agreement 
                                                      
55 "Temporary admission" means customs procedures under which certain products may be brought 
into a customs territory conditionally, relieved totally or partially from the payment of customs duties. 
56 Customs Convention on the A.T.A Carnet for the Temporary Admission of goods. 
57 "Trade in services" means the supply of a service acc ording to the four modes of supply as defined in 
the GATS. 
58 "Services" includes any service in any sector except services supplied in the exercise of 
governmental authority.  WT/REG273/1 
 Page 35 
 
 
  (Appendix 1 for Japan's non-conforming measures, and Appendix 2 for Switzerland's non-conforming 
measures).  Annex IX forms an integral part of Chapter 9. 
B. GENERAL PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  
1. Measures affecting trade in services59 
(a) National and MFN treatment 
102. Japan and Switzerland grant each other national and MFN treatment for trade in services.  
This does not apply to the measures listed as non-conforming  in Annex III of the Agreement.60  With 
respect to MFN treatment, the Parties shall e ndeavour to accord each other treatment no less 
favourable than that provided under other preferenti al agreement they conclude or amend with a 
non-Party, which they would notify under GATS Article V or GATS Article V bis. 
(b) Market access 
103. The Parties grant each other access to their r espective markets for their services and service 
suppliers, unless otherwise specified in their Lists of Reservations in Annex III of the Agreement.  
They also commit to allow cross-border movement of  capital when it is an essential part of a service 
supplied through modes 1 and 3 – unless otherwi se specified in the Lists of Reservations. 
2. Investment 
104. Chapter 9 of the Agreement covers investment and applies to measures adopted or maintained 
by a Party relating to investors of the other Party and to their investments in  the Area of the former 
Party.  Under the Agreement investment activities are the establishment, acquisition, expansion, 
management, conduct, operation, maintenance, use, enjoyment, liquidation, sale or other disposition 
of investment.  Chapter 9 provisions also apply to measures adopted or maintained by a party relating 
to investments made by investors of the other Party pr ior to the entry into force of the Agreement.  In 
the event of any inconsistency between Chapter 9 and Chapter 6 (on trade in services), the rules in 
Chapter 6 prevail to the extent of the inconsistency (Article  84, paragraph 3). 
105. Each Party shall accord to investments of inv estors of the other Party fair and equitable 
treatment and full protection and security.  Neither Party shall impair by unreasonable or arbitrary 
measures the management, conduct, operation, mainte nance, use, enjoyment, liquidation, sale or other 
disposition of such investments (Article 86).  The other key obligations of Chapter 9 cover national 
treatment (Article 87), MFN treatment (Article 88), and the prohibition of performance requirements 
(Article 96). 
(a) National and MFN treatment 
106. National and MFN treatment is granted by a Party to investors of the other Party with respect 
to investment activities.  The Parties did not commit to apply MFN treatment to investors of the other 
Party and their investment if a Party accords more favourable treatment to investors of a non-Party and their investment by concluding or amending a free trade agreement, customs union or similar 
                                                     
 
59 "Measures by a Party affecting trade in services" means any measure by a Party, whether in the form 
of a law, regulation, rule, procedure, decision, administrative action or any other form, including measures in respect of: (i) the purchase, payment or use of a servi ce, (ii) the access to and use of, in connec tion with the 
supply of a service, services which are required by that Party to be offered to the public generally, and (iii) the 
presence, including commercial presence,  of persons of the other party for the supply of a service in the Area of 
the Party. 
60 See below the section on Non-conforming measures listed by Japan and by Switzerland. WT/REG273/1 
Page 36  
 
  agreement that provides for substantial liberalisation of investment.  They will however endeavour to 
accord to investors of the other Party and their investments treatment no less favourable than that 
accorded under the concluded agreement(s), subject to a request by one Party to start negotiations 
with a view to incorporating into the Agreement such  treatment (Article 88, pa ragraph 3).  In addition, 
the MFN treatment (to the other Party) is not appl icable in the context of treatment accorded to 
investors of a non-Party and their investments th rough provisions concerning the settlement of 
investment disputes between a Party and the non-Pa rty that are provided for in other international 
agreements (Article  88, paragraph 2). 
(b) Performance requirements 
107. For the purpose of Chapter 9, the Annex to the WTO Agreement on Trade-Related 
Investment Measures (TRIMs Agreement) is incor porated into and made part of the Agreement, 
mutatis mutandis  (Article 96).  
(c) Reservations (Non-conforming measures) 
108. The obligations on national treatment, MFN treatment and prohibition of performance 
requirements are however not applicable in the case of non-conforming measures, as defined in 
Article 90, and as recorded by the Parties in their Lists of Reservations in Annex IX of the 
Agreement.
61   
(d) Other disciplines on investment 
109. Chapter 9 contains additional rules and disci plines on general treatment and protection 
(Article 86), transfers (Article 89), expropriation and compensation (Article 91), treatment in case of 
strife (Article 92), subrogation (Article 93), sp ecial formalities (Article 99), taxation measures 
(Article 100), and review (Article 102).  
110. The Parties recognise that it is inappropriate to encourage investment by relaxing domestic 
health, safety or environmental measures or lowering labour standards.  To this effect they should not 
waive or otherwise derogate from such meas ures and standards as an encouragement for 
establishment, acquisition or expans ion of investments (Article 101). 
111. Consultations, with a view to amicably settle di sputes, and eventual recourse to international 
conciliation or arbitration to settle investment dis putes are foreseen in Article 94 which provides for 
disciplines on the settlement of investment disputes between an investor and a Party. 
3. Movement of natural persons 
112.  Chapter 7 reflects the preferential trading re lationship between Japa n and Switzerland, the 
desire of the Parties to facilitate the movement of na tural persons on a mutually beneficial basis and to 
establish transparent criteria and procedures for the movement of natural persons, and the need to 
ensure border security and to protect the domestic labour force and permanent employment in either 
Party (Article 63).  Each Party committed to appl y its measures relating to movement of natural 
persons62 expeditiously so as to avoid unduly impairing or delaying trade in goods or services or the 
                                                      
61 The content of the List of Reservations related to  investment is discussed below, together with the 
List of Reservations related to trade in Services, wh ich are addressed in Part IV Section D of the factual 
presentation. 
62 "Natural persons of a Party" means, in respect of Japan, a national of Japan, or, in respect of 
Switzerland, a national of Sw itzerland or a permanent resident who is a service supplier in the Area of 
Switzerland.  WT/REG273/1 
 Page 37 
 
 
  conduct of investment activities under the Agreement.  The Parties also committed to limit any fees 
for processing applications for entry and temporary st ay to the approximate cost of services rendered.  
113. While the Parties will grant entry and temporary stay to natural persons of the other Party in 
accordance with the disciplines of Ch apter 7 and their relevant laws  and regulations, the entry and 
temporary stay is subject to the specific commitments by each Party in Annex VIII of the Agreement.  
Natural persons covered by Annex VIII63 may therefore supply the service in accordance with the 
terms of Chapter 6.64  To a large extent, these commitments are built on horizontal limitations in 
relation with mode 4, in the Parties'  GATS Schedules of specific commitments.  
114. Appendix 1 of Annex VIII of the Agreement, contains the specific commitments undertaken 
by Japan on the movement of natural persons  and is summarized in Table IV.1 below. 
 
Table IV.1 
Summary of Japan's Specific Commitments on the Movement of Natural Persons 
Category Period of stay a 
Short-Term Business Visitors 90 days 
Intra-Corporate Transfer ees one or three years 
Investors one or three years 
Natural Persons of Switzerland who engage in 
Professional Services one or three years 
Natural Persons of Switzerla nd who engage in Business 
Activities, which require tec hnology or knowledge at an 
advanced level on the basis of a Personal Contract with 
a Public or Private Organisation in Japan one or three years 
 
a Period of stay may be extended.  
Note: Japan may require a natural person of  Switzerland seeking entry and temporary stay under the terms and conditions set out  in 
Appendix 1 to obtain an appropriate visa  or its equivalent prior to entry. 
 
Source : Annex VIII, Appendix 1 of the Agreement. 
 
115. Appendix 2 of Annex VIII of the Agreemen t, containing the specific commitments 
undertaken by Switzerland on the movement of na tural persons, distinguishes between commitments 
for services sectors and for non-services sectors and cont ains specific rules and disciplines.  Natural 
persons staying in or entering Switzerland with an  open-ended or extendabl e residence permit based 
on an employment contract which does not limit the period of employment in Switzerland are not considered as natural persons residing in or ente ring Switzerland for the purpose of temporary stay or 
temporary employment. 
116. In relation with services sectors, the commitments  shall be in accordance with and subject to 
the provisions of Chapter 6 (on trade in services), notwithstanding any provision of Chapter 7 (on 
movement of natural persons).  In particular, an y limitations and conditions in Appendix 2 of Annex 
III (List of Reservations by Switzerland on Chapter 6) shall apply.  Moreover, commitments in 
services on the movement of natural persons shall apply only to those sectors in which Switzerland 
has specific GATS commitments.  Switzerland reserved the right to maintain, modify or adopt any 
measures relating to the entry and temporary stay of natural persons for business purposes not covered 
by its specific commitments under the Agreement.   For natural persons covered by its specific 
commitments, authorisation is required and a number of limitations and conditi ons are applicable to 
the entry and temporary stay of these persons.  Th e Agreement contains an exemption to the MFN 
provision (Article 45) for Switzerland in relati on with measures based on bilateral agreements 
                                                     
 
63 Chapter 6 does not apply to measures affectin g natural persons seeking access to the employment 
market of a Party, nor does it apply to measures regard ing nationality or citizenship, residence or employment 
on a permanent basis. 
64 A detailed definition of each Category, including conditions and specifications, is contained in 
Annex VIII of the Agreement. WT/REG273/1 
Page 38  
 
  between the Principality of Liechtenstein, or the EU  and/or its Member States, and Switzerland which 
provides for the movement of all categor ies of natural persons supplying services. 
117. In relation to the non-services sectors, and notw ithstanding any provision of Chapter 7 (on the 
movement of natural persons), commitments shall be  in accordance with and subject to the relevant 
legislation of Switzerland, in particular the Federal Law on Foreigners and any of  its subordinate acts.  
Moreover, the numerical ceiling provided for under Swi ss Law shall not be applied to natural persons 
of Japan in the categories defined under Switzerla nd's specific commitments for the movement of 
natural persons in relation with the non-services sectors.  Table IV.2 summarizes Switzerland's 
specific commitments on the movement of natural persons.  
Table IV.2 
Summary of Switzerland's Specific Commitments on the Movement of Natural Persons 
Category  Period of stay 
Services Sectors a 
 
Intra-corporate transferees 
-  Executive and senior managers 
-  Specialists Limited to 3 years, extendable to a maximum of 5 years 
Other essential personnel 
-  Short-term business visitors  -  Short-term services salespersons 
-  Contractual service suppliers engaged in certain 
sectors
 c 
-  Installers and maintainers Limited to 90 days within 1 year. 
If authorisation granted for a renewal for the following y ear, the applicant 
must stay abroad at least 2 months between the two consecutive periods of 
stay in Switzerland 
Non-Services Sectors b 
 
Intra-corporate transferees 
-  Executive and senior managers 
-  Specialists Limited to 3 years, extendable to a maximum of 5 years 
 
Other essential personnel 
-  Short-term business visitors responsible for 
establishing a commercial presence 
-  Salespersons Limited to 90 days within 1 year. 
If authorisation granted for a renewal for the following y ear, the applicant 
must stay abroad at least 2 months between the two consecutive periods of 
stay in Switzerland 
 
a For Services Sectors Commitments are subject to the provisions contained in Article III and IV of Appendix 2 of Annex VIII. 
b For Non-Services Sectors Commitments are subject to the pr ovisions contained in Article VI  and VII of Appendix 2 of 
Annex VIII. 
 
Source: Annex VIII, Appendix 2 of the Agreement.  
 
118. Chapter 7 on the movement of natural persons also contains disciplines on the provision of 
information by the Parties (Article 66), as well as to ensure expeditious application procedures. 
C. DENIAL OF BENEFITS . 
119. Chapter 6, 7, and 9 do not contain any specific provisions on denial of benefits. 
D. LIBERALIZATION COMMITMENTS IN TR ADE IN SERVICES AND INVESTMENT  
120. For trade in services, as for investment, the Pa rties have adopted a negative-list approach to 
the scheduling of their liberalization commitments, th rough Lists of Reservations.  This implies that 
all sectors or sub-sectors are assumed to be open to competition from services providers or investors 
of the other Party unless otherwise specified in  the relevant Annexes of the Agreement.   
121. In the Agreement, trade in services and inv estment are governed by separated provisions 
contained in Chapter 6, for trade in services, and in  Chapter 9, for investment. Though there are some 
overlaps in terms of coverage, the scope of the two Ch apters is distinct. It should be recalled that the 
disciplines on investment may cover, for exam ple, investment related to trade in goods.  WT/REG273/1 
 Page 39 
 
 
  122. In the event of any inconsistency between Chap ter 6 and Chapter 9 with regard to measures 
by a Party affecting trade in services, the rules on  trade in services prevail to the extent of the 
inconsistency (Article 84, paragraph 3).   
1. Lists of Reservations / Non-conforming measures for trade in services 
123. In relation with trade in services (Chapter 6) , the adoption by the Parties of a negative list 
approach means that the obligations of national and MFN treatment, and market access in Articles 45, 
46 and 47, apply fully to measur es covering all sectors and sub-sectors, unless reservations are listed 
(in Annex III of the Agreement).  
(a) Japan's Lists of Reservations  
124. Section 1 of Appendix 1 of Annex III of the Agreement contains Japan's reservations setting 
out existing measures that do not conform to some or  all of the obligations taken under the Agreement 
relating to national and MFN treatment, and market access.  It represents a standstill commitment, as 
Japan will be able to maintain, review, or amend the existing measures listed that do not comply with 
these obligations, but will not be able to make these measures more restrictive. Section 2 of Appendix 
1 of Annex III of the Agreement contains Japan's reservations setting out specific sectors, sub-sectors 
or activities for which it may maintain existing, or adopt new or more restrictive measures that do not 
conform with some or all of the obligations take n under the Agreement rela ting to national and MFN 
treatment, and market access.  It represents a br oader carve-out than reservations contained in 
Section 1.  
125. Japan has 54 reservations in Section 1.  One of  these applies to all sectors in relation with 
non-conforming measures by local governments othe r than prefectures, which breaches Chapter 6 
provisions on national treatment as well as on mark et access.  The other 53 reservations cover 
measures, to which Chapter 6 provi sions on national treatme nt and/or on market access do not apply.  
They cover parts of most services65, except environmental services, and tourism and travel-related 
services.  The measures include: prior notification requirement, similar to that for investment; establishment requirement (in some construction services for example); residency requirement 
(in some wholesale and retail trade activities for ex ample); possible limitation on the number of 
licences conferred to service suppliers (in some distribution services for example); qualification 
requirement (in collection agency services for ex ample); designation by the competent Japanese 
authorities (in some measuring services for example); or nationality requirement (including for Swiss 
services providers) (in some telecommunication services or transport activities for example).  In three 
cases concerning the transport sector the measures are carved out from Chapter 6 provisions on MFN 
treatment (granted to Switzerland).  In two cases reservations are made for water transport (reciprocity 
requirement), while in one case reservations are ma de for freight forwarding business (excluding that 
using air transportation).   
126. Japan has 20 reservations in Section 2.  Four  of these apply to all sectors in relation with 
measures to which Chapter 6 provisions on MFN
66, national treatment, and or market access do not 
apply.  The 16 other reservations cover such measur es which are or may be taken in the future with 
respect to parts of the: aerospace industry; arms  and explosives industry;  broadcasting industry; 
primary and secondary educations services, ener gy, financial services (banking and insurance); 
fisheries; land transaction67;  manufacturing; public law enforcement and correctional services and 
social services; and security guard services.  In fo ur sectors (Energy, Fisheries, Land Transportation 
Public Law Enforcement and Correctional Services and Social Services) cases the measures are also 
                                                      
65 As defined in the Services Sectoral Classification List (MTN.GNS/W/120). 
66 In the context of the adoption of m easures relating to "new services". 
67 Reciprocity condition. WT/REG273/1 
Page 40  
 
  reserved from Chapter 6 provisions on MFN treatment (g ranted to Switzerland).  In one case there is a 
reciprocity requirement
68, while in three other cases transportation services for natural gas on a fee or 
contract basis, fisheries within territorial wate rs, internal waters, exclusive economic zone and 
continental shelf, and public law enforcemen t and correctional services and social services are 
reserved.   
(b) Switzerland's List of Reservations  
127. Appendix 2 of Annex III of the Agreement c ontains Switzerland's reservations setting out 
existing measures that do not conform to some or all of the obligations taken under the Agreement 
relating to national and MFN treatment, and market access.  These reservations represent a standstill 
commitment, as Switzerland will be able to maintain , review, or even amend the existing measures 
listed that do not comply with these obligations, but will not be ab le to make these measures more 
restrictive.  Unlike Japan, Switzerland has reserve d in the same list both existing non-conforming 
measures and measures which may be adopted in th e future in certain sectors and sub-sectors.  
Consequently, Appendix 2 of Annex III of the Agre ement also contains Switzerland's reservations 
setting out specific sectors, sub-sectors or activities for which it may maintain existing, or adopt new 
or more restrictive measures that do not conform with some or all of th e obligations under the 
Agreement relating to national and MFN treatment , and market access.  Appendix 2 represents a 
broader carve-out than the reservations in Appendix 1. 
128. Switzerland has 103 reservations.  Four of the "existing measures" apply to all sectors and 
require specific legal forms for companies providi ng services in Switzerland, domicile requirements 
for the establishment of a branch, or authorization requirement for the acquisition of certain types of 
real estate, to which Chapter 6 provisions on nati onal treatment do not apply. Fifty-eight reservations 
cover measures to which Chapter 6 provisions on MF N and/or national treatment do not apply, and/or 
market access. The measures listed cover parts of most services sectors, except tourism and 
travel-related services.  The measures include: re gistration requirement and/or authorization 
procedures (in some business services, or trade ser vices for example);  residency requirement (in 
pipeline transport services for example); exclusivity mandates, state monopolies, and/or concession 
requirement (in some postal and courier services, specialty air services, or construction work and 
mining services for example); licensing requirements (in some financial services for example); establishment requirement (in some insurance services for example); nationality requirement (including for Japanese services providers) (in co mmunity and social services for example); or 
qualification requirement (in some business services for example).  Various regulatory limitations 
and/or prohibitions on the provision of certain ty pes of services are also listed as non-conforming 
measures in connection with national treatment and/ or market access limitations (in some business 
services, agricultural services for example).  A number  of reservations refer to sub-federal measures 
(cantonal or municipal in a few cases).  In five cases the measures, to wh ich also breach Chapter 6 
provisions on MFN treatment (granted to Japan) do not apply, take the form of a reciprocity 
requirement or is related to the participa tion of Switzerland in bilateral or regional 
agreements/programmes.
69  
129. In relation with "future" measures, three apply to  all sectors in connection with the application 
of non-conforming measures, taking the form of residency requirements for certain personnel, discrimination related to subsidies, tax incentives a nd tax credits, or limitations on the nationality of 
certain executives and/or the control of certain en terprises, which could breach Chapter 6 provisions 
on national treatment.  The 38 othe r reservations cover measures breach ing Chapter 6 provisions on 
                                                     
 
68 With respect to the acquisition or lease of land in Japan. 
69 For example, in relation with transport services, in  the context of bilateral road transport agreements 
or the Revised Act on Rhine Shipping, or, for audiovisua l services, in the context of the Council of Europe 
Convention on transfrontier television or the MEDIA-EURIMAGES programmes.  WT/REG273/1 
 Page 41 
 
 
  MFN and/or national treatment, and/or market access,  which are or may be taken in the future with 
respect to parts of:  trade services;  transport ser vices (rail, road, internal waterways, supporting and 
auxiliary transport services);  telecommunication a nd audiovisual services;  financial services;  
business services (audit, leasing or rental, advertisi ng, investigation and security, collection agency, 
for example);  construction work and mining servi ces;  services related to energy;  community and 
social services, including education services;  trade services;  audiovisual services;  cultural and 
recreational services, as well as other services sectors or sub-sectors, including "new services."   
2. Lists of Reservations / Non-conforming measures for investment 
130. In relation with investment (Chapter 9) the a doption by the Parties of a negative list approach 
means that all measures taken by the Parties are deem ed to be consistent with the national treatment, 
MFN and performance requirements principles in Artic les 87, 88 and 96, respectively, unless listed by 
the Parties in Annex IX of the Agreement.   
(a) Japan’s Lists of Reservations  
131. Section 1 of Appendix 1 of Annex IX of the Agreement contains the Reservations made by 
Japan setting out existing measures that do not confor m with some or all of the obligations in the 
Agreement relating to national and most-fa voured-nation treatment, and/or performance 
requirements.70  It represents a standstill commitment, as Japan will be able to maintain, review, or 
even amend the existing measures listed that do not  comply with these obligations, but will not be 
able to make these measures more restrictive.  Sec tion 2 of Appendix 1 of Annex IX of the Agreement 
contains reservations setting out specific sector s, sub-sectors or activities for which Japan may 
maintain existing, or adopt new or more restrictive measures that do not conform with some or all of 
the obligations taken under the Agreement re lating to national and MFN treatment, and/or 
performance requirements.  It represents a broade r carve-out than reservations in Section 1. 
132. Japan has 22 reservations under Section 1.  One of  these applies to all sectors in relation with 
non-conforming measures taken by local government s other than prefectures, with regard to 
provisions on MFN and national treatment as well as on performance requirements in Chapter 9.  
Most of the other reservations cover measures breach ing Chapter 9 provisions on national treatment, 
which take the form of prior notification requirement s for investors intending to make investments in 
sectors such as information and communication; manufacturing; oil industry; agriculture, forestry and fisheries; transport (essentially air and railway transport as well as water transport).  Four non-conforming measures also constitute a breach of Chap ter 9 provisions on MFN treatment (granted to 
Switzerland).  In two cases the measures take the form of reciprocity-based registration or permission 
requirements.
71  In two other cases the measures take th e form of prohibitions on Swiss investors.72   
133. Japan has 10 reservations under Section 2.  Three of these apply to all sectors in relation with 
non-conforming measures with regard to the prov isions on MFN and/or national treatment in 
Chapter 9.73  Most of the seven other reservations relate  to Chapter 9 provisions on national treatment, 
which are or may be taken in the future with r espect to aerospace industry; arms and explosives 
                                                      
70 Article 96 of the Agreement entitled "prohibition of performance requirement" states that "the Annex 
to the Agreement on trade-related investment measur es in Annex 1A to the WTO Agreement, the TRIMs 
agreement, is (hereby) incorpor ated into and made part of (the Agreement), mutatis mutandis". 
71 In the case of investments related to freight forwarding business. 
72 In the case of investments related to foreign aircra fts used for a flight betw een points within Japan. 
and in the case of investments related to ships not flying the Japanese flag entering ports in Japan which are not 
open to foreign commerce and from carrying cargoes or passengers between ports in Japan. 
73 For instance in the context of transferring Japa n's equity interests in a state enterprise or a 
governmental entity, or in the event of a liberalization of the supply of certain services, or in the context of the 
adoption or maintenance of measures related to research and development subsidies. WT/REG273/1 
Page 42  
 
  industry; energy; fisheries within the territorial sea,  internal waters, and/or exclusive economic zone 
and continental shelf; broadcasting industry; la nd transaction; and public law enforcement and 
correctional services and social services.   
(b) Switzerland’s List of Reservations  
134. Switzerland's reservations in Section 1 of Appe ndix 2 of Annex IX of the Agreement set out 
existing measures that do not conform with some or  all of the obligations taken under the Agreement 
relating to national and most-favoured-nation treat ment. It represents a standstill commitment, as 
Switzerland will be able to maintain, review, or even amend the existing measures listed that do not 
comply with these obligations, but will not be able to  make these measures more restrictive.  Section 2 
of Appendix 2 of Annex IX of th e Agreement contains Switzerland's reservations setting out specific 
sectors, sub-sectors or activities for which it may main tain existing, or adopt new or more restrictive 
measures that do not conform with some or a ll of the obligations taken under the Agreement 
relating to national treatment, most-favoured-na tion treatment, and/or performance requirement.
74  It 
represents a broader carve-out than reservations in Section 1.  
135. Switzerland has seven reservations under Section 1. Three of these apply to all sectors in 
relation with non-conforming measures by cantonal governments in relation with the acquisition of 
real estate, or with the application of non-c onforming measures by municipal governments, to which 
Chapter 9 provisions on MFN and/or national treatment would not apply. Some domicile 
requirements are also reserved for some forms of companies, such as a bran ch office.  The other 
reservations cover measures to which Chapter 9 prov isions on national treatme nt does not apply, and 
which take the form of registration, concession or commercial presence requirements for investors 
intending to make investments in the energy sector.75  One reservation refers to non-conforming 
measures to which Chapter 9 provisions on MFN treatment (granted to Japan) do not apply, requiring reciprocal authorization to construc t and operate nuclear facilities.   
136. Switzerland has two reservations under Section 2,  which apply to all sect ors in relation with 
the application of non-conforming measures, wh ich breach Chapter 9 provi sions on MFN and/or 
national treatment, like for instance in the context of  transferring Switzerland's equity interests in a 
state enterprise or a governmental entity.  
E. L
IBERALIZATION COMMITMENTS IN SELECTED SECTORS AND SECTOR -SPECIFIC PROVISIONS 
ON TRADE IN SERVICES  
137. In the context of WTO liberalization commitmen ts, both Japan and Switzerland made specific 
commitments in all services sectors.76 Moreover, Japan made additional commitments in  
telecommunications services, is a signatory to th e Fourth Protocol on basic telecommunications, and 
made additional commitments in financial services.77  Switzerland made additional commitments in 
telecommunications services, is a signatory to th e Fourth Protocol on basic telecommunications, and 
made additional commitments in financial service s, as well as the movement of natural persons.78  
Furthermore, Switzerland has MFN (GATS Article II) exemptions.79  In the context of the DDA 
                                                      
74 as referred to in the previous footnote. 
75 Oil prospecting and exploitation – which is reserved for companies that are 75% Swiss-owned, 
nuclear energy, hydroelectric power, and pipelines. 
76 For Japan see WTO document GATS/SC/46, and for Switzerland see WTO document GATS/SC/83. 
77 Respectively, WTO documents GATS/SC/46/Suppl.2 and GATS/SC/46/Suppl.3. 
78 Respectively, WTO documents GATS/SC/83/Suppl.3/Rev.1, GATS/SC/83/Suppl.4, and 
GATS/SC/83/Suppl.2. 
79 See WTO documents GATS/EL/83 and GATS/EL/83/Suppl.2.  WT/REG273/1 
 Page 43 
 
 
  negotiations, both Japan and Switzerland ha ve presented revised conditional offers.80  The 
liberalization commitments made by the Parties in the Agreement build on their respective GATS 
commitments as amended.  In some sectors or sub-sectors they go beyond their GATS commitments, often including a number of additiona l liberalization commitments in the Parties' respective revised 
offers under the DDA negotiations.   
1. Communication services 
138. Communication services, including postal, cour ier, telecommunication, and audiovisual 
services are subject to the disciplines on trade in services in Chapter 6, and when applicable in 
Chapter 9 (investment), inter alia , in relation with MFN and national treatment, and/or market access, 
and/or performance requirements.  Reserved measure s are listed in Annex III for trade in services, and 
Annex IX for investment.
81  The Parties' commitments in th e Agreement are based on their GATS 
commitments and subsequent improvements in thei r respective revised conditional offers under the 
DDA negotiations.  
139. For postal-courier services , Japan maintained a broad r eservation for postal services and 
Switzerland reserved exclusive rights for the supply of universal postal services as in their GATS 
commitments. However, neither Party has reservations for courier or express delivery services , which 
are not covered by their GATS specific commitments.   
140. In telecommunications services , bilateral commitments in the Agreement mirror to a large 
extent the Parties' GATS commitments and improve ments in their respective revised conditional DDA 
negotiation offers.  For example, like in its GATS Schedule, Japan's Agreemen t-related reservations 
indicate a foreign equity limitation and a related restriction on the nationality of board members.  
Nevertheless, the foreign equity restriction of one third under the Agreement is more liberal than in 
the existing GATS commitments although it is the sa me as in Japan's DDA in itial conditional offer.  
Switzerland, for its part, does not list any restrictio ns on telecommunications. This is consistent with 
its GATS telecommunications commitments currently  in force, which have listed essentially all 
telecommunication services with no limitations in all modes of supply for all sub-sectors. 
141. Annex VII of the Agreement contains compleme ntary disciplines, related to Chapter 6 and 
applies to measures by a Party affec ting trade in telecommunications services.82  The disciplines 
contained in Annex VII of the Agreement on comp etitive safeguards (Article II), on interconnection 
(Article III), on universal service (Article IV), on licensing procedure (Article V), on regulatory 
authority (Article VI), and on a llocation and use of scarce resources (Article VII), replicate the 
additional commitments on basic telecommunications contained in the Reference Paper attached to 
Japan's and Switzerland's WTO specific commitments on basic telecommunications.83  Commitments 
                                                      
80 For Japan WTO document TN/S/O/JPN/Rev.1, 24 June 2005, and for Switzerland WTO document 
TN/S/O/CHE/Rev.1, 14 June 2005. 
81 See Section C above. 
82 "Telecommunication" means the transmission and reception of signals by any electromagnetic 
means, and the disciplines contained in Annex VII of the Agreement cover the four modes of supply. However, 
Annex VII does not apply to measures by a Party affecting broadcasting services as defined in its laws and 
regulations. Moreover, in respect of Japan, "broadcasting services" includes "radio and television services" and 
"radio and television transmission services" under the GAT S Services Sectoral Classifi cation List. In respect of 
Switzerland, Reservation No. 30 contained in Appendix 2 of Annex III defines "broadcasting services" as the 
production, processing, transmission and reception of radio and television programme services. A programme service is a sequence of programmes which are offere d continuously, defined in time and transmitted using 
telecommunications techniques and which are intended for the public, while "tel ecommunication services" are 
defined as the transport of electromagnetic signals – sound, data, image and combinations thereof – excluding services which are defined as broadcasting services ac cording to the Federal Law on radio and television. 
83 See WTO documents GATS/SC/46/Suppl.2 and GATS/SC/83/Suppl.3/Rev.1. WT/REG273/1 
Page 44  
 
  on number portability (Article VIII), consumer and data protection (A rticle IX), and exchange of 
information (Article X) complement Annex VII of the Agreement.  Although both Parties have 
specified that certain paragraphs of Anne x VII of the Agreement only apply to basic 
telecommunications
84, and while Japan has listed certain Annex VII provisions that will only apply to 
a major supplier which has control over essential facilities, the telecommunications sector (beyond 
basic telecommunications) can benefit from a number  of the disciplines in Annex VII, whereas only 
non-preferential suppliers of basic telecommunicati ons services can benefit from the provisions of the 
GATS Reference Paper.  Moreover, recourse to an independent domestic body, which may be a 
regulatory authority, is foreseen to resolve disput es regarding appropriate te rms, conditions and rates 
for interconnection (Article III, pa ragraph 7) under the Agreement.  
142. In audio-visual services , although Annex VII of the Agreement does not apply to 
broadcasting services (see above), both Parties have a number of reservations in this sub-sector.  
Switzerland has no commitments in audiovisual servi ces, neither in the GATS nor in its DDA revised 
conditional offer. 
2. Financial services 
143. Financial services are subject to the discip lines on trade in services in Chapter 6, inter alia , in 
relation to MFN and national treatment, and/or ma rket access, and performance requirements.  
Reserved measures are listed in Annex III for trade in services, and Annex IX for investment.  The 
Parties' commitments on financial services build on their respective GATS specific commitments and are in general similar to those in thei r latest DDA revised conditional offers. 
144. With regard to foreign control
85, a licence to establish a bank, an office, a branch or an agency 
or to appoint a permanent representative may be gr anted by Switzerland on the basis of reciprocity 
(reservations 40 and 41 in Appendix 2 of Annex III of the Agreement).  Switzerland has however not 
indicated that this existing measure is in breach of  MFN provisions in Chapter 6 (granted to Japan). 
145. Annex VI of the Agreement contains compleme ntary disciplines, related to Chapter 6 and 
applies to measures by a Party affecting trade in financial services.86  The key obligations of 
Annex VI of the Agreement are market access (Ar ticle II), and national treatment (Article III).  
146. With regard to market access, Japan and Switzer land allow financial service suppliers of the 
other Party established in their Area to offer any new financial service in the Area.87  Moreover, as a 
derogation to Article 43, paragra ph 3 (non coverage of government  procurement), MFN and national 
treatment shall be accorded by one Party to financia l service suppliers of the other Party as regards the 
purchase or acquisition of financial services by  public entities of Japan and Switzerland. 
                                                      
84 Article II to VIII of Annex VII of the Agreement only apply to basic telecommunications services. 
85 "Foreign control" in this case mean s that a foreign person with a qualified participation directly or 
indirectly holds more than 50% of the voting rights in the bank or a significant influence on it is exercised in 
another manner. 
86 "Financial services" means any serv ice of a financial nature offered by a financial service supplier of 
a Party. Financial services include all insurance and insurance-related services, and all banking and other 
financial services (excluding insurance) and the disciplines contained in Annex VI of the Agreement cover the four modes of supply. 
87 "New financial services" means a service of a fina ncial nature, including services related to existing 
and new products of the manner in which a product is delivered, which is not supplied by any financial service supplier in the Area of a Party but which is supplied in the Area of the other Party or in a any other Member of 
the WTO.  WT/REG273/1 
 Page 45 
 
 
  147. National treatment is granted by a Party to fina ncial service suppliers of the other Party with 
respect to access to payment and clearing systems ope rated by public entities, and to official funding 
and refinancing facilities available in th e normal course of ordinary business.  
148. Annex VI of the Agreement also contains di sciplines on transparency, including in the 
context of licences (Article IV), expeditious appl ication procedures (Article V), and transfers of 
information and processing of information (Article VIII).  
149. Japan and Switzerland may adopt or maintain me asures for prudential reasons (Article VI), 
including for the protection of investors, depositors , policy holders or persons to whom a fiduciary 
duty is owed by a financial institution, or for ensuring the integrity and stability of the Party's 
financial system.  Prudential measures shall not be used as a means of avoiding the Party's 
commitments or obligations and the Parties conf irmed that they are required under OECD to 
implement the Code of Liberalization of Current I nvisible Operations.  Moreover, the Parties took a 
best endeavour commitment to ensure that the Basel Committee's "Core Principles for Effective 
Banking Supervision", the standards and principles of the International Association of Insurance 
Supervisors and the International Organisation of Securities Commission's "Objective and principles 
of Security Regulation" are implemented and ap plied in their Areas.  Furthermore, adequate 
opportunity shall be afforded by a Party to the ot her Party to negotiate its  accession to an agreement 
or arrangement concluded by the other Party rec ognising prudential measures of a non-Party or of any 
international regulatory body in determining how the Party's measures relating to financial services shall be applied (Article VII).  
150. The Agreement establishes a Sub-Committee on Fina ncial Services to assist in the effective 
implementation and operation of Chapter 6 with respect to financial services.  
3. Transport services 
151. Japan's and Switzerland's commitments on tran sport services build on their respective GATS' 
specific commitments and are in general overall similar to those in their latest DDA revised conditional offers.  In some cases however, the Agreement goes further than the Parties' GATS 
commitments, for example, in  the case of Switzerland, for maritime transport  services, for some 
aspect of air transport services, and with respect to pipeline transport.  Certain transport sectors 
subject to concessionary restrictions and/or state (Federal or Cantonal) monopolies remain, however, reserved as already noted in Switzerland's GATS Sche dule.  The Agreement goes further than Japan's 
individual GATS commitments, for example, for some aspects of air or inland waterways  transport 
services as well as some pipeline services .  The water transport sector remains, however, subject to 
limitations and requirements similar to those incl uded in Japan's GATS Schedule, for example, to 
enter certain ports, and/or load and unload cargo in Japan.  A number of reservations by the Parties 
also concern transport-related activities which are not covered under the GATS.  Moreover, in respect 
of air transport services, the disciplines in Chap ter 6 of the Agreement do not apply to measures 
affecting traffic rights, however granted, or measures affecting services directly related to the exercise 
of traffic rights other than those affecting aircraft repair and maintenance services; the selling and 
marketing of air transport services; or computer reservation system services. 
4. Other services 
152. In many other sectors (for example in business services, construction and related engineering 
services, education services, or distribution services) , the Parties' commitments mirror to a large 
extent their respective GATS' specific commitments a nd are generally similar to those in their revised 
conditional DDA offers.  In others the Agreement go es further than the Parties' GATS commitments.  
For example, in the Agreement, health related and social services  that are not covered in Japan’s 
GATS Schedule are liberalized subject to reservations by Japan.  Similarly, Japan has no reservations WT/REG273/1 
Page 46  
 
  in relation to tourism and travel related services , for which it had listed some limitations under the 
GATS.  In the case of Switzerland, health related and social services , not covered in its GATS 
Schedule, is liberalized subject to reservations listed in Annex III of the Agreement.  Similarly 
Switzerland has no reservations in environmental services , tourism and travel related services , and 
only limited reservations in recreational, cultural and sporting services , for which some limitations 
had been listed in its GATS Schedule.  
5. "New services" 
153. In their respective Annex III lists of non- conforming measures, both Parties have a 
reservation for "new services" for  all sectors , in which they may maintain existing, or adopt new or 
more restrictive measures that do not conform with  obligations on MFN and national treatment and/or 
market access.
88  For Japan, "new services" are defined as any service not classified positively and 
explicitly in JSIC89 or CPC on the date of entry into force of the Agreement.90  Japan, however, did 
not make this reservation applicable under Artic le II of Annex VI (market access for financial 
services).  For Switzerland, "new services" are defined as services that are not currently delivered on the Swiss market and/or that are not mentioned e xplicitly in the CPC classification.  It includes 
services relating to existing or new products or the manner in which a product or service is supplied. 
Moreover, in respect of commercial presence (mode 3) , such restrictive measures shall comply with 
the provisions on national treatment. As regards cr oss-border trade, the right to introduce any new 
discriminatory measure is reserved by Switzerland.  The reservations on "new services" may also be considered in relation with Article 74 of Chapte r 8 on electronic commerce, which states that each 
Party shall ensure that its measures governing el ectronic commerce do not discriminate against the 
supply of services transmitted electronically against the supply of like services by other means.  
F. R
EGULATORY PROVISIONS ON TRADE IN SERVICES  
1. Domestic regulation 
154. Article 48 on domestic regulation, elaborates on GA TS Article VI and contains transparency 
and administration-related disciplines applicable wh en authorization is required for the supply of a 
service, providing for the possibility to conduct a n ecessity test when appropriate.  These disciplines 
are binding upon a Party only in sectors in whic h it has undertaken specific GATS commitments.  In 
addition, Article 48.4 refers to the same criteria as  sub-paragraphs (a), (b), and (c) outlined in 
Article VI.4 of the GATS.  The Parties undertake the obligation to apply licensing and qualification 
requirements and procedures as well as technical st andards in conformity with these criteria. 
155. Annex IV of the Agreement, referring to Chapter 6, sets out supplementary provisions to 
Article 48.  It applies to measures by a Party re lating to licensing and qualification requirements and 
procedures and technical standards. It elaborat es on the international standards of relevant 
international organizations that sh all be taken into account, and establishes  a process of exchange of 
views on work relating to service standards at an  international level a nd on the elaboration of 
domestic standards.  Annex IV also contains a be st endeavour commitment for a Party to treat a 
technical regulation for a service adopted or maintain ed by the other Party as equivalent to its own, 
provided that the latter Party is satisfied that the regulation adequately fulfils its legitimate policy 
                                                      
88 For Japan, see Annex III, Appendix 1, Section 2, non conforming measure No. 3. For Switzerland, 
see Annex III, Appendix 2, non conforming measures No. 102 and 103. 
89 JSIC:  Japan Statistical Industrial Classification se t out by the Japanese Statistics Bureau (as revised 
on 6 November 2007).  
90 This definition covers cases where new services whic h could not be foreseen at the time of entry into 
force of the Agreement emerge in th e future as a consequence of technological advances. These new services 
would not have been recognized at the time the CPC was adopted.  WT/REG273/1 
 Page 47 
 
 
  objectives.  Similarly, a relatively soft best endea vour clause exists on the acceptance of the results of 
a conformity assessment procedure for a service co vered by Chapter 6 conducted by the other Party. 
The structure and content of these provisions are, in  essence, similar to paragraphs 4 and 6 of Article 
906 of the NAFTA. Finally, a best endeavour clause is  contained in Annex IV of the Agreement with 
a view to implementing the Disciplines on Domestic Regulation in the Accountancy Sector adopted 
under the auspices of the WTO on 14 December 1988, wh ich is incorporated and made part of Annex 
IV of the Agreement, mutatis mutandis . 
156. The Parties will review any development relate d to Art. VI:4 of the GATS negotiations, and 
as appropriate, incorporate these results into the Agreement. 
2. Recognition 
157. Article 49 on domestic regulation, reiterates some of the disciplines contained in GATS 
Article VII.  Where a Party accords recognition of th e education or experience obtained, requirements 
met, or licences or certifications granted, in a non -Party, it shall afford the other Party adequate 
opportunity to demonstrate that the education or ex perience obtained, requirements met, or licences or 
certifications granted in the other Party should also be recognized.  A Party shall also afford adequate 
opportunity to the other Party to negotiate its accession to mutual recognition agreements or 
arrangements.  Article 49 is complemented by Annex V of the Agreement, referring to Chapter 6, and 
elaborates on the procedure to be followed for r ecognition and on the provision of information, inter 
alia, through enquiry points to be designated by the Parties.  A consultation process will address 
questions on the applicable procedures for recogni tion. Moreover, each Party shall encourage the 
competent authorities and the professional bodies in its territory to recognise qualifications of services 
suppliers obtained in the other Party, based inter alia  upon equivalence, in particular for professional 
services. 
3. Other regulatory provisions 
158. Article 51 requires the Parties to ensure that any monopoly supplier of a service, including 
exclusive service suppliers, acts in a manner consistent  with the Parties' obligations with respect to 
MFN, market access, and national treatment.  The abuse of monopoly positions to act in a manner 
inconsistent with that Party’s obligati ons under Articles 46 and 47 is prohibited. 
159. Where certain business practices of service suppliers, other than monopolies or exclusive 
service suppliers (covered by Article 51), restrain co mpetition and thereby restrict trade in services, 
the Parties shall enter into consultations with a view to eliminating such practices (Article 52). 
G. SAFEGUARD ACTIONS ON SERV ICES AND INVESTMENT  
160. The Agreement does not contain any specific disciplines regulating safeguard actions on 
services and investment with the exception of the ge neral provision on safeguard measures in case of 
financial or balance of payment difficulties, which also  applies to trade in services and to investment.  
Safeguard measures in case of financial or balance of payments difficulties can be imposed. Article 54 
(for trade in services), and Article 97 (for investment ) contain disciplines on the use of measures that 
restrict respectively trade in services, payments or transfers for transaction91 or cross-border capital 
transaction as well as payment and transfers relating to investment, where the Party experiences financial or balance of payments a nd external financial difficulties or threat thereof, or, in the case of 
investment, in exceptional cases where movement of capital causes or threatens to cause serious 
                                                     
 
91 Except under the circumstances envisaged under Article 54, a Party shall not apply restrictions on 
international transfers and payments for current transactions  and capital transactions relating to trade in services 
(Article 53). WT/REG273/1 
Page 48  
 
  difficulties for macroeconomic management, in particul ar monetary and exchange rate policies.  The 
provisions of the Agreement replicate, with so me minor differences, Article XII of the GATS. 
However the Parties have committed, through a best endeavour clause, to avoid the imposition of such 
restrictions. Moreover, nothing in the Agreement sh all be so construed as to alter the rights enjoyed 
and obligations of a Party as a party to the Articles or Agreements of the IMF.  
V. GENERAL PROVISIONS OF THE AGREEMENT 
A. T
RANSPARENCY  
161. Article 4 provides for prompt publication of laws, regulations, administrative procedures, 
judicial decisions and administrative rulings of gene ral application as well as international agreements 
which pertain to or affect the operation of the Ag reement. In case changes of the above instruments 
significantly affect the operation of the Agreement,  the Parties shall endeavour to provide, except in 
emergency situations, a reasonable interval between the time of publication and the time of entry into 
force of the measure. Confidential information is pr otected under Article 5. In particular, the Parties 
are not required to provide confidential informa tion if this would impede law enforcement, be 
contrary to the public interest or prejudice legitimate commercial interests.   
B. EXCEPTIONS  
162. General exceptions are maintained by  incorporating into the Agreement mutatis mutandis  
Article XX of the GATT 1994 for trade in goods (A rticle 22) and GATS Article XIV for trade in 
services (Article 55) and the making of investments (A rticle 95.1).  The provisions of Article 55 also 
apply mutatis mutandis to Chapter 7 covering the movement of natural pe rsons (Article 69).   
163. Security exceptions are maintained by incorporating into the Agreement mutatis mutandis  
Article XXI of the GATT 1994 for trade in goods (Article 22) and GATS Article XIV bis, for trade in 
services (Article 56) and the making of investments (Article 95.1).92  The provisions of Article 56 also 
apply mutatis mutandis  to Chapter 7 covering movement of natu ral persons (Article 69).  With regard 
to Intellectual Property, Article 73 of the TRIPS Agreement is incorporat ed into the Agreement 
mutatis mutandis  (Article 129). 
C. TAXATION  
164. Although, as a principle, the Agreement does not apply to taxation, Article 6 specifies the 
disciplines that are relevant to taxation measu res with the corresponding conditions.  Without 
prejudice to the chapters on trade in services, i nvestment and intellectual property, the Agreement 
does not affect the rights and obligations of eith er Party under any agreement on the avoidance of 
double taxation.  In the event of inconsistency betw een the Agreement and any such treaty, that treaty 
prevails to the extent of the inconsistency and consultations are foreseen to settle possible adverse 
effects of taxation measures on the implementation of the Agreement. 
D. ACCESSION  
165. The Agreement has no provisions on accession by  third parties but contains a termination 
clause (Article 154), which foresees one year's notice in advance. 
 
                                                      
92 Paragraph 1 of Article XIVbis of the GATS shall also apply, mutatis mutandis , to investments made 
(Article 95.2). General and Security Exceptions are not applicable to Articles 86.1, 91, and 92 of the Agreement 
(Article 95.3).  WT/REG273/1 
 Page 49 
 
 
  E. INSTITUTIONAL FRAMEWORK  
166. Chapter 15 of the Agreement covers institu tional arrangements and establishes the Joint 
Committee to review and monitor implementation, c onsider any amendments to the Agreement, seek 
to resolve disputes that may arise regarding its interp retation or application, supervise the work of all 
Sub-Committees and ad hoc working groups established under the Agreement, a nd consider any other 
matter that may affect the operation of the Agreement.  The Join t Committee may establish 
Sub-Committees or ad hoc working groups to assist it in carrying out its functions.  The Joint Committee shall meet, in principle, every two year s.  It first met on 1 September 2009 and adopted 
three Decisions.
93  Decision No 1 of the Joint Committee contains the Rules of Procedures of the Joint 
Committee. 
167. Japan has designated the Central and South Eastern Europe Division – European Bureau, 
Ministry of Foreign Affairs, and Switzerland has designated the Free Trade Agreements Division of 
the State Secretariat for Economic Affairs (SECO), as contact points, to facilitate communications 
between them on any matter relating to the Agreement (Article 149).94   
168. In addition to the institutional arrangements in Chapter 15, a number of other chapters of the 
Agreement contain institutional provisions.  Artic le XXX of Annex II of the Agreement (on rules of 
origin) establishes a Sub-Committee on Rules of Orig in, Customs Procedures, and Trade Facilitation, 
rules;  Article 41 establishes a Sub-Committee on T echnical Regulations, Standards, and Conformity 
Assessment Procedures; Article 128 establishes S ub-Committee Intellectual Property; and Article 134 
establishes a Sub-Committee on Promotion of a Closer Economic Relationship.  
169. Moreover, in the context of the Agreement's specific Dispute Settlement mechanism, covered 
by Chapter 14, the Agreement foresees, if requested  by a Party, the establishment of an arbitral 
tribunal (see below). 
170. In addition to the contact point established by  Article 149, the Agreement also establishes 
enquiry points on TBT-matters (Ar ticle 39), and on government proc urement matters (Article 131).  
                                                      
93 Decision No. 1, establishing the rules of pro cedures of the Joint Committee; Decision No. 2, 
adopting the operational procedures for trade in goods; and Decision No. 3 adopting the operational procedures 
for rules of origin. 
94 In Decision No. 1 of the Joint Committee, adopted on 1 September 2009, the Parties have clarifies 
some of the functions of the contact points in relation with meetings of the Joint Committee. WT/REG273/1 
Page 50  
 
  171. The following Chart summari zes the Working Bodies estab lished by the Agreement. 
 
   
 
    
 
     
 
     
 
    
 
     
 
 F. D
ISPUTE SETTLEMENT  
172. Chapter 14 of the Agreement sets out procedures on the settlement of disputes between the 
Parties relating to the interpretation and/or app lication of the Agreement.  Chapter 14 does not 
preclude that Parties may have recourse to dis pute settlement procedures available under any other 
international agreement to which both Parties ar e party, including the WTO Dispute Settlement 
mechanism (Article 138).  The Parties may ther efore choose a dispute settlement mechanism for 
matters arising under both the Agreement and the WTO.  However, once the complaining Party has 
chosen the forum to settle the dispute, by either requesting the establishment of an Arbitral Tribunal 
under Article 141 of the Agreement or the establis hment of a WTO Panel under Article 6 of the WTO 
Understanding on Rules and Procedures Governing the Settlement of Disputes, the chosen procedure 
shall be used to the exclusion of the other for the particular dispute.  
173. The Agreement's Dispute Settlement mechanism does not apply to disciplines contained in 
Chapters 4 (SPS), 5 (TBT), 10 (Competition), 12 (Gov ernment Procurement), and 13 (Promotion of a 
closer Economic Relationship) of the Agreement.  Moreover, investment disputes between an Investor 
and a Party are to be settled according to the sp ecial procedure established by Article 94, involving 
consultations between the investor and the disputing Party, or international conciliation or arbitration Joint Committee 
TBT enquiry points 
(Art. 39) Chart V.1 
Institutional Framework  
Source : WTO Secretariat based on   the Agreement . Sub-committee on Rules of Origin, 
Customs Procedures and Trade 
Facilitation 
(Art. XXX, Annex II) 
Sub-Committee on Technical 
Regulations, Standards, and 
Conformity Assessment Procedures 
(Art. 41) Contact Points 
(Art. 149) Arbitral Tribunal(s) 
(Art. 141) 
Ad hoc working group(s)  
(when necessary) 
(Art. 41.3) 
Sub-Committee on Intellectual 
Property (Art. 128) Government Procurement 
enquiry points 
(Art. 131) 
Sub-Committee on Promotion of a 
Closer Economic Relationship      
(Art. 134)  WT/REG273/1 
 Page 51 
 
 
  by the International Centre for Settlement of Inv estment Disputes (ICSID), or through an ad hoc 
arbitral tribunal agreed upon by the disputing Parties or established under the United Nations 
Commission on International Trade Law (UNCITRAL) arbitration rules. 
174. The Parties first seek to resolve disputes throug h consultations (Article  139).  Moreover, good 
offices, conciliation or mediation may be requested at  any time by either Party (Article 140).  In the 
event that the Party complained ag ainst does not enter into consultations within 30 days after the date 
of receipt of the request for consultations (15 days if  the dispute applies to perishable products), or if 
the consultations fail to resolve the matter within  60 days, the complaining Party may request the 
establishment of an Arbitral Tribunal (Article 141). The Arbitral Tribunal is composed of three arbitrators appointed in accordance with the provisions  of the Agreement.  The Arbitral Tribunal shall 
examine the matter and make its award in accordan ce with the Agreement and applicable rules of 
international law. If requested by the complain ing Party, the Arbitral Tribunal may suggest 
implementation options for the Parties to consider.  Proceedings of the Arbitral Tribunal are governed 
by the provisions contained in Article 143.  The Ar bitral Tribunal shall, within 90 days, submit to the 
Parties a draft award, which they may comment within  15 days. The Arbitral Tribunal's final report is 
issued within 30 days after the date of submission of the draft award.  The award of the Arbitral 
Tribunal, which shall be made public , is final and binding on the Parties (Article 142).  At any time 
before the issuance of the award, th e Parties may agree to suspend the work of the Arbitral Tribunal.  
If the work of the Tribunal has been suspended fo r more than twelve months, the authority of the 
Arbitral Tribunal to examine the dispute shall lap se, unless the Parties agree otherwise (Article 144). 
175. The Party complained against shall promptly co mply with the award issued by the Arbitral 
Tribunal as described in Article 145.  The Party comp lained against must notify of the means and the 
period of time for implementing the award within 20 days after the issuance of the award.  If the 
complaining Party considers the notified means or period of time to be unacceptable, it may request 
the Party complained against for consultations.  If such consultations fail within 20 days, the matter 
may be referred to an Arbitral Tribunal to dete rmine, within 15 days, the reasonable means or 
implementation period. 
176. If the Party complained against considers it impr acticable to comply w ith the award, it shall 
notify the complaining Party within 20 days after the issuance of the award and enter into consultations, with a view to agreeing mutually satisfactory compensation.  If, after 20 days, the 
Parties still disagree about the level of compensation,  the complaining Party may notify that it intends 
to suspend the application of concessions or other obligations under the Agreement. Such notification 
is also possible if the Party complained against h as failed to notify the means and period of time for 
implementing the award or if the complaining Party considers that the Party complained against has 
failed to comply with the award within the specifi ed implementation period.  The notification shall 
indicate when the suspension of the application of  concessions or other obligations shall commence 
and the application of what concessions or other oblig ations is to be suspended.  The suspension can 
be implemented only at least 30 days after the notificati on, shall be restricted to benefits equivalent to 
the level of failure to comply with the award, and be  restricted to the same sector or sectors to which 
the inconsistency with the provisions of, or the nu llification or impairment of the benefit, relates.
95  A 
suspension of concession cannot take place if consultati ons or proceedings before an arbitral tribunal 
are still in progress.  If the Party complained against considers, inter alia , that the level of suspended 
concessions is inappropriate, it may, within 10 days , request consultations.  If  such consultations fail 
to produce a solution within 30 days, the matter may be referred to an Arbitral Tribunal, which shall 
rule within 15 days.  Application of concessions or  other obligations under th e Agreement shall not be 
suspended until the Arbitral Tribunal has issued its  ruling.  The suspension of concessions shall be 
discontinued when the Parties reach a mutually sa tisfactory resolution or where the Party complies 
                                                      
95 Unless it is not practicable or effective to suspend the application of concessions or other obligations 
in such sector or sectors. WT/REG273/1 
Page 52  
 
  with the award.  An Arbitral Tribunal may be requested to rule, within 15 days, on the conformity 
with the award of any implementing measures adopt ed after the suspension of the application of 
concessions. In the light of such ruling, the susp ension should be terminated or modified as 
appropriate. The Arbitral Tribunal(s) involved, at various stages, on the same case, should, wherever 
possible, be composed of the arbitrators of the original Tribunal.  
177. The following Chart provides a synopsis  of the dispute settlement process. 
Chart V.2 
Agreement specific Dispute Settlement Mechanism 
 
 
* Procedures for good offices, conciliation and media tion provided in Article140 are allowed for at 
any time. 
 
G. GOVERNMENT PROCUREMENT  
178. Chapter 12 of the Agreement covers government  procurement.  As both Parties are also 
parties to the plurilateral WTO Agreement on G overnment Procurement (GPA), the Agreement 
confirms that the rights and obligations of the Par ties in respect of government procurement shall be 
governed by the GPA.  The Agreement's Disp ute Settlement mechanism does not apply to 
government procurement-relate d matters.  (Article 130). Request for Consultations (Art.139.1)
Establishment of Arbitral Tribunals (Art.141) 
Issuance of Award (Art.143.8 and 143.9)
Notification of Implementation Period and Means (Art.145.2) 
Suspension of Concession (Art.145.3)Consultations (Art.139.2)
Consultations (Art.145.6) 
Referral to Arbitral Tribunal (Art.145.6)
Issuance of Award (Art.145.8)Suspension of Concession (Art.145.4) Consultations on Compensation (Art.145.3)Implementation 
Compensation   WT/REG273/1 
 Page 53 
 
 
  179. The Parties have designated governmental authorities to function as enquiry points96 to 
facilitate communication between them on any matter regarding government procurement 
(Article 131).  They will consult in the Jo int Committee with a view to increasing mutual 
understanding of their respective government procuremen t systems.  In the event that, after the entry 
into force of the Agreement, a Party accords to  a non-party additional advantages of access to its 
government procurement market beyond those accorded  to the other Party under the GPA, the former 
Party shall, upon request of the other Party, enter into negotiations with a view to extending those 
advantages to the other Party on a reciprocal basis (Article 132).  
H. INTELLECTUAL PROPERTY RIGHTS  
180. Chapter 11 of the Agreement deals with Intell ectual Property Rights.  The Agreement defines 
intellectual property (IP) as covering copyrights and related rights, trademarks, industrial designs, 
patents, new varieties of plants, geographical and related indications, unfair competition, treatment of 
test data in marketing approval procedures, and/or all categories of intellectual property covered by 
the WTO TRIPS Agreement and/or the relevant inte rnational agreements referred to in the TRIPS 
Agreement.   
181. The Parties reaffirm their commitment to comply  with the obligations set out in international 
agreements relating to IP to which both Parties are parties.97  They reaffirm their obligation to grant 
national treatment to IPR holders (Article 108), a nd to accord to nationals of the other Party MFN 
treatment (Article 109).  The Parties have taken commi tments to enhance the efficiency of procedures 
(Article 110), to ensure that the procedures are c onducive to granting or registration IPRs within a 
reasonable period of time to avoid unwarranted curt ailment of the period of protection (Article 111), 
to ensure transparency of IP-related laws and regulations (Article 112), and to promote public 
awareness concerning protection of IP (Article 113). 
182. On copyrights and related rights , covered in Article 114, the Agreement reaffirms the 
disciplines of Part II Section 1 of the WTO TRIPS Agre ement.  In addition, the Parties shall grant and 
ensure protection as provided for in Articles 5 and 6 of the WPPT to performers for their visual 
performances, with the same kind of limitations or  exceptions as in Article 16 of the WPPT (provided 
that they are compatible with the Rome Conventi on).  They grant the authors the right to claim 
authorship of the work and to object to any distortion, mutilation or other modification of their work, which would be prejudicial to their honour or reputation.
98  The term of protection for copyrights and 
related rights is no less than 50 years. However, for certain categories of works, the term of protection is the life of the author and no less than 70 years afte r his/her death, or not less than 70 years after the 
authorised publication, or no less than  70 years after the making of the work. 
                                                     
 
96 For Japan: the Ministry of Foreign Affairs; fo r Switzerland: the State Secretariat for Economic 
Affairs. 
97 The Paris Convention for the protection of industrial property, the Patent Cooperation Treaty, the 
Strasbourg Agreement concerning th e international patent classifica tion, the Budapest Treaty on the 
international recognition of the deposit of microorganisms for the purposes of patent procedure, the 1991 UPOV 
Convention, the Protocol relating to the Madrid Agreem ent concerning the international registration of marks, 
the Trademark Law Treaty, the Nice Agreement concerning the interna tional classification of goods and 
services for the purposes of the registration of marks, the Madrid Agreement for the repression of false or 
deceptive indications of source on good s, the Berne Convention for the prot ection of literary and artistic work, 
the Rome Convention for the protection of performers, producers of phonograms and broadcasting 
organisations, the Convention for the protection of producers of phonograms against unauthorized duplication of 
their phonograms, the WIPO Copyright Treaty, and the WIPO Performances and phonograms Treaty (WPPT). 
98 These rights are maintained at least until the expiry of the economic rights, even after the authors' 
death. WT/REG273/1 
Page 54  
 
  183. Each Party shall ensure non-discriminatory treatment for owners of copyright in the other 
Party with regard to the enjoyment and the exer cise of copyrights, regardless of whether such 
copyrights are registered under the applicable laws and regulations of the former Party. 
184. A Party may be exempted from its obligations under Article 114 where the exemptions as 
provided for in Articles 7 and 7 bis of the Berne Convention may apply. 
185. The coverage of trademarks  protection foreseen by the Agreement, in its Article 115, is 
similar to that in Part II Section 2 of the WTO TRIPS Agreement.
99  The protection of well-known 
marks is underlined as the Parties reaffirm the im portance of the Joint Recommendation concerning 
provisions on the protection of well-known marks adopt ed by the Assembly of the Paris Union for the 
protection of Industrial Property and the General Assembly of the WIPO in 1999.  The exclusive right 
of the owner of a registered trademark to prevent all third parties not having the owner's consent from 
using, in the course of trade, identical or similar signs for products or services which are identical or 
similar to those in respect of which the trademar k is registered, where such use would result in a 
likelihood of confusion, is stipulated.    
186. On the protection of industrial designs -related IPRs, covered by Article 116, the right of 
owners of a protected industrial design to prevent all third parties not having the owner's consent from 
making, selling, importing or exporting articles bearing or embodying a design which is a copy, or substantially a copy, of the protected design when  such acts are undertaken for commercial purposes, 
is stipulated. 
187. On patents , covered by Article 117, the Agreement h as similar disciplines to those in Part II 
Section 5 of the WTO TRIPS Agreement.  The exclus ive right of owners of a patent to prevent all 
third parties not having the owner's consent from making, using, offering for sale, selling, importing 
for these purposes or exporting that product, is stipulated .  This exclusive right is granted to owners of 
patents for both products and processes.  In the latte r case, the prohibition on use, offer for sale, sale, 
import or export applies at least to products obtained directly by the patented process.  
188. With respect to a patent granted for an invention related to pharmaceuticals or plant 
protection products, the Parties shall provide  for a compensatory term of protection
100 for any period 
during which the patented invention cannot be work ed due to the marketing approval process.  The 
length of the compensatory terms of protection is defi ned in Article 117, paragr aph 6(c).  With respect 
to the treatment of test data in marketing approva l procedures, applicants for marketing approval for 
pharmaceutical products may not rely on or refer to test or other data submitted to its competent 
authority by the first applicant for a term of no l ess than six years from the date of approval of that 
application; and no less than 10 years for agricu ltural chemical products which utilise new chemical 
entities (Article 121).  
189. For new varieties  of all plant genera and species, covered by Article 118, the Parties 
committed to provide the same level of protection as under the 1991 UPOV Convention.  
                                                      
99 For the purpose of implementing the Agreement, an y sign, or any combination of signs, capable o 
distinguishing the products or services of one undertaking from those of other undertakings, shall be capable of 
constituting a trademarks. Sings include words, including personal names, letters, numerals, figurative elements, 
three-dimensional shapes and combination of colours as  well as any combination of sign, are eligible for 
registration as trademarks. However, each Party may require, as a condition of registration, that signs be visually 
perceptible. 
100 "Compensatory term of protection" means, for Japan an extension of a term of patent protection and, 
for Switzerland, a term specified in a supplementary protection certificate.  WT/REG273/1 
 Page 55 
 
 
  190. The protection of geographical indications  (GI) and related indications101 is covered by 
Article 119 and Annex X of the Agreement.  Each  Party shall provide for the legal means for 
interested parties to prevent the use of GIs and re lated indications which could constitute an act of 
unfair competition within the meaning of Article 10bis of the Paris Convention and/or mislead the 
public as to the geographical origin of the products and/or services.  Article 119 details the type of 
protection to be provided.  GIs for wines and spirits  are protected against any use for wines or spirits 
not originating from the place indicated by the GI in  question, subject to paragraphs 3 to 9 of the 
Article 24 of the TRIPS Agreement.  In accordance with the provision of the TRIPS Agreement, the 
Parties shall also ensure that the registration of a trademark containing or consisting of a GI, with respect to products not originating in the territory indi cated, is to be refused or invalidated ex officio if 
the legislation of the Party so permits or at the request of an interested party and 
if certain conditions 
are met, such as: (i) the use of the indication in the trademark would mislead the public as to 
the geographical origin of the product; or (ii) the use would be to identify wines or spirits not 
originating in the place indicated by the GI in question .  The protection afforded by Article 119 
also applies in cases where products originating in a Pa rty are destined for export.  Armorial bearings, 
flags and other State emblems are also protected and cannot be used or registered as trademarks or as 
elements of trademarks.  Annex X of the Agreemen t lists product designations which are protected by 
Japan or by Switzerland as GIs.  This list shall serve , without prejudice to actions or procedures by the 
relevant authorities of one Party, as a source of in formation for potential administrative or judicial 
procedures by the other Party regarding the protection provided for in Article 119.  The designations 
referred to in Annex X cover GI-rel ated products in categories for products protected by Japan such as 
spirits and sake; and for products protected by  Switzerland such as cheese, meat-based products, 
bread, pastry, cakes, confectionery, biscuits and ot her baker's wares, spirits, wines, watches and 
precision instruments, textile products, machinery, metal working industry and engineering industry, 
and chemical and pharmaceutical products. 
191. Chapter 11 contains disciplines on unfair competition  (Article 120), whereby each Party shall 
provide for effective protection against acts of unfair competition102 involving, inter alia , the use of 
name, trade name, trademarks, marks, or even containe rs or packages of products, used in relation to a 
person's business for example.  
192. A substantial part of Chapter 11 is devoted to enforcement , including counterfeiting and 
piracy.  Border measures (Article 123) include the possibility for Parties to suspend the release of 
products infringing rights at least on patents, u tility models, industrial designs or trademarks, or 
copyrights or related rights which are destined for import into, export103 from or ,where provided for 
in the national laws and regulations , transit through, the customs territory of the Party.  Seizure or 
destruction of products infringing IPRs is allowed by the Agreement, in the absence of objections and 
subject to terms and conditions contained in the Pa rties' relevant laws.  Provisions on enforcement 
through civil remedies, including where the right holder claims compensation for damages caused by 
an intentional or negligent infringement, are c ontained in Article 124, while provisions on 
enforcement through criminal remedies are contained in Article 125.  
193. To encourage Internet service providers to cooperate with right holders in protecting their 
rights against materials infringing IPRs, each Party shall provide measures to prevent undue liabilities 
of Internet service providers for the removal of materials that they have put on their websites under 
                                                      
101 "Related indications" means indications in the designation or presentation of a service that contain 
or consist of the name of a geographical place of a Party ("indications of services"), and the country name of a 
party, the name of a canton of Sw itzerland, armorial bearings, flags an d other State or regional emblems. 
102 "Unfair competition" is defined as any act of comp etition contrary to honest practices in industrial 
or commercial matters. 
103 Exportation includes re-exportation. WT/REG273/1 
Page 56  
 
  contracts with information senders where a right hol der claims that such materials infringe his/her 
IPRs (Article 126). 
194. The Parties commit to cooperate in IP, incl uding in relation to future international 
conventions on harmonization, administration an d enforcement of IPRs and on activities in 
international organisations, including the WIPO (Article 127).  The Agreement establishes a Sub-
Committee on Intellectual Property Committee to review issues related to intellectual property 
(Article 128). 
I. E
LECTRONIC COMMERCE  
195. Chapter 8 of the Agreement covers measures by a Party affecting electronic commerce, 
including for goods and services, in the context of th eir bilateral trade.  The disciplines on electronic 
commerce do not apply to government procurement, subsidies104, and taxation measures (Article 71). 
196. Subject to trade in services- and/or investment -related reservations in the negative lists, the 
Parties shall ensure non-discriminatory treat ment of digital products (Article 73).105  In the context of 
the implementation of this provision and besid es providing, upon request, an explanation of the 
criteria used in determining the origin of a digital product, the Parties shall cooperate in international 
organisations and foster the development of criteria de termining the origin of a digital product, with a 
view to considering the incorporation of such cr iteria into the Agreement.  A review of these 
provisions shall take place five years after the da te of entry into force of the Agreement, unless 
otherwise agreed.   
197. The Parties shall ensure that their m easures governing electronic commerce do not 
discriminate against the supply of services transmitte d electronically from the supply of like services 
by other means (Article 74).  Subject to trade in services- and/or investment-related reservations in the 
negative lists, the Parties may not adopt or main tain measures that unduly prohibit or restrict 
electronic commerce (Article 75).  
198. The Parties recognise the importance of mainta ining their practice of not imposing customs 
duties on electronic transmissions and agree to coope rate to make this practice binding within the 
WTO framework, with a view to consideri ng its incorporation into the Agreement. 
199. The use of electronic signature and certification services is disciplined by Article 78 and the 
importance of taking certain measures and cooperatin g for the protection of consumers for electronic 
commerce is recognised by Article 80. Paperl ess trade administration is to be fostered inter alia  
through cooperation bilaterally and in international fora (Article 79) and inter-Party cooperation will 
inter alia  identify and overcome obstacles encountered by small and medium-sized enterprises in 
using electronic commerce (Article 82).  Private sector participation is also encouraged to ensure that 
regulatory frameworks governing electronic co mmerce support industry-led development of 
electronic commerce with a view to promoting bilateral trade between the Parties (Article 81).  The provisions of the Agreement govern ing general and security exceptions are applicable also to the 
Chapter on electronic commerce. 
 
 
                                                     
 
104 As defined in the WTO Agreement on Subsidies and Countervailing Measures. 
105 In the Agreement, "digital products" means such products as computer programmes, texts, plans, 
designs, video, images and sound recordings or any combination thereof, that are digitally encoded and 
transmitted electronically and that are produced for commercial sale or distribution. "Digital products" do not 
include those that are fixed on a carrier medium  (this is subject to Chapter 2 disciplines).  WT/REG273/1 
 Page 57 
 
 
  J. OTHERS  
1. Competition 
200. Chapter 10 of the Agreement covers compe tition. Anticompetitive activities are defined by 
the Agreement as "any conduct or transaction that ma y be subject to penalties, sanctions or other 
relief under the competition laws and regula tions of either Party (Article 103)."106  The Parties shall 
take measures which they consid er appropriate against anticompet itive activities, in accordance with 
their laws and regulations, and in conformity with  the principles of transparency, non-discrimination 
and procedural fairness (Article 103) and commit to cooperate in addressing anticompetitive activities 
(Article 104).  
201. Chapter 3 of the Implementing Agreement (IA), signed on 19 February 2009, contains details 
and procedures for cooperation in relation with measures against anticompe titive activities.  The 
relevant authorities in the Parties to enforce comp etition are:  for Japan, the Fair Trade Commission; 
and for Switzerland, the Competition commission and its Secretariat.  The relevant laws are the Law 
Concerning Prohibition of Private Monopoly and Maintenance of Fair Trade (Law No. 54, 1947) and its implementing regulations as well as any amendm ents thereto in Japan; and the Federal Act on 
Cartels and Other Restraints of Competition of  6 October 1995 ("Acart") and its implementing 
regulation, as well as any amendments thereto in Switzerland.  The IA's provisions on the details and procedures of cooperation include obligations relati ng to notification of enforcement activities that 
may affect the important interests of the country of the other Party, cooperation, exchange of 
information, coordination of enforcement activities, avoidance of conflicts ove r enforcement activities, 
transparency, consultations, confidentiality of in formation and use of information for criminal 
proceedings.  If the competition authority of a Party believes that the important interests of the Party 
are adversely affected by anticompetitive activities carri ed out in the territory of the other Party, it 
may request that the competition authority of th e other Party initiate appropriate enforcement 
activities, taking into account the importance of avoi ding conflicts regarding jurisdiction and the fact 
that the competition authority of the other Part y may be in a position to conduct more effective 
enforcement activities with regard to such an ticompetitive activities (Article 14 of the IA). 
202. Nothing in Chapter 3 of the IA prevents the Parties from seeking or providing assistance to 
one another pursuant to other bila teral or multilateral agreements or arrangements, or is construed to 
prejudice the policy or legal position of either Part y regarding any issues related to jurisdiction. 
Moreover, nothing in Chapter 3 of the IA shall be construed to affect the rights and obligations of a 
country under other international agreements or arrangements or under its laws (Article 21 of 
Chapter 3 of the IA). 
203. Despite cooperation between the Parties in relation with anticompetitive activities, if a Party 
considers that there remain adverse trade effects caused by an anticompetitive activity, it may request 
the other Party to enter into cons ultations in the Joint Committee w ith a view to eliminating such 
adverse trade effects (Article 105).  The Agreement' s Dispute Settlement mech anism is not applicable 
to competition-related matters. 
2. Environment 
204. In the Preamble of the Agreement, the Parties indicate their determination "to seek to preserve 
and protect the environment, to promote the optimal  use of natural resources in accordance with the 
                                                     
 
106 In particular, it includes: (a) private monopolisation,  unreasonable restraint of trade and unfair trade 
practices under the competition laws and regulations of Ja pan; and (b) unlawful agreements between enterprises 
and unlawful practices of enterprises having a dominan t position under the competition laws and regulations of 
Switzerland. WT/REG273/1 
Page 58  
 
  objective of sustainable development and to adequa tely address the challenges of climate change". 
Article 9 addresses, in a best endeavour manner, th e promotion of trade in environmental products and 
environment-related services and foresees that this objective be periodically reviewed by the Joint 
Committee. In Article 101, the Parties confirm that encouraging investment activities by relaxing 
environmental measures is inappropriate. 
3. Promotion of a Closer Economic Relationship 
205. Chapter 13 of the Agreement contains provisi ons related to the promotion of a closer 
economic relationship between Japan  and Switzerland.  Under the Jo int Committee, a Sub-Committee 
on Promotion of a Closer Economic Relationship is established to di scuss ways and means to promote 
a closer economic relationship between the Parties.  The functions of the Sub-Committee also include 
a discussion of the possibilities to further remove obstacles to trade and investment between the 
Parties and to facilitate business activities in the Pa rties, as well as to cooperate at government and 
business sector levels in bilateral trade and invest ment promotion activities.  The Sub-Committee is 
also mandated to make recommendation to the Join t Committee on appropriate measures to be taken 
by the Parties.  The Agreement's Dispute Settle ment mechanism does not apply to Chapter 13. 
K. R
ELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
206. The Parties affirm their existing rights and obligations with respect to each other under the 
WTO Agreement and other agreements to which th ey are both party.  In the event of any 
inconsistency between the provisions of the Agreem ent and the provisions of the WTO Agreement or 
other agreement to which both Parties are party, the Parties shall immediately consult with a view to 
finding a mutually satisfactory solution, taking into consideration general principles of international 
law (Article 7). 
207. While the Agreement does not prevent the main tenance or establishment of customs unions, 
free trade areas, frontier trade and other preferential arrangements107, information is required if a Party 
establishes a customs union with a non-party.  Consultations may follow (Article 8). 
208. The following Table lists all other regional trad e agreements (RTAs) notified and not notified 
to the GATT/WTO and in force to which Japan and Switzerland are party.  
                                                      
107 To the extent they do not adversely affect the ri ghts and obligations provid ed for by the Agreement.  WT/REG273/1 
 Page 59 
 
 
  Table V.3 
Japan and Switzerland:  Participation in other RTAs (notified and non-notified in force), as of July 2010 
GATT/WTO Notification Partner/ 
Agreement Date of entry into 
force Type of 
agreement Year WTO Provision 
JAPAN  
Viet Nam 01.10.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Philippines 11.12.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
ASEAN 01.12.08 Goods 2009 GATT Art. XXIV 
Brunei Darussalam 31.07.08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V 
Indonesia 01.07.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Thailand 01.11.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Chile 03.09.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Malaysia 13.07.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Mexico 01.04.05 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Singapore 30.11.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
SWITZERLAND  
Faroe Islands 01.03.95 Goods 1996 GATT Art. XXIV 
European Communities 01.01.73 Goods 1972 GATT Art. XXIV 
EFTA Agreements :     
EFTA (Stockholm Convention) 03.05.60 Goods 1959 GATT Art. XXIV 
EFTA (Services) 01.06.02 Services 2002 GATS Art. V 
EFTA – Accession of Iceland 01.03.70 Goods 1970 GATT Art. XXIV 
Canada 01.07.09 Goods 2009 GATT Art. XXIV 
SACU 01.05.08 Goods 2008 GATT Art. XXIV 
Egypt 01.08.07 Goods 2007 GATT Art. XXIV 
Lebanon 01.01.07 Goods 2006 GATT Art. XXIV 
Republic of Korea 01.09.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Tunisia 01.06.05 Goods 2005 GATT Art. XXIV 
Chile 01.12.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Singapore 01.01.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Jordan 01.01.02 Goods 2002 GATT Art. XXIV 
Croatia 01.01.02 Goods 2002 GATT Art. XXIV 
Mexico 01.07.01 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
FYROM 01.01.01 Goods 2000 GATT Art. XXIV 
Morocco 01.12.99 Goods 2000 GATT Art. XXIV 
Palestinian Authority 01.07.99 Goods 1999 GATT Art. XXIV 
Israel 01.01.93 Goods 1992 GATT Art. XXIV 
Turkey 01.04.92 Goods 1992 GATT Art. XXIV 
 
Source: WTO Secretariat. 
 
ASEAN: Association of Southeast Asian Nations 
EFTA: European Free Trade Association 
FYROM: Former Yugoslav Republic of Macedonia 
 WT/REG273/1 
Page 60  
 
  ANNEX I 
 
Indicators of Trade Liberalization under the Agreement
 
  
Japan's Market
 
 1. Annex Table AI.1 provides for a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs applied to Japan's imports of merchandise from 
Switzerland and the MFN rates applied by Japan at  the entry into force of the Agreement.  
Table AI.1 
Japan: Indicators of MFN tariff rates and pr eferential rates for imports from Switzerland 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2009 4.8 8.3 41.4 11.2 15.8 25.5 3.4 6.2 45.3 
Switzerland 2009 2.4 14.3 81.5 10.0 18.2 40.0 0.7 8.6 91.7 
 2010 2.3 13.8 81.5 9.7 17.7 40.0 0.7 8.2 91.7 
 2011 2.2 13.4 81.5 9.5 17.2 40.0 0.6 7.9 91.7 
 2012 2.1 12.9 81.6 9.2 16.7 40.1 0.6 7.5 91.7 
 2013 2.1 12.5 81.6 8.9 16.2 40.1 0.6 7.1 91.7 
 2014 2.0 12.5 82.3 8.6 16.0 41.1 0.6 7.1 92.2 
 2015 1.9 12.0 82.3 8.4 15.6 41.1 0.5 6.8 92.2 
 2016 1.8 12.1 82.9 8.1 15.7 43.0 0.5 6.7 92.5 
 2017 1.8 11.7 82.9 7.9 15.3 43.0 0.5 6.3 92.5 
 2018 1.7 11.3 82.9 7.7 14.8 43.1 0.5 6.0 92.5 
 2019 1.7 15.7 87.6 7.4 19.6 55.7 0.4 8.9 95.2 
 2020 1.6 15.5 87.6 7.3 19.4 55.7 0.4 8.9 95.2 
 2021 1.6 15.4 87.6 7.2 19.2 55.9 0.4 8.9 95.2 
 2022 1.6 15.2 87.6 7.1 18.9 55.9 0.4 8.9 95.2 
 2023 1.6 15.1 87.6 7.0 18.7 55.9 0.4 8.9 95.2 
 2024 1.6 16.9 88.8 6.9 22.6 62.0 0.4 9.0 95.2 
 a WTO Definition. 
Note: Tariff lines subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates a re excluded 
and the ad valorem  part of alternate rates are included. 
 Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Japan. 
 
2. Japan's average applied MFN rate in 2009 was 4.8%.  Tariffs on agricultural products at 
11.2% were substantially higher than those for non-agricultural products at 3.4%.  MFN duty-free 
tariff lines accounted for 41.4% of all tariff lines.  As a result of the Agreement, at the date of entry 
into force of the Agreement (1.9.2009), Swiss exporte rs enjoyed an absolute margin of preference of 
2.1% vis-à-vis  the prevailing MFN tariff, 1.2% for agri cultural goods and 2.7% for non-agricultural 
products.  The share of duty free lines applicable to imports from Switzerland also rose, from 41.4% 
to 81.5%.  Following ten years of implementation, 87.6% of all tariffs are to become duty free for imports from Switzerland, of which 95.2% for non -agricultural goods and 55.7% for agricultural 
products.  At the end of the implementation period  in 2024, Swiss exporters will face zero duties on 
88.8% of their exports to Japan;  however, while 95.2% of non-agricultural exports will be duty free, 
62% of tariffs on non-agricultura l products will be eliminated. 
3. One of the objectives of the Agreement is  to increase access opportunities for Swiss 
merchandise to the Japanese market.  Annex Table AI .2 gives an indication of additional market 
access resulting from the entry into force of the Agreement for Switzerland's top 25 global exports.    WT/REG273/1 
 Page 61 
 
 
  Table AI.2 – Japan: Market access opportunities und er the agreement for Switzerland's top 25 exports 
Access Conditions to Japan's import markets  
MFN (2009)  Switzerland's top export products in 2006-2008  
No. of tariff lines  Duty-free 
in 
HS number and description of the product  Share in 
global 
exports MFN 
average  Duty-free Dutiable 
2009 
2014 
2019 
300490 - Medicaments (excluding goods of heading 3002, 
3005, 3006, 300410-300450) consisting of mixed 
or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in 
the form of transdermal administration systems) / 
in forms or packing for retail sale 10.5 0.0 4     
300210 - Antisera and other blood fractions and modified 
immunological products, wh ether or not obtained 
by means of biotechnological processes 5.8 0.0 5     
910221 -- With automatic winding 2.7 0.0 1     
711319 -- Of other precious metal,  whether or not plated or 
clad with precious metal 2.2 5.3  3  2 1 
910211 -- With mechanical display only 1.7 0.0 1     
910121 -- With automatic winding 1.5 0.0 1     
293399 -- Other 1.5 3.2  2 2   
711011 -- Unwrought or in powder form 1.2 0.0 1     
300420 - Containing other antibiotics 1.0 0.0 1     
841199 -- Parts of the other gas turbines of HS subheadings 
841181 and 841182 1.0 0.0 2     
292429 -- Cyclic amides (including cyclic carbamates) and 
their derivatives (excluding HS subheadings 292421 to 292424) ; salts thereof 0.9 3.1  1 1   
294190 - Antibiotics and their derivatives (excluding HS 
subheadings 294110 to 294150); salts thereof 0.9 0.0 1     
710239 -- Diamonds, non-industrial other than unworked or 
simply sawn or cleaved or bruted 0.9 0.0 1     
300439 -- Medicaments contai ning hormones or other 
products of HS headi ng 2937 but not containing 
antibiotics, put up in measured doses or forms or packing for retail sale 0.8 0.0 1     
293719 -- Polypeptide hormones, protein hormones and 
glycoprotein hormones, their derivatives and 
structural analogues (excluding HS subheadings 
293711 and 293712) 0.8 0.0 1     
902110 - Orthopaedic or fracture appliances 0.7 0.0 1     
293499 -- Nucleic acids and their salts, whether or not 
chemically defined, n.e. s.; other heterocyclic 
compounds, n.e.s. 0.7 1.6 1 1 1   
880230 - Aeroplanes and other aircraft, of an unladen 
weight exceeding 2,000 kg but not exceeding 
15,000 kg 0.6 0.0 1     
902150 - Pacemakers for stimulating heart muscles, 
excluding parts and accessories 0.6 0.0 1     
970110 - Paintings, drawings and pastels 0.6 0.0 1     
847989 -- Other machines and mechanical appliances, other 
than machines and mechanical appliances for treating metal, including electric-wire coil-winders/ 
mixing/ kneading/ crushing/  grinding/ screening/ 
sifting/ homogenising/ emulsifying/ stirring 
machines 0.6 0.0 1     
910111 -- With mechanical display only 0.6 0.0 1     
330290 - Mixtures of odoriferous substance & mixtures, 
incl. alcoholic solutions, with a basis of one/more of these substance, of a kind used as raw materials 
in industry other than food/drink industries 0.6 0.0 1     
910129 -- Wrist-watches other than electrically operated, 
whether/not incorporati ng a stop-watch facility 
(excluding with auto. winding), with case of 
precious metal or metal clad with precious metal 0.5 0.0 1     
901890 - Other instruments and appliances 0.5 0.0 6     
Total of above  39.5  35 7 4 2 1 
Source:  WTO estimates based on data provided by Japan and UNSD Comtrade database. WT/REG273/1 
Page 62  
 
  4. Switzerland's top 25 exports accounted for 39.5% of its global exports in 2008;  these 
corresponded to 42 tariff lines at the tariff line level.  Before the entry into force of the Agreement, 
35 of these lines which represented 38.4% of Switzer land's global exports, had duty free access to the 
Japanese market.  At the entry into force of the Agreement, an additional 4 lines became duty free;   
two additional lines will become duty free in 2014 a nd, after 10 years of implementation (in 2019), 
none of these tariff lines will remain dutiable.   
Switzerland's Market
 
 5. Annex Table AI.3 provides for a comparison between preferential tariff rates as part of the 
scheduled programme of elimination of tariffs a pplied to Switzerland's imports of merchandises from 
Japan and the MFN rates applied by Switzerland at  the entry into force of the Agreement.  
Table AI.3 
Switzerland: Indicators of MFN tariff rates and preferential rates for imports from Japan 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-
free 
tariff 
lines (%) 
MFN 2009 7.4 9.0 17.6 26.3 32.9 17.2 2.0 2.5 17.5 
Japan 2009 5.2 44.4 83.2 25.8 44.5 32.3 0.0 1.9 99.9 
 
a WTO Definition.  
Note: Tariff lines subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates a re excluded 
and the ad valorem  equivalents (AVEs) are included. 
  
 AVEs are calculated as the ratio of specific duties to import unit values, which in turn are estimated by the ratio of import values 
to import quantities/volumes in 2008 ( at the HS 8-digit level).  If no import data were available in 2008, 2007 data were used . 
 
 Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Switzerland and WTO-IDB. 
 
6. Switzerland's average applied MFN rate in 2009 was 7.4%.  Tariffs on agricultural products at 
26.3% are substantially higher than those for non-agricultural products at 2%.  MFN duty-free tariff 
lines accounted for 17.6% of all tariff lines.  At the date of entry into force of the Agreement (1.9.2009), when Switzerland completed implem entation of its tariff commitments under the 
Agreement, Japanese exporters enjoyed an ab solute margin of preference of 2.2% vis-à-vis  the 
prevailing MFN tariff, 0.5% for agricultural goods and 2% for non-agricultural products.  The share 
of duty free lines applicable to imports from Japan also rose from 17.6% to 83.2%, of which 99.9% 
for non-agricultural goods and 32.3% for agricultural products.  
7. One of the objectives of the Agreement is  to increase access opportunities for Japanese 
merchandise to the Swiss market.  Annex Table AI.4  gives an indication of additional market access 
resulting from the entry into force of the Agreement for Japan's top 25 global exports.    WT/REG273/1 
 Page 63 
 
 
  Table AI.4 – Switzerland:  Market a ccess opportunities under the agreement fo r Japan's top 25 exports to the world 
Access Conditions to Switzerland's import 
markets  Japan's top export products in 2006-2008  
MFN (2009)  
No. of tariff lines 
HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) Duty-
free Dutiable Duty-
free in 
2009 
870323 -- Of a cylinder capacity exceeding 1,500 cc but not exceeding 
3,000 cc 6.5 0.7  3 3 
870324 -- Of a cylinder capacity exceeding 3,000 cc 4.4 0.3  2 2 
870322 -- Of a cylinder capacity exceeding 1,000 cc but not exceeding 
1,500 cc 2.1 0.8  1 1 
852580 - Television cameras, digital cameras and video camera   
recorders 1.7 0.1  1 1 1 
854239 -- Other Electronic integrated ci rcuits, other than Amplifiers or 
Memories or Processors and controllers 1.5 0.0 1   
870840 - Gear boxes and parts thereof 1.5 1.2  3 3 
852990 - Other parts suitable for us e solely/principally with the 
apparatus of headings 85.25 to 85.28., other than aerials and 
aerial reflectors of all kinds 1.4 0.2 1 1 1 
890190 - Other vessels for the transport of goods and other vessels for 
the transport of both persons and goods 1.4 0.8  1 1 
271019 -- Petroleum oils & oils obtained from bituminous minerals 
(other than crude) & preparations not elsewhere specified/including, containing by weight 70 %/more of 
petroleum oils/of oils obtained from bituminous minerals, 
these oils being the basic cons tituents of the preparations, 
other than waste oils and light oils and preparations 1.3 0.0 9   
844399 -- Other parts and accessories for printing machinery 
excluding HS subheading  844391 1.3 0.0 1   
854231 -- Processors and controllers, whether or not combined with 
memories, converters, logic circuits, amplifiers, clock and 
timing circuits, or other circuits 1.1 0.0 1   
847989 -- Other machines and mechanical appliances, other than 
machines and mechanical app liances for treating metal, 
including electric wire coil-winders, mixing, kneading, 
crushing, grinding, screeni ng/, sifting, homogenising, 
emulsifying, stirring machines 1.1 0.2  2 2 
842952 -- Machinery with a 360° revolving superstructure 1.1 0.0 2   
854232 -- Memories 1.0 0.0 1   
870899 -- Other parts & accessories for the motor vehicles of HS 
headings 8701-8705, excluding HS subheadings 870891, 
870892, 870893, 870894 and 870895. 1.0 1.4  4 4 
847330 - Parts and accessories of the machines of heading 84.71 1.0 0.0 1   
870332 -- Of a cylinder capacity exceeding 1,500 cc but not exceeding 
2,500 cc 0.9 0.8  3 3 
848620 - Machines and apparatus for the manufacture of 
semiconductor devices or of el ectronic integrated circuits 0.8 0.0 1   
890120 - Tankers 0.8 6.3 par 
100 kg 
brut  1 1 
854140 - Photosensitive semiconductor devices, including 
photovoltaic cells whether or not assembled in modules or 
made up into panels; light emitting diodes 0.8 0.0 1   
840991 -- Suitable for use solely or principally with spark-ignition 
internal combustion piston engines 0.7 0.9  5 5 
381800 Chemical elements doped for use in electronics, in the form of 
discs, wafers or similar forms; chemical compounds doped for 
use in electronics. 0.7 0.0 1   
870422 -- Motor vehicles for the transport of goods (excluding HS 
subheading 870410), with C-I internal combustion piston 
engine (diesel/semi-diesel), g. v.w. exceeding 5 tonnes but not 
exceeding 20 tonnes 0.7 4.0  1 1 WT/REG273/1 
Page 64  
 
  Access Conditions to Switzerland's import 
markets  Japan's top export products in 2006-2008  
MFN (2009)  
No. of tariff lines 
HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) Duty-
free Dutiable Duty-
free in 
2009 
870333 --Vehicles principally designed for the transport of persons 
(excluding HS headings 8702 & 870310-870324), with C-I 
internal combustion piston engine (diesel or semi-diesel), of a 
cylinder capacity exceeding 2500cc 0.6 0.6  2 2 
853690 -- Electrical apparatus for switching/protecting electrical 
circuits, or for making connections to/in electrical circuits, n.e.s. in 85.36, for a vo ltage not exceeding 1000V 0.5 0.8 1 4 4 
Total of above 35.7 22 34 34 
 
Note:   For the calcula tion of averages, the ad valorem  equivalents (AVEs) are included. 
 AVEs are calculated as the ratio of specific duties to import un it values, estimated by the ratio of import values to import 
quantities/volumes in 2008 ( at the HS 8-digit level).  If no import data were available in 2008, 2007 data were used. 
 
Source :  WTO estimates based on data provided by Sw itzerland, WTO-IDB and UNSD, Comtrade data. 
 
8. Japan's top 25 exports accounted for 35.7% of its global exports in 2009;  these corresponded 
to 56 tariff lines at the tariff line level.  Before th e entry into force of the Agreement, 22 of these tariff 
lines representing 10.6% of Japan's global exports, had duty free access to Sw itzerland's market.  At 
the entry into force of the Agreement, an add itional 34 of these 56 tariff lines became duty free, 
leaving therefore no remaining dutiable tariff lines.   WT/REG273/1 
 Page 65 
 
 
  ANNEX II 
 
Part A  
Summary of TRQ commitments undertaken by Japan  
 
 
Table AII.1 
Summary of Category "Q" (Japan)  
Tariff Rate Quotas opened by Japan for products from Switzerland  
Goods (HS) Tariff 
Classification  Annual quota quantity Note 
Bovine meat 0210.20 (Qa) in quota rate: 80.75 yen/kg.  
- aggregate quota quantities: 
• 2.0 metric tonnes (year 1) 
• 3.6 metric tonnes (year 2) 
• 5.2 metric tonnes (year 3) 
• 6.8 metric tonnes (year 4) 
• 8.4 metric tonnes (year 5) 
• 10.0 metric tonnes (year 6 
and subsequent years) Where the first year is less than  twelve months, the aggregate 
quota quantity for the first year shal l be reduced to a part of the 
aggregate quota quantity that is proportional to the number of 
complete months remaining in the first year. "Year" means, with 
respect to the first year, the period from the date of entry into force 
of the Agreement until the coming 31 March and, with respect to each subsequent year, the twelve -month period which starts on 1 
April of that year. 
Note : the tariff rate quota shall be implemented through a 
certificate of tariff rate quota issu ed by the importing Party on the 
basis of the certificate issued by the exporting Party for each 
export.  The TRQ shall be administered by the importing Party, 
and the aggregate quota quantity shall be allocated by the importing Party. 
Natural Cheese 0406.90 (Qb) -  in quota rate: reduced in 6 
equal annual instalments 
from 29.8% to 14.9%.  
- aggregate quota quantities: 
• 600 metric tonnes (year 1) 
• 640 metric tonnes (year 2) 
• 680 metric tonnes (year 3) 
• 720 metric tonnes (year 4) 
• 760 metric tonnes (year 5) 
• 800 metric tonnes (year 6) 
• 840 metric tonnes (year 7) 
• 880 metric tonnes (year 8) 
• 920 metric tonnes (year 9) 
• 960 metric tonnes (year 
10) 
• 1,000 metric tonnes (year 
11 and subsequent years)  
Attachment 1 of Annex I, Appe ndix 1, contains a list and a 
description of 13 "Natural cheeses " eligible for access to the TRQ.  
The product shall be accompanied by  a declaration required for the 
preferential tariff treatment.  Necessary procedures for the 
declaration are provided for in Attachment 2. Where the first year is less than  twelve months, the aggregate 
quota quantity for the first year sha ll be reduced to a part of the 
aggregate quota quantity that is proportional to the number of 
complete months remaining in the first year. "Year" means, with respect to the first year, the period from the date of entry into force 
of the Agreement until the coming 31 March and, with respect to 
each subsequent year, the twelve -month period which starts on 1 
April of that year. 
Note : the tariff rate quota shall be implemented through a 
certificate of tariff rate quota issued by the importing Party.  The TRQ shall be administered by the importing Party, and the 
aggregate quota quantity shall be allocated by the importing Party. 
Part of Sugar 
confectionery  1704.90 (Qc) -  in quota rate: 20%. 
- aggregate quota quantity: 
100 metric tonnes annually the TRQ shall be implemented through a certificate of tariff rate 
quota issued by the importing Party.  The TRQ shall be 
administered by the importing Party, and the aggregate quota quantity shall be allocated by the importing Party. 
Part of 
Chocolate and 
other food 
containing 
added sugar or 
other 
sweetening 
matter 1806.20 (Qd) 
1806.31 (Qe) 
1806.32 (Qe) 
1806.90 (Qe) (Qd) 
- in quota rate: free 
aggregate quota quantity: 5 
metric tons for each year. 
(Qe) 
- in quota rate: 8% 
aggregate quota quantity: 1,500 metric tons for each year the TRQ shall be implemented through a certificate of tariff rate 
quota issued by the importing Party.  The TRQ shall be 
administered by the importing Party, and the aggregate quota 
quantity shall be allocated by the importing Party. 
Part of Food 
preparations 
not elsewhere 
specified or 
includeda 2106.90 (Qf) -  in quota rate: 21% 
aggregate quota quantity: 23 
metric tonnes annually. 
 The product shall be accompanied by  a declaration required for the 
preferential tariff treatment.  Necessary procedures for the 
declaration are provided for in Attachment 2. 
 the TRQ shall be implemented through a certificate of tariff rate quota issued by the importing Party.  The TRQ shall be 
administered by the importing Party, and the aggregate quota 
quantity shall be allocated by the importing Party. 
 
a Preparation made from cheese, wine and ot her ingredients such as spirits, salt, star ch (maximum 3% by weight), spices, not le ss 
than 50% of which is cheese by weight, not less than 20% of which is alcoholic beverages by weight  and put up in containers for  
retail sale by weight of 0.9kg or less each including container for retail sale. 
 
Source:  Annex I, Appendix 1 of the Agreement (Schedule of Japan). WT/REG273/1 
Page 66  
 
  Part B
 
Summary of TRQ commitments undertaken by Switzerland1 
  
Table AII.2 
Summary of WTO-related TRQs referred to in Switzerland Sc hedule of tariff concessions (product description column) 
WTO TRQ 
No. Goods (HS) Tariff 
Classification  MFN in quota rate 
WTO Commitment  
(LIX Section I-B) Preferential in quota rate 
RTA with Japan  
Agreement Annex I – Appendix 2 
01011011 120 par pièce 0 1 Chevaux, ânes, 
mulets et bardots, vivants 01019095 (a) 120 par pièce 0 
2 Animaux vivants de 
l'espèce bovine 01029091 60 par pièce 0  
01041010 5 par pièce 0  
01041020 (a) 25 par pièce 20 par pièce 4 Animaux vivants 
des espèces ovine 
ou caprine 01042010 3 par pièce  
01042020 43 par pièce 40 par pièce 
02011011 94 par 100 kg brut 85 par 100 kg brut 
02011091 69 par 100 kg brut 60 par 100 kg brut 
02012011 109 par 100 kg brut 100 par 100 kg brut 
02012091 159 par 100 kg brut 150 par 100 kg brut 
02013011 109 par 100 kg brut 100 par 100 kg brut 
02013091 159 par 100 kg brut 150 par 100 kg brut 
02021011 94 par 100 kg brut 85 par 100 kg brut 
02021091 69 par 100 kg brut 60 par 100 kg brut 
02022011 109 par 100 kg brut 100 par 100 kg brut 
02022091 159 par 100 kg brut 150 par 100 kg brut 
02023011 109 par 100 kg brut 100 par 100 kg brut 
02023091 109 par 100 kg brut 100 par 100 kg brut 
02041010 30 par 100 kg brut 20 par 100 kg brut 
02042110 30 par 100 kg brut 20 par 100 kg brut 
02042210 30 par 100 kg brut 20 par 100 kg brut 
02042310 30 par 100 kg brut 20 par 100 kg brut 
02043010 30 par 100 kg brut 20 par 100 kg brut 
02044110 30 par 100 kg brut 20 par 100 kg brut 
02044210 30 par 100 kg brut 20 par 100 kg brut 
02044310 30 par 100 kg brut 20 par 100 kg brut 
02045010 49 par 100 kg brut 40 par 100 kg brut 
02050010 20 par 100 kg brut 11 par 100 kg brut 
02068010 49 par 100 kg brut 40 par 100 kg brut 5 Animaux pour la 
boucherie; viande 
essentiellement 
produites sur la base de fourrages 
grossiers 
02069010 50 par 100 kg brut 40 par 100 kg brut 
02072410 30 par 100 kg brut 24 par 100 kg brut 
02072510 30 par 100 kg brut 24 par 100 kg brut 
02072781 30 par 100 kg brut 15 par 100 kg brut 
02072791 30 par 100 kg brut 0 
02073211 30 par 100 kg brut 24 par 100 kg brut 
02073291 30 par 100 kg brut 24 par 100 kg brut 
02073311 30 par 100 kg brut 15 par 100 kg brut 6 Animaux pour la 
boucherie; viandes 
essentiellement produites sur la 
base de fourrages 
concentrés 
02073691 30 par 100 kg brut 15 par 100 kg brut 
12 Sperme de taureaux 05111010 0. 1 par unité d'application 0  
06031110 (a) 12.5 par 100 kg brut 0  
06031210 (a) 25 par 100 kg brut 0  
06031310 (a) 25 par 100 kg brut 20 par 100 kg brut 
06031410 (a) 25 par 100 kg brut 20 par 100 kg brut 
06031911 (a) 25 par 100 kg brut 20 par 100 kg brut 13  Fleurs coupées 
06031919 (a) 25 par 100 kg brut 20 par 100 kg brut 
                                                      
1 As the WTO Schedule of Tariff concessions from Switzerland and Liechtenstein (LIX) is only 
available in French, we reproduce the description of the goods as well as of the in-quota quantities in this 
language.  WT/REG273/1 
 Page 67 
 
 
  WTO TRQ 
No. Goods (HS) Tariff 
Classification  MFN in quota rate 
WTO Commitment  
(LIX Section I-B) Preferential in quota rate 
RTA with Japan  
Agreement Annex I – Appendix 2 
14 Pommes de terre de 
semence et de table; produis de pommes 
de terre (en 
équivalent de pommes de terre) 07011010 1.4 par 100 kg brut 0
 
15 Légumes 07031013 0.2 par 100 kg brut 0  
  07031021 2.9 par 100 kg brut 0  
  07031031 2.9 par 100 kg brut 0  
  07031041 2.9 par 100 kg brut 0  
  07031051 2.9 par 100 kg brut 0  
  07031061 2.9 par 100 kg brut 0  
  07031071 2.9 par 100 kg brut 0  
  07039011 10 par 100 kg brut 5 par 100 kg brut 
  07039021 10 par 100 kg brut 5 par 100 kg brut 
  07041011 7 par 100 kg brut 0  
  07041021 7 par 100 kg brut 0  
  07041091 7 par 100 kg brut 0  
  07042011 10 par 100 kg brut 5 par 100 kg brut 
  07049018 3 par 100 kg brut 0  
  07049021 3 par 100 kg brut 0  
  07049031 3 par 100 kg brut 0  
  07049041 3 par 100 kg brut 0  
  07049051 10 par 100 kg brut 0  
  07049061 10 par 100 kg brut 5 par 100 kg brut 
  07049064 10 par 100 kg brut 5 par 100 kg brut 
  07049071 10 par 100 kg brut 5 par 100 kg brut 
  07049081 10 par 100 kg brut 5 par 100 kg brut 
  07051118 7 par 100 kg brut 3.5 par 100 kg brut 
  07051121 7 par 100 kg brut 3.5 par 100 kg brut 
  07051198 10 par 100 kg brut 5 par 100 kg brut 
  07051911 10 par 100 kg brut 5 par 100 kg brut 
  07051921 10 par 100 kg brut 5 par 100 kg brut 
  07051931 10 par 100 kg brut 5 par 100 kg brut 
  07051941 10 par 100 kg brut 5 par 100 kg brut 
  07051951 10 par 100 kg brut 5 par 100 kg brut 
  07051991 10 par 100 kg brut 5 par 100 kg brut 
  07052111 7 par 100 kg brut 3.5 par 100 kg brut 
  07061011 4 par 100 kg brut 2 par 100 kg brut 
  07061021 4 par 100 kg brut 2 par 100 kg brut 
  07061031 4 par 100 kg brut 2 par 100 kg brut 
  07069018 4 par 100 kg brut 2 par 100 kg brut 
  07069028 7 par 100 kg brut 3.5 par 100 kg brut 
  07069031 10 par 100 kg brut 5 par 100 kg brut 
  07069041 10 par 100 kg brut 5 par 100 kg brut 
  07069051 10 par 100 kg brut 5 par 100 kg brut 
  07069061 10 par 100 kg brut 5 par 100 kg brut 
  07070011 10 par 100 kg brut 5 par 100 kg brut 
  07070021 10 par 100 kg brut 5 par 100 kg brut 
  07070031 10 par 100 kg brut 5 par 100 kg brut 
  07070041 10 par 100 kg brut 5 par 100 kg brut 
  07081011 10 par 100 kg brut 5 par 100 kg brut 
  07081021 10 par 100 kg brut 5 par 100 kg brut 
  07082028 10 par 100 kg brut 0  
  07082038 10 par 100 kg brut 0  
  07082048 10 par 100 kg brut 0  
  07082098 10 par 100 kg brut 0  
  07089081 10 par 100 kg brut 5 par 100 kg brut 
  07094011 10 par 100 kg brut 5 par 100 kg brut 
  07094021 10 par 100 kg brut 5 par 100 kg brut 
  07094091 10 par 100 kg brut 5 par 100 kg brut 
  07097011 10 par 100 kg brut 5 par 100 kg brut 
  07099041 10 par 100 kg brut 5 par 100 kg brut 
  07099051 10 par 100 kg brut 5 par 100 kg brut 
  07099084 (a) 10 par 100 kg brut 5 par 100 kg brut WT/REG273/1 
Page 68  
 
  WTO TRQ 
No. Goods (HS) Tariff 
Classification  MFN in quota rate 
WTO Commitment  
(LIX Section I-B) Preferential in quota rate 
RTA with Japan  
Agreement Annex I – Appendix 2 
08081022 2 par 100 kg brut 0  
08081032 5 par 100 kg brut 0  
08082022  2 par 100 kg brut 0  17 Pommes noires et 
coings frais 
08082032 5 par 100 kg brut 0  
08091018 3 par 100 kg brut 0  
08091098 5 par 100 kg brut 0  
08092011 3 par 100 kg brut 0  
08094013 3 par 100 kg brut 0  18 Abricots, cerises, 
prunes et prunelles 
frais 
08094093 10 par 100 kg brut 0  
08101011 3 par 100 kg brut 0  
08102011 5 par 100 kg brut 0  19 Autres fruits frais 
08102021 5 par 100 kg brut 0  
20 Fruits pour la 
cidrerie et la distillation ex08082011 2 par 100 kg brut 0 
35011010 4 par 100 kg brut 0  8 Caséines 
35019011 (a) 4 par 100 kg brut 0  
 
(a): Tariff line not contained in List LIX (Custo ms Union Switzerland-Liechtenstein), Section I-B. 
 
Source: Annex I, Appendix 2 of the Agreement (Schedule of Switzerland) complemented by information received from 
Switzerland.  
 
9. In addition, for three products (table grap es, peaches, and nectarines), Switzerland opened a 
specific bilateral TRQ, through which customs duties are eliminated "within the limits of a tariff quota 
of 50 tons/year" only for "gift fruits".  These a dditional, bilateral, TRQs can be summarized as 
follows: 
Table AII.3 
Summary of Specific bilateral TRQs referred to in Swit zerland Schedule of tariff  concessions (column 6) 
TRQ No. 
Goods (HS) Tariff 
Classification  Annual Preferential 
quota quantity for 
Japan Preferential in quota 
rate 
RTA with Japan Note  
Table 
grapes  ex0806.1011 50 tons/year 0 Seasonal TRQ (from July 15 to 
September 15) 
Table 
grapes  ex0806.1011 50 tons/year 0  Seasonal TRQ (from September 
16 to July 14) 
Peaches ex0809.3010 50 tons/year 0   Special 
TRQ 
mentioned 
in column 6 
of the 
Schedule 
Nectarines ex0809.3020 50 tons/year 0   
 
Source: Annex I, Appendix 2 of the Agreement (Schedule of Switzerland) complemented by information received from 
Switzerland.  
 
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