RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/211 
14 January 2009  
 
(09-0036) 
Trade Policy Review Body Original: English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
JAPAN 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Japan is attached. 
 
 
Note: This report is subject to restricted ci rculation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Japan. Japan WT/TPR/G/211 
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CONTENTS 
    Page 
 
1. Overview of Japan’s Economic Relationships 5 
 (1) The Multilateral Trade System 5  (2) Regional and Bilateral Trade Policy 5 
 
2. Trade and Economic Policy Environment 5 
 (1) Japan's Economic Environment 5 
 (2) Trends in Foreign Trade 6 
 (3) Trends in Foreign Direct Investment 7 
 
3. Japan in the Doha  Development Agenda 8 
 (1) Agriculture 8 
 (2) NAMA   8 
 (3) Services  8 
 (4) Rules  9 
 (5) TRIPS  9 
 (6) Environment 9 
 (7) Trade Facilitation 9 
 (8) DSU  10 
 (9) Development 10  
4. Japan's Multilateral Activities 10 
 (1) Strengthening global food security 10  (2) OECD  11 
 (3) Generalized System of Preferences (GSP) 11 
 5. Japan's Regional Activities 11 
 (1) ASEAN+3 12 
 (2) Japan, China, Korea 12 
 (3) East Asia Summit 13 
 (4) Asia-Pacific Economic Cooperation (APEC)  13  (5) Asia-Europe Meeting (ASEM) 13 
 
6. Japan's Bilateral Activities 14 
 (1) FTA/EPAs  14 
(2) Japan's Bilateral Activities outside of FTAs 15 
 7. Japan's Trade-Related A ssistance Schemes – TRTA  18 
 (1) Development Initiative for Trade 18 
 (2) Assistance to the One Village, One Product Movement  19  
8. Japan's Domestic Policies 19 
 (1) Regulatory Reform 19  (2) Intellectual Property Rights  20 
 (3) Financial Reform 20 
 (4) Agricultural Reform 21  (5) Competition Policy 21 Japan WT/TPR/G/211 
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 1. Overview of Japan's Economic Relationships 
1. Since the last trade policy review of Japan  took place in 2007, Japan has taken various 
measures to promote international liberalization of trade.  While Japan places the highest priority on 
the multilateral trading system as the centrepiece of its trade policy, positive steps have been taken for 
the negotiations of bilateral ec onomic partnership agreements.  
(1) The Multilateral Trade System 2. As one of the largest trading economies in the world, and as a firm supporter of the free trade 
system for the growth for the world economy and the benefit of developing coun tries, Japan maintains 
its strong support of the non-discriminatory and rule-based multilateral trading system under the 
WTO.  Japan has made efforts to lower trade barriers under that system, which has led to the 
expansion of world trade and has created opportu nities for all countries to enjoy the fruits of 
international trade.  
3. Japan considers it regrettable that agreem ent on the modalities was not achieved despite 
serious efforts made by the Ministers at the WTO Ministerial Meeting in July 2008 in the course of negotiations of the Doha Round.  Japan continues to  examine seriously, together with other member 
countries, how to proceed with future negotiations on the basis of the progress made during past 
negotiations. 
4. At a time when there are va rious causes for concern in the outlook of the world economy, 
Japan, as the chair of the 2008 G8 Summit, has undertaken its foreign and domestic economic policies, in cooperation with other countries, b ased on the agreement reached at the G8 Hokkaido 
Toyako Summit.  In particular, Japan will make pe rsistent efforts towards a successful and early 
conclusion of WTO negotiations which will cont ribute to the sound development of the global 
economy. 
(2) Regional and Bilateral Trade Policy 5. Japan is currently a party to nine economic partnership agreements (EPAs) which include 
elements of free trade agreements and instit ution-building covering areas such as investment, 
competition, and intellectual property rights and human resources development.  Japan is also 
involved in several on-going negotiations for EPAs.  Japan believes that these agreements will serve 
as building blocks to reach higher trade li beralisation at the multilateral level.  
6. At the same time, Japan will actively participat e in and make contributions to the various 
studies on the framework for an economic partnership in East Asia and the Asia-Pacific region, such 
as the Comprehensive Economic Partnership in E ast Asia (CEPEA), the East Asia Free Trade 
Agreement (EAFTA) and the Free Trade Area of the Asia-Pacific (FTAAP).  In doing so, Japan will take into consideration their possible influences on the WTO system and the world economy, as well 
as the policy of the countries in the region. 
2. Trade and Economic Policy Environment 
(1) Japan's Economic Environment 
7. The Japanese economy continued its long-standing economic recovery from the  beginning of 
2002, but the activity of the corporate sector wh ich supported the economic recovery weakened 
slowly from the middle of 2007, and the economic rec overy appeared to be pausing at the beginning WT/TPR/G/211 Trade Policy Review 
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 of 2008.  The economy has weakened further because exports are decreasing moderately and 
industrial production is decreasing.  Meanwhile, the fluctuations in the financial and capital markets 
which began with the subprime mortgage loan probl em in the U.S. and hikes in crude oil and raw 
material prices have exerted pressure on corporat e profits and consumer confidence, making the 
activity of the corporate sector and the household sect or cautious.  The influence of the U.S. economic 
slowdown has been clear, and it has exerted a negativ e impact on export from Japan indirectly as well 
as directly.  In addition, recent growing financial uncertainty in the U.S. could expose the Japanese 
economy to downside risks through fluctuations in the financial and capital markets and the effect on 
the real economy in the U.S.  
8. On the policy front, in June 2008, the Gove rnment reached a decision on "Economic and 
Fiscal Reform 2008 (Basic Policies), " which designates the course of economic and fiscal reforms for boosting the growth potential of the Japanese econom y and realizing prosperous and secure life for 
the people.  Reform efforts will be accelerated and deepened based on the Basic Policies.  The 
Government will steadily implement the "Compreh ensive Immediate Policy Package -Easing Public 
Anxiety".  In addition, in view of the present financial and economic c onditions, the Government 
published the "Economic Policy Package:  Measures to Support People's Daily Lives" on 30 October. 
(2) Trends in Foreign Trade 9. Trade statistics showed that Japan's trade surplus in 2007 rose by 36.6% over the previous 
year to ¥10.80 trillion. This was the first increa se in three years.  Japan's exports in 2007 rose by 
11.5% over the previous year to ¥83.93 trillion, cont inuing increases for the sixth straight year.  At the 
same time, Japan's imports rose by 8.6% over the prev ious year to ¥73.14 tr illion due to an increase in 
both imports of crude oil and telecommunications equi pment, in keeping with the upward trend of the 
last four years.  Both exports and imports were at record levels for Japan. 
10. In 2007, Japan's exports increased mainly du e to the Asian economic expansion and the 
intensification of the purchasing power of resource-ri ch countries, owing to a rise in resource prices. 
Exports totalled ¥83.93 trillion (up by 11.5% from 2006) 
Regional trends in exports in 2007 (compared to 2006) 
− United States        down by 0.2% 
− E U          u p  b y  1 3 . 3 %  
− A s i a          u p  b y  1 2 . 9 %  
− C h i n a          u p  b y  1 8 . 9 %  
− N I E s          u p  b y  7 . 6 %  
(incl. Korea;  Singapore;  Hong Kong, China;  and Chinese Taipei) 
− A S E A N         u p  b y  1 5 . 4 %  
− Middle East        up by 37.9% 
− R u s s i a           u p  b y  5 4 . 1 %  
11. In 2007, Japan's imports increased mainly due to the increase in the amount of imports of 
mineral-resource energy, owing to the worl dwide rise in the prices of resources, and 
telecommunication equipment. 
Imports totalled ¥73.14 trillion. (up by 8.6% from 2006) Japan WT/TPR/G/211 
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 Regional trends in imports in 2007 (compared to 2006) 
− United States        up by 5.5% 
− E U          u p  b y  9 . 7 %  
− A s i a          u p  b y  7 . 5 %  
− China           up by 9.1% 
− N I E s          d o w n  b y  0 . 2 %  
(incl. Korea;  Singapore;  Hong Kong, China;  and Chinese Taipei) 
− A S E A N         u p  b y  1 0 . 1 %  
− Middle East         up by 5.3% 
− R u s s i a          u p  b y  6 0 . 3 %  
(3) Trends in Foreign Direct Investment 
12. In May 2006, the Japan Investment Council (JIC ), chaired by the Prime Minister, set a new 
goal to double the ratio of inward FDI stock to GDP by 2010, namely to raise it to a level of around 
5%.  To achieve this new target, in June 2006, the JIC launched a new program called the "Program 
for the Acceleration of Foreign Direct Invest ment in Japan" which focuses on 3 key issues:  
(1) Regional centres for economic growth and an im proved quality of life, (2) Improvement of an 
investment environment capable of overcomi ng global competition, and (3) Domestic and 
international public information activities. 
13. In his general policy speech of January 2008, th en-Prime Minister Yasuo Fukuda stated Japan 
would achieve the goal to double the ratio of inward FDI.  In the same month, the Expert Committee 
on FDI Promotion, composed of researchers and businesspeople and others, was established.  In 
May 2008, this Committee issued "Five Recommendati ons Towards the Drastic Expansion of Foreign 
Direct Investment in Japan" which consists of :  (1) Enhancement of the system towards the 
facilitation of M&As, (2) Comprehensive studies on Foreign Direct Investment regulations, 
(3) Establishment of priority strategies by sector , (4) Reduction of business costs and improvement of 
system transparency, (5) Regional revitalization by foreign capital, strengthening of the appeal that 
foreign capital is welcome, etc.  Furthermore, in  autumn 2008, the "Program for the Acceleration of 
Foreign Direct Investment in Japan" was revi sed to reflect the said Five Recommendations. 
2007 Outward FDI1 
14. According to a Ministry of Finance report, Japan 's outflow of foreign direct investment (FDI) 
(Outward FDI) increased to ¥9,573.0 billion in FY  2007, which represents an increase of 37.7% from 
FY 2006 (an increase of ¥6,950.2 billion).  Moreover,  it is the largest amount since the statistics for 
outward FDI began in 1985.  The major characteris tics of Japan's outward FDI in FY 2007 were as 
follows: 
15. Industry :  In FY 2007, FDI in manufacturing indust ries increased to ¥5,233.4 billion (i.e. by 
39.9%).  Sector-wise, the food sector increased.  On the other hand, the petroleum and glass & ceramics sectors decreased.  FDI in non-manufacturing industries increased to ¥4,339.6 billion (i.e. by 
35.3%).  By sector, the finance & insurance sector s increased sharply, while the wholesale & retail 
sectors decreased. 
                                                     
 
1 Source:  Balance of Payments. WT/TPR/G/211 Trade Policy Review 
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 16. Region :  In FY 2007, the amount of outward FDI to North America and to Central & South 
America increased respectively to ¥2,454.7 billion (i .e. by 34.3%) and to ¥1, 285.8 billion (i.e. by 
95.3%). 
2007 Inward FDI2 
17. In FY 2007, the FDI flow to Japan (Inward  FDI) increased to ¥2,748.7 billion, from a 
decrease of ¥271.6 billion in FY 2006.  Moreover, this  is the largest total since statistics for inward 
FDI began in 1985.  The major characteristics of inward FDI stock for Japan in FY 2007 were as 
follows: 
18. Industry :  In FY 2007, inward FDI stock in the manufacturing industries decreased to minus 
¥114.4 billion (the outflow of capital), from an in crease of ¥447.6 billion in FY 2006.  It also 
decreased in the chemicals & pharmaceuticals a nd transportation equipment sectors.  However, 
inward FDI stock in the non-manufacturing industri es increased sharply to ¥2,863.1 billion.  Sector-
wise, finance & insurance, which occupied the la rgest share, increased sharply which was also the 
case with communications. 
19. Region :  In FY 2007, the amount of inward FDI from North America and Central & South 
America increased sharply;  on the other hand, Asia decreased slightly.  
3. Japan in the Doha Development Agenda 
(1) Agriculture 
20. Japan, as the world's largest net importer of  agricultural products, is committed to an 
ambitious and balanced outcome in agricultural negotiations.  To achieve this objective, Japan 
considers it necessary that difference in tariff stru ctures, the multifunctionality of agriculture, and 
food security are taken into account.  In particular , it regards export subsidies and domestic support 
for export-bound products to be trade-distorting, and welcomes the abolishment and sharp reduction 
of such measures. 
(2) NAMA 21. The Doha Round's NAMA negotiations need to deliver commercially meaningful market 
access gains for all Members.  Jap an believes that improved market access is a key booster for the 
sound economic development of developing countries, taking the important role of South-South trade 
into account.  To achieve this objective, Japan will continue to contribute actively to these 
negotiations and is doing its utmost  to ensure the early and successful conclusion of the Round. 
(3) Services 
22. Japan remains strongly committed to liberalisati on of trade in services and believes that its 
firm commitment to the DDA negotiations has been  demonstrated in various forms on a number of 
occasions.  Most notably, Japan played a leading ro le in realizing plurilateral negotiations at the 
Hong Kong Ministerial Meeting in December 2005.  Japan has chaired two plurilateral meetings and 
participated in all plurilateral meetings either as a requesting Member or a requested Member.  Japan 
has also actively participated in the subsequent service negotiations since 2007, and contributed to the 
successful outcome of the "Signaling Conference" held in July 2008. 
                                                     
 
2 Source:  Balance of Payments. Japan WT/TPR/G/211 
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 23. As one of the major exporters of trade in ser vices, Japan regards the sectors with comparative 
advantage, i.e. telecommunications, distribution, construction, maritime, financial and computer-
related services sectors, to be of primary importance to its export interest due to their relevance to the 
establishment of an effective supply chain of Japanese products and services as well as the smooth 
functioning thereof.  These sectors are also highl y relevant to Japanese overseas investment.  Japan 
therefore targets further liberalisation of these sectors, particularly in Mode 3, in order to facilitate the 
commercial activities carried out by Jap anese investors and service suppliers. 
24. The basic principle of Japan is that the achieve ment of comprehensive liberalisation in trade 
in services is of benefit to all Members includi ng developing countries, by attracting further 
investment on the one hand and through the resu lts of their increased competitiveness, production 
capacity, export and employment opportunities on the ot her hand.  Japan takes into full account the 
interests of developing countries and has made substa ntial offers, including those in mode 4.  Mindful 
of the fact that the scheduled commitments provide legal certainty and predictability, Japan continues 
to attach importance to the improvement of the level of, as well as to the achievement of a higher 
degree of transparency and clarity of, th e scheduled commitments of the Members. 
(4) Rules 
25. Japan has been actively participating in the ne gotiations on rules.  In the negotiations on 
anti-dumping, Japan, as a core member of the so-called "Friends of Anti-Dumping (FANs)", consisting of 15 Members including Brazil and Norw ay, has been contributing to discussions by 
submitting proposals on issues such as zeroing, sunset, a nd public interest to clarify and strengthen the 
disciplines of the Anti-dumping Agreement.  With re gard to the negotiations on fisheries subsidies, 
Japan, Korea and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu submitted a 
revised joint proposal on the legal draft in June 2007.  In this proposal, attempts were made to 
incorporate the considerations on (1) practicable a nd workable discipline, (2) equity among members, 
and (3) opportunities for in ternational collaboration. 
(5) TRIPS 
26. Japan has actively participated  in the discussions of the TRIPS Council, recognizing the 
importance of the development dimension and the ro le of intellectual property protection.  Japan 
believes that a global regime for the adequate and effective protection of intellectual property will 
benefit all countries by fostering an environmen t conducive to technological innovation.  Regarding 
the negotiation of the establishment of a multilatera l system of notification and registration of 
geographical indications for wines and spirits, Jap an seeks to establish a system that would not 
impose excessive burdens upon Members.  Japan will continue to engage in discussion in a 
constructive way to establish a multilateral system  acceptable and practicable to all Members. 
(6) Environment 27. With a view to enhancing the mutual suppor tiveness between trade and the environment, 
Japan has participated actively in negotiations.  In the negotiations in CTESS, Japan has been 
committed to revising its list of environmental goods.  
(7) Trade Facilitation 28. The expansion of world trade now more than ever necessitates a smooth, fair, transparent and 
efficient cross-border procedure for the movement  of goods to strengthen the multilateral trading 
system.  In this regard, Japan has been vigor ously engaged in negotia tions by submitting many WT/TPR/G/211 Trade Policy Review 
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 proposals to promote discussions and by holding many seminars and workshops to enhance the 
understanding of rules discussed under trade faci litation negotiations.  Japan will continue to 
contribute constructively to negotiations for its su ccessful conclusion and also continue to actively 
provide technical assistance for capacity building in  this area, in cooperation with relevant 
international organizations such as the WCO, with the belief that trade facilitation plays an important 
role in promoting international trade, thereby bene fiting all trading parties, including the private and 
government sectors of develope d and developing countries. 
(8) DSU 29. Japan continues to seek improvements and cl arifications for the DSU which will serve 
Members' shared interests in enhancing complian ce with trade rules and ensuring the integrity and 
credibility of the rule-based trade system.  Japan  attaches importance to the achievement of a 
successful outcome from the DSU negotiations.  It h as actively contributed to the negotiations with a 
view to accomplishing such an outcome. 
(9) Development
3 
30. The DDA should contribute to the facilitation of developing countries' integration into the 
multilateral trading system by effectively respondi ng to the interest and c oncerns of developing 
countries, inter alia,  paying special attention to LDCs.  Recognizing that developing countries, 
especially LDCs, have been facing various difficu lties in complying with WTO rules as well as in 
participating in the DDA, Japan has been activ ely implementing TRTA (Trade-related assistance 
schemes) through multilateral, bilate ral and regional frameworks in order to enable them to further 
enjoy benefits from the multilateral trading system.  Japan has contributed CHF 6.47 million to the 
DDA Global Trust Fund since it was established.  Japan  has also made contributions of more than 
US$150,000 per year to the Integrated Framework si nce 2006.  Furthermore, Japan has contributed 
annually approximately US$65,000 to th e International Trade Centre.  
31. Japan believes that it is essential for the deve loping and the least developed countries, as well 
as economies in transition, to share the benefits of the results of the negotiations.  In this regard, an 
early conclusion of the accession negotiations by such applicants, in accordance with WTO rules, is 
important in order to facilitate their integrati on into the multilateral trading system.  Japan will 
continue to play a leading role in supporting the accession process of such future members of the 
WTO. 
4. Japan's Multilateral Activities 
(1) Strengthening global food security 
32. Export restrictions and export taxes on agricultu ral products have the effect of reducing the 
supply of food to the international market and exacer bating the rise of food prices.  It is a problem that 
particularly affects the lives of people in food-importing countries. 
33. Japan has proposed restraint on the export restri ctions of food in many fora.  During WTO 
negotiations, Japan proposed a scheme through wh ich food-importing countries would be able to 
assert their views upon the imposition of export restric tions and clarification rules on the trigger of 
those restrictions.  In addition, Japan called upon countries to refrain from instituting restrictions on 
agricultural exports and other measures at the Hi gh-Level Conference on World Food Security, hosted 
                                                      
3 See also paras. 71-79 for Japan's Trade-Related Assistance Schemes. Japan WT/TPR/G/211 
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 by the Food and Agriculture Organization of the United Nations (FAO), in June 2008.  Moreover, 
G8 Leaders confirmed in the Statement on Global F ood Security at the G8 Hokkaido Toyako Summit 
that it is also imperative to remove export restric tions and expedite the cu rrent negotiations at the 
World Trade Organization (WTO) aimed at introduc ing stricter disciplines on trade actions which 
prolong and aggravate the situation. 
(2) OECD 
34. Over the last few years, Japan has been playing major roles, in terms of both intellectual and 
organisational contributions, in various OECD activities. 
35. Recognising the significance of cross-border investment flows as a tool for economic 
development in the global community, Japan propo sed, in the Ministerial Council in 2003, a new 
initiative on 'Investment for Development', whic h aimed for ambitious output ranging from policy 
recommendations on the improvement of invest ment environments (Policy Framework for 
Investment:  PFI) to analyses on synergies between FDI and ODA by conducting a peer review among developing nations.  Japan has, based on this  project, been engaged in the OECD initiative in 
2007 and 2008 to introduce and apply the PFI to Viet Nam, for improving trade policy and among others. 
(3) Generalized System of Preferences (GSP) 
36. In order to improve market access for deve loping countries, Japan has granted them 
preferential tariff treatment under the GSP schem e since 1 August 1971.  Furthermore, under the 
scheme, Japan has granted special preferential tr eatment to LDCs since 1980, including additional 
products for which preferences are granted only to  LDCs.  As a result of incomings and outgoings, 
currently 141 developing countries and 14 territories,  including all LDCs, enjoy the benefits of the 
GSP scheme.  This scheme has been vastly improved over the last several years, especially in 2001, 
2003, and 2007.  
37. In the comprehensive "Development Initiativ e for Trade" launched on 9 December 2005, 
Japan expressed its commitment to providing dut y-free and quota-free (DFQF) market access for 
essentially all products originating from LDCs.  Jap an is fully committed to implementing the above 
initiative, regardless of the progress of the Doha Rou nd negotiations.  It also intends to comply with 
the decision adopted in the Hong Kong Ministerial D eclaration on 18 December of the same year in 
order to achieve real improvement in market acces s for LDCs' exports and to support the actions of 
the LDCs to expand their trade. 
38. In realization of the abovementioned commitment, on 1 April 2007, Japan started improved 
DFQF treatment of LDCs by adding a variety of ite ms to the treatment.  The number of agricultural 
and fishery products originating from LDCs, which receive DFQF preferential treatment, increased 
from 497 to 1,523 and that of industrial products increased from 4,185 to 4,244.  Consequently, 
treatment coverage rose from the previous approximate ly 86% to 98% defined at the tariff line level. 
5. Japan's Regional Activities 
39. As East Asia has been enjoying rapid ec onomic growth and increasing interdependence, 
momentum has become stronger than ever for c ountries in the region to advance cooperation among 
themselves in economic fields in addition to th at achieved through multilateral fora.  Japan is 
endeavouring for the further development of all regional cooperative frameworks, including ASEAN 
Plus Three (Japan, China and the Republic of Korea), ASEAN-Japan, Japan-China-Korea tripartite WT/TPR/G/211 Trade Policy Review 
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 cooperation and the newly established East Asia Summ it (EAS), along with larger organisations such 
as APEC and ASEM.  Japan has consistently calle d upon the states in the region to reaffirm their 
commitment to internationally recognized rules and norms, including market economy principles and 
the WTO Agreement, in the course of  advancing regional cooperation. 
(1) ASEAN+3 
40. The Heads of State/Governments of Japan,  China, and Korea and ASEAN adopted the 
Second Joint Statement on East Asia Cooperation an d the ASEAN Plus Three Cooperation Work Plan 
for 2007-2017 at the ASEAN+3 Summit Meeting in November 2007. 
41. In terms of the cooperation on trade and inv estment referred to in the Work Plan, the 
countries of ASEAN+3 agreed:  to promote the idea of region-wide FTAs considering the 
recommendations of various studies that have been completed or are currently being undertaken;  to 
jointly pursue the successful conclusion of the ne gotiations of the Doha Development Agenda;  to 
strengthen the role of the East Asia Busi ness Council (EABC);  to consider conducting 
comprehensive studies on the possible establishment of  an East Asia Investment Area;  to promote 
cooperation between investment promotion agencies and facilitate mutual investment promotion 
missions by respective business communities;  and to facilitate the understanding of each other's 
policies, regulations and legislati ons pertaining to trade, competition policy, services, investment and 
industry as well as the sharing of experiences and best practices among ASEAN+3 countries. 
(2) Japan, China, Korea 42. The heads of Japan, the People's Republic of Ch ina and the Republic of Korea reached an 
agreement to launch joint research on economic c ooperation, especially on the effect of China's 
accession to the WTO, among the three countries at  the ASEAN+3 Summit held in Manila in 
November 1999.  Based on this agreement, the ins titutes representing the three countries, the National 
Institute for Research Advancement (NIRA) for Japan, the Developmen t Research Centre of the State 
Council (DRC) for China and the Korean Institute  for International Economic Policy (KIEP) for 
Korea have undertaken the Trilateral Joint Research  Project since January 2001 to provide policy 
recommendations to the three governments. 
43. Since June 2003, the focus of this joint resear ch has shifted to the economic effects of a 
possible Japan-China-Korea trilateral FTA.  Governme nt officials from the three countries have also 
been participating in joint research workshops as observers since March 2007.  The study will be 
completed in 2008, and further in-d epth studies will begin in 2009. 
44. The leaders of Japan, China and Korea agreed to launch negotiations for a trilateral 
investment agreement at the tr ilateral Summit in January 2007.  The three countries are in 
negotiations to achieve a trilateral agreement fo r the promotion, facilitation and protection of 
investments in order to further liberalise investme nt and strengthen protection for investors in the 
three countries.  The latest negotiations were held in November 2008 in Busan. 
45. The leaders of Japan, China and Korea agreed to launch a mechanism for improvement of the 
business environment at the trilateral Summit in November 2004.  Under this mechanism, the 
three countries are striving to make public the Ac tion Agenda for the improvement of the business 
environment.  The latest consultation for the improvement of the business environment was held in November 2008 in Busan, back to back with the nego tiations for the trilateral investment agreement. Japan WT/TPR/G/211 
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 (3) East Asia Summit 
46. The inaugural EAS was held on 14 December 2005, where the leaders of 16 East Asian 
countries discussed basic principles of regional cooperation and raised issues in a number of areas for cooperation to be prioritized for sustainable growth  in the region.  Japan will continue to make 
contributions towards the consolidation of this ne wly established framework and its development into 
an open, transparent and inclusive forum for regional initiatives that promote further growth. 
47. With regard to economic cooperation, at the third EAS held on 21 November 2007 in 
Singapore, the EAS Leaders agreed to establish th e Economic Research Institu te for ASEAN and East 
Asia (ERIA) with a view to contributing to the d eepening of economic integration in East Asia.  In 
June 2008, the inaugural meeting of the ERIA G overning Board was held at which the official 
establishment of ERIA was celebrated.  Full-fledge d research activities have begun in the three main 
fields, i.e. (1) deepening economic integration, (2) narrowing development gaps and (3) sustainable 
economic development.  In addition, a track II study on a Comprehensive Economic Partnership in 
East Asia was launched in June 2007, and its report was submitted to the EAS leaders at the 
fourth EAS held in December 2008 in Chiang Mai, Thailand.  The EAS leaders also decided to 
continue this study by the next EAS. 
(4) Asia-Pacific Econom ic Cooperation (APEC)  
48. Japan believes that the promotion of coopera tive economic relations among economies in the 
Asia-Pacific Region through APEC will enable th e creation of an open economic community in the 
region and will stimulate world trade, thereby contri buting to the development of the global economy.  
Japan will continue to work towards realizing th is vision in close cooperation with other member 
economies. 
49. Japan remains actively engaged in trade and inv estment liberalisation and facilitation, part of 
the main area of APEC.  In this regard, Japan will host APEC in 2010, the target year for developed 
economies to achieve the Bogor Goals which aim at free and open trade and investment. 
50. APEC's second Trade Facilitation Action Plan (TFAP II) was formulated in 2007 after the 
successful completion of TFAP I in 2006, aiming at a reduction in trade transaction costs by a further 
5% by 2010.  TFAP II was developed in four area s:  namely, customs procedures, standards and 
conformance, business mobility and electronic commerce.   Japan took a lead in developing the action 
plans of customs procedures.  In 2008, APEC economies adopted Key Performance Indicators (KPIs) 
in order to monitor the progress of TFAP II.  As one  of the KPIs for the area of customs procedures, a 
time release survey (TRS) was approved by Japan's  proposal.  In recognizing the importance of 
transparency and structural reform, Japan held a seminar in 2007 on competition policy, which is 
specified as one of the five areas APEC focuses on in the APEC Leaders' Agenda to Implement 
Structural Reform (LAISR) and was proposed by Japan  and adopted in the Leaders' meeting in 2004. 
(5) Asia-Europe Meeting (ASEM) 
51. Japan believes that the economic dialogue and co operation between Asia and Europe through 
ASEM will promote enhanced mutual understanding between the two regions on various economic 
issues, which could lead to increased trade and inv estment between Asia and Europe, as well as to the 
improved coordination of world ec onomic issues of mutual concern relating to the WTO, RTA/FTA, 
IPR, etc, thereby contributing to the development of the global economy.  WT/TPR/G/211 Trade Policy Review 
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 52. Japan attaches great importance to the ASEM Trade Facilitation Action Plan (TFAP).  Japan 
has been an Asian Facilitator of the TFAP cust oms procedures working group.  Japan hosted the 
Seventh ASEM Customs Directors General- Commissioners Meeting in Yokohama in 
November 2007, in which the Yokohama Declarati on for strengthened ASEM customs cooperation in 
the new era was adopted.  It also has a strong inte rest in the fields of standards and conformity 
assessment, customs procedures, e-commerce and in tellectual property rights enforcement, and has 
made various contributions at th e TFAP meetings in these areas. 
6. Japan's Bilateral Activities 
(1) FTA/EPAs  53. Maintaining and strengthening the multilateral trading system under the WTO has been the 
main pillar of Japan's external economic policy.  At the same time, Japan has also promoted its 
regional and bilateral trade policies as a means of complementing the multilateral trading system, 
particularly through economic part nership agreements including elem ents of free trade agreements 
and institution-building. 
54. The data concerning the economic partnership ag reements is summarized in the table below. 
Table:  Economic partnership agree ments to which Japan is a party 
Country Date of the entry into  force Additional information. 
Singapore 
(The Japan-Singapore Agreement 
for a New Age Economic 
Partnership) 30 November 2002  - From 2005 to 2007, the trade volume between 
two countries increased by 22%. 
- The third Supervisory Committee meeting was held in 
January 2007. 
- The amended Agreement came into effect in September 
2007. 
- The partial amendment of the Annex (IIA "Product-
Specific Rules" and IIB "Minimum Data Requirement for 
Certificate of Origin") came into effect in January 2008. 
Mexico 
(The Agreement be tween Japan and 
the United Mexican States for the 
Strengthening of the Economic 
Partnership) 1 April 2005 - Since the Agreement ente red into force in 2005, the trade 
volume between the two countries has increased by 85.6%, and investments of Japanese companies in Mexico have 
also increased.   
- The Joint Committee, Sub-Committees for effective 
implementation and operation of the agreement and the Committee for the improvement of the business 
environment have been  held every year. 
Malaysia 
(The Agreement be tween Japan and 
the Government of Malaysia for an 
Economic Partnership) 13 July 2006 -  From 2005 to 2007, the trade volume between the two 
countries increased by 27%.   
- With a view to achieving a smooth implementation of the 
Agreement, Sub-Committees regarding various areas have 
been held to date. 
Chile 
(The Agreement be tween Japan and 
the Republic of Chile for a Strategic 
Economic Partnership) 3 September 2007 - After the Agreement entered into force in 2007, trade 
volume between the two countries increased by 4.8% in the 
first half of 2008 compared with the same period in 2007, and investment by Japanese companies in Chile has also 
increased. 
- In total, a Commission, seven Committees and two 
Working Groups were established. 
Thailand 
(The Agreement be tween Japan and 
the Kingdom of Thailand for an Economic Partnership) 1 November 2007  - The second Joint Committee was held in November 2008. 
- The Sub-committees on rules of  origin, trade in services, 
movement of natural persons, customs procedures, 
enhancement of business enviro nment, paperless trading, 
small and medium enterprises have been held. 
  (Table cont'd) Japan WT/TPR/G/211 
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 Country Date of the entry into  force Additional information. 
Indonesia 
(The Agreement be tween Japan and 
the Republic of Indonesia for an 
Economic Partnership) 1 July 2008  - The Sub-Committee on the movement of natural persons, 
held in August and October 2008, made necessary 
decisions for the smooth implementation of this Agreement 
in this area. 
Brunei 
(The Agreement be tween Japan and 
Brunei Darussalam for an Economic 
Partnership) 31 July 2008 - The first Joint Committee made decisions necessary for the 
implementation of the Agreement, such as the adoption of 
the Operational Procedures. 
ASEAN 
(The Agreement on Comprehensive 
Economic Partnership among Japan 
and Member States of the Association of Southeast Asian 
Nations) 1 December 2008 - The Agreement is a legally independent agreement in 
relation to the bilateral EPAs between Japan and individual 
ASEAN Member States and thus the entry into force of the 
Agreement will neither nullify nor  integrate those bilateral 
EPAs. 
The Philippines 
(The Agreement be tween Japan and 
the Republic of the Philippines) 11 December 2008 - The exchange of dipl omatic notes concerning the entry into 
force of the Agreement took place on 11 November 2008.  
The Agreement entered into force on 11 December 2008. 
Viet Nam 
 Waiting for signing of the 
agreement. - The agreement in principle was reached in September 
2008. 
Switzerland 
(The Agreement on Free Trade and 
Economic Partnership between 
Japan and the Swiss Confederation) Waiting for signing of the 
agreement. - The agreement in principle was reached in September 
2008. 
GCC  (Gulf Cooperation Council) Under negotiation (Formal 
negotiations commenced in 
September 2006, and the second round of negotiations was held in Riyadh in 
January 2007) - Negotiation continues for a free trade agreement. 
The Republic of Korea  Under negotiation (The 
negotiations commenced in 
December 2003, and six rounds of negotiations 
have been held) - Although no negotiations have been held since the end of 
the sixth round held in November 2004, the second 
working-level consultation was held in December 2008 to consider and create a favourable environment for the 
resumption of negotiations. 
India  Under negotiation (The 
negotiations commenced in 
January 2007, and the eleventh round of negotiations was held in Delhi in December 2008)  
Australia  Under negotiation (The 
negotiations commenced in 
April 2007, and the seventh round of negotiations 
was held in Canberra in 
October 2008)  
 
(2) Japan's Bilateral Activities outside of FTAs 
55. Besides negotiations on FTAs, Japan is i nvolved in economic initiatives with several 
countries.  Through such bilateral frameworks, Ja pan aims to deepen the understanding of each 
others’ trade and economic policies, to prepare a channel which will help to troubleshoot potential 
trade problems, to stimulate deregulation and libe ralisation in both directions, and to create the 
political momentum to liberalise trade, which will help to complement and reinforce the multilateral 
trading system. WT/TPR/G/211 Trade Policy Review 
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 (i) The United States 
56. Under the "Japan-U.S. Economic Partnership fo r Growth" (hereinafter referred to as the 
"Partnership"), established by then-Prime Minister  Koizumi and President Bush in June 2001, Japan 
and the United States have been engaging in comprehensive and cons tructive dialogue.  The 
Partnership consists of six fora:  Sub-cabinet  Economic Dialogue, the Private Sector/Government 
Commission, the Regulatory Reform and Compe tition Policy Initiative (hereinafter called the 
"Reform Initiative"), Financial Dial ogue, the Investment Initiative, and the Trade Forum.  Under these 
frameworks, a number of meetings have been held to  work on a wide variety of issues that contribute 
to promoting sustainable growth of not only the two countries but also the entire world economy. 
57. Under the Reform Initiative in particular, Japan and the United States have compiled and 
publicized seven extensive reports to the two leaders,  the latest of which was submitted to the leaders 
on 5 July 2008.  The Reform Initiative covers key sectors and areas such as intellectual property, 
distribution and customs procedures, competition policy, trade and investment-related measures, 
consular affairs, medical devices and pharmaceutic als, commercial law, privatization of public 
entities, and telecommunications/communications.  
58. The Investment Initiative covers investment pr omotion, restriction measures and investment-
related measures such as education, medical servic es, the labour system, visas, cargo security, etc.  
These reports are the most tangible results of Jap an-U.S. bilateral economic consultations, which 
include a number of measures taken by the tw o governments to facilitate two-way trade and 
investment.  
59. In addressing the threat of transnational te rrorism, the international community faces the 
challenge of securing the global supply chain with out hindering the efficient movement of goods. 
Japan and the United States have been working togeth er to increase secure and efficient trade between 
the two countries, within the Asia-Pacific region, an d throughout the world. One of the approaches is 
the Megaports Initiative.  Japan and the United States share a common concern for the need to 
increase efforts to detect, deter and interdict illic it trafficking in nuclear and other radioactive 
material, including terrorist attempts to disrupt global trade and to abuse commercial shipping to 
further terrorist schemes.  To address this concern,  Japan will start a pilot project under the Megaports 
Initiative with the United States' support to monitor cargo containers for nuclear and other radioactive 
material by installing radioactive materials de tection equipment by the end of Japan's FY 2008. 
(ii) European Union 60. With regard to the economic relati ons between Japan and the EU, the 16
th and 17th Japan-EU 
Summit Meetings were held respectively on 5 June  2007 and on 23 April 2008.  At these summit 
meetings, Japan and the EU issued the "Japan-E U Action Plan on IPR Protection and Enforcement" 
(2007) and documents entitled "Promoting Research  and Innovation towards Prosperity" (2007) and 
"Japan-EU Cooperation on Consumer Safety and Protection" (2008). Additionally, the Japan-EC Customs Cooperation Agreement ("Agreement be tween Japan and the European Community on 
Cooperation and Mutual Administrative Assistance in Customs Matters"), which facilitates mutual 
assistance in customs matters and trade, entered into  force on 1 February 2008.  On various occasions 
including the annual Japan-EU Regulatory Reform Di alogues, with a view to improving the business 
environment and promoting bilateral trade and i nvestment, both sides conduc ted consultations on 
wide-ranging economic issues.  The Japan-EU High- Level Consultations we re held on 26 April 2007 
in Brussels and 27 February 2008 in Tokyo to ex change views on the progress of cooperation and 
dialogue across a wide range of economic areas.  Japan WT/TPR/G/211 
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 (iii) China 
61. The economic interdependence between Japan and China is growing deeper.  In 2007, China 
became Japan's largest trading partner.  The mu tual trade amount in 2007 reached US$236.6 billion, 
growing 12% over 2006.  According to China's statis tical data, Japan was China's third largest trading 
partner in 2007.  Regarding foreign direct investment  in China, Japan invested US$3.6 billion in 2007.  
According to China's data, 22,650 Japanese enterprise s conduct business in China.  Japan has bilateral 
economic agreements with China in the areas of tr ade, air transportation, maritime transportation, 
patent protection, tax, investment, fish eries and mutual customs cooperation.   
62. Japan has expressed a view that China's economi c development should be  an opportunity for 
the world economy.  In April 2002, Japan and Chin a decided to establish the Japan-China Economic 
Partnership Consultation for the purpose of identifyi ng possible areas of economic disagreement at an 
early stage and preventing disputes between the two countries, as well as further strengthening 
mutually complementary bilateral economic relations. Such consulta tions have been continuously 
held each year.  In these consultations, both sid es exchanged views regarding bilateral economic 
issues, such as on intellectual property rights (i ncluding damages resulting from counterfeit goods), 
trade and investment issues, agriculture and quarantine, and Japan-China cooperation in the 
international economy. 
63. In 2007, for strategic economic dialogue at the mi nisterial level, Japan and China decided to 
establish the Japan-China High-Level Economic Dialogue .  The first meeting was held in Beijing in 
December 2007.  Both leaders expressed views to strengthen exchanges and cooperation in the fields 
of trade, investment, and protection of in tellectual property rights, among other areas. 
64. Japan will continue to make efforts to deve lop bilateral economic relations with China 
founded on a "mutually beneficial relations hip based on common strategic interests". 
(iv) Africa 65. Japan considers the acceleration of economic grow th for the prosperity and stability of Africa 
quite important.  Expansion of the volume of trade and investment will largely contribute to achieving 
this goal.  With this in mind, Japan as well as de velopment partners discussed the importance of trade 
and investment as a major topic at TICAD IV. 
66. Japan announced at TICAD IV that it aims to assist in doubling Japanese private investment 
in Africa by 2012.  The Yokohama Declaration that Japan played a major role in drafting 
demonstrates the political direction, and the variou s concrete actions of Japan in this field are 
mentioned in the Yokohama Action Plan.  
67. For example, Japan dispatched  three Joint Missions to 12 African countries from August to 
September 2008 with a view to promoting trade and i nvestment in Africa.  Japan further promoted the 
"One Village, One Product (O VOP)" movement all over the Africa n continent, with capacity building 
fostered for the purpose of expanding the volum e of trade between Japan and Africa.    
68. Japan considers that the stimulation of Japanese investment in Africa will be a key factor for 
African development.  Japan will also set up the A frican Investment Facility next April for financial 
assistance to Japanese private companies.  In addition to that, trade and investment insurance is to be 
extended more flexibly and partnership between pr ivate companies' projects and ODA is encouraged. 
In total, up to US$2.5 billion will be prov ided as financial support over five years. WT/TPR/G/211 Trade Policy Review 
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 69. Private sector development is also important to make African sustainable development 
possible.  In this context, Japan decided to a dditionally provide US$300 million to the AfDB (African 
Development Bank) for projects to enha nce the capacity of SMEs in Africa. 
(v) MERCOSUR 
70. In order to strengthen the Japan-MERCOSUR ec onomic relationship and also to ensure its 
future development, the sixth Japan-MERCOSUR Se nior Official Meeting was held in Japan in 
June 2004 and the seventh in Argentina in April 2006.  During these meetings, various views were 
exchanged on trade and investment promoti on, and economic and technical cooperation. 
7. Japan's Trade-Related Assistance Schemes - TRTA 
71. In order for developing countries including LDCs to reap further benefits of the multilateral 
trading system, trade liberalisation alone is not enou gh.  Supply-side assistance is indispensable.  For 
many years, Japan has been making an important c ontribution in this area, providing technical and 
financial assistance to the production sector and the economic infrastructure and service sector.4 
(1) Development Initiative for Trade 72. As a response to the much-discussed issue of "Aid for Trade," Japan launched the 
"Development Initiative for Trade", prior to th e WTO Ministerial Conference in Hong Kong in 
December 2005.  This initiative, based on Japan's experience and knowledge in this field, intends to 
provide effective assistance in a comprehensiv e manner, combining all necessary and available 
measures. 
73. In this initiative, Japan divides tr ade into three different stages:  "Produce", "Sell", and "Buy".  
As for trade, it is necessary first to "produce" goods .  Next, the goods need to be delivered to ports 
and markets.  This ushers in the "sell" stage.  Finally, the goods will be purchased by consumers in 
other countries.  This is the "buy" stage.  In or der to facilitate each of these three stages, Japan 
provides assistance through every available measure, namely "knowledge and technology", "people", 
"financial assistance" and "systems", so that the chain of commerce can function well in developing countries. 
74. Until now, Japan has steadily implemented th e Development Initiative for Trade.  For 
instance, Japan has implemented since April 2007 du ty-free and quota-free (DFQF) market access for 
approximately 98% of products or iginating in least developed countries (LDCs) and has assisted 
developing countries with the "One  Village, One Product" movement. 
                                                     
 
4 Japanese Cooperation in the Trade-related sectors (OECD/DAC data base).  According to the 
OECD/DAC ODA data base by sectors (Table 5), Japan ranked first among the DAC member countries in terms 
of the amount of aid in the production sector (Sector III) and the economic infrastructure & service sector 
(Sector II).  Japan alone provided almost half (47%) of the total amount of the aid given by the DAC countries 
in these sectors between 1990 and 2004. In the agriculture, fisheries and forestry sector (Sector III.1), Japan also 
contributed almost 40% of the total ODA provided by the DAC member countries.  As for the share of these 
sectors in the total ODA of each country, Japan, with more than 60%, outnumbers by far other member 
countries, whose shares range from 20 to 30%.  Althou gh not all of the cooperatio n in these sectors can be 
regarded as trade-related, this data reflects the fact th at the trade-related sectors have been taken into account 
considerably ("mainstreamed") in Ja panese assistance policy, especially as a part of the poverty reduction 
strategy through economic growth. Japan WT/TPR/G/211 
 Page 19 
 
 
 75. The Japanese Government dispatched a high- level mission on the Development Initiative for 
Trade to Madagascar, Kenya, and Zambia from late June to early July 2007.  This mission conveyed 
our strong message that Japan would steadily implement its Development Initiative for Trade 
regardless of the progress of DDA negotiations, whic h was greeted with appreciation and gratitude 
from these countries. 
76. Various review meetings on Aid for Trade (AFT) were held in autumn 2007 by the WTO and 
regional development banks.  Japan contributed to th ese meetings by means of a financial contribution 
through the Japan-OECD Cooperation Fund, as well as through the participation of our high-level 
experts as panellists. 
77. Japan has also hosted summit meetings that push development as a main theme, such as 
TICAD IV and the G8 Hokkaido Toyako Summit.  Japan plans to proactively promote the Development Initiative for Trade taking into account the outcomes of these meetings, such as the 
Yokohama Action Plan adopted at TICAD IV.  The plan  declares the scaling up of "Aid for Trade" to 
increase the global competitiveness of African count ries by accelerating assistance including through 
the above-mentioned Development Initiative for Trade. 
(2) Assistance to the One Village, One Product Movement 
78. The One Village, One Product (OVOP) is one of the typical approaches under this initiative. 
OVOP is a movement which supports local econom ies through the development, improvement and 
promotion of local products (foods, beverages, tex tiles & garments, etc.) with the participation of 
local people.  This movement was first initiated in a southern prefecture in Japan in the late 1970s and 
later spread to the other prefectures.  It has been introduced and has contributed to the development of 
the local economies in other Asian countries.  
79. Japan supports this movement, especially the exports of developing countries and least 
developed countries through technical cooperation such  as the dispatch of experts, educational and 
training programs to create competitive products, an d support through international organizations.  In 
addition, Japan has held exhibitions and trade fair s inviting buyers and has also opened shops (OVOP 
markets) in Japan's international airports in or der to introduce products and encourage shopping.  
8. Japan's Domestic Policies 
(1) Regulatory Reform 
80. The Council for the Promotion of Regulatory Reform (CPRR) was established in 
January 2007, after the closing of the former C ouncil for the Promotion of Regulatory Reform, as an 
advisory body to the Prime Minister for the purpo se of accelerating regulatory reforms.  The CPRR 
has been investigating and deliberating on reform  issues and reporting the outcomes to the Prime 
Minister while keeping close ties with the Headquarters for the Promotion of Regulatory Reform.  
81. In May 2007, the CPRR delivered "The Fi rst Report on the Promotion of Regulatory 
Reform".  The report addressed reform issues su ch as the re-examination of a labelling rule for 
agricultural products and others, raising the age lim it to take civil service exams, and the application 
of IT to the medical system.  Japan incorporated  this report in the "Economic and Fiscal Reform 2007 
(Cabinet decision in June 2007)".  In addition, it authorized "The Three-Year Program for Promoting 
Regulatory Reform" as the Cabinet decision in June 2007  in line with this report.  In December 2007, 
the CPRR delivered "The Second Report on the Promotion of Regulatory Reform".  This time, the report dealt with reform issues such as the re-exa mination of national health  insurance coverage, the WT/TPR/G/211 Trade Policy Review 
Page 20 
 
 
 so-called "mixed medical care ( kongou-shinryo )", and the basic rules for children to enter nursery 
school.  Japan authorized "The Three-Year Program for Promoting Regulatory Reform (Revised)" accordingly as the Cabinet decision in March 2008. 
82. The CPRR published "The Interim Report" in July  2008 to include seven core areas which are 
(1) social security policies and measures against the e ffects of the decline in the birth rate, (2) policies 
for the agriculture and fisheries sectors and for ru ral regions, (3) basis of livelihood, (4) improvement 
of international competitiveness, (5) foundation of society, (6) educational policies and reform of 
licenses, and (7) slimming down government ente rprises.  The Third Report on the Promotion of 
Regulatory Reform will be made in December 2008 to  include the issues stated in the Interim Report 
and others. 
(2) Intellectual Property Rights  83. The Intellectual Property Strategy Headquart ers, which was established in March 2003 under 
the Basic Law on Intellectual Property,  achieved the following major results: 
− Establishment of the Intellectual Property High Court (April 2005) 
− Acceleration of patent examining/ sharp incr eases in the number of examiners (an increase of 
around 500 in the five years from FY 2004 to FY 2008) 
− Inauguration of many university-based intellectua l property headquarters and rapid increases 
in the number of patent applications  
− Development of the International Standardi zation Comprehensive Strategy (December 2006)  
− Organization of measures for the promotion of the contents industry 
 (3) Financial Reform 
Insurance sector 
84. With respect to the expansion of the sales ch annel for financial goods and services, Japan has 
implemented a wide range of regulatory refo rm measures, including the following measures: 
permission for banks to sell, in principle, all insu rance products and lifting the ban on agent business 
by insurance companies in  investment advisory contracts, di scretionary investment management 
contracts and trust contracts.  
Banking and securities sectors 
85. A new capital adequacy framework  known as "Basel II" has been  in force for all deposit-
taking financial institutions since the end of March 2007.  The most advanced approaches of the new 
regulatory framework have been available fo r implementation since the end of March 2008. 
86. The Financial Instruments and Exchange Act (FIE A) entered into force in September 2007, to 
respond to the dramatically changing environment su rrounding Japan's financial and capital markets.  
The FIEA aims at (1) establishing a cross-sectional legislative framework for user protection covering 
a wide range of financial products with strong in vestment characteristics, (2) enhancing disclosure 
requirements, (3) ensuring appropriate management  of self-regulatory operations by exchanges and 
(4) guaranteeing strict countermeasures against unf air trading.  The Better Market Initiative was 
published in December 2007.  The Initiative's proposal s include the introduction of a highly flexible 
market designed for professional investors and the relaxation of firewall regulations.  The amended 
FIEA, which includes the above mentioned me asures, was promulgated in June 2008. Japan WT/TPR/G/211 
 Page 21 
 
 
 (4) Agricultural Reform 
87. In April 2007, the Task Force on the Promoti on of Policies for Food, Agriculture and Rural 
Areas headed by the Prime Minister adopted a goa l-oriented policy package in accordance with the 
Cabinet policy objectives for agriculture, which are:  1) to make full use of the potential productive 
capacity of agriculture and to develop agricultu re as a strategically important industry for the 
21st century;  2) to fulfil the demand for high-quality and safe food for consumers, and to carry out the 
plan which includes:  (i) agrarian reform which concentrates on the farmland of principal farmers in 
order to strengthen the structure of Japanese agricult ure and (ii) the establishment of the "Ministry of 
Agriculture, Forestry and Fisheries (MAFF)'s  Strategy for Preventing Global Warming". 
88. Responding to the skyrocketing of global agri cultural-product prices as well as to the drop in 
food self-sufficiency, in May 2008, the Task Force on the Promotion of Policies for Food, Agriculture and Rural Areas headed by the Prime Minister adop ted concrete actions and measures which should 
be promoted not only by MAFF but by Japan as a whole.  They are:  the development and popularization of rice flour products, rice-fodder production in paddy fiel ds and improving fodder 
self-efficiency to strengthen domestic food supply capac ity;  the reinforcement of correct information 
on the food label to ensure consumer confidence;  the promotion of farm management stabilization 
programs targeted to principal farmers;  building a system in which companies and people in diverse 
fields can enter the agricultural sector;  reclaiming abandoned cultivated land;  and the promotion of cooperation among farmers, local food industries a nd local retailing companies to revitalize rural 
areas.   
(5) Competition Policy 
89. In October 2007, in line with the June 2007 re port prepared by the Advisory Panel on Basic 
Issues Regarding the Antimonopoly Act (an advisory pa nel to the Chief Cabine t Secretary), the Japan 
Fair Trade Commission (JFTC) published the "Pro spective Amendments to the Antimonopoly Act 
(AMA)" and continued its study of the Act's amendment bill.  The bill was approved by the Cabinet in 
March 2008 and was submitted to the Diet.  As deliberations on th e bill were not completed during 
the session, the bill was carried  over to the next session. 
90. The amendment bill included review of the su rcharge system, of the surcharge rate for 
unreasonable restraint of trade and of the leniency program. 
91. The JFTC has been taking rigorous legal actions  against violations of the AMA. The number 
of legal cases against such violations amounted to nine in 2006 and 20 in 2007.  Details of these cases 
can be found below.  
 2006 2007 
Private monopolization 0 0 
Bid-rigging 3 12 
Cartels (excluding bid-rigging) 3 3 
Unfair trade practices 3 4 
Others 0 1 
Total cases 9 20 
 WT/TPR/G/211 Trade Policy Review 
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 92. The amount of surcharge payment orders issued by the JFTC was estimated at a total of 
approximately ¥40757.2 m illion in 2007 and ¥23137.7 million in 2006.  Of that amount, some cases, 
totalling ¥27171 million in 2007 and ¥ 962.92 million in 2006, were nullified due to the initiation of 
hearing procedures. 
93. The JFTC has adopted an active policy on filing criminal complaints to seek penalties for 
violations of the AMA.  In 2007, the JFTC filed complaints in two cases. 
94. In order to reinforce the JFTC's  role as a guardian of the market, the number of personnel in 
the JFTC increased to 795 in 2008, with mo st assigned to the investigation section. 
 
__________