WORLD TRADE  
ORGANIZATION  G/SCM/Q2/JPN/43 
22 April 2009 
 (09-1906) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Follow-Up Questions from th e UNITED STATES Regarding the  
New and Full Notification of JAPAN1 
 
  The following communication, dated 16 April 2009,  is being circulated at the request of the 
Delegation of the United States.    
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  We would like to thank Japan for its respon se to the United States' question regarding their 
new and full subsidies notification.  The following  are some additional questions based on Japan's 
response.   
 
Aichi Prefecture's Industrial Facilities Tax Abatement Programme
 
  Japan's response to the United States' questions states that this programme is not "limited to 
certain enterprises located within a designated ge ographical region within the jurisdiction of the 
granting authority" and is, therefore, not specific as provided under Article 2 of the Subsidies 
Agreement.  However, public information indicat es that the tax abatement under this programme 
applies only to specific regions within this prefect ure and that these regions are designated based on 
areas where the governor considers industrial promo tion necessary.  Thus, it appears that benefits 
under this programme are limited to designated ge ographical regions within the prefecture.   
 
 Please describe the specific criteria governi ng eligibility under this programme and explain 
further why this programme does not qualify as a speci fic subsidy pursuant to Article 2.2 of the SCM 
Agreement.  If the programme does contain criteria th at limit eligibility to certain enterprises located 
within a designated geographical  region, could Japan please furt her explain how it interprets 
Article 2.2 of the SCM Agreement?   
 
Aichi Prefecture's Tax Incentive in Depopulated Areas Programme
 
  Japan's response to the United States' questions states that this programme is not "limited to 
certain enterprises located within a designated ge ographical region within the jurisdiction of the 
granting authority" and is, therefore, not specific as provided under Article 2 of the Subsidies 
Agreement.  However, public information regarding this programme indicates that only firms located 
in designated depopulated areas of the prefecture ar e eligible for the tax exemptions under this 
programme.  Thus, it appears that benefits under this programme are limited to designated 
geographical regions within the prefecture.    
                                                     
 
1 G/SCM/N/155/JPN.   G/SCM/Q2/JPN/43 
Page 2  
 
   Please describe the specific criteria governi ng eligibility under this programme and explain 
further why this programme does not qualify as a speci fic subsidy pursuant to Article 2.2 of the SCM 
Agreement.  Akita Prefecture's Assistance for Site Acquisition in Industrial Parks Programme
 
 
 Japan's response to the United States' questions states that this programme is not "limited to 
certain enterprises located within a designated ge ographical region within the jurisdiction of the 
granting authority" and is, therefore, not specific as provided under Article 2 of the Subsidies Agreement.  However, public information regarding this programme indicates that benefits under this 
programme are only provided to companies purchasing sit es in one of the prefecture's industrial parks.   
Thus, it appears that benefits under this programme  are limited to designated geographical regions 
within the prefecture.     Please describe the specific criteria governi ng eligibility under this programme and explain 
further why this programme does not qualify as a speci fic subsidy pursuant to Article 2.2 of the SCM 
Agreement.  Akita Prefecture's Tax Exemption Programme
 
  Japan's response to the United States' questions states that this programme is not "limited to 
certain enterprises located within a designated ge ographical region within the jurisdiction of the 
granting authority" and is, therefore, not specific as provided under Article 2 of the Subsidies Agreement.  However, public information regardin g this programme indicates that only companies 
that establish factories in certain areas or certain i ndustrial parks are eligible for tax exemptions under 
this programme.  Thus, it appears that benefits  under this programme are limited to designated 
geographical regions within the prefecture.   
  Please describe the specific criteria governi ng eligibility under this programme and explain 
further why this programme does not qualify as a speci fic subsidy pursuant to Article 2.2 of the SCM 
Agreement.  
Mie Prefecture's Subsidy System for New Businesses Development Programme
 
  Japan's response to the United States' questions states that this programme is not "limited to 
certain enterprises located within a designated ge ographical region within the jurisdiction of the 
granting authority" and is, therefore, not specific as provided under Article 2 of the Subsidies 
Agreement.  However, public information regarding this programme indicates that benefits under this 
programme are limited to companies in underpop ulated and semi-underpopulated areas or in the 
eastern Kishu Region of the prefecture.  Thus, it appears that benefits under this programme are limited to designated geographical regions within the prefecture.     Please describe the specific criteria governi ng eligibility under this programme and explain 
further why this programme does not qualify as a speci fic subsidy pursuant to Article 2.2 of the SCM 
Agreement.  
 Underdeveloped Area Industrialization Act  
 
 
 Japan's response to the United States' questions states that this programme is not "limited to 
certain enterprises located within a designated ge ographical region within the jurisdiction of the 
granting authority" and is, therefore, not specific as provided under Article 2of the Subsidies Agreement.  However, the title of the programme is the Underdeveloped Area Industrialization Act;  G/SCM/Q2/JPN/43 
 Page 3 
 
 
  thus, it appears that benefits under this programme are not provided to all regions in Japan and are 
limited to designated geographical regions.    Please describe the criteria used by the Gove rnment of Japan to designate a region as an 
"underdeveloped area" under this Act and further explain why this programme does not qualify as a 
specific subsidy pursuant to Article 2.2 of the SCM Agreement.  
 Peninsula Development Promotion Act
 
  Japan's response to the United States' questions  indicates that this programme is not "limited 
to certain enterprises located within a designated ge ographical region within the jurisdiction of the 
granting authority" and is, therefore, not specific as provided under Article 2 of the Subsidies Agreement.  However, the title of the programme is  the Peninsula Development Promotion Act;  thus, 
it appears that benefits under this programme are limited to designated geogr aphical regions within 
the country. 
 
 Please provide a description of the region in Japan that is covered by the Peninsula 
Development Promotion Act, describe the specific criteria governing eligibility under this programme 
and explain further why this programme does not qua lify as a specific subsidy pursuant to Article 2.2 
of the SCM Agreement.  
Chubu Region Development Act
 
  Japan's response to the United States' questions  indicates that this programme is not "limited 
to certain enterprises located within a designated ge ographical region within the jurisdiction of the 
granting authority" and is, therefore, not specific as provided under Article 2of the Subsidies 
Agreement.  However, the title of the programme is the Chubu Region Development Act;  thus, it 
appears that benefits under this programme are limi ted to designated geographical regions within the 
country.     Please provide a description of the region in Japan that is covered by the Peninsula 
Development Promotion Act, describe the specific criteria governing eligibility under this programme 
and explain further why this programme does not qua lify as a specific subsidy pursuant to Article 2.2 
of the SCM Agreement.  
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