RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/196
4 April 2000
(00-1351)
Council for Trade in Goods Original:  English
ROMANIA’S REQUEST PURSUANT TO ARTICLE 5.3
OF THE AGREEMENT ON TRIMS:  REPLIES TO WRITTEN QUESTIONS
FROM THE UNITED STATES AND JAPAN
I.  REPLIES TO WRITTEN QUESTIONS FROM THE UNITED STATES
Measures
1. Please describe in detail the measures that are included in the Government of
Romania’s (“GOR”) request.  Could the GOR please elaborate beyond the description
provided in previous submissions.  For example for both facilities:
(a) Are the 60 per cent local content (integra tion value) requirements the same for
each facility?  What kinds of local goods qualify (anything?  some parts but notothers? etc.)
Yes, the 60 per cent local content requirement is the same for each facility, all kind of
local goods needed in the production process qualifying.
(b) Are the 50 per cent export requirements the same for each facility?
Yes, the 50 per cent export requirement is the same for each facility.
(c) Are there any other advantages beyond those described in your 31 March 1995
notification?
No, there are no other advantages.
(d) Are there any other “obligations” placed on these firms?
Besides the requirements above mentioned, the Law 71/1994 stipulates that if before
elapsing of a 14 year period, estimated from the date of the registration, the company
diminishes its social capital so that the participation of the foreign investor lowers toan amount under a minimum of US $ 50 m illion or the company is voluntarily
dissolved, the company will be obliged to pay all taxes and customs duties normally
due for all the functioning period.
Thus, the contracts concluded with the two firms, related to the privatization of the
former state owned enterprises through foreign direct investment, were strictly incompliance with Law 71/1994 requirements.
2. Provide more specifics regarding the facilities covered by your extension request.
(a) What are the names of the firms?
The names of the firms are Daewoo Automobile Romania S.A.  (DAR S.A.) and
Daewoo Mangalia Heavy Industries S.A.(DMHI S.A.).
(b) Where is the shipbuilding plant located?G/C/W/196
Page 2
The shipbuilding plant is located in City of Mangalia, District of Constanta.
(c) What do they produce other than autos and ships?
The company DAR S.A.  produces cars and parts and components thereof, while
DMHI S.A  produces ships.
(d) When did they first establish themselves under Law 71/1994?
DAR S.A.  was established in November 16,1994 and DMHI S.A.  in May 27, 1996.
(e) At what point do the requirements pla ced on the firms expire under the terms of
Law 71/1994?
For DAR S.A. , the requirements expire on November 16, 2001 while for DMHI S.A.
on May 27, 2003.
(f) Were there other firms that participated under Law 71/1994?
During the period for which the Law 71/1994 has been in force (June 1994-June
1997) only the two above-mentioned investments were eligible, as they fulfilled thecriteria stipulated by the Law.
It has to be mentioned that the aim of the Law 71/1994 was to attract on a long-term
basis new FDI in industry, introducing additional facilities for investments over US $
50 million.
3. How have the measures changed over time?
(a) What were the restrictions on 1 January 1995?  Have there been any changes
since then?  What are they?
The restrictions on 1st January 1995 were those contained in Law 71/1994 in force at
that time. These restrictions were mentioned in Romania’s notification under Article
5.1 of the TRIMs Agreemen t (G/TRIMS/N /1/ROM/1).
The subsequent changes initiated by the GOR starting with June 1997 were aimed at
the elimination of any future TRIMs. The first step was made in June 1997, by
issuing the Government Emergency Or dinance (GEO) No. 31/1997, amended by
GEO No. 92 of December 1997 (approved by Law 241 of 1998). Furthermore, in
May 1999, the GOR issued the GEO No. 67 regarding measures for economicactivity development, which grants a series of fiscal and customs incentives to certain
category of new investments, namely the investments with major impact on the
Romanian economic activity.
The incentives granted to the newly established investments under each of these legal
acts do not rely on TRIMs anymore.
However, in order to preserve investors’ advantages and obligations, the new
legislation stipulates that the provisions of Law 71/1994 continue to apply to
investments made under that Law and for the time period foreseen therein.
(b) Have the amount or percentage of local content and/or export requirement
values increased since 1 January 1995?
No. For the investments established under Law 71/1994 the percentage of local
content and export requirement were maintained. Moreover, as mentioned above, therequirements were eliminated for new es tablished investments beginning with 1997.
(c) Are the current measures more or less inconsistent with the terms of the
Agreement since January 1995?G/C/W/196
Page 3
The current legal framework concerning new investments is fully consistent with the
TRIMs Agreement.
4. Given that the GOR TRIMs notification implies certain advantages:
(a) Please describe the benefits that accrue to participants in the various programs.
In other words, what formulas are used to decide on the scope of the benefits?
According to the Law 71/1994, the facilities granted for investments are the
following:
- exemption of custom duties, for a seven-year period, beginning from the date
of company’s registration, for machines, equipment, installations, imported
for investment purposes and subscribed as participation in kind or paid from
own drawn or borrowed sources;
- exemption of custom duties, for a seven-year period, estimated from the date
of company’s registration, for raw materials, consumption materials, spareparts and component parts, imported for the own company’s production
purposes and paid from own drawn or borrowed sources; and
- profit tax exemption for a five-year period, estimated from the date of
obtaining profit, but not more for seven years from the start of the productive
activity.
Both industries (auto and shipbuilding) are considered to be very important for
national economy.
The above mentioned facilities contributed to alleviate the economic and social
situation in the respective fields, by improving the manufacturing technologies, re-
launch their activities and maintaining and creating new employment in areas with anincreasing unemployment rate. (See also answer to question 6).
(b) What is the total value of such benefits?
The total value of  the benefits cannot be measured but it can be qualitatively
estimated. Thus, as the purpose of the Law 71/1994 was to attract important foreign
investors in industry, some of the benefits accruing for Romania are estimated to be:the maintenance of the employment in the two industrial areas were the two
companies were established; enhancement of investments and participation of the
domestic capital in small and medium-sized enterprises in horizontal industry and in
service’s related sectors; the export encouragement; product quality improvements.
5. What agency implements this program?
(a) What responsibilities does this organization have generally?
The Romanian Development Agency (RDA) is a specialized body of the central
public administration, subordinated to the Government, implementing its strategy and
economic policy in the field of attracting foreign investment in Romania and co-
ordination of the privatization process.
RDA advises the Romanian Government regarding the legal framework with the aim
to encourage the investments and to facilitate the privatization process.
At present, the Agency has three main responsibilities:
- promotion and assistance to foreign investments;
- co-ordination of the privatization process;
- promotion of Romania’s investment environment image abroad.G/C/W/196
Page 4
 (b) What is its responsibility with respect to the TRIMs measures in the automotive
and shipbuilding sectors?
The responsibility of the RDA with respect to the TRIMs was to issue the Investor
Certificate  (attesting the status of foreign investor) for investments established under
the provisions of the Law no. 71/1994.
For investments made after 1997, the GOR lifted the requirement of prior approval by
the RDA  and the issuance of the  Investor Certificate , through GEO No. 92.
Under the new Romanian legislation there are no additional specific procedural
requirements to register an investment other than the common procedure for the
incorporation and registration of a Romanian legal person, which require no prior
administrative consent.
(c) Are there any other GOR agencies or other entities or persons with
responsibility for implementing or otherwise supervising the measures identifiedin question 1?
According the nature of the measures under Law 71/1994, the Ministry of Finance
and Romanian Customs Administration are supervising their implementation.
Basis for the Extension Request
6. The GOR extension request provided to the Council for Trade in Goods asserts that one
reason an extension is necessary is because “of insufficient internal sources of
investment and relatively low rate of foreign investment.”  Also, discussed is “important
changes in the structure of its indust ry.” Please elaborate on these issues.
The overall economic deterioration in the last year s (negative rate of GDP being         -6.9%
in 1997 and -7.3% in 1998) has increased the difficulties faced by Romanian economy.
Thus, it is obvious that the national economy can not rely only on its own internal resources
of investment, new and major inflows of external resources, including through FDI, being
most needed.
The FDIs in Romania continued to increase over  the last years; however, the levels are still
modest compared with Romanian economy’s needs as well as with trends in other Central andEastern European countries.
This is why it is decisive to seize at maxi mum the impulse coming from grants and existing
and new direct investments, the main goal being to stop the overall economic decline and to
achieve sustainable economic recovery.
The GOR is committed to continue the privatiz ation, strengthen the structural reforms, to
maintain a favourable regime for investments as well as to ensure greater stability of policies
in key business related areas, aiming mainly to moderate the risk of adverse effects on the
development of economic operators’ activity generated by the accelerated process of
transition.
Romania’s economy also reflects the post 1989 focus on light industry (textiles, clothing and
furniture). It is acknowledged that auto and sh ipbuilding industrial sectors have to play also
their role in the economic development of Romania. The manufacturing technologies in thesetwo sectors were out of date, highly depreciated necessitating a huge amount of investment
necessary to reinvigorate these industries. Moreover, the auto and shipbuilding industries’
performances were by almost 15 years back comparing with like international competitive
industries.
7. Regarding the five-year period:G/C/W/196
Page 5
(a) How was this period determined?
The five-year period was determined on the basis of the concluded contracts under
the Law 71/1994.
(b) What was the empirical evid ence examined to gauge that an additional five years
would be required?
The five-year period is required in order to comply with the commitments under the
above mentioned contracts.
(c) How is it certain that if the measures were removed, foreign investment would
decrease?
It would be difficult to presume that the elimination of the existing TRIMs before the
end of the granted period will not affect the business strategy plans of the respective
companies based on foreign direct investment.
Also, the removal could send an inappropriate message for potential new foreign
direct investors on the predictability of the law under which they decide to invest.
The activity of the automotive and shipyard industries, together with the services
generated by them, and its positive effects on other horizontal related industries, due
to the fact that they rely on supplies of other domestic industries as chemistry,
electrotechnics, electronics, metallurgy etc., stimulate a considerable employment.
It appears also that according to the developmental plans of these two industries new
investments are foreseen which will increase the demand for necessary materials and
raw materials. This could lead to new investments in these areas, especially through
establishing new small and medium-sized enterprises.
It is expected that on this basis the competitiveness will be stimulated as well as the
increase of products’ quality.
8. Please describe the domestic automotive and shipbuilding industries.  What efforts have
they taken to modernize or be more competit ive internationally over the last five years?
The two sectors were characterised by lack of working capital, high debts, reduced
productivity and low use of existing units, which due mainly to the fact that equipment andtechnologies date back to 1970s-1980s.
The domestic car industry is represented by Dacia Renault Automobile S.A ., Daewoo
Automobile Romania S.A.  and ARO S.A .
DAR S.A . has an intensive program of production increase depending on the market demands.
In 1997, DAR S.A.  has begun to produce engines in its new factory with a capacity of 300,000
pieces/year. The 1,500 ccm, 4 cylinders gasoline powered engine is abiding the European
technical standards and equips cars produced by DAR S.A.  Also , DAR S.A.  has begun to
produce gearboxes (200,000 pieces/year).
Till now more than 650 million USD have been  invested in order to modernize technology,
decrease expenditures and consumption with an aim to achieve a high productivity. DAR S.A.
manufactures 10 models .
Before 1995 the former car producer  Automobile Craiova has been producing up to 5,400 cars
per year. Presently  DAR S.A. production goes up to 25,000 cars per year, 300,000 engines and
250,000 transmissions.
At present, Romania has 12 shipyards, located at the Black Sea and the Danube, only three of
them conducting shipbuilding activities.G/C/W/196
Page 6
DMHI S.A. has an intensive program production increase as well. The main products and
services supplied by the company are new shipbuilding and maintenance services. The
investment that has been realized during 1997-1999 consists of equipment, modern
technologies, know-how, with a total amount of 51 million USD.  At DMHI S.A. before this
investment only one ship per year was build. After 1997, they build 11 ships per year (of
9,000 TDW).
Both factories have become very modern, exporting a substantial portion of their productions.
9. Prior to making the decision to request an extension, what measures had the relevant
industries and the GOR undertaken to begin the transition to a system that did not rely
on TRIMs?
(a) When was the decision made to modify Law 71/1994?
Please see the answer to question 3(a) above.
(b) What types of other liberalization adjustments were or were not completed?
For investments made after 1997 there are no more TRIMs. Please see also the
answers to questions 3(a) and 5(b) above.
(c) At what point did the GOR make the decision to stop this process of becoming
TRIMs consistent in regard to the two facilities (or does the process continue)?
Please see the answers to questions 3(a) above and 13 below.
(d) What would the process be for becoming completely TRIMs consistent – (i.e.,
administrative changes, legislative changes)?
The Romanian legislation is not retroactive. Concerning the impact of changing the
conditions established through a contract and a Law, please see also answers to
questions no. 7(c) above and 13 below.
(e)  How quickly could such changes be enacted?
For the overall investment regime in Romania all the changes have already been
enacted.
10. Article 5.3 of the TRIMs Agreement requires the Council on Trade in Goods to conclude
that an applicant for an extension has demonstrated “particular difficulties”.
(a) How does the GOR consider that the difficulties it has described fit this
requirement?
Romania’s transformation to a market economy began in a very difficult economic,
social and political context, with little history of market-based economic reform. In
ten years into transition, Romania has maintained its liberal investment regime andcompleted the regulatory framework for private sector development.
Unfortunately, Romania has had more difficulty in completing the shift to the private
sector of state-owned enterprises. Privatization remains the preferred option, rather
than closure. This priority has made difficult to finance worker adjustment programs
in order to ease closure.
In this context, the foreign direct investment has played only a minor role in
Romania’s transition between 1989 and 1996, with levels becoming more significantonly in 1997 and 1998. Romania has accelerated privatization (since 1996),
recognized to be a magnet for foreig n investors, who have helped restore
competitiveness by new capital, technology and management techniques.
(b) What makes these difficulties different from other Members’ situations?G/C/W/196
Page 7
These difficulties might be comparable to those in other countries requesting
extended transition period. The requests seeking the extension of the five-year
transition period show the specific difficulties that requesting countries are facing.
Nevertheless, the reference to “particular difficulties” is not meant to be an element
allowing comparison of difficulties and situations across members. The “particular
difficulties” faced by Romania are due to the transition to the market economy in adecapitalised internal environment.
11. What types of efforts were undertaken to prepare the relevant industries for the
removal of TRIMs on 1 January 2000?  Specifically:
(a) Did the GOR conduct discussions with the private sector and with labour
organizations at that time and even we ll before the completion of the Uruguay
Round to inform them that these policies would be eliminated in 2000?
At the completion of the Uruguay Round the Romanian economy was in its early
stages of transition to a market economy, the private sector being at that time
relatively small and insufficient organized .
The authorities in charge with drawing legislation for the domain were informed
about the TRIMs provisions contained in the Marrakesh Agreement establishing the
WTO and of the objective emphasized by the Marrakesh Declaration that thisAgreement can enter into force by 1
st January 1995 or as early as possible thereafter.
The authorities were also aware about the flexibility provided by the Article 5.3 of the
TRIMs Agreement.
 (b) What kind of domestic consultation process concerning TRIMs has been
conducted over the past five years?
The process of domestic consultations has led to the elimination of the inconsistent
TRIMs from the new legislation.
(c) What administrative or legislative steps beyond modifying existing legislation
have which offices and officials explored with which industry and labour
groups?
The Romanian Development Agency explored with potential investors and the
economic environment the possible modification of the investment regime with a
view to find a solution to increasing investments and to support the process of
privatization.
(d) What plans exist for adjusting to the el imination of such TRIMs if there is no
grant of an extension available from the Council?
It is to be recalled that the legislation related to the investment regime enacted after
1997 does not include TRIMs anymore.
As for the existing TRIMs under the Law 71/1994 it is worth to mention that they
were limited in time from the very beginning. This was reflected also in Romania’s
TRIMs notification.
In the event of an unfavorable decision by the Council to grant Romania the
extension of TRIMs measure it requests, th e GOR will need to determine alternative
and WTO consistent policy measures in order to prevent financial and social
dislocation in the areas of the two investments.
We trust that the Council will take dully into consideration the specific situation of
Romania’s economy and all factors which determined the GOR to present the requestG/C/W/196
Page 8
for extension and it will grant the requested extension. Adjusting to the elimination
would cause great difficulties to Romania as valid contracts would be affected.
12. The GOR states that “the automobile unit is placed in an area with a high
unemployment rate”:
(a) Is there any basis for the assumption that jobs have been created by the
TRIMs-related polices since 1995?  What  was the total employment in the two
industries before the TRIMs policy and what is it at present?
DAR S.A. increased the number of direct jobs from 3,900 to 4,714 and created more
than 2,000 new jobs in the horizontal industries;  DMHI S.A. maintained the 3,500
jobs which otherwise would have been eliminated.
(b) Is there any basis for an assumption that  jobs will be created or saved by the
continuation of the TRIMs-related policy after 1 January 2000?
DAR S.A.  will maintain the jobs and DMHI S.A.  is going to reach its full capacity, i.e.
5,000 jobs.
(c) Which entity, agency or persons analyzed your employment estimates?
Data was taken from the National Commission of Statistics Report.
13. With respect to “development, financial,  and trade needs” referenced in Article 5.3:
(a) How is the maintenance of these TRIMs part of the development plans and
needs of Romania?
As stated by Romania in its notification of TRIMs, the measure is “a part of the
Government program of transition to a market economy, with a view to encouraging
important investments as a supporting instrument for reshaping and modernizing the
economy”.
For the time being the GOR has to face the adverse social consequences of
restructuring the domestic industry, due to the increased pace of privatization in the
last period of time.
The potential car market in Romania is also one of the reason for which the GOR
program includes the revitalizing of the domestic car industry by attracting foreigndirect investments.
The development objectives taken into account by the GOR when introducing these
measures, which are still valid, included the reshaping of the domestic industry by
attracting foreign technologies and export oriented investments, and the improvement
of the access to major markets.
The TRIMs have also been conceived to ensure the strengthening of management
techniques and human resources development. The TRIMs in question are considered
by the GOR as essential for development strategies in the two sectors, and therefore,
such measures need to be maintained for the period established under Law 71/1994.
(b) How long have such TRIMs been pa rt of the development plans and needs?
The TRIMS have been part of the development plans of the GOR beginning with
1994.
(c) How can it be determined that these same development policies will not still be
used and needed after a five-year peri od?  Why should one expect that the
development plans and needs will be different one, two, five or ten-years from
now?G/C/W/196
Page 9
On one hand, at this stage, Romania can not estimate if the needs for maintaining the
TRIMs will be the same after five years.
On the other hand, fully committed to comply with the multilateral system rules, as
stated earlier, Romania has started since 1997 the preparatory legal process aimed at
the elimination of these TRIMs.
Even if after five years the needs would still be in place, the implications of the
elimination of the TRIMs will not be the same  as they are in present. This preliminary
assessment is based on the fact that all the companies involved are aware of the
termination of these measures in 2004, due to the specified period for which they are
supposed to benefit from them under Law 71/1994.
As was mentioned, the subsequent legislation to Law no.71/1994 cancelled any
TRIMs, the above-mentioned law being repealed by GEO No. 92/1997.
The present policy of the GOR regarding foreign investments in Romania - as
reflected in the most recent legislation - complies with European practice and the
relevant dispositions of WTO Agreement and other international agreements and
conventions accepted by Romania.
Notwithstanding the need to continue the current TRIMs for five more years, the
development strategy for the car and shipbuilding industries, including with theforeign direct investment participation, has already been initiated without making
recourse to TRIMs.
(d) What are the financial needs of the GOR related to the maintenance of the
TRIMs?
The financial needs of the GOR to maintain the TRIMs for five more years are related
to the general characteristics of the Romanian industry.
The spread of the positive expected effects of the respective measures was lower that
initially assessed due mainly to the extremely difficult economic situation in the
recent years.
The GOR believes that it will encounter difficulties in removing these measures,
which will add new social strains in the two areas, to those already generated by the
overall restructuring program of industry at a national level.
The removal of these measures will induce increased social costs related to possible
raise of unemployment, losses in budget revenues due to the decrease of activities and
sales of the respective companies. These two main elements will create new pressureson the budget and on keeping the budget deficit under control at a reasonable level.
Furthermore, the removal of these measures in advance of the elapsing time foreseen
by the Law 71/1994 could adversely affect the credibility on the Romanian current
policies aiming to increase the inflow of FDI.
As mentioned, both the car and shipbuilding industries are based on a big network of
suppliers, so called “horizontal industry”. This network includes over 150
commercial companies, supplying more than 9,500 positions, from simplestandardized spare parts to sub-assemblies of great complexity and strictly
specialized.
At the same time, taking into account the overall development of the two sectors, the
direct and indirect employees are es timated to grow to over 200,000 by 2005.G/C/W/196
Page 10
(e) What analysis has been conducted to determine whether the elimination of the
TRIMs would actually increase, decrease, or be neutral concerning the financial
needs of Romania?
The analysis conducted by the Romanian Development Agency shows that the
financial needs of Romania could not be covered by internal investments. At the same
time, it is very important to have a stable and predictable investment regime.Maintaining the facilities given already to investors is crucial for the credibility of
this regime.
(f) Are there any other particular issues th at the GOR believes should be taken into
account with respect to these factors?  Please describe and discuss such issues.
The development strategies for the two economic sectors have foreseen - as for a first
stage - to diminish the discrepancies with international similar products.
As for a subsequent stage, based on the assumption that Romanian car and naval
products will reach the same level of competitiveness and profitability with the one of
competitors, the two economic sectors will further develop relying on market
demands, implying huge human and investment efforts.
Even in these circumstances, a continued effort to attract new producers for
subassemblies and spare parts will remain needed.
Maintaining the TRIMs for another five years will also permit to address the concern
of current investors, particularly in the sectors involved, who fear they may be at a
serious disadvantages vis-à-vis new investors. If the TRIMs are removed at this stage,
the facilities granted to investments established under Law 71/1994 would also be
automatically removed.
Thus, the current investors established under Law 71/1994 would be seriously
affected in pursuing the implementation of their investment and business strategies
and plans.
In Romania’s view, in the case of a specific transition economy, faced with a large
range of restructuring measures, the removal of the concerned measures at this pointin time, would have to be justified by the possible adverse effects. At the time being
the positive impact on the development of particular sectors benefiting from these
measures are not outweighed by adverse effects.
14. Has the GOR considered other non-TRIMs options that would protect the domestic
industries but would allow for the elimination of your TRIMs regime as it currentlyexists?  For example:
(a) Why is it necessary to retain both  the local content and export requirement
portions of the programs?
(b) Please describe the analysis/research that the GOR undertook to ensure that
both measures need to be retained in both industries.
These two requirements aim at ensuring a development not only of the companies
established under Law 71/1994 but also their potential suppliers. This multiplyingeffect should be backed by an export requ irement for two reasons: ensuring that the
quality of the products is competitive on the international market and, for the period
when local demand is diminished by poor incomes, to ensure a market for Romanian
products.G/C/W/196
Page 11
Statistics
15. What is the GOR’s estimation of production amounts for and amount of investment in
the domestic manufacturers covered by the measures under discussion?
The annual estimations of turnover for  DAR S.A. for 2000 and 2001  are 380 mill. US $ and
450 mill US $ respectively.
For DMHI S.A. the estimations are :
                           
           Turnover   ( Mill. $)   / Year
  80 2000
100 2001
130 2002
160 2003
202 2004
16. What are the destinations for exports from  Romania for 1998 (i.e., what countries) by
the facilities covered by the extension request and what are the values and quantities of
these exports.
The destinations for exports, values by the facilities covered by the extension request, since
1998, were:
DMHI S.A.:
            Year       Value (Mill. $) Destinations
1998 18 (repairements) Greece, Malta, Portugal, Italy
1999 50, from which:
22 (repairements) Malta, Portugal, Turkey, Greece
28 (constructions) Holland, Norway, Cyprus
DAR S.A.:
        Year Value ( Mill.$) Destinations
1998 37,2 
1999  91 Poland, Egypt, Russia, Hungary,
Macedonia, Slovakia, Slovenia, Bulgaria
II.  REPLIES TO WRITTEN QUESTIONS FROM JAPAN
Question 1:
Please explain in detail and in concrete terms the effort your government has made to abolish
the TRIMs by December 1999, including the le gal schedules leading to the abolition.
See answers to questions 3(a) and 9 from USA.
Question 2:
Please explain in detail the factors that prev ented your government from abolishing the TRIMs
as scheduled.
See answers to questions 6 and 13 from USA.G/C/W/196
Page 12
Question 3:
Please explain in detail the TRIMs for whic h your government seeks an extension of the
transition period. Also, please provide us with  the domestic legal basis on which such TRIM
measures are taken.
See answer to question 4(a) from USA.
The legal basis on which such TRIMs were taken is entirely described in Romania’s notification
under Article 5.1 of the TRIMs Ag reement (G/TRI MS/N/1/ROM/1).
Question 4:
Any extension must be limited to the minimum necessary to phase out the TRIMs. Please
explain the reasons why your government has judged  that the specific length of the extension
you seek is necessary.
See answers to questions 7(a), (b) from USA.
Question 5:
Please explain in detail the phase–out schedule (including necessary legal actions to be taken)
leading to the ultimate abolition of TRIMs, assumi ng that a transition peri od is granted. In this
light, please note that Japan is of the view th at even if an extension was granted this time,
another extension after the initial extension should not be granted.
See answers to questions 3(a), (c) and 11 (d) from USA.
___________