AGREEMENT BETWEEN JAPANAND GEORGIAFOR THE LIBERALISATION, PROMOTION
AND PROTECTION OF INVESTMENT

AGREEMENT BETWEEN JAPANAND GEORGIAFOR THE LIBERALISATION, PROMOTION
AND PROTECTION OF INVESTMENT
Japan and Georgia (hereinafter referred to as “theContracting Parties”),
Desiring to further promote investment in order tostrengthen the economic relationship between theContracting Parties;
Recognising that a stable framework for investment
will maximise effective utilisation of economic resources;
Recognising the growing importance of the progressive
liberalisation of investment for stimulating initiative ofinvestors and for promoting prosperity in the Contracting
Parties;
Recognising that these objectives can be achieved
without relaxing health, safety and environmental measuresof general application; andRecognising the importance of the cooperative
relationship between labour and management in promoting
investment between the Contracting Parties;
Have agreed as follows:
CHAPTER IINVESTMENT
Article 1
Definitions
For the purposes of this Agreement:(a)the term “investment” means every kind of asset
owned or controlled, directly or indirectly, by
an investor of a Contracting Party, that is madein the Territory of the other Contracting Partyin accordance with applicable laws andregulations of the other Contracting Party, andthat has the characteristics of an investment,
including such characteristics as the commitmentof capital or other resources, the expectation ofgain or profit, or the assumption of risk. Forms
that an investment may take shall include:

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(i)

an enterprise and a branch of an enterprise;(ii)

shares, stocks or other forms of equity
participation in an enterprise;(iii)

bonds, debentures, loans and other forms of
debt;

(iv)

futures, options and other derivatives;(v)

rights under contracts, including turnkey,
construction, management, production orrevenue-sharing contracts;(vi)

claims to money and to any performance undercontract having a financial value;(vii)

intellectual property rights, including
copyrights and related rights, patent rights
and rights relating to utility models,trademarks, industrial designs, layoutdesigns of integrated circuits, newvarieties of plants, trade names,
indications of source or geographicalindications and undisclosed information;(viii)

rights conferred pursuant to laws andregulations or contracts such asconcessions, licences, authorisations andpermits, including those for the explorationand exploitation of natural resources; and(ix)

any other tangible and intangible, movableand immovable property, and any related
property rights, such as leases, mortgages,
liens and pledges;

A change in the form in which assets are invested
does not affect their character as an investment.
For the purposes of this Agreement, investment
does not mean an order or judgement entered in a
judicial or administrative action or an arbitralaward rendered with regard to an investment.
(b)

the term “investor of a Contracting Party” means:(i)a natural person having the nationality ofthat Contracting Party in accordance with
its laws and regulations; or

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(ii)

an enterprise of that Contracting Party,

that seeks to make, is making or has madeinvestments in the Territory of the other
Contracting Party;(c)the term “enterprise” means any legal entity duly
constituted or organised under the applicablelaws and regulations, whether or not for profit,
and whether private or government owned orcontrolled, including any corporation, trust,
partnership, sole proprietorship, joint venture,association, organisation or company;(d)the term “enterprise of a Contracting Party”
means an enterprise duly constituted or organised
under the applicable laws and regulations of thatContracting Party;(e)the term “investment activities” means
establishment, acquisition, expansion, operation,
management, maintenance, use, enjoyment and saleor other disposal of investments;(f)the term “Territory” means:(i)with respect to Georgia, the territory
defined in accordance with Georgian
legislation, including land territory, its
subsoil and the air space over them, andinternal waters and territorial sea
including the seabed, its subsoil and theair space over them, in respect of which
Georgia exercises sovereignty in accordancewith international law, as well as thecontiguous zone, the exclusive economic zone
and the continental shelf, in respect ofwhich Georgia may exercise its sovereign
rights or jurisdiction in accordance withinternational law; and(ii)

with respect to Japan, the territory ofJapan, and the exclusive economic zone andthe continental shelf with respect to which
Japan exercises sovereign rights or
jurisdiction in accordance withinternational law;

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(g)

the term “existing” means being in effect on thedate of entry into force of this Agreement;(h)the term “freely usable currency” means freely
usable currency as defined under the Articles ofAgreement of the International Monetary Fund;(i)the term “the WTO Agreement” means the Marrakesh
Agreement Establishing the World Trade
Organization, done at Marrakesh, April 15, 1994;(j)

the term “the TRIPS Agreement” means theAgreement on Trade-Related Aspects ofIntellectual Property Rights in Annex 1C to the
WTO Agreement;(k)the term “claimant” means an investor of aContracting Party that is a party to an
investment dispute with the other Contracting
Party;(l)the term “respondent” means the Contracting Party
that is a party to an investment dispute;(m)the term “disputing party” means either theclaimant or the respondent;(n)the term “disputing parties” means the claimant
and the respondent;(o)the term “non-disputing Party” means theContracting Party that is not a party to an
investment dispute;(p)the term “ICSID” means the International Centre
for Settlement of Investment Disputes;(q)

the term “ICSID Additional Facility Rules” means
the Rules Governing the Additional Facility for
the Administration of Proceedings by the
Secretariat of the International Centre for
Settlement of Investment Disputes;(r)

the term “ICSID Convention” means the Convention
on the Settlement of Investment Disputes between
States and Nationals of other States, done at
Washington, March 18, 1965;(s)

the term “New York Convention” means theConvention on the Recognition and Enforcement of
Foreign Arbitral Awards, done at New York, June
10, 1958; and

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(t)

the term “UNCITRAL Arbitration Rules” means the
Arbitration Rules of the United Nations
Commission on International Trade Law, as revisedin 2010.
Article 2
National Treatment

1.
Each Contracting Party shall in its Territory accord
to investors of the other Contracting Party and to theirinvestments treatment no less favourable than the treatment
it accords in like circumstances to its own investors andto their investments with respect to investment activities.
2.
Paragraph 1 shall not be construed to prevent aContracting Party from adopting or maintaining a measurethat prescribes special formalities in connection withinvestment activities of investors of the other Contracting
Party in its Territory, provided that such special
formalities do not impair the substance of the rights ofsuch investors under this Agreement.
Article 3
Most-Favoured-Nation Treatment
1.
Each Contracting Party shall in its Territory accord
to investors of the other Contracting Party and to theirinvestments treatment no less favourable than the treatment
it accords in like circumstances to investors of a nonContracting Party and to their investments with respect toinvestment activities.
2.
For greater certainty, the treatment referred to inparagraph 1 does not encompass international disputesettlement procedures or mechanisms under this and anyother international agreement.
3.
The provisions of this Article shall not be construed
so as to oblige a Contracting Party to extend to investorsof the other Contracting Party and to their investments any
preferential treatment by virtue of any existing or future
regional economic integration union or customs union towhich the former Contracting Party is a party.

- 5 -Article 4
General Treatment
Each Contracting Party shall in its Territory accord
to investments of investors of the other Contracting Party
fair and equitable treatment and full protection andsecurity in accordance with customary international law.
Article 5
Access to the Courts of Justice
Each Contracting Party shall in its Territory accord
to investors of the other Contracting Party treatment noless favourable than the treatment which it accords in likecircumstances to its own investors or investors of a nonContracting Party with respect to access to the courts ofjustice and administrative tribunals and agencies in all
degrees of jurisdiction, both in pursuit and in defence ofsuch investors’ rights.
Article 6
Prohibition of Performance Requirements
1.
Neither Contracting Party may impose or enforce any of
the following requirements, or enforce any commitment or
undertaking, in connection with investment activities of aninvestor of a Contracting Party or of a non-Contracting
Party in its Territory:(a)to export a given level or percentage of goods orservices;(b)to achieve a given level or percentage ofdomestic content;(c)to purchase, use or accord a preference to goods
produced or services provided in its Territory,or to purchase goods or services from a natural
person or an enterprise in its Territory;(d)to relate in any way the volume or value ofimports to the volume or value of exports or to
the amount of foreign exchange inflows associatedwith an investment of the investor;(e)

to restrict sales of goods or services in its
Territory that an investment of the investor
produces or provides by relating such sales inany way to the volume or value of its exports orforeign exchange earnings;(f)to restrict the exportation or sale for export;

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(g)

to appoint, as executives, managers or members ofboard of directors, natural persons of any
particular nationality;(h)to adopt:(i)

a given rate or amount of royalty under alicence contract; or(ii)

a given duration of the term of a licence
contract,in regard to any licence contract freely enteredinto between the investor and a natural person or
an enterprise in its Territory, whether it has
been entered into or not, provided that therequirement is imposed or the commitment or
undertaking is enforced by an exercise ofgovernmental authority of the Contracting Party;
Note:

A “licence contract” referred to in thissubparagraph means any licence contract
concerning transfer of technology, a
production process, or other proprietaryknowledge.

(i)to locate the headquarters of the investor for a
specific region or the world market in its
Territory;(j)to hire a given number or percentage of its
nationals; or(k)to supply one or more of the goods that theinvestor produces or the services that theinvestor provides to a specific region or theworld market, exclusively from its Territory.

2.
Neither Contracting Party may condition the receipt orcontinued receipt of an advantage, in connection withinvestment activities of an investor of a Contracting Partyor of a non-Contracting Party in its Territory, oncompliance with any of the following requirements:(a)to achieve a given level or percentage ofdomestic content;(b)

to purchase, use or accord a preference to goods
produced in its Territory, or to purchase goods
from a natural person or an enterprise in its
Territory;

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3.

(c)

to relate in any way the volume or value ofimports to the volume or value of exports or to
the amount of foreign exchange inflows associatedwith an investment of the investor;(d)to restrict sales of goods or services in its
Territory that an investment of the investor
produces or provides by relating such sales inany way to the volume or value of its exports orforeign exchange earnings; or(e)to restrict the exportation or sale for export.

(a)Subparagraph 1(h) shall not apply when therequirement is imposed or the commitment or
undertaking is enforced by a court of justice,administrative tribunal or competition authority
to remedy an alleged violation of competition
laws.

(b)

Subparagraphs 2(a) and 2(b) shall not apply torequirements imposed by an importing Contracting
Party relating to the content of goods necessary
to qualify for preferential tariffs orpreferential quotas.

4.
Paragraphs 1 and 2 shall not apply to any requirement
other than the requirements set out in those paragraphs.
Article 7
Non-Conforming Measures
1.

Articles 2, 3 and 6 shall not apply to:(a)any existing non-conforming measure that ismaintained by the central government or aregional or a prefectural government of aContracting Party, as set out in the Schedule ofeach Contracting Party in Annex I;(b)any existing non-conforming measure that ismaintained by a local government other than aregional or a prefectural government of aContracting Party referred to in subparagraph
(a);

(c)

the continuation or prompt renewal of any nonconforming measure referred to in subparagraphs(a) and (b); or

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(d)

an amendment or modification to any nonconforming measure referred to in subparagraphs(a) and (b), provided that the amendment or
modification does not decrease the conformity ofthe measure, as it existed immediately before theamendment or modification, with Articles 2, 3 and6.

2.
Articles 2, 3 and 6 shall not apply to any measurethat a Contracting Party adopts or maintains with respect
to sectors, sub-sectors or activities set out in its
Schedule in Annex II.
3.
Neither Contracting Party shall, under any measure
adopted after the date of entry into force of thisAgreement and covered by its Schedule in Annex II, require
an investor of the other Contracting Party, by reason of
its nationality, to sell or otherwise dispose of aninvestment that exists at the time when the measure becomes
effective.
4.
In cases where a Contracting Party makes an amendment
or a modification to any existing non-conforming measure
set out in its Schedule in Annex I or where a Contracting
Party adopts any new or more restrictive measure withrespect to sectors, sub-sectors or activities set out in
its Schedule in Annex II after the date of entry into forceof this Agreement, the Contracting Party shall, prior to
the implementation of the amendment or modification or the
new or more restrictive measure, or in exceptional
circumstances, as soon as possible thereafter:(a)notify the other Contracting Party of detailed
information on such amendment or modification, or
such measure; and(b)hold, upon request by the other Contracting
Party, consultations in good-faith with the other
Contracting Party with a view to achieving mutual
satisfaction.

5.
Each Contracting Party shall endeavour, whereappropriate, to reduce or eliminate the non-conforming
measures specified in its Schedules in Annexes I and II
respectively.
6.
Articles 2 and 3 shall not apply to any measure
covered by the exceptions to, or derogations from,obligations under Articles 3 and 4 of the TRIPS Agreement,as specifically provided in Articles 3 through 5 of the
TRIPS Agreement.

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7.
Articles 2, 3 and 6 shall not apply to any measurethat a Contracting Party adopts or maintains with respect
to government procurement.
Article 8
Transparency
1.
Each Contracting Party shall promptly publish, orotherwise make publicly available, its laws, regulations,administrative procedures, administrative rulings andjudicial decisions of general application as well asinternational agreements which pertain to or affect theimplementation and operation of this Agreement.
2.
Each Contracting Party shall, upon request by theother Contracting Party, promptly respond to specificquestions and provide that other Contracting Party withinformation on matters set out in paragraph 1.
3.
Paragraphs 1 and 2 shall not be construed so as tooblige either Contracting Party to disclose confidential
information, which is designated as confidential, or thedisclosure of which would impede law enforcement orotherwise be contrary to the public interest, or which
would prejudice privacy or legitimate commercial interests.
Article 9
Measures against Corruption
Each Contracting Party shall ensure that measures andefforts are undertaken to prevent and combat corruption
regarding matters covered by this Agreement in accordancewith its laws and regulations.
Article 10
Entry, Sojourn and Residence of Investors
Each Contracting Party shall, in accordance with its
laws and regulations, give sympathetic consideration toapplications for entry, sojourn and residence of a natural
person having the nationality of the other Contracting
Party and a personnel employed by, and an executive, amanager and a member of the board of directors of, anenterprise of the other Contracting Party, who wishes toenter the territory of the former Contracting Party andremain therein for the purpose of investment activities.

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Article 11
Expropriation and Compensation
1.
Neither Contracting Party shall expropriate or
nationalise an investment in its Territory of an investorof the other Contracting Party or take any measureequivalent to expropriation or nationalisation (hereinafterreferred to as “expropriation”) except:(a)for a public purpose;(b)in a non-discriminatory manner;(c)upon payment of prompt, adequate and effective
compensation in accordance with paragraphs 2 and
3; and(d)in accordance with due process of law.

2.
The compensation shall be equivalent to the fairmarket value of the expropriated investments at the time
when the expropriation was publicly announced or when the
expropriation occurred, whichever is earlier. The fairmarket value shall not reflect any change in value
occurring because the expropriation had become publicly
known earlier.
3.
The compensation shall be paid without delay and shall
include interest at a commercially reasonable rate, taking
into account the length of time until the time of payment.
It shall be effectively realisable and freely transferable
and shall be freely convertible into the currency of theContracting Party of the investors concerned, and into
freely usable currency, at the market exchange rate
prevailing on the date of expropriation.
4.
Non-discriminatory regulatory actions by a Contracting
Party that are designed and applied to protect legitimate
public welfare objectives, such as public health, safety
and the environment, do not constitute expropriation,
except in rare circumstances.
5.
This Article does not apply to the issuance ofcompulsory licences granted in relation to intellectual
property rights in accordance with the TRIPS Agreement, orto the revocation, limitation or creation of intellectual
property rights, to the extent that such issuance,
revocation, limitation or creation is consistent with the
TRIPS Agreement.

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Article 12
Protection from Strife
1.
Each Contracting Party shall accord to investors of
the other Contracting Party that have suffered loss ordamage relating to their investments in the Territory of
the former Contracting Party due to armed conflict or astate of emergency such as revolution, insurrection, civil
disturbance or any other similar event in the Territory ofthat former Contracting Party, treatment, as regards
restitution, indemnification, compensation or any othersettlement, that is no less favourable than that which it
accords to its own investors or to investors of a nonContracting Party, whichever is more favourable to theinvestors of the other Contracting Party.
2.
Any payment as a means of settlement referred to inparagraph 1 shall be effectively realisable, freelytransferable and freely convertible at the market exchange
rate into freely usable currencies.
3.
Neither Contracting Party shall derogate from its
obligation under paragraph 1 by reason of its measurestaken pursuant to paragraph 2 of Article 15.
Article 13
Subrogation
If a Contracting Party or its designated agency makes
a payment to any investor of that Contracting Party under
an indemnity, guarantee or insurance contract, pertaining
to an investment of such investor in the Territory of theother Contracting Party, the latter Contracting Party shallrecognise the assignment to the former Contracting Party or
its designated agency of any right or claim of suchinvestor on account of which such payment is made and shallrecognise the right of the former Contracting Party or its
designated agency to exercise by virtue of subrogation any
such right or claim to the same extent as the originalright or claim of the investor. As regards payment to bemade to that former Contracting Party or its designatedagency by virtue of such assignment of right or claim andthe transfer of such payment, the provisions of Articles
11, 12 and 14 shall apply mutatis mutandis.

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Article 14
Transfers
1.
Each Contracting Party shall ensure that all transfers
relating to investments in its Territory of an investor of
the other Contracting Party may be freely made into and out
of its Territory without delay. Such transfers shall
include, in particular:(a)the initial capital and additional amounts tomaintain or increase investments;(b)

profits, interest, capital gains, dividends,
royalties, fees or other current incomes accruing
from investments;(c)payments made under a contract including loan
payments in connection with investments;(d)proceeds of the total or partial sale or
liquidation of investments;(e)earnings and remuneration of personnel fromabroad who work in connection with investments in
the Territory of the former Contracting Party;(f)payments made in accordance with Articles 11 and
12; and(g)payments arising out of a dispute.

2.
Each Contracting Party shall further ensure that suchtransfers may be made without delay in freely usable
currencies at the market exchange rate prevailing on thedate of the transfer.
3.
Notwithstanding paragraphs 1 and 2, a Contracting
Party may delay or prevent a transfer through theequitable, non-discriminatory and good-faith application ofits laws and regulations relating to:(a)payment of taxes;(b)bankruptcy, insolvency or the protection of therights of creditors;(c)issuing, trading or dealing in securities,
futures, options or derivatives;(d)criminal or penal offences;- 13 -

(e)reporting or record keeping of transfers ofcurrency or other monetary instruments whennecessary to assist law enforcement or financial
regulatory authorities; or(f)ensuring compliance with orders or judgements in
adjudicatory proceedings.
Article 15
General and Security Exceptions

1.
Subject to the requirement that such measures are notapplied by a Contracting Party in a manner which would
constitute a means of arbitrary or unjustifiable
discrimination against, or a disguised restriction on
investors of the other Contracting Party and theirinvestments in the Territory of the former Contracting
Party, nothing in this Agreement shall be construed so as
to prevent the former Contracting Party from adopting or
enforcing measures:(a)necessary to protect human, animal or plant lifeor health;(b)necessary to protect public morals or to maintainpublic order, provided that the public order
exception may only be invoked where a genuine andsufficiently serious threat is posed to one of
the fundamental interests of society;(c)necessary to secure compliance with the laws or
regulations which are not inconsistent with theprovisions of this Agreement including thoserelating to:

(d)

(i)

the prevention of deceptive and fraudulent
practices or to deal with the effects of a
default on contract;(ii)

the protection of the privacy of theindividual in relation to the processing anddissemination of personal data and theprotection of confidentiality of personal
records and accounts; or(iii)

safety; or

imposed for the protection of national treasuresof artistic, historic or archaeological value.

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2.
Subject to paragraph 3 of Article 12, nothing in thisAgreement shall be construed to prevent a Contracting Party
from adopting or enforcing measures:
(a)

(b)

which it considers necessary for the protectionof its essential security interests:(i)taken in time of war, armed conflict, orother emergency in that Contracting Party or
in international relations; or(ii)relating to the implementation of national
policies or international agreements
respecting the non-proliferation of weapons;orin pursuance of its obligations under the United
Nations Charter for the maintenance ofinternational peace and security.

3.
Nothing in this Agreement shall be construed torequire a Contracting Party to furnish or allow access toany information the disclosure of which it determines to becontrary to its essential security interests.
Article 16
Temporary Safeguard Measures
1.
A Contracting Party may adopt or maintain restrictive
measures with regard to cross-border capital transactions
as well as payments or transfers including transfers
referred to in Article 14 for transactions related toinvestments:

2.

(a)

in the event of serious balance-of-payments andexternal financial difficulties or threat
thereof; or(b)in exceptional cases where movements of capitalcause or threaten to cause serious difficulties
for macroeconomic management, in particularmonetary and exchange rate policies.

Restrictive measures referred to in paragraph 1 shall:(a)be applied in such a manner that the other
Contracting Party is treated no less favourably
than any non-Contracting Party;(b)

be consistent with the Articles of Agreement of
the International Monetary Fund;- 15 -

(c)not exceed those necessary to deal with thecircumstances set out in paragraph 1;(d)be temporary and be phased out progressively as
the situation specified in paragraph 1 improves;(e)be promptly notified to the other Contracting
Party; and(f)avoid unnecessary damages to the commercial,economic and financial interests of the other
Contracting Party.
Article 17
Prudential Measures

1.
Notwithstanding any other provisions of thisAgreement, a Contracting Party shall not be prevented fromtaking measures relating to financial services forprudential reasons, including measures for the protectionof investors, depositors, policy holders or persons to whoma fiduciary duty is owed by an enterprise supplying
financial services, or to ensure the integrity andstability of its financial system.
2.
Where the measures taken by a Contracting Party
pursuant to paragraph 1 do not conform with this Agreement,
they shall not be used as a means of avoiding theobligations of the Contracting Party under this Agreement.
Article 18Intellectual Property Rights
1.
The Contracting Parties shall grant and ensure theadequate and effective protection of intellectual property
rights, and promote efficiency and transparency inintellectual property protection system. For this purpose,
the Contracting Parties shall promptly consult with eachother at the request of either Contracting Party.
Depending on the results of the consultation, eachContracting Party shall, in accordance with its laws andregulations, take appropriate measures to remove thefactors which are recognised as having adverse effects tothe investments of investors of the other Contracting
Party.
2.
Nothing in this Agreement shall affect the rights andobligations of the Contracting Parties under multilateralagreements in respect of protection of intellectual
property rights to which the Contracting Parties are
parties.

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3.
Nothing in this Agreement shall be construed so as tooblige either Contracting Party to extend to investors of
the other Contracting Party and to their investments
treatment accorded to investors of a non-Contracting Party
and to their investments by virtue of multilateralagreements in respect of protection of intellectual
property rights, to which the former Contracting Party is aparty.
Article 19
Taxation Measures
1.
Nothing in this Agreement shall affect the rights andobligations of either Contracting Party under any tax
convention. In the event of any inconsistency between thisAgreement and any such convention, that convention shallprevail to the extent of the inconsistency.
2.
Articles 2, 3 and 6 shall not apply to taxation
measures.
Article 20
Health, Safety and Environmental Measuresand Labour Standards
Each Contracting Party recognises that it isinappropriate to encourage investment by investors of theother Contracting Party and of a non-Contracting Party byrelaxing its health, safety or environmental measures, orby lowering its labour standards. To this effect, eachContracting Party should not waive or otherwise derogate
from such measures or standards as an encouragement for theestablishment, acquisition or expansion of investments in
its Territory by investors of the other Contracting Party
and of a non-Contracting Party.
Article 21
Denial of Benefits
1.
A Contracting Party may deny the benefits of thisAgreement to an investor of the other Contracting Party
that is an enterprise of the other Contracting Party and to
its investments if the enterprise is owned or controlled bya natural person or an enterprise of a non-Contracting
Party and the denying Contracting Party:(a)does not maintain diplomatic relations with the
non-Contracting Party; or- 17 -

(b)adopts or maintains measures with respect to the
non-Contracting Party that prohibit transactions
with the enterprise or that would be violated or
circumvented if the benefits of this Agreement
were accorded to the enterprise or to its
investments.

2.
A Contracting Party may deny the benefits of thisAgreement to an investor of the other Contracting Party
that is an enterprise of the other Contracting Party and to
its investments if the enterprise is owned or controlled bya natural person or an enterprise of a non-Contracting
Party or of the denying Contracting Party and theenterprise of the other Contracting Party has no
substantial business activities in the Territory of theother Contracting Party.
3.

For the purpose of this Article, an enterprise is:(a)“owned” by a natural person or an enterprise of aContracting Party or of a non-Contracting Party
if more than 50 percent of the equity interest in
it is beneficially owned by the natural person or
the enterprise; and(b)“controlled” by a natural person or an enterpriseof a Contracting Party or of a non-Contracting
Party if the natural person or the enterprise has
the power to name a majority of its directors orotherwise to legally direct its actions.
CHAPTER IIDISPUTE SETTLEMENT

Article 22
Settlement of Dispute between the Contracting Parties
1.
Each Contracting Party shall accord sympathetic
consideration to, and shall afford adequate opportunity for
consultation regarding, such representations as the other
Contracting Party may make with respect to any matter
affecting the implementation of this Agreement.

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2.
Any dispute between the Contracting Parties as to theinterpretation and application of this Agreement, notsatisfactorily resolved by consultations through diplomaticchannels, shall be referred for decision to an arbitration
board. Such arbitration board shall be constituted foreach dispute in the following way. Within 60 days from thedate of receipt by either Contracting Party from the other
Contracting Party of a note requesting arbitration of the
dispute, each Contracting Party shall appoint anarbitrator. The two arbitrators shall select a third
arbitrator who, upon approval by the Contracting Parties,
shall be appointed as the Chairperson, provided that thethird arbitrator shall not be a national of either
Contracting Party. The Chairperson shall be appointed
within 60 days from the date of appointment of the othertwo arbitrators.
3.
If the necessary appointments referred to in paragraph2 have not been made within the periods referred to in thatparagraph, either Contracting Party may, unless otherwise
agreed, request the Secretary-General of the Permanent
Court of Arbitration at The Hague to make suchappointments.
4.
The arbitration board shall determine its own
procedural rules, after consultation with the Contracting
Parties. The arbitration board shall decide the dispute inaccordance with this Agreement and the rules and principles
of international law applicable to the subject matter. The
arbitration board shall within a reasonable period of timereach its decision by a majority of votes. Such decision
shall be final and binding.
5.
Each Contracting Party shall bear the cost of thearbitrator of its choice and its representation in thearbitral proceedings. The cost of the Chairperson of thearbitration board in discharging his or her duties and theremaining costs of the arbitration board shall be borne
equally by the Contracting Parties, unless the arbitration
board decides otherwise.
Article 23
Settlement of Investment Disputes
between a Contracting Party
and an Investor of the Other Contracting Party
1.
In the event of an investment dispute between theclaimant and the respondent, they should initially seek toresolve the dispute through consultation and negotiation,
which may include the use of non-binding, third-party
procedures.

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2.
In the event that a disputing party considers that an
investment dispute cannot be settled by consultation andnegotiation, the claimant may submit to arbitration under
this Article a claim:(a)that the respondent has breached an obligation
under Chapter I; and(b)that the claimant has incurred loss or damage by
reason of, or arising out of, that breach.

3.
Each Contracting Party hereby consents to thesubmission of a claim to arbitration under this Article inaccordance with this Agreement.
4.
Notwithstanding paragraph 2, an investor of aContracting Party may not submit to arbitration under this
Article:(a)an investment dispute with respect to theestablishment, acquisition or expansion of its
investments; or(b)a claim based on paragraph 1 of Article 8.

5.
At least 90 days before submitting any claim toarbitration under this Article, a claimant shall deliver tothe respondent a written notice of its intention to submit
the claim to arbitration (hereinafter referred to as“notice of intent”). The notice of intent shall specify:(a)the name and address of the claimant;(b)

for each claim, the provision of Chapter I
alleged to have been breached and any otherrelevant provisions;(c)the legal and factual basis for each claim; and(d)the relief sought and the approximate amount ofdamages claimed.

6.
Provided that six months have elapsed since the events
giving rise to the claim, a claimant may submit a claim
referred to in paragraph 2 to the arbitration:(a)under the ICSID Convention, provided that theContracting Parties are parties to the ICSID
Convention;- 20 -

(b)under the ICSID Additional Facility Rules,
provided that either Contracting Party, but notboth, is a party to the ICSID Convention;(c)under the UNCITRAL Arbitration Rules; or(d)if the disputing parties agree, under any otherarbitration institution or arbitration rules.

7.
A claim shall be deemed submitted to arbitration under
this Article when the claimant’s notice of or request forarbitration (hereinafter referred to in this Article as“notice of arbitration”):(a)referred to in paragraph 1 of Article 36 of the
ICSID Convention is received by the SecretaryGeneral of ICSID;(b)referred to in Article 2 of Schedule C of the
ICSID Additional Facility Rules is received by
the Secretary-General of ICSID;(c)referred to in Article 3 of the UNCITRAL
Arbitration Rules, together with the statement ofclaim referred to in Article 20 of the UNCITRAL
Arbitration Rules, is received by the respondent;or(d)under any other arbitration institution or
arbitration rules selected under subparagraph6(d) is received by the respondent, unlessotherwise specified by such institution or insuch rules.

8.
Notwithstanding paragraph 3, no claim may be submitted
to arbitration under this Article if more than three years
have elapsed from the date on which the claimant firstacquired, or should have first acquired, knowledge of thebreach alleged under paragraph 2 and knowledge that theclaimant has incurred loss or damage.
9.
Notwithstanding paragraph 3, no claim may be submitted
to arbitration under this Article unless:(a)the claimant consents in writing to arbitrationin accordance with the procedures set out in this
Article; and- 21 -

(b)the claimant waives in writing any right toinitiate or continue before any administrative
tribunal or court of justice under the law ofeither Contracting Party, or other disputesettlement procedures, any proceedings withrespect to any measure alleged to constitute a
breach referred to in subparagraph 2(a).

10. The waiver provided pursuant to subparagraph 9(b)shall cease to apply where the arbitral tribunal rejects
the claim on the basis of a failure to meet therequirements of paragraphs 5, 6, 8 or 9, or on any otherprocedural or jurisdictional grounds.
11. Notwithstanding subparagraph 9(b), the claimant may
initiate or continue an action that seeks interim
injunctive relief that does not involve the payment ofmonetary damages before an administrative tribunal or courtof justice under the law of the respondent.
12. When a claim is submitted to arbitration under this
Article, the arbitral tribunal shall decide the issues in
dispute in accordance with this Agreement and applicable
rules of international law.
13. The respondent shall deliver to the non-disputing
Party:(a)notice of arbitration no later than 30 days after
the date on which the claim was submitted; and(b)copies of all pleadings filed in the arbitration.

14. The non-disputing Party may, upon written notice tothe disputing parties, make submissions to the arbitral
tribunal on a question of interpretation of this Agreement.
15. In an arbitration under this Article, the respondent
shall not assert, as a defence, counterclaim, right ofsetoff or otherwise, that the claimant has received or will
receive indemnification or other compensation for all orpart of the alleged damages pursuant to an insurance orguarantee contract.
16.

The arbitral tribunal may award only:(a)a judgement whether or not there has been abreach by the respondent of any obligation under
Chapter I, subject to paragraph 4, with respect
to the claimant and its investments; and- 22 -

(b)one or both of the following remedies, only ifthere has been such a breach:(i)monetary damages including applicableinterest; and(ii)

restitution of property, in which case theaward shall provide that the respondent may
pay monetary damages including any
applicable interest, in lieu of restitution.

The arbitral tribunal may also award cost andattorney’s fees in accordance with applicable arbitration
rules.
17. Unless the disputing parties agree otherwise, theplace of arbitration shall be in a country that is a party
to the New York Convention.
18. The award rendered by the arbitral tribunal shall befinal and binding upon the disputing parties. This award
shall be executed in accordance with the applicable laws
and regulations, as well as relevant international law
including the ICSID Convention and the New York Convention,
concerning the execution of award in force in the country
where such execution is sought.
Article 24Service of Documents
1.
Notices and other documents relating to arbitration
under this Chapter shall be served on a Contracting Party
by delivery to:(a)with respect to Japan, Economic Affairs Bureau,
the Ministry of Foreign Affairs; and(b)with respect to Georgia, Ministry of Justice ofGeorgia.

2.
A Contracting Party shall promptly make publicly
available and notify to the other Contracting Party any
change to the name of the authority referred to inparagraph 1.
3.
Each Contracting Party shall make publicly available
the address of its authority referred to in paragraphs 1
and 2.

- 23 -

CHAPTER III
JOINT COMMITTEE
Article 25
Joint Committee
1.
The Contracting Parties shall establish a Joint
Committee (hereinafter referred to as “the Committee”) witha view to accomplishing the objectives of this Agreement.
The functions of the Committee shall be:(a)to discuss and review the implementation andoperation of this Agreement;(b)

to review the non-conforming measures maintained,
amended or modified pursuant to paragraph 1 of
Article 7 for the purpose of contributing to the
reduction or elimination of such non-conforming
measures;(c)to discuss the non-conforming measures adopted or
maintained pursuant to paragraph 2 of Article 7
for the purpose of encouraging favourable
conditions for investors of the Contracting
Parties;(d)to exchange information on and to discuss
investment-related matters within the scope of
this Agreement which relate to improvement ofinvestment environment; and(e)to discuss any other investment-related mattersconcerning this Agreement.

2.
The Committee may, as necessary, make appropriate
recommendations by consensus to the Contracting Parties forthe more effective functioning or the attainment of theobjectives of this Agreement.
3.
The Committee shall be composed of representatives of
the Contracting Parties. The Committee may, upon mutual
consent of the Contracting Parties, invite representativesof relevant entities other than the Governments of theContracting Parties with the necessary expertise relevantto the issues to be discussed, and hold joint meetings withthe private sectors.
4.
The Committee shall determine its own rules ofprocedure to carry out its functions.
5.
The Committee shall meet upon the request of either
Contracting Party.

- 24 -

CHAPTER IV
FINAL PROVISIONS
Article 26
Headings
The headings of the Chapters and Articles of thisAgreement are inserted for convenience of reference onlyand shall not affect the interpretation of this Agreement.
Article 27
Amendments
This Agreement may be amended by mutual writtenconsent of the Contracting Parties, and amendments shallenter into force in the manner as described in paragraph 1
of Article 28 of this Agreement.
Article 28
Final Provisions
1.
The Contracting Parties shall notify each other,through diplomatic channels, of the completion of theirrespective internal procedures necessary for the entry into
force of this Agreement. This Agreement shall enter into
force on the 30th day after the latter of the dates ofreceipt of the notifications. It shall remain in force fora period of 10 years after its entry into force and shallcontinue in force unless terminated as provided for inparagraph 2.
2.
A Contracting Party may, by giving one year advancenotice in writing to the other Contracting Party, terminate
this Agreement at the end of the initial 10 year period orat any time thereafter.
3.
This Agreement shall also apply to all investments ofinvestors of either Contracting Party acquired in the
Territory of the other Contracting Party in accordance withthe laws and regulations of that other Contracting Partyprior to the entry into force of this Agreement. However,this Agreement shall not apply to claims or disputes
arising out of events which occurred prior to its entry
into force.
4.
In respect of investments acquired prior to the dateof termination of this Agreement, the provisions of thisAgreement shall continue to be effective for a period of 10
years from the date of termination of this Agreement.
5.
The Annexes to this Agreement shall form an integral
part of this Agreement.

- 25 -

IN WITNESS WHEREOF, the undersigned, being duly
authorised by their respective Governments, have signed
this Agreement.
DONE in duplicate at Tbilisi, on this twenty-ninth day
of January, 2021 in the English language.

FOR JAPAN:

FOR GEORGIA:
N.T.

村朗

- 26 -

Annex I
Existing Non-Conforming Measures referred toin subparagraph 1(a) of Article 7
1.
The Schedule of a Contracting Party sets out, pursuant
to subparagraph 1(a) of Article 7, its existing measuresthat are not subject to some or all of the obligations
imposed by:

2.

(a)

Article 2;(b)

Article 3; or(c)Article 6.

Each Schedule entry sets out the following elements:(a)“Sector” refers to the sector for which the entry
is made;(b)“Sub-Sector”, where referenced, refers to thespecific sub-sector for which the entry is made;(c)“Industry Classification”, where referenced, andonly for transparency purposes, refers to theactivity covered by the non-conforming measure,according to domestic or international industry
classification codes;(d)“Obligations Concerned” specifies the obligations
referred to in paragraph 1 that, pursuant to
subparagraph 1(a) of Article 7, do not apply tothe listed measure(s);(e)“Measures” identifies the laws, regulations orother measures for which the entry is made. A
measure cited in the “Measures” element:

(f)

(i)

means the measure as amended, continued or
renewed as of the date of entry into forceof this Agreement; and(ii)

includes any subordinate measure adopted or
maintained under the authority of andconsistent with the measure; and“Description” sets out the non-conforming measureor provides a general non-binding description of
the measure for which the entry is made.

- 27 -

3.
In the interpretation of an entry, all elements of theentry shall be considered. An entry shall be interpreted
in the light of the relevant provisions of this Agreement
against which the entry is made, and the “Measures” element
shall prevail over all the other elements.
4.

For the purposes of this Annex:(a)the term “JSIC” means Japan Standard Industrial
Classification set out by the Ministry ofInternal Affairs and Communications of Japan, andrevised on October 30, 2013; and(b)the term “Classification of Economic Activity
GNC006-2016/Rev.2” means Georgian Classificationof Types of Economic Activity set out by the
National Statistics Office of Georgia in 2016.

- 28 -

Schedule of Japan1
1

Sector:Agriculture, Forestry and Fisheries,
and Related Services (except those
covered by the entry No.8 in the
Schedule of Japan in Annex II)

Sub-Sector:
Industry
Classification:

JSIC 01

Agriculture

JSIC 02

Forestry

JSIC 03

Fisheries, except
aquaculture

JSIC 04

Aquaculture

JSIC 6324

Agricultural
cooperatives

JSIC 6325

Fishery and fisheryprocessing cooperatives

JSIC 871

Agriculture, forestry
and fisheries
cooperative
associations, n.e.c.

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

1

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in agriculture, forestry
and fisheries, and related services(except those covered by the entry
No. 8 in the Schedule of Japan in
Annex II) in Japan.

For transparency purposes, entries in this Schedule may include
measures taken by Japan in accordance with Article 15.

- 29 -

2

Sector:Finance

Sub-Sector:

BankingIndustry
Classification:

JSIC 622

Banks, except central
bank

JSIC 631

Financial institutions
for small-businesses

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Deposit Insurance Law (Law No. 34
of 1971), Article 2

Description:

The deposit insurance system only
covers financial institutions whichhave their head offices within thejurisdiction of Japan. The deposit
insurance system does not coverdeposits taken by branches offoreign banks.

- 30 -

3

Sector:Heat Supply

Sub-Sector:
JSIC 3511
Industry
Classification:

Heat supply

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in the heat supply
industry in Japan.

- 31 -

4

Sector:Information and Communications

Sub-Sector:

Telecommunications

Industry
Classification:

JSIC 3700

Head offices primarily
engaged in managerial
operations

JSIC 3711

Regional
telecommunications,
except wired broadcast
telephones

JSIC 3731

Services incidental totelecommunications

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Law concerning Nippon Telegraph andTelephone Corporation, etc. (Law
No. 85 of 1984), Articles 6 and 10

Description:

1.
Nippon Telegraph and Telephone
Corporation may not enter the nameand address in its register ofshareholders if the aggregate of theratio of the voting rights directly
or indirectly held by the persons
set forth in subparagraphs (a)through (c) reaches or exceeds onethird:

Prohibition of Performance
Requirements (Article 6)(a)a natural person who does nothave Japanese nationality;(b)a foreign government or its
representative; and(c)a foreign legal person or aforeign entity.

2.
Any natural person who does nothave Japanese nationality may notassume the office of member of theboard of directors or auditor of
Nippon Telegraph and Telephone
Corporation, Nippon Telegraph andTelephone East Corporation andNippon Telegraph and Telephone West
Corporation.

- 32 -

5

Sector:Information and Communications

Sub-Sector:

Telecommunications and Internet
Based Services

Industry
Classification:

JSIC 3711

Regional
telecommunications,
except wired broadcast
telephones

JSIC 3712

Long-distancetelecommunications

JSIC 3713

Wired broadcast
telephones

JSIC 3719

Miscellaneous fixed
telecommunications

JSIC 3721

Mobiletelecommunications

JSIC 4011

Web portal providers

JSIC 4012

Application services
providers

JSIC 4013

Internet support
services

Note:

The activities covered bythis entry under JSIC 4011 or
4012 are limited to theactivities which are subject
to the registration
obligation under Article 9 of
the Telecommunications
Business Law (Law No. 86 of
1984).

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Articles 27 and 28
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Articles 3 and 4- 33 -

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in telecommunications
and Internet based services inJapan.

- 34 -

6

Sector:Manufacturing and Information andCommunications

Sub-Sector:

Manufacture of Electronic Parts,
Devices and Electronic Circuits andInformation Services

Industry
Classification:

JSIC 2814

Integrated circuits

JSIC 2831

Semiconductor memory
media

JSIC 2832

Optical discs andmagnetic tapes anddiscs

JSIC 2842

Electronic circuit
implementation board

JSIC 3011

Communication equipment
wired

JSIC 3012

Mobile phone and PHS

JSIC 3013

Radio communicationequipment

JSIC 3031

Computer, except
personal computer

JSIC 3032

Personal computer

JSIC 3033

External storages

JSIC 3911

Custom software
services

JSIC 3912

Embedded software
services

JSIC 3913

Package software
services

JSIC 3921

Data processing
services

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Articles 27 and 28- 35 -

Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Articles 3 and 4
Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in manufacturingindustry of electronic parts,
devices and electronic circuits andinformation service industry inJapan.

- 36 -

7

Sector:Manufacturing

Sub-Sector:

Drugs and Medicines and Medical
Devices Manufacturing

Industry
Classification:

JSIC 165

Medicines

JSIC 1653

Biological preparations

Pharmaceutical intermediates in JSIC
Division E (Manufacturing), which
relate to JSIC 165 and 1653.
JSIC 274

Medical instruments andapparatus, and medical
supplies

JSIC 296Electronic equipment

JSIC 2973

Medical measuring
instruments

Note:

The activities covered bythis entry under JSIC 165,
274, 296 or 2973 are limited
to the activities related to
manufacturing industry ofagents against pathogenicorganisms and parasites,
their pharmaceuticalintermediates and speciallycontrolled medical devices.

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3- 37 -

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in biologicalpreparations manufacturing industry,
manufacturing industry of agentsagainst pathogenic organisms andparasites, and their pharmaceuticalintermediates and manufacturingindustry of specially-controlled
medical devices and theiraccessories, and components ofspecially-controlled medical devices
or their accessories in Japan.
For the purposes of this entry:(a)“biological preparations
manufacturing industry” deals
with economic activities in an
establishment which produces
vaccine, serum, toxoid,
antitoxin and some preparations
similar to the aforementioned
products, or blood products;(b)“agents against pathogenicorganisms and parasites” means
the pharmaceutical products
which are categorised as agentsagainst pathogenic organisms
and parasites, and which havereceived marketing approval,
under the laws and regulationsof Japan; and(c)“specially-controlled medical
devices” means medical devices
which have received marketing
approval or certification as
specially-controlled medical
devices under the laws andregulations of Japan.

- 38 -

8

Sector:Manufacturing

Sub-Sector:

Leather and Leather Products
Manufacturing

Industry
Classification:

JSIC 1189

Textile apparel andaccessories, n.e.c.

JSIC 1694

Gelatine and adhesives

JSIC 192

Rubber and plastic
footwear and its
findings

JSIC 2011

Leather tanning andfinishing

JSIC 2021

Mechanical andindustrial leather
products, except gloves
and mittens

JSIC 2031

Cut stock and findings
for leather footwear

JSIC 2041

Leather footwear

JSIC 2051

Leather gloves andmittens

JSIC 2061

Baggage

JSIC 207

Handbags and small
cases

JSIC 2081

Fur skins

JSIC 2099

Miscellaneous tanningleather products

JSIC 3253

Sporting and athletic
goods

Note 1:

The activities covered bythis entry under JSIC 1189
or 3253 are limited to theactivities related toleather and leather
products manufacturing.

- 39 -

Note 2:

The activities covered bythis entry under JSIC 1694
are limited to theactivities related toanimal glue (nikawa) andgelatine manufacturing.

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in leather and leather
products manufacturing industry inJapan.

- 40 -

9

Sector:Matters Related to the Nationalityof a Ship

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Measures:

Ship Law (Law No. 46 of 1899),
Article 1

Description:

The Japanese nationality shall begiven to a ship whose owner is aJapanese national, or a company
established under the laws andregulations of Japan, of which all
the representatives and not lessthan two-thirds of the executives
administering the affairs are
Japanese nationals.

Prohibition of Performance
Requirements (Article 6)- 41 -

10

Sector:MiningSub-Sector:
Industry
Classification:

JSIC 05

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Mining Law (Law No. 289 of 1950),
Chapters 2 and 3

Description:

Only a Japanese national or aJapanese legal person may havemining rights or mining leaserights.

- 42 -

Mining and quarrying ofstone and gravel

11

Sector:Oil Industry

Sub-Sector:
Industry
Classification:

Obligations
Concerned:

JSIC 053

Crude petroleum andnatural gas production

JSIC 1711

Petroleum refining

JSIC 1721

Lubricating oils andgreases (not made inpetroleum refineries)

JSIC 1741

Paving materials

JSIC 1799

Miscellaneous petroleum
and coal products

JSIC 4711

Ordinary warehousing,
except refrigerated
warehousing

JSIC 4721

Refrigerated
warehousing

JSIC 5331

Petroleum

JSIC 6051

Gasoline stations

JSIC 6052

Fuel stores, except
gasoline stations

JSIC 9299

Miscellaneous businessservices, n.e.c.

Note 1:

The activities covered bythis entry under JSIC 1741,
1799, 4711, 4721 or 6052
are limited to thoserelated to the oil
industry.

Note 2:

The activities covered bythis entry under JSIC 9299
are limited to thoserelated to the liquefied
petroleum gas industry.

National Treatment (Article 2)- 43 -

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in the oil industry inJapan. All organic chemicals such as
ethylene, ethylene glycol andpolycarbonates are outside the scopeof the oil industry. Therefore, theprior notification under the Foreign
Exchange and Foreign Trade Law is
not required for the investments inthe manufacture of these products.

- 44 -

12

Sector:

Security Guard Services

Sub-Sector:
Industry
Classification:

JSIC 923

Guard services

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in security guard
services in Japan.

- 45 -

13

Sector:Transport

Sub-Sector:

Air Transport

Industry
Classification:

JSIC 4600

Head offices primarily
engaged in managerial
operations

JSIC 4611

Air transport

Obligations
Concerned:

National Treatment (Article 2)
Most-Favoured-Nation Treatment(Article 3)
Prohibition of Performance
Requirements (Article 6)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3
Civil Aeronautics Law (Law No. 231
of 1952), Chapters 7 and 8

Description:

1.
The prior notification
requirement under the Foreign
Exchange and Foreign Trade Law
applies to foreign investors who
intend to make investments in airtransport business in Japan.
2.
Permission of the Minister ofLand, Infrastructure, Transport andTourism for conducting air transportbusiness as a Japanese air carrier
is not granted to the following
natural persons or entities applying
for the permission:(a)a natural person who does nothave Japanese nationality;(b)a foreign country, or a foreign
public entity or its
equivalent;- 46 -

(c)a legal person or other entity
constituted under the laws andregulations of any foreigncountry; and(d)a legal person represented by
the natural persons or entities
referred to in subparagraph(a), (b) or (c); a legal personof which one-third or more of
the directors are composed of
the natural persons or entities
referred to in subparagraph(a), (b) or (c); or a legal
person of which one-third or
more of the voting rights areheld by the natural persons or
entities referred to in
subparagraph (a), (b) or (c).

In the event that an air carrier
becomes a natural person or anentity referred to in subparagraphs(a) through (d), the permission willlose its effect. The conditions forthe permission also apply tocompanies, such as holding
companies, which have substantial
control over the air carriers.
3.
A Japanese air carrier or acompany having substantial control
over such air carrier, such as aholding company, may reject therequest from a natural person or anentity set forth in subparagraphs2(a) through 2(c), who owns equity
investments in such air carrier orcompany, to enter its name andaddress in the register ofshareholders, in the event that such
air carrier or company becomes alegal person referred to in
subparagraph 2(d) by accepting such
request.
4.
Foreign air carriers are
required to obtain permission of the
Minister of Land, Infrastructure,
Transport and Tourism to conduct
international air transportbusiness.

- 47 -

5.
Permission of the Minister ofLand, Infrastructure, Transport andTourism is required for the use offoreign aircraft for airtransportation of passengers or
cargoes to and from Japan for
remuneration.
6.
A foreign aircraft may not be
used for a flight between points
within Japan.

- 48 -

14

Sector:Transport

Sub-Sector:

Air Transport

Industry
Classification:

JSIC 4600

Head offices primarily
engaged in managerial
operations

JSIC 4621

Aircraft service,
except air transport

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27

Prohibition of Performance
Requirements (Article 6)

Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3
Civil Aeronautics Law (Law No. 231
of 1952), Chapters 7 and 8
Description:

1.
The prior notification
requirement under the Foreign
Exchange and Foreign Trade Law
applies to foreign investors who
intend to make investments in aerial
work business in Japan.
2.
Permission of the Minister ofLand, Infrastructure, Transport andTourism for conducting aerial workbusiness is not granted to thefollowing natural persons or
entities applying for thepermission:(a)a natural person who does nothave Japanese nationality;(b)a foreign country, or a foreign
public entity or its
equivalent;(c)a legal person or other entity
constituted under the laws andregulations of any foreigncountry; and- 49 -

(d)a legal person represented by
the natural persons or entities
referred to in subparagraph(a), (b) or (c); a legal personof which one-third or more of
the directors are composed of
the natural persons or entities
referred to in subparagraph(a), (b) or (c); or a legal
person of which one-third or
more of the voting rights areheld by the natural persons or
entities referred to in
subparagraph (a), (b) or (c).

In the event that a person
conducting aerial work businessbecomes a natural person or anentity referred to in subparagraphs(a) through (d), the permission willlose its effect. The conditions forthe permission also apply tocompanies, such as holding
companies, which have substantial
control over the person conducting
aerial work business.
3.
A foreign aircraft may not be
used for a flight between points
within Japan.

- 50 -

15

Sector:Transport

Sub-Sector:

Registration of Aircraft in the
National Register

Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Measures:

Civil Aeronautics Law (Law No. 231
of 1952), Chapter 2

Description:

1.
An aircraft owned by any of thefollowing natural persons or
entities may not be registered in
the national register:

Prohibition of Performance
Requirements (Article 6)(a)a natural person who does nothave Japanese nationality;(b)a foreign country, or a foreign
public entity or its
equivalent;(c)a legal person or other entity
constituted under the laws andregulations of any foreigncountry; and(d)a legal person represented by
the natural persons or entities
referred to in subparagraph(a), (b) or (c); a legal personof which one-third or more of
the directors are composed of
the natural persons or entities
referred to in subparagraph(a), (b) or (c); or a legal
person of which one-third or
more of the voting rights areheld by the natural persons or
entities referred to in
subparagraph (a), (b) or (c).

2.
A foreign aircraft may not beregistered in the national register.

- 51 -

16

Sector:Transport

Sub-Sector:

Freight Forwarding Business(excluding freight forwarding
business using air transportation)

Industry
Classification:

JSIC 4441

Collect-and-deliver
freight transport

JSIC 4821

Freight transport,
except collect-anddeliver freighttransport

Obligations
Concerned:

National Treatment (Article 2)
Most-Favoured-Nation Treatment(Article 3)
Prohibition of Performance
Requirements (Article 6)

Measures:

Freight Forwarding Business Law(Law No. 82 of 1989), Chapters 2
through 4
Enforcement Regulation of Freight
Forwarding Business Law (Ministerial
Ordinance of the Ministry ofTransport No. 20 of 1990)

Description:

The following natural persons or
entities are required to beregistered with, or to obtain
permission or approval of, theMinister of Land, Infrastructure,
Transport and Tourism for conducting
freight forwarding business using
international shipping. Suchregistration shall be made, or suchpermission or approval shall be
granted, on the basis ofreciprocity:(a)a natural person who does nothave Japanese nationality;(b)a foreign country, or a foreign
public entity or its
equivalent;- 52 -

(c)a legal person or other entity
constituted under the laws andregulations of any foreigncountry; and(d)a legal person represented by
the natural persons or entities
referred to in subparagraph(a), (b) or (c); a legal personof which one-third or more of
the directors are composed of
the natural persons or entities
referred to in subparagraph(a), (b) or (c); or a legal
person of which one-third or
more of the voting rights areheld by the natural persons or
entities referred to in
subparagraph (a), (b) or (c).

- 53 -

17

Sector:Transport

Sub-Sector:

Freight Forwarding Business (onlyfreight forwarding business using
air transportation)

Industry
Classification:

JSIC 4441

Collect-and-deliver
freight transport

JSIC 4821

Freight transport,
except collect-anddeliver freighttransport

Obligations
Concerned:

National Treatment (Article 2)
Most-Favoured-Nation Treatment(Article 3)
Prohibition of Performance
Requirements (Article 6)

Measures:

Freight Forwarding Business Law(Law No. 82 of 1989), Chapters 2
through 4
Enforcement Regulation of Freight
Forwarding Business Law (Ministerial
Ordinance of the Ministry ofTransport No. 20 of 1990)

Description:

1.
The following natural persons
or entities may not conduct freight
forwarding business using airtransportation between points within
Japan:(a)a natural person who does nothave Japanese nationality;(b)a foreign country, or a foreign
public entity or its
equivalent;(c)a legal person or other entity
constituted under the laws andregulations of any foreigncountry; and- 54 -

(d)a legal person represented by
the natural persons or entities
referred to in subparagraph(a), (b) or (c); a legal personof which one-third or more of
the directors are composed of
the natural persons or entities
referred to in subparagraph(a), (b) or (c); or a legal
person of which one-third or
more of the voting rights areheld by the natural persons or
entities referred to in
subparagraph (a), (b) or (c).

2.
The natural persons or entities
referred to in paragraph 1 arerequired to be registered with, orto obtain permission or approval of,
the Minister of Land,
Infrastructure, Transport andTourism for conducting freight
forwarding business using
international air transportation.
Such registration shall be made, orsuch permission or approval shall be
granted, on the basis ofreciprocity.

- 55 -

18

Sector:Transport

Sub-Sector:

Railway Transport

Industry
Classification:

JSIC 421

Railway transport

JSIC 4851

Railway facilities
services

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

1.
The prior notification
requirement under the Foreign
Exchange and Foreign Trade Law
applies to foreign investors who
intend to make investments inrailway transport industry in Japan.
2.
The manufacture of vehicles orparts and components for the railway
transport industry is not included
in railway transport industry.
Therefore, the prior notification
under the Foreign Exchange andForeign Trade Law is not required
for the investments in the
manufacture of these products.

- 56 -

19

Sector:Transport

Sub-Sector:

Road Passenger Transport

Industry
Classification:

JSIC 4311

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27

Common omnibus
operators

Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3
Description:

1.
The prior notification
requirement under the Foreign
Exchange and Foreign Trade Law
applies to foreign investors who
intend to make investments in theomnibus industry in Japan.
2.
The manufacture of vehicles orparts and components for the omnibus
industry is not included in theomnibus industry. Therefore, theprior notification under the Foreign
Exchange and Foreign Trade Law is
not required for the investments inthe manufacture of these products.

- 57 -

20

Sector:Transport

Sub-Sector:

Water Transport

Industry
Classification:

JSIC 452

Coastwise transport

JSIC 453

Inland watertransport

JSIC 4542

Coastwise ship leasing

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in the water transportindustry in Japan. For greatercertainty, “water transportindustry” refers to oceangoing or
seagoing transport, coastwisetransport (i.e. maritime transport
between ports in Japan), inland
water transport and ship leasing
industry. However, oceangoing or
seagoing transport industry and shipleasing industry excluding coastwise
ship leasing industry are exemptedfrom the prior notification
requirement under the Foreign
Exchange and Foreign Trade Law.

- 58 -

21

Sector:Transport

Sub-Sector:

Water Transport

Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Measures:

Ship Law (Law No. 46 of 1899),
Article 3

Description:

Unless otherwise specified in thelaws and regulations of Japan, orinternational agreements to which
Japan is a party, ships not flying
the Japanese flag are prohibitedfrom entering the ports in Japan
which are not open to foreigncommerce and from carrying cargoes
or passengers between ports inJapan.

Most-Favoured-Nation Treatment(Article 3)- 59 -

22

Sector:

Water Supply and Waterworks

Sub-Sector:
Industry
Classification:

JSIC 3611

Water for end users,
except industrial users

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in water supply andwaterworks industry in Japan.

- 60 -

23

Sector:Aerospace Industry

Sub-Sector:

Aircraft Manufacturing and Repairing
Industry

Industry
Classification:

JSIC 16

Manufacture of chemical
and allied products

JSIC 18

Manufacture of plastics
products, except
otherwise classified

JSIC 19

Manufacture of rubber
products

JSIC 21

Manufacture of ceramic,stone and clay products

JSIC 23

Manufacture of nonferrous metals andproducts

JSIC 24

Manufacture offabricated metal
products

JSIC 25

Manufacture of general
purpose machinery

JSIC 27

Manufacture of businessoriented machinery

JSIC 28

Electronic parts,
devices and electronic
circuits

JSIC 29

Manufacture ofelectrical machinery,equipment and supplies

JSIC 30

Manufacture of
information andcommunicationelectronics equipment

JSIC 31

Manufacture oftransportationequipment

JSIC 39

Information services- 61 -

JSIC 90
Note:

Obligations
Concerned:
Measures:

Machine, etc. repair
services, except
otherwise classified
The activities covered bythis entry under JSIC 16, 18,
19, 21, 23, 24, 25, 27, 28,
29, 30, 31, 39 or 90 are
limited to those related toaerospace industry.

National Treatment (Article 2)
Prohibition of Performance
Requirements (Article 6)
Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Articles 27, 28 and 30
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Articles 3 through 5
Aircraft Manufacturing Industry Law(Law No. 237 of 1952), Articles 2through 5

Description:

1.
The prior notification
requirement under the Foreign
Exchange and Foreign Trade Law
applies to foreign investors who
intend to make investments inaircraft industry in Japan.
2.
A technology introduction
contract between a resident and a
non-resident related to the aircraft
industry is subject to the priornotification requirement under theForeign Exchange and Foreign Trade
Law.
3.
The number of licences
conferred to manufactures andservice suppliers in those sectors
may be limited.

- 62 -

4.
An enterprise which intends to
produce aircraft and supply repair
services is required to establish afactory related to manufacture or
repair aircraft under the laws andregulations of Japan.

- 63 -

Schedule of Georgia
1

Sector:All

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Measures:

Constitution of Georgia (amended on
October 13, 2017), Article 19,
paragraph 4

Prohibition of Performance
Requirements (Article 6)

Organic Law of Georgia on“Agricultural Land Ownership” (June25, 2019)
Law of Georgia on “State Property”(July 21, 2010)
Law of Georgia on “Determination of
the Designated Purpose of Land andon Sustainable Management ofAgricultural Land” (June 25, 2019)
Description:

Agricultural land shall only be
owned by the State, self-governing
entity, citizen of Georgia or unionof Georgian citizens, as well as byan alien or a legal entity
established in Georgia under its
private law in accordance with therequirements prescribed by thedomestic legislation.
Only a citizen of Georgia, or alegal entity registered in Georgia
pursuant to its private laws, has
the right to acquire ownership overthe state-owned agricultural landplot.

- 64 -

2

Sector:Fishing

Sub-Sector:
Industry
Classification:

Classification of Economic Activity
GNC 006-2016/Rev.2
A 03.1 - Fishing

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Resolution No. 138 of the Governmentof Georgia on “Approval ofRegulations on Rules and Conditions
on Issuance of Fishing Licence”(August 11, 2005), Article 4

Description:

Fishing licence can only be granted
to a natural or a legal person who
is a resident of Georgia.

- 65 -

3

Sector:Agriculture

Sub-Sector:

Agricultural Cooperation

Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Measures:

Law of Georgia on “Agricultural
Cooperatives” (July 12, 2013)

Description:

A member of an agricultural
cooperative may be an 18-year-old orolder citizen of Georgia and/or
other agricultural cooperative, that
directly participates inagricultural activities carried out
by the cooperative and owns
membership shares.
An 18-year-old or older citizen ofGeorgia or foreign countries and/or
a legal entity registered in Georgia
or abroad, that has contributed
membership fee, in accordance withthe law of Georgia on “Agricultural
Cooperatives” and a decision of thecooperative members’ assembly, has aright to be an associated member of
the agricultural cooperative.
The associated member may
participate in an assembly only withthe right of deliberative vote.
The associated member has the rightto receive dividends from thecontributed membership fee and canbe elected as the member of thesupervisory board or executive
council.
The associated member may not bedirectly involved in agriculturalactivities carried out by the
agricultural cooperative.

- 66 -

4

Sector:Financial Services - Insurance

Sub-Sector:

All insurance and insurance-related
services

Industry
Classification:

Classification of Economic Activity
GNC 006-2016/Rev.2
K 65 - Insurance, reinsurance andpension funding, except compulsory
social security

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Law of Georgia on “Insurance” (May2, 1997), Articles 2, 7 and 22

Description:

The below-listed entities have theright to carry out only insurance
activities such as life insurance,
insurance (non-life) and/or
reinsurance in Georgia:

Most-Favoured-Nation Treatment(Article 3)(a)

A legal person registered in
Georgia as joint stockcompany, established for the
implementation of insurance
activities and licensed by
Legal Entity of Public Law
Insurance State Supervision
Service of Georgia;- 67 -

(b)A branch (representative
office) founded in Georgia, byinsurance and reinsurancecompanies registered andlicensed in member states of
the Organisation for Economic
Cooperation and Development(OECD). Such branch canconduct all the abovementioned types of insurance
activities in Georgia on thebasis of the licence of its
founder insurance company
without being obliged toobtain another licence inGeorgia. Thus, a licence heldby a founder insurance company
shall have the same legal
status as a licence issued on
the basis of the legislationof Georgia and no one shallhave the right to request thebranch (representative office)to obtain an appropriate
licence.

- 68 -

5

Sector:Financial Services - Insurance

Sub-Sector:

Services auxiliary to insurance(including insurance brokering andinsurance agency services)

Industry
Classification:

Classification of Economic Activity
GNC 006-2016/Rev.2
K 66.1 - Activities auxiliary tofinancial services and insurance
activities
K 66.2 - Activities auxiliary to
insurance and pension funding

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Law of Georgia on “Insurance” (May2, 1997), Article 7

Description:

A legal person registered in aforeign country shall carry out
insurance brokerage activity inGeorgia through a branch(representative office) duly
registered in Georgia.

- 69 -

6

Sector:Broadcasting

Sub-Sector:

Over-the-air broadcasting

Industry
Classification:

Classification of Economic Activity
GNC 006-2016/Rev.2
J 60 - Programming and broadcasting
activities

Obligations
Concerned:

National Treatment (Article 2)

Measures:

Law of Georgia on “Broadcasting”(December 23, 2004), Articles 37 and43

Description:

A licence holder and/or authorised
person to conduct the types ofbroadcasting which are described
below shall be a citizen of Georgia
or a natural or a legal person who
is a resident of Georgia.
(a)Radio broadcasting:
A licence is required for radio
broadcasting only when it iscarried out by means ofbroadcast transmitters using
the radio frequency spectrum.

(b)

TV broadcasting:TV broadcaster, except Public
Broadcaster, shall be subject
to authorisation. Building a TV
multiplex platform requires alicence.

- 70 -

Annex II
Non-Conforming Measures referred toin paragraph 2 of Article 7
1.
The Schedule of a Contracting Party sets out, pursuant
to paragraph 2 of Article 7, the specific sectors, subsectors or activities for which that Contracting Party may
maintain existing, or adopt new or more restrictive,
measures that do not conform with obligations imposed by:

2.

(a)

Article 2;(b)

Article 3; or(c)Article 6.

Each Schedule entry sets out the following elements:(a)“Sector” refers to the sector for which the entry
is made;(b)“Sub-Sector”, where referenced, refers to thespecific sub-sector for which the entry is made;(c)“Industry Classification”, where referenced, andonly for transparency purposes, refers to theactivity covered by the non-conforming measure,according to domestic or international industry
classification codes;(d)“Obligations Concerned” specifies the obligations
referred to in paragraph 1 that, pursuant toparagraph 2 of Article 7, do not apply to thesectors, sub-sectors or activities listed in theentry;(e)“Description” sets out the scope or nature of thesectors, sub-sectors or activities covered by theentry; and(f)“Existing Measures”, where specified, identifies,
for transparency purposes, a non-exhaustive listof existing measures that apply to the sectors,
sub-sectors or activities covered by the entry.

3.
In the interpretation of an entry, all elements of theentry shall be considered. The “Description” element shallprevail over all other elements.

- 71 -

4.

For the purposes of this Annex:(a)the term “JSIC” means Japan Standard Industrial
Classification set out by the Ministry ofInternal Affairs and Communications of Japan, andrevised on October 30, 2013; and(b)the term “CPC” means the Provisional Central
Product Classification (Statistical Papers Series
M No. 77, Department of International Economic
and Social Affairs, Statistical Office of theUnited Nations, New York, 1991).

- 72 -

Schedule of Japan1
1

Sector:All

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Description:

When transferring or disposing of
its equity interests in, or theassets of, a state enterprise or agovernmental entity, Japan reserves
the right to:

Prohibition of Performance
Requirements (Article 6)(a)prohibit or impose limitations
on the ownership of suchinterests or assets byinvestors of Georgia or theirinvestments;(b)

impose limitations on theability of investors of Georgia
or their investments as ownersof such interests or assets tocontrol any resulting
enterprise; or(c)adopt or maintain any measure
relating to the nationality of
executives, managers or membersof the board of directors of
any resulting enterprise.

Existing
Measures:1

For transparency purposes, entries in this Schedule may include
measures taken by Japan in accordance with Article 15.

- 73 -

2

Sector:All

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)
Most-Favoured-Nation Treatment(Article 3)
Prohibition of Performance
Requirements (Article 6)

Description:

Japan reserves the right to adopt ormaintain any measure relating toinvestment in telegraph services,betting and gambling services,manufacture of tobacco products,
manufacture of Bank of Japan notes,
minting and sale of coinage andpostal service in Japan.

Existing
Measures:- 74 -

3

Sector:All

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

Most-Favoured-Nation Treatment(Article 3)

Description:

Japan reserves the right to adopt ormaintain any measure that accords
differential treatment to countries
under any bilateral or multilateralagreement involving:(a)aviation;(b)fisheries; or(c)maritime matters, including
salvage.

Existing
Measures:- 75 -

4

Sector:All

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Description:

National Treatment and MostFavoured-Nation Treatment may not be
accorded to investors of Georgia andtheir investments with respect tosubsidies.

Most-Favoured-Nation Treatment(Article 3)

Existing
Measures:- 76 -

5

Sector:Aerospace Industry

Sub-Sector:

Space Industry

Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Description:

Japan reserves the right to adopt ormaintain any measure relating toinvestment in space industry.

Existing
Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Articles 27, 28 and 30

Prohibition of Performance
Requirements (Article 6)

Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Articles 3 through 5- 77 -

6

Sector:Arms and Explosives Industry

Sub-Sector:

Arms Industry
Explosives Manufacturing Industry

Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Description:

Japan reserves the right to adopt ormaintain any measure relating toinvestment in arms industry andexplosives manufacturing industry.

Existing
Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Articles 27, 28 and 30

Prohibition of Performance
Requirements (Article 6)

Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Articles 3 through 5- 78 -

7

Sector:EnergySub-Sector:

Electricity Utility Industry
Gas Utility Industry
Nuclear Energy Industry

Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Description:

Japan reserves the right to adopt ormaintain any measure relating toinvestment in the energy industry
listed in the “Sub-Sector” element.

Existing
Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Articles 27, 28 and 30

Prohibition of Performance
Requirements (Article 6)

Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Articles 3 through 5- 79 -

8

Sector:Fisheries

Sub-Sector:

Fisheries within the TerritorialSea, Internal Waters, Exclusive
Economic Zone and Continental Shelf

Industry
Classification:

JSIC 031

Marine fisheries

JSIC 032

Inland water fisheries

JSIC 041

Marine aquaculture

JSIC 042

Inland wateraquaculture

JSIC 8093

Recreational fishingguide business

Obligations
Concerned:

National Treatment (Article 2)
Most-Favoured-Nation Treatment(Article 3)
Prohibition of Performance
Requirements (Article 6)

Description:

Japan reserves the right to adopt ormaintain any measure relating toinvestment in fisheries in the
territorial sea, internal waters,
exclusive economic zone andcontinental shelf of Japan.
For the purposes of this entry, theterm “fisheries” means the work oftaking and cultivation of aquatic
resources, including the following
fisheries related activities:(a)investigation of aquatic
resources without taking such
resources;(b)luring of aquatic resources;(c)preservation and processing offish catches;(d)transportation of fish catches
and fish products; and(e)provision of supplies to othervessels used for fisheries.

- 80 -

Existing
Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3
Law for Regulation of Fishing
Operation by Foreign Nationals (Law
No. 60 of 1967), Articles 3, 4 and 6
Law concerning the Exercise ofSovereign Rights concerning
Fisheries in the Exclusive Economic
Zones (Law No. 76 of 1996), Articles
4, 5, 7 through 12 and 14- 81 -

9

Sector:Information and Communications

Sub-Sector:

Broadcasting Industry

Industry
Classification:

JSIC 380

Establishments engaged
in administrative or
ancillary economic
activities

JSIC 381

Public broadcasting,
except cablecasting

JSIC 382

Private-sector
broadcasting, except
cablecasting

JSIC 383

Cablecasting

Obligations
Concerned:

National Treatment (Article 2)

Description:

Japan reserves the right to adopt ormaintain any measure relating toinvestment in broadcasting industry.

Existing
Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27

Prohibition of Performance
Requirements (Article 6)

Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3
Radio Law (Law No. 131 of 1950),
Chapter 2
Broadcast Law (Law No. 132 of 1950),
Chapters 5 and 8- 82 -

10

Sector:Land Transaction

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Description:

With respect to the acquisition orlease of land properties in Japan,
prohibitions or restrictions may be
imposed.

Existing
Measures:

Alien Land Law (Law No. 42 of 1925),
Article 1

Most-Favoured-Nation Treatment(Article 3)- 83 -

11

Sector:Public Law Enforcement andCorrectional Services and Social
Services

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)
Most-Favoured-Nation Treatment(Article 3)
Prohibition of Performance
Requirements (Article 6)

Description:

Japan reserves the right to adopt ormaintain any measure relating toinvestment in public law enforcement
and correctional services, and insocial services such as income
security or insurance, social
security or insurance, social
welfare, public training, health,child care and public housing.

Existing
Measures:- 84 -

12

Sector:Transport

Sub-Sector:

Air Transport

Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Description:

Japan reserves the right to adopt ormaintain any measure with respect toinvestment in airports or airport
operation services.

Prohibition of Performance
Requirements (Article 6)

For the purposes of this entry, theterm “airport operation services”
means the supply of air terminal,
airfield and other airport
infrastructure operation services ona fee or contract basis. Airport
operation services do not include air
navigation services.
Existing
Measures:- 85 -

13

Sector:

Education and Learning Support

Sub-Sector:

Primary and Secondary Educational
Services

Industry
Classification:

JSIC 811

Kindergartens

JSIC 812

Elementary schools

JSIC 813

Lower secondary schools

JSIC 814

Upper secondary schools,
secondary schools

JSIC 815

Schools for special
needs education

JSIC 819

Integrated centres forearly childhood
education and care

Obligations
Concerned:

National Treatment (Article 2)

Description:

Japan reserves the right to adopt ormaintain any measure relating toinvestment in primary and secondary
educational services.

Existing
Measures:Fundamental Law of Education (Law
No. 120 of 2006), Article 6
School Education Law (Law No. 26 of
1947), Article 2
Private School Law (Law No. 270 of
1949), Article 3
Law concerning Advancement ofComprehensive Service Related to
Education, Child Care, etc. of
Preschool Children (Law No. 77 of
2006)- 86 -

14

Sector:All

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)
Most-Favoured-Nation Treatment(Article 3)
Prohibition of Performance
Requirements (Article 6)

Description:

1.
Japan reserves the right toadopt or maintain any measure
relating to investment in industries
other than those recognised or otherthan those that should have beenrecognised by the Government of Japanowing to the circumstances on thedate of entry into force of thisAgreement.
2.
Any industries classified
positively and explicitly in JSIC or
CPC, on the date of entry into forceof this Agreement should have beenrecognised by the Government of Japanon that date.
3.
Japan reserves the right toadopt or maintain any measure
relating to investment in industries
which were not technically feasibleon the date of entry into force of
this Agreement.

Existing
Measures:- 87 -

Schedule of Georgia
1

Sector:All

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Description:

Georgia reserves the right to adopt
or maintain any measure, which may
not accord to investors of Japan andtheir investments National Treatment
or Most Favoured-Nation Treatment
with respect to subsidies or grants,
including governmental-supported
loans, guarantees and insurance,
provided that it is not inconsistent
with Georgia’s obligations under the
WTO Agreement.

Most-Favoured-Nation Treatment(Article 3)

Existing
Measures:- 88 -

2

Sector:All

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)
Most-Favoured-Nation Treatment(Article 3)
Prohibition of Performance
Requirements (Article 6)

Description:

Georgia reserves the right to adopt
or maintain any measure indicated in
its Horizontal Commitments of the
Schedule of Specific Commitments in
Service under the WTO Agreement(GATS/SC/129,2000 (I Horizontal
Commitments)).

Existing
Measures:

Schedule of Specific Commitments in
Service under the WTO Agreement(GATS/SC/129,2000 (I Horizontal
Commitments))- 89 -

3

Sector:Public law enforcement andcorrectional services and social
services

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)
Most-Favoured-Nation Treatment(Article 3)
Prohibition of Performance
Requirements (Article 6)

Description:

Georgia reserves the right to adopt
or maintain any measure relating toinvestment in public law enforcement
and correctional services, medical
service and mother and childhealthcare, provided that it is notinconsistent with Georgia’s
obligations under the WTO Agreement.

Existing
Measures:- 90 -

4

Sector:Construction and Related Engineering
Activities

Sub-Sector:
Industry
Classification:
Obligations
Concerned:

Prohibition of Performance
Requirements (Article 6)

Description:

Georgia reserves the right to adopt
or maintain any measure relating toinvestment in construction andrelated engineering activities that
not less than 50 percent of theentire staff must be citizens ofGeorgia.

Existing
Measures:- 91 -

5

Sector:Tourism

Sub-Sector:

Tourist Guides

Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)
Most-Favoured-Nation Treatment(Article 3)
Prohibition of Performance
Requirements (Article 6)

Description:

Georgia reserves the right to adopt
or maintain any measure relating toqualification requirements andprocedures, technical standards andlicensing requirements andprocedures for tourist guides andguide services.

Existing
Measures:- 92 -

6

Sector:Power and Energy

Sub-Sector:

Electricity, Gas and Oil

Industry
Classification:
Obligations
Concerned:

National Treatment (Article 2)

Description:

Georgia reserves the right to adopt
or maintain any measure relating toinvestment in the power and energy
sector listed in the “Sub-Sector”
element.

Prohibition of Performance
Requirements (Article 6)

Existing
Measures:- 93 -