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RESTRICTED WT/TPR/S/351 18 January 2017

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RESTRICTED WT/TPR/S/351 18 January 2017 RESTRICTED WT/TPR/S/351 18 January 2017 (17-0321) Page: 1/143 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT JAPAN This report, prepared for the thirteenth Trade Policy Review of Japan, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Japan on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr. Masahiro Hayafuji (tel: 022/739 5873), Mr. Pierre Latrille (tel: 022/739 5266), Mrs. Mena Hassan (tel: 022/739 6522), and Mr. Michael Kolie (tel: 022/739 5931). Document WT/TPR/G/351 contains the policy statement submitted by Japan. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Japan. This report was drafted in English. WT/TPR/S/351 • Japan - 2 - CONTENTS SUMMARY ........................................................................................................................ 9 1 ECONOMIC ENVIRONMENT ........................................................................................ 13 1.1 Main Features of the Economy .................................................................................... 13 1.2 Recent Economic Developments.................................................................................. 13 1.2.1 Monetary policy ..................................................................................................... 15 1.2.2 Fiscal policy .......................................................................................................... 16 1.2.3 Structural reforms ................................................................................................. 16 1.2.4 Balance of payments .............................................................................................. 16 1.3 Trade Performance ................................................................................................... 17 1.4 Foreign Direct Investment ......................................................................................... 20 2 TRADE AND INVESTMENT REGIME ............................................................................ 22 2.1 General Framework .................................................................................................. 22 2.2 Trade Policy Objectives ............................................................................................. 23 2.3 Trade Agreements and Arrangements .......................................................................... 24 2.3.1 WTO .................................................................................................................... 24 2.3.2 Regional and preferential agreements ....................................................................... 24 2.3.3 Other agreements and arrangements ........................................................................ 25 2.4 Investment Regime .................................................................................................. 25 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 28 3.1 Measures Directly Affecting Imports ............................................................................ 28 3.1.1 Customs procedures and requirements ..................................................................... 28 3.1.1.1 Transparency and legal framework ........................................................................ 28 3.1.1.2 Fees and formalities ............................................................................................ 29 3.1.1.3 Release and clearance of goods ............................................................................. 30 3.1.2 Customs valuation ................................................................................................. 31 3.1.3 Rules of origin ....................................................................................................... 32 3.1.4 Tariffs .................................................................................................................. 32 3.1.4.1 MFN applied tariff ................................................................................................ 32 3.1.4.2 Bound tariff ........................................................................................................ 35 3.1.4.3 Preferential tariff ................................................................................................. 36 3.1.5 Import prohibitions, restrictions, licensing, and quotas ................................................ 37 3.1.6 Anti-dumping, countervailing, and safeguard measures ............................................... 38 3.1.6.1 Overview ........................................................................................................... 38 3.1.6.2 Anti-dumping measures ....................................................................................... 39 3.1.6.3 Countervailing measures ...................................................................................... 40 3.1.6.4 Safeguard measures ............................................................................................ 41 3.2 Measures Directly Affecting Exports ............................................................................. 42 3.2.1 Export procedures and requirements ........................................................................ 42 3.2.2 Export taxes, charges, and levies ............................................................................. 42 WT/TPR/S/351 • Japan - 3 - 3.2.3 Export prohibitions, restrictions, and licensing ............................................................ 42 3.2.4 Export support and promotion ................................................................................. 44 3.3 Measures Affecting Production and Trade ..................................................................... 46 3.3.1 Taxation and tax incentives ..................................................................................... 46 3.3.1.1 Tax reform ......................................................................................................... 46 3.3.1.2 Incentive schemes .............................................................................................. 47 3.3.2 Subsidies and other assistance programmes .............................................................. 49 3.3.3 Competition policy and price controls ........................................................................ 50 3.3.3.1 Recent development ............................................................................................ 50 3.3.3.2 Mergers and acquisitions, and holding companies .................................................... 50 3.3.3.3 Exemptions ........................................................................................................ 51 3.3.3.4 International arrangements and agreements ........................................................... 52 3.3.3.5 Enforcement ....................................................................................................... 54 3.3.4 Corporate governance ............................................................................................ 56 3.3.5 State trading, state-owned enterprises, and privatization............................................. 56 3.3.6 Standards and other technical requirements .............................................................. 58 3.3.7 Sanitary and phytosanitary measures ....................................................................... 63 3.3.8 Labelling and packaging requirements ...................................................................... 66 3.3.9 Government procurement ....................................................................................... 67 3.3.10 Intellectual property rights .................................................................................... 73 3.3.10.1 Overview ......................................................................................................... 73 3.3.10.2 Patents ............................................................................................................ 78 3.3.10.3 Utility models (UMs) .......................................................................................... 79 3.3.10.4 Designs ........................................................................................................... 80 3.3.10.5 Trademarks ...................................................................................................... 80 3.3.10.6 Geographical indications ..................................................................................... 81 3.3.10.7 Copyright ......................................................................................................... 82 3.3.10.8 Enforcement ..................................................................................................... 83 3.3.10.9 International cooperation and harmonization ......................................................... 85 3.3.10.10 The 2015 IP strategic programmes ..................................................................... 85 4 TRADE POLICIES IN SELECTED SECTORS .................................................................. 87 4.1 Agriculture
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