RESTRICTED GPA/MOD/JPN/81 29 June 2016 (16-3522) Page: 1/6

RESTRICTED

GPA/MOD/JPN/81

29 June 2016

(16-3522) Page: 1/6

Committee on Government Procurement Original: English

PROPOSED MODIFICATIONS TO APPENDIX I OF JAPAN UNDER THE (1994) AGREEMENT ON GOVERNMENT PROCUREMENT

COMMUNICATION FROM JAPAN PURSUANT TO ARTICLE XXIV:6(b)1 OF THE GPA (1994)

The following communication, dated 27 June 2016, is being circulated at the request of the Delegation of Japan.

______

1. Pursuant to Article XXIV, paragraph 6(b) of the Agreement on Government Procurement, done at Marrakesh on 15 April 1994 (hereinafter referred to as the "1994 Agreement"), the Government of Japan hereby notifies the Committee on Government Procurement of the following modification relating to its Annex 3, Appendix I to the 1994 Agreement:

a. Withdraw "- Kyushu Railway Company (a)" from "1. Group A" of the List of Entities; and withdraw "- Kyushu Railway Company (a)(g)" from "1. Group A" of the List of Entities which procure the services, specified in Annex 4.

2. This modification is based on the fact that the Amendment to the Law concerning Passenger Railway Companies and Japan Freight Railway Company (hereinafter referred to as the "Amendment Law") was promulgated on 10 June 2015 and entered into force on 1 April 2016. The Government of Japan had maintained effective control over the Kyushu Railway Company (hereinafter referred to as the "Company") under the Law concerning Passenger Railway Companies and Japan Freight Railway Company (hereinafter referred to as the "Former Law"). From the date of the entry into force of the Amendment Law, the Former Law no longer applies to the Company and, judging from the following facts, government control or influence over the Company's covered procurement is effectively eliminated:

a. Any law, regulation, procedure, or administrative guidance which governed any aspect of the management or operation of the Company's covered procurement and which did not apply to other enterprises engaged in the same sector or industry is no longer applicable to the Company;

b. The Japanese government does not participate in the management or control of the Company or in its business decisions or operations beyond the government's regulatory oversight of the relevant industry;

c. The Japanese government's authority to appoint the Company's directors or managers has been eliminated;

1 Article XXIV:6(b) reads as follows: Rectifications or Modifications (b) Where a Party wishes, in exercise of its rights, to withdraw an entity from Appendix I on the grounds that government control or influence over it has been effectively eliminated, that Party shall notify the Committee. Such modification shall become effective the day after the end of the following meeting of the Committee, provided that the meeting is no sooner than 30 days from the date of notification and no objection has been made. In the event of an objection, the matter may be pursued in accordance with the procedures on consultations and dispute settlement contained in Article XXII. In considering the proposed modification to Appendix I and any consequential compensatory adjustment, allowance shall be made for the market-opening effects of the removal of government control or influence.

GPA/MOD/JPN/81

- 2 -

d. The Company is not more accountable to the Japanese government or to the public treasury in respect of its expenditures or the profitability than other enterprises engaged in the same sector or industry;

e. The Company is financially independent on, and not supported continuously by, the Japanese government through such means as the Japanese government's provision of a continuous operating subsidy to an entity; and

f. The whole shares of the Company are to be sold by the end of this fiscal year.

3. Attachment A to this document shows (in bold, strikeout or underlining) the proposed modifications by Japan to the corresponding pages (pages 1/5 and 3/5) of Annex 3 to Appendix I. Attachment B indicates how these pages would appear after the proposed modifications have been accepted.2

2 Attachments A and B are in English only.

GPA/MOD/JPN/81

- 3 -

APPENDIX I JAPAN ANNEX 3 Page 1/5

ATTACHMENT A

JAPAN

ANNEX 3

All Other Entities which Procure in Accordance with the Provisions of this Agreement

Supplies

Threshold: - Japan Small and Medium Enterprise Corporation 130 thousand SDR - Japan Post - Japan Labour Health and Welfare Organization List of Entities: - Japan Organization for Employment of the Elderly, Persons with Disabilities and Job 1. Group A Seekers - Okinawa Development Finance Corporation - Japan Water Agency - Japan Finance Corporation - Japan Regional Development Corporation - Japan Bank for International Cooperation - Japan Railway Construction Public - Japan Housing Finance Agency Corporation (a)(d) - Japan Finance Organization for Municipalities - Narita International Airport Corporation - Development Bank of Japan Inc. - East Nippon Expressway Company Limited - Tokyo Metro Co., Ltd. (a) - Central Nippon Expressway Company - Japan Tobacco Inc. Limited - Hokkaido Railway Company (a) - West Nippon Expressway Company Limited - Shikoku Railway Company (a) - Metropolitan Expressway Company Limited - Kyushu Railway Company (a) - Hanshin Expressway Company Limited - Japan Freight Railway Company (a) - Honshu-Shikoku Bridge Expressway - Nippon Telegraph and Telephone Corporation Company Limited (f) - Japan Expressway Holding and Debt - Nippon Telegraph and Telephone East Repayment Agency Corporation (f) - Urban Development Corporation (a) - Nippon Telegraph and Telephone West - Japan Science and Technology Agency Corporation (f) - Japan Atomic Energy Agency (b) - Northern Territories Issue Association - Japan Environmental Storage & Safety - National Consumer Affairs Center of Japan Corporation (h) - RIKEN (b) - Japan International Cooperation Agency - Environmental Restoration and Conservation - Welfare and Medical Service Agency Agency - Government Pension Investment Fund - Fund for the Promotion and Development of - Agriculture and Livestock Industries the Amami Islands Corporation - Japan Foundation, The - Japan Oil, Gas and Metals National - Japan Student Services Organization Corporation (c)

26 June 2015 (WT/Let/1047) GPA/MOD/JPN/81

- 4 -

APPENDIX I JAPAN ANNEX 3 Page 3/5

Supplies (cont'd)

- National Traffic Safety and Environment - Japan Railway Construction Public Laboratory Corporation (a)(d) - National Maritime Research Institute - Narita International Airport Corporation - Port and Airport Research Institute - East Nippon Expressway Company Limited - Electronic Navigation Research Institute - Central Nippon Expressway Company - Marine Technical Education Agency Limited - National Institute for Sea Training - West Nippon Expressway Company Limited - Civil Aviation College - Metropolitan Expressway Company Limited - National Institute for Environmental - Hanshin Expressway Company Limited Studies - Honshu-Shikoku Bridge Expressway - Labor Management Organization for USFJ Company Limited Employees - Japan Expressway Holding and Debt - National Agency of Vehicle Inspection Repayment Agency - National Statistics Center - Urban Development Corporation (a) - Japan Mint - Japan Science and Technology Agency - National Printing Bureau - Japan Atomic Energy Agency (b) - National Hospital Organization - Japan Environmental Storage & Safety - National University Corporation Corporation (h) - Inter-University Research Institute - Japan International Cooperation Agency Corporation - Welfare and Medical Service Agency - National Institute of Technology - Government Pension Investment Fund - National Institution for Academic - Agriculture and Livestock Industries Degrees and University Evaluation Corporation - Center for National University Finance - Japan Oil, Gas and Metals National and Management Corporation (c) - Japan Small and Medium Enterprise Corporation Services - Japan Post - Japan Labour Health and Welfare Threshold: Organization - Japan Organization for Employment of the Construction services: Elderly, Persons with Disabilities and Job 4,500 thousand SDR for Japan Post in Group A Seekers 15,000 thousand SDR for all other entities in - Okinawa Development Finance Corporation Group A - Japan Finance Corporation 4,500 thousand SDR for entities in Group B - Japan Bank for International Cooperation - Japan Housing Finance Agency Architectural, engineering and other technical - Japan Finance Organization for services covered by this Agreement: Municipalities 450 thousand SDR - Development Bank of Japan Inc. - Tokyo Metro Co., Ltd. (a) - Japan Tobacco Inc. (g) Other services: 130 thousand SDR - Hokkaido Railway Company (a)(g) - Shikoku Railway Company (a)(g) List of Entities which procure the services, - Kyushu Railway Company (a)(g) specified in Annex 4:

1. Group A

- Japan Water Agency - Japan Regional Development Corporation

26 June 2015 (WT/Let/1047) GPA/MOD/JPN/81

- 5 -

APPENDIX I JAPAN ANNEX 3 Page 1/5

ATTACHMENT B

JAPAN

ANNEX 3

All Other Entities which Procure in Accordance with the Provisions of this Agreement

Supplies

Threshold: - Japan Small and Medium Enterprise Corporation 130 thousand SDR - Japan Post - Japan Labour Health and Welfare Organization List of Entities: - Japan Organization for Employment of the Elderly, Persons with Disabilities and Job 1. Group A Seekers - Okinawa Development Finance Corporation - Japan Water Agency - Japan Finance Corporation - Japan Regional Development Corporation - Japan Bank for International Cooperation - Japan Railway Construction Public - Japan Housing Finance Agency Corporation (a)(d) - Japan Finance Organization for Municipalities - Narita International Airport Corporation - Development Bank of Japan Inc. - East Nippon Expressway Company Limited - Tokyo Metro Co., Ltd. (a) - Central Nippon Expressway Company - Japan Tobacco Inc. Limited - Hokkaido Railway Company (a) - West Nippon Expressway Company Limited - Shikoku Railway Company (a) - Metropolitan Expressway Company Limited - Japan Freight Railway Company (a) - Hanshin Expressway Company Limited - Nippon Telegraph and Telephone Corporation - Honshu-Shikoku Bridge Expressway (f) Company Limited - Nippon Telegraph and Telephone East - Japan Expressway Holding and Debt Corporation (f) Repayment Agency - Nippon Telegraph and Telephone West - Urban Development Corporation (a) Corporation (f) - Japan Science and Technology Agency - Northern Territories Issue Association - Japan Atomic Energy Agency (b) - National Consumer Affairs Center of Japan - Japan Environmental Storage & Safety - RIKEN (b) Corporation (h) - Environmental Restoration and Conservation - Japan International Cooperation Agency Agency - Welfare and Medical Service Agency - Fund for the Promotion and Development of - Government Pension Investment Fund the Amami Islands - Agriculture and Livestock Industries - Japan Foundation, The Corporation - Japan Student Services Organization - Japan Oil, Gas and Metals National Corporation (c)

… 2016 (WT/Let/…) GPA/MOD/JPN/81

- 6 -

APPENDIX I JAPAN ANNEX 3 Page 3/5

Supplies (cont'd)

1. Group A

- Japan Water Agency - Japan Regional Development Corporation

______

… 2016 (WT/Let/…)