Following are excerpts from each of the areas considered in the IAP Peer Review Report Study Report on Japan.
Tariffs - For all but four product categories the vast majority of applied tariffs are at 5% or lower. The remaining steps required to achieve full duty-free treatment for these products are thus very small. Tariffs above 20% are very largely confined to two product categories, agriculture and leather, rubber, footwear and travel goods, and these are also the product categories in which all of Japan's tariff rate quotas are found. In its preferential trade arrangements Japan has generally been willing to provide for the immediate or phased elimination of duties on products for which MFN tariffs are already at low levels.
Non-Tariff Measures - Japan's use of non-tariff measures is in accordance with the normal provisions of international agreements and arrangements. There has accordingly been no requirement for action since the last IAP peer review. Japan makes only minor discretionary use of contingent protection measures.
Services - Japan has made some limited progress towards the Bogor goals of free trade and investment in services since the last IAP, specifically in audio-visual communications services, transport services (port), and energy services. There have also been changes on temporary entry and stay of service providers in medical services.
Investment - Japan's inward direct investment (both stocks and flows) are much less than its outward direct investment and its inward FDI stock/GDP ratio is only 2.2% in 2005, much lower than similar ratios for the US and EU, and than Japan's own outward FDI/GDP ratio.
Standards and Conformance - Alignment of Japanese Industrial Standards (JIS) with international standards is well advanced. Approval of the fixing of JIS marks by foreign factories and registration of foreign bodies as JIS mark certification bodies appears to be proceeding satisfactorily. Japan is also actively reviewing Japanese Agricultural Standards (JAS) to ensure their relevance to pubic needs and to align them with international standards where appropriate.
Customs Procedures - Since the last IAP review Japan has continued to pursue improvements in the efficiency and transparency of customs procedures. Improvements in efficiency have been reflected in further reductions in time required for clearance of goods through Japanese ports. Important enhancements have been made to advance ruling systems.
Intellectual Property Rights - Japan has achieved a high level of IPR protection and enforcement and further progress has been recorded in its 2006 IAP. Measures have been introduced for effective IPR implementation and protection, including increased penalties for IPR violations.
Competition Policy - Japan has made substantive progress in competition policies/law since the last IAP, focusing on enforcement of the Antimonopoly Act by the Japan Fair Trade Commission. Amendments to the AMA include revision of the surcharge system, introduction of the leniency program, compulsory measures for criminal investigations.
Government Procurement - Japan continues to develop its government procurement regime in line with the requirements of the WTO's GPA and domestic measures designed to promote transparency, non-discrimination and fair dealing. Some modest enhancements have been made to the system since the last IAP peer review. Deregulation/Regulatory Review and Reform - As a central element in its long-term economic strategy, regulatory review and reform continues to be given high priority by the Japanese government. This is reflected in the structures that have been established within the government to support regulatory reform as well as the implementation of successive Three Year Programmes for the Promotion of Regulatory Reform (TPPRRs), which have continued to advance the regulatory reform agenda since the last IAP peer review. Implementation of WTO Obligations (including Rules of Origin) - Japan has been conscientiously implementing its Uruguay Round commitments. It is also playing an active part in efforts to complete work on harmonised non-preferential rules of origin in the WTO and WCO. The use of co-equal rules of origin for some products in some of Japan's recent bilateral FTAs is an interesting innovation that may be useful for wider application if it proves successful. Dispute Mediation - Japan continues to support effective dispute settlement procedures for trade and investment matters, both between governments and between governments and private entities. Mobility of Business People - Since the last IAP, there have been efforts to improve the mobility of business people. These have included implementation of the APEC Business Travel Card; relaxation of visa policy including granting of multiple-entry visas; relaxation of temporary residence for certain categories of managerial and professional personnel and service providers.
RTAs/FTAs - In recent years Japan is giving priority to establishing EPAs/FTAs, and thus abandoning its traditional WTO-only trade policy. Its EPA/FTA strategy is motivated by the RTA policies pursued by the US and EU as well as more recently by China and India. It sees EPAs/FTAs as conferring economic and political advantages.
For further information or to arrange an interview contact:
Christopher Hawkins on +61 (0)433 810 844 or E-mail: ch@apec.org
Anita Douglas on +61 (0)420 945 613 or E-mail: ad@apec.org
