Japan releases “2007 report on compliance by major trading partners with trade agreements — WTO, FTA/EPA, and BIT”

Press Release, April 16, 2007

Japan Ministry of Economy, Trade and Industry

Release of the “2007 Report on Compliance by Major Trading Partners with Trade Agreements -WTO, FTA/EPA, and BIT” and “METI Priorities based on
the Report”

The “2007 Report on Compliance by Major Trading Partners with Trade Agreements -WTO, FTA/EPA,
and BIT”
has been adopted by the Subcommittee on Unfair Trade Policies and Measures (chaired by
Professor Mitsuo MATSUSHITA, Seikei University) of the Industrial Structure Council.

Following the adoption of the report, METI has announced a list of issues deemed as high priority for now
in trade policy and its approach thereto under the title “METI Priorities,” and will place emphasis on
negotiations toward resolving these issues.

Note: The Report on Compliance by Major Trading Partners with Trade Agreements (previously known
as “Report on the WTO Inconsistency of Trade Policies by Major Trading Partners”) is an annual
report that points out trade policies and measures adopted by major countries that must be or should
be corrected in light of the WTO agreement and other international rules and that calls for corrective
action. The latest report is the 16th since the first report was released in 1992.

The 2007 report contains a newly introduced section, Part III, which provides analysis and explanations
concerning the provisions and rules of FTAs/EPAs and investment treaties as new international rules, in
addition to those of the WTO agreements in Part II, as they are likely to be used as a basis for future dispute
settlements. In addition, the latest report makes references not only to the agreements and treaties Japan has
concluded but also to major agreements and treaties concluded by third countries such as the U.S. and the
EC etc.

1. Release of the “2007 Report on Compliance by Major Trading Partners with Trade
Agreements -WTO, FTA/EPA, and BIT”

 The report points out a total of more than 100 problems involved in the trade policies and
measures of Japan’s major trading partners (the United States, China, ASEAN, the EU, South
Korea, etc.) and explains specific actions taken by Japan to address these problems
 Part I of the report points out 112 trade policies and measures whose consistency with
international rules are questionable, and describes the outlines and questionable points thereof as
well as recent related developments
 Part II provides detailed explanations with regard to the contents of and the basic concept behind
the WTO agreements that regulate various aspects of international economic activities with
reference to major cases
 The newly-added Part III explains, in a systematic manner, economic partnership agreements
and investment treaties, whose numbers have increased substantially in recent years, and which
function as new international rules to supplement the WTO agreements, and are thus expected to
be used as a basis for future dispute settlement. Japan concluded FTAs/EPAs with Singapore,
Mexico, Malaysia and the Philippines by 2006, while pursuing the maintenance and
enhancement of the WTO regime as the centerpiece of its trade policy. Part III explains the
provisions and rules of not only the agreements that involve Japan but also those of some
agreements concluded between other countries as necessary. In addition, it describes specifics of
major cases of international mediation under investment treaties, with a view to helping
Japanese companies make their investment and management decisions from a broader
perspective.

2. Release of “METI Priorities,” following the release of the “2007 Report on Compliance by
Major Trading Partners with Trade Agreements”

 Based on the points made by the Industrial Structure Council in the “2007 Report on Compliance
by Major Trading Partners with Trade Agreements,” METI released a list of 11 priority issues
selected from the 112 questionable trade policies and measures mentioned above as high priority
in its trade policy. By releasing the list, the METI aims to make its approaches clear to industry
and other parties concerned, and promote cooperation with industry in tackling these issues.
 Furthermore, “METI Priorities” contains evaluations of issues related to trade policies and
measures through follow-up examinations of the priority issues included in the lists of the
previous two years.
 Two of the priority issues included in April last year, namely, “China: Issues related to
regulating the import or export of toxic chemicals” and “Indonesia: Issues related to imposition
of tariffs on digital cameras” were excluded from this year’s list as the concerns were resolved or
there was a substantial improvement with regard to them.

To access the reports, click here: http://www.meti.go.jp/english/report/data/gCT07coe.html

source : METI

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