RESTRICTED

(95-2025)

Original: English

Committee on Subsidies and Countervailing Measures

SUBSIDIES

Notifications Pursuant to Article XVI:1 of the GATT 1994

and Article 25 of the Agreement on Subsidies and

Countervailing Measures

JAPAN

The following full notification has been received from the Permanent Mission of Japan.

In view of the decision taken by the CONTRACTING PARTIES of the GATT 1947 on Avoidance of Procedural and Institutional Duplication (L/7582, dated 13 December 1994) this notification is deemed to be also a notification under Article XVI:1 of the GATT 1947.

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Grants for Modernizing Coal Pits

1. Title of the subsidy programme

Grants for modernizing coal pits.

2. Period covered by the notification

April 1994-March 1995.

3. Policy objective and/or purpose of the subsidy

To promote structural adjustment of coal-mining industry while keeping employment by means of promoting rationalization and maintaining stable production and safety.

4. Background and authority for the subsidy

NEDO (New Energy and Industrial Technology Development Organization).

5. Legislation under which it is granted

Assistance by budget.

6. Form of the subsidy

(i.e. grant, loan, tax concession, etc.)

Grant.

7. To whom and how the subsidy is provided

Coal mining company possessing coal mines with galleries which are regarded as contributing to stable production and safety.

Financial year 1992 (settlement of accounts) ¥ 3,556 million

Financial year 1993 (settlement of accounts) ¥ 2,864 million

Financial year 1994 (budget) ¥ 4,402 million

9. Duration of the subsidy and/or any other time-limits attached to it

Financial year 1967 - financial year 2001.

10. Statistical data permitting an assessment of the trade effects of a subsidy

Grants for Security of Mines

1. Title of the subsidy programme

Grants for security of mines.

2. Period covered by the notification

April 1994-March 1995.

3. Policy objective and/or purpose of the subsidy

To secure safety in coal mines.

4. Background and authorization for the subsidy

Ministry of International Trade and Industry.

5. Legislation under which it is granted

Assistance by budget.

6. Form of the subsidy

(i.e. grant, loan, tax concession, etc.)

Grant.

Owner of a coal mining right.

Financial year 1992 (settlement of accounts) ¥ 3,053 million

Financial year 1993 (settlement of accounts) ¥ 2,902 million

Financial year 1994 (budget) ¥ 4,290 million

9. Duration of the subsidy and/or any other time-limits attached to it

Financial year 1965 - financial year 2001.

Grants for Promoting Coal Mining Company's Diversification of their

Management and Developing New Business Frontier

1. Title of the subsidy programme

Grants for promoting coal mining company's diversification of their management and developing new business frontier.

2. Period covered by the notification

April 1994-March 1995.

3. Policy objective and/or purpose of the subsidy

To assist coal mining company's developing new business frontier to promote structural adjustment of the domestic coal mining industry.

4. Background and authorization for the subsidy

NEDO (New Energy and Industrial Technology Development Organization).

5. Legislation under which it is granted

Assistance by budget.

6. Form of the subsidy

(i.e. grant, loan, tax concession, etc.)

Grant.

7. To whom and how the subsidy is provided

Coal mining company to develop new business frontier (prescribed by Article 7 of the Law on Extraordinary Measures for Structural Adjustment of the Coal Mining Industry).

Financial year 1992 (settlement of accounts) ¥ 422 million

Financial year 1993 (settlement of accounts) ¥ 604 million

Financial year 1994 (budget) ¥ 1,514 million

9. Duration of the subsidy and/or any other time-limits attached to it

Financial year 1992 - financial year 2001.

10. Statistical data permitting an assessment of the trade effects of a subsidy

Grants for Stabilizing Coal Industry

1. Title of the subsidy programme

Grants for stabilizing coal industry.

2. Period covered by the notification

April 1994-March 1995.

3. Policy objective and/or purpose of the subsidy

To promote structural adjustment of Japanese coal mining industry while keeping employment by means of stabilizing the financial basis of coal mining industry.

4. Background and authorization for the subsidy

NEDO (New Energy and Industrial Technology Development Organization).

5. Legislation under which it is granted

Assistance by budget.

6. Form of the subsidy

(i.e. grant, loan, tax concession, etc.)

Grant.

7. To whom and how the subsidy is provided

Owners of mining rights who produce coal by underground mining and meet the given conditions.

Financial year 1992 (settlement of accounts) ¥ 3,590 million

Financial year 1993 (settlement of accounts) ¥ 4,290 million

Financial year 1994 (budget) ¥ 5,691 million

9. Duration of the subsidy and/or any other time-limits attached to it

Financial year 1967 - financial year 2001.

10. Statistical data permitting an assessment of the trade effects of a subsidy

(thousand tons)

Subsidy for the Rationalization of Petroleum Refinery

1. Title of the subsidy programme

Subsidy for the rationalization of petroleum refinery.

2. Period covered by the notification

April 1994 - March 1995.

3. Policy objective and/or purpose of the subsidy

To assist the rationalization (including closure) of refineries.

4. Background and authority for the subsidy

Ministry of International Trade and Industry.

5. Legislation under which it is granted

Assistance by budget.

6. Form of the subsidy

(i.e. grant, loan, tax concession, etc.)

Interest rate subsidy.

7. To whom and how the subsidy is provided

Oil refining companies which have rationalized their business.

Financial year 1992 (settlement of accounts) ¥ 956 million

Financial year 1993 (settlement of accounts) ¥ 1,063 million

Financial year 1994 (budget) ¥ 982 million

9. Duration of the subsidy and/or any other time-limits attached to it

From financial year 1986.

10. Statistical data permitting an assessment of the trade effects of a subsidy

There is no influence on the rate of imports and exports by this subsidy.

Subsidy for Promotion of Textile and Apparel Industry

1. Title of the subsidy programme

Subsidy for promotion of textile and apparel industry.

2. Period covered by the notification

April 1994-March 1995.

3. Policy objective and/or purpose of the subsidy

To promote structural improvement of the textile industry.

4. Background and authority for the subsidy

Textile Industry Restructuring Agency.

5. Legislation under which it is granted

Law on Extraordinary Measures for the Structural Improvement of the Textile Industry.

6. Form of the subsidy

(i.e. grant, loan, tax concession, etc.)

Grant.

7. To whom and how the subsidy is provided

Groups of enterprises approved under the Law on Extraordinary Measures for the Structural Improvement of the Textile Industry.

¥ 72 million (financial year 1994 budget).

9. Duration of the subsidy and/or any other time-limits attached to it

Financial year 1994 - financial year 1998.

10. Statistical data permitting an assessment of the trade effects of a subsidy

Loan Guarantee for Promotion of Textile and Apparel Industry

1. Title of the subsidy programme

Loan guarantee for promotion of textile and apparel industry.

2. Period covered by the notification

April 1994 - March 1995.

3. Policy objective and/or purpose of the subsidy

To promote structural improvement of the textile industry.

4. Background and authorization for the subsidy

Textile Industry Restructuring Agency.

5. Legislation under which it is granted

Law on Extraordinary Measures for the Structural Improvement of the Textile Industry.

6. Form of the subsidy

(i.e. grant, loan, tax concession, etc.)

Loan guarantee.

7. To whom and how the subsidy is provided

Groups of enterprises approved under the Law on Extraordinary Measures for the Structural Improvement of the Textile Industry.

¥ 247 million (total new guarantees extended during financial year 1994).

9. Duration of the subsidy and/or any other time-limits attached to it

Financial year 1967 - financial year 1998.

10. Statistical data permitting an assessment of the trade effects of a subsidy

Grant for Promotion of Research and Development of Future Ships

1. Title of the subsidy programme

Grant for promotion of research and development of future ships.

2. Period covered by the notification

April 1994-March 1995.

3. Policy objective and/or purpose of the subsidy

To promote research and development of future ships.

4. Background and authority for the subsidy

Ministry of Transport.

5. Legislation under which it is granted

Law for the Association for Structural Improvement of the Shipbuilding Industry.

6. Form of the subsidy

(i.e. grant, loan, tax concession, etc.)

Grant.

7. To whom and how the subsidy is provided

To promote the research and development of future ships.

Financial year 1992 ¥ 830 million

Financial year 1993 ¥ 862 million

Financial year 1994 ¥ 873 million

9. Duration of the subsidy and/or any other time-limits attached to it

There is no time-limit attached to it.

10. Statistical data permitting an assessment of the trade effects of a subsidy

The know-how from the subsidized R & D projects has not produced commercial products, so the trade effects of this subsidy are unknown at this point.

Resource Propagation Programme for Salmon

1. Title of the subsidy programme

Resource propagation programme for salmon.

2. Period covered by the notification

April 1994-March 1995.

3. Policy objective and/or purpose of the subsidy

Propagation and maintenance of salmon resources by assisting in developing hatching and breeding facilities and to promote public activities for preventing illegal fishing.

4. Background and authorization for the subsidy

Ministry of Agriculture, Forestry and Fisheries.

5. Legislation under which it is granted

Preservation of Marine Resources Law.

6. Form of the subsidy

(i.e. grant, loan, tax concession, etc.)

Grant.

7. To whom and how the subsidy is provided

Recipient Body: Fisheries Cooperative.

¥ 469 million (total amount budgeted for financial year 1994).

9. Duration of the subsidy and/or any other time-limits attached to it

There is no time-limit attached to it.

10. Statistical data permitting an assessment of the trade effects of a subsidy

(Unit: tonnes)

There is no influence on the rate of imports and exports by this subsidy.