TABLE OF CONTENTS Page List pf Sub-Committee on Unfair Trade Policies and Measures... iii METI Priorities Based on the 2017 Report on Compliance by Major Trading Partners with Trade Agreements (May 23, 2017)... vi List of Measures and Policies cited in Part I... xxi List of Columns... xxviii List of Acronyms... xxx Preface... xxxv Part I: Problems of Trade Policies and Measures in Individual Countries and Regions Chapter 1 China... 3 Chapter 2 The United States... 71 Chapter 3 ASEAN... 103 (1) General... 105 (2) Member Countries... 108 1. Thailand... 108 2. Indonesia... 112 3. Malaysia... 127 4. Viet Nam... 135 5. The Philippines... 136 6. Myanmar... 140 Chapter 4 European Union... 143 Chapter 5 Republic of Korea... 159 Chapter 6 Chinese Taipei... 165 Chapter 7 Australia... 169 Chapter 8 Canada... 171 Chapter 9 Russian Federation... 173 Chapter 10 India... 181 Chapter 11 Brazil... 199 Chapter 12 Miscellaneous Issues... 203 Part II: WTO Rules and Major Cases Overview of the WTO Agreements... 215 Chapter 1 Most-Favoured-Nation Treatment Principle... 225 Chapter 2 National Treatment Principle... 235 Chapter 3 Quantitative Restrictions... 243 xix xix
<Reference> Export Restrictions... 251 Chapter 4 Justifiable Reasons... 285 Chapter 5 Tariffs... 313 Chapter 6 Anti-Dumping Measures... 335 Chapter 7 Subsidies and Countervailing Measures... 369 Chapter 8 Safeguards... 409 Chapter 9 Trade-Related Investment Measures... 433 Chapter 10 Rules of Origin... 443 Chapter 11 Standards and Conformity Assessment Systems... 449 Chapter 12 Trade in Services... 477 Chapter 13 Intellectual Property... 505 Chapter 14 Government Procurement... 517 Chapter 15 Unilateral Measures... 525 Chapter 16 Regional Integration... 527 Chapter 17 Dispute Settlement... 545 Chapter 18 Monitoring Trade Policies/Measures... 583 Addendum-1 Trade and Environment... 595 Addendum-2 International Economic Activities and Competition Laws... 611 Addendum-3 Electronic Commerce... 629 Part III EPA/FTA and IIA Overview Establishment of Disciplines of Formation of Economic Partnerships... 643 Chapter 1 Issues on Trade in Goods... 683 Chapter 2 Services... 705 Chapter 3 Movement of Natural Persons... 741 Chapter 4 Intellectual Property... 761 Chapter 5 Investment... 783 <Reference> Recent Investment Treaty Arbitration Cases... 851 Chapter 6 Competition, Government Procurement and Trade Facilitation... 903 Chapter 7 Energy, Environment, Labor, Electronic Commerce... 931 Chapter 8 Settlement of Disputes between States and Improvement of Business Environment... 981 xx xx
LIST OF MEASURES AND POLICIES CITED IN PART I Chapter 1: China Transparency, Uniform Administration, and Judicial Review (1) Transparency... 5 (2) Uniform Administration... 8 (3) Judicial Review... 9 Export Restrictions... 9 1. Imposition of Export Tax... 9 2. Export Restrictions on Raw Materials... 13 Right to Trade (Approval System for Trading)... 14 Tariffs... 16 1. Tariff Structure... 16 2. Violation of Bound Tariff Rate on Photographic Roll Films, etc.... 18 Anti-Dumping and Countervailing Measures... 19 (1) AD Measures on Japanese High-Performance Stainless Steel Seamless Tubes... 21 (2) Implementation of Sampling Investigations Inconsistent with the AD Agreement (AD Measures on Japanese Optical Fiber Preform and Japanese Acrylic Fiver)... 22 (3) AD Measures on Japanese-made Polyvinylidene Chloride (PVDC Polymer)... 23 Subsidies... 24 Safeguards... 26 Trade-Related Investment Measures (TRIMs)... 26 Standards and Conformity Assessment Systems... 34 (1) Administration of the CCC Mark regarding Electric Appliances... 35 (2) Security Regulation of IT Equipment by Chinese Banking Industry... 36 (3) Chinese Cybersecurity Law... 37 (4) Measures for Controlling Pollution by Electronic Information Products... 38 (5) Regulations of New Cosmetic Ingredients... 39 (6) Regulations of Cosmetic Labels... 41 (7) Regulations of Chemical Substances... 42 Trade in Services... 43 (1) Distribution Services... 44 (2) Construction, Architecture and Engineering... 45 (3) Telecommunication Services... 45 (4) Finance... 47 Protection of Intellectual Property... 53 (1) Issues Related to Counterfeit, Pirated and Other Infringing Products... 55 xxi xxi
(2) Issue of Bad Faith Filing... 59 (3) Licensing Regulations on Patents and Know-How... 61 Government Procurement... 68 Chapter 2: United States National Treatment... 73 (1) Harbor Maintenance Tax HMT... 73 (2) Merchant Shipping Act of 1920 (Jones Act)... 73 Quantitative Restrictions... 74 (1) Export Management System... 74 (2) Export Restrictions on Logs... 74 Tariffs... 75 (1) High Tariff Products... 75 (2) Method of Calculating Tariffs on Clocks and Wristwatches... 76 Anti-Dumping Measures... 76 (1) The Byrd Amendment (Amendment to the Tariff Act of 1930) (DS217/DS234) (2) Calculation of the Margin of Dumping via the Zeroing Procedure (DS184)... 79 (3) Anti-Dumping Measure on Certain Hot-Rolled Steel Products from Japan (DS184)... 80 (4) Unfairly Long-Term Continuation of AD Duties (Sunset Provision)... 81 (5) Model Matching... 82 (6) Anti-Dumping Investigation into Thick Plates from Japan... 82 Subsidies and Countervailing Measures... 83 The 2014 Farm Bill... 83 Rules of Origin... 85 Special Marking Requirement of Origin on Watches and Clocks... 85 Standards and Conformity Assessment... 86 (1) American Automobile Labeling Act... 86 (2) Regulations on Corporate Average Fuel Economy... 86 (3) Adoption of the Metric System... 86 Trade in Services... 87 (1) The Foreign Investment and National Security Act of 2007: FINSA... 87 (2) Financial Services... 88 (3) Telecommunications... 89 (4) Maritime Transport... 90 Protection of Intellectual Property... 92 (1) Trademark Systems (DS176, US Omnibus Act 211)... 92 (2) Copyright and Related Rights... 93 xxii xxii
(3) Section 337 of the Tariff Act of 1930... 95 Government Procurement... 97 Unilateral Measures... 99 (1) Section 301 of the Trade Act of 1974... 99 (2) Special 301 (procedure after amendment by Section 1301 of the 1988 Act) and Other Related Provisions... 101 (3) US Re-Export Control Regimes... 101 Chapter 3: ASEAN I. General Protection of Intellectual Property... 105 (1) Availability of Enforcement... 105 (2) Actions Concerning Counterfeit and Pirated Goods... 106 II. Member Countries 1. Thailand Tariffs... 108 Tariff Structure... 108 Standards and Conformity Assessment... 109 Technical Regulations for Steele Products... 109 Trade in Services... 110 Foreign Investment Restrictions, etc.... 110 2. Indonesia National Treatment... 112 Local Content Requirement on Retail Services... 112 Quantitative Restrictions... 113 (1) Quantitative Import Restrictions (Rice, Salt, and Used Capital Goods)... 113 (2) Import Restriction (Compulsory Registration by Importers of Steel Products)... 114 (3) Export Restrictions on Logs and Lumber Products... 115 (4) Export Restrictions on Mineral Resources and Local Content Issue... 115 Tariffs... 117 Tariff Structure... 117 Anti-Dumping Measures... 119 AD Measures on Japanese Cold-Rolled Stainless Steel Sheet... 119 Trade-related Investment Measures... 120 Local Content Requirements for LTE Devices, etc.... 120 Standards and Conformity Assessment... 121 (1) Technical Regulations for Steel Products... 121 xxiii xxiii
(2) Regulations on Toy that can be an Entry Barrier for Foreign Companies... 121 Trade in Services... 123 Foreign Investment Restrictions, etc.... 123 Protection of Intellectual Property... 125 (1) Suspension of Infringing Goods at Borders... 125 (2) Execution of Japan-Indonesia EPA... 126 3. Malaysia National Treatment... 127 (1) Imposition of Internal Taxes on Automobiles and Import Restrictions on Automobiles Based on the AP System... 127 (2) Excise Tax Exemption System on Domestic Automobile Parts... 127 Quantitative Restrictions... 127 (1) Export Restrictions on Logs... 127 (2) Import Tax Exemption Ceiling System on Steel Sheets... 127 Tariffs... 128 Increased Tariff on Steel Plates and Other Issues... 128 Standards and Conformity Assessment... 129 Technical Regulations for Steel Products... 129 Trade in Services... 130 Foreign Investment Restrictions, etc.... 130 Intellectual Property... 134 Problems of Distribution of Copyright Infringing DVDs... 134 4. Viet Nam Safeguards... 135 Safeguard Measures against Semi-Finished and Certain Finished Products of Alloy and non-alloy Steel... 135 5. The Philippines Quantitative Restrictions... 136 Export Restrictions on Raw Materials... 136 Tariffs... 137 Tariff Structure... 137 Trade in Services... 138 Foreign Investment Restrictions, etc.... 138 6. Myanmar Trade in Services... 140 Foreign Investment Restrictions, etc.... 140 xxiv xxiv
Chapter 4: European Union Tariffs... 144 (1) High Tariff Products... 144 (2) Tariff Classification Issue on the Treatment of Products Covered by the Information Technology Agreement... 144 Standards and Conformity Assessment System... 150 (1) EU Directive on the Restriction of the Use of Certain Hazardous Substances in the Electrical and Electronic Equipment (RoHS Directive). (2) EU Directive Establishing a Framework for the Setting of Ecodesign Requirements for Energy-Related Products (EuP)... 151 (3) Regulations on Chemicals (REACH)... 152 (4) Regulations on Biocidal Products... 153 Trade in Services... 154 Audio-Visual Service... 154 Government Procurement... 155 Proposed New Regulations on Public Procurement (Proposal on International Procurement Instruments)... 155 Regional Integration... 155 Increasing Binding Tariff Rates... 155 Chapter 5: Republic of Korea Tariffs... 159 High Tariff Products... 159 Anti-Dumping Measures... 160 (1) AD Measure on Japanese-Made Valves for Pneumatic Transmissions... 160 (2) Sunset Review of Japanese Stainless Steel Bars... 160 Standards and Conformity Assessment Systems... 161 (1) Act concerning Registration, Evaluation, etc. of Chemical Substances... 161 (2) Import Restrictions on Japanese Fishery Products, etc.... 163 Chapter 6: Chinese Taipei Tariffs... 165 High Tariff Products... 165 Trade in Services... 166 Regulations in the Telecommunications Sector... 166 Protection of Intellectual Property... 167 Lightened and Non-Criminal Penalties on Infringement... 167 Chapter 7: Australia Tariffs... 169 High Tariff Products... 169 xxv xxv
Chapter 8: Canada Quantitative Restrictions... 171 Export Restrictions on Logs... 171 Tariffs... 172 High Tariff Products... 172 Chapter 9: Russian Federation National Treatment... 173 (1) Introduction of Recycling Fee on Motor Vehicle... 173 (2) The Copyright Levy Framework for Private Audio/Audiovisual Recordings... 174 Tariffs... 175 High Tariff Products... 175 Export Taxes... 177 Tariff on Logs... 177 Chapter 10: India National Treatment... 181 Local Content Requirement on Domestically Manufactured Electronic Products... 181 Tariffs (1) High Tariff Products... 182 (2) Introduction of Special Additional Tariffs on Imported Products... 183 (3) Increase in Tariffs on IT Products... 186 Export Restrictions... 187 Minimum Import Price (MIP) System... 187 Anti-Dumping... 187 (1) AD Measures on Japanese Hot-Rolled Steel Sheets and Thick Plates; AD Measures on Japanese Cold-Rolled Steel Sheets... 187 (2) AD Measures on Japanese-Made Resorcinol... 188 Subsidies... 189 National Food Security Act... 189 Safeguards... 190 Safeguard Measure on Hot-Rolled Flat Products... 190 Standards and Conformity Assessment Systems... 191 (1) India s Technical Regulations for Steel Products... 191 (2) Technical Regulations for Automobile Tires... 192 (3) Strengthening of Restrictions on Conditions for Licensing Telecommunications Carriers... 193 (4) Introduction of Technical Regulations on Electronic and Information Technology Devices... 194 xxvi xxvi
Trade in Services... 195 Foreign Investment Restrictions, etc.... 195 Protection of Intellectual Property... 197 Protection of Patents in Relation to Pharmaceuticals, etc.... 197 Chapter 11: Brazil National Treatment... 199 Brazil s Measure concerning Discriminatory Taxation and Charges for Automobiles, etc.... 199 Intellectual Property... 200 Regulations of Patent, Know-How and Licenses... 200 Chapter 12: Miscellaneous Issues 1. Argentina - Introduction of an Import License System... 203 2. Ukraine - Export Restrictions on Grain (Export Quota)... 204 3. Ecuador - Regulations on Total Number/Amount of Imported Vehicles... 205 4. Turkey - Infringement of Trademark Rights... 205 5. Turkey - Customs Valuation Measure and Additional Tariff Measure on Imported Rubber Tires... 207 6. Mongolia - Foreign Investment Restrictions... 207 7. GATT Article II Violations regarding Taxation of Flat Panel Displays... 208 xxvii xxvii