Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description: Trade in Services and Investment

The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in the water supply and waterworks industry in Japan

56.

Sector: Wholesale and Retail Trade

Sub-Sector: Livestock

Industry Classification: JSIC 5219 Miscellaneous agricultural, animal and poultry farm and aquatic products

Type of Reservation: Local Presence (Article 9.6)

Level of Government: Central Government

Measures: Livestock Dealer Law (Law No. 208 of 1949), Article 3

Description: Trade in Services

A person who intends to conduct livestock trading business is required to be resident in Japan, and to obtain a licence from the prefectural governor having jurisdiction over the place of residence. For greater certainty, the term "livestock trading" means the trading or exchange of livestock, or the good offices for such trading or exchange.

Annex 7. Referred to in chapter 9 (trade in services) and chapter 14 (investment)

NON-CONFORMING MEASURES RELATING TO PARAGRAPH 2 OF ARTICLES 9.7 AND 14.10

Part 1. Schedule of Australia

PART 1

Section 1. Notes for Sections 2 and 3

1. Section 2 of the Schedule of Australia sets out, pursuant to Articles 9.7 (Trade in Services - Non- Conforming Measures) and 14.10 (Investment - Non-Conforming Measures and Exceptions) the specific sectors, sub-sectors or activities for which Australia may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:

(a) Article 9.3 (Trade in Services - Market Access);

(b) Article 9.4 (Trade in Services - National Treatment) or 14.3 (Investment - National Treatment);

(c) Article 9.5 (Trade in Services - Most-FavouredNation Treatment) or 14.4 (Investment - MostFavoured-Nation Treatment);

(d) Article 9.6 (Trade in Services - Local Presence);

(e) Article 14.8 (Investment - Senior Management and Boards of Directors); or

(f) Article 14.9 (Investment – Prohibition of Performance Requirements)

2. Section 3 of the Schedule of Australia sets out, pursuant to Articles 9.7 (Trade in Services - Non- Conforming Measures) and 14.10 (Investment - Non-Conforming Measures and Exceptions), additional financial services sectors or activities for which Australia may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:

(a) Article 9.3 (Trade in Services Market Access);

(b) Article 9.4 (Trade in Services - National Treatment) or 14.3 (Investment - National Treatment) ;

(c) Article 9.5 (Trade in Services - Most-Favoured-— Nation Treatment) or 14.4 (Investment - Most- Favoured-Nation Treatment);

(d) Article 9.6 (Trade in Services - Local Presence);

(e) Article 14.8 (Investment - Senior Management and Boards of Directors); or

(f) Article 14.9 (Investment - Prohibition of Performance Requirements).

Note 1: Commitments on financial services are undertaken subject to the limitations and conditions set forth in Chapter 9 (Trade in Services), Chapter 11 (Financial Services), Chapter 14 (Investment), this Section and the Schedule below.

Note 2: To clarify Australia's commitment with respect to Article 9.3 (Trade in Services - Market Access), enterprises supplying financial services and constituted under the laws of Australia are subject to non-discriminatory limitations on juridical form. (1)

Note 3: Without prejudice to other means of prudential regulation of cross-border trade in financial services, Australia reserves the right to require the non-discriminatory licensing or registration of cross-border financial service suppliers of Japan and of financial instruments in accordance with Article 11.4 (Financial Services - Domestic Regulation).

Note 4: Australia reserves the right to adopt or maintain non-discriminatory limitations concerning admission to the market of new financial services where such measures are required to achieve prudential objectives. Australia may determine the institutional and juridical form through which a new financial service may be supplied and may require authorisation for the supply of the service. Where authorisation to supply a new financial service is required, the authorisation may only be refused for prudential reasons.

3. Each Schedule entry sets out the following elements:

(a) "Sector" refers to the sector for which the entry is made;

(b) "Obligations Concerned" specifies the obligation(s) referred to in paragraph 1 that, pursuant to paragraph 2 of Articles 9.7 (Trade in Services - Non-Conforming Measures) and 14.10 (Investment - Non-Conforming Measures and Exceptions), do not apply to the sectors, sub- sectors or activities listed in the entry;

(c) "Description" sets out the scope of the sector, sub-sector or activities covered by the entry; and

(d) "Existing Measures" identifies for transparency purposes, where relevant and practical, existing measures that apply to the sector, sub-sector or activities covered by the entry.

Note 1: In accordance with Articles 9.7 (Trade in Services - Non-Conforming Measures) and 14.10 (Investment - Non-Conforming Measures and Exceptions), the articles of this Agreement specified in the "Obligations Concerned" element of an entry do not apply to the non-conforming measure identified in the Description element of that entry.

Note 2: A reference to National Treatment in the "Obligations Concerned" element of an entry specifies Australia's obligations under Article 9.4 (Trade in Services - National Treatment) and Article 14.3 (Investment - National Treatment) .

Section 2.

1.

Sector: All Sectors

Obligations Concerned: Market Access (Article 9.3)

Description: Australia reserves the right to adopt or maintain any measure with respect to the supply of a service by the presence of natural persons, or other movement of natural persons, including entry or temporary stay, subject to the provisions of Chapter 12 (Movement of Natural Persons).

Existing Measures:

2.

Sector: All Sectors

Obligations Concerned: Market Access (Article 9.3) National Treatment Local Presence (Article 9.6) Senior Management and Boards of Directors (Article 14.8) Prohibition of Performance Requirements (Article 14.9)

Description: Australia reserves the right to adopt or maintain any measure according preferences to any Indigenous person or organisation or providing for the favourable treatment of any Indigenous person or organisation in relation to acquisition, establishment or operation of any commercial or industrial undertaking in the service sector.

Australia reserves the right to adopt or maintain any measure with respect to investment that accords preferences to any Indigenous person or organisation or providing for the favourable treatment of any Indigenous person or organisation.

For the purpose of this reservation, an Indigenous person means a person of the Aboriginal and Torres Strait Islander peoples.

Existing Measures: Legislation and ministerial statements at all levels of government including:

Australia's Foreign Investment Policy Native Title Act 1993 (Cth) Aboriginal Land Rights (Northern Territory) Act 1976 (Cth)

Aboriginal Land Rights Act 1983 (NSW) Native Title (New South Wales) Act 1994 (NSW)

Aboriginal Land Act 1991 (Qld)

Torres Strait Islander Land Act 1991 (Qld)

Native Title (South Australia) Act 1994 (SA)

Maralinga Tjarutja Land Rights Act 1984 (SA)

Anangu Pitjantjatjara Yankunytjatjara Land Rights Act 1981 (SA)

Anangu Pitjantjatjara Yankunytjatjara Land Rights Regulations 2010 (SA) Pitjantjatjara Land Rights Regulations 2003 (SA)

The statutory bodies that administer the Anangu Pitjantjatjara Yankunytjatjara lands and the Maralinga Tjarutja lands

Mining Act 1971 (SA)

Opal Mining Act 1995 (SA)

Aboriginal Lands Act 1995 (Tas) Traditional Owner Settlement Act 2010 (Vic)

3.

Sector: All Sectors

Obligations Concerned: Market Access (Article 9.3)

Description: Australia reserves the right to adopt or maintain any measure at the regional level of government that is not inconsistent with Australia's Revised Services Offer of 31 May 2005 in the World Trade Organization Doha Development Agenda negotiations (WTO Document - TN/S/O/AUS/Rev.1).

Existing Measures:

4.

Sector: All Sectors

Obligations Concerned: Market Access (Article 9.3) National Treatment Prohibition of Performance Requirements (Article 14.9)

Description: Australia reserves the right to adopt or maintain any measure with respect to proposals by foreign persons (2) and foreign government investors to invest in Australian urban land (3) (including interests that arise via leases, financing and profit sharing arrangements, and the acquisition of interests in urban land corporations and trusts), other than developed non-residential commercial real estate.

Existing Measures: Australia's foreign investment policy, which includes the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA); Foreign Acquisitions and Takeovers Regulations 1989 (Cth); Financial Sector (Shareholdings) Act 1998 (Cth); and Ministerial Statements.

Economic Development Act 2012 (Qld) Sustainable Planning Act 2009 (Qld) Integrated Resort Development Act 1997 (Qld)

Mixed Use Development Act 1992 (Qld) Sanctuary Cove Resort Act 1995 (Qld) Townsville City Council (Douglas Land Development) Act 1993 (Qld)

5.

Sector: All Sectors

Obligations Concerned: Market Access (Article 9.3) National Treatment Most-Favoured-Nation Treatment (Article 14.4)

Local Presence (Article 9.6)

Senior Management and Boards of Directors (Article 14.8)

Prohibition of Performance Requirements {Article 14.9)

Description: Australia reserves the right to adopt or maintain any measure that it considers necessary for the protection of its essential security interests with respect to proposals by foreign persons (4) and foreign government investors to invest in Australia.

Existing Measures: Australia's foreign investment policy, which includes the Foreign Acquisitions and Takeovers Act 1975 (Cth); Foreign Acquisitions and Takeovers Regulations 1989 (Cth); Financial Sector (Shareholdings) Act 1998 (Cth); and Ministerial Statements.

6.

Sector: All Sectors

Obligations Concerned: Market Access (Article 9.3) National Treatment Most-Favoured-Nation Treatment {Article 14.4) Local Presence (Article 9.6) Senior Management and Boards of Directors (Article 14.8) Performance Requirements (Article 14.9)

Description: Australia reserves the right to adopt or maintain any measure to allow the screening of proposals, by foreign persons (5), to invest 15 million Australian Dollars or more in Australian agricultural land and 53 million Australian Dollars or more in Australian agribusinesses.

Existing Measures: Australia's foreign investment policy, which includes the Foreign Acquisitions and Takeovers Act 1975 (Cth); Foreign Acquisitions and Takeovers Regulations 1989 (Cth); Financial Sector (Shareholdings) Act 1998 (Cth) and Ministerial Statements.

7.

Sector: All Sectors

Obligations Concerned: Market Access (Article 9.3) National Treatment Senior Management and Boards of Directors (Article 14.8) Prohibition of Performance Requirements {Article 14.9)

Description: Australia reserves the right to adopt or maintain any measure with respect to:

(a) the devolution to the private sector of services provided in the exercise of governmental authority at the time that the Agreement comes into force; and

(b) the privatisation of government owned entities or assets.

Existing Measures:

8.

Sector: All Sectors

Obligations Concerned: Market Access (Article 9.3) National Treatment Most-Favoured-Nation Treatment (Article 9.5 and Article 14.4) Local Presence (Article 9.6) Senior Management and Boards of Directors (Article 14.8) Prohibition of Performance Requirements (Article 14.9)

Description: Australia reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services (6) to the extent that they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health and child care.

Existing Measures:

9.

Sector: Broadcasting and Audiovisual Services (7) Advertising Services Live Performance (8)

Obligations Concerned: Market Access (Article 9.3) National Treatment Most-Favoured-Nation Treatment (Article 9.5 and Article 14.4) (9) Local Presence (Article 9.6) (10) Prohibition of Performance Requirements (Article 14.9)

Description: Australia reserves the right to adopt or maintain any measure with respect to:

(a) transmission quotas for local content on free-to-air commercial television broadcasting services;

(b) non-discriminatory expenditure requirements for Australian production on subscription television broadcasting services;

(c) transmission quotas for local content on free-to-air radio broadcasting services;

(d) other audiovisual services transmitted electronically, in order to make Australian audiovisual content reasonably available to Australian consumers; (11)

(e) spectrum management and licensing of broadcasting services; and (12)

(f) subsidies or grants for investment in Australian cultural activity.

This entry does not apply to foreign investment restrictions in the broadcasting and audiovisual services sector.

Existing Measures:

Broadcasting Services Act 1992(Cth) Radiocommunications Act 1992 (Cth) Income Tax Assessment Act 1936 (Cth) Income Tax Assessment Act 1997 (Cth) Screen Australia Act 2008 (Cth) Broadcasting Services (Australian Content) Standard 2005 Children's Television Standards 2009 Television Program Standard 23 - Australian Content in Advertising Commercial Radio Codes of Practice and Guidelines Community Broadcasting Codes of Practice

10.

Sector: Broadcasting and Audiovisual Services

Obligations Concerned: Most-Favoured-Nation Treatment (Article 9.5 and Article 14.4) Prohibition of Performance Requirements (Article 14.9)

Description: Australia reserves the right to adopt or maintain, under the International Co-Production Program, preferential co-production arrangements for film and television productions. Official co-production status, which may be granted to a co-production produced under these co-production arrangements, confers national treatment on works covered by these arrangements.

Existing Measures: International Co-Production Program

11.

Sector: Recreational, Cultural and Sporting Services (other than Audiovisual Services)

Obligations Concerned: Market Access (Article 9.3) National Treatment Most-Favoured-Nation Treatment (Article 9.5 and Article 14.4) Local Presence (Article 9.6) Senior Management and Boards of Directors (Article 14.8) Prohibition of Performance Requirements (Article 14.9)

Description: Australia reserves the right to adopt or maintain any measure with respect to the creative arts (13) and cultural heritage (14).

Existing Measures:

12.

Sector: Distribution Services

Obligations Concerned:Market Access (Article 9.3)

Description: Australia reserves the right to adopt or maintain any measure with respect to wholesale and retail trade services of tobacco products, alcoholic beverages, or firearms.

Existing Measures:

13.

Sector: Education Services

Obligations Concerned: Market Access (Article 9.3) National Treatment Local Presence (Article 9.6) Senior Management and Boards of Directors (Article 14.8) Prohibition of Performance Requirements (Article 14.9)

Description: Australia reserves the right to adopt or maintain any measure with respect to primary education.