Sub-Sector: Arms Industry Explosives Manufacturing Industry
Industry Classification:
Type of Reservation: National Treatment (Article 3) Performance Requirements (Article 8) Senior Management and Boards of Directors (Article 9)
Description: Japan reserves the right to adopt or maintain any measure relating to investment in arms industry and explosives manufacturing industry.
Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27 and 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 and 5
6. Sector: Energy
Sub-Sector: Electricity Utility Industry Gas Utility Industry Nuclear Energy Industry
Industry Classification:
Type of Reservation: National Treatment (Article 3) Performance Requirements (Article 8) Senior Management and Boards of Directors (Article 9)
Description: Japan reserves the right to adopt or maintain any measure relating to investment in the energy industry listed in the "Sub-Sector" element.
Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27 and 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 and 5
7. Sector: Fisheries
Sub-Sector: Fisheries within the Territorial Sea, Internal Waters, Exclusive Economic Zone and Continental Shelf
Industry Classification: JSIC 031 Marine fisheries JSIC 032 Inland water fisheries JSIC 041 Marine aquaculture JSIC 042 Inland water aquaculture JSIC 8093 Recreational fishing guide business
Type of Reservation: National Treatment (Article 3) Most-Favored-Nation Treatment (Article 4) Performance Requirements (Article 8) Senior Management and Boards of Directors (Article 9)
Description: Japan reserves the right to adopt or maintain any measure relating to investment in fisheries in the territorial sea, internal waters, exclusive economic zone and continental shelf of Japan. For the purposes of this reservation, the term "fisheries" means the work of taking and cultivation of aquatic resources, including the following fisheries related activities: (a) investigation of aquatic resources without taking such resources; (b) luring of aquatic resources; (c) preservation and processing of fish catches; (d) transportation of fish catches and fish products; and (e) provision of supplies to other vessels used for fisheries.
Existing 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 Law for Regulation of Fishing Operation by Foreign Nationals (Law No. 60 of 1967), Articles 3, 4 and 6 Law concerning the Exercise of Sovereign Rights concerning Fisheries in the Exclusive Economic Zones (Law No. 76 of 1996), Articles 4, 5, 7, 8, 9, 10, 11, 12 and 14
8. Sector: Information and Communications
Sub-Sector: Broadcasting Industry
Industry Classification: JSIC 380 Establishments engaged in administrative or ancillary economic activities JSIC 381 Public broadcasting, except cablecasting JSIC 382 Private-sector broadcasting, except cablecasting JSIC 383 Cablecasting
Type of Reservation: National Treatment (Article 3) Performance Requirements (Article 8) Senior Management and Boards of Directors (Article 9)
Description: Japan reserves the right to adopt or maintain any measure relating to investment in broadcasting industry.
Existing 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 Radio Law (Law No. 131 of 1950), Article 5 Broadcast Law (Law No. 132 of 1950), Articles 93, 116, 125, 159 and 161
9. Sector: Land Transaction
Sub-Sector:
Industry Classification:
Type of Reservation: National Treatment (Article 3) Most-Favored-Nation Treatment (Article 4)
Description: With respect to the acquisition or lease of land properties in Japan, prohibitions or restrictions may be imposed by Cabinet Order on foreign nationals or legal persons, where Japanese nationals or legal persons are placed under identical or similar prohibitions or restrictions in the foreign country.
Existing Measures: Alien Land Law (Law No. 42 of 1925), Article 1
Schedule of Oriental Republic of Uruguay
1. Sector: Road, Railway, Airport, and Port Services and Infrastructure
Sub-Sector:
Type of Reservation: National Treatment (Article 3) Performance Requirements (Article 8) Senior Management and Boards of Directors (Article 9)
Description: The Oriental Republic of Uruguay (hereinafter referred to in this Schedule as "Uruguay") reserves the right to adopt or maintain any measure with respect to the concessions relating to road, railway, airport, or port services and infrastructure as well as the renewal or re-negotiation of existing concessions.
Existing Measures:
2. Sector: Distribution services of liquid, solid and gaseous fuels and related products
Sub-Sector:
Type of Reservation: Performance Requirements (Article 8)
Description: Uruguay reserves the right to adopt or maintain any measure with respect to concessions relating to distribution services of liquid, solid and gaseous fuels, and related products, as well as any renewals or re-negotiations of existing concessions relating to such services. The Administración Nacional de Combustibles, Alcohol y Portland (ANCAP) grants concessions according to the law.
Existing Measures:
3. Sector: All Sectors
Sub-Sector:
Type of Reservation: National Treatment (Article 3) Performance Requirements (Article 8) Senior Management and Boards of Directors (Article 9)
Description: Uruguay reserves the right to adopt or maintain any measure that accords rights or preferences to minorities due to social or economic reasons.
Existing Measures:
4. Sector: All sectors
Sub-Sector:
Type of Reservation: National Treatment (Article 3) Performance Requirements (Article 8) Senior Management and Boards of Directors (Article 9)
Description: Uruguay reserves the right to adopt or maintain any measure that limits the transfer or disposal of any interest held in an existing State Enterprise, such that only an Uruguayan national may obtain such interest. The limitation in the preceding mentioned above, however, pertains only to the initial transfer or disposal of such interest, and not to subsequent transfers or disposals. Uruguay reserves the right to adopt or maintain any measure that limits control of, or imposes requirements on, any new enterprise created by the transfer or disposal of any interest as described in the preceding paragraph, such as through measures relating to the structure of the board of directors, but not through limitations on the ownership of the interest transferred. Uruguay also reserves the right to adopt or maintain any measure related to the nationality of senior management and members of the board of directors in such new enterprise. A "State Enterprise" means any enterprise owned or controlled through participation in its property by the Uruguayan State, and shall include any enterprise established after the date of entry into force of this Agreement.
Existing Measures:
5. Sector: Postal Services
Sub-Sector:
Type of Reservation: National Treatment (Article 3)
Description: Uruguay reserves the right to adopt or maintain any measure that restricts the receipt, processing, transport, or delivery of periodic invoices provided by State Enterprises, including: (a) ANTEL - Administración Nacional de Telecomunicaciones (basic telecommunications), (b) UTE - Usinas y Trasmisiones Eléctricas (electricity distribution), (c) OSE – Obras Sanitarias del Estado (water distribution).
Existing Measures:
6. Sector: Social Services
Sub-Sector:
Type of Reservation: National Treatment (Article 3) Most-Favored-Nation Treatment (Article 4) Performance Requirements (Article 8) Senior Management and Boards of Directors (Article 9)
Description: Uruguay reserves the right to adopt or maintain any measure with respect to the provision of law enforcement services, and the following services to the extent they are social services established or maintained for a public purpose: rehabilitation and social re-adaptation services, social security or unemployment benefits, social welfare, public education, public training, health, child care, public sewage services, and water supply services.
Existing Measures:
7. Sector: Traditional Events and Festivities
Sub-Sector: Type of Reservation: National Treatment (Article 3)
Description: Uruguay reserves the right to adopt or maintain any measure with respect to the organization and development of events relating to popular national traditions, such as parades and Carnaval.
Existing Measures:
8. Sector: Railway Transportation Services and Ancillary Services
Sub-Sector:
Type of Reservation: Performance Requirements (Article 8)
Description: Uruguay reserves the right to adopt or maintain performance requirements in railway transportation services and ancillary services, provided that they are adequate, transparent, and non-discriminatory under Uruguayan law.
Existing Measures:
9. Sector: All Sectors
Sub-Sector:
Type of Reservation: Most-Favored-Nation Treatment (Article 4)
Description: Uruguay reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement. Uruguay reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving: (a) aviation; (b) fisheries; (c) maritime matters, including salvage; or (d) telecommunications.
Existing Measures:
10. Sector: Ground Transportation
Sub-Sector:
Type of Reservation: Most-Favored-Nation Treatment (Article 4)
Description: Uruguay reserves the right to adopt or maintain any measure that accords differential treatment to Mercado Común del Sur (MERCOSUR) member countries under any bilateral or multilateral international agreement relating to ground transportation and entered into pursuant to its MERCOSUR commitments after the date of entry into force of this Agreement.
Existing Measures:
11. Sector: Public Finances
Sub-Sector:
Type of Reservation: National Treatment (Article 3)
Description: Uruguay reserves the right to adopt or maintain any measure that restricts the acquisition, sale, or other disposition of bonds, treasury bills or other debt instrument issued by the Central Bank of Uruguay or by the Government of Uruguay.
Existing Measures:
12. Sector: All Sectors
Sub-Sector:
Type of Reservation: National Treatment (Article 3)
Description: Uruguay reserves the right to adopt or maintain any measure tending towards the establishment of a Border Security Zone along land and river boundaries of the national Area.
Existing Measures:
13. Sector: Communications
Sub-sector: Radio, Television and other Audiovisual Communication Services
Type of Reservation: National Treatment (Article 3) Performance Requirements (Article 8) Senior Management and Boards of Directors (Article 9)
Description: Uruguay reserves the right to adopt or maintain any measure relating to radio, television and other audiovisual communication services.
Existing Measures: Decreto-Ley Nº 14.670 Decreto-Ley Nº 15.671 (Article 10) Ley Nº 16.099 (Article 6) Ley Nº 18.232 Decreto Nº 734/978 (Articles 8, 9, and 11) Decreto Nº 327/980 Decreto Nº 350/986 Decreto Nº 153/012
14. Sector: Rural Property and Agricultural Exploitations
Sub-Sector:
Type of Reservation: National Treatment (Article 3) Most-Favored-Nation Treatment (Article 4) Performance Requirements (Article 8)
Description: Uruguay reserves the right to adopt or maintain any measure that restricts the purchase and ownership of rural properties and agricultural exploitations to enterprises that are owned by, or which directly or indirectly involves a foreign state property or sovereign funds thereof.
Existing Measures:
15. Sector: All sectors
Sub-Sector:
Type of Reservation: National Treatment (Article 3) Most-Favored-Nation Treatment (Article 4)
Description: National Treatment and Most-Favored-Nation Treatment may not be accorded to investors of the Japan and their investments with respect to subsidies.
Existing Measures:
III. Expropriation
1. The Contracting Parties confirm their shared understanding that paragraph 1 of Article 16 is intended to reflect customary international law concerning the obligation of States with respect to expropriation.
2. A measure or a series of measures by a Contracting Party cannot constitute an expropriation unless it interferes with a tangible or intangible, movable or immovable property, or property interests in an investment.
3. Paragraph 1 of Article 16 addresses the following two (2) situations: (a) the first situation is direct expropriation, where investments are nationalized or otherwise directly expropriated through formal transfer of title or outright seizure; and (b) the second situation is indirect expropriation, where a measure or a series of measures of a Contracting Party has an effect equivalent to direct expropriation without formal transfer of title or outright seizure.
4. The determination of whether a government measure or a series of government measures of a Contracting Party, in a specific fact situation, constitutes an indirect expropriation requires a case-by-case, fact-based inquiry that considers, among other factors:
(a) The economic impact of the government measure or series of government measures, although the fact that such measure or series of such measures has an adverse effect on the economic value of investments, standing alone, does not establish that an indirect expropriation has occurred;
(b) The extent to which the government measure or series of government measures interferes with distinct and reasonable expectations arising out of investments; and
(c) The character of the government measure, including its objectives.
5. Except in rare circumstances, such as when a measure or a series of measures by a Contracting Party is extremely severe or disproportionate in light of its purpose, non discriminatory regulatory actions adopted by the Contracting Party that are designed and applied to protect legitimate public welfare objectives, such as public health, safety, and the environment, do not constitute indirect expropriations.
IV. Financial services
1. Notwithstanding any other provisions of this Agreement, a Contracting Party shall not be prevented from taking measures relating to financial services for prudential reasons, including measures for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by an enterprise supplying financial services, or to ensure the integrity, and stability, of its financial system. Note: It is understood that the term "prudential reasons" includes the maintenance of the safety, integrity, or stability of individual financial institutions.
2. Without prejudice to paragraph 3, a Contracting Party shall not be prevented from taking non-discriminatory measures of general application in pursuit of monetary and exchange policies.
3. Where the measures taken by a Contracting Party pursuant to paragraphs 1 and 2 do not conform with this Agreement, they shall not be used as a means of avoiding the obligations of the Contracting Party under this Agreement.
4. With regard to disputes relating to financial services, Article 20 only applies to disputes regarding matters that affect the operation, management, maintenance, use, enjoyment and sale or other disposal of investments or the investments of investors of a Contracting Party already established, acquired or expanded in the Area of the other Contracting Party in accordance with its laws and regulations.
5. With regard to investment disputes with respect to investments or investment activities of a disputing investor relating to financial services, Article 21 only applies to investment disputes regarding investments already established, acquired or expanded in the Area of the disputing Party in accordance with its laws and regulations, as well as the investment activities associated with such investments.
6. The arbitration board established under Article 20 or the arbitral tribunal established under Article 21 for disputes arising under this Annex shall be composed entirely of arbitrators who have expertise or experience in financial services law or practice, which may include the laws and regulations of financial institutions.
7. In any dispute submitted to an arbitration board under Article 20 or an arbitral tribunal under Article 21, in which a Contracting Party invokes paragraph 1 or 2 of this Annex as a defence, the arbitration board or arbitral tribunal shall require the competent financial authorities of both Contracting Parties to make a determination on the issue of whether the measure by the Contracting Party which is a cause of the dispute is included in the measures referred to in such paragraph. This determination shall be binding on the arbitration board or arbitral tribunal and shall be issued within the term of ninety (90) days since the receipt of the requirement from the arbitration board or arbitral tribunal. In the case where the competent financial authorities fail to make the determination within ninety (90) days, the issue shall be resolved by the arbitration board or arbitral tribunal.
Note: For the purposes of this paragraph, the term "competent financial authorities" means:
(i) With respect to Japan, the Commissioner of the Financial Services Agency or his or her authorized representatives, who shall consider the issue in consultation with the Minister for Foreign Affairs or his or her authorized representatives; and
(ii) With respect to the Oriental Republic of Uruguay, the Minister of Economy and Finance or his or her authorized representatives and the President of the Central Bank of Uruguay or his or her authorized representatives.
8. The term "financial services" shall have the same meaning as in subparagraph 5(a) of the Annex on Financial Services of the General Agreement on Trade in Services in Annex 1B to the WTO Agreement.