5.
Sector: Arms and Explosives Industry
Sub-Sector: Arms Industry, Explosives Manufacturing Industry
Industry Classification:
Type of Reservation: National Treatment (Article 85) Prohibition of Performance Requirements (Article 89)
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 85) Prohibition of Performance Requirements (Article 89)
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 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirements (Article 89)
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 85) Prohibition of Performance Requirements (Article 89)
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 52-8, 52-13, 52-30 and 52-32
9.
Sector: Land Transaction
Sub-Sector:
Industry Classification:
Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86)
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
10.
Sector: Public Law Enforcement and Correctional Services and Social Services
Sub-Sector:
Industry Classification:
Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirements (Article 89)
Description: Japan reserves the right to adopt or maintain any measure relating to investment in public law enforcement and correctional services, and in social services such as income security or insurance, social security or insurance, social welfare, primary and secondary education, public training, health and child care.
Existing Measures:
Annex 10 referred to in Chapter 8. Expropriation
The Parties confirm their shared understanding on paragraph 1 of Article 92 as follows:
Any measure tantamount to expropriation or nationalisation is an action or a series of actions by a Party that has an effect equivalent to direct expropriation without formal transfer of title or outright seizure (hereinafter referred to as "indirect expropriation"). The determination of whether an action or a series of actions by a 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 action, although the fact that such action has an adverse effect on the economic value of an investment, standing alone, does not establish that an indirect expropriation has occurred;
(b) the extent to which the government action interferes with distinct, reasonable expectations arising out of investment;
(c) the character of the government action, including whether such action is non-discriminatory; and
(d) the objectives of the government action, including whether such action is taken for legitimate public objectives such as protecting the public welfare, safety and health, and protecting and preserving the environment.