STATE TRADING

QUESTION POSED BY THE EUROPEAN UNION
REGARDING the notification of JAPAN^[1]

The following communication, dated and received on 25 September 2024, is being circulated at the request of the delegation of the European Union.

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The European Union thanks Japan for its notification _G/STR/N/20/JPN and would like to request some additional information.

The tobacco production is monopolized by JT for promoting sound development of the tobacco industry under the provisions of the Tobacco Business Act. Although private traders can import leaf tobacco, this monopoly in effect renders all the importation of leaf tobacco for the manufacture of tobacco in Japan dependent upon subsequent purchase by JT.

The importation of leaf tobacco and manufactured tobacco has been liberalized since 1 April 1985. However, as a consequence of the continuing monopoly of manufacturing tobacco by the Japan Tobacco Inc. (JT), the importation of leaf tobacco for the manufacture of tobacco in Japan is in effect dependent upon the purchase by JT.

JT exports leaf tobacco on the basis of commercial consideration.

According to the information provided in the notification, JT has in fact a monopoly position on the tobacco market in Japan, and not only for the trading (import – export).

Question:

Could Japan please provide information on the average procurement and average domestic prices of tobacco for the period covered by the notification?

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