2nd Report of the Market Access Ombudsman Council (March 14, 1995)

6-(3) Deregulation of the restriction of the number of races open to foreign horses and horse owner registration of persons residing overseas by the Japan Racing Association

1. Complainant: Australia/New Zealand Chamber of Commerce

2. Ministry concerned: Ministry of Agriculture, Forestry and Fisheries

3. Complaint:

In accordance with the Horse Racing Law and the Japan Racing Association Law, the Japan Racing Association (JRA) holds horse races and registers horse owners and racehorses.

The JRA sets its basic and related policies for horse racing programs as part of its operations plan for the next fiscal year, drawn up around October each year. As of 1995, for foreign-bred horses, the ratio of races in which horses, which have never raced abroad (mixed races), may participate is set at 47%, and horses which have raced abroad may participate in six races (international races). Regarding expanding the number of races in which foreign-bred horses may participate, in response to demands by racing fans, to contribute to the improvement of domestically-bred horses, and because of increased internationalization, in November 1992 the JRA adopted and announced a plan to liberalize racing participations (to raise the ratio of mixed races to 55% and to hold 12 international races by 1999, the final year of the plan). The expansion each year has been made in accordance with on this plan.

As far as the issue of registration of horse owners is concerned, owners are subject to a strict adjudication process to ensure absolute fairness in horse races, and they are thereafter monitored for criminal activity and so forth. The JRA registers only persons residing in Japan as horse owners with the reason that the examination and monitoring of persons residing abroad is difficult. Horse owner registration of foreign nationals residing in Japan is handled in the same way as for Japanese citizens.

The complainant believes that such measures by the JRA place unfair and unnecessary restrictions on the importation of foreign-bred racehorses into Japan and on opportunities to race in Japan. The complainant is aware that the JRA has adopted a liberalization policy but believes that this has experienced setbacks in the study process, and that additional relaxation of regulations should be undertaken within an appropriate period.

4. Results of deliberation:

International contacts among sponsors from various countries are growing in the field of horse racing, and Japan is expected to take various measures in response, from the viewpoint of international harmonization of our society and economy.

The JRA should hold discussions with the complainant concerning racing restrictions on foreign-bred horses at an early date and should make efforts to gain the understanding of the complainant regarding internationalization measures.

Regarding registration of horse owners, the JRA should solicit opinions from various related foreign organizations, etc. including the complainant, study the systems in use in various countries, and consider at an early date a method of examining persons residing abroad equally appropriate to that used for persons residing in Japan. The JRA should discuss this matter with the complainant and endeavor to obtain the understanding of complainant.

From the viewpoint of taking measures to internationalize horse racing, the Ministry should encourage the JRA to hold talks with the complainant and to study the issue of horse owner registration of persons residing abroad in the immediate future.

Government decision (March 28, 1995)

6-(3) Horse owner registration for persons residing overseas by the Japan Racing Association (JRA)

JRA will be encouraged to review without delay the way how it can appropriately conduct the evaluation for registering persons residing overseas, as horse owners, as well as domestic residents, after it hears the opinions of various related foreign organizations etc. and studying the horse owner registration systems in various countries.

Follow-up (May 27,1996)

6-(3) Deregulation of the restriction of the number of races open to foreign horses and horse owner registration of persons residing overseas by the Japan Racing Association

On April 13, 1995, the government encouraged the JRA to make steady progress in implementing its plan to liberalize racing participation by foreign-bred horses, to study the registration of persons living abroad as horse owners at an early date, and to make efforts to gain the understanding of related foreign organizations, etc.

As a result, in July 1995, the chairman of the JRA outlined to the New Zealand Thoroughbred Producers' Association the contents of its plan to liberalize racing participation by foreign-bred horses adopted in 1992, and the Association indicated, through the complainant, that it would not raise this complaint again in FY1995. Views were exchanged and contacts have been maintained when Association representatives visited Japan in November and when the JRA chairman visited New Zealand in January this year of 1996.

Regarding horse owner registration, the JRA established a project team on April 20, 1995 and is currently studying how this matter is handled in other countries. Measures will be studied based on studies and analysis by the project team.

Further Follow-up (May 12, 1997)

6-(3) Deregulation of the restriction of the number of races open to foreign horses and horse owner registration of persons residing overseas by the Japan Racing Association

On April 13, 1995, the government urged the JRA to study the horse owner registration of persons residing abroad in the immediate future and to make efforts to obtain the understanding of related organizations abroad.

As a result, the JRA established a study group (project team) on April 20, 1995, charged with studying equally appropriate measures for examining persons residing abroad as those for persons residing in Japan. Until now, the project team has studied the horse owner registration systems of the principal horseracing countries (the U.S., France, the U.K., Australia, New Zealand). Based on the results of this study, and to ensure fairness in horse-racing, further research and study will be undertaken, on the premise that equally appropriate measures will be used for examining persons residing abroad as those for persons residing in Japan, and a conclusion will be reached during FY1997. Since 1995, the JRA has dispatched its directors and other members to Australia and New Zealand to describe its internationalization measures to breeder's organizations there. The latest such mission took place in March 1997.