New WTO thresholds announced for FY2026-FY2027

The Ministry of Finance and Ministry of Internal Affairs and Communications announced in a public notice in the Kanpo Government Gazette, the new WTO thresholds for the FY2026 and FY2027.

Thresholds are used to determine whether a public contract needs to be conducted under international World Trade Organization rules and also have an impact on business opportunities open to European business under the EU-Japan EPA.

The new thresholds reflect the inflationary trend of the Japanese yen of the past year and the lower exchanges rates vis-a-vis other major currencies.

Based upon the official exchange rate for the Euro currently used by the Japanese government (€1,- = ¥166,-), the threshold for central government contracts will be close to €120.000,- for goods and services contracts. At the sub-central level, this will be double the amount at closed to €241.000,-

Under the previous thresholds, central government contracts for goods or services were close to €110.000,-. The new thresholds could thus mean that less government contracts will be offered to the international market.

The new thresholds will come into force from April 1, 2026, the start of the new-fiscal year.

Specific to the EPA, thresholds used for railways procurement are not yet announced and remain at ¥72m.