The import promotion policies have been taken primarily as a means of placating its trading partners, particularly the United States, over long-standing complaints regarding low levels of importing. While the policies may please American trade officials and business leaders, they have received some criticism from the General Agreement on Tariffs and Trade’s (GATT’s) Trade Policy Review. I consider this criticism in my analysis and conclude that it is based on a mistaken interpretation of Japan’s import subsidy program. However, even with more accurate information and better models designed to illustrate Japan’s particular policies, I find that the theoretical economic effects of Japan’s import subsidies vary depending upon the particular model used. Many of the subsidies serve to lower the fixed cost of entry into the Japan market. Others are designed to reward firms that increase their purchases of imported products. The latter policy type has sparked the GATT’s criticism and is the focus of my theoretical analysis