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Click here for the Trade Agreement

THE U.S.-JAPAN ENHANCED INITIATIVE ON

DEREGULATION AND COMPETITION POLICY

What is this Initiative and what does it do?

Who benefits from this Initiative?

How can this Initiative help my company?

Can the U.S. Government help me if I have a problem?

How can I get more information?

What is this Initiative and what does it do?

The U.S.-Japan Enhanced Initiative on Deregulation and Competition Policy, commonly known as the Enhanced Initiative, set up a process for U.S. and Japanese officials to address the reform of laws, administrative guidance and regulations that serve as barriers to foreign goods and services.

President Clinton and former Prime Minister Hashimoto announced the Enhanced Initiative in June, 1997. It has no expiration date. The Initiative is an ongoing process.

In response to requests by the U.S. Government under the Enhanced Initiative, a significant number of Japan's regulatory barriers have been removed. Expert-level groups examine five sectors of the Japanese economy: telecommunications, housing, medical devices and pharmaceuticals, financial services and energy. A structural group covers issues related to distribution, competition policy, legal services, transparency and other government practices. A group of high-level officials has met periodically to review progress and resolve disagreements.

Who benefits from this Initiative?

Any American company exporting goods or services to Japan in the sectors covered by the Enhanced Initiative can benefit from the deregulation process that has occurred. Many U.S. companies have already found it easier to enter and compete in the Japanese marketplace as a result of the Initiative.

How can this Initiative help my company?

During the first year of the Enhanced Initiative (1997-98), Japan agreed to undertake a series of deregulation measures, including:

lowering the rates that U.S. carriers must pay to connect to Japan's telecommunications network;

abolishing certain restrictions on the construction of three-story buildings in urban residential areas;

shortening the approval period for new drugs entering Japan; and

abolishing Japan's Large-Scale Retail Store Law.

The results of the first year of the Enhanced Initiative were set out in May 1998 in the First Joint Status Report on the Enhanced Initiative on Deregulation and Competition Policy.

In October 1998, the United States presented the Japanese Government with a Submission Regarding Deregulation, Competition Policy, Transparency and Other Government Practices in Japan. This comprehensive submission contained 270 proposals aimed at encouraging Japan to continue to deregulate and open its markets.

A Second Joint Status Report on the Enhanced Initiative on Deregulation and Competition Policy contains a number of new, significant deregulation steps being taken under the Enhanced Initiative. This report was announced by President Clinton and Japanese Prime Minister Obuchi at their May 3,1999, summit in Washington. The two leaders also announced that the Enhanced Initiative process would continue into a third year.

The deregulation measures described in the Second Report included:

opening up cable TV to one hundred percent foreign investment;

accelerating to May 1, 1999, the implementation of performance-based standards for three-story, multi-family wood housing in urban residential areas;

allowing the use of foreign clinical data in the health insurance reimbursement process for medical devices;

easing the registration process for securities companies;

shifting from a permit and approval system to a notification system for the construction or upgrading of all power-generating facilities;

setting out in published regulations all the requirements and procedures that local governments and retail store operators will be required to follow in establishing or expanding large-scale retail stores; and

establishing public comment procedures that require advance notice of proposed regulations and an opportunity for the public to comment on them.

In October, 1999, the United States presented to Japan a new submission (no longer available) regarding deregulation, competition policy, transparency and other government practices in Japan.

_________

If your company is interested in having the U.S. Government consider a deregulation proposal for submission to the Japanese Government in the Enhanced Initiative process, you should contact the following U.S. Government Agencies for assistance:

The U.S. Department of Commerce's Office of Japan Trade Policy chairs the Initiative's Working Group responsible for the medical device and pharmaceutical sectors.

The U.S. Department of Commerce's Office of the General Counsel leads the discussions on legal services, transparency and other government practices.

The Office of the United States Trade Representative directs the Working Groups responsible for the energy, housing, and telecommunications sectors.

The U.S. Department of the Treasury conducts the Financial Services Working Group;

The Office of the United States Trade Representative, the U.S. Department of Justice, the U.S. Department of State and the U.S. Department of Commerce's Office of the General Counsel all co-chair the Structural Issues Working Group.

The Office of the U.S. Trade Representative and the U.S. Department of Justice co-chair the Deregulation and Competition Policy Working Group.

Can the U.S. Government help me if I have a problem?

Yes. If you believe that your company has been harmed by Japan's failure to implement measures agreed to under the Enhanced Initiative, contact the Trade Agreements Negotiation and Compliance at the U.S. Department of Commerce. This office can provide you with information and assistance to help you resolve problems that may have arisen in the sectors covered by the Initiative.

Furthermore, this Initiative is routinely monitored, and officials from both countries hold regular consultations to review its progress. The U.S. Government can make official inquiries at these meetings and through other means about specific problems encountered by U.S. companies.

How can I get more information?

The complete text of the Joint Statement on the U.S.-Japan Enhanced Initiative on Deregulation and Competition Policy is available from the Office of Trade Agreements Negotiations and Compliance's web site.

If you have questions about the Enhanced Initiative or how to use it, you can e-mail the Office of Trade Agreements Negotiations and Compliance (TANC) which will forward your message to the Commerce Department's Designated Monitoring Officer for this Agreement. You can also contact the Designated Monitoring Officer at the following address:

Designated Monitoring Officer -

Enhanced Initiative

Office of East Asia and APEC

U.S. Department of Commerce

14th Street & Constitution Avenue, N.W.

Washington, D.C. 20230

Tel: (202) 482-1821

Fax: (202) 482-0469

The Designated Monitoring Officer can also provide you with useful trade leads and contacts.

Business counseling questions can also be directed to the U.S. Department of Commerce's Trade Information Center at 1-800-USA-TRADE.

You can obtain additional information on the Enhanced Initiative and on trade with Japan by visiting the following Internet sites:

The U.S. Commercial Service, American Embassy, Tokyo, Japan

The American Embassy in Tokyo helps U.S. companies enter the Japanese market, and expand their sales there. Its web site contains information on the Enhanced Initiative and the Joint Status Reports on Japanese deregulation, both in English and in Japanese.

Office of the United States Trade Representative

The Office of the U.S. Trade Representative chairs the high-level review mechanism established under the Enhanced Initiative. Its web site contains information on the Initiative and the Joint Status Reports on Japanese deregulation.


TANC offers these agreements electronically as a public service for general reference. Every effort has been made to ensure that the text presented is complete and accurate. However, copies needed for legal purposes should be obtained from official archives maintained by the appropriate agency.