E N F O R C E M E N T   AND   C O M P L I A N C E

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What is this Agreement and what does it do?

Who benefits from this Agreement?

What opportunities have been created under this Agreement?

How can I get more information?

What is this Agreement and what does it do?

The U.S.-Japan Framework for a New Economic Partnership provided a structure for ongoing consultations and negotiations between the two governments which have produced a series of important bilateral trade and investment agreements. The Framework's goals were:

to address structural and sectoral issues in order to achieve a substantial increase in access and sales of competitive foreign goods and services to the Japanese market;

to increase foreign investment in Japan; and

to promote bilateral cooperation on global issues.

The Agreement is in the form of a joint statement by President Clinton and Japanese Prime Minister Miyazawa released on July 10, 1993 on the occasion of a visit by the President to Tokyo. While it has no expiration date, it is subject to periodic review by the two governments.

Who benefits from this Agreement?

A variety of American companies interested in exporting to Japan or investing there can benefit from the agreements that have been concluded pursuant to the Framework Agreement.

What opportunities have been created under this Agreement?

The Five Baskets

The Framework Agreement established an umbrella structure of five "issue baskets" in which the two governments negotiated agreements to address specific market access issues. Negotiations were mainly conducted at the working group level, with negotiations at the Under Secretary level held to address difficult issues. The following are the issues identified in these baskets and the relevant agreements that were concluded:

(1) Government Procurement - Agreements in this area have been aimed at a significant expansion of procurement by the Japanese government of competitive foreign goods and services. The following agreements were concluded. (Links will take you to a guide to the agreement and a text. Where no guide exists, the link will take you directly to the text.)

U.S.-Japan Medical Technology Procurement Arrangement [Guide]

U.S.-Japan Telecommunications Products and Services Agreement [Guide]

(2) Regulatory Reform and Competitiveness - Measures undertaken in this area have addressed the reform of laws, regulations and government guidance which impede market access for competitive foreign goods and services. The following agreements were concluded:

U.S.-Japan Measures Regarding Financial Services [Agreement text]

U.S.-Japan Insurance Agreements [Guide]

Issues related to government practices including deregulation, competition policy, transparency and distribution were taken up under this basket. From 1997 until 2001, they were addressed under the Enhanced Initiative.

(3) Other Major Sectors - The only sector specified in this basket was the automotive sector. The relevant agreement is:

U.S.-Japan Automotive Agreement

In October 2001, the U.S. and Japan established the Automotive Consultative Group (ACG) to meet annually (or on request) to discuss issues of concern to the automotive sector.

(4) Economic Harmonization - Issues affecting foreign direct investment have been addressed in this basket. The relevant agreement is:

U.S.-Japan Investment Arrangement

Three other issues have also been addressed in this basket. On one, intellectual property rights, an understanding was reached in January of 1994 between the Japanese Patent Office and the United States Patent and Trademark Office, and a subsequent understanding was reached in August, 1994. The other two issues have been access to technology, and long-term buyer-supplier relationships.

(5) Implementation of Existing Arrangements and Measures - In this basket, agreements and measures that predate the Framework Agreement have been monitored to ensure their full implementation.

Cooperation on Global Issues

In the Framework Agreement, Japan and the United States agreed to strengthen cooperation on the following global issues:



Development of Human Resources



How can I get more information?

Complete texts of the U.S.-Japan Framework Agreement and of a U.S.-Japan Agreement Clarifying the Framework Agreement are available on the Office of Trade Agreements Negotiations and Compliance's web site. The Clarifying Agreement, concluded on May 23,1994, takes note of negotiations of specific agreements that were under way at that time.

If you have questions about this Agreement, 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 the Agreement. You can also contact the Designated Monitoring Officer at the

following address:

Designated Monitoring Officer --

U.S.-Japan Framework Agreement

Office of East Asia and APEC

U.S. Department of Commerce

14th Street & Constitution Avenue, N.W.

Room 2320

Washington, D.C. 20230

Phone: (202) 482 - 1147

Fax: (202) 482 - 0469

You can obtain additional information by visiting the following web site in the International Trade Administration of the Department of Commerce:

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.