Secretary's Speech

U.S. Commerce Secretary Carlos M. Gutierrez American Chamber of Commerce in Japan
Tokyo, Japan

Thank you for that kind introduction. And I want to thank all of you for being here this morning.

Before I begin, let me congratulate Japan on beating Cuba and winning the World Baseball Classic last week. It was an impressive victory.

On the subject of good news, I also want to thank the ACCJ for your contributions to America's growing economy.

• Our GDP per capita is among the highest in the world
• Nearly 5 million jobs have been created since August 2003
• Our GDP growth last year was 3.5 percent--higher than Canada (2.9%), Italy (0.3%), Germany (0.9%) and France (1.5%)
• Productivity is strong
• Inflation remains in check. And
• Real after-tax income per person has risen over 8 percent since January 2001

The United States and Japan have built the two largest economies in the world.

As such, our nations have a responsibility to lead the world toward greater prosperity, peace and stability.

Japan has traditionally been the engine of economic growth in Asia. But its recent economic problems have reduced its role.

To restore its economic vitality, Japan has been making some hard economic choices.

Its fourth quarter GDP growth was impressive, and Japan has now seen three consecutive years of economic growth.

However, it still faces a number of structural challenges.

It's going to have to be persistent in tackling them to fully regain forward momentum and be a leader in a region that's undergoing dramatic economic changes.

Japan is our long-time friend and ally. We are grateful for their decision to help Iraq’s reconstruction and their continuing support in the rebuilding of Afghanistan.

Prime Minister Koizumi has also directed his government to be helpful in reaching an ambitious outcome in the important Doha Round of trade negotiations.

President Bush is committed to expanding free and fair trade. We know that open markets spread freedom and create prosperity for U.S. companies and workers and our trading partners.

Japan and the United States have enjoyed a long and fruitful trading relationship. Japan is our fourth largest trading partner and our third largest export market.

I want to thank the ACCJ for your important role in promoting commerce between our countries.

As you know, however, we still have a way to go before we reach our full potential as trading partners.

I understand that you are putting together a White Paper on the business environment here in Japan. I look forward to your report.

In my meetings with government leaders yesterday, we discussed a number of market-opening issues.

Among these:

• Opening Japan's market to U.S. beef
• Pricing for innovative U.S. pharmaceuticals and medical devices, as well as a speedier approval process for these products
• Improving the investment climate; and
• Opening public works projects to U.S. design and construction firms

Minister Nikai and I announced an important partnership to protect intellectual property rights.

Intellectual piracy is a huge global issue. It affects both American and Japanese companies and workers.

Safeguarding the hard-won patent and trademark protections of innovative and creative people is one of my highest priorities.

By enhancing bilateral cooperation on IPR protection and enforcement, Minister Nikai and I believe we can better address IPR concerns to protect our assets.

We're pleased to work with Japan on this important issue.

And I encourage U.S. and Japanese industries to work closely with our governments to tackle this problem.

Our two nations seek an Asia in which the power of democracy and democratic values are free to peacefully transform the region.

We are proud to be partners with Japan toward this great goal.

Before I open the floor to questions, I have a couple of announcements.

First, these days at home, I see daily reminders of the ties between our countries. Across the street from my office in Washington, the cherry trees that were a gift from Japan to the American people were beginning to bloom. They are attracting people from across our country and around the world. Many of the visitors are from Japan.

This summer the Commerce Department is launching a multi-million dollar campaign in Japan to encourage more of our Japanese friends to visit the United States.

We hope they come for the full menu of cultural and entertainment attractions our country offers. This is only the second time we're initiating such a major tourism promotion campaign. Last year, we welcomed nearly 4 million Japanese visitors. In 2006, we hope to welcome millions more.

For my second announcement, I'd like to ask Bob Grondine to join me.

It's my privilege today to present the American Chamber of Commerce in Japan with this certificate of appreciation.

The certificate commemorates the ACCJ's more than 50 years of service in promoting open and fair trade between the United States and Japan, and its strong partnership with the Commerce Department's U.S. Commercial Service.

Bill, on behalf of the Commerce Department and the nation, thank you.

Now, I'd be happy to hear your comments or take questions….