WASHINGTON - U.S. Trade
Representative Rob Portman today commended the economic reforms
Japan is taking
to open markets to
U.S. exporters
and to help promote growth in the Japanese economy. Detailed in this year’s annual report to
President Bush and Prime Minister Koizumi under the U.S.-Japan Regulatory Reform
and Competition Policy Initiative, the reforms include measures to expand market
access in the mobile wireless sector, facilitate trade in fruits and vegetables,
intensify bilateral cooperation on intellectual property rights protection and
enforcement, and speed the delivery of innovative medical devices and drugs to
the public.
“This year’s report shows we continue to make
important progress in our work with
Japan to cut
away the web of regulations that have hampered the ability of
U.S. companies
to do business in key sectors in the Japanese market. These reforms have helped
Japan turn the
corner towards growth and, if continued, will contribute to economic expansion
in the future,” Portman said.
“Nevertheless, a number
of bilateral trade problems persist, including
Japan’s
continuing ban on the import of
U.S. beef.
Japan’s
steps forward this week towards reopening its beef market are important
progress. I strongly urge the
Japanese Government to work expeditiously so
U.S. beef can
again be exported to
Japan,” Portman
added.
The Regulatory Reform Report places a special focus on the reform of
Japan Post, which will begin to privatize in 2007. The Report specifies several important
steps designed to hold the newly established postal entities to the same
regulatory and other standards as all private sector players in the banking,
insurance, and express delivery industries.
Japan
will also consider whether a level playing field exists before any new postal
financial products are allowed into the market. Portman said, “I strongly urge and am
counting on
Japan to
establish a truly level playing field between the new Japan Post entities and
private-sector companies before approving any new products. Ensuring transparency for all parties
will also be an essential element in this regard.”
In addition, the Report places a special focus on regulatory and
market access issues related to medical devices and pharmaceuticals. This is of particular importance given
Japan will be making key decisions on reimbursement
pricing in the coming months.
Portman said, “I urge the Japanese Government to ensure medical device
and drug prices are established in a manner that is transparent, predictable,
and fair, and rewards innovation.
This in turn will allow the Japanese people to enjoy the benefits of the
best and most innovative products available.”
Background
The 87-page Report
released today is the “Fourth Report to the Leaders” under the Regulatory Reform
Initiative. It includes reform measures that will
yield concrete benefits for Japan’s consumers as well as
U.S. firms seeking to do business in the Japanese
market. Highlights of steps
Japan has taken or will take include:
·
Making substantial blocks of spectrum available primarily
for new wireless entrants, thereby creating opportunities not only for
telecommunications companies wanting to expand into the wireless business in
Japan, but also equipment suppliers to those companies;
·
Removing regulatory barriers impeding the import of
agricultural goods by streamlining plant quarantine procedures in ways that
facilitate trade for U.S. fruit and vegetable producers;
·
Intensifying cooperation with the
United
States to strengthen intellectual property rights
protection and enforcement in Asia and around the world;
·
Implementing measures to improve the performance of the
Pharmaceuticals and Medical Devices Agency to speed regulatory approvals of
advanced medical devices and drugs, and recognizing the value of innovation in
medical device and drug pricing;
·
Removing regulatory impediments to e-commerce,
strengthening copyright protection, cooperating closely with the private sector
to combat spam, improving government network security in an open manner,
ensuring effective and transparent implementation of
Japan's new Privacy Law, and improving foreign firms’
access to bidding on government IT systems;
·
Reducing landing fees at
Narita International Airport, which will lower the cost of doing business in
Japan for U.S. airlines and express delivery
companies;
·
Significantly strengthening the Japan Fair Trade
Commission’s enforcement capabilities through recent amendments to the
Antimonopoly Act that have increased penalties on companies engaging in
bid-rigging and introduced a leniency program to combat
cartels;
·
Passing legislation to strengthen
Japan’s Public Comment Procedure, thereby increasing
transparency in the development and implementation of regulations;
and
·
Unveiling a new two-year “Program for Further Financial
Reform,” designed to promote financial system vitality by enhancing user
protection and convenience while strengthening the ability of financial
institutions to offer a wider range of services.
President Bush and Prime
Minister Koizumi launched the Regulatory Reform Initiative in 2001 as an
important component of the U.S.-Japan Economic Partnership for Growth. Each year, the two Governments exchange
reform recommendations in the fall under this Initiative. These recommendations
serve as a basis for annual reports to the President and Prime Minister,
specifying reform measures to be taken by each Government. USTR is the lead
agency for the U.S. Government for this Initiative while the Ministry of Foreign
Affairs takes the lead for the Japanese Government.
For more information,
please see the fact sheets summarizing the Fourth Report to the Leaders
and the full text of the report
at ustr.gov.
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