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USTR Schwab Welcomes Progress on Japan Reforms; Cites Need for Sustained Focus

 

 

WASHINGTON, DC – U.S.
Trade Representative Susan Schwab today welcomed new steps Japan is taking
on economic reform that will help further open markets, foster new business
opportunities, and stimulate competition, while urging continued focus on
regulatory reform in the year ahead.  These new measures are highlighted in
the Sixth Annual Report to the Leaders under the U.S.-Japan Regulatory Reform
and Competition Policy Initiative.


“We welcome Prime Minster Abe’s clear commitment to
promoting economic reform in Japan.  Regulatory reforms taken
in recent years have contributed significantly to Japan’s overall
economic growth,” said Amb. Schwab.  “We applaud the Prime Minister for
staying the course on creating new business opportunities, and urge further
opening of the Japanese economy in the year ahead.”  


This year’s Report reflects the broad scope of measures
that Japan has either taken in recent
months or will take in the near-term.  These include new steps to:


• Streamline import procedures for certain agricultural
and other products;


• Further open Japan to foreign investment;


• Increase transparency of regulatory and policy decision
making in sectors ranging from healthcare to information technology; and


• Strengthen protections against anti-competitive
acts. 


The Report also outlines new measures in response to
U.S. recommendations on the
importance of creating a level playing field between Japan Post and private
companies in the banking, insurance, and express delivery sectors. 


“Japan needs to ensure equal
conditions of competition in the markets where Japan Post competes with the
private sector,” Amb. Schwab said.  “As Japan readies
related reforms to implement this fall, a high degree of transparency must be
secured so market participants can judge whether this standard will be
met.”


This year’s Report also demonstrates a continuing
commitment by both governments to strengthen their cooperation in helping to
combat the problem of counterfeiting and piracy of intellectual property and to
promote regulatory and other transparency best practices in the Asia-Pacific
region.   


On an area of continuing concern to the
United States, Schwab added,
“Separately, I also expect Japan to move forward rapidly to fully reopen its
market to U.S. beef imports consistent with
international standards and science.” 


Background


This year’s 76-page Report to the Leaders was finalized on
the eve of the meeting of President George W. Bush and Prime Minister Shinzo Abe
at the G-8 Summit in Germany, and is the sixth annual
edition under the Regulatory Reform Initiative. 


Each year, the two Governments exchange reform
recommendations that are thoroughly discussed through working and high-level
meetings.  Based on these recommendations, the Governments prepare a joint
report on the results of the work under the Initiative.


Highlights of steps that have been taken or commitments
for future steps made by Japan include:


• Implementing plans to substantially speed introductions
of new drugs through measures such as more than doubling the number of drug
reviewers;


• Opening new investment opportunities by permitting
triangular mergers using foreign shares and monitoring the effectiveness of
related tax deferral conditions;


• Ensuring that Japan Post’s new financial entities must
meet the same obligations and standards as those of private financial
institutions when they sell new or altered financial products;


• Enacting legislation to prohibit recording of movies in
movie theaters while extending penalty provisions under Japan’s
Copyright Law to those who commit such acts;


• Adopting risk-based and streamlined policies for the
approval and importation of agricultural products;


• Streamlining the antenna certification process for
wireless LAN devices (e.g. Wi-Fi devices);


• Implementing reforms that increase competition and
transparency in bidding processes for government procurements of information
technology systems;


• Strengthening deterrence against Antimonopoly Act
violations, including by maximizing the effectiveness of a new leniency
program;


• Submitting legislation to the Diet in April 2007 to help
address the conflicts of interest that can arise through the reemployment of
retiring government officials;


• Streamlining import procedures for nutritional
supplements; and


• Amending the law to help ensure anti-takeover measures
do not harm the interests of shareholders.


For more information, please see the fact sheets
summarizing the Sixth Report to the Leaders and the full text of the report at
www.ustr.gov.