Recommendations by the Government of Japan to the U.S. Government Regarding Regulatory Reform and Competition Policy

Embassy of Japan

November 1, 2007

At the Japan-U.S. Trade Forum held on October 18, Mr. Yoichi Otabe, Director General, Economic Affairs Bureau, Japanese Ministry of Foreign Affairs, and Ms. Wendy Cutler, Assistant U.S. Trade Representative, exchanged recommendations that address regulations and measures that respective governments consider to be in need of improvement by the other partner. Japan and the United States will discuss the recommendations at the meetings established under the Japan-U.S. Regulatory Reform and Competition Policy Initiative.

In the seventh-year dialogue of the Initiative, Japan and the United States seek to go further in our joint endeavor. Specific items of Japan’s recommendation can be broadly classified into the following three categories:

• 1) Recommendations calling for the abolishment or improvement of regulations or measures that are inconsistent with the principle of free trade or impending fair competition;

• 2) Recommendations urging that reinforced regulations in areas such as logistics and consular affairs not unduly impede smooth trade as well as movement of people between the two countries; or

• 3) Recommendations calling for the improvement of State-based regulations or regulations inconsistent with international standards, which are creating burdens on Japanese companies operating in the United States.

In course of the dialogue, the Government of Japan will keep urging the U.S. Government to improve its policy and further promote regulatory reform and competition policy by sufficiently reflecting these recommendations.

Our bilateral exercise last year (2006/2007) yielded positive developments such as:

• 1) Signing of the U.S.-Japan Mutual Recognition Agreement for Telecommunications Equipment.

• 2) Introduction of bills in the Congress for harmonization of patent rules, as well as the United States’ reaffirmed commitment to the pursuit and participation in the discussions related to “first-to-file” approach.

On the other hand, some issues such as the one related to revalidation of visas within the United States remain unresolved, and they affect many Japanese companies operating in the United States. Japan will continue to press the United States for solutions to these issues that are of importance to Japan.

The entire document of the recommendations is available at:

http://www.mofa.go.jp/region/n-america/us/economy/report0710.pdf

The summary of the recommendations is available at:

http://www.mofa.go.jp/region/n-america/us/economy/report0710.html

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[Related links]

Sixth Report to the Leaders on the U.S.-Japan Regulatory Reform and Competition Policy Initiative ( June 06, 2007 )

http://www.mofa.go.jp/region/n-america/us/report0706.pdf

Recommendations by the Government of Japan to the U.S. Government Regarding Regulatory Reform and Competition Policy Initiative for the Sixth-Year Dialogue (December 5, 2006)

http://www.mofa.go.jp/region/n-america/us/report0612.pdf

Japan-U.S. Economic Relations

http://www.mofa.go.jp/region/n-america/us/economy/index.html