Administrative Reform Agreement

Greater transparency of laws, regulations and administrative measures can play an important role in reducing and avoiding trade and investment disputes and helping to create and maintain a more secure and predictable business environment. The agreement also provides for the Japanese government to create specialized certified garages and specially designated garages in order to create new opportunities and competition in the automotive repair sector in Japan. The Japanese government should implement these measures as required by the agreement and speed up the implementation schedule as much as possible. In announcing the U.S. bill, U.S. Trade Representative Kantor said, ”We have prepared a background brief that addresses a number of issues related to deregulation, administrative reform and competition policy. This submission complements our efforts on sectoral trade issues and is consistent with the Government`s trade policy towards Japan as set out in the Framework. Ambassador Kantor continued: ”Significant deregulation of the Japanese economy is crucial for better market access. However, to be meaningful, deregulation must be accompanied by a firm commitment to greater transparency in administrative procedures and greater enforcement of competition policy. Significant deregulation will also ensure that Japanese consumers and producers benefit from increased competition, lower prices, better choice and better quality goods and services. The U.S.-Japan Insurance Agreement negotiated under the Framework Agreement calls on the Japanese government to take a wide range of deregulation and competition policy measures with respect to the insurance sector, including measures related to the distribution and purchase of insurance within keiretsu clusters, the deregulation of the ”third sector” and various transparency-related measures. In the short term, the U.S. government will focus on the effective implementation of this agreement.

Implement the obligation under the Deregulation Agenda to ensure that the rules are not replaced by administrative guidelines that restrict competition by establishing, through the Cabinet Secretariat or other appropriate body, a management mechanism for coordination between government agencies and the JFTC on proposed administrative guidelines and a procedure to assess whether agencies Governments have such an ex ante coordination mechanism in place. In the area of financial services, the U.S. government`s deregulation priorities are set out in the U.S.-Japan Financial Services Agreement negotiated under the Framework Agreement. In the near future, the U.S. government will focus on the effective implementation of this agreement. The U.S.-Japan Auto Agreement, negotiated under the auspices of the Framework Agreement, represents an important commitment by the Japanese government to deregulate this important sector. The Government of the United States appreciates and welcomes these commitments made by the Government of Japan. The auto deal states that the Japanese government will conduct a review of parts replacement processes as part of the so-called ”critical parts list.” This verification shall be carried out with the aim of removing from the list all replacement parts and operations which are not necessary from the point of view of safety and environmental protection. The deregulation of the critical parts list is crucial to further expand options for Japanese consumers and opportunities for foreign parts suppliers compared to the Japanese auto parts replacement market. The Government of the United States looks forward to a constructive dialogue with the Government of Japan on deregulation, administrative reform and competition policy, as well as on the revision of the plan in the context of ongoing consultations in the Working Group on Deregulation and Competition Policy and in other forums.

This bill is intended to be an extensive list of proposals by the United States Government, based on the original list submitted to the Government of Japan on November 15, 1994, and the comments on the Japanese Deregulation Action Plan of April 21, 1995. This bill is not intended to be an exhaustive list of regulatory, administrative reform and competition policy issues in Japan that are of concern or interest to the United States government. Since deregulation and liberalization of economic and administrative systems are ongoing processes, the United States may from time to time make additional proposals and requests to the Government of Japan. In view of recent reforms, including the reform of the Electricity Supply Industry Act (Denki Jigyoho), in order to reduce energy costs and pass on the benefits of yen appreciation to Japanese consumers and businesses, the Government of Japan should present the following: The Government of the United States of America is pleased to inform the Government of Japan within the framework of the Working Group on Deregulation and competition policy under the Joint Declaration. on the UNITED States-Japan Framework for a New Economic Partnership (”Framework”), this proposal addresses specific issues of deregulation, administrative reform and competition policy in Japan. The Government of Japan should strengthen the existing mechanisms for reviewing and correcting administrative measures taken by State and quasi-governmental bodies with regard to their availability, timeliness and effectiveness. In addition, the Government of Japan should consider, as appropriate, the establishment of new dispute settlement mechanisms between private parties and public or quasi-governmental bodies. To this end, the Japanese government: The U.S.

government believes that the lack of transparency in administrative procedures hinders market access and contributes to an environment in which foreign companies are discriminated against. The U.S. government believes that increased transparency and accountability in administrative procedures is an essential element of effective deregulation. The bill contains a detailed statement on administrative reform, which calls on the Japanese government to take a wide range of measures related to the disclosure and storage of information. the formation and role of advisory committees and study groups; the role of industry associations; administrative rules and procedures; and the review of administrative measures. The U.S. government`s proposal includes recommendations on basic principles and the deregulation process, 12 specific sectors covering more than sixty-five subsectors or concerns, administrative reforms, and the enforcement of competition policy. The U.S. government expects to come forward with further proposals on these issues in the future to reflect the changing dynamics of deregulation in Japan.

The U.S. Government believes that the Japanese Government`s rigorous and vigorous enforcement of the Antimonopoly Act is an essential element in improving market access and ensuring the effectiveness of deregulation measures. .