*EPF406 07/06/00
Text: Senate Finance Committee Letter on U.S.-Japan Trade Issues
(Senators urge continuation of deregulation initiative) (570)
Members of the Senate Finance Committee called for a resolution of two U.S.-Japan trade issues before the G-8 Economic Summit begins in Okinawa, Japan later this month.
In a June 29 letter to Ambassador Shunji Yanai of Japan, Senate Finance Committee Chairman William Roth (Republican of Delaware), Ranking Member Daniel Moynihan (Democrat of New York), and eight other committee members expressed concern over the Japanese Government's proposals to discontinue or modify the U.S.-Japan Enhanced Initiative on Deregulation and Competition Policy and the "lack of progress" by Japan's Ministry of Posts and Telecommunications in reducing telecommunications interconnection rates.
Following is the text of the letter:
(begin text)
His Excellency Shunji Yanai
Ambassador of Japan
2520 Massachusetts Avenue, N.W.
Washington, D,C, 20008
Dear Mr. Ambassador:
We are writing to express our great concern over reports that the Japanese Government is objecting to the continuation of the U.S.-Japan Enhanced Initiative on Deregulation and Competition Policy (Enhanced Initiative) and over the lack of progress by Japan's Ministry of Posts and Telecommunication in reducing excessive telecommunications interconnection rates. We believe that resolution of these two trade issues is critical to ensure a successful Okinawa G-8 Economic Summit in July.
The Enhanced Initiative was agreed to by both the U.S. and Japanese Governments at the Denver G-8 Summit on June 19, 1997. It has been helpful in reducing important trade, competition, and regulatory barriers with respect to leading U.S. products and services, including medicines, telecommunications services and medical devices. These successes have, in turn, significantly benefited Japanese consumers.
Despite this progress, however, much more remains to be accomplished. Regulatory and other barriers continue in each of the designated Enhanced Initiative sectors. With respect to telecommunications, for example, high interconnection rates remain one of the most serious barriers; although the Ministry of Posts and Telecommunications has made some minimal reductions, the rates remain excessive and hinder competition in the market. In the pharmaceuticals and medical devices sectors, delays in the approval of new products and non-market based price reimbursement systems continue to limit substantially the ability of Japanese consumers to access innovative now pharmaceuticals and medical devices.
We strongly agree with Ambassador Barshefsky that the Enhanced Initiative must continue; indeed, we fail to understand why the Japanese Government is suggesting its discontinuation at this time since the initiative has no expiration date. Further, proposed modifications to the Initiative -- such as the Japanese Government's suggestion that it be transformed from a commitment-based process to a mere monitoring process -- are wholly unacceptable, particularly when there remain many issues that have not yet been adequately addressed. Proposals to terminate or weaken this Initiative are counterproductive to the U.S.-Japan relationship and to any progress that we hope can be achieved in Okinawa.
Therefore, we strongly urge the Government of Japan to renew its support for the Enhanced Initiative, along with other key bilateral market access agreements. As well, we seek progress in Japan's commitment to reduce substantially interconnection rates, as a step towards fulfilling its commitments under the Initiative.
Respectfully,
William V. Roth, Jr.Daniel Patrick Moynihan
ChairmanRanking Member
Frank H. MurkowskiBob Graham
Don NicklesMax Baucus
Fred ThompsonRichard H. Bryan
Orrin G. HatchJohn Breaux
(end text)
(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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