*EPF504 04/19/2002
Text: Secretary Evans Says U.S. Wants Strong Relationship With Japan
(Commerce Secretary Evans April 19 remarks in Tokyo) (1860)

The Bush administration is committed to a "strong and healthy relationship with Japan," according to Secretary of Commerce Donald Evans.

In an April 19 speech in Tokyo, Evans said Japan has continued U.S. support in addressing its economic challenges.

Evans, who was speaking to the American Chamber of Commerce in Japan, noted that Japan accounts for "almost two-thirds of Asia's GDP" and is America's largest trading partner outside of the North America Free Trade Agreement.

The Commerce Secretary said he was eager to explore "new opportunities to expand our commercial ties."

According to Evans, America's economic success over time was attributable in part to innovation and entrepreneurship.

"I know that Japan also is working to encourage innovation and entrepreneurship," Evans told his audience.

Following is the text of Evans' speech, as prepared for delivery:

(begin text)

Remarks by U.S. Commerce Secretary Don Evans
to the American Chamber of Commerce in Japan
Tokyo, Japan, April 19, 2002

Thank you, Don [Kanak, President of the ACCJ], for that kind introduction. And thanks to the ACCJ Board of Governors for hosting this lunch. It's an honor to be the first Cabinet official of the Bush Administration to speak to the American Chamber of Commerce in Japan.

You and I have similar goals: We seek to promote commerce between the United States and Japan, and we are looking out for the interests of American companies.

We also share goals with our colleagues in Japan, and I am delighted that members of the Keidanren are here as well.

I am pleased these Japanese business leaders are here with us, because I believe we share a commitment to many goals that benefit businesses in both our countries.

When we foster entrepreneurship and innovation in the United States, and our colleagues here in Japan do the same, we are helping shape a new generation of business leaders whose work will raise the quality of life -- here in Japan, at home in America...in fact, throughout the world.

At the same time, we are helping create a new generation of potential business partners - partners whose collaboration will bring new and better jobs to the workers of both our countries, better products and services to the people of both our countries, and stronger ties of friendship between our countries.

The Bush Administration's commitment to a strong and healthy relationship with Japan is clear. This is my first stop on my first trip to Asia as Secretary of Commerce, and I am pleased to follow up on President Bush's visit to Tokyo in February.

Our two leaders have met four times now, and they plan to meet again in June. These frequent meetings underscore the importance of the U.S.-Japan relationship.

When President Bush was here, Prime Minister Koizumi made it clear he intends to take tough measures on structural reform.

I want to be equally clear that Japan has our continued support in addressing its economic challenges.

As you well know, Japan accounts for almost two-thirds of Asia's GDP and is our largest trading partner outside NAFTA. And I'm looking forward to exploring new opportunities to expand our commercial ties - not just on this trip, but throughout my tenure as Commerce Secretary.

Japan and the U.S. each have launched some incredible commercial successes. And because of that, I believe we owe it to ourselves - and the rest of the world - to do all we can to be engines of economic growth ... especially in today's sluggish global economy.

During my trip here, I believe we can put our heads together and come up with new and effective ways we can work together to achieve that goal.

A few months ago, I had an interesting question posed to me from a leader from a different part of the world. President Bush was hosting Russian President Vladimir Putin at his ranch in Crawford, Texas, and I was fortunate enough to join the two presidents for dinner one evening. After dinner we stepped outside, and President Putin turned to me and asked: "How could America accomplish so much in just 200 years?"

I'm sure there are a lot of ways to answer his question. Personally, I believe we owe much to freedom -- and to the competition it encourages ... and, to two fundamental values that underlie our free-market system: innovation and entrepreneurship.

I know that Japan also is working to encourage innovation and entrepreneurship. In fact, that will be a central point of discussion in my meeting later today with Minister Hiranuma.

We will talk about how these values are critical to success, and discuss how our two countries can work together to encourage them, and to nurture them. I also will explore with the Minister how we can further strengthen our commercial ties.

INNOVATION

Innovation is no stranger in Japan or the U.S. As we enter the 21st century, our two countries lead the world in developing and commercializing new ideas. Our workers and scientists are generating new products and making revolutionary discoveries every day.

Innovation not only brings us better products and ways of doing things; it also fuels economic growth and is a proven path to increased productivity. Even more important, it leads to higher standards of living - for the people of both our countries, and around the world.

Quality of life issues are equally important in the U.S. and Japan. In both of our countries, changing demographics are posing tremendous challenges.

In the U.S., we are grappling with the aging of the "Baby Boomers" and the strain that is putting on our retirement and health-care systems. There are similar issues here in Japan, which has one of the world's most rapidly aging populations.

To serve this population, Japan is looking to improve health-care quality while containing costs. And that will take innovation. Structural reform and deregulation will encourage the market to pursue that innovation - and save lives as well as yen.

ENTREPRENEURSHIP

Many nations invest heavily in science and technology and are also highly innovative. I believe that what sets America apart is our unique culture of entrepreneurship.

Our system rewards risk-taking and hard work. We celebrate our entrepreneurs as popular icons and civic leaders. This is because entrepreneurs create jobs, companies and prosperity, making our economy stronger and communities better.

Governments cannot generate entrepreneurship by themselves. It does not simply flow from having free markets. It cannot be manufactured through centralized planning or inspired through industrial policies.

Entrepreneurship demands public confidence and trust ... trust in a fair and open system, trust that other people will play by the rules, and confidence in the future.

Both of our countries recognize that our economic growth ultimately depends on the success of our respective small businesses.

I think we have a lot to learn from each other -- in terms of our educational systems, capital formation, and infrastructure (physical, legal, regulatory). And I look forward to continuing our exchange of ideas and experiences in these areas.

OUR POLICY AGENDA

At home, President Bush is leading on a policy agenda that encourages innovation and promotes entrepreneurship to help create jobs and grow our economy. This agenda has served us well, as we, too, faced -and are overcoming -- recession.

-- We passed the largest tax cut in a generation to encourage job creation and investment. Many economists credit this tax cut with moderating the recession.

-- The President signed into law the economic stimulus package to further drive growth, including a three-year acceleration of capital expense depreciation to spur investment. Just as the usage of information technologies is improving productivity, we'll need future investments to hasten recovery and ensure solid long-term growth;

-- We're investing heavily in research and development -- the President proposed $110 billion for R&D in 2003;

-- We passed a landmark education reform bill, the centerpiece of the President's campaign -- and we are committed to its successful implementation;

-- And the President will continue to push for personal retirement accounts for average Americans; and

-- We're seeking Trade Promotion Authority from Congress to expand our entrepreneurs' access to foreign markets and create new jobs in the United States.

I want to work with you to look for ways to promote American and Japanese innovation, entrepreneurship and expand our trade.

TRADE

On the trade front, this afternoon I am planning to see Minister Oogi of the Ministry of Land, Infrastructure and Transportation. The tourism industry in both the United States and Japan has been set back considerably, and I am hopeful we can partner together to help tackle this challenge. The U.S. already has run some advertising in Japan to promote tourism, and I hope that Minister Oogi and I can agree to launch efforts to promote tourism and cross-cultural exchanges between our two countries.

I don't need to tell you that trade is not a zero-sum game. Economists know that the interests of workers everywhere lie not with those who tear down trade talks, but with those who tear down trade barriers.

America and Japan stand to gain a great deal by extending wealth across the globe. But just as surely, there is a cost if we do not. Of the 6 billion people on this planet, nearly half subsist on less than $2 per day. This extreme poverty drives out hope, and from hopelessness, comes instability.

Trade not only creates wealth, it creates stability and the prospect of a brighter future. Trade compels governments to bring transparency and clarity to their economic decision-making, and combats the corruption that impedes progress, entrenches self-servers, and perpetuates poverty.

As our citizens know well, trade is inherently democratic. Economic freedom encourages political freedoms. New enterprises and access to capital lead to the creation of a merchant class. Middle classes demand greater political participation. This has been a pattern that we've witnessed in both of our countries, and these are trends that we have a responsibility to foster.

I know that we are up to the challenge. Our countries have a lot in common already, and our goals for the future are similar. We need to innovate and raise productivity. We need to encourage more entrepreneurs, to help our economies grow. We need to lower trade barriers:
- globally (by working together on the Doha Development Agenda),
- multilaterally (through APEC), and
- bilaterally (through our Economic Partnership and other efforts).

I would like to see us make an effort to ensure that our new, emerging sectors -- where we stand to see the most gain from our innovations and through our entrepreneurs -- are not stymied through new trade barriers.

This is a special challenge, and I am confident that we are up to it.

I am sorry that I arrived too late to see the cherry blossoms in Tokyo, which I understand are as beautiful as the ones in Washington. From the window in my office, I can see the cherry trees that circle the Washington Monument -- a daily reminder of the strong and unique relationship between our two countries. Domo arigato gozaimasu.

I would be happy to take your questions.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

Return to Public File Main Page

Return to Public Table of Contents