[Congressional Record Volume 144, Number 81 (Friday, June 19, 1998)]
[Extensions of Remarks]
[Pages E1175-E1176]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      JAPAN; IT'S TIME FOR REFORM

                                 ______
                                 

                        HON. WILLIAM O. LIPINSKI

                              of illinois

                    in the house of representatives

                         Friday, June 19, 1998

  Mr. LIPINSKI. Mr. Speaker, Japan's economy is in recession. As an 
editorial in the Thursday, June 18 edition of The Washington Post 
noted, ``the fact that once again U.S. pressure was needed to spur a 
commitment to reform is one more sad indication of the abdication of 
leadership in Japan.''
  While Japan has been a strong and loyal ally of the U.S. since the 
end of World War Ii, that does not mean friends cannot provide 
constructive criticism. I have some constructive criticism for Japan.
  As one of the world's largest economies, Japan has a responsibility 
to provide open and fair market access for imports. To this day, Japan 
continues to maintain restrictive barriers to its domestic market. 
While Japan has reduced tariff rates on imports to reasonable levels, 
non-tariff barriers continue to hinder imported goods and services from 
the U.S. and other parts of the world.
  From 1996 to 1997, the U.S.-Japan trade deficit increased from $47.6 
billion to $55.7 billion. Our trade deficit with Japan is the largest 
out of any other nation in the world, and it points to the systemic 
problems with Japan's market.
  Now is the time for Japan to show real leadership to the 
international community by initiating wide-spread economic reforms 
specifically targeted to rescinding excessive and outdated government 
regulations. A U.S. Trade Representative report stated, ``[Japan's] 
unnecessary regulations restrain economic growth, raise the cost of 
doing business in Japan, lower the standard of living for Japanese 
consumers, and impede imports.'' Japanese economists estimate that 40 
percent of all economic activity in Japan is regulated by the 
government. The regulations included burdensome testing and 
certification requirements, outdated price control measures, and 
unnecessary and archaic standards.
  While I understand that most of these regulations were implemented 
when Japan was still a developing nation when it was necessary to 
protect certain infant industries, they are no longer needed and, in 
fact, retards Japan's economic growth. A nation with a mature economy 
such as Japan's must jettison those outdated regulations in order to 
expand the economy. Japan's reluctance to do so has clearly caused its 
current recession. By placing archaic and unnecessary restrictions to 
imports, Japan has only wound up hurting itself.
  The solution to Japan's economic problems, Mr. Speaker, is quite 
simple. The Administration must work with Congress to put more pressure 
on Japan to provide open and fair markets, and Japan must take the 
necessary steps to fully honor its trade agreements with the U.S. Only 
by implementing this and other reform measures can the Japanese economy 
recover from its current recession.

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