[Federal Register Volume 59, Number 29 (Friday, February 11, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3217]


[[Page Unknown]]

[Federal Register: February 11, 1994]


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SMALL BUSINESS ADMINISTRATION
 

Termination of Sanctions With Respect of Japan Pursuant to Title 
VII of the Omnibus Trade and Competitiveness Act of 1988

AGENCY: Office of the United States Trade Representative.

ACTION: Termination of sanctions scheduled to be imposed on Japan 
pursuant to Title VII of the Omnibus Trade and Competitive Act of 1988.

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SUMMARY: On January 19, 1994, the United States Trade Representative 
announced the termination of sanctions, scheduled to go into effect on 
Japanese goods and services on January 20, 1994, under Title VII of the 
Omnibus Trade and Competitive Act of 1988, on the basis of an 
announcement by the Government of Japan of an action plan to reform its 
public sector construction market.

FOR FURTHER INFORMATION CONTACT: Wendy Silberman, Office of Japan and 
China Affairs (202-395-3900), or Laura B. Sherman, Office of the 
General Counsel (202-395-3150), Office of the United States Trade 
Representative, 600 Seventeenth Street, NW, Washington, DC 20506.

SUPPLEMENTARY INFORMATION: On June 30, 1993, the Administration 
formally identified Japan under Title VII of the Omnibus Trade and 
Competitiveness Act of 1988 (19 U.S.C. 2515, as amended) as a country 
that maintains, in government procurement of construction, 
architectural and engineering services, a significant and persistent 
pattern or practice of discrimination against U.S. products or services 
that results in identifiable harm to U.S. businesses. At that time, on 
behalf of the President, the U.S. Trade Representative (USTR) announced 
the postponement of imposition of Title VII sanctions until November 1, 
1993 on the grounds that the Government of Japan had agreed to 
negotiate based on a U.S. proposal to significantly revise the Major 
Projects Arrangement and to address the identified discriminatory 
practices.
    Implementation of sanctions was further postponed until January 20, 
1994, after the Government of Japan announced on October 26, 1993 an 
outline of an action plan to reform its public sector construction 
market, which would address the discrimination identified by the United 
States. On January 18, 1994, the Government of Japan published an 
action plan to reform its public sector construction market. The plan 
and an accompanying exchange of letters between the United States and 
Japan address all the major U.S. concerns in the Japanese public works 
sector. The USTR concluded that implementation of the plan will 
eliminate the discrimination identified under Title VII. Based on a 
delegation of authority from the President, the USTR terminated 
sanctions on January 19, 1994. A copy of the USTR's determination is 
attached.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.

Determination Under Title VII of the Omnibus Trade and Competitiveness 
Act

    On June 30, 1993, the United States formally identified Japan 
under Title VII of the Omnibus Trade and Competitiveness Act of 1988 
(19 U.S.C. 2515, as amended) as a country that maintains, in 
government procurement of construction, architectural and 
engineering services, a significant and persistent pattern or 
practice of discrimination against U.S. products or services that 
results in identifiable harm to U.S. businesses. At that time, on 
behalf of the President, I announced the postponement of imposition 
of Title VII sanctions until November 1, 1993 on the grounds that 
the Government of Japan had agreed to negotiate based on a U.S. 
proposal to significantly revise the Major Projects Arrangement and 
to address the identified discriminatory practices.
    Implementation of sanctions was further postponed until January 
20, 1994, after the Government of Japan announced on October 26, 
1993 an outline of an action plan to reform its public sector 
construction market, which would address the discrimination 
identified by the United States. On January 18, 1994, the Government 
of Japan published a detailed action plan to reform its public 
sector construction market. The plan and an accompanying exchange of 
letters between the United States and Japan represent a significant 
change in the Japanese Government procurement and regulatory 
practices in the procurement of construction, design and engineering 
services and address all the major U.S. concerns in the Japanese 
public works sector.
    Pursuant to the authority vested in me by the President of the 
United States by Presidential Determination No. 94-12 of January 16, 
1994, I determined that implementation of the Japanese action plan 
will eliminate the discrimination identified under Title VII and 
terminated sanctions effective January 19, 1994.

    Dated: January 28, 1994.
Michael Kantor,
United States Trade Representative.
[FR Doc. 94-3217 Filed 2-10-94; 8:45 am]
BILLING CODE 3190-01-M