[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] ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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