[Federal Register Volume 59, Number 197 (Thursday, October 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25352]


[[Page Unknown]]

[Federal Register: October 13, 1994]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
 

Notice of Termination of Sanctions With Respect to 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 Competitiveness Act of 
1988.

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SUMMARY: On October 4, 1994, the United States Trade Representative 
determined that sanctions, scheduled to go into effect on Japanese 
goods and services on September 30, 1994, under Title VII of the 
Omnibus Trade and Competitiveness Act of 1988, should be terminated, 
effective September 30, 1994, as a result of an agreement between the 
United States and Japan relating to procurement of telecommunications 
and medical technology goods and services.

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 July 31, 1994, the Administration cited 
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 telecommunications and medical technology 
goods and services, a significant and persistent pattern or practice 
discrimination against U.S. products or services that results in 
identifiable harm to U.S. businesses. Title VII provides that if the 
identified practices are not satisfactorily addressed during a 60-day 
consultation period, then the President must formally identify the 
country and the statutory sanctions take effect on the following day.
    On October 1, 1994, the Governments of the United States and Japan 
reached an agreement relating to procurement of telecommunications and 
medical technology goods and services. The Japanese Government agreed 
to adopt improved procurement measures. These new measures and an 
accompanying exchange of letters between the United States and Japan 
address all the major U.S. concerns in the telecommunications and 
medical technology sectors. The United States Trade Representative 
(USTR) concluded that implementation of the improved measures and the 
accompanying exchange of letters will eliminate the discrimination 
identified under Title VII. Based on delegation of authority from the 
President, the USTR terminated sanctions effective September 30, 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 July 31, 1994, the United States 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 telecommunications and medical technology goods and 
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. Since that time, we have held 
intensive discussions with the Government of Japan to resolve the 
identified discriminatory practices.
    Sanctions were scheduled to go into effect on September 30, 
1994. On October 1, 1994, the United States reached an agreement 
with the Government of Japan relating to procurement of 
telecommunications and medical technology goods and services, which 
will address the discrimination identified by the United States. The 
procurement measures to be implemented by the Government of Japan 
and an accompanying exchange of letters between the United States 
and Japan represent a significant change in Japanese Government 
practices in the procurement of telecommunications and medical 
technology goods and services and address all the major U.S. 
concerns in these sectors.
    Pursuant to the authority vested in me by the President of the 
United States by Presidential Determination No. 94-52 of September 
29, 1994, I have determined that implementation of the agreement 
with Japan will eliminate the discrimination identified under Title 
VII and therefore terminated sanctions effective September 30, 1994.

    Dated: October 4, 1994.
Michael Kantor,
United States Trade Representative.
[FR Doc. 94-25352 Filed 10-12-94; 8:45 am]
BILLING CODE 3190-01-M