    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book I)]
    [June 19, 1997]
    [Pages 768-770]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Joint Statement on the U.S.-Japan Enhanced Initiative on Deregulation
    and Competition Policy
    June 19, 1997

    I. Basic Principles

    A. In today's increasingly integrated world economy, it is becoming more
    important to address consumers' interests in expanded choices of
    products and services that are readily available at lower prices,
    through enhanced competition and improved market access opportunities.
    With a view to meeting consumers' interests and to improving market
    access for foreign companies and foreign goods and services, the
    President and the Prime Minister decided in April 1997 to strengthen the
    dialogue between and reinforce the efforts of their governments with
    regard to deregulation and competition policy under the U.S.-Japan
    Framework for a New Economic Partnership (``Framework''). This Enhanced
    Initiative on Deregulation and Competition Policy (``Enhanced
    Initiative'') is intended to carry out that decision.
    B. The objective of the Enhanced Initiative, which will address both
    sectoral and structural issues, is to conduct a serious exchange of
    views and to undertake measures, as called for in the Framework, to
    ``address reform of relevant government laws, regulations, and guidance
    which have the effect of substantially impeding market access for
    competitive goods and services'' in order to enhance consumers'
    interests and to increase efficiency and promote economic activity.
    C. The Enhanced Initiative will be carried out through meetings of the
    High-level Officials Group and expert-level groups, described below,
    consistent with the principles of the Framework, such as achievement of
    tangible progress, limiting consultations to matters within the scope
    and responsibility of government, the MFN principle, and the removal of
    sectoral and structural impediments to expanded international trade and
    investment flows. In addition, the meetings held under this Enhanced
    Initiative will take place under the basic principle of two-way
    dialogue.

    II. The High-level Officials Group and Reports to the Leaders of the Two
    Countries

    A. A High-level Officials Group will be established to review and
    comment on reports by the expert-level groups. The High-level Officials
    Group will make utmost efforts to resolve any

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    outstanding issues forwarded by the expert-level groups.
    B. The High-level Officials Group will be chaired by the Deputy
    Minister, Ministry of Foreign Affairs (MOFA), and the Deputy USTR. Other
    principal agencies participating in the expert-level groups as described
    in Section III will be represented by appropriately ranked officials
    from the GOJ and the USG.
    C. Meetings of the High-level Officials Group will be held once a year,
    or more frequently as agreed by both sides.
    D. The progress under the Enhanced Initiative will be reported to the
    leaders of the two countries since the strengthening of dialogue on
    deregulation is based on the decision between the leaders of Japan and
    the United States, and the promotion of deregulation and active
    implementation of competition policy are issues of major importance to
    the GOJ.

    III. Expert-level Groups

    A. Overview
    (1) Expert-level groups will be tasked with fulfilling the objective of
    the Enhanced Initiative.
    (2) Initially, five expert-level groups will be included within the
    Enhanced Initiative: four sectoral groups--telecommunications, housing,
    medical devices/pharmaceuticals, and financial services--and the
    Deregulation and Competition Policy Working Group (the Working Group).
    (3) Expert-level groups on other issues may be established or otherwise
    brought under the Enhanced Initiative in the future as agreed by both
    sides.
    (4) Each experts-level group will decide the schedule and items to be
    taken up in its group.
    (5) Officials in charge of domestic regulations within the scope of each
    expert-level group will participate as appropriate.
    (6) Each expert-level group will report in writing to the High-level
    Officials Group, unless the expert-level group decides otherwise.
    B. Sectoral Groups
    The two governments will use existing fora to the extent possible,
    including the following:
    (1) Deregulation in the telecommunications sector, including the
    implementation of the GATS commitments on basic telecommunications in
    each country, will be addressed in the existing experts group, co-
    chaired by MOFA and the Ministry of Post and Telecommunications and by
    USTR for the USG.
    (2) Deregulation in the housing sector will be addressed in an expert-
    level group at the occasion of the existing wood products subcommittee,
    chaired by MOFA for the GOJ and USTR for the USG. The housing expert-
    level group will be co-chaired by MOFA and the Ministry of Construction
    for the GOJ and by USTR for the USG.
    (3) Deregulation in the medical devices/pharmaceuticals sector will be
    addressed in the existing MOSS medical devices/pharmaceuticals
    consultations, chaired by the Ministry of Health and Welfare for the GOJ
    and by the Department of Commerce (DOC) for the USG.
    (4) Deregulation in the financial services sector will be addressed in
    the existing financial services consultations, chaired by the Ministry
    of Finance (MOF) for the GOJ and by the Department of the Treasury for
    the USG.
    C. Deregulation and Competition Policy Working Group
    (1) The two governments will continue to address developments in the
    deregulation process within the Deregulation and Competition Policy
    Working Group (the Working Group), chaired by MOFA for the GOJ and by
    USTR and the Department of Justice (DOJ) for the USG.
    (2) Cross-sectoral issues will be addressed within the Working Group as
    follows:
        --Structural issues such as competition policy and distribution will
            be addressed in a subgroup that will be established, to be co-
            chaired by MOFA, MOF, Ministry of International Trade and
            Industry, Ministry of Transportation, and the Japan Fair Trade
            Commission for the GOJ and by the Department of State and DOJ
            for the USG.
        --Issues related to transparency and other government practices will
            be addressed in the Working Group, which, for the purposes of
            this dialogue will be chaired by MOFA for the GOJ and by DOC for
            the USG.
    (3) Other issues on deregulation which are not discussed in other
    expert-level groups may also be taken up within the Working Group.

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