[Weekly Compilation of Presidential Documents Volume 33, Number 25 (Monday, June 23, 1997)]
[Pages 909-911]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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

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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 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

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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.

Note: An original was not available for verification of the content of 
this joint statement.