APPENDIX C-JOINT STATEMENT BY MINISTER USHIBA AND AMBASSADOR STRAUSS 1. On January 12 and 13, 1978 the Governments of Japan and the United States of America, through their representatives, Minister of State for External Economic Affairs, Mr. Nobuhiko Ushiba, and the President's Special Representative for Trade Negotiations, Ambassador Robert S. Strauss, consulted upon a series of policies and measures designed to contribute to global economic expansion and to strengthen their economic relations. The objective of the consultations was to develop common policies which would facilitate constructive adjustment to changing world economic conditions and the economic relationship between Japan and the United States. 2. In particular, Minister Ushiba and Ambassador Strauss agreed that a new course of action, building on the steps outlined below, was necessary to avert increasing unemployment and a worldwide reversion to protectionism. Increased Economic Growth 3. Both sides agreed to take major steps to achieve high levels of non-inflationary, economic growth. The Government of Japan reiterated its recently adopted real growth target of seven percent for Japan Fiscal Year (JFY) 1978, and stated its intention to take all reasonable and appropriate measures, including those previously announced with respect to public expenditures, in order to achieve this target. The Government of the United States confirmed its intention to pursue policies aimed at the maintenance of substantial, non-inflationary economic growth, as will soon be detailed by President Carter. 4. Both sides agreed that in the present international economic situation, the accumulation of a large current account surplus was not appropriate. Accordingly, Japan has undertaken steps aimed at achieving a marked diminution of its current account surplus. The Minister added that in JFY 1978 Japan's current account surplus would be considerably reduced through the expansion of domestic demand, the effect of yen appreciation in recent months, and a series of new measures for improving the access of foreign goods to the Japanese market. In JFY 1979, and thereafter, under present international economic conditions, all reasonable efforts would be continued with a view to further reducing Japan's current account surplus, aiming at equilibrium, with deficit accepted if it should occur. The United States stated its intention to improve its balance of payments position by such measures as reducing its dependence on imported oil and increasing its exports, thereby improving the underlying conditions upon which the value of the dollar fundamentally depends. The Ambassador expressed confidence that in the next ninety days an effective energy program would be enacted by the Congress. Trade Objectives 5. To preserve and strengthen the open world trading system, both sides fully support the acceleration and early conclusion of the Tokyo Round of the Multilateral Trade Negotiations (MTN), each making substantial contributions in full cooperation with other participants to reduce or eliminate tariff and non-tariff barriers to trade. 6. Both governments agreed that their joint objective in these negotiations is to achieve basic equity in their trading relations by affording to major trading countries substantially equivalent competitive opportunities on a reciprocal basis. To achieve parity in their trading relations and equivalent openness of their markets, deeper than formula tariff reductions would be utilized. In this connection, both sides expressed their intent in the course of the MTN to consider favorably taking deeper than formula tariff reductions on items of interest to each other with the aim of seeking to achieve comparable average levels of bound tariffs, taking into account non-tariff measures at the end of the MTN, taking fully into account the interest of third countries. (82) 7. The Government of Japan intends to take all appropriate steps to increase imports of manufactures. The Government anticipated that the total volume of imports of manufacturers, as well as the share of these imports in total Japanese imports, would continue to increase steadily. Both sides agreed to review progress in these matters in the Joint Trade Facilitation Committee or other appropriate forums and to take whatever corrective actions might be necessary. Trade Measures 8. The Minister stated that Japan is taking the following significant actions to increase imports: -Advance tariff reductions on $2 billion of imports effective April 1. As regards high qualify beef, we shall make mutual efforts to exploit demand A four-fold increase to 4,000 tons in the quota for citrus juice. -Conducting a sweeping review of its foreign exchange control system and planning a new system based on the principle that all transactions should be free unless specifically prohibited. As a forerunner of the new system, certain immediate measures of liberalization are to be announced soon. -Formation of an inter-industry citrus group to study the present state and future developments in the citrus situation including juice blending and seasonal quota, and to report to their Governments by November 1, 1978. -Dispatch of a forest products study group to the U.S. Northwest with the objective of expanding and upgrading this trade. -Dispatch to the United States of a mission to explore the possibility of purchasing electric power plant machinery and equipment, including nuclear plant components and equipment. Dispatch to the United States of a government-industry buying mission sponsored by the Joint Trade Facilitation Committee. A Japanese Cabinet decision to secure for foreign suppliers substantially increased opportunities under government procurement systems. -Simplification of inspection requirements on imports. Expansion of credit for imports into Japan. -Relaxation of rules for the standard method of settlement. -Cooperation in international efforts to curb excessive competition in export credits. Economic Cooperation 9. Referring to official development assistance (ODA), the Minister reaffirmed the intention of the Government of Japan to more than double its aid in five years and noted that, as part of such efforts, proposed ODA for JFY 1978 had substantially increased, and that the quality of ODA had improved through an increase of grant aid. He added that the Government of Japan would pursue its basic policy of general untying of its financial assistance. Ambassador Strauss welcomed these developments and noted that the President would seek legislation to increase substantially U.S. bilateral and multilateral aid to developing countries. Review Procedures 10. In addition, both sides agreed: -To coordinate closely with each other and their trading partners including the European Communities in multilateral and bilateral forums. -To improve access to Japanese markets, by making every effort to assure the success of the Joint Trade Facilitation Committee in its work to increase imports of manufactures, and resolve concrete problems encountered in trade with Japan including the aim of overcoming non-tariff barriers by applying a liberal approach. -To continue regular technical exchanges on growth problems and prospects through the Joint Economic Projections Study Group. -To review global and bilateral economic policy this spring in Washington -To review progress made in all these areas at a meeting between Minister APPENDIX D-JOINT STATEMENT OF AMBASSADOR STRAUSS AND MINISTER USHIBA, JUNE 2, 1979 1. Government Procurement and Related Markets (A) The Governments of Japan and the United States agree that mutual reciprocity should be provided among Japan, the United States and other major countries in access opportunities to each other's markets, including the market for telecommunications. (1) As part of the program for realizing this objective, the Governments of Japan and the United States will endeavor to reach agreement on entity coverage in the field of telecommunications under the MTN Government Procurement Code, following a work schedule beginning in July 1979, with a view to reaching agreement not later than December 31, 1980, the effective date of the Code. (2) The Government of the United States considers the offer coverage of Japan as of this date as a concrete step made by Japan within the framework of this program for mutual reciprocity. The Government of Japan considers the access opportunities offered by U.S. telecommunications enterprises as relevant for implementation of the program. In the event no agreement is reached, it is understood that this offer will no longer be binding. (B) During the course of this work program, and in the positive spirit of this agreement, the Governments of Japan and the United States agree to use their best efforts to: (1) facilitate sales by foreign manufacturers to the private telecommunications equipment market in Japan and its equivalent in the United States; (2) allow foreign firms possessing the latest in sophisticated technology and know-how to participate in R & D programs leading to procurement; (3) orient foreign firms on how to meet the respective market requirements to enable these firms to submit proper and timely bids. (C) The two Governments agree that they will work for a full implementation of the program for mutual reciprocity, by the time of the scheduled three-year review on the implementation and operation of the Government Procurement Code (Part IX 6(b)), including a U.S.-Japan assessment of bilateral telecommunications trade to determine if reciprocal access opportunities between these two markets are fair and equitable. 2. Staging (A) The Government of Japan has announced its intention to implement its tariff reductions by cutting tariff from applied rates as of April 1, 1979 (except where a specific different schedule was agreed during product negotiations). (B) The Government of Japan has also decided that it will accelerate implementation by making both first and second year reductions simultaneously in 1980, to the maximum extent possible, taking into account its final balance achieved with other negotiating partners. 3. Other Issues (A) Cigars and Cigarettes: The Government of the United States and the Government of Japan agree to open promptly discusions on the problems of imported cigars and cigarettes including their pricing, distribution and marketing in Japan. (B) Standards: The Government of the United States and the Government of Japan agree to negotiate a mutually acceptable and reciprocal approach to testing procedures and certification by January 1,1980, under the terms of the Standards Code. (C) Coal: Recognizing the importance of trade in coal to both countries, the Government of the United States and the Government of Japan agree to seek to encourage U.S. coal imports into Japan. (84) APPENDIX E JOINT STATEMENT ON STANDARDS, TESTING AND CERTIFICATION ACTIVITIES—DECEMBER 7, 1979 The Government of the United States and the Government of Japan, taking into account national differences and pursuant to the standards part of the June 2, 1979 Joint Statement, have considered the following principles relating to standards, testing and certification activities,1 and agree, with the objectives of the MTN Agreement on Technical Barriers to Trade in mind, that these principles should be observed when standards, testing and certification activities are engaged in within their territories, so that trade relations on an open and reciprocal basis between the two countries, with regard to standards, testing and certification activities, can be realized. 1. It is important for the two countries to agree on mutually acceptable arrangements for the acceptance of test data from the exporting country in selected product sectors, with the objective of achieving reciprocity in this area between the United States and Japan. To that end, the governments of the United States and Japan will begin, as soon as possible, consultations to implement this principle. The "acceptance of test data" is to include the acceptance of test results, certificates or marks of conformity issued by relevants bodies in the territory of either country, or the reliance upon self-certification by producers in the territory of either country, with the proviso that the practices employed in the territory of the exporting country are considered in the importing country to provide a sufficient means of determining conformity with relevant standards. 2. Public notice of any proposed new or revised domestic standards activity which may have a significant effect on trade or certification activity should be made sufficiently in advance to allow interested persons an opportunity to make substantive comments on the proposed activity, except where urgent problems of safety, health, environment protection and national security may arise, and to have those comments discussed upon request, and duly taken into account. It is recognized that it is desirable that views of parties in the exporting country, including those of producers or their representatives, as well as domestic interests, be represented during appropriate phases of the development of domestic standards, or certification activities. 3. The administrative procedures and test methods for products submitted by suppliers from the exporting country to approval agencies for determination of conformity with standards are to be no less favorable than corresponding procedures and methods for like products in a comparable situation submitted by domestic suppliers. Direct access, including the right of direct application, to approval agencies should be granted to suppliers from the exporting country, as well as to domestic suppliers. It is recognized that for reasons of accountability the importing country may require that in place of a supplier in the exporting country, a representative in the importing country file the formal application. 4. All product testing organizations within the United States and Japan should, upon request from the producer or his representative, provide: (a) information regarding specific test procedures followed; (c) in instances in which the submitted products has been found unacceptable, wherever appropriate and possible, a clear indication of the requirements of the applicable standards that the product failed to meet and of the parameters of the product that failed to meet the applicable standards. In instances where test results are in dispute, any producer or his representative submitting a product to a testing organization for certification should be permitted to observe retesting of his product, whenever possible. 5. Readily accessible and expeditious appeals procedures within testing organizations, approval agencies, or other agencies as appropriate should be available to suppliers in the exporting country or their representatives as well as to domestic suppliers, who wish to appeal the decisions of these bodies. 1 Standards, testing and certification activities are those described in the MTN Agreement on Technical Barriers to Trade, and the term "standards" includes technical regulations. (85) 6. Once a product has been approved to a basic set of specifications, the approval process for that product with minor changes in its specifications, should be more expeditious than the approval process for a new product with the same set of specifications. Additional testing, required on a product for minor specification changes, should be limited to that necessary to assure that the product, as changed, also meets appropriate standards. 7. Whenever appropriate, standards are to be specified in terms of performance criteria rather than design criteria. In this regard, products from the exporting country that conform with standards written in terms of performance criteria should be accepted in the importing country whenever, through consultations held upon request from the exporting country, sufficient evidence is supplied that would enable the determination to be made in the importing country that such products are acceptable and conform with the objectives of domestic standards written in terms of design criteria. 8. It is recognized that where maximum allowable limits are set and listed for substances contained in various products for health or safety reasons, consideration should be given to allowable limits recommended in relevant international standards. Where maximum allowable limits are set and listed for substances contained in various products for health or safety reasons, the two governments agree to consult whenever a question is raised by the exporting country concerning the acceptance of products from the exporting country containing negligible amounts of substances not on such a list, recognizing that the right to make the final determination regarding protection of human health or safety, animal or plant life or health, or the environment rests in the importing country. The two governments also agree to discuss specific product issues concerning standards and certification activities, and to endeavor to achieve prompt and effective resolution of these issues by January 1, 1981. In addition, the two governments agree to hold consultations on this document, at the request of either government. |