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- BUSINESS, Page 46Tokyo Answers the Call
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- Facing U.S. sanctions, Japan opens its mobile-phone market
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- The dispute was kindled by just one U.S. company's
- frustration with a protected market niche in Japan, but the
- issue nearly triggered a major trade confrontation between the
- two countries. Last week Japan defused the standoff by agreeing
- to remove barriers to foreign products in the lucrative
- Tokyo-area market for mobile-telephone and two-way-radio
- services. Said U.S. Trade Representative Carla Hills, who
- negotiated the pact: "The measures should provide immediate
- improvements for U.S. companies in these two high-growth
- segments of the Japanese telecommunications market."
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- The dispute began in earnest when Illinois-based Motorola
- complained to the U.S. Government last April that Japan was
- reneging on part of a 1985 agreement to open up its
- telecommunications market. After reviewing the accord, Hills
- determined that the Japanese Ministry of Posts and
- Telecommunications was requiring stricter licensing procedures
- for foreign companies than for domestic competitors and would
- not assign any radio frequencies for Motorola-produced equipment
- in the Tokyo area. Hills declared that if the ministry did not
- change its position by July 10, she would slap punitive duties
- on a range of Japanese products. After ten days of talks, the
- two sides hammered out an agreement that eases the two-way-radio
- regulations, grants radio frequencies to Motorola's mobile
- phones in Tokyo and surrounding cities, and guarantees the
- company access to 40% of new two-way-radio licenses in Tokyo.
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- The hard-line U.S. position was prompted by the trade bill
- passed by Congress last year, which compels the Trade
- Representative to battle foreign protectionist barriers
- aggressively. Japan's willingness to give ground last week was
- an encouraging sign that the country is determined to avoid a
- major blowup in forthcoming rounds of barrier-bashing talks
- required by the new U.S. law.
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