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- FOREIGN TRADE BARRIERS
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- Over the past few years, the Government of Japan has
- removed most formal barriers to the import of goods and
- services. Import licenses, which are still technically
- required for all goods, are granted on a pro forma basis
- with limited exceptions (fish, leather goods, and some
- agricultural products). Japan's average tariff rate is one
- of the world's lowest, and Japan has offered to reduce its
- industrial tariffs by one-third in the Uruguay Round market
- access negotiations. If successful, the Uruguay Round will
- further reduce trade barriers in a number of areas such as
- agriculture, where an end to the ban on rice imports is
- sought; manufactured goods, where the United States has
- proposed the mutual elimination of tariffs for major
- industrial sectors; and the services sector.
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- In one of the most intensive periods of U.S.-Japan trade
- negotiations ever, U.S. and Japanese negotiators in
- concluded agreements to improve sales opportunities for
- foreign supercomputer manufacturers in Japan's public
- sector supercomputer market, remove restrictions for
- purchases of foreign commercial satellites, resolve tariff
- and standards issues regarding wood products, and enhance
- opportunities for U.S. and foreign semiconductor
- manufacturers to sell their products in Japan. In
- addition, the Government of Japan agreed to liberalize the
- market for telecommunication products and services,
- strengthen copyright protection for American music
- recordings, and resolve a dispute involving amorphous
- metals. Also, the list of construction projects covered by
- the Major Projects Agreement (MPA) was expanded in July
- 1991. The revised MPA improves the procurement procedures
- and has established a new complaints mechanism.
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- Current obstacles to selling into the Japanese market do
- not fit into conventional trade barrier categories.
- Instead of tariffs and official discrimination against
- imports, American exporters face a number of factors which
- raise costs and inhibit access. These include the tangle
- of government red tape, the high cost of land, an outdated
- and fragmented distribution system, collusion among
- Japanese competitors, and insular attitudes by both
- government and private business executives. As described
- previously, through the SII, the Japanese Government has
- committed itself to a number of steps in the areas of
- distribution, exclusionary business practices, and land use
- which should help cut the cost of new market entry for U.S.
- exporters.
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