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2007/SOM1/007anx1

Agenda Item: III

Concluding Remarks by the Moderator of the Individual Action Plan (IAP) Peer Review of Japan

Purpose: Consideration

Submitted by: APEC Secretariat

/ First Senior Officials’ MeetingCanberra, Australia
18 January 2007

IAP PEER REVIEW OF JAPAN

Closing Statement by Moderator

U.S. Ambassador for APEC Michael W. Michalak

January 16,2007

  1. I thank all of you for a very engaging discussion today. I appreciate the comprehensive study report and presentation by our experts, Dr. Robert Scollay from New Zealand and Dr. Chia Siow Yue from Singapore. I would also like to thank the Secretariat for coordinating this Peer Review. Finally, I would like to thank the Japanese delegation led by Mr. Nobuyuki Muto, Deputy Director for International Economic Affairs from the Cabinet Office, Mr. Mashashi Mizukami from the Ministry of Foreign Affairs and Mr. Nobuhiko Sasaki from the Ministry of Tradeand Industry. We appreciate all of the experts you have brought from your government to clarify and explain your efforts to date. We thank you for your time and willingness to accept and respond to additional questions raised here today and others that will be submitted in written form to the Secretariat within the next two weeks.
  1. We have covered a broad array of topics and I will attempt to summarize some of the key points here. Overall, members agree that Japan has made significant progress in all IAP chapters since its last review in 2002. Japan is on the right track, but more can be done to accelerate this process and fulfill its Bogor commitments by 2010.
  1. The Experts report noted that, in general, Japan has a low tariff regime with most categories at 5% or lower. However, tariffs are very highat above 20% in two product categories:(1) agricultureand leather and (2) rubber, footwear and travel goods. Membersurged Japan to undertake measures that would facilitate liberalization in these areas.
  1. Investment is still an important issue in Japan and essential to sustained growth. Japan is encouraged to improve the implementation of investment promotion policies so that the Prime Minister’s goal of doubling FDI by 2010 can be achieved.
  1. Japan’s non-tariff measures appear to bein accordance with international agreements and arrangements, except in certain agricultural and food safety sectors. Similarly, the Japanese Industrial Standards (JIS) are well advanced and appear to be aligned with international standardswhere appropriate.
  1. Japan has achieved a commendable level of IPR protection since its last review. It has strengthened IPR laws and efforts in anti-counterfeiting and anti-piracy. Japan has also increased the penalties for IPR violations and has expanded public education in IPR.
  1. Members commended the effortsof the Japan Fair Trade Commission (JFTC)to enforce the Antimonopoly Act (AMA) as reflected in the IAP and Study Report. Members noted the detailed plan for the privatization of Japan Post by 2017 and the significant measures planned for October 1, 2007 to initiate this process. Members encouraged Japan to take measures to ensure transparency, openness, and strong supervision of the privatization process, as well as to ensure that equal competitive conditions are established between the private sector and Japan Post.
  1. With regard to government procurement, recent data presented in the study report suggests an unfortunate, increasing trend in the proportion of procurements undertaken by single tendering. The value of contracts decided by single and selective tender is higher than that of open tendering.
  1. In closing, members commended Japan for its leadership within APEC and look forward to its continued efforts toward achieving the Bogor goals and free and open trade and investment by 2010 for industrialized economies and 2020 for developing economies.

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