[Federal Register Volume 60, Number 129 (Thursday, July 6, 1995)]
[Notices]
[Page 35253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16737]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-93]
Termination of Investigation: Barriers to Access to the Auto
Parts Replacement Market in Japan
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of determination to terminate the investigation pursuant
to sections 301(b) and 304(a)(1)(B) of the Trade Act of 1974, as
amended (Trade Act) (19 U.S.C. 2411(b) and 2414(a)(1)(B)) and notice of
monitoring pursuant to section 306 of the Trade Act (19 U.S.C. 2416).
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SUMMARY: On May 10, 1995, the United States Trade Representative (USTR)
determined pursuant to section 304(a)(1)(A) of the Trade Act that
certain acts, policies and practices of Japan are unreasonable and
discriminatory and burden or restrict U.S. commerce. Having reached a
satisfactory resolution of the issues under investigation, the USTR has
determined pursuant to sections 301(b) and 304(a)(1)(B) that the
appropriate action in this case is to terminate this investigation and
to monitor compliance with this Agreement in accordance with section
306 of the Trade Act.
EFFECTIVE DATE: This investigation was terminated effective June 28,
1995.
ADDRESSES: Office of the United States Trade Representative, 600 17th
Street, N.W., Washington, D.C. 20508.
FOR FURTHER INFORMATION CONTACT:
David Burns, Senior Advisor for Japan, (202) 395-5050, or James
Southwick, Assistant General Counsel, (202) 395-37203.
SUPPLEMENTARY INFORMATION: On October 1, 1994, the USTR initiated an
investigation pursuant to section 302(b) of the Trade Act to determine
whether specific barriers to access to the auto parts replacement and
accessories market (``after-market'') in Japan are unreasonable or
discriminatory and burden or restrict U.S. commerce. See 59 FR 52034
(October 13, 1994). On May 10, 1995, the USTR, pursuant to section
304(a)(1)(A)(ii) of the Trade Act, determined that the practices under
investigation were unreasonable and discriminatory and burden or
restrict U.S. commerce and requested comment on a proposed action. See
60 FR 26745 (May 18, 1995). The USTR found that the Japanese market for
replacement auto parts is restricted by a complex system that is not
reasonable or justifiable. This system channels most repair work to
government-certified garages that uses very few foreign parts, and the
system restricts the development of other garages more likely to carry
and use foreign parts. In addition, even minor additions of accessories
to motor vehicles require a full vehicle inspection and tax payment,
which severely limits opportunities for U.S. automotive accessories
suppliers.
On June 28, 1995 after extensive negotiations, the United States
and Japan reached agreement on measures to deregulate the replacement
parts and accessories market in Japan. Specifically, Japan has agreed
to: (a) Immediately deregulate the following items on the critical
parts list--struts, shocks, power steering, and trailer hitches, (b)
conduct a one-year review of the critical parts list with the goal of
deregulating any parts that are not central to health and safety
concerns; (c) implement a petition procedure under which the Ministry
of Transport will respond within 30 days to requests that a critical
part be removed from the list; (d) with respect to accessories, no
longer require Ministry of Transport (MOT) inspection for modifications
attached to autos by any means other than welding and riveting; (e)
issue regulations to establish a ``specialized certified garage''
system for garages that specialize in the repair of any combination of
vehicle systems on the critical parts list and not require repairs by
these garages to be subject to MOT inspection; (f) reduce the number of
government-approved mechanics for ``designated'' garages from 3 to 2
and for ``certified'' garages from 2 to 1; and (g) permit ``certified''
garages with 5 mechanics to conduct the periodic inspections as
``special designated garages.''
On the basis of the commitments contained in this Agreement and in
the expectation that these commitments will be fully implemented, the
USTR has decided to terminate this investigation. Consequently,
although the acts, policies, and practices under investigation are
unreasonable and discriminatory and burden or restrict U.S. commerce
and would have warranted action in response if an agreement had not
been reached, the USTR has decided that the appropriate action is to
terminate the investigation. Thus the action proposed in the May 18,
1995, notice will not be taken. The USTR will monitor Japan's
compliance with this Agreement pursuant to section 306 of the Trade
Act.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 95-16737 Filed 7-5-95; 8:45 am]
BILLING CODE 3190-01-M