II

103D CONGRESS

2D SESSION S. 1872

To expand United States exports of goods and services by requiring the

development of objective criteria to achieve market access in Japan,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 24 (legislative day, FEBRUARY 22), 1994

Mr. ROCKEFELLER introduced the following bill; which was read twice and

referred to the Committee on Finance

A BILL

To expand United States exports of goods and services by

requiring the development of objective criteria to achieve

market access in Japan, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Fair Market Access

5 Act of 1994’’.

6 SEC. 2. REPORTS ON ACCESS TO JAPANESE MARKETS.

7 (a) INITIAL REPORT.—

8 (1) IN GENERAL.—Not later than 90 days after

9 the date of the enactment of this Act, the Secretary
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1 shall submit to the Congress a report assessing the

2 access to the Japanese market of goods and services

3 produced or originating in the United States in each

4 sector specifically identified in the Framework

5 Agreement.

6 (2) CONTENTS OF REPORT.—The Secretary

7 shall include in the report under paragraph (1) the

8 following:

9 (A) An assessment of the market access

10 opportunities that would be available in the

11 Japanese market for goods and services in each

12 sector referred to in paragraph (1) in the ab13 sence of barriers to achieving access to such

14 market in both the public and private sectors in

15 Japan. In making such assessment, the Sec16 retary shall consider the competitive position of

17 such goods and services in similarly developed

18 markets in other countries. Such assessment

19 shall specify the time periods within which such

20 market access opportunities should reasonably

21 be expected to be obtained.

22 (B) Objective criteria for measuring the

23 extent to which those market access opportuni24 ties described in subparagraph (A) have been

25 obtained. The development of such objective cri-
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1 teria may include the use of interim objective

2 criteria to measure results on a periodic basis,

3 as appropriate.

4 (b) SUBSEQUENT ANNUAL REPORTS.—

5 (1) IN GENERAL.—Not later than the date

6 which is 1 year after the last day of the 90-day pe7 riod referred to in subsection (a)(1), and annually

8 thereafter, the Secretary shall submit to the Con9 gress a report containing the following:

10 (A) An assessment of the market access

11 opportunities that would be available in the

12 Japanese market, for goods and services pro13 duced or originating in the United States in

14 those sectors selected by the Secretary, in the

15 absence of the barriers to achieving access to

16 such market in both the public and private sec17 tors in Japan. In making such assessment, the

18 Secretary shall consider the competitive position

19 of such goods and services in similarly devel20 oped markets in other countries. Such assess21 ment shall specify the time periods within which

22 such market access opportunities should reason23 ably be expected to be obtained.

24 (B) Objective criteria for measuring the

25 extent to which those market access opportuni-
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1 ties described in subparagraph (A) have been

2 obtained. The development of such objective cri3 teria may include the use of interim criteria de4 scribed in subsection (a)(2)(B).

5 (C) An assessment of whether, and to what

6 extent, Japan has materially complied with—

7 (i) agreements and understandings

8 reached between the United States and

9 Japan pursuant to section 3, and

10 (ii) existing trade agreements between

11 the United States and Japan.

12 Such assessment shall include specific informa13 tion on the extent to which United States sup14 pliers have achieved additional access to the

15 Japanese market and the extent to which

16 Japan has complied with other commitments

17 under such agreements and understandings.

18 (D) An assessment of the effect of the

19 agreements and understandings described in

20 subparagraph (C) on the access to the Japanese

21 markets of goods and services produced or orig22 inating in the United States.

23 (2) SELECTION OF SECTORS.—In selecting sec24 tors that are to be the subject of a report under
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1 paragraph (1), the Secretary shall give priority to

2 those sectors—

3 (A) in which access to the Japanese mar4 ket is likely to have significant potential to in5 crease exports of United States goods and serv6 ices;

7 (B) in which access to the Japanese mar8 ket will result in significant employment bene9 fits for producers of United States goods and

10 services; or

11 (C) which represent critical technologies,

12 including those identified by the National Criti13 cal Technologies Panel under section 603 of the

14 National Science and Technology Policy, Orga15 nization, and Priorities Act of 1976 (42 U.S.C.

16 6683).

17 The Secretary shall include an assessment under

18 paragraph (1) of any sector for which the Trade

19 Representative requests such assessment be made.

20 In preparing any such request, the Trade Represent21 ative shall give priority to those barriers identified in

22 the reports required by section 181(b) of the Trade

23 Act of 1974.

24 (3) INFORMATION ON ACCESS BY FOREIGN SUP25 PLIERS.—The Secretary shall consult with the gov-
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1 ernments of foreign countries concerning access to

2 the Japanese market of goods and services produced

3 or originating in those countries. At the request of

4 the government of any such country, the Secretary

5 may include in the reports required by paragraph

6 (1) information, with respect to that country, on

7 such access.

8 SEC. 3. NEGOTIATIONS TO ACHIEVE MARKET ACCESS.

9 (a) NEGOTIATING AUTHORITY.—The President is au10 thorized to enter into agreements or other understandings

11 with the Government of Japan for the purpose of obtain12 ing the market access opportunities described in the re13 ports of the Secretary under section 2.

14 (b) DETERMINATION OF PRIORITY OF NEGOTIA15 TIONS.—Upon the submission by the Secretary of each re16 port under section 2, the Trade Representative shall deter17 mine—

18 (1) for which sectors identified in the report the

19 Trade Representative will pursue negotiations, dur20 ing the 6-month period following submission of the

21 report, for the purpose of concluding agreements or

22 other understandings described in subsection (a),

23 and the time frame for pursuing negotiations on any

24 other sector identified in the report; and
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1 (2) for which sectors identified in any previous

2 report of the Secretary under section 2 the Trade

3 Representative will pursue negotiations, during the

4 6-month period described in paragraph (1), in cases

5 in which—

6 (A) negotiations were not previously pur7 sued by the Trade Representative, or

8 (B) negotiations that were pursued by the

9 Trade Representative did not result in the con10 clusion of an agreement or understanding de11 scribed in subsection (a) during the preceding

12 6-month period, but are expected to result in

13 such an agreement or understanding during the

14 6-month period described in paragraph (1).

15 For purposes of this Act, negotiations by the Trade Rep16 resentative with respect to a particular sector shall be for

17 a period of not more than 12 months.

18 (c) SEMIANNUAL REPORTS.—At the end of the 6-

19 month period beginning on the date on which the Sec20 retary’s first report is submitted under subsection (a)(1),

21 and every 6 months thereafter, the Trade Representative

22 shall submit to the Congress a report containing the fol23 lowing:
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1 (1) With respect to each sector on which nego2 tiations described in subsection (b) were pursued

3 during that 6-month period—

4 (A) a determination of whether such nego5 tiations have resulted in the conclusion of an

6 agreement or understanding intended to obtain

7 the market access opportunities described in the

8 most recent applicable report of the Secretary,

9 and if not—

10 (i) whether such negotiations are con11 tinuing because they are expected to result

12 in such an agreement or understanding

13 during the succeeding 6-month period; or

14 (ii) whether such negotiations have

15 terminated; and

16 (B) in the case of a positive determination

17 made under subparagraph (A)(i) in the preced18 ing report submitted under this subsection, a

19 determination of whether the continuing nego20 tiations have resulted in the conclusion of an

21 agreement or understanding described in sub22 paragraph (A) during that 6-month period.

23 (2) With respect to each sector on which nego24 tiations described in subsection (b) were not pursued
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1 during that 6-month period, a determination of when

2 such negotiations will be pursued.

3 SEC. 4. MONITORING OF AGREEMENTS AND UNDERSTAND4 INGS.

5 (a) IN GENERAL.—For the purpose of making the

6 assessments required by section 2(b)(1)(C), the Secretary

7 shall monitor the compliance with each agreement or un8 derstanding reached between the United States and Japan

9 pursuant to section 3, and with each existing trade agree10 ment between the United States and Japan. In making

11 each such assessment, the Secretary shall describe—

12 (1) the extent to which market access for the

13 sector covered by the agreement or understanding

14 has been achieved; and

15 (2) the bilateral trade relationship with Japan

16 in that sector.

17 In the case of agreements or understandings reached pur18 suant to section 3, the description under paragraph (1)

19 shall be done on the basis of the objective criteria set forth

20 in the applicable report under section 2(a)(2)(B) or

21 2(b)(1)(B).

22 (b) TREATMENT OF AGREEMENTS AND UNDER23 STANDINGS.—Any agreement or understanding reached

24 pursuant to negotiations conducted under this Act, and

25 each existing trade agreement between the United States
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1 and Japan, shall be considered to be a trade agreement

2 for purposes of section 301 of the Trade Act of 1974.

3 SEC. 5. TRIGGERING OF SECTION 301 ACTIONS.

4 (a) DETERMINATIONS BY TRADE REPRESENTA5 TIVE.—

6 (1) FAILURE TO CONCLUDE AGREEMENTS.—In

7 any case in which the Trade Representative deter8 mines under section 3(c)(1)(A)(ii) or (B) that nego9 tiations have not resulted in the conclusion of an

10 agreement or understanding described in section

11 3(a), each barrier to access to the Japanese market

12 that was the subject of such negotiations shall, for

13 purposes of title III of the Trade Act of 1974, be

14 considered to be an act, policy, or practice deter15 mined under section 304 of that Act to be an act,

16 policy or practice that is unreasonable and discrimi17 natory and burdens or restricts United States com18 merce. The Trade Representative shall determine

19 what action to take under section 301(b) of that Act

20 in response to such act, policy, or practice.

21 (2) NONCOMPLIANCE WITH AGREEMENTS OR

22 UNDERSTANDINGS.—In any case in which the Sec23 retary determines, in a report submitted under sec24 tion 2(b)(1), that Japan is not in material compli25 ance with—
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1 (A) any agreement or understanding con2 cluded pursuant to negotiations conducted

3 under section 3, or

4 (B) any existing trade agreement between

5 the United States and Japan,

6 the Trade Representative shall determine what ac7 tion to take under section 301(a) of the Trade Act

8 of 1974. For purposes of section 301 of that Act, a

9 determination of noncompliance described in the pre10 ceding sentence shall be treated as a determination

11 made under section 304 of that Act.

12 SEC. 6. DEFINITIONS.

13 As used in this Act:

14 (1) EXISTING TRADE AGREEMENT BETWEEN

15 THE UNITED STATES AND JAPAN.—The term ‘‘exist16 ing trade agreement between the United States and

17 Japan’’ means any trade agreement that was en18 tered into between the United States and Japan be19 fore the date of the enactment of this Act and is in

20 effect on such date. Such term includes—

21 (A) the Arrangement Between the Govern22 ment of Japan and the Government of the

23 United States of America Concerning Trade in

24 Semiconductor Products, signed in 1986;
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1 (B) the Arrangement Between the Govern2 ment of Japan and the Government of the

3 United States of America Concerning Trade in

4 Semiconductor Products, signed in 1991;

5 (C) the United States-Japan Wood Prod6 ucts Agreement, signed on June 5, 1990;

7 (D) Measures Related to Japanese Public

8 Sector Procurements of Computer Products and

9 Services, signed on January 10, 1992;

10 (E) the Tokyo Declaration on the U.S.-

11 Japan Global Partnership, signed on January

12 9, 1992; and

13 (F) the Cellular Telephone and Third14 Party Radio Agreement, signed in 1989.

15 (2) FRAMEWORK AGREEMENT.—The term

16 ‘‘Framework Agreement’’ means the Japan-United

17 States Framework for a New Economic Partnership,

18 signed on July 10, 1993.

19 (3) SECRETARY.—The term ‘‘Secretary’’ means

20 the Secretary of Commerce.

21 (4) TRADE REPRESENTATIVE.—The term

22 ‘‘Trade Representative’’ means the United States

23 Trade Representative.

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