Japan's recent tendency to conclude bilateral deals with the United States, especially in high-tech sectors such as semiconductors and automobiles, has become a main source of apprehension in the Commission, which opposes managed trade. The EU is deeply concerned that Japan applies the principle of non-discrimination to all its trading partners. It is encouraging to see that some measures of the new Japanese Cabinet seem to meet a few of the Commission's long-standing requests. These stores are an essential channel to sell EU products in Japan. The proposal to liberalize the financial services sector as well as the various proposals aimed at improving and easing market access procedures have also been welcomed by the Commission.
Structural obstacles are currently the most important barriers to exporting or investing in Japan.
The fundamental problem is the lack of effective enforcement of the existing competition laws in Japan. The EU has proposed that the Fair Trade Commission undertake studies in such sectors as insurance, distribution of chemicals, and agriculture. Some aspects of Japanese business culture are fundamentally antipathetic to the functioning of the market. The close links within the keiretsu are further cemented by cross-shareholdings, which impose a major block on foreign mergers and acquisitions. Although some signs of the weakening of keiretsu practices are being seen, it is still very hard for insurance industry outsiders to compete on the basis of cost and efficiency, since Japanese companies tend to buy their insurance services within the keiretsu .