Government Procurement
The Government of Japan establishes the "Measures" or "Procedures" on government procurement in the specific area, in consideration of the results of a series of Japan-US consultations. However, it must be pointed out that they do not constitute "agreements" as described in the report, but are voluntary measures. And the purpose of the measures is to provide appropriate entry opportunities to foreign suppliers, but not to ensure the result as an improvement of a level of value and number of procurements or a ratio of procurements from overseas including United States.
(1) Computers
The Government of Japan is implementing faithfully Measures related to Japanese Public Sector Procurement of Computer Products and Services, voluntary measures providing non-discriminatory, transparent and competitive entry opportunities. The Measures do not ensure the improvement of a ratio of procurements from overseas. And since the ratio of foreign products were 19.6% (FY 1996) and 22.4% (FY 1997), according to our research, U.S. assertion that the share of foreign products has been decreasing continuously from FY 1994 is incorrect.
(2) Construction, Architecture and Engineering
The Government of Japan is implementing faithfully WTO Agreement on Government Procurement, and Action Plan on reform of Bidding and Contracting Procedures for Public Works established voluntarily. The bidding and contracting procedures became more transparent, objective and competitive. And it is taking necessary measures to provide fair entry opportunities to foreign companies. The reason why the number of JV contractor members is restricted is to exclude the kind of JV which gives rise to the suspicion of a distribution of contracting opportunities and the kind of JV which hinders the effectiveness of construction because of too many contractor members.
(3) Medical Technology
The Government of Japan is implementing faithfully Measures related to Japanese Public Sector Procurement of Medical Technology Products and Services. And as a result of the Cabinet Decision adopted 17, February 1999, it became possible for local governments to adopt the Overall Greatest Value Methodology not only in the area of medical technology, but in all areas.
(4) Satellites
The Government of Japan is implementing transparent, open and non-discriminatory procurements under the competitive procedure in compliance with Procedures for the Procurement of non-R&D Satellites. And concerning the coverage of the Procedure, it is operated appropriately consistent with the definition under the Procedures.
(5) Supercomputers
The Government of Japan is implementing faithfully Procedures to Introduce Supercomputers. And the issues related to the technical requirements, the concerns raised by US in this regard are groundless since technical requirements are imposed appropriately in compliance with the Procedures. We would like to point out that the purpose of the Procedures is to provide entry opportunities to foreign suppliers, but not to ensure the result. We would also like to note the fact that US Government has not procured any supercomputer from overseas.
(6) Telecommunications
(i) NTT Arrangements
With regard to NTT's procurement procedures, problems such as non-transparency were pointed out in the report. Since NTT has been conducting an open, transparent and non-discriminatory procurement, the points raised by the government of the United States are not substantiated.
(ii) Public Sector Procurement
The Government of Japan is implementing faithfully Measures on Public Sector Procurement of Telecommunication Products and Services. As regards the single tendering, It has been decided to make effort for enforcement of more strict procedures to decrease the number of such tendering. We do not think that there exists such problem as pointed out by US side in connection with the Defense Agency's procurements because they are operated in compliance with the Measures and WTO Government Procurement Agreement.
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