MEASURES BY THE GOVERNMENT OF JAPAN
AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA
REGARDING AUTOS AND AUTO PARTS

Dear Ambassador Kantor and Secretary Brown,

With regard to the autos and auto parts sector, I am pleased to state the following upon instructions from my Government.

I am pleased to note that following a series of consultations between the Government of Japan and the Government of the United States of America under the Framework for a New Economic Partnership established by the "Joint Statement on the Japan-United States Framework for A New Economic Partnership" of the Heads of the Governments of Japan and the United States of America on July 10, 1993 (the "Framework"), the Government of Japan and the Government of the United States of America each has decided to implement the measures in the attached document, "Measures by the Government of Japan and the Government of the United States of America Regarding Autos and Auto Parts" (the "Measures").

The Government of Japan reaffirms the principles of the Framework, including the principle that all measures of the Measures (including Sections II.A and IV.B) are to be taken on a most-favored-nation basis. In this regard, the Government of Japan is prepared to take similar measures in relation to any third country.

It is my Government's view that each Government is to take the respective measures, beginning as of the date of this letter and lasting until the end of 2000, at which time the two Governments will decide whether it is necessary to continue the Measures.

Sincerely,

Takakazu Kuriyama
Ambassador of Japan

Dear Ambassador Kuriyama:

We are pleased to receive your letter of today's date concerning the decision of the Government of Japan to implement its measures in the document attached to your letter, the "Measures by the Government of Japan and the Government of the United States Regarding Autos and Auto Parts" (the "Measures").

Following a series of consultations between the Government of Japan and the Government of the United States of America under the Framework, the Government of the United States of America has announced that it will continue to promote the export of autos and auto parts to Japan and encourage U.S. companies to pursue more actively market opportunities in Japan. In addition, the Government of the United States of America has decided to implement its measures in the Measures.

We wish to confirm that the views expressed in your letter and the Measures are shared by our Government, and that each Government is to take the respective measures beginning as of this letter and lasting until the end of 2000, at which time the two Governments will decide whether it is necessary to continue the Measures.

Sincerely,

Michael Kantor
United States Trade Representative

Ronald H. Brown
Secretary of Commerce

1. GOALS AND GENERAL POLICIES
2. MEASURES TO ENCOURAGE IMPORTS AND TO FACILITATE MARKET ACCESS FOR FOREIGN VEHICLES IN JAPAN
3. MEASURES TO EXPAND PURCHASES OF FOREIGN PARTS BY JAPANESE FIRMS IN JAPAN AND THROUGH THEIR TRANSPLANTS
4. REGULATORY REFORM BY THE GOVERNMENT OF JAPAN
5. ASSESSING IMPLEMENTATION OF THE MEASURES
6. CONSULTATIONS

• Annex A: STATUS OF PARTICULAR PARTS REPLACEMENT OPERATIONS UNDER THE DEFINITION OF DISASSEMBLING REPAIR
• Annex B: REPRESENTATIVE LIST OF AUTOMOTIVE PARTS INVOLVED IN MINOR MODIFICATIONS
• Annex C: STANDARDS AND CERTIFICATION ISSUES