I. GOALS AND GENERAL POLICIES

1. The goals of the Framework for A New Economic Partnership (the "Framework") established by the "Joint Statement on the Japan-United States Framework for A New Economic Partnership" of the Heads of Governments of Japan and the United States of America (the "United States") on July 10, 1993 are to deal with structural and sectoral issues in order substantially to increase access and sales of competitive foreign goods and services through market-opening and macroeconomic measures; to increase investment; to promote international competitiveness; and to enhance bilateral economic cooperation between the United States and Japan.
2. To accomplish these goals with respect to the Japanese autos and auto parts sector, the Government of Japan and the Government of the United States each has decided to implement the measures contained in this document, "Measures by the Government of Japan and the Government of the United States of America Regarding Autos and Auto Parts" (the "Measures") with the objective of achieving significantly expanded sales opportunities to result in a significant expansion of purchases of foreign parts by Japanese firms in Japan and through their transplants, as well as removing problems which affect market access, and encouraging imports of foreign autos and auto parts in Japan.
3. All measures described in this document (including measures related to changes in regulations) are to be taken consistent with laws and regulations applicable to each country and international law.
4. The Government of Japan and the Government of the United States affirm the principle that vehicle manufacturers, auto parts suppliers and vehicle dealers should deal with suppliers based on the principles of free and open competition without adverse discrimination based on capital affiliation.
5. The Government of Japan and the Government of the United States reaffirm 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 countries.