V. ASSESSING IMPLEMENTATION OF THE MEASURES

A. Data Collection

1. The Government of Japan will provide the following data for annual reviews:

1. the number and value of new foreign vehicles sold in Japan;
2. the number and value of new foreign vehicles sold in Japan by country of export;
3. the number of new foreign vehicles sold in Japan by manufacturer;
4. the number of new foreign vehicles sold through direct franchise agreements with Japanese dealers;
5. the number of new vehicles exported to Japan from Japanese transplants; and
6. official import statistics for auto parts.

2. The Government of the United States will provide the following information for annual reviews:

1. official U.S. export statistics for motor vehicles and auto parts; and
2. other relevant national, regional, and international official statistics.

B. Objective Criteria

The assessment of the implementation of the Measures, as well as the evaluation of progress achieved, will be based on the overall consideration of the qualitative and quantitative criteria set out below. These qualitative and quantitative criteria will be considered as a set, and no one criterion will be determinative of the assessment of the Measures, or the evaluation of progress achieved. These criteria do not constitute numerical targets, but rather are to be used for the purpose of evaluating progress achieved toward the goals of the Framework and the goals of these Measures.

For purposes of this assessment, the Government of Japan and the Government of the United States are to seek and consider any available, relevant and reasonable data or information, including the data set out above, regarding the following quantitative or qualitative criteria.

Motor Vehicles

1. Qualitative Criteria

1. efforts by the Japanese vehicle manufacturers to promote open and competitive distribution systems for motor vehicles in Japan;
2. efforts of foreign vehicle manufacturers to offer competitive products in Japan under competitive terms and conditions, including with respect to price, variety of products, delivery lead time, and after-sales service; and
3. private sector actions, including AMA compliance programs, to ensure compliance with the AMA.

2. Quantitative Criteria

1. change in the number and value of new foreign motor vehicles sold in Japan in total and by country of export, and change in the number of new foreign motor vehicles sold in Japan by manufacturer; and
2. change in the number of direct franchise agreements concluded between foreign vehicle manufacturers and Japanese dealers, and the number of foreign motor vehicles sold through such dealers.

Auto Parts

1. Qualitative Criteria

1. efforts by Japanese vehicle manufacturers in Japan and their transplants to broaden suppliers' sales opportunities through design-in and supplier outreach programs, localization of R&D, and transparency in purchasing practices;
2. procurement of parts by Japanese vehicle manufacturers and Japanese transplant vehicle manufacturers without discrimination against suppliers based on their capital affiliation;
3. efforts of foreign auto parts suppliers to offer competitive products under competitive terms and conditions, including with respect to price, quality, and delivery lead time.

2. Quantitative Criteria

1. change in the value of foreign auto parts exported to and imported into Japan as measured by Japanese and foreign country official statistics, and other available data.
2. change in the extent of localization, as part of the Japanese vehicle manufacturers' globalization efforts, considering data on purchases of parts made in the United States and vehicle production by Japanese transplant vehicle manufacturers in the United States.
3. change in purchases of U.S. auto parts by Japanese transplant vehicle manufacturers in the United States.

Aftermarket Parts

1. Qualitative Criteria

1. the status of deregulation of the definition of disassembling repair, the standards for specialized certified garages, and of other deregulatory actions within the scope of the Measures regarding the auto parts aftermarket; and
2. the Government of Japan's responsiveness to complaints and requests by interested persons regarding the clarification or deregulation of the definition of disassembling repair or modification inspections.

2. Quantitative Criteria

1. change in the value and share of foreign parts purchased in Japan for aftermarket use; and
2. change in the number of specialized certified garages and designated garages.

General Qualitative Criteria

1. market conditions, including exchange rates; and
2. the implementation of all other measures of the Measures.

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