Government Procurement
The Government of Japan has voluntarily established non-discriminatory, transparent, fair and competitive "Measures" or "Procedures" on government procurement in the following six areas, in consideration of the results of a series of Japan-U.S. consultations. These measures do not constitute "agreement" as described in the report, but are voluntary measures. The report also includes description of the NTT "Arrangement." However, the procurement under the measures introduced in July of 1999 are neither government procurement nor procurement subject to supervision of the Government of Japan, as we have repeatedly pointed out. They are procurement procedures that NTT Holding Company, NTT East and NTT West themselves adopted voluntarily.
The purpose of the measures is to provide appropriate market opportunities to domestic and foreign suppliers. However, it does not ensure an increase in volume of procurement (value nor number of procurement) from overseas including the United States.
The Government of Japan would also like to point out that it is aggressively promoting electronic filing procedures for government procurement as part of the IT initiative.
(1) Computers
The Government of Japan is faithfully implementing "Measures related to Japanese Public Sector Procurement of Computer Products and Services," and providing non-discriminatory, transparent, fair and open competition. The measures provide appropriate market opportunities for foreign products and services. In this connection, the Government of Japan would like to point out that efforts of foreign suppliers are important for improving the ratio of foreign procurement. And concerning the market share of foreign products in the private sector mentioned in the report, no supporting facts have been provided by the U.S. Government.
(2) Construction, Architecture and Engineering
In addition to WTO Agreement on Government Procurement, the Government of Japan is properly implementing the voluntarily introduced "Action Plan on Reform of the Bidding and Contracting Procedures for Public Works," therefore, the Government of Japan is of the view that the review meeting, which expired at the end of JFY 1999, is no longer necessary. Moreover, as the Government of Japan has been explained to the Government of the United States, the Government of Japan has been promptly and properly addressing to a series of many individual inquiries raised by the U.S. Government and the U.S. companies even after its expiration of the review meeting. Furthermore, the Government of Japan considers the corresponding parts describing US understanding on Japanese public works market, joint-ventures, qualification and evaluation criteria and calculation method of procurement values as inappropriate as they do not reflect its explanation and measures and constitutes a mere one-sided claim.
(3) Medical Technology
The Government of Japan is faithfully implementing "Measures related to Japanese Public Sector Procurement of Medical Technology Products and Services." As the report points out, there is active competition in this market. This is because appropriate market opportunities are provided under the measures and both domestic and foreign suppliers make aggressive effort.
(4) Satellites
The Government of Japan is implementing transparent, open and non-discriminatory procurement under the competitive procedures in compliance with "Procedures for the Procurement of Non-R&D Satellites." The "Procedures" are carried out appropriately to cover satellites defined under the "Procedures."
(5) Supercomputers
The Government of Japan is faithfully implementing "Procedures to Introduce Supercomputers." Technical requirements are also imposed appropriately in compliance with the "Procedures." The Government of Japan would like to point out that the U.S. Government has never procured any foreign made supercomputers.
(6) Telecommunications
The Government of Japan is faithfully implementing "Measures on Public Sector Procurement of Telecommunication Products and Services" and providing non-discriminatory, transparent, fair, competitive and open market opportunities. Single source tendering is applied under strict procedures. Moreover, the Government of Japan would like to point out that the U.S. Government has not provided supporting facts for the market share of foreign products in the private sector mentioned in the report.
(7) NTT procurement measures
The current measures between the two Governments regarding NTT procurement (hereinafter referred to as "the Measures") are not intended to ensure government oversight of NTT companies' procurement. The Measures are different in nature from the above-mentioned government procurement "Measures" or "Procedures" in that regard. It is also regrettable that there are other misunderstandings of facts in the report, such as that NTT Communications is described as a company under the Measures. It also has to be reminded that NTT companies are conducting their procurement in an open and transparent manner, according to the procurement procedures, which these companies have decided to adopt on a voluntary basis.
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