Japan's Deregulation

Voluntary acts for better world economy and better life for Japanese consumers

Q.: How Americans view Japan's regulations?
A.: To answer this question, let us refer to the gist of submission for deregulation which were presented by the United States Government in November 1995. This submission was made in response to solicitations the Japanese Government made at home and abroad for requests on deregulation.

[GIST OF REQUESTS BY THE UNITED STATES GOVERNMENT]

1. Administrative reform, competition policy, and deregulation should be promoted in tandem.

(1) Administrative Reform in the Area of Deregulation

Since deregulation shifts much responsibility to the private sector, administrative procedures must be made more transparent. This transparency issue should be dealt with in a revised Deregulation Action Program. In particular, Japan should pursue: better access to government information, the establishment of rule/regulation-making procedures, steadfast enforcement of the Administrative Procedure Law by documentation of administrative guidance, and local administrative reform to encourage local deregulation in accordance with the Central Government's deregulation efforts.

(2) Competition Policy Competition policy is indispensable to ensure that the market functions fairly. In particular, increasing the organizational effectiveness of the Fair Trade Commission, and strict enforcement of the Act Relating to Prohibition of Private Monopoly and Maintenance of Fair Trade should be pursued.

(3) Deregulation Deregulation in the following 12 areas is necessary: agriculture, automobiles and motorcycles, construction, distribution, energy utilities and supply, insurance and financial services, investment, legal services (attorneys), medical treatment and pharmaceuticals, redemption game machines,
telecommunications, and transport.

2. The United States recognizes that the grounds for some regulations are justifiable for reasons of health, safety, etc. However, the United States deems it necessary to examine whether these regulations are wider in scope and more burdensome than is required for these legitimate aims to be achieved.

3. A considerable number of demands have been made based on Japan's March 1995 Deregulation Action Program. These demands include making construction regulations (Building Standard Law, Japanese Industrial Standards, and Japanese Agricultural Standards) more performance-based, the acceptance of overseas test results, harmonization with international standards, and transparent and speedy certification procedures.

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