[Federal Register Volume 60, Number 130 (Friday, July 7, 1995)]
[Notices]
[Pages 35447-35448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16742]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-99]
Initiation of Investigation Pursuant to Section 302 Concerning
Barriers to Access to the Japanese Market for Consumer Photographic
Film and Paper; Request for Public Comment
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of initiation of investigation under section 302(a) of
the Trade Act of 1974, as amended (19 U.S.C. 2412(a)), and request for
written comments.
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SUMMARY: The United States Trade Representative (USTR) has initiated an
investigation under section 302(a) of the Trade Act of 1974, as amended
(the Trade Act), with respect to certain acts, policies and practices
of the Government of Japan with respect to barriers to access to the
Japanese market for consumer photographic film and paper. The USTR
invites written comments from the public on the matters being
investigated and the determinations to be made under section 304 of the
Trade Act.
DATES: This investigation was initiated on July 2, 1995. Written
comments from the public are due on or before noon on August 8, 1995.
ADDRESS: Office of the United States Trade Representative, 600 17th
Street NW., Washington, DC 20508.
FOR FURTHER INFORMATION CONTACT:Byron Sigel, Director for Japanese
Affairs, (202) 395-5070, or Irving Williamson, Deputy General Counsel,
(202) 395-3432.
SUPPLEMENTARY INFORMATION: On May 18, 1995, the Eastman Kodak Company
filed a petition pursuant to section 302(a) of the Trade Act alleging
that certain acts, policies and practices of Japan deny access to the
market for photographic film and paper in Japan and are unjustifiable,
unreasonable and discriminatory and actionable under section 301. In
particular, the petition alleges that Japan maintained formal
restrictions on inward investment prior to 1976, in violation of the
U.S.-Japan Friendship Commerce and Navigation Treaty and the
Organization for Economic Cooperation and Development's (OECD) Code of
Liberalization of Capital Movements. The petition further alleges that
the Government of Japan instituted trade and capital liberalization
counter-measures to maintain the effects of investment and trade
restrictions after they were formally lifted. The following
[[Page 35448]]
government-directed liberalization countermeasures are claimed to have
affected Kodak: Ministry of International Trade and Industry (MITI)
administrative guidance to domestic banks to increase shareholdings,
MITI administrative guidance to restructure the distribution system,
and MITI intervention with the Japan Fair Trade Commission (JFTC) on
behalf of Japan's photographic materials producers. The Japanese
toleration of the anticompetitive market structure resulting from the
countermeasures is alleged to be inconsistent with Japan's obligations
under the OECD's Declaration on International and Multinational
Investment and Multinational Enterprises (``National Treatment
Instrument''). The foregoing acts are alleged to be justifiable under
section 301.
The petition also alleges that MITI and the JFTC have tolerated
systematic anticompetitive practices and have actively encouraged and
reinforced them and that this toleration is unreasonable and
discriminatory under section 301. In particular, the petition alleges
that:
(a) Fuji has established a distribution system that utilizes
various anticompetitive elements as a mutually reinforcing means to
exclude Kodak from the market;
(b) The following Fuji practices are inconsistent with Japan's
Antimonopoly Law: (1) Resale price maintenance; (2) vertical non-price
restraints such as exclusionary dealing arrangements; (3) dealings on
restrictive terms; (4) refusals to deal; and (5) group boycotts;
(c) The JFTC has failed to enforce Japan's Antimonopoly Law (AML)
against Fuji's anticompetitive practices;
(d) The JFTC actively strengthens the system by enforcing ``Fair
Competition Codes'' in a manner which discourages discount and
promotional sales;
(e) MITI tolerated theses anticompetitive practices; and
(f) The toleration is egregious in light of numerous Japanese
government policy initiatives and international undertakings to
increase AML enforcement.
The petition further alleges that the barriers cited in the
petition pose a burden or restriction on U.S. commerce because, by
restricting Kodak's access to Japan's photographic film and paper
markets, they have caused Kodak to forego export revenue and have
created a profit sanctuary in Japan for Fuji which significantly
affects the global competition between Kodak and Fuji.
Section 302(a) of the Trade Act authorizes the USTR to initiate an
investigation under chapter 1 of Title III of the Trade Act (commonly
referred to as ``section 301''), in response to the filing of a
petition pursuant to section 302(a)(1). Matters actionable under
section 301 include, inter alia, acts, policies, and practices of a
foreign country that are unjustifiable, unreasonable or discriminatory
and burden or restrict U.S. commerce. An act, policy or practice is
unjustifiable if it is in violation of, or inconsistent with, the
international legal rights of the United States. An act, policy or
practice is unreasonable if the act, policy or practice, while not
necessarily in violation of, or inconsistent with, the international
legal rights of the United States, is otherwise unfair or inequitable.
Unreasonable acts, policies or practices include, inter alia, denial of
fair and equitable market opportunities, including the toleration by a
foreign government of systematic anticompetitive activities by
enterprises or among enterprises in the foreign country that have the
effect of restricting, on a basis that is inconsistent with commercial
considerations, access of United States goods or services to a foreign
market.
On July 2, 1995, the USTR determined that an investigation should
be initiated to determine whether certain acts, policies or practices
of the Government of Japan with respect to access to the Japanese
market for consumer photographic film and paper are actionable under
section 301.
Consultations
Pursuant to section 303(a) of the Trade Act, the USTR has requested
consultations with the Government of Japan concerning the issues under
investigation. USTR will seek information and advice from the
appropriate representatives provided for under section 135 of the Trade
Act in preparing the U.S. presentations for such consultations.
Public Comment: Requirements for Submissions
Interested persons are invited to submit written comments
concerning the issues raised in the petition and any other submissions
to USTR in this investigation. In particular, comments are invited
regarding (i) the acts, policies and practices of the Government of
Japan that are the subject of this investigation; (ii) the amount of
burden or restriction on U.S. commerce caused by these acts, policies
and practices; (iii) the determinations required under section 304 of
the Trade Act; and (iv) appropriate action under section 301 which
could be taken in response.
Comments must be filed in accordance with the requirements set
forth in 15 CFR 2006.8(b) (55 FR 20593) and are due no later than noon
on Tuesday, August 8, 1995. Comments must be in English and provided in
twenty copies to: Sybia Harrison, Staff Assistant to the section 301
Committee, Room 223, Office of the United States Trade Representative,
600 17th Street, NW., Washington, DC 20508.
Comments will be placed in a file (Docket 301-99) open to public
inspection pursuant to 15 CFR 2006.13, except confidential business
information exempt from public inspection in accordance with 15 CFR
2006.15. Confidential business information submitted in accordance with
15 CFR 2006.15 must be clearly marked ``BUSINESS CONFIDENTIAL'' in a
contrasting color ink at the top of each page on each of 20 copies, and
must be accompanied by a nonconfidential summary of the confidential
information. The nonconfidential summary shall be placed in the file
that is open to public inspection.
Copies of the public version of the petition and other relevant
documents are available for public inspection in the USTR Reading Room.
An appointment to review the docket (Docket No. 301-99) may be made by
contacting Brenda Webb at (202) 395-6186. The USTR Reading Room is open
to the public from 10 a.m. to 12 noon and 1 p.m. to 4 p.m., Monday
through Friday, and is located in Room 101, Office of the United States
Trade Representative, 600 17th Street NW., Washington, DC 20508.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 95-16742 Filed 7-6-95; 8:45 am]
BILLING CODE 3190-01-M
