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TIME: Almanac 1990
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1990 Time Magazine Compact Almanac, The (1991)(Time).iso
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time
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071089
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07108900.010
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1990-09-17
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BUSINESS, Page 46Tokyo Answers the CallFacing U.S. sanctions, Japan opens its mobile-phone market
The dispute was kindled by just one U.S. company's frustration
with a protected market niche in Japan, but the issue nearly
triggered a major trade confrontation between the two countries.
Last week Japan defused the standoff by agreeing to remove barriers
to foreign products in the lucrative Tokyo-area market for
mobile-telephone and two-way-radio services. Said U.S. Trade
Representative Carla Hills, who negotiated the pact: "The measures
should provide immediate improvements for U.S. companies in these
two high-growth segments of the Japanese telecommunications
market."
The dispute began in earnest when Illinois-based Motorola
complained to the U.S. Government last April that Japan was
reneging on part of a 1985 agreement to open up its
telecommunications market. After reviewing the accord, Hills
determined that the Japanese Ministry of Posts and
Telecommunications was requiring stricter licensing procedures for
foreign companies than for domestic competitors and would not
assign any radio frequencies for Motorola-produced equipment in the
Tokyo area. Hills declared that if the ministry did not change its
position by July 10, she would slap punitive duties on a range of
Japanese products. After ten days of talks, the two sides hammered
out an agreement that eases the two-way-radio regulations, grants
radio frequencies to Motorola's mobile phones in Tokyo and
surrounding cities, and guarantees the company access to 40% of new
two-way-radio licenses in Tokyo.
The hard-line U.S. position was prompted by the trade bill
passed by Congress last year, which compels the Trade
Representative to battle foreign protectionist barriers
aggressively. Japan's willingness to give ground last week was an
encouraging sign that the country is determined to avoid a major
blowup in forthcoming rounds of barrier-bashing talks required by
the new U.S. law.