Remarks With Prime Minister Kiichi Miyazawa of Japan in Tokyo

Prime Minister Miyazawa. President Clinton and I were able to agree upon the establishment of the Japan-U.S.. framework for a new economic partnership. This agreement comes at a time to coincide with the Tokyo summit, which symbolizes the cooperation and coordination between the G-7 partners in the international society in the post-cold-war era.

This framework is something that President Clinton and I agreed to establish in our bilateral summit meeting held in last April. President Clinton and I share the views that establishing such a new framework and stabilizing Japan-U.S.. economic relations from the medium- to long-term perspective and managing our bilateral economic relationship constructively are extremely important not only to the enhancement of the national life of our two countries but also to the maintenance and strengthening of the free trading system of the world.

The negotiating teams of our two countries, based on those perspectives, the negotiating teams of both countries made serious negotiations both in Washington and Tokyo. And they made further negotiations on the occasion of President Clinton's visit, and subsequently, they have succeeded in reaching an agreement.

Let me share you the gist of this framework in a few words. This framework aims at facilitating frank and broad exchange of views between our two countries, and aims at resolving the economic issues between our two countries based on the spirit of joint exercise between the two largest free market economies that are the United States and Japan, and also aims at advancing our cooperation on issues such as environment and technology which have significance. More concretely, under this framework we will operate on the principles of two-way dialog and limiting our consultations to matters within the scope and responsibility of government.

Under those principles, we will deal with the following: to Japan's efforts at reducing the current account surplus and the reduction of the American Federal budget deficit, in the macroeconomic area. In sectoral and structural area we will deal with government procurement and deregulation, et cetera. And on our common task for cooperation on global perspective, we will deal with issues such as environment and technology. And we will announce the achievements regarding these issues at our biannual bilateral summit meeting.

Furthermore, let me share with you that Japan intends to take measures on its own initiative to further expand its market access, to enhance its transparency, and promote deregulation, all along with our objective to achieve better quality of life. And I expect and hope that in the United States as well the U.S.. Government will make progress in reducing the Federal budget deficit and in strengthening international competitiveness.

Through the efforts of our two governments, we would like to contribute to the strengthening of Japan-U.S.. economic relations and also to contribute to the development of world economy in the future.

Thank you, Mr. Clinton.

The President. Thank you. Thank you very much. Today's agreement is an important step toward a more balanced trade relationship between the United States and Japan, but it also benefits the world trading system.

For years we have had trade agreements that have failed to reduce our chronic trade deficits. Those agreements have not worked because they lacked a commitment to tangible results and they provided no way to measure success. This has caused resentment to build over time on both sides, threatening our vital friendship.

This framework agreement we are announcing today takes a different approach. As I said in my speech at Waseda University earlier this week, we are not interested in managed trade or trade by numbers but better results from better rules of trade. This framework launches us on that road.

As the Prime Minister said, we will negotiate a series of agreements under this framework, some to be completed within 6 months, the rest within a year, that will allow greater penetration of the Japanese marketplace in specific areas of the economy. And these new agreements will include specific timetables and objective criteria for measuring success. These results-oriented agreements can create bigger markets for key U.S.. industries, including the automotive industry, computers, telecommunications, satellites, medical equipment, financial service, and insurance. If we are successful, we will create benefits for citizens in both the United States and Japan: more jobs and opportunities for America's workers and businesses, new choices and lower prices for Japanese consumers, and new jobs for Japanese citizens in business establishments located in Japan but owned by citizens of other countries.

Again, as the Prime Minister said, this framework also includes a basic bargain. We agree that the United States will significantly cut our budget deficit, which has clearly slowed the growth of the global economy. And we will continue our efforts to improve our competitive position, to be the high-quality, low-cost producer of more and more goods and services. In return, the Japanese agree to what the agree quotes as highly significant reductions in their trade surplus and increases in their imports of goods and services from the United States and other countries. In other words, both nations have made some tough choices.

We should have no illusions. We announced today a framework to govern specific agreements yet to be negotiated. Negotiating those agreements will surely be difficult. But now, at least, we have agreed what the outcome of these negotiations needs to be: tangible, measurable progress.

I have said for some time that the United States and Japan, the two largest economies of the world, must strengthen our friendship. Our political relationship is strong; our security relationship is firm. These trading disputes have been corrosive, and both of us are called upon to change. It is essential that we put this relationship on a footing of mutual respect and mutual responsibility. This framework is a good beginning.

As the Prime Minister said, many people worked very hard on these negotiations. And before I conclude my statement, I would like to express appreciation to people on both sides. I want to thank on the American side Mr. Bo Cutter, who was our lead negotiator and is the Deputy Director of the National Economic Council; Charlene Barshefsky, the Deputy U.S.. Trade Representative; Roger Altman, the Deputy Secretary of the Treasury; and Joan Spero, the Under Secretary of State. They did an excellent job. They worked many long hours with their Japanese counterparts. I also want to thank the Japanese negotiating team, and I want to say a special word of appreciation to Prime Minister Miyazawa for his leadership here at the G-7 summit and his constant attention to these bilateral negotiations while they were going on. He has shown wisdom, determination, and genuine leadership.

Perhaps only I and a few others know how difficult these negotiations have been, how many late night discussions have been involved, how hard so many people have tried for our two countries to reach across the divide that has separated us on this issue. I do not believe that this day would have come to pass had it not been for Prime Minister Miyazawa, and I thank him in a very heartfelt way. I think he has done a great service today for the people of Japan, the people of the United States, and for the principle of a free world economy.