Page:Special 301 Report 1995.pdf/2

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Coupled with efforts on corruption, the Administration is pursuing initiatives on transparency in procurement. These pursuits include expanded membership in the WTO Government Procurement Code, which Kantor called, "the best guarantee against discrimination in government procurement," and through further work in the SOA and APEC.

German Implementation of the 1993 Mou: This year's Title VII Report also highlights U.S. concerns with German implementation of the 1993 U.S.-EU MOU on Government Procurement, which covers the government-owned power generation utility sector. The Administration's concerns have been heightened by difficulties a U.S. firm has experienced in obtaining a German review of allegations of discrimination in a steam turbine procurement covered by the MOU.

Because of these concerns, Kantor intends to monitor German implementation of the MOU very closely to ensure that U.S. firms get a fair shake in this very important sector.

Japan Telecommunications and Medical Technology: Since the last Title VII review, the United States has concluded government procurement agreements with Japan in the telecommunications and medical technology sectors. Upon conclusion of these agreements, the United States terminated the 1994 Title VII identification of Japan in October 1994. The first set of consultations with Japan under these two agreements is scheduled to take place this summer. The United States is monitoring closely Japanese compliance with these agreements to ensure that tangible progress is achieved.

Kantor also announced that the 1994 Title VII report to Congress will include information on procurement practices of Australia, Brazil and China, in addition to Japanese procurement practices in two other sectors -- supercomputers and computers.

Finally, Ambassador Kantor noted that the sanctions first applied in 1993 against the EU for discrimination in the telecom sector continue and are being extended to the three new member states -- Austria, Finland and Sweden.

Special 301

Accomplishments Over The Past Year

Ambassador Kantor today noted the substantial progress made over this past year in improving intellectual property protection, particularly in those countries whose practices have been major IPR concerns in the past. This progress included countries that U.S. industry groups had recommended for "priority foreign country" designations this year.