Framework for a New Economic Partnership (1993–1997)

U.S. Agencies

Japan Agencies

Meeting Frequency

Context

• Established in 1993 by President Bill Clinton and Prime Minister Kiichi Miyazawa.
• Borrowed elements from the Structural Impediments Initiative (SII), which ended that year.

Goals

• Japan’s primary focus: to decrease the current account surplus, promote domestic-led economic growth, and increase market access and imports.
• The U.S. focus: to reduce the fiscal deficit, promote domestic savings, and strengthen international competitiveness.

Significance

U.S. insistence on quantifiable measures frustrated the Japanese, who viewed it as unfair “managed” trade. Talks stalled in February 1994 but resumed after Clinton threatened to make use of section 301 economic sanctions, and an agreement was finally concluded on flat glass, insurance, intellectual property, government procurement, and auto parts by the end of 1995. The talks concluded in 1997 and were not renewed.