Structural Impediments Initiative (1989–1993)

U.S. Agencies

U.S. Trade Representative
Department of Commerce
Department of State
Executive Office of the President
Department of Justice

Japan Agencies

Ministry of International Trade and Industry
Ministry of Finance
Ministry of Foreign Affairs
Economic Planning Agency

Meeting Frequency

The subcabinet-level group met 6 times a year. Working groups met ad hoc.

Context

Launched in 1989 amid serious trade frictions.
Managed by a joint interagency working group at the behest of President George H. W. Bush and Prime Minister Sosuke Uno.

Goals

To address perceived impediments to bilateral trade and the balance of payments in a forum setting without triggering U.S. retaliatory measures such as those outlined in section 301 of the 1974 Trade Act.

Significance

SII tried to tackle some of the most serious trade issues between the U.S. and Japan. The U.S. wanted Japan to address exclusionary business practices, its distribution system, its land use system, and price mechanisms, among other aspects of its economy. Japan requested the U.S. balance its budget, increase savings and investment, incentivize firms to emphasize long-term growth, strengthen education, and enhance competitiveness. SII is credited with pressuring Japan to change the Large-Scale Retail Store Law by 1990, and later repeal it in 1998. SII ran until 1993 and was replaced by the U.S.-Japan Framework for a New Economic Partnership.