U.S. Trade Representative Robert Zoellick said Thurs. that U.S. w...
U.S. Trade Representative Robert Zoellick said Thurs. that U.S. won’t renew 1999 procurement agreement with Japan that covers procurement practices of Nippon Telegraph & Telephone (NTT). Instead of renewing pact, which expires July 1, Zoellick said U.S. would “actively…
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monitor NTT’s procurement practices and purchases from U.S. suppliers” through information supplied by U.S. industry. He said U.S. sales to NTT under past agreements had had competitive effects on both Japan’s telecom market and U.S. telecom equipment suppliers. But he stopped short of declaring victory. “More remains to be done to achieve a fully open NTT market,” Zoellick said. “We believe the best way to pursue this goal is to continue to closely monitor NTT purchases and purchasing practices in coordination with U.S. industry.” As result, American Electronics Assn. (AeA) and Telecommunications Industry Assn. (TIA) said Thurs. they planned to “vigorously” monitor NTT procurement practices. AeA and TIA said they were undertaking quarterly tracking of NTT’s total equipment purchases. “This recognition of the agreement’s expiration date does not signify overall industry satisfaction with NTT’s procurement practices or with the share of non-Japanese origin procurement in NTT’s total equipment purchases,” groups said. Since 1999 agreement was signed, groups said U.S. suppliers had seen sales increase in certain product areas, but “the overall results do not equal the level of increased sales U.S. companies have seen for their equipment in the Japanese private market or other regions of the world.” NTT, which in 1999 was restructured into 2 local companies and one long distance provider, still is 46% owned by Japanese govt., its largest shareowner. U.S. and Japan had reached 2-year equipment supply agreement that year, which was one in series of renewals of previous agreements, after U.S. negotiators had persuaded Japan to allow continued govt. monitoring of streamlined NTT procurement practices. Pact covered NTT purchases from foreign telecom equipment manufacturers.