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International Relations of the Asia-Pacific
Still bilateral after all these years: US–Japan trade negotiations in telecommunications
by Eiji Kawabata
Abstract
Telecommunications is a leading industry that occupies a significant part of the contemporary economy and impacts economic development considerably. Since the 1980s, three major trade disputes in telecommunications – the NTT procurement, MOSS/Motorola, and NTT interconnection charge disputes – have developed between the Japanese and US governments. In responding to US pressures, the Ministry of Posts and Telecommunications (MPT) has generally been receptive to US demands and willing to contain negotiations to a bilateral format, unlike the Ministry of International Trade and Industry, which has become resistant to US pressures and active in utilizing multilateral arrangements. This paper shows that explicit government involvement in the industry concerned, combined with strong US pursuit of negotiations, made it difficult for MPT to resist US pressure and resulted in its enactment of measures conciliatory toward the United States. These findings are then applied to brief analyses of other trade disputes to show the generalizability of the approach.