Bill Clinton: “Thank you. Thank you very much. Today's agreement is an important step toward a more balanced trade relationship between…”

“Thank you. Thank you very much. Today's agreement is an important step toward a more balanced trade relationship between the United States and Japan, but it also benefits the world trading system. For years we have had trade agreements that have failed to reduce our chronic trade deficits. Those agreements have not worked because they lacked a commitment to tangible results and they provided no way to measure success. This has caused resentment to build over time on both sides, threatening our vital friendship. This framework agreement we are announcing today takes a different approach. As I said in my speech at Waseda University earlier this week, we are not interested in managed trade or trade by numbers but better results from better rules of trade. This framework launches us on that road. As the Prime Minister said, we will negotiate a series of agreements under this framework, some to be completed within 6 months, the rest within a year, that will allow greater penetration of the Japanese marketplace in specific areas of the economy. And these new agreements will include specific timetables and objective criteria for measuring success. These results-oriented agreements can create bigger markets for key U.S. industries, including the automotive industry, computers, telecommunications, satellites, medical equipment, financial service, and insurance. If we are successful, we will create benefits for citizens in both the United States and Japan: more jobs and opportunities for America's workers and businesses, new choices and lower prices for Japanese consumers, and new jobs for Japanese citizens in business establishments located in Japan but owned by citizens of other countries. Again, as the Prime Minister said, this framework also includes a basic bargain. We agree that the United States will significantly cut our budget deficit, which has clearly slowed the growth of the global economy. And we will con- tinue our efforts to improve our competitive position, to be the high- quality, low-cost producer of more and more goods and services. In return, the Japanese agree to what the agree quotes as highly significant reductions in their trade surplus and increases in their imports of goods and services from the United States and other countries. In other words, both nations have made some tough choices. We should have no illusions. We announced today a framework to govern specific agreements yet to be negotiated. Negotiating those agreements will surely be difficult. But now, at least, we have agreed what the outcome of these negotiations needs to be: tangible, measurable progress. I have said for some time that the United States and Japan, the two largest economies of the world, must strengthen our friendship. Our political relationship is strong; our security relationship is firm. These trading disputes have been corrosive, and both of us are called upon to change. It is essential that we put this relationship on a footing of mutual respect and mutual responsibility. This framework is a good beginning. As the Prime Minister said, many people worked very hard on these negotiations. And before I conclude my statement, I would like to express appreciation to people on both sides. I want to thank on the American side Mr. Bo Cutter, who was our lead negotiator and is the Deputy Director of the National Economic Council; Charlene Barshefsky, the Deputy U.S. Trade Representative; Roger Altman, the Deputy Secretary of the Treasury; and Joan Spero, the Under Secretary of State. They did an excellent job. They worked many long hours with their Japanese counterparts. I also want to thank the Japanese negotiating team, and I want to say a special word of appreciation to Prime Minister Miyazawa for his leadership here at the G-7 summit and his constant attention to these bilateral negotiations while they were going on. He has shown wisdom, determination, and genuine leadership. Perhaps only I and a few others know how difficult these negotiations have been, how many late night discussions have been involved, how hard so many people have tried for our two countries to reach across the divide that has separated us on this issue. I do not believe that this day would have come to pass had it not been for Prime Minister Miyazawa, and I thank him in a very heartfelt way. I think he has done a great service today for the people of Japan, the people of the United States, and for the principle of a free world economy.”