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Progress has been made in the last year on government procurement, particularly with the completion of the new GATT Government Procurement Code and the conclusion of an historic U.S.-EU agreement as part of the new Code. The Administration expects to build on this progress over the next year by seeking to expand membership in the Code and further open government procurement markets in all countries.

The U.S. is disappointed, however, with the status of the U.S.-Japan Framework negotiations and the failure of Japan to move rapidly to open its government procurement markets in key sectors. The U.S. expects action soon from the Government of Japan in these sectors and will continue to work with the EU to seek a comprehensive resolution to the telecommunications procurement problem.

The Title VII announcement includes the following elements:

 USTR will conduct an early review of the status of Japanese discrimination in government procurement related to the telecommunications and medical technology sectors to determine whether to identify Japan under Title VII in 60 days (no later than 30 June 1994).

USTR will maintain the sanctions imposed against the EU on May 28, 1993 for EU discrimination with respect to telecommunications equipment.

USTR will report to Congress information on the following discriminatory procurement practices, which do not meet the criteria for identification under Title VII, but are of concern: 