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 every opportunity to ensure U.S. access to the German heavy electrical equipment market and establish a credible bid challenge system as required by the MOU, going so far as to limit action a year ago in the 1995 Title VII Report to expressing "substantial concern" with Germany's implementation of its international obligations. Since then, however, new developments indicate that the experiences of U.S. firms are not isolated cases and that a systemic problem exists, requiring a change in legislation or administrative measures. Identification triggers a 60-day period for consultations, and Ambassador Barshefsky confirmed that such consultations have already been requested of Germany, as required by Title VII. Ambassador Barshefsky noted that the United States "is ready to sit down with the German Government to resolve the issue and avoid further action under Title VII." She also emphasized, however, that "this is a procurement sector with a long history of discrimination against U.S. firms and we need more than a promise that problems won't recur in future procurements."

Ambassador Barshefsky indicated that the Administration made no other identifications in the 1996 Title VII Report but that the Report provides additional information on the Administration's initiatives to fight bribery and corruption in foreign procurement practices. Ambassador Barshefsky stated that the "Administration is out in front on this issue and is pressing other countries to come to grips with the trade distortions caused by bribery and corruption." In particular, the Report focuses on efforts in the WTO to launch negotiations on transparency, openness and due process in government procurement practices of all WTO Members. The Report also refers to Singapore, New Zealand and Chile as countries that have been aggressive in combating bribery and corruption in their government procurement.

Additionally, the Title VII Report provides information on procurement practices of Japan with respect to public works, supercomputers and computers; Australia with respect to information technology and telecommunications; Brazil with respect to telecommunications; and China for its across-the-board lack of transparency. Finally, the Report updates implementation of the WTO Government Procurement Agreement (GPA) and NAFTA Chapter 10.