Japan-U.S. consultations on the semiconductor issue have reached a settlement. I would like to express my appreciation to the great efforts made by Ambassador Barshefsky, Acting U.S. Trade Representative and the U.S. negotiating team in finding a solution to this issue. I would also like to thank the citizens of Vancouver for providing such a beautiful venue for our negotiations.

(Note) "Joint Statement by the Government of the United States and the Government of Japan Concerning Semiconductors" will soon be issued.

These consultations between Japan and the United States sought to explore how to promote a new form of international cooperation regarding the semiconductor industry and trade, given the fact that the Semiconductor Arrangement, which had continued over the past 10 years has expired on July 31 of this year. As a result, we have been able to put an end to a system managing trade by reviewing market share, taking into account numerical targets. I am truly pleased to note that we have created a multilateral framework of cooperation that is appropriate for the new era for the world semiconductor industry to address the common challenges that they face. I am confident that we have been able to reach an outcome that will be welcomed not only by the citizens of our two countries, but by the international community as well.

More specifically, it has been agreed that Japan and the United States will call upon the EU and other countries to establish the Global Governmental Forum t o discuss, at the government level, policy issues regarding the semiconductor industry and trade. It has also been agreed to establish the Semiconductor Council to promote industrial cooperation by the private sector. It is my hope that this new mechanism will function effectively for the healthy development of the semiconductor industry in coming years.

With the imminent advent of the Information Society, the semiconductor industry has an indispensable role to play for the economies of all nations, all regions and the entire global economy. With this agreement, I hope that international cooperation both at the government and industry level will be promoted between Japan and the U.S., and among all countries concerned for an even greater development of the semiconductor industry and trade.

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