The Japan External Trade Organization (JETRO) released a newsletter today focusing on current foreign direct investment (FDI), mergers and acquisitions (M&A), deregulation and other economic trends in Japan. A summary is posted below:

The Critical Role of Foreign Direct Investment (FDI)

The Japanese government has encouraged FDI for many years as a means to alleviate pressures arising from economic imbalances with its key trading partners. Over recent years, however, there has been a growing realization of the vital role that FDI plays in increasing the competitiveness of Japan's domestic economy.

Japan is Committed to Initiating Dramatic Changes by the Year 2001

In 1998, the Japanese government will accelerate the development and implementation of economic reform initiatives adopted in 1997 and highlighted within the "Action Plan for Economic Structure Reform." This will involve a wide range of economic policy reforms designed to dramatically transform Japan's regulatory infrastructure by the year 2001.

FDI is Essential to Drive Reforms at the Firm Level

While policy reforms will be essential to address the impediments that contribute to Japan's high-cost structure, increased FDI is critical to generate initiatives on the firm- and industry-level. This will help Japan to restructure and re-energize its domestic economy for maximum benefit and value to business and consumers.

The complete contents of JETRO's Focus: Foreign Direct Investment Newsletter can be viewed at its internet web site at: http://www.jetro.org/newyork/press-release/pres9802.html .

To obtain a hard copy of this newsletter and additional information on FDI and M&A trends in Japan or the Structural Reform Program of the Japanese Government, please contact KWR International or JETRO's New York office as indicated below.

Focus: Foreign Direct Investment is published and disseminated by KWR International, Inc. 140 West End Avenue, New York, NY 10023, Tel: 212-799-4294, Fax: 212-799-0517, E-mail:kwrintl@kwrintl.com, which is registered on behalf of JETRO New York, 1221 Avenue of the Americas, New York, NY 10020, which is registered as an agent of the Japan External Trade Organization, Tokyo, Japan. Additional information is available at the Department of Justice, Washington, D.C.

CONTACT: JETRO New York
Toshinaga Hirai/John Daly
Phone: 212/819-7762
Fax: 212/819-7781
E-mail:inquiry@newyork.jetro.org
or
KWR International Inc.
Keith W. Rabin
Phone: 212/799-4294
Fax: 212/799-0517
E-mail:kwrintl@kwrintl.com