apply for a place on the watch list. Problems in gaining timely and effective patent protection might be identified at an early stage and addressed through government-to-government consultations. Serious delays or limitations in protection could be addressed through trade actions. This program might be linked to efforts to expand opportunities for U.S. industry, particularly small and medium companies, to access Japanese markets by making information about intellectual property rights in Japan available to companies.

  1. The United States should explore areas for cooperation and coordination in trade policy and in other areas with Japan and other countries to promote more open access to markets and economies in developing countries. As more developing countries recognize the value of foreign direct investment in raising their technology levels, the United States and Japan can have a greater impact when working together to encourage adherence to multilateral rules, and to discourage national approaches that feature focused technology transfer as a condition for market participation. The United States and Japan should also work to develop common approaches to emerging issues on the multilateral agenda, such as trade and the environment.

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