cluded an agreement on medical technology with Japan on October 1, 1994, under the Framework to improve market access and transparency for U.S. medical device manufacturers in the government procurement market. The agreement also contains both a comprehensive complaint mechanism and procedures for dealing with unfair bids. The agreement and accompanying exchange of letters represent an important step forward in the ability of foreign firms to sell medical technology products and services to Japan's public sector. The agreement establishes fair and transparent procedures that must be used by national medical institutions in procuring major medical equipment and services for Japan's $2.6 billion government procurement sector. Also, for the first time, the agreement requires government hospitals in Japan to make procurement information public, regardless of value. Each hospital will publish, on an annual basis, information on the top ten medical technology products it plans to purchase during the upcoming year. Previously, this important information had not been readily available.U.S. firms are highly competitive in medical technology, and hold a global market share of 52 percent. In the Japanese market, however, the U.S. industry' share is 26 percent, reflecting the existence of substantial market access barriers in this sector. The 1994 agreement calls for the Framework goal of a "substantial" increase in access and sales of foreign competitive products and services. It specifies a set of five quantitative and five qualitative criteria to assess the implementation of this agreement, including: yearly measurement of the number of Japanese entities procuring foreign products and services; the number and value of contracts awarded each year as a result of a decrease in single tendering; and the results of reviews conducted by the procurement review board.A key element of the agreement is the requirement that procurement decisions ...
