Secretary Mosbacher leads high-level trade mission to Japan; 'Japan Ccorporate Program' to increase U.S. exports is launched - U.S. Secretary of Commerce Robert A. Mosbacher

Business America, May 6, 1991 by Laureen Daly

Secretary of Commerce Robert A. Mosbacher led 14 chief executives on a trade mission to Tokyo, April 2 through 5, to launch the Japan Corporate Program, a new Commerce Department program to help increase U.S. exports to Japan.

One of the mission highlights was an audience with Prime Minister Toshiki Kaifu, the first time a sitting Prime Minister has ever met with a trade mission. The U.S. executives met with the Prime Minister on the eve of his summit meeting with President Bush in Newport Beach, Calif., where the two leaders were scheduled to discuss trade issues. The heightened interest in trade issues in Tokyo contributed to interest in the Japan Corporate Program mission.

"Their mission is important not only for the companies present," Secretary Mosbacher said at a press conference in Tokyo, "but for the entire business community of the United States." The Japan Corporate Program is designed to track U.S. companies that are competing in the Japanese market in order to create examples of successful marketing and to identify barriers. The Program is also intended to have a positive influence on both Japan's perception of American firms' commitment to the Japanese market and U.S. business' perception about the prospects for entering the Japanese market.

"In the United States, I think a lot of people think that things in Japan were the way that they might have been five to ten years ago. We see a significant change. We'd like to help the Commerce Department and the Japanese government and the Japanese industry convince the people in the United States, in particular, that there are opportunities here," said Tim Timken, Chief Executive Officer, The Timken Company.

The Commerce Department selected 20 companies that are representative of other U.S. firms entering or developing the Japanese market to participate in this initial pilot project. The companies reflect a cross-section of small, medium, and large firms and represent a variety of industries and geographic areas. Some are new to Japan and some already have experience there. The firms were chosen based on high export potential of their products and services in Japan, commitment to exporting, and financial wherewithal to make the necessary long-term investment in marketing in Japan.

"These companies are really representative of all the companies in the United States," Secretary Mosbacher said. "They want to sell to the Japanese and to give Japan the chance to demonstrate how open its markets are. "

The progress of the companies will be closely documented and will be used to identify and assist in removing barriers to U.S. products. The Commerce Department intends that the 20 firms selected for the Program will serve as prototypes for other U.S. firms desiring to increase their exports to Japan. Through the Corporate Program, the Department also will increase its knowledge of what is necessary to compete in Japan and thus will be able to improve the counseling it provides to U.S. firms. In this way, the benefits of the Program will extend well beyond the original 20 companies selected to participate.

The Japan Corporate Program was created with the understanding that successful penetration of the Japanese market requires a long-term commitment. "Our delegation is an excellent group of American industry leaders who want to do business in Japan," Secretary Mosbacher said. "These companies are ready, willing and able to be here for the long term."

Each company in the Program has made a minimum five-year commitment. A participation agreement between the firm and the Department outlines the responsibilities of each party. The chief executives of each company must arrange a minimum of two visits a year to Japan, with other high-level executives making additional trips. The companies must publish product literature in Japanese, modify products to suit Japanese customers, and provide after-sales service and maintenance in Japan. The companies will also participate in at least one trade promotion event in Japan each year.

The Commerce Department will offer the firms tailored market information, personalized counseling and assistance, and advice on other issues that arise during the course of the Program. Each company is assigned an industry specialist, a mentor," who serves as the main point of contact for the company in Washington and provides guidance and information. The mentor marshalls the export promotion and trade services from all parts of the government. The company also has an assigned contact in the Commercial Section of the U.S. Embassy in Tokyo.

The 20 companies in the Japan Corporate Program were chosen from over 120 applicants. "All the companies not selected were contacted after the decision and offered the same level of assistance we'll be providing to the 20 firms," said J. Michael Farren, Under Secretary for international Trade. "They may not have a spotlight shining on them, but we are just as interested in their efforts to penetrate the Japanese market and they will receive all the help and attention the federal government has to offer."