Kodak CEO urges Japan's government to negotiate film trade case with U.S.

TEMPE, Ariz.--(BUSINESS WIRE)--Feb. 21--Eastman Kodak Company's CEO labeled as "unprecedented" the Government of Japan's refusal to discuss with the U.S. Government a market access case filed by Kodak under section 301 of U.S. Trade Law and subsequently accepted by the U.S. Government.

Fisher made the remarks here at Arizona State University as he accepted the University's "Executive of the Year" Award, granted in recognition of his achievements as a global business leader who has made a lasting contribution to American business and the economy.

Fisher used the occasion to illustrate the current state of trade relations between Japan and the U.S. In July, the U.S. Trade Representative accepted Kodak's market access petition and asked for consultations with the Government of Japan. Since then, the Government of Japan has refused to discuss the case, calling it a private matter.

"This is unprecedented behavior for this stage of a trade access case and reflects an unacceptable denial of the facts the United States Government has laid out," Fisher said. "Japan's refusal to negotiate has very broad ramifications that go beyond this case." He made the following observations:

- Japan is testing the resolve of the U.S. Government to deal effectively with market access issues. If successful, Japan will redefine the nature of the bilateral relationship between the two nations.

- Kodak's case has been termed the "best documented" market access case ever. If it is not satisfactorily resolved, no other U.S. industry can hope to be successful in removing trade barriers in Japan.

- If the U.S. fails to negotiate a successful conclusion, it raises doubts about the viability of Section 301 as a part of U.S. Trade Law.

Fisher pointed out that this hard-line attitude need not continue. "Japan's political leadership has for years been stressing the need for deregulation and greater competition in its market," he said. "All Kodak is seeking is for Japan to adhere to its own laws and the obligations it has made in past trade agreements."

"Kodak's goal is resolution -- not retaliation or artificial quotas," Fisher said. "We know we have competitive products to sell... if only consumers (in Japan) had access to them."

Finally, Fisher pointed to the recent industry-wide launch of the new advanced photographic system as an illustration of successful collaboration between Japanese companies and U.S. industry. That product, heralded as the greatest photographic advance in 30 years, was developed by Kodak and four leading Japanese photographic companies. Although the companies collaborated on the creation of the technological standards, they remain competitors in the marketplace.

"There is no reason that our two countries cannot agree to cooperate more fully on trade issues, while maintaining a healthy economic rivalry," Fisher said.

Editor's Note: For additional information about Kodak, visit our web site on the Internet at: http://www.kodak.com/

CONTACT: James Blamphin Page Gardner

Eastman Kodak Company The Fratelli Group

Phone: [phone] Phone: [phone]

Fax: [phone]