WASHINGTON-The United States and Japan are at a standoff over renewal of the 1980 Nippon Telegraph and Telephone procurement agreement, which governs fair telecom procurement practice by the Japanese government. The NTT pact between the U.S. and Japan is scheduled to end on July 1.
U.S. trade officials say progress in enforcing the accord has been gradual and limited. Japan argues the U.S. government has no right to meddle in NTT anymore because NTT is privatized.
The administration replies that NTT still is two-thirds owned by the Japanese government.
A prolonged dispute could keep U.S. wireless firms from making further inroads into Japan’s $35 billion telecom market.
