The center of gravity for world trade has shifted over the past
twenty years to the vast markets of Asia. Since the conclusion of World War
Two the United States has maintained economic supremacy in the world,
however, as the future unfolds that position will be increasingly
challenged by China, Japan and other southeast Asian countries.  The
Mariana Islands, America's most western affiliated archipelago and  the
closest American jurisdiction to Japan and the Asian continent provides an
ideal location for United States  firms interested in serving the markets
of these nations from a U. S. base of operations in the CNMI.
          The Commonwealth is an ideal location for firms doing business
within the Pacific's Asian  rim countries. Saipan is virtually on the
doorstep of the rapidly growing economies of the principal countries of the
region. The Commonwealth's proximity to Asia places it within reasonable
distances to 1.5 billion people of Pacific rim Asian countries with a
combined gross domestic product equal to $2.8 trillion dollars. Japan alone
accounts for 11 and 70 percent respectively of the regional totals
mentioned above.  Japan's huge trade surplus of $96.6 billion has been
accompanied by a per capita income  equivalent to $19,642.-  the highest in
the world.
       The average Japanese household manages to save 16.7 percent of its
disposable income. One half of these savings have been estimated to provide
retirement, the balance to be used at some future time for education,
personal purchases and leisure activities. The average household held 13.1
million Yen ($92,900.) in a variety of savings accounts and instruments.
       By the turn of the century projections indicate that 21 percent of
all Japanese households will be headed by members of the "silver
generation" (people 65 years of age or over). While currently the average
savings for all Japanese households equals 1.5 times average annual
earnings, Japan's skyrocketing land values are making home ownership a
distant dream for many. Individual home ownership has become so expensive
that many face the prospect of a 1090 year mortgage to be passed on to a
child and perhaps even a grandchild, (The Economist Magazine, June 16,
1990).
       Japan has recently taken steps to liberalize access to its vast
domestic market by modifying tariff standards and certification, government
procurement and has opened its financial and capital market in a move
toward creating an open market.
       In order to ensure an open environment during the drafting stage of
Japanese import regulations and standards, interested foreign manufacturers
and exporters are permitted to attend and participate in any Japanese
advisory council, sub-committee or other forums for purposes of stating
their opinions relative to the impact such regulations and procedures would
have on the foreign product under review.
       For some products such as telecommunication terminal equipment,
motor vehicles, cosmetics, pharmaceuticals, medical equipment, etc., Japan
will accept product test data and clinical trials developed by designated
foreign testing organizations and will accept more test data on product
standards developed by foreign manufacturers than was the case in the past.

       A simplified notification procedure (for sanitation purposes) has
been developed for importing of such items as rice, wheat, spirits, tea,
chocolate and tableware.
       The importation of counterfeit products is monitored more closely at
the present than in the past there-by benefiting the legitimate producer.
       The Japanese Government has indicated it has plans to promote public
awareness, primarily through import fairs, for purposes of encouraging
increased purchases of imported goods.
       In terms of tariff reduction, rates are being lowered by 20 percent
on almost 2,000 dutiable items.  Included are:  menthol, instant coffee,
beer, safety glass, furniture, carpeting, skis, medical instruments,
television picture tubes, certain telecommunication and radio equipment and
many other items.
       Certainly any firm interested in the Japanese market should consider
the CNMI as a location from which to do business.

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