§ Lord Kennet
asked Her Majesty's Government:
Whether they consider Japan's to be a free enterprise market economy
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Reay)
Yes. Japan's is an intensely competitive enterprise economy. Its success has been based on vigorous competition among private sector companies, enhanced in recent decades by the progressive reduction of barriers to competition from abroad. We are encouraging the Japanese authorities to look to further liberalise their domestic markets and improve opportunities for imports and inward investment. We particularly emphasise the need to reduce the present high level of protection for agriculture, to continue to liberalise regulations governing the provision of financial services and to promote a more vigorous domestic competition policy.