deregulation

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

U.S. pressured Japan into easing regulations in construction industry

Akahata found that Japan in 1998 revised the Building Standards Law under pressure from the United States as well as Japan's business circles and construction industry lobbying for allowing the private sector to undertake checking the safety of buildings.

This revision of the law made it easy to falsify quake-resistance data, leading to a major scandal.

It all started with the February 24, 1996 Japan-U.S. Summit meeting. Then Prime Minister Hashimoto Ryutaro promised U.S. President Bill Clinton to "ease regulations" in order to pave the way for more imports of housing and building materials from the United States.

The U.S. government in its annual "Regulatory Reform Proposals" kept calling on Japan to revise the Building Standards Law to liberalize construction methods and building materials.

The Japan Business Federation (Nippon Keidanren) also demanded that the government "correct the high-cost structure by easing or abolishing regulations, introducing the principle of market competition for the public sector, allowing entry for the private sector, and privatizing government enterprises." The construction industry sought "deregulation" to reduce costs. Major general contractor construction companies, real-estate companies, and homebuilders looked to the "rationalization of building inspections."

In July 1998, the Building Standards Law was eventually revised as desired by the United States and the business circles.

The Japanese Communist Party was the only party that opposed adverse revisions of the law along with the Japan Federation of Bar Associations on the grounds that they would abandon administrative responsibility and disregard the public safety.
- Akahata, December 19, 2005