The U.S.-Japan Telecommunications Agreement and the impact of freer trade on the environment are the topics covered in the current issue of the International Economic Review (IER), a publication of the U.S. International Trade Commission's Office of Economics.

The IER is produced as part of the ITC's international trade monitoring program. The program's purpose is to keep the Commission informed about significant developments in international economics and trade and to maintain the Commission's readiness to provide technical information and advice to policymakers in the Congress and the executive branch.

The opinions and conclusions of the IER are those of the author and do not necessarily reflect the views of the Commission or of an individual Commissioner.

The current issue (August/September 2000) includes the following articles:

• United States-Japan Agreement on Telecommunications Access Fees to Reduce Costs and Likely Increase Competition --- On July 18, the United States and Japan reached an agreement under which Japan will reduce its telecommunications fees. The agreement is expected to result in a savings of $2 billion over two years for U.S. and other competitive carriers. It is also expected to increase access to Japan's telecommunications market.

• Measuring the Impact of Freer Trade on the Environment --- It is often thought that a more open trading system and a high level of environmental quality are conflicting objectives. Yet freer trade has multiple indirect effects on environmental quality, which could on balance be beneficial or detrimental. Recent studies which measure these effects find that overall, the impact of freer trade on the environment is likely to be small, and may be beneficial. The presence of well-designed environmental policies makes this outcome more likely.

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