Report of the OTO Advisory Council (April 12, 1993)

4-(2) Relaxing restrictions on Gaikokuho-Jimu-Bengoshi (GJB) practicing in Japan

1. Complainant: the EC Committee Representative, the European Business Council

2. Ministry concerned: Ministry of Justice

3. Complaint:

Person who is qualified to become a foreign lawyer may, after obtaining approval from the Minister of Justice and registering with the Japan Federation of Bar Associations, be recognized as GJB authorized to carry out certain legal work pertaining to foreign law, but they are not allowed to hire Japanese lawyers or to practice law jointly with Japanese partners.

The complainants believe that the current restrictions on GJB are overly strict and that as the volume of work involving both Japanese and foreign law increases, restrictions should be relaxed as described below to permit more efficient processing and offer better service.

1) Allow foreign lawyers to hire Japanese lawyers
2) Allow joint practices between foreign lawyers and Japanese lawyers
3) Eliminate the requirement of five years' experience practicing law
4) Allow foreign lawyers to use the name of the law firm they are associated with in their home countries directly in the name of GJB offices in Japan
5) Allow foreign lawyers to serve as representatives of parties in arbitration procedures for international commercial affairs

4. Results of deliberation:

With the globalization of world trade and increasing interdependence in trade and investment, Japan needs to review its systems and restrictions to harmonize them with those of the international community. Legal services are no exception

Corporate activities have also become more international in scope, and legal matters involving both Japanese and foreign law will continue to increase. It will thus be necessary to meet user needs for better service by diversifying the types of legal services available and promoting competition.

Negotiations over the complaint in question between Japan and the U.S. and Japan and the EC have been going on for a long time, but substantial differences of opinion persist. Since there is no prospect of a solution in sight, this creates the impression that the Japanese market is closed.

In order to establish harmonious trade relations with other countries, it is very important for Japan, being the only major industrialized country with a trade surplus, to take more active market opening measures and to change perceptions that domestic markets are closed.

In the Study Committee on Foreign Lawyers Issue, the Justice Ministry and the Japan Federation of Bar Associations are currently reviewing ways of dealing with the complaint submitted, since this affects the Japanese legal system. Given Japan's position in the international community, however, logical conclusion acceptable to the international community which way includes the change of current law must be reached as soon as possible.

Government decision (May 27, 1993)

Restrictions on Gaikokuho-Jimu-Bengoshi (G. J. B) practicing in Japan should be examined by the "Study Committee on Foreign Lawyers Issue" and a logical conclusion acceptable to the international community should be reached as soon as possible.