The United States–Japan Advisory Commission was jointly established in May 1983 by then President Reagan and then Prime Minister Nakasone to review issues in the bilateral relationship from a long-term perspective and to make recommendations on the conduct of the relationship. Seven leading private citizens from each country were appointed to serve on the Commission, including the late Nobuhiko Ushiba, former Ambassador to the United States, and David Packard, Chairman of Hewlett-Packard Co., who served as co-chairs. JCIE was asked to serve as its secretariat, and Tadashi Yamamoto, President of JCIE, was appointed Japanese Executive Director.

From 1983 to 1984, the Commission convened a total of five times in Japan and the United States for consultations and the drafting of its report. Several joint papers were commissioned to provide expert advice on key issues in the relationship. The final report, titled “Challenges and Opportunities in United States and Japan Relations,” was submitted to the President and Prime Minister on September 17, 1984. The Commission reviewed bilateral economic issues demanding urgent attention for such issues as the trade imbalance, the exchange rate question, foreign investment, industrial policy, technology flow, agricultural trade, and political and security questions. Among its many recommendations to both governments and private sectors, the Commission urged Japan to develop an active policy of liberalizing market access rather than simply responding to foreign complaints. The report received wide press coverage, especially in Japan, and its recommendations generated vigorous public debate.