U.S. Pushing For Breakthrough In Auto Talks
The Clinton administration insisted Tuesday there must be a breakthrough this week to resolve America’s biggest trade headache with Japan. But the atmosphere coming into the latest round of auto negotiations has been decidedly chilly.
The U.S. side, frustrated that the talks have made so little progress after nearly two years of bargaining, has been hinting broadly that it is prepared to roll out record-setting trade sanctions against Japan if there is no headway soon.
The Japanese, already unhappy because the administration has done so little to brake the precipitous drop in the U.S. dollar, are complaining of high-handed U.S. tactics. One official even complained last week that America’s ultimate economic goal was to make his countrymen slaves.
Japanese Transport Minister Shizuka Kamei later said he regretted using such “figurative” language but his comment revealed the trade tensions that exist between the world’s two largest economies.
Against this backdrop, negotiators from both countries met in this Canadian Pacific city on Tuesday for a second day of talks in advance of negotiations today between U.S. Trade Representative Mickey Kantor and Japanese Trade Minister Ryutaro Hashimoto.
On his arrival Tuesday, Hashimoto told reporters that his country did not plan to waiver in its opposition to a U.S. demand that Japan’s automakers increase their “voluntary” targets for purchases of American-made parts.
If the United States does not back down from this demand, a “deal is impossible,” Hashimoto said. “The cards are on the U.S. side.”
A senior U.S. official, speaking on condition that his name not be used, said the administration was adamant in its view that voluntary purchase agreements have to be part of a final agreement.
“This is obviously an important round of talks so we are going to work hard to try to reach agreements,” he said.
The administration, which has made expanding trade one of the hallmarks of its foreign policy, is desperate to achieve a successful market opening agreement with Japan in autos and auto parts, which last year accounted for nearly 60 percent of America’s record $66 billion trade deficit with Japan.