U.S. To Attack Japan Trade Barriers Clinton Sets Priority For Second Term
After a number of breakthroughs in the trade wars with Japan, President Clinton will seek elimination of further barriers in a second term, a top administration official said Friday.
Calling Japan a “uniquely difficult place for foreign firms to compete,” Deputy Treasury Secretary Lawrence Summers said the administration will maintain its efforts to attack unfair Japanese trade practices both before the World Trade Organization and in direct negotiations.
Japanese officials have insisted the WTO, the multinational arbiter of trade rules, is the proper place for U.S.-Japan trade disputes rather than head-to-head talks.
But Summers said while the WTO would be the proper venue for many disputes, “wherever necessary, we will be prepared to pursue our interest directly with the Japanese government.”
Summers, who will travel to Tokyo next week for talks with Japanese officials, also put Japan on notice that the administration would be closely monitoring the country’s performance in living up to the 24 market-opening deals negotiated since Clinton took office in 1993.
“Japan’s credibility in the United States and with its other major trading partners as well depends on following through on its commitments,” Summers said. “We have an elaborate process in place to monitor these agreements and we will continue to see that they live up to the initial promise.”
Summers said the administration’s policy aims with Japan over the next four years would also focus on prodding the Japanese government to continue efforts to spur its sluggish economy by promoting increased domestic demand, rather than exports, and to reforming its financial system.
“The Japanese authorities are in the process of putting in place a number of important measures to strengthen the banking system. These look encouraging and we hope that they will be put in place quickly,” Summers said in his speech to the Japan-American Society in Washington.
In addition to meeting with Japanese officials, Summers will lead a U.S. delegation to the first-ever meeting of finance officials and central bank presidents from six Pacific Rim countries.
Officials from the United States, Japan, China, Singapore, Australia and Hong Kong will meet in Tokyo on Tuesday to discuss a range of financial issues including developing quick-response plans to deal with any future Mexican-style financial market crisis.
The so-called Six Markets Group is aimed at bringing together the big financial centers of the Pacific Rim region and is viewed as one more step to reorient U.S. policy toward Asia.