AUTOS : U.S., Japan Remain Far Apart in Trade Talks
U.S. negotiators are hoping for a breakthrough in high-level talks with Japan this week on automotive trade, but it is uncertain whether they will succeed and avoid an escalation of the dispute.
“We look forward to making progress in the . . . discussions on auto and auto parts,” Secretary of Commerce Ronald H. Brown said in a television interview from Washington. “We certainly need progress.”
Although negotiators reported glimmers of progress on secondary issues in low-level talks last week in Tokyo, the two sides remain far apart on key issues. U.S. officials say they want progress in talks on all fronts of the trade dispute.
The United States wants American manufacturers to have greater access to Japan’s car dealers and tightly controlled replacement parts markets.
But the biggest sticking point is its demand that Japan’s auto makers renew voluntary purchase agreements that spell out how they plan to boost purchases of U.S.-made parts.
In Washington, U.S. Trade Representative Mickey Kantor said the United States will open Japan’s auto markets “one way or another.”
“It’s critical that we do it. It’s important not only for the country as a whole . . . (but) it’s also important to give confidence to the American people. We’ll stand up to them,” Kantor told the National Assn. of Farm Broadcasters.
Low-level negotiators continued their discussions on technical issues Monday, while Undersecretary of Commerce Jeffrey Garten and U.S. Trade Representative General Counsel Ira Shapiro prepared to meet their Japanese counterparts today. Kantor will meet with Ryutaro Hashimoto, Japan’s industry and international trade minister, on Wednesday.
Currency traders are watching the talks closely, and failure to make any advances this week could send the dollar into a tailspin, traders said. Some economists have said the huge $60-billion annual U.S. trade deficit with Japan is a reason for the dollar’s recent slide against the yen.
Kantor has threatened to impose trade sanctions against Japan if talks fail to produce an accord.
