U.S.-Japan Trade Talks Progressing, Officials Say

U.S. and Japanese officials said Friday they had made progress on opening Japan’s medical supply market to U.S. products but that the two sides remained at odds over access to the Japanese electronics market.

Negotiators are focusing on four trade areas--medical supplies, electronics, telecommunications equipment and forestry products--as the United States tries to reduce its trade deficit with Japan. Last year the deficit was $36.8 billion.

Masatoshi Kayukawa, a spokesman for Japan’s Health and Welfare Ministry, said that, in talks that ended late Thursday, Japan agreed in principle to go along with all eight requests made by the United States to open the Japanese market for pharmaceuticals and medical equipment.

But a U.S. official disputed that claim, saying that “most definitely, this does not wrap up long talks” on the issue.

The U.S. official, who spoke on condition that he not be identified, said that Japan has yet to show its good faith by accepting foreign clinical test data in approving non-Japanese drugs and medical equipment.

At the talks, the Japanese said they will accept foreign test data, but the U.S. official stressed that “so far there have been no cases in which the Health and Welfare Ministry has accepted any foreign clinical data, although it agreed in principle (to do so) in November, 1983.”

Japan has been reluctant to use such data on the grounds that Japanese, due to physiological differences, might not have the same reactions to drugs as other people.

Japan said it will give foreign firms seeking approval for drugs easier access to evaluations conducted by the Central Pharmaceutical Affairs Council, an official advisory organization.