Brazil and Japan Reply to Criticism

Brazil said Sunday that it “profoundly laments” President Reagan’s criticism of its import restrictions on U.S. computers, and officials in Tokyo said his charge of unfair trade practices by Japan on leather and tobacco was groundless.

Reagan on Saturday ordered his trade representative to investigate potential unfair trade barriers by Japan against tobacco products, by Brazil against computers and related products, and by South Korea against insurance.

He also set a Dec. 1 deadline for Japan to end barriers against leather products and the European Common Market to end barriers against canned fruit.

Brazil Publishes Reply

In an official statement published Sunday, Brazil’s Foreign Ministry said Reagan’s announcement indicated that his Administration “doesn’t understand the position now adopted at the moment when Brazil is mounting an intense effort to widen its areas of international commerce and establish its internal economy.”

Since 1967, Brazil has prohibited foreign companies from manufacturing or selling mini- and microcomputers in order to protect Brazil’s fledgling computer industry, which has developed into a $2-billion annual business.

Brazil’s Congress approved legislation last year to continue the policy until 1992.

“The Brazilian government profoundly laments the decision of the American government on Brazilian data-processing policy,” the Foreign Ministry statement said.

‘National Interests’

“National legislation on data processing addresses national interests of economic and technological development and doesn’t imply unacceptable trade practices, in ample accordance shown by our government to the GATT agreement guidelines,” it said.

The General Agreement on Tariffs and Trade is an international body that seeks gradual elimination of trade barriers.

The United States is Brazil’s largest trading partner, and any retaliatory U.S. action could seriously hurt the South American country’s attempts to boost exports so as to reduce its more than $100-billion foreign debt.

Japanese React Calmly

In Tokyo, Kyodo News Service said officials in the Ministry of International Trade and Industry reacted calmly Sunday to Reagan’s charges but called them “groundless.”

Kyodo quoted ministry officials as saying they did not know why Reagan suddenly chose to make an issue of the leather barriers, since Japan promised at a July meeting of GATT to review its curbs on leather goods.

Finance Ministry spokesmen said Japanese tariffs on tobacco are now about the same as those imposed by the United States.

(Reuters news agency quoted Japanese Foreign Minister Shintaro Abe as saying, “We consider the tobacco issue has already been settled,” and that Japan intends to settle the leather issue by December.)