Japan Plans GATT Appeal on Tariffs : Retaliation for U.S. Electronics Duties Being Considered

Japan today announced it would file “immediately” an appeal to GATT (General Agreement on Tariffs and Trade) if the United States imposes retaliatory tariffs on Japanese electronics products, as scheduled Friday.

Masaji Yamamoto, deputy director of the machinery and information industries bureau of the Ministry of International Trade and Industry (MITI), also told foreign newsmen that his ministry “is seriously considering abrogating the U.S.-Japan Semiconductor Agreement” if the Reagan Administration enforces the 100% tariffs it said it would impose for alleged Japanese failure to uphold the accord.

He also said Japan is studying whether to impose tariffs on American goods in retaliation.

Yamamoto, however, later toned down his comments about possible retaliation in the form of either abrogating the accord signed last Sept. 2 or imposing its own punitive tariffs.

Credibility at Stake

Abrogating the agreement only eight months after it was signed, he said, would have a “great impact” on U.S.-Japan relations and raise questions about “the credibility” of Japan’s commitment to the pact. “Therefore, we are studying the possibility of ending the agreement prudently . . . and have not reached a conclusion,” he added.

He also said the “probability” of the ministry imposing retaliatory tariffs is not high--and, in any event, would not include penalties on imports of agricultural products.

“Japan is not the kind of nation which engages in rampages which violate the rules of GATT,” he declared.

But, for the first time, Yamamoto stated without qualification that Japan would initiate procedures to file a complaint with GATT as soon as the American sanctions are imposed. Previously, Japanese officials have said only that such action would be considered.

Under the semiconductor agreement, Japan pledged to stop dumping of semiconductors in the United States, monitor prices of Japanese chips sold in third countries, and increase the market share in Japan of American-made semiconductors. Yamamoto reiterated that the U.S. charge that Japan has not fulfilled its obligations under the accord is “unwarranted and untrue.”

Violation of Rules

The proposed American tariffs on Japanese electronics products, he said, violate GATT rules.

An appeal to the international trade body would, first, subject the American action to international criticism and could eventually lead to GATT-approved countermeasures by Japan, the official said.

Makoto Kuroda, vice minister in charge of international affairs, and other MITI officials will remain in Washington “until the last minute” trying to persuade U.S. authorities to forgo imposition of the punitive tariffs, he said.

“We hope the United States will not make a mistaken judgment. That is our first hope,” he said.

“My impression, however, is that the United States is intent on carrying out the measures, whatever the logic,” said Yamamoto, who participated in five days of last-minute U.S.-Japan consultations last week in Washington.

Prime Minister Yasuhiro Nakasone, who will visit Washington from April 29-May 2, has “applied absolutely no pressure” on MITI to refrain from taking retaliatory measures before his American trip, the official said.

Yamamoto condemned the United States for refusing to provide Japan with data and evidence of alleged Japanese dumping in third countries.