U.S. Will Go to GATT With Japan Complaint
The United States Thursday abandoned its efforts to prod Japan into easing restrictions on imports of beef and citrus products and prepared to file a formal complaint with the General Agreement on Tariffs and Trade.
The U.S. decision came after negotiators for the two sides failed to reach agreement on renewal of a 1984 accord that had called for gradual liberalization of Japanese quotas on both items. U.S. trade officials had wanted Tokyo to lift the quotas entirely within the next two or three years.
Washington had given Japanese negotiators until late Thursday--the day the 1984 agreement expired--to satisfy U.S. demands. The two sides have been wrangling over the issue since the mid-1970s.
U.S. Trade Representative Clayton K. Yeutter said after the talks ended late Thursday that the United States is “deeply disappointed” that the Japanese did not make any concessions.
The U.S. complaint before the 96-country GATT is expected to be heard on April 8. Washington had asked the GATT secretariat to schedule an emergency session even before the talks in Washington had ended in hopes of increasing pressure on the Japanese negotiators.
Retaliation Possible
The strategy apparently did not work. Japanese Agriculture Minister Takashi Sato flew here to participate in the final day’s bargaining Thursday but declined to make concessions on either item.
Japanese officials said that Sato would have to return to Tokyo for further instructions. As is the case in the United States, Japan’s agricultural industry has significant political influence.
The U.S. decision to file a complaint with GATT does not necessarily mean that the two sides will not reach an accord. Japan will still have plenty of time to propose a compromise. The April 8 session will be only to choose a GATT panel to hear the U.S. complaint--the first step in a lengthy process.
Yeutter said Thursday that the Reagan Administration also would consider launching an unfair trade practices case under U.S. law--a move that ultimately could result in U.S. retaliation against Tokyo in the form of quotas or other restrictions on Japanese exports to the United States. That process could take up to 13 months to complete.
The Geneva-based GATT, an informal group of trading nations, is charged with setting the rules governing world trade but has relatively little power to enforce them. However, a ruling in favor of the United States could entitle Washington to seek compensation from Japan or, in some cases, to retaliate legally against the Japanese.
Higher Imports
The 1984 accord between the United States and Japan called for gradual increases in the amounts of fresh American oranges, orange juice and high-quality beef that Japan would allow in over the succeeding four years.
According to U.S. figures, in the year ending March 31, 1987, Japan imported 126,000 metric tons of U.S.-grown oranges, up from 93,000 tons in a similar period three years earlier; 8,500 metric tons of orange juice, up from 7,000 three years earlier and 58,400 metric tons of high-quality beef, up from 27,600 from four years earlier.
However, U.S. officials say that American producers could sell double the volume they recorded last year in beef and could significantly increase their sales of citrus products if Japan liberalized its quotas.
