Japan and the United States remain very...

Japan and the United States remain very far apart in negotiations on the beef and citrus issue, Deputy U.S. Trade Representative Michael Smith said. Smith held informal talks with Japanese Agriculture Ministry officials that failed to produce results. The most persistent stalling point is Japan’s insistence on slapping surcharges on U.S. beef and citrus imports, which the United States opposes, Smith said. Under the General Agreement on Tariffs and Trade, surcharges are only allowed when an unbalanced payments situation exists or when a production control system exists. Neither factor is present in this situation.