U.S. Moves to Cite Japan Over Trade Accord Violations

The Bush Administration is preparing to cite Japan formally for failing to comply with parts of a 4-year-old agreement with the United States that calls for Tokyo to open its markets to more American-made telecommunications products.

The move, to be taken under the 1988 Omnibus Trade Act, will require the Administration to seek formal negotiations with Japan to correct the situation. If the two sides cannot reach agreement in six months, Washington could retaliate and block some Japanese imports here.

The decision, which is expected to be announced today or Friday, is one of several dozen such reports and lists of trade problems that the Administration must compile to meet the requirements of the new trade law.

In mid-February, under a broader provision of the same law, the Administration cited the European Community and South Korea for erecting barriers to U.S. telecommunications exports. Japan was omitted then, however, because officials wanted to review the 1985 accord.

The decision comes only a day after Japan was rocked by the resignation of Prime Minister Noboru Takeshita, who has been credited with pushing Japan toward more liberal trade policies.

No Effect

However, Bush Administration officials said Wednesday that they do not believe the Takeshita announcement will affect the telecommunications talks. The issue now involves relatively low-ranking administrators and is unlikely to require a political-level decision.

The latest complaints against Japan would cover U.S.-made cellular telephones and mobile radios--two of the dozen or so telecommunications products that initially were covered by the 1985 accord.

The 4-year-old U.S.-Japanese agreement sought to reduce--and it was hoped to simplify--the spate of sometimes conflicting safety standards that Japan had set for the approval of telecommunications products for sale there.

U.S. producers had contended that the standards were being used essentially to help keep foreign products out. After months of negotiations, Tokyo agreed to replace 32 such standards with only two, requiring only that any new equipment be safe for the user and not damage the network into which it was plugged.

Must Issue Report on May 30

But American manufacturers have complained that Japan has confined the use of U.S.-made cellular telephones and mobile radios to rural areas in the western part of the country and will not allow cross-country drivers to use them in the Tokyo area.

Besides the telecommunications action, later this week the Administration is required to unveil its annual “national trade estimates report,” which chronicles the trade barriers that Washington believes other countries have erected to American-made products and services.

Then, on May 30, the Administration must issue its most controversial report of all--a list targeting so-called priority countries for negotiations on specific trade problems. Japan is expected to be included on that list as well, although it is not yet clear just what for.

The May 30 action is expected to draw vigorous protests from U.S. trading partners, which could be subject to strong retaliation if they do not satisfy U.S. demands within 18 months. Some foreign governments have complained that the new U.S. law violates international trade rules.