U.S. Cites Japan, Brazil and India for Unfair Trade

The United States today cited Japan, Brazil and India for unfair trade practices, congressional sources said.

High Administration officials briefed Congress on President Bush’s decision. A formal announcement was being held back until the affected nations could be informed.

Washington cited the unfair trade practices of Japan for wood products, satellites and superconductors, Brazil for licensing and services, and India for investment, the sources said.

The congressional sources said the United States notified five other countries that they will become priorities for investigation of unfair trade practices involving intellectual property rights.

Another 25 countries will be placed on a “watch list” for possible investigation of unfair trade.

U.S. Trade Representative Carla Anderson Hills and Commerce Secretary Robert A. Mosbacher had urged Bush to cite Japan for unfair trade practices, but key foreign policy advisers had argued that Tokyo should be spared because it is a loyal ally in the Far East.

Japan, which had a $52.1-billion trade surplus with the United States last year, was a key target of congressional proponents of the 1988 Trade Act, which requires Hills to list countries believed to have significant barriers against foreign goods by May 28.

But the decision, under the law’s so-called “Super 301” provision, was actually made by Bush after listening to heated debate at a Monday meeting of his Economic Policy Council.

The nations cited must agree to end the restrictions within 18 months or face retaliation, which could include 100% tariffs on their exports.

Diplomats and businessmen from Japan, South Korea and Taiwan have repeatedly called on Congress and the Administration to keep their names off the list.