Japan Irate Over U.S. Trade Charges, Won’t Negotiate : Threatens to Sue Over Sanctions

Japan angrily refused today to negotiate to avoid trade sanctions under terms set by the United States, and Tokyo said it may haul Washington into international trade court.

The United States named Japan, Brazil and India on Thursday as unfair traders that must negotiate to remove barriers within 18 months or face possible sanctions, including tariffs of up to 100% on selected goods.

India joined Japan in criticizing the U.S. action. Commerce Minister Dinesh Singh said it was “totally unjustified, irrational and unfair.”

The Brazilian government also denied the allegations, and a top presidential aide said the nation would present “solid arguments in its defense.”

The Japanese Foreign Ministry summoned U.S. Ambassador Michael Armacost today to explain Tokyo’s position, ministry spokesman Taizo Watanabe said.

“The government of Japan has no intention of entering into negotiations with the United States under the conditions imposed under Super 301,” Hiroshi Mitsuzuka, minister of international trade and industry, said in a statement.

“Super 301” refers to the provision of the 1988 U.S. Omnibus Trade Act allowing the United States to target countries and practices that block American exports.

The European Community, Japan and other countries have said the unilateral nature of the U.S. law may violate the provisions of the international General Agreement on Tariffs and Trade, or GATT.

If sanctions are imposed under Super 301, Japan may bring a complaint before GATT, which is supposed to help resolve trade disputes, Watanabe said.

Foreign Minister Sousuke Uno called the U.S. action “extremely regrettable” and said it was designed to draw attention away from a large source of the trade imbalance, the U.S. budget deficit.

“As a result of many market-opening measures that have been taken to date, the Japanese market has now become a widely open market,” Uno told reporters.

“The U.S. itself maintains import restrictive measures and practices to a considerable degree,” he said.

Japan was targeted for unfair trade practices in supercomputers, satellites and lumber.

But officials cited increases in Japanese purchases of U.S. goods and expressed anger at U.S. charges of unfairness.

Japan is launching five U.S. communications and broadcasting satellites this year, “which proves our satellite market is open to foreign companies,” said Posts and Telecommunications Minister Seiichi Kataoka.

The United States charges that Japan’s policy of encouraging a domestic space industry prohibits the purchase of foreign satellites if they interfere with “indigenous development objectives,” effectively limiting U.S. access to the market.

Japan announced earlier this month that it will buy eight U.S. supercomputers within three years.

The United States says that through a variety of exclusionary practices, Japan has “thwarted the open procurement process” of supercomputers.

The U.S. statement also said Brazil’s import licensing system “inhibits market access and creates uncertainty for U.S. exporters.” It criticized India for requiring government approval of new or expanded foreign investment.