Japanese Pay More When the Label Reads ‘Made in Japan’ : Trade: U.S. officials are ecstatic over a survey of prices in the two nations. The Americans say the results show that the Japanese subsidize exports.
It’s official. The United States and the Japanese government have formally confirmed what well-seasoned travelers have known for years: You can buy Japanese products, everything from radios to capital goods, more cheaply abroad than you can in Japan.
The issue came up in September during talks between Washington and Tokyo over long-term trade and economic problems. Washington complained that “unfair” business practices in Japan were skewing pricing practices and giving Japan an edge on trade. Japan denied any such thing.
At the United States’ request, bureaucrats from both governments sampled American and Japanese products in two major cities in each country, checking prices charged at department stores, discount stores and specialty shops. A total of 124 products and services were compared.
To no one’s surprise, the price-checkers found that about 60% of the Japanese goods on the list could be bought for less overseas than they could in Japan, while 90% of the U.S.-made and other foreign-made items cost the same or more in Japan than in their home countries.
The survey, conducted between Oct. 18 and Oct. 28, was made public Tuesday by the Commerce Department and Japan’s Ministry of International Trade and Industry, the two agencies that oversaw the exercise.
Some samples:
- A Japanese-made sedan that sells for the equivalent of $16,880 in Tokyo can be bought for $14,042 in Chicago. A U.S.-made sedan selling for $13,507 in Chicago costs about $25,613 in Tokyo.
- A Japanese-made laser printer that sells for $2,304.58 in a Tokyo specialty store costs $1,575 at a similar shop in Chicago. A Japanese-made cordless phone selling for $208.45 in Tokyo costs $158.87 in Chicago.
- A porcelain dental furnace made in Japan lists for $3,415 in Tokyo and sells, at a discount, for $2,903. The same product exported to New York lists for $2,030 and sells for $1,878.
American officials were ecstatic about the survey. U.S. Undersecretary of Commerce J. Michael Farren said the figures showed conclusively that Japanese manufacturers were using higher prices charged in their domestic market “to subsidize exports” to the United States.
Japanese officials confirmed the price statistics that the survey contained but distanced themselves from the U.S. interpretation of what the figures showed. They said special factors were involved in the case of each product. They did not elaborate.
Washington wants Japan to overhaul domestic pricing practices, modernize its system for distributing exports and other products and crack down on exclusionary business practices. The talks are expected to continue through next June.
PRICES IN JAPAN AND THE UNITED STATES A survey, requested by the United States and conducted Oct. 18-28, listed comparative prices found on 124 products and services in the U.S. and Japan (U.S. dollars.) Below is a sampling. Brands are not specified.
Price in Price in Product Japan U.S. Autos (comparable sedans) Japanese $15,977 $15,045 American 25,613 14,296 European 29,578 24,228 Tires (size 185/70 R14) Japanese 63.66 80.00 American 60.42 60.36 European 72.18 87.00 Spark plugs Japanese 3.03 1.35 American 2.89 1.14 European 7.61 1.69 Beer (330 to 355 milliliter) Japanese 1.44 1.00 American 1.37 .75 European 1.37 1.13 Blue jeans American 55.63 32.00 China (teacup and saucer) Japanese 8.45 19.00 American 98.59 85.00 European 98.59 72.00 Golf clubs (set of nine irons) American 767.61 539.95 Movie tickets American 11.27 7.25 Camera (body only) Japanese 314.79 265.00 Laser printer Japanese 2,304.58 1,575.00 Microwave oven Japanese 421.13 400.00 Portable CD player Japanese 160.56 169.95 Video camera Japanese 984.51 1,199.00 Cordless telephone Japanese 177.77 139.95
Source: U.S. Commerce Department and Japan’s Ministry of
International Trade and Industry
