P.M. BRIEFING : GM Chief Warns on Japan Trade

The chairman of General Motors Corp. today warned that recent U.S.-Japan trade talks could lead to undesirable new American laws if current high U.S. expectations are not met.

“I am not a Japan-basher, and never will be,” said Roger Smith, retiring chairman of the world’s largest auto maker. “But we have to learn to trade together. And I look for Japanese companies to take the leadership in helping resolve these trade issues. We should not have governments trying to resolve some of these trade issues.”

In last week’s trade talks, Japan pledged to alter its anti-monopoly law to provide foreign companies more access to business opportunities by reducing Japanese business collusion. It also promised to reduce restrictions on the opening of large-scale stores, which U.S. trade officials say are more likely to sell imported products.

“I don’t know whether that’s going to be good for trade or bad for trade, because it’s going to raise expectations, but if it doesn’t produce results to lower that $50-billion trade deficit, it may backfire in Congress and bring on some unwanted rules,” Smith said.