Bush Defends Japan Fair Trade Decision : Unfair practices: President vows to ‘use all tools at our disposal’ to open Asian market to U.S. products.

President Bush, defending his decision to drop unfair-trade charges against Japan, vowed today to “use all the tools at our disposal,” including threats of retaliation if necessary, to open the Japanese market.

In a speech to the U.S. Chamber of Commerce, Bush said his decision last Friday no longer to cite Japan for unfair-trading practices “does not mean that all of our problems with Japan have disappeared.”

However, he pointed to recent concessions by Japan as evidence of unprecedented progress in easing trade tensions and said Japanese Prime Minister Toshiki Kaifu “shares our commitment to ensuring that trade strengthens rather than undermines the friendship between our nations.”

“We know that we could sell more American products if Japan’s market were truly open,” he said, “but we’ve been working hard on it and I think with impressive results.”

Under the “Super 301” section of the 1988 omnibus trade law, the Administration is required to identify countries targeted for investigations of unfair trading practices and the prospect of retaliation in the event that negotiations fail to resolve those disputes.

Last year, Japan, India and Brazil were all designated. Facing an April 30 deadline for a new round of Super 301 cases, Bush said Friday that only India, because of its refusal to enter into negotiations, would continue to be cited.

His decision angered some members of Congress fighting for tougher treatment of the Japanese.

However, Bush said the resolution of last year’s three specific complaints against Japan under Super 301--over supercomputers, satellites and forest products--and recent promises of economic reforms that would make the Japanese market more competitive and stimulate demand for imported goods provide reason to “look forward to substantial progress.”

To those members of Congress who accused him of being too quick to accept Japanese promises in place of concrete action, Bush told the Chamber of Commerce audience, “We’re going to continue to press for progress.”