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U.S. Trade Report Warns Japan

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From Reuters

The United States released its annual hit list of world trade barriers Thursday, and singled out Japan for special criticism.

The trade office was quick to point out that the report had taken on “added significance” this year since President Clinton has revived a dormant sanctions tool.

Since the March 3 revival of the Super 301 measure--which has been widely condemned overseas--any of the litany of accusations leveled against Japan in the report could now be the basis for punitive tariffs some months down the road.

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“The longest section of the report relates to Japan,” the trade office said in a terse statement.

“The section contains examples of progress, but also documents the fact that the barriers in Japan to imports of manufactured goods and services far exceed the barriers of other G7 (Group of Seven) nations and place an unacceptable burden on the global trading system,” it said.

Indeed, it dedicated 43 pages to Japan--up from 27 pages last year--and noted that the U.S. deficit with Tokyo last year totaled $60.4 billion, up $10 billion from 1992.

The report said the imbalance and a host of alleged trade barriers have “created enormous strains on Japan’s trade relations with the United States and other countries.”

The National Trade Estimate--a detailed indictment of 39 countries and regions--is an annual report card to Congress on problems around the world. Japan is problem No. 1 and, for the first time since Clinton took office, this year’s study sets a clock ticking on possible Super 301 action.

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