Kantor, Citing Unsettled Japan Politics, Puts Off Trade Ruling

U.S. Trade Representative Mickey Kantor postponed a ruling Thursday on a critical U.S.-Japanese trade dispute, citing the unsettled Japanese political situation following the selection Wednesday of a new government.

Kantor announced he would put off for up to 30 days a decision on allegedly discriminatory Japanese government procurement practices for medical products and telecommunications equipment. Such a decision could begin a process that might end with the United States imposing trade sanctions.

Kantor also said a delay was acceptable because trade negotiators have made steady progress toward resolving the dispute.

The delay marked the first tangible fallout from a government shuffle that is expected to sharply slow the progress of U.S.-Japanese trade talks and greatly reduce the chances that any important bilateral decisions are reached at next week’s meeting of top industrial nations in Naples, Italy.

The Clinton Administration has heavily stressed those trade efforts, and officials had hoped to produce visible results before the summit began.

Separately, Kantor said the United States would immediately begin an investigation of allegations that the Chinese have not properly protected U.S. patents and copyrights in their country. The announcement means China could face sanctions if the two countries do not resolve the disagreement in the next few months.

Kantor has said that he would not allow instability in Japan--now on its fourth government in a year--to put off trade actions. But, he said, “I am a realist. I understand what the situation is, and the possibilities of whether or not we are going to reach a conclusion that is satisfactory to the United States.”

The new coalition government, led by Tomiichi Murayama, is considered highly unstable. Many analysts in Japan and elsewhere predict it may dissolve quickly. Even so, U.S. officials publicly asserted that they intend to try to forge ahead on the outstanding U.S.-Japanese issues at the Naples summit with a meeting between Clinton and Murayama.

Anthony Lake, Clinton’s national security adviser, said the meeting “obviously will be a get-acquainted session. But I would expect . . . that there will be discussion of important bilateral issues.” The topics will include the broad framework of U.S.-Japanese trade and “a very serious discussion of North Korea.”