U.S.-JAPAN TRADE DISPUTE : Prolonged Talks Taken as a Sign of Possible Progress : Commerce: Though no breakthroughs are reported, negotiators’ comments give first indication of any budging.
American and Japanese negotiators met until early today in their second session of talks aimed at resolving a trade dispute over cars and auto parts, and some observers saw the prolonged discussion as a good sign. But no progress was reported.
Officials said the negotiations would resume this afternoon in an effort to end the standoff and avoid a trade war between the two economic giants.
If there is no agreement by Wednesday, however, the Clinton Administration has said it will impose 100% punitive tariffs on 13 models of Japanese luxury cars.
After more than five hours of talks in the afternoon, a U.S. official, speaking on condition of anonymity, said the discussions had been “in-depth.” Japanese negotiator Yoshihiro Sakamoto indicated the talks had reached a more profound stage.
The evening session lasted another five hours and broke up at 2:35 a.m. Geneva time. Ira Shapiro, general counsel for the U.S. trade representative, told reporters: “We had continuing in-depth discussions of all the relevant issues. We have decided that we will continue the discussions during the weekend.”
Although both sides declined to comment on the content of the talks, their statements were the first signs that the two sides had moved from their long-entrenched positions.
Rep. Sander Levin (D-Mich.) and Rep. Amo Houghton (R-N.Y.) struck optimistic tones about the possibility of the two sides forging an agreement before the deadline.
“I think the Japanese are serious this time,” said Levin, who with his colleague is here to monitor the discussions.
U.S. officials refused to comment on the talks in public except to say that the discussions are serious and substantial. But privately they appeared more optimistic.
U.S. officials say the sanctions, which would total $5.9 billion at current sales levels, are necessary because Japan has kept its markets for cars and auto parts unfairly closed to foreign competition. Auto trade accounted for 60% of America’s trade deficit with Japan last year.
Japan, however, contends that the sanctions would violate international trading rules, and Tokyo is pursuing a case against Washington under the World Trade Organization’s dispute-settlement mechanism while it continues the bilateral negotiations here.
The Clinton Administration is seeking market-opening concessions from the Japanese in three broad areas.
It wants Japan to allow its auto dealers to freely sell foreign vehicles, complaining that some cannot do so now because the dealerships are owned or controlled by Japanese car manufacturers.
The United States also wants Japan to make it easier for car owners to have their vehicles repaired at independent shops that use foreign-made parts.
Finally--the most difficult point--America wants Japanese car makers to use more non-Japanese parts. The Japanese news media have reported that Japan could resolve this element by increasing both production in Japanese-owned plants in North America, Europe and Asia and in the percentage of locally manufactured parts used there.
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Times wire services contributed to this report.
