‘Japan faces trade bar’

Press, 21 December 1977, Page 8

‘Japan faces trade bar’

NZPA-Reuter Tokyo The Japanese External Economic Affairs Minister (Mr Nobuhiko Ushiba) has .said in an interview published in Tokyo that there is a strong possibility that the United States Congress might enact import restrictions against Japan if the present trade talks fail. The financial daily, “Nihon Keizai Shimbun,” quoted Mr Ushiba, who visited Washington and Brussels last week to explain Japan’s plan to reduce its trade surplus, as saying “the situation now is far more serious than at the time of the United States-Japanese textile negotiations in 1970.

“If the current United States-Japanese trade talks fail, there is a strong possibility that the United States Congress might legalise import restrictions aimed only at Japan,” he added. Asked if such legislation would violate the General Agreement on Tariffs and Trade, Mr Ushiba said: “Under the present circumstances, is there any country which will be sympathetic to Japan? Such legislation could impose conditions applicable only to Japan and levy surcharges.”

During the 1970 negotiations, Japan restrained textile exports to the United States at the strong request of President Nixon following a campaign pledge.

The United States was not expected to raise further complaints if Japan halved its $lO,OOO million balance-of-payments surplus in the year starting next April, he said.