WASHINGTON-The United States and Japan earlier this month appeared to sidestep a trade war that portended potential devastation for American retailers of wireless products during the busy holiday season.
U.S. and Japanese officials reached a breakthrough Oct. 17 that halted Clinton administration plans to block Japanese cargo ships from reaching American ports. Progress on the shipping dispute followed urgent entreaties from American businesses.
The United States threatened the action in retaliation for Japan’s refusal to pay $4 million in fines levied by the Federal Maritime Commission for failing to reform restrictive port practices that have frustrated American shippers for years.
Negotiations were conducted by Undersecretary of State Stuart Eizenstat and Japanese Ambassador Kunihiko Saito.
“The talks are still going on. We are hopeful they will be able to wrap it up and come up with a comprehensive agreement,” said a State Department spokesman early last week.
A spokeswoman at the Embassy of Japan responded similarly, saying, “Both sides are trying to finalize an agreement.”
It is unclear whether Japan acquiesced on fine and port accessibility issues or whether American industry simply forced the U.S. government to back off-or whether it was some of both.
Preventing Japan from unloading its goods on U.S. shores-which could have kept pagers, pocket telephones, computers and other imported consumer electronic products off the shelves of U.S. retailers two months before Christmas-clearly was opposed by American manufacturers and retailers. The two groups made their views abundantly clear to the Clinton administration.
“Japan is both an important customer and supplier to the U.S. electronics industries, with much of our goods being transported via ship,” said Peter McCloskey, president of the Electronics Industries Association. “The governments must recognize the significant negative implications for the U.S. and Japanese electronics industries if this dispute does not end immediately.”
Similarly, Tracy Mullin, president of the National Retail Federation, urged Clinton to intervene in the dispute and delay the proposed embargo against Japanese ships.
“While we agree in principle with the U.S. government’s position that Japan should live up to its trade agreements, we believe the possible sanction of an embargo would prove harmful to many segments of the U.S. economy,” said Mullin.
While U.S. negotiators attempt to put that trade fracas and another recent one with Japan involving Nippon Telegraph and Telephone Corp. procurement behind them, the Clinton administration is expected to largely avoid the trade issue this week when the president meets with Chinese President Jiang Zemin.
Because China represents a multibillion dollar export opportunity for American wireless companies and U.S. industry in general, the Clinton White House has been reluctant about pressing China on human rights, Tibet, Taiwan, pro-democracy dissidents and nuclear weapon nonproliferation.
Clinton himself has admitted his policy of constructive engagement with China has fallen short. As a backdrop to the summit, FBI and House and Senate investigations continue to probe allegations whether China tried to influence American presidential and congressional elections and policy through illegal contributions to the ’96 Clinton-Gore campaign.
The U.S. trade deficit with China totaled $39.5 billion last year and is expected to grow to $44 billion by year’s end.
Clinton recently returned from South America, another emerging region with tremendous wireless growth potential.
The White House aggressively is lobbying Congress for fast-track trade authority, which would force Congress to vote trade deals up or down without amendments.
