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The United States
has put new pressure on Japan to import more
farm goods from American companies. The American
ambassador to Japan said if Japan does not open
its markets, then "we will just put our
resources in other places."
Ambassador Thomas Schieffer gave that warning in
a speech Wednesday to business leaders in Tokyo.
He also urged the Japanese to permit more
foreign investment. Among the most developed
countries, Japan still has the lowest level of
foreign direct investment in relation to the
size of its economy.
Food prices in Japan are among the highest in
the world as a result of efforts to protect
Japanese farmers. Japan imports more than half
of its food. But it places high customs and
other restrictions on many products, especially
rice, fruit and beef.
Ambassador Schieffer said he recognizes the
emotions involved in the debate over widening
the market for agricultural imports. He noted
that many Japanese still remember when Japan did
not produce a lot of food after World War Two.
But he also noted that the average age of a
Japanese farmer is seventy. He said Japan will
someday have no choice but to accept more
imports.
The American ambassador said the dispute over
agricultural trade is blocking greater economic
cooperation with Japan. But international farm
trade was also the main issue that led to the
suspension of World Trade Organization talks
last year.
This week, American Commerce Secretary Carlos
Gutierrez was in New Delhi to urge Indian
officials to do more to help restart those
talks. The United States is India's largest
trading partner. But India's governing coalition
depends on support from two communist parties
that oppose trade liberalization.
Also, developing nations want the United States,
the European Union and countries such as Japan
to make more cuts in farm protections. They say
these give farmers in rich nations an unfair
position. The commerce secretary said the United
States is willing to compromise. But in return,
he said, developing nations must do the same on
trade in manufactured goods and services.
The Commerce Department reported Tuesday that
the United States had another record trade
deficit last year, for the fifth straight year.
The deficit in goods and services was more than
seven hundred sixty billion dollars. Exports
rose faster than imports, but high oil prices
added to the deficit. And almost one-third of it
was a record trade imbalance with China. |
