US fires round two at Japan

WASHINGTON - In a new move aimed at Japan, the Clinton administration yesterday resurrected a tough trade law which, once negotiations have failed, allows Washington to slap 100 per cent retaliatory tariffs on goods from countries which refuse to open up their markets to American products, writes Rupert Cornwell.

Under the move, which was formally announced last night, the President is re-activating the so-called Super 301 provision, which lapsed in 1990. It allows the government to establish a hit-list of worst offending countries, to be published by 30 September. If no voluntary agreement is reached within 18 months, Washington can strike with fierce punitive measures.

The Super 301 was only briefly used by President George Bush, who let it lapse after bitter protests from Japan and other countries that it amounted to unfair bullying. But as Japan's trade surplus with the US has rocketed to more than dollars 50bn a year, support for it on Capitol Hill has grown.

Experience in 1989 and 1990, when Super 301 was in force, suggests the mere possibility of its use generates speedy results. In the case of Japan, it succeeded in wringing out concessions on supercomputers, forest products and satellites. Backing up the threat is a plan to publish a list of candidate products from Japan for retaliatory tariffs.

Mr Bush's patrician, free- trading approach is a memory. Last month a summit between Mr Clinton and the Japanese Prime Minister, Morihiro Hosokawa, ended in failure when the two countries could not agree on the US share of certain Japanese markets. Shortly afterwards, the US Trade Representative, Mickey Kantor, announced unspecified measures against Japan over its refusal to open up its cellular telephone market to the US company, Motorola.

Despite the insistence of officials from both sides that neither intends a trade war, the re- introduction of Super 301 is another small step in that direction. The White House is gambling that, once again, its very existence will frighten the Japanese into concessions.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Receptionist / Administrator

£10000 - £13000 per annum: Recruitment Genius: An exciting opportunity has ari...

Recruitment Genius: Junior Web Developer

£15000 - £17000 per annum: Recruitment Genius: This digital agency is looking ...

Guru Careers: Financial Director / FD / Senior Finance Manager

Up to 70k DOE: Guru Careers: We are seeking an experienced Financial Director ...

Recruitment Genius: Sales Executive

Negotiable: Recruitment Genius: This company has been manufacturing high quali...

Day In a Page

Turkey-Kurdish conflict: Obama's deal with Ankara is a betrayal of Syrian Kurds and may not even weaken Isis

US betrayal of old ally brings limited reward

Since the accord, the Turks have only waged war on Kurds while no US bomber has used Incirlik airbase, says Patrick Cockburn
VIPs gather for opening of second Suez Canal - but doubts linger over security

'A gift from Egypt to the rest of the world'

VIPs gather for opening of second Suez Canal - but is it really needed?
Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Fashion editor, Alexander Fury, applauds a man who clearly has more important things on his mind
The male menopause and intimations of mortality

Aches, pains and an inkling of mortality

So the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
Man Booker Prize 2015: Anna Smaill - How can I possibly be on the list with these writers I have idolised?

'How can I possibly be on the list with these writers I have idolised?'

Man Booker Prize nominee Anna Smaill on the rise of Kiwi lit
Bettany Hughes interview: The historian on how Socrates would have solved Greece's problems

Bettany Hughes interview

The historian on how Socrates would have solved Greece's problems
Art of the state: Pyongyang propaganda posters to be exhibited in China

Art of the state

Pyongyang propaganda posters to be exhibited in China
Mildreds and Vanilla Black have given vegetarian food a makeover in new cookbooks

Vegetarian food gets a makeover

Long-time vegetarian Holly Williams tries to recreate some of the inventive recipes in Mildreds and Vanilla Black's new cookbooks
The haunting of Shirley Jackson: Was the gothic author's life really as bleak as her fiction?

The haunting of Shirley Jackson

Was the gothic author's life really as bleak as her fiction?
Bill Granger recipes: Heading off on holiday? Try out our chef's seaside-inspired dishes...

Bill Granger's seaside-inspired recipes

These dishes are so easy to make, our chef is almost embarrassed to call them recipes
Ashes 2015: Tourists are limp, leaderless and distinctly UnAustralian

Tourists are limp, leaderless and distinctly UnAustralian

A woefully out-of-form Michael Clarke embodies his team's fragile Ashes campaign, says Michael Calvin
Blairites be warned, this could be the moment Labour turns into Syriza

Andrew Grice: Inside Westminster

Blairites be warned, this could be the moment Labour turns into Syriza
HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

The mystery of Britain's worst naval disaster is finally solved - 271 years later

Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

'I saw people so injured you couldn't tell if they were dead or alive'

Nagasaki survivors on why Japan must not abandon its post-war pacifism
Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

The voter Obama tried hardest to keep onside

Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen