USTR urges Japan to open beef, auto markets further

March 31, 2018

Washington- The Office of the US Trade Representative, in its annual report released on Friday, urged Japan to open its markets further.

In particular, the 2018 National Trade Estimate Report on Foreign Trade Barriers criticized Japan's import barriers for beef and other farm products, and automobiles and auto parts.

Washington may put stronger pressure on Tokyo for further market opening, at a meeting between Japanese Prime Minister Shinzo Abe and US President Donald Trump, slated for mid-April in the United States, and through an economic dialogue forum between the Japanese and US governments, informed sources said.

In the report, the Office of the USTR reiterated its request that Japan scrap its measure to limit imports of US beef to that from cattle aged 30 months or below because of concerns over bovine spongiform encephalopathy (BSE), commonly known as mad cow disease.

"The United States continues to urge Japan to fully open its market to U.S. beef and beef products from animals of all ages," it said.

The report said, "A variety of nontariff barriers impede access to Japan's automotive market, and overall sales of US-made vehicles and automotive parts in Japan remain low."

The barriers cited in the report include certification systems and hindrances to the development of distribution and service networks.

China, with which the United States has the biggest trade deficit, tends to condition investment approval on a requirement that foreign companies transfer technologies to, and conduct research and development activities in the country, the report noted.

It also said that Chinese government officials in some cases reportedly have pressured foreign firms seeking to participate in the standards-setting process to license their technology or intellectual property "on unfavorable terms."

In late March, the administration of US President Donald Trump introduced additional tariffs on steel and aluminum products from Japan and other countries. It also decided to impose high tariffs on Chinese products in response to China's alleged violations of US intellectual property rights. Jiji Press