Back to The Diederich Journal, Spring
1997.The following story appeared in the April 30 edition of The Daily Yomiuri.
Market access. The topic has played a significant role in Japan's relations with the United States since Commodore Matthew Perry arrived here with his fleet of Black Ships in 1853 to establish diplomatic and commercial relations.
Perry, on orders from the U.S. president and backed by an impressive arsenal of heavy guns, returned home with a treaty of friendship after a second visit the following year in a move that marked the beginning of often contentious Japan-U.S. trade relations.
Nowadays, major trading partners such as the United States have to rely on the threat of economic sanctions as a last resort when it comes to prying open Japanese markets they claim are closed. Multilateral forums such as the World Trade Organization are also playing an increasingly important role.
Charles Duffy, executive director of the American Chamber of Commerce in Japan (ACCJ), praised the Japanese government on its progress in deregulation in recent years. But "on a percentage scale, I would say at best the Japanese are halfway there," he said. "Which means a long way to go."
The ACCJ, representing more than 1,000 U.S. companies, works closely with the U.S. government and often presents trade- and commerce-related concerns directly to the Japanese government.
What is missing in many areas of trade, according to Duffy, is quid pro quo.
"Japan cannot manufacture cars, put them on boats, ship them to California and dominate the (U.S.) market," Duffy said. "It's like so many other products: The ideas and concepts of the Japanese market from the bureaucracy on down to industry since the end of the war has always been about protection. And that set of circumstances is no longer valid in today's world."
According to the ACCJ, of the 45 major trade agreements reached between Japan and the United States since 1980, only 13 have been successful.
Notable successes in Japan-U.S. trade include agreements on beef and citrus, cellular telephones and semiconductors, the ACCJ said. It defines "success" as clear improvement in market access.
Examples of agreements deemed unsuccessful include those over apples, insurance and government procurement. Another notable area of trade contention involves consumer photographic film and paper.
Prime Minister Ryutaro Hashimoto's administration is promoting a series of economic and structural reforms designed to create a "new Japanese socioeconomic system suitable for the 21st century." The idea, according to Hashimoto, is to make the Japanese economy more efficient, resilient and international, enhancing Japan's attractiveness as an arena for economic activities.
To reach that goal, Duffy said Tokyo must discard antiquated government rules and regulations.
"Japan has different areas of regulations that involve specifications (on imports) to the extent that they don't meet an internationally accepted standard," Duffy said. "So, you've got a barrier."
In 1996 the U.S. trade deficit with Japan dropped 11.6 billion dollars from the year before to 47.7 billion dollars. Merchandise exports to Japan rose 3.2 billion dollars (5 percent). At the same time, Japan's exports to the United States fell 8.4 billion dollars (6.8 percent) to 115.2 billion dollars.
Washington, in assessing its trade relationship with Tokyo, said that by the end of 1996 agreements had been reached and disputes resolved in many important sectors that would expand opportunities for U.S. businesses in Japan. At the same time, however, the United States pointed to areas of alleged market access problems that it