Japan fears US sanctions

TOKYO, Jan 27: Japanese leaders said Wednesday they were worried about US plans to revive a procedure to impose stiff sanctions on countries with tough trade barriers to American exports, reports AP.

Tokyo fears it could be targeted with the so-called 'Super 301" trade legislation since Japan's rising trade surplus and soaring steel exports to the United States have fanned tensions with Washington.

Prime Minister Keizo Obuchi said trade conflicts should be handled according to international rules rather than bilaterally.

If the United States takes action unilaterally, I will be seriously concerned about it," Obuchi was quoted as telling reporters Wednesday by Kyodo News agency. "We'll watch it carefully.

Japan, like many other US trading partners, views the Super 301 as bullying, and favors having a neutral body, the Geneva-based World Trade Organisation, settle trade disputes.

Chief Government spokesman Hiromu Nonaka echoed Obuchi's comments.

"I can't help but say I'm very worried by the possibility that the US, which plays a leading role in the world, would take such unilateral action," Nonaka told a regular news conference.

"Japan will watch to see what steps the US takes. I expect it to take careful and appropriate steps," he said.

US Trade Representative Charlene Barshefsky told the Senate Finance Committee on Tuesday that president Bill Clinton will issue an executive order re-instituting Super 301, a process in which the United States singles out countries for intensive negotiations which ultimately can lead to sanctions.

The administration has used Super 301 in the past to force trade concessions from other countries, most recently last October when South Korea agreed to remove a series of barriers to American automobiles.

The administration is under intense pressure to trim the US trade deficit. The gap was running at an annual rate of $168 billion last year and is expected to widen by another $ 50 billion to $ 60 billion this year.

Japan announced on Monday that its trade surplus with the world soared 40.1 per cent in 1998 to a record 13.9 trillion yen ($121.8 billion). The surplus with the United States increased 33.4 per cent to 6.7 trillion yen ($ 58.3 billion).