Congressional Hearings on Japan

Senate Finance Committee

The Senate Committee on Finance conducted a hearing on July 14 on "Japan’s Role in the International Trading System: Prospects for Market Liberalization and Economic Reform." The panel received testimony from a variety of academics, financial analysts and industry representatives.

Several members of the Committee expressed their concern over Japan’s economic crisis and the potential repercussions. Committee Chairman William Roth (R-Delaware) said it’s "pretty clear that Japan is not going to take the steps needed to reform its economy and restore confidence in its people." He added: "But what can we do here. We are going to have louder and more extreme voices on protectionism."

After listening to one industry spokesman, Chairman Roth said that "one of the problems, as I understand your testimony…is that even if you do have an agreement that purportedly is to help open up, the implementation is as difficult as the initial negotiations."

This sentiment was echoed by at least two other panel members. Senator Daniel Moynihan (D-New York) said: "Since 1984, we’ve had 43 trade agreements with the Japanese and nothing happens." He further remarked that "it’s time for a measure of indignation. I don’t want to be confrontational, but none–nothing else seems to work there." Referring to implementation of agreements, Senator Alfonse D’Amato (R-New York) quipped that "the USTR will be spinning its wheels there through my grandchildren’s lifetime."

House Ways and Means Committee’s Subcommittee on Trade

The House Ways and Means Committee’s Subcommittee on Trade held a hearing on July 15 to examine U.S. trade policy toward Japan. Deputy USTR Richard Fisher was originally scheduled to testify at the hearing but instead met in a private executive session with Subcommittee members.

While details of his closed-door meeting with panel members have not been disclosed, Fisher’s written testimony is consistent with previous statements from Administration officials over the past several weeks. He reiterated the U.S. position that the Government of Japan should implement fiscal stimulus programs and deregulation measures and should be a leader in creating a "more open world trade system." Fisher concluded by saying that Japan "will neither prosper at home, nor play its rightful international role, without fundamental reform. And neither we nor the world can wait for Japan to act at its own pace…the game is on the line and Japan is up. It is time for Japan to pick up the bat, step up to the plate, and hit one out of the park."

During the public hearing, some of the more hardline comments came from Rep. Sander Levin (D-Michigan) who advocated reinstating Super 301 language, giving the Clinton Administration an additional tool for combating market access barriers. He said "Super 301 has proven to be one of the most potent market-opening tools, and we should continue to have it available, and to use it." Furthermore, he said the United States should "identify ways to strengthen regular Section 301, such as expanding the remedies to include WTO-legal civil fines, which were used effectively by the Federal Maritime Commission last year to force Japan to open up its port."