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Forestry and Fisheries Dispute

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The bipartisan leadership of the Senate Finance Committee has asked the International Trade Commission to investigate trade and economic barriers facing U.S. pulp and paper exports to Asia, Latin America and Europe.

On a related note, Japan's Minister of Forestry and Fisheries Shoichi Nakagawa visited the United States during the first week of November for talks with USTR Charlene Barshefsky and Secretary of Agriculture Dan Glickman. At one meeting, Nakagawa informed the U.S. government that Japan will not liberalize certain sectors, as had been previously agreed.

U.S. officials said that Japan's decision not to liberalize would cause this month's Asia-Pacific Economic Cooperation ("APEC") meeting in Malaysia to fail. Deputy USTR Richard Fisher remarked that Japan's absolute refusal to negotiate will cause other nations to do the same, especially with regard to "Early Voluntary Sector Liberalization" ("EVSL"). EVSL would cut tariffs and trade barriers on environmental products and services, energy, fisheries, forestry, toys, jewelry, medical goods, chemical products and telecommunications. Despite the apparently grim prospects for the meeting, the White House has confirmed that President Clinton will participate in the meeting for heads of state on November 17 and 18.

Minister Nakagawa had previously urged that liberalization of fishery and forestry products not be discussed at the November APEC meetings in Malaysia, despite a seeming consensus to the contrary. Various Japanese officials, including Nakagawa and Ambassador to the United States Kunihiko Saito, had previously commented that APEC was not the proper forum for such discussions, arguing that Japan would prefer APEC to concentrate on the looming financial crisis. Further, Ambassador Saito has noted that Japan's tariffs on forestry and fisheries products have been lowered significantly, while the concerned industries continue to fair poorly. Domestic pressure should make it difficult, if not impossible, for the Obuchi government to compromise on early liberalization.

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