Japan gives ground with retaliatory tariffs
Over the
US steel tariffs under Bush administration's S201,
Japan was determined to implement 100% retaliatory tariffs for the US products. In May Japanese officials requested the World Trade Organisation (WTO) to set up a panel to investigate the US tariffs.
Now that after an hour dicussion with the US Trade Representative Robert Zoellick on the phone, Takeo Hironuma,
Japan's minister of the economy, trade and industry announced that for the impression they gained the US is constructively working on the exclusions, they have decided to postpone the retaliatory tariffs and wait for the outcome of entire list of product exclusions for
Japan.
Year 2001 figures show 2.2 million tons of steel exports from
Japan to the US.
Japan's request for exemptions according to this figure is for 700.000 tons and the amount excluded so far is 170.000 tons. There is no exact date specified by the Japanese Ministry for the postponement however
Japan would go ahead and implement the retaliatory tariffs once they are not satisfied with the US decisions just as in the similar case with the EU fighting against the US tariffs and preparing to implement retaliatory tariffs. EU has also postponed to decide the proposed retaliatory tariffs keeping the right to implement them in the future.
Meanwhile it is reported that a bipartisan group sent a letter to the Treasury Secretary claiming that
Japan, by weakening the Yen against the Dollar is intervening the market and thus providing subsidies to Japanese exporters.