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Goals, decision-making mechanisms and instruments in the Japanese-American trade conflict

  • International Trade
  • Published:
Intereconomics

Abstract

Trade conflicts flaring up at intervals have become a feature of economic relations between Japan and the USA. The following article examines the history of these conflicts against the background of the two countries’ differing political traditions, goals, negotiating mechanisms and policy instruments.

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References

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  5. Cf. B. Bluestone, B. Harrison: The Deindustrialization of America, New York 1982; and B. Babbitt: The States and Reindustrialization, in: Economic Impact, Vol. 14 (1986), No. 1, pp. 54–59, esp. p. 55. (Since Clinton entered office in January 1993, Babbitt has been the US Interior Secretary).

  6. Cf. G. Schnabl: Balance of Trade and Government Intervention —Japan as a Role Model?, in: INTERECONOMICS, July/August 1996, pp. 189–196.

  7. For a comprehensive survey of the structural development of the trade dispute see M. Itô: Introduction to Foreign Trade (original title in Japanese), Tokyo 1997, pp. 314 f.

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  10. For a survey of the implementation of Section 301 in the 1975–1990 period, see I. M. Destier: American Trade Politics, 2nd ed., New York 1992, pp. 404–431.

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  12. (cf. Neue Zürcher Zeitung: Zauberlehrlinge in der U.S.-Handelspolitik, 31st Jan./1st Feb. 1997, No. 24, p. 13).

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  15. See, for example, K. B. Pyle: The Japanese Question: Power and Purpose in a New Era, Washington, D.C. 1992; and K. Hamada: Behind the US/Japan Trade Conflict, in: The World Economy, Vol. 18 (1995), No. 2, pp. 269–294, esp. p. 283.

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  18. Cf. T. Ikuta: Kanryo, Japans Hidden Government, 1995, pp. 26f.

  19. (Cf. Y. Sone: Structuring Political Bargains: Government, Gyokai, and Markets, in: G. D. Allinson, Y. Sone (eds.): Political Dynamics in Contemporary Japan, Ithaca, N.Y., London 1993, pp. 295–306, pp. 301 f.)

  20. Cf. M. Taniguchi, op. cit., p. 37.

  21. Cf. D. I. Okimoto, op. cit., Between MITI and the market: Japanese Industrial Policy for High Technology, Stanford 1989.

  22. Cf. K. Ôyama: The Political Economy of Administrative Control (original title in Japanese), Tokyo 1996, pp. 189f.

  23. Cf. M. Taniguchi, op. cit., p. 31 f.

  24. Cf. S. Nanjô: Joint efforts to solve the trade dispute, in: H. Shimada et al.: End the US/Japan trade dispute (original title in Japanese), Tokyo 1995, pp. 53–91, esp. p. 71.

  25. Cf. K. Hamada, op. cit., Behind the US/Japan Trade Conflict, in: The World Economy, Vol. 18 (1995), No. 2, pp. 186 f.

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  27. Cf. A. M. El-Agraa: VERs as a Prominent Feature of Japanese Trade Policy: their Rationale, Costs and Benefits, in: The World Economy, Vol. 18 (1995), No. 2, pp. 219–235.

  28. Cf. Asahi Shimbun: Change in Self-imposed Export Restrictions to US (original title in Japanese), 19th Oct. 1983, Evening Edition, p. 3.

  29. Cf. M. Itô, op. cit., Introduction to Foreign Trade (original title in Japanese), Tokyo 1997, p. 314.

  30. Cf. T. Kondô: How Japanese-American relations have to cnange, in: H. Shimada et al.: End the US-Japan trade dispute (original tille in Japanese), Tokyo 1995, pp. 93–140, esp. pp. 118 ff.

  31. Cf. Y. Mikanagi, op. cit., Japan’s Trade Policy: Action or Reaction?, London, New York 1996, pp. 14 ff.

  32. Cf. T. Kondô, op. cit., How Japanese-American relations have to change in: H. Shimada et al.: End the US-Japan trade dispute (original title in Japanese), Tokyo 1995, p. 122.

  33. (cf. United States Trade Representative, op. cit., p. 107). (cf. T. Kondô, op. cit., How Japanese-American relations have to change, in: H. Shimada et al.: End the US-Japan trade dispute (original tille in Japanese) Tokyo 1995, pp. 122 ff.)

  34. Cf. Y. Mikanagi, op. cit., Japan’s Trade Policy: Action or Reaction?, London, New York 1996, pp. 48 ff.

  35. Cf. N. Yasuda: Japan’s balance-of-trade disequilibrium and its import promotion measures, in: nihon keizai seisaku gakkai (ed.): The Japanese Economic and Social System (original title in Japanese), Tokyo 1995, pp. 155–159, p. 156.

  36. Cf. GATT: Trade Policy Review: Japan 1994, Vol. 1, Geneva 1995, pp. 73ff.

  37. Cf. F. C. Bergsten, M. Noland: Reconcilable Differences? United States-Japan Economic Conflict, Washington, D.C. 1993, pp. 127 ff.

  38. Cf. M. Itô, op. cit. Introduction to Foreign Trade (original title in Japanese), Tokyo 1997, pp. 335f. (cf. S. Callon: Divided Sun. MITI and the Breakdown of Japanese High-Tech Industrial Policy, 1975–1993, Stanford 1995).

  39. Cf. S. Nanjô, op. cit., Joint efforts to solve the trade dispute, in: H. Shimada et al.: End the US/Japan trade dispute (original title in Japanese), Tokyo 1995, p. 56.

  40. Cf. F. C. Bergsten, M. Noland, op. cit., Reconcilable Differences? United States-Japan Economic Conflict, Washington, D.C. 1993, p. 132.

  41. Personal interview with Mr S. Matsushima, Ministerial Secretary at MITI, on 14th Oct. 1997.

  42. For a detailed description of negotlations and their results, see J. Levinson: Carwars: Trying to Make Sense of U.S.-Japan Trade Frictions in the Automobile and Automobile Parts Markets, in: R. C. Fenestra (ed.): The Effects of U.S. Trade Protection and Promotion Policies, Chicago, London 1997, pp. 11–32.

  43. (cf. MITI: Japanese-American Automobile Negotiations (original title in Japanese), Tokyo 1997, pp. 319 ff.)

  44. Cf. S. Nanjô, op. cit., Joint efforts to solve the trade dispute, in: H. Shimada et al.: End the US/Japan trade dispute (original title in Japanese), Tokyo 1995, p. 55.

  45. Cf. W. M. Morrison, W. H. Cooper, D. K. Nanto: A “Managed Trade” Policy Toward Japan?, Part 1, Tokyo 1994, p. 1.

  46. Cf. M. Itô, op. cit., Introduction to Foreign Trade (original title in Japanese), Tokyo 1997, pp. 336 f.; K. Ishiguro: Japan’s Course in the Trade Disputes: a Vision for the 21st Century (original title in Japanese), Tokyo 1996, pp. 61 ff.

  47. Cf. S. Nanjô, op. cit., Joint efforts to solve the trade dispute, in: H. Shimada et al.: End the US/Japan trade dispute (original title in Japanese), Tokyo 1995, p. 55.

  48. Cf. JETRO: Trade between Japan and the World: JETRO White Paper (original title in Japanese), Tokyo 1994, p. 119. see K. Ishiguro, op. cit., Japan’s Course in the Trade Disputes: a Vision for the 21st Century (original title in Japanese), Tokyo 1996, pp. 60 ff.

  49. Cf. K. Ishiguro, op. cit., Japan’s Course in the Trade Disputes: a Vision for the 21st Century (original title in Japanese), Tokyo 1996, pp. 65 f.

  50. Cf. M. Itô, op. cit., Introduction to Foreign Trade (original title in Japanese), Tokyo 1997, p. 312.

  51. Cf. S. Nanjô, op. cit., Joint efforts to solve the trade dispute, in: H. Shimada et al.: End the US/Japan trade dispute (original title in Japanese), Tokyo 1995, p. 55.

  52. Cf. W. M. Morrison, W. H. Cooper, D. K. Nanto, op. cit., A “Managed Trade” Policy Toward Japan?, Part 1, Tokyo 1994, p. CRS-20.

  53. Cf. S. Nanjô, op. cit., Joint efforts to solve the trade dispute, in: H. Shimada et al.: End the US/Japan trade dispute (original title in Japanese), Tokyo 1995, p. 56.

  54. Cf. M. Itô, op. cit., Introduction to Foreign Trade (original title in Japanese), Tokyo 1997, p. 313.

  55. Cf. MITI: Statement by Minister of International Trade and Industry Shunpei Tsukahara, in: News from MITI, No 19/1996, 14th June 1996; MITI: Surging Imports and “Mirror Images”: The Photographic Film and Paper Market in Japan, in: News from MITI, No. 20/1996, 14th June 1996.

  56. Cf. Neue Zürcher Zeitung: Keine Marktabschottung Japans durch Fuji, 8th Dec. 1997, p. 7.

  57. Cf. Nikkei Sangyo Shimbun: The Japan/US Trade Conflict in the Film Market (original title in Japanese), 26. 6. 1997, p. 24.

  58. (cf. Singapore Press: Record US Gap May Put Trade in Sharp Focus at China Talks, 23rd Oct. 1997, Internet Edition).

  59. Cf. Neue Zürcher Zeitung: Entschärfung des Hafenstreits USA— Japan, 20th Oct. 1997, No. 243, p. 7; Frankfurter Allgemeine Zeitung: Der Hafenkonflikt ist beigelegt, 29th Oct. 1997, No. 25, p. 17.

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  1. University of Tübingen, Germany

    Gunther Schnabl & Indira Gurbaxani

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  1. Gunther Schnabl
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Schnabl, G., Gurbaxani, I. Goals, decision-making mechanisms and instruments in the Japanese-American trade conflict. Intereconomics 33, 126–135 (1998). https://doi.org/10.1007/BF02926820

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