Japan is doing its part to reach a trade agreement with the United States and expects more cooperation from Washington, Japan's prime minister said Monday. His comments raised the likelihood of a clash over trade as Washington's Sept. 30 deadline for an accord nears.
Prime Minister Tomiichi Murayama spoke in Singapore.To reduce Japan's $60 billion annual trade surplus with the United States, Tokyo must cut taxes to stimulate consumption, speed up deregulation and work on a long-term plan for more public investment, Murayama said.
Japan is already taking action in those three areas, all the subject of American demands.
But Murayama gave no indication of flexibility on Washington's demand that Tokyo set benchmarks to measure whether American imports are increasing. "Japan will play its part, and I hope the United States will play its," he said.
Unless a trade agreement is reached by Sept. 30, the Clinton administration has said it will single out Japan under the Super 301 trade law, clearing the way for sanctions against Japanese goods.