Thu, 22 Jun 1995

Japan's real trade wrongs

President Clinton's decision to impose sanctions on Japan for keeping out American cars and car parts has deflected attention from two other trade disputes in which Tokyo is in the wrong. One involves Federal Express, the other Kodak. In the Kodak case, recently disclosed Japanese documents show in detail how Tokyo helped block the American company in violation of its own laws and policies.

Japan has also violated a 1952 aviation accord with the United States by denying an application by Federal Express to fly cargo through Japan to its new hub at Subic Bay, the former American naval base in the Philippines. The Clinton administration announced this week that it was preparing to impose sanctions against Japanese carriers if Japan did not back down. Japan, in turn, threatened to retaliate if America levied sanctions.

Despite the threat of a trade war, the Clinton administration's aggressive tactics are fully justified. Japan's excuse for violating the aviation accord -- that it gives unfair advantage to American carriers -- is true but lame. The right way to get out of a bad accord is to negotiate a new one, which would require Japan to give up something to win something. Japan wants to renegotiate first and let Fedex fly second. Clinton has every legal and ethical reason to reverse the order. What sets this case apart from the auto dispute is that sanctions to enforce a bilateral aviation accord violate no international treaty. The auto sanctions violate newly established trade rules that the United States fought hard to achieve and get approved by Congress.

-- The New York Times