Tokyo's overdue trade changes

It is no secret that Japan's vigorous, forceful and, some would say, selfish trading policies have aroused concern in some countries in recent years. That concern was expressed vehemently by American, French and British delegates attending last month's Asia Pacific Economic Cooperation meeting in Vancouver.

The gist of their message to Tokyo was: Your economy should not be driven by exports. Your GDP growth should be generated by your own retail and other domestic sectors.

There has been a widespread feeling in the United States and Western Europe that the Japanese have benefited more than anybody else from the international trading system, yet they have done little to help make it work well.

United States President Bill Clinton has impressed on Japanese Prime Minister Ryutaro Hashimoto the need to spur Japan's economy in order to increase U.S. exports and cut America's huge trade deficit with Japan.

In Asia, too, there is a feeling that Japan has profited from its trade relations in the region but has not done enough to help some of the poorer nations.

At the recent meeting of the Association of Southeast Asian Nations (ASEAN) in Kuala Lumpur, Mr. Hashimoto was urged to make Japan's economy better serve the interests of its own consumers and the regional economy.

It would probably be politically damaging to Mr. Hashimoto to suggest that he has now bowed to that pressure. However, the economic measures being planned by Tokyo will help reduce Japan's ballooning black-ink trade balance with much of the rest of the world.

ASEAN countries also will benefit if the economic package succeeds in kickstarting the faltering Japanese economy. This will help to restore confidence in other parts of Asia that have been battered by currency depreciation and bankruptcies. And it is about time, too.

-- The Hong Kong Standard