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US's Summers ends Japan visit with trade warning
By Yuko Yoshikawa
TOKYO, Feb 27 (Reuters) - U.S. Deputy Treasury Secretary Lawrence Summers wrapped up a visit to Japan on Saturday with a
warning about rising protectionist pressures in the United States, especially over steel issues.
Summers told Japanese Trade Minister Kaoru Yosano in a meeting on Saturday that bilateral trade issues required cautious handling,
Japanese officials said.
The officials of the Ministry of International Trade and Industry (MITI) said Summers also warned Yosano that protectionist pressures were rising in the United States,
with a trade row over steel contributing to the friction.
The United States has complained about a surge in steel exports from Japan, South Korea, Russia and Brazil following the outbreak of the Asian financial crisis in 1997.
Earlier this month, the U.S. Commerce Department set hefty preliminary dumping duties on Japanese and Brazilian hot-rolled steel imports in response to U.S. industry
complaints.
The duties will not become final until after the department issues a final ruling and are conditioned on whether the independent U.S. International Trade Commission finds
the domestic industry is being harmed by the imports.
On a separate trade issue, Japan said it would welcome China's entry into the World Trade Organisation, while Summers reiterated the U.S. position that such an entry is
dependent on China meeting certain market access conditions, the officials said.
Summers also told Yosano that it was extremely important for the Japanese economy to recover in the next two years, stressing that deregulation on the ''demand-side''
was needed in order to achieve that recovery, MITI officials said.
The officials said that there was no specific request made from Summers on ways to boost overall domestic demand in Japan.
The MITI official said there was no discussion of monetary or fiscal economic policies or currency levels.
On Friday, Summers stressed to Japan that the cure for its flagging economy depended on macroeconomic steps -- such as tugging monetary policy levers -- and not on a
weaker yen.
''The exchange rate cannot be a substitute for policy,'' Summers told a media luncheon.
During the trip, Summers reiterated the U.S. position that Washington wants Tokyo to pursue policies that will deliver strong domestic demand-led growth and contribute
to a more balanced pattern of growth in the world economy.
Summers' Japan stay ended a five-nation Asian tour which started earlier this week. He has visited Indonesia, Singapore, China, South Korea and arrived in Japan on
Thursday.
He returns to the United States later on Saturday.
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