Uno's Surprise

Uncertainty about auto imports

Was it an opening negotiating ploy? Soothing words intended for domestic consumption? Or the final word on the politically sensitive subject of Japan's self-imposed lid on U.S. auto imports of 1.76 million vehicles annually? Japan's unilateral promise, which is now in its third year, expires at the end of March 1984. Japan agreed to the restriction only under pressure; now that car sales for Detroit are picking up (12.6% ahead of a year ago), it was expected to resist another extension of the agreement. At a Tokyo breakfast meeting last week with Japanese industrial leaders, Sosuke Uno, the newly appointed Minister of International Trade and Industry, suggested that Japan might not enter into a new agreement after the current one terminates nine months from now.

Uno's remark was a private opinion, not official Japanese policy. Government authorities indicated that they had not committed themselves one way or another on a renewal, but were trying to leave the way clear for future negotiations. Said a spokesman: "I am sure if the situation is still bad for the U.S. side, it will take up this question, and we will have talks about it." Such nuances did not assuage the alarm at Uno's comment among U.S. automen. Said one: "What they seem to be doing is staking out their position for negotiations, but I would observe that their timing is extremely poor." There was no mistaking the reactions of Congressmen with large automotive constituencies. Said Democratic Senator Donald Riegle of Michigan: "The continuing Japanese attack on our basic industries is another Pearl Harbor. The time has come to close America's door to the flood of Japanese imported products." Michigan Congressman John Dingell feared that Uno's statement could portend "a devastating blow to the auto industry."

Dingell is chairman of the House Energy and Commerce Committee, which last month passed a domestic-content bill that would require all cars, including the best-selling imports, to be made in large measure by American workers using U.S. parts. President Reagan has said he will not sign a local-content bill. The Administration has also delayed pressing for a fourth year of import restrictions. In the wake of Uno's unexpected declaration, however, the Administration may have to find a way to reopen the door to negotiations on autos quickly so that it can keep the protectionists at bay. One wedge may the issue of agricultural quotas. The U.S. trade representative's office announced last week that it was complaining to GATT (General Agreement on Tariffs and Trade) in Geneva about Tokyo's excessive import restrictions on U.S. agriculture. That may have moved Uno into a kind of tit for tat. This file is automatically generated by a robot program, so viewer discretion is required.