Clinton report: China, European Union, Japan, practicing unfair

WASHINGTON -- The Clinton administration's annual report on foreign trade barriers says China, the European Union and Japan continue to have unfair practices that hurt U.S. exports, services and agricultural goods.

The survey, released Thursday by the Office of the U.S. Trade Representative, lists significant practices harmful to American products by 54 trading partners, including its six largest: Canada, China, the European Union, Japan, South Korea and Mexico.

According to the report, the administration found China's "interlocking and pernicious market access barriers" a serious concern. "China's tariffs remain high, particularly when compared to those of other major participants in the global trading system and restrictive licensing, investment, and distribution practices make it difficult for exporters to penetrate Chinese wholesale and consumer markets," the report said. However, the administration said it was encouraged by China's recent progress in enforcing anti-piracy efforts to protect computer software, videos and CD-ROMs. Although U.S. Trade Representative Charlene Barshefsky left Beijing this week without reaching a deal to allow China to join the World Trade Organization, the report said the administration is "actively engaged in negotiations" to secure the goal "on commercially meaningful terms." On its economic relationship with Europe, "the largest and most complex in the world," the administration said that battles with the European Union over bananas and beef have "not only hurt U.S. exports but have undermined the credibility of the WTO dispute settlement system." Despite hundreds of billions of dollars that are exchanged unhindered in annual two-way trade and investments, the report found that "the EU's protectionist agriculture policies are likely to continue to cause disputes, unless addressed in upcoming multilateral trade negotiations." The administration, in its segment on Japan, said the country continues to make opening its markets to U.S. exports a top priority, "emphasizing the need for implementation of fiscal stimulus and reform of Japan's financial sector." It said the administration would press Japan to implement further deregulation measures in telecommunications, medical devices, housing and pharmaceuticals. The report called South Korea "one of the toughest markets in the world for doing business." It commended the current Korean administration for implementing efforts to put its economy on a more open, market-oriented basis, in response to the Asian financial crisis. "Resistance to key trade reforms remains, however, and many issues have arisen on Korea's compliance with its international obligations," the report said.

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