There's Plenty of Blame to Go Around

AFTER YEARS OF ENDURING THE WORLD'S CRITICISM of its trading practices, Japan last week dished out some of its own. In a 212-page Report on Unfair Trade Policies by Major Trading Partners, an advisory group to the Ministry of International Trade and Industry (MITI) outlined the trading patterns of 10 regions, including the U.S., the European Community, Korea and Singapore. The report pointed out violations of fair trade by each area in 10 separate categories, such as quotas, anti-dumping measures and government procurement. The U.S. fared worst of all, with black marks in nine out of 10 categories. The report cited, for example, American pressures on Japan to limit its auto exports as an unfair quota. The E.C. and Korea came in next with violations in six categories.

"All countries are sinners," declared the report, which proclaimed itself designed to "bring a dispassionate and constructive approach" to the discussion of trade. The only problem was that the timing could not have been worse. Japan's global trade surplus -- about $78 billion last year -- is soaring toward record levels. Last week a House Ways and Means subcommittee passed a trade bill with provisions for sanctions aimed at Japan. U.S. officials saw the miti report as simply the accused pointing its finger at the accuser. "People who live in glass houses should be careful about their stones," declared White House spokesman Marlin Fitzwater. House Democratic leader Richard Gephardt said Japan "doesn't have the credibility to call others unfair."

Americans weren't the only ones irked by Japan's sudden assertion that other countries violate free trade. Japanese industry officials, many of whom have followed MITI orders to limit exports and market shares in order to ease trade friction, felt the report only fueled the frustrations of foreign traders. "I don't understand why they put out such a report," said a Japanese auto executive. "MITI would never have allowed us to say such things."

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