|
Order bars Japanese ships from U.S. ports
Trade dispute escalates between economic superpowers
October 16, 1997
Web posted at: 10:16 p.m. EDT (0216 GMT)WASHINGTON (CNN) -- The United States will stop Japanese cargo ships from entering its ports Friday and will detain Japanese ships already in American harbors -- the latest move in an escalating dispute between two of the world's largest trading partners.
On Thursday, the U.S. Maritime Commission, an independent federal agency that enforces shipping regulations at U.S. ports, voted to direct the Coast Guard to keep Japanese ships out. It also voted to direct the Customs Service to detain ships already at U.S. ports.
Barring an 11th-hour agreement between the two sides, the action against Japanese ships will begin later Friday, after the maritime commission formally notifies the Coast Guard and Customs Service.
The commission took the action after three Japanese shipping companies refused to pay $4 million in sanctions imposed by the United States. Those sanctions, which apply to cargo ships but not oil tankers, were in retaliation for what American officials see as restrictive practices against U.S. shippers in Japanese ports.
More than $180 billion worth of goods travel each year between these two economic superpowers. Thursday's action marks the first time in more than a decade that the United States has imposed trade sanctions on Japan, and it is believed to be the first time the maritime commission has used its statutory authority to block another country's entire shipping fleet.
Clinton will review decision
U.S. analysts said the biggest immediate impact could be on American stores trying to stock up on Japanese goods, particularly electronic goods, in time for the upcoming Christmas season.
"The funds were due last night . . ." -- Harold Creel, chairman of the maritime commission 
216 K / 20 sec. AIFF or WAV sound The commission voted 4-0 to impose the sanctions. President Clinton can override the commission's decision on national security grounds.
One administration official, speaking on condition of anonymity, said it was unlikely the president, on a trip to Argentina, would intervene. However, White House spokesman Mike McCurry said Clinton administration officials would review the order. U.S. Trade Representative Charlene Barshefsky, Treasury Secretary Robert Rubin and other cabinet officials were scheduled to meet Friday, according to the White House.
Talks between Japanese and American negotiators continued Thursday night, but U.S. officials said it was unlikely that there would be any word on results until Friday.
"The Japanese sent in a counteroffer late (Thursday) afternoon. There is some movement, but we are not there yet," an administration official told Reuters, also speaking on condition of anonymity.
Sanctions started in September
On September 4, the United States began imposing a sanction of $100,000 per port visit on vessels operated by three Japanese shipping companies. The companies -- Kawasaki Kisen Kaisha Ltd., Mitsuit O.S.K. Lines Ltd. and Nippon Yusen KK -- carry about a third of U.S.-Japanese shipping traffic.
The Japanese shippers had until Wednesday to actually start paying the sanctions.
"They missed the deadline. They missed their chance," said Harold Creel, chairman of the maritime commission.
But the Japanese companies said Thursday they did not pay the sanctions because talks to resolve the trade dispute were still under way.
At the heart of the dispute is a system called "prior consultation" that requires U.S. companies to submit their shipping plans to a Japanese harbor association, made up of labor groups and port businesses.
American carriers complain that the system increases their costs and gives Japanese unions and competitors veto power over their business plans.
Reuters contributed to this report.
Related stories:
- U.S. shipping sanction threat angers Japan - February 27, 1997
Related sites:
Note: Pages will open in a new browser windowExternal sites are not endorsed by CNN Interactive.
|
Sound off on our message boards You said it... |
|
© 1997 Cable News Network, Inc.
All Rights Reserved.