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US eager to extend flat glass pact with Japan

The Office of the US Trade Representative has indicated its eagerness to extend the 1995 Japan-US flat glass trade agreement that was to expire at the end of 1999.
In a statement issued by the office…

The Office of the US Trade Representative has indicated its eagerness to extend the 1995 Japan-US flat glass trade agreement that was to expire at the end of 1999. In a statement issued by the office, Deputy US Trade Representative Richard Fisher said, “we remained concerned that anti-competitive behavior continues to pervade Japan“s flat glass market.” “We know that problems still exist in Japan“s flat glass market,” Fisher said. “We look forward to working together with the Japanese government to resolve these problems, and we will consider all available options as we seek to do so,” he said. The US has already requested to extend the trade agreement, but a diplomatic source said Japan has no intent to do so. Japan-US talks on the issue in November and December failed to produce any agreement. The statement noted the agreement has had some important successes. “For example, it resulted in Japan“s adoption of energy conservation standards in the housing sector that are already boosting demand for insulating glass, a high-value-added product that will benefit Japanese and American manufacturers alike.” However, it said, important objectives remain unfulfilled. On 21 December, Japan“s Fair Trade Commission issued warnings to five Japanese glass industry associations and affiliates, including a subsidiary of Japan“s largest flat glass manufacturer, Asahi Glass Co. “These organizations reportedly colluded to intimidate distributors who purchased foreign-manufactured auto replacement glass through price discrimination and other methods,” the statement said. It also noted that data of Japan“s Ministry of International Trade and Industry show that most Japanese distributors believe that foreign flat glass manufacturers offer equal or better prices, quality and service than Japanese manufacturers. Yet the world“s four leading non-Japanese flat glass manufacturers still sell an insignificant amount of glass to Japan, it said.

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