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November 2, 2001



Japan/China:New Trade Dispute Might Be Imminent

Japan said on Tuesday it may extend its import curbs on three farm products that come mostly from China, signalling that a showdown over a trade dispute between the Asian neighbours might be imminent.

Japan, which triggered a trade row with the 200-day interim tariffs, is considering rolling them over for a maximum four years upon expiry in November, an agriculture ministry official said.

"We have the November 8 deadline, so we are coming to a stage where we have to make up our minds," the official said. She added that the agriculture, trade and finance ministries have been in talks over whether to extend the import curbs.

"But we also have to take into consideration China's position, so nothing is decided yet."

In April, Japan slapped a 256 percent import tariff on leeks to protect its farmers, whose livelihood it says has been threatened by an influx of Chinese produce. Tokyo also imposed similar duties on shiitake mushrooms and rushes for tatami mats used on the floors of Japanese homes.

China striked back by slapping punitive tariffs on Japanese automobiles, mobile phones and air conditioners.

Talks between top-level government officials last month ended without any concession, and the Japanese agriculture ministry official said it would be difficult to foresee another high-level meeting without prospects for a resolution to the problem.

"If it's just going to be the same thing all over again, it would be meaningless," she said.

( chinadaily.com.cn 08/28/2001)

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