U.S. May Not Lift Japanese Trade Sanctions

WASHINGTON — The Reagan Administration has tentatively rejected a request by Japan that the United States lift $165 million worth of trade sanctions it imposed in 1987 after it charged that Tokyo failed to comply with a semiconductor trade accord the countries had signed.

The decision, which had been expected, comes after two days of discussions between mid-level negotiators from both sides. Although the White House technically still could reverse the ruling by the U.S. Trade Representative’s office, U.S. officials said they believe it will remain intact.

The sanctions, in the form of 100% tariffs on a variety of Japanese-made computers and television sets, represent the remaining part of a package of trade penalties affecting about $300 million worth of Japanese exports that the White House imposed in April, 1987.

Other Sanctions Lifted

President Reagan lifted the other $135 million worth in mid-1987 at the annual seven-nation economic summit in Venice after Japan stopped using illegal predatory pricing tactics to sell its semiconductors in the United States. The remaining $165 million worth was left in force because of Japan’s alleged refusal to live up to promises that it would open its market to more foreign-made microchips.

Japanese officials contended during the latest negotiations that their country had opened its markets significantly since the semiconductor accord was signed, arguing that U.S. chip makers had increased their sales volume in Japan substantially over the last 18 months.

But U.S. officials insisted that the increased opportunities had not been sufficient to mark significant progress toward an unspoken aim of the accord--to enable foreign chip manufacturers to secure as much as 20% of the Japanese microchip market by 1991. U.S. manufacturers still have less than 9% of the overall Japanese market.