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Japan Economic Newswire | By Yoichi Kosukegawa | July 11, 2003

U.S. Trade Representative Robert Zoellick urged Japanese farm minister Yoshiyuki Kamei on Friday to take the lead in breaking the impasse over farm trade liberalization to achieve a successful World Trade Organization (WTO) ministerial meeting in September.

At a news conference after their meeting, Kamei said Zoellick told him that the new round of global trade talks will face a substantial delay if the WTO meeting at the Mexican beach resort of Cancun ends in failure.

Zoellick showed understanding about the difficulties faced by Japan in opening up its politically sensitive agricultural market, but said Japan can cooperate with the United States in reducing subsidies to support domestic farmers and promoting exports, according to Kamei.

Kamei, who is also in charge of forestry and fisheries affairs, said Zoellick asked Japan to give foreign marine and forest products greater access to the Japanese market as well as to cut subsidies to the fisheries industry.

Kamei said he told Zoellick that Japan is steadily reforming its agricultural sector and that the U.S. needs to 'reconsider its too ambitious way of thinking' for a successful Cancun meeting.

The new round of global trade talks, launched by the WTO in Doha, Qatar, in November 2001, have been stalled mainly because of the deadlock in farm trade negotiations.

The WTO failed to reach an agreement by its self-imposed deadline of March 31 on basic formulas on agricultural trade liberalization, reflecting the confrontation between farm-produce importers, including Japan and the European Union, and exporters like the U.S.

Farm exporters are seeking substantial cuts in tariffs on farm imports as well as agricultural subsidies, but importers favor a gradual reform.

The upcoming Cancun meeting is seen as a key to a successful conclusion of the new round by its deadline of Jan. 1, 2005.

Kamei, meanwhile, said he told Zoellick that Japan will impose emergency curbs on beef imports if import data meet legally set conditions.

'There is nothing I can do at my discretion,' Kamei said at the news conference.

The U.S. has voiced repeated opposition to the planned import curbs.

Under the law introduced based on WTO rules, Japan can automatically increase its beef tariff from 38.5% to 50% if there is a year-on-year increase of more than 17% in beef imports on a cumulative quarterly basis.

Beef imports in the April-June quarter surged following a plunge in the same period last year when consumers shied away from beef after mad cow disease was discovered in Japan.

The beef tariff is expected to be raised to 50% on Aug. 1.

Kamei arrived in Washington on Thursday and met U.S. Agriculture Secretary Ann Veneman later in the day.

Kamei flew to Ottawa on Friday afternoon for talks with Canadian Agriculture and Agri-Food Minister Lyle Vanclief on Saturday.

He will return home Sunday.Japan Economic Newswire:

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