5:41 AM Feb 2, 1994

QUAD MEET FAILS TO BUDGE JAPAN

Geneva 1 Feb (Chakravarthi Raghavan) -- A meeting of senior officials of the Quad (Canada, EC, Japan and the US) in Geneva Sunday and Monday, followed by a US-Japan bilateral meeting, does not appear to have persuaded Japan to yield to US demands for further tariff cuts and other market opening opportunities.

The US Trade Representative Mickey Kantor is due in Tokyo on Wednesday for talks with Japanese ministers in terms of the US-Japan bilateral framework agreements.

At the Quad meeting which reviewed the Uruguay Round agreements and the preparations for the Marrakesh ministerial meeting, the US and Canada wanted a 1 Jan 1995 date for the start of the implementation and establishment of the WTO. The EC Commission reportedly said it would have no problem with this, while Japan remained non-committal -- such a date, for Japan, would need adjustments of its parliamentary calendar and the holding of a special session, according to Japanese sources.

In relation to the Marrakesh ministerial meeting and declaration, the US is pushing for a "strong statement" linking environment and trade and for a high-visibility WTO Committee on Trade and Environment.

Discussions though did not reportedly result in a clear Quad view on the content of the ministerial declaration or the trade/environment issue. But Amb. Hidetoshi Ukawa, Japan's chief Uruguay Round negotiator, who also chairs the GATT working group on Environmental Measures and International Trade (EMIT) is however reported to have cautioned the Quad partners on this, recalling both the very strong opposition of the developing countries during the negotiations for incorporating such a provision in the WTO draft agreement. He also drew attention to the agreement for a Marrakesh decision to develop a work programme and the gradual cooperative and consensus approach now developing on this issue within the GATT and need to maintain and build on it, rather than pressure the developing countries.

The US is reported to have pressed Japan, both in the Quad and in the bilateral, to increase its market access package. Germain Denis who chaired the market access negotiations, and represented Canada at the meeting, however confirmed Japan's view that negotiations had been concluded and Japan (or any other country) could not be forced into further negotiations, though any country could "improve" its offer till 15 February (deadline for filing schedules).

The US is pressing Japan to agree to have zero tariffs on copper and copper products, wood and wood products, white spirits and leather products. Japan has taken the view that its tariff cuts amount to more than a trade-weighted 50 percent average (and nearly 80 percent in terms of US-Japan trade), while the US has a much lower average, about 35 percent.

These questions, as well as US demands for 'numerical targets' for Japanese imports and financial services issues are to be taken up at the Tokyo talks between Kantor and Japanese ministers.