Ex-Deputy USTR Advises Against Japan-U.S. FTA Talks

Washington, Feb. 5 (Jiji Press)--Former Deputy U.S. Trade
Representative Alan Wolff suggested that Japan and the United States should
strengthen bilateral trade by negotiating deals item by item, rather than
aiming for a free trade accord.

"If we start with the traditional approach of an FTA, we will run
into difficulties immediately without much gain," Wolff, who held the USTR
post under President Jimmy Carter, said in a recent interview with Jiji
Press, pointing out that U.S. Congress is not very supportive of FTAs at
present.
Wolff, now attorney at international law firm Dewey & LeBouef LLP,
said that the New York firm and the Japan Economic Foundation have together
proposed a "building block approach" in which different people engage in
negotiations for different sectors.
There is "room for close collaboration on a whole series of areas,"
he said, pointing out that Japan and the United States have common interests
on such issues as energy conservation and food safety. "But they needn't be
tackled all at once, and not with a single market objective," he said.
Wolff acknowledged that there is so-called "Japan passing" in
Washington at present.
But he also noted that there also is "a feeling in Tokyo that
relations within Asia are more important to be looked to than relations from
the United States, and that's because there are issues to deal with whereas
there are fewer issues to deal with between the United States and Japan."
"If we proceed independently, then there will be an enormous
opportunity cost," he cautioned.
Asked about fears of growing protectionism in the United States,
Wolff said that President Barack Obama's administration "will be committed
to having an open U.S. market."
Though it is "not clear to what extent Buy America can apply going
forward," he said, "I do not see at this stage an outbreak of
protectionism."
Wolff said Washington's call on the Chinese government to "make
sure that its currency is not undervalued is hardly a protectionist action."
But if the Chinese yuan does not appreciate, "there will be strong
pressure from the Congress for further action," he added.