U.S. to push Japan on trade next week in Tokyo

From apples and rice to insurance and steel, U.S.-Japan trade friction is coming back into fashion. But with some of the biggest players in past trade friction dramas sitting this one out, many analysts say Washington is probably not ready for a full-scale trade battle that would hurt its own companies and consumers and send the dollar tumbling. Deputy U.S. Trade Representative R. Fisher will bring a long list of trade friction flash points to discuss with Japanese counterparts next week amid signs two-way tension is rising. Among the matters expected to be discussed during Fisher_s visit are U.S. complaints over a surge in steel imports from Japan and demands for better access to markets for flat glass, car parts, telecoms, rice and apples. U.S. concerns over implementation of a pact on insurance deregulation are also likely to come up, as are its complaints that Tokyo is dragging its feet on deregulation overall. Washington also wants to make sure Japan is doing enough to end its recession and clean up its ailing banking sector. Japan_s huge trade surplus looks set to peak this business year, ending on March 31, but private economists expect it to stay stuck at high levels as the nation_s limp economy dampens demand for imports. America_s deficit with the world, meanwhile, is growing and with November figures just out, is already certain to have posted arecord high in 1998. The U.S. Commerce Department said on Thursday that record imports and a drop in exports pushed the trade deficit higher in November, though lower oil imports and prices capped the rise. U.S. Trade Representative Charlene Barshefsky warned after the data_s release of rising trade tensions if Tokyo stalled on market access. ``From rice to flat glass to autos and insurance, Japan faces renewed friction and mistrust,' she said. Japan seems to be taking the tough talk in stride.