[PEN-L:5171] Re: Trade Sanctions

[djones@xxxxxxxxxxxxxxxxxxx (jones/bhandari)]

I think Jerry Levy is right: the attempt to open up the Japanese market is
key. Isn't this what Laura Tyson has argued is the primary problem in US
trade relations with Japan? But why the emphasis on the Japanese market? Is
it in fact more closed the French, German or Italian market?

Is Clinton serious about a tax on Japanese luxury cars?   Wouldn't such a
tax hurt many US firms which provide high-value added electronics, designs,
distribution and advertising to Japanese luxury car builders? Aren't big
chunks of these cars made in the US?

The big issues for US capital seem to be its ability to penetrate Japanese
networks and to open up foreign direct investment in Japan. Exports seem to
follow FDI (with all profits going home).  What are we to make of the
heightened concern over foreign direct investment? Has the export of
productive capital become more pressing than the traditional concerns over
commodity or money capital export? If so, why? And what does it mean?

And one last question: is it possible that Japanese monopoly capital itself
feels trapped by some of its domestic suppliers? Perhaps the Japanese big
bourgeoisie is itself interested in breaking free from its own networks and
creating the opportunity to turn to certain American suppliers when they
are decisively superior?  Is this possible?

Rakesh