As U.S.-Japan Talks Begin, Hopes Fade For a Narrowing of America's Trade Gap
TOKYO -- Despite a new round of trade talks beginning here Friday, U.S. and Japanese officials say they don't see any way to significantly narrow the record U.S. trade deficit with Japan any time soon.</br></br>Japanese officials and business executives already are worrying about a backlash of anti-Japanese trade restrictions next year, sparked by congressional, business and labor pressure in the U.S.</br></br>Economists forecast that the U.S. trade deficit with Japan could exceed $35 billion this year, as much as 75% wider than last year. U.S. trade representative William Brock reportedly told a business group in Los Angeles this week that, unless something is done, the deficit could surpass $40 billion in 1985.</br></br>But Japanese and U.S. trade officials who will take part in the meetings here say they haven't any new ideas for narrowing the deficit.</br></br>"Whatever Japan does, it will be limited," said a Japanese Foreign Ministry official. U.S. trade officials concurred.