Historical Dictionary of United States-Japan ... - Bakumatsu Films

SUPER 301 PROVISIONS OF THE OMNIBUS TRADE • 239
Japan cited seven structural impediments in the American economy,
including savings, investment patterns, corporate investment
activities and productive power, and corporate behaviors. Japan not
only pointed out the necessity of increasing individual savings rates
and efforts to reduce fiscal deficit, but also suggested ideas for American
corporations to recover their competitiveness. On the other hand,
the United States indicated six structural impediments in the Japanese
economy including savings and investment patterns, the product
distribution system, and exclusive trade practices.
It is important to note that because both Japan and the United States
recognized that contributing to solving foreign trade imbalance problems
and developing smooth economic relations between Japan and
the United States would be essential conditions for the world economy
to achieve balanced growth, these countries decided to carry out the
SII. In particular, it was epoch-making that the United States, which
had often unilaterally passed the responsibility for trade friction to
Japan, actually recognized that there were many structural impediments
within the United States itself and it demonstrated its willingness
to tackle the problems. The SII was not a negotiation, but an exchange
of ideas to deal with structural impediments by friendly nations in various
fields. See also U.S.–JAPAN TRADE CONFLICTS.
SUPER 301 PROVISIONS OF THE OMNIBUS TRADE AND
COMPETITIVE ACT OF 1988. The Super 301 provisions of the
Omnibus Trade and Competitiveness Act of 1988 were enacted into
law by the United States in 1988. The law was created to help identify
countries, categories of foreign businesses, and import items that
were associated with unfair trading practices based on annual U.S.
government surveys. If an unfair trading practice was discovered, the
Super 301 law provided a grace period during which the U.S. government
was to negotiate an end to the practice with the offending
country. If an agreement could not be reached, the law allowed Washington
to impose trade sanctions.
The Super 301 law was only valid for a short period. It expired in
1997, after being extended twice. However, through presidential order
by President Bill Clinton on 1 April 1999, the Super 301 provisions
were revived owing to new appearances of trade friction following
the increase of the U.S. trade deficit and exteriorization of