China's IT rules, 'Buy American' key trade concerns for Japan: report+

TOKYO, May 27 Kyodo -
Japan must be ready for possible trade conflicts over such policies as China's
plan to force some foreign-made information technology products to pass the
country's certification and the controversial ''Buy American'' provision by the
United States, a Japanese government report said Wednesday.

The annual report, released by the Ministry of Economy, Trade and Industry,
stressed the concern that the world has become inclined to protectionism amid
the current economic slump, with some countries taking actions that contradict
the principle of trade liberalization under the World Trade Organization.
The 2009 Report on the WTO Inconsistency of Trade Policies by Major Trading
Partners mentioned a total of 118 policies and measures taken by other
countries and regions. The number increased from 113 in the previous year's
report.
China says it plans to introduce a compulsory certification program in May next
year for the public procurement of computer software that installs firewalls as
well as some other IT security products.
The Chinese government says the policy is for its own national security and
designed to prevent cyber terrorism through such means as computer viruses.
However, major economies including Japan, the United States and the European
Union fear the envisaged program would enable Beijing to obtain otherwise
secret information about those technology products.
Japan is likely to press China to drop the plan when economic ministers from
the two countries hold a regular high-level meeting next month.
Protests have been also increasing toward the ''Buy American'' measures with
U.S. President Barack Obama facing mounting pressure to retract them.
The measures came as part of the recent U.S. economic stimulus package,
requiring any project funded by stimulus money to use only U.S.-made steel,
iron and other products.
Facing criticism from its trading partners, the United States says the measures
never contravene existing U.S. trade agreements.
The ministry's report said the Japanese government ''will seek to address those
issues through the WTO's multilateral negotiation framework or in bilateral
talks'' with the countries concerned.
It identified the 15 issues with priority to be resolved, also including
Russia's higher tariffs on auto imports and the European Union's tariffs on
some IT products that Japan believes should be tax-free. The number grew from
nine in the 2008 report.
The ministry also released an additional document this year that refers to
protectionist moves around the world and explains Japan's responses.
It said that 24 policies and measures taken by nine countries and regions since
last fall, when the global financial crisis worsened, could negatively affect
Japan's economy and business activities by Japanese firms.
Those measures include the introduction by Argentina of a system that demands
an advance permit for imports and India's raised tariffs on imported steel
products.
==Kyodo