Japan May Impose High Tariff on Salt Imports From China

Japan may impose high tariffs on salt imports from China to protect domestic manufacturers when the salt market is fully opened up next April, a government official said Monday.

The tariffs, if confirmed, would escalate a heated trade dispute sparked by a decision in Tokyo to slap extra charges on certain farm goods mainly from China earlier in the year.

Extra import charges "have been included in talks" by the finance ministry's panel on salt business, the ministry official said.

Japan's finance ministry would impose tariffs of 35-50 percent on table salt imports from China to raise the price of Chinese goods to the same level as domestic salt, the Nihon Keizai Shimbun newspaper reported Sunday.

It would maintain high tariffs of Chinese salt for three years from when the market for salt imports is fully opened next year, said the economic daily.

"Some panel members have voiced such an opinion as a future measure" after the market is totally open, the ministry official said, adding "no specific schedule has been decided yet."

Japan's salt industry had been a state monopoly from 1905 to April 1997 when the Salt Law was implemented to allow seven Japanese manufacturers to operate alongside a specially established Salt Industry Center of Japan, which controls all salt imports under a certain quota.

The finance ministry oversees the whole operation and plans to lift the import quote next April.

Refined salt for table salt made by the seven Japanese companies is priced at 3,000-4,000 yen (US$24-32) per ton higher than the Chinese equivalent.

Imports from China accounted for less than one percent of all salt imports by Japan in the year to March, but the volume is expected to surge after the market is opened.

Japan also imports industrial-use salt from Australia and Mexico. But they would not be subject to high tariffs with no Japanese companies manufacturing it, the Nihon Keizai said.

Beijing has already expressed objection to Tokyo's move in late April to slap emergency tariffs on imports of spring onions, fresh mushrooms and tatami rushes.

China, the top exporter of these products to Japan, was the government's main target.

In retaliation, Beijing last month imposed 100 percent extra tariffs on automobiles, mobile telephones and air conditioners made in Japan.

(Chinadaily.com.cn 07/16/2001)