JAPAN TO U.S. . . . CAN WE TALK?

Japan urgently requested talks with the U.S. in the wake of Trade Representative Mickey Kantor'sthreat to double tariffs on 13 Japanese luxury cars. Japanese Trade Minister Ryutaro Hasimoto says he will immediately file a case with the World Trade Organization accusing the U.S. of violating WTO rules with its proposed sanctions, a caseTIME Brussels Bureau Chief Jay Branegansays the Japanese are almost certain to win. "The WTO says Japan has a very good chance of winning. These sanctions are pretty blatantviolations of free trade." Kantor says the U.S. will file a suit of its own, which Branegan says will be much harder to prove. "It's what's called a non-violation case. The U.S. will argue that the entire Japanese system hinders free trade. While this may be true, getting the court to agree to this interpretation is setting out in uncharted legal waters, and the case could take a long time to decide."