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IENGO Japan in Trade Isolation 1926-37&1948-85 Michiko Ikeda Ph.D., Economics, Harvard University .7.fl\?A7t..-:A <;)House f Press 'T 106-0032**~m~!X;'\2fs;;j<;S 11-16 MICHIKO IKEDA has a B.A. from Tokyo Women's Christian University, an M.A. from the University of Tokyo, and a Ph.D. in economics from Harvard University. She has worked as an economic and statistical analyst for the General Agreement on Tariffs and Trade (GATT) and has taught as a professor at Tokai University. Her publications include Tainichi Keizai Fusa [Anti-Japanese Economic Enclosure] (Tokyo: Nihon Keizai Shimbunsha, 1992); CATT kara WTO e [From GATT to WTOJ (Tokyo: Chikuma Shobe), 1996); "Senzen no Hogo Boeki to Nihon" [Prewar Trade Protectionism and Japan], in Shin Chikyu Nihon Shi [A New History of Japan from a Global Perspective], vol. 1, edited by Kanji Nishio (Tokyo: Sankei Shimbunsha, 2006). She is also the author of "Protectionism and Discrimination against Japan's Foreign Trade, 1926-1937" (doctoral thesis, Harvard University) and a coauthor of "International Trade" (1975-76, 1976-77, and 1977-78, GA TT Secretariat), both in English. ll1Btl51'A.~~3Z1t~w;p;i Tel: 03-34 70-9059 Fax: 03-3470-31 70 n ...... 0 l..N l..N +< ....... (/) CJ :z '° '""' 00 NI 00 ~ vi I '° mo 00 l..N ~ V1 N I 0 '"I"' ~ Universita' IURV Venezia DEPCIA w 1763 i BIBLIOTECA G. ASTENGO Japan in il'ade Isolation 1926,17&1948-85 Michiko Ikeda Ph.D., Economics, Harvard University WITH A FOREWORD Dwight H. Perkins Research Professor of Economics, Harvard University ISTITUTO U~IVERSITARIO - ARCHITETTURA VE~H:ZIA --- SERVIZI BIBLl~~l1 DOCUMENTALI HIV. CIA ............................ . • '1House I Press Contents List of Tables ................................................................................ v1u Foreword ...................................... ................................................... xi Acknowledgments ......................................................................... xiii PART I: THE PREWAR PERIOD, 1926-37 Chapter 1 RESEARCH OBJECTIVES ....................................... ... .. ...... 1 1. 2. 3. 4. 5. Introduction ................................................................. 3 Definitions of Protectionism and Discrimination ...... 9 Export Trends of Japan's Main Overseas Markets 14 The Japanese Economy in the Survey Period ......... 20 Foreign Trade as a Substitute for "Prerequisites" .. 25 Chapter 2 ANTI-JAPANESE BOYCOTTS AS TRADE BARRIERS IN CHINA ...................................................................... 31 1. Three Factors in the Deterioration of Japan's Trade with China ............... ................................... ............ 33 2. The Anti-Japanese Boycotts in China .......... ............ 40 3. Japan's Export Distortion: Japanese Exports to Sjx Regions of China .............................. ..................... 5 7 4. Distortion in Japan's Imports from China .............. 69 Chapter 3 THE DRASTIC DECLINE OF JAPANESE EXPORTS TO THE UNITED STATES············································· ····· ··· ··· 75 1. Introduction to Japan-U.S. Trade Relations ........... 2. U.S. Intellectuals Support the Boycott ..................... 3. Analysis of the Catastrophic Collapse of :~ Silk Exports ......... ... ...... .......................................... 4. U.S. Tariffs on Manufactured Japanese Products ... v 77 82 86 97 VI CONTENTS <:;hapter 4 BRITISH COMMONWEALTH DISCRIMINATION AGAINST JAPANESE TRADE .................................................... 117 1. Historical Background ............................................ 2. The Japan-Canada Tariff War ................................ 3. Japanese Trade Conflict with British India ........... 4. The Australian Quota System ................................ 5. Egypt and Middle Eastern Countries .................... 119 120 143 155 169 Cbapter 5 JAPAN-NETHERLANDS TRADE SQUABBLES ................. 177 Chapter 6 LATIN AMERICA: THE NEW TRADE FRONTIER ......... 201 1. The Latin American Market ................................... 203 2. Chile and Columbia: The Trade-Balancing System and Treaty Abrogation ........................................ 207 3. Peru and Mexico: Treaty Abrogation and Voluntary Export Restraints .............................. 218 4. Argentina and Brazil: Country Substitution under Strict Import Restrictions ................................... 230 PART II: THE POSTWAR PERIOD, 1948-85 Chapter 7 JAPAN'S ACCESSION TO GATT ................................. 243 Chapter 8 APPLYING GATT ARTICLE XXXV TO JAPAN .......... 269 Afterword ...................................................................................... 293 CONTENTS f APPENDICES I Statistical Tables: 1. Japan's bilateral trade with selected countries .. 305 2. Japan's principal exports in various regions in China ... ... .......................................................... 311 3. Japanese silk exports to the United States, 1925-39 ................................................................ 315 II Original Materials: Unpublished Official Documents 1. The Archives of the Ministry of Foreign Affairs, Tokyo ........................... ......................................... 317 2. The Public Record Office, London, U.K ........... 319 3. The National Archives, Washington, D .C., U.S.A ..................................................................... 320 4. Supplement: Documents concerning Anti-Japanese boycotts ................................................................ 320 NOTES ............ ........... .. ... ... ........ ... .. .. ....... .... .... .. ... .. ...... .... ......... 323 BIBLIOGRAPHY ....................... .... ............... ............ ..... .. ............. 349 INDEX .... .. ... ... ..... ..... ...... ... ... ........ .... .. .... ... ....... .. ... .... ..... .. .... ... ... 359 .. vu U11JJLU 111 11 11 1921033028580 ISBN978-4-903452-07-4 C1033 ¥2858E ltfil (*1*2.858PMU Japan m Trade Isolation, 1926-37 and 1948-85 he J 920s and 1930s were a turbulenr era for the world economy-a nme T of shifting monetary policies, trade protectionism, and the c.reat Depression. Fmergmg on rhc world stage as the first non-Wesrern mdusrrial power, Japan faced charges of dumping and protecaon1sm. This groundbreaking work by Michiko Ikeda examines the harsh env1ronmenr faced hy Japan in the years 1926 to 1937 and agam in che years from 1948 to 1985. Tt draws on original study of League of Karions reports and of declass1f1e:d govemmenr documents in Japan, the Unired Kingdom, and rhe United State\. "T he great advanrage of 1h1s careful historical study 1s that 1t puts m perspective what trade d1scnmmation around che world often emails. Many of rhe argumenrs char one hears today abour the problems created by the rise of rhe Chinese economy have a fami liar ring ro anyone knowledgeable about rhis earlier Japanese story. By looking at this historical Japanese experience, we can see these issue~ stripped of the emotions and politics of the present." Dwight H. Perkins, Research Professor of Economics, I lar11urd U11111ersfP! Order from your booksrore or from I-House Press 5-11 - 16, Ropp<>ng1, Mmato·ku, lokyo 106-0032,Japan E-mail: press<i&i-house.or.Jp '•