THE US and Japan are expected to launch a last ditch effort this week to resolve two long simmering trade disputes over insurance and computer chips before Wednesday's deadline.
Japanese Trade Minister Shunpei Tsukahara and US Trade Representative Charlene Barshefsky plan to meet in Vancouver tomorrow to make a final push for a deal after several days of talks in the Canadian city between trade negotiators.
Sources close to the talks said a EU team led by Mr Peter Carl, a senior European Commission official responsible for international negotiations on new technology and intellectual property, was expected to arrive in Vancouver today.
Pressure is mounting ahead of a July 31st deadline for a settlement set last month by Japanese Prime Minister Ryutaro Hashimoto and US President Bill Clinton. With the prestige of their leaders at stake, negotiators are promising an all out effort ahead of the deadline.
The two powers have a long history of brinkmanship in trade feuds ranging from cars to aviation and recent talks on computer chips and insurance have made scant progress, according to officials.
The current five year deal covering microchip trade expires on Wednesday and the main sticking point over a new agreement is how big a role governments should play in monitoring the openness of Japan's $44 billion (£27.5 billion) computer chip market.
The Japanese last week rejected a US response to its proposals to resolve the row, saying there had been no movement in the American stance. Political analysts say resolution of the chip feud could bear on Clinton's election chances in California, a key electoral state which is home to the large Silicon Valley computer industry.
