Taxing Tokyo's Transplants

As the U.S. and Japan struggle over auto trade, congressional trade hawks are turning up the heat on Tokyo. In a June 21 letter to Commerce Secretary Ronald H. Brown, Senator Ernest F. Hollings (D-S.C.) is urging that free-trade-zone status be denied to new Japanese plants opened in the U.S. The current 200 zones allow companies to import parts duty-free if their plants create enough jobs for Americans. Hollings also wants the Commerce Dept. to review existing transplants--including seven from Japanese auto manufacturers--and revoke FTZ status for any that are not meeting their job-creation requirements.

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