The United States and Japan reached a trade agreement Monday that could double U.S. exports of beef and oranges to more than $1 billion a year, U.S. Trade Representative Clayton Yeutter said. ``My judgment is that this will turn out to be a landmark agreement in U.S.-Japan economic relations,'' Yeutter said following marathon talks with Japanese leaders. The agreement calls on Japan to nearly double its imports of beef by 1991, and phase out involvement by Livestock Industry Promotion Corp., which currently controls most beef imports. Japan would be allowed to set tariffs of 70 percent in 1991, 60 percent in 1992 and 50 percent in 1993 to allow Japanese farmers time to adjust. Japan agreed to expand market access for fresh oranges by 22,000 tons annually, to 192,000 tons in 1990. After that, fresh oranges from the United States would be permitted in unlimited quantities, at the current tariff rates of 40 percent in season and 20 percent off season. Quotas on orange juice will also be phased out. The United States also demanded and got compensation on tariffs for other farm products in return for concessions on allowing Japan to slowly phase out its tariffs. Included were liberalized restrictions on imports of grapefruit, lemons, frozen peaches and pears, pistachios, macadamias, pecans, walnuts, pet food, beef jerky, sausage and pork and beans. As part of the agreement, the United States agreed to withdraw a complaint filed with the General Agreement on Tariffs and Trade, the world body that oversees international trade. The two sides agreed to further discuss Japan's emergency import curbs during the current round of talks under GATT. The temporary agreement was signed by Yeutter and Takashi Sato, Japan's agriculture, forestry and fisheries minister. Yeutter said the official documents would be signed in Washington, hopefully in the next few weeks, after the United States gathers the documents it needs. Cabinet Secretary Minister Keizo Obuchi welcomed the agreement, telling a regular news conference Monday that ``it reconfirms that the United States and Japan are able to solve their problems through joint efforts.'' He said the agreement can be fully implemented without hurting Japanese farmers. Yeutter said the agreement ``will require some creative and innovative thinking'' on the part of Japanese officials in helping Japanese farmers adjust. However, he said Japanese consumers will benefit through an increased standard of living and cheaper prices, while Japan's economy will benefit through increased competition. He said the United States will be closely watching Japan to make sure the agreement is put into effect. A similar pact on computer chips came under attack last year after the United States accused Japan of circumventing the spirit of the agreement by selling computer chips at unfairly low prices through third countries. That battle is still being fought through GATT. Yeutter said that ``it would be unfortunate if government agencies were to attempt to circumvent the spirit of this agreement.'' Yeutter also said the United States has no plans at this time to expand its demands to include the liberalization of rice, another thorny issue in Japan-U.S. relations. However, he said he could not rule out that possibility in the future if the United States is provoked. While agreeing to eliminate the beef import restrictions, Japan retained the right to raise the tariffs temporarily by 25 percent if beef imports exceed the previous year's level by 20 percent. After the transitional period ending in 1993, Japan's beef tariffs will be subject to discussions in the GATT. Sato, the agriculture minister, said the Japanese government will soon begin negotiations with Australia, another major beef exporter, on the Japanese import restrictions. Associations of Japanese orange growers and cattle farmers criticized the agreement. ``As producers who had been closely following the course of negotiations, we can't help but keenly feel regret and anger,'' Mitsugu Horiuchi, president of the Central Union of Agricultural Cooperatives, said in a statement.
