Why do countries with strong foreign exchange position need countertrade?
Because they lack strength in certain areas. With barter, they are likely to find access to international market. America wants Japan to meet import targets for some American goods. An unwilling Japan has decided to draw the line. Once, when Japan faced pressure from abroad, it would either give in reluctantly or keep quiet and hope that the fuss would die down. No longer, it seems. The Clinton administration strongly believes in exerting such pressure. Its policy is to open some Japanese markets(which it deems to be closed)by setting import targets—an approach to trade policy that supporters call “result-oriented”. This ugly term foreshadows uncertain consequences. Far from capitulating to this new thrust of American trade policy, Japan is taking a stand that could lead to a trans-Pacific confrontation.