TOKYO — Five days before a deadline for U.S. retaliation, Japan and the United States ended a bitter dispute over access to Japan's cellular telephone market Saturday, raising prospects for a resumption of broader talks that could ease trade tensions.
The agreement aims to allow Motorola Inc. to compete on an equal basis with Japanese companies in providing cellular phone service in the heavily populated region stretching from Tokyo to Nagoya.
White House officials portrayed the agreement as a model for future trade pacts because it commits the Japanese government to specific business-related targets, one of the central goals of the Clinton Administration's trade policy.
"This is a big win for everyone," said President Clinton, who called the agreement a breakthrough in U.S.-Japanese trade negotiations.
"Workers in the United States will gain because the agreement means more demand for cellular telephones and related equipment made in America," Clinton said. "Japanese consumers win because they'll have access to better service and better technology at better prices."
Takenori Kanzaki, the Japanese minister of posts and telecommunications, expressed hope that "the settlement will translate into maintenance and further development of the good economic relationship between the two countries."
The dispute centered on a 10-year effort by Motorola to sell cellular telephones in the 155-mile corridor from Tokyo to Nagoya. Motorola had maintained that such sales had been blocked as a result of foot-dragging by its local partner, the Nippon Idou Tsushin Corp. That company, known as IDO, had been assigned the partnership by the Japanese government.
As a result of the new agreement, U.S. Trade Representative Mickey Kantor said, the White House would lift a threat of trade sanctions against Japanese products, which had been announced in February. The deadline for unveiling specific retaliatory measures, which could have included sharp tariff increases on Japanese goods sold in the United States, was Thursday.
Asked whether the agreement amounted to a "total and unconditional surrender" by the Japanese, Kantor replied: "It'd be unfortunate to describe it that way."
He said that as a result of specific commitments included in the agreement, "we think we've reduced . . . all of the stumbling blocks we can imagine" that stood in the way of Motorola gaining the right to compete on even turf with Japanese companies offering cellular telephones and services.