PUBLICATIONS & REPORTS

Contents Introduction

This article examines two issues through an analysis of the Japanese textile industry. The first is how the government and the private sector interact in the face of the rising import pressure. The second is what influence the internationalisation of corporate activity has had on the trade policy preferences of firms. It is shown here that although the government played a particular and critical role in deciding on the direction of import restrictions in the textile industry, the textile producer associations formulated their own preferences according to their status in the industry and their international and domestic linkages, and reflected these preferences on trade policy through their membership on advisory councils and direct lobbying of politicians and relevant ministries. It is also demonstrated that international linkages were crucial factors making apparel and towel makers and textile importers favour an open trade policy. However, big synthetic fibre and spinning companies adopted a protectionist stance in spite of their international linkages. The sought to maintain domestic vertical linkages by restraining imports.