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US. In this area there is a great deal of commonality between the US and Europe vis-a-vis the pacific basin. Both the United States and Europe are confronted with Asian competitors both powerful but also very dependent on the US and European
markets. For this and a number of other reasons it is not a
foregone conclusion that the US will decide to pursue such a line of conduct in the pacific that would entail the risk of a split with Europe. The on-going policy review by the new US administration seems to reason along comparable lines.
But even if pacific basin theories remain just theories, they
should not be neglected. On the contrary they should serve as an adhortation to the EC countries to pursue the same line of
action that was advised in the EPC-Planners study on Japan:
adopt substantial and diverse policies of openness towards the NIE's, while using the bargaining power provided by the
"Internal Market" to insist on equal access to those NIE's
markets that are still closed ones.
Whithout such policies the call for bilateral solutions
between the US and the pacific basin will presumably find a
growing number of supporters.
III. Policy Conclusions and Recommendations
This general guideline can be translated into a number of more
detailed recommendations:
1.
Encourage the policy of liberalization in the NIE's.
In the past, import restrictions of some of the NIE's were le- gitimate on grounds of infant-industry protection. Since 1980,
the NIES have started a thorough liberalization process, rea-
ching definitely further than Japan's in the early 1960s, when its stage of development was similar to where the NIEs are
today. This liberalization process needs to be pursued further in Korea and Taiwan, and should not discriminate among trade
partners of the NIE's.