ASIA Japan has undergone tremendous political upheaval over the past three years. In the summer of 1993, the Liberal Democratic Party lost its 40 year hold on the nation's government to a new coalition, headed by Prime Minister Morihiro Hosokawa, which encompassed much of the LDP opposition from both the left and the right. However, Hosokawa was forced to resign after admitting to charges of corruption. The conservative LDP, in an unlikely coalition with the left-wing Social Democratic Party, has come back into power. Liberal Democrat Ryutaro Hashimoto is the current prime minister and leader of the coalition government.
Trade is a major issue confronting Japan as a recession continues to plague the Japanese economy.
The devastation resulting from the January 1995 earthquake in Kobe has added to the economic burdens in Japan. In the continuing trade tensions between the U.S. and Japan, the U.S. blames Japan for restricting the import and sale of U.S. products through tariffs and non-tariff trade barriers . Japan indicates that the U.S. industries are not able to compete because they produce inferior goods and employ inefficient management techniques. As the Japanese trade surplus with the U.S. continues, voices in the U.S. Congress calling for higher tariffs and restrictions on Japanese imports are becoming stronger. Tension has also developed between Japan and the U.S. over U.S. military bases in Okinawa.