The United States is expected to demand this month that Japan introduce a new set of measures to expand foreign paper makers' sales, but a senior Japanese industry official has said such a bilateral arrangement is "out of the question."

"The Japanese market is already open to foreign competitors and thus it is totally unnecessary for Japan and the U.S. to have another agreement," said Takashi Hirokawa, vice president of the Japan Paper Association, in a recent interview. "We believe the current agreement should not have existed in the first place and it is utterly out of the question to have another one," he said.

The 1992 bilateral agreement on paper and paperboard products, which expires April 4, calls on both the Japanese and U.S. governments to take measures to "substantially increase market access" in Japan for foreign paper producers. The Japanese government has already conveyed its position to Washington, stating that it has no intention of renewing the agreement now that the pact's intended goals have been achieved. The U.S. government, however, thinks otherwise. Although a formal request has yet to be made, U.S. trade officials have said they will put forward certain proposals in due time on "new or modified measures" to further encourage increases in imports.