Japan's high and increasing trade and current account surpluses have aroused in the other industrialized nations a growing fear of Far Eastern competition. Some countries consider that protectionist measures are the only suitable response to increasing imports from Japan. Japan's “unfair” conduct of its foreign trade is often cited as a reason for such a reaction. Is this reproach justified? What can be done to avert the dangers to both Japan's foreign trade and the world economy caused by this situation?