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World Business Quick Take

■ Mitsubishi recalls more cars
Mitsubishi Motors Corp, a Japanese automaker plagued by recurring recalls, has announced another recall of 179,000 cars because of a defect in the air-conditioning system that has injured at least two people. Mitsubishi Motors' reputation has been badly tarnished after acknowledging five years ago it had systematically hidden auto defects for decades. Since then, it has issued several recalls, further driving down sales and hampering attempts to revive the company. The latest recall -- reported to the government on Tuesday -- covers three sedan models, including the Galant, manufactured from 1996 to last year. A wiring defect in the air conditioning fan can cause a fire in the glove compartment, the automaker said yesterday.

■ Macroeconomics
US trade deficit at new high
The US trade deficit climbed to new highs in February to reach US$61.0 billion as the world's biggest economy sucked in ever more imports, the government said on Tuesday. The unprecedented figure surprised Wall Street, which was expecting a February deficit of US$59 billion. The US Commerce Department revised up the January trade deficit to US$58.5 billion from the US$58.3 billion given last month. The February figure surpassed the previous high set in November of US$59.3 billion. The widening shortfall in the US trade performance was fueled by a 1.6 percent rise in imports of goods and services, which totalled a record US$161.5 billion in February. Exports were essentially flat, rising 0.1 percent to a record US$100.5 billion. There was some good news in the regional breakdown with the politically sensitive US trade deficit with China shrinking to US$13.9 billion in February, from US$15.3 billion in January. Imports of Chinese textiles, however, rose 9.8 percent to US$2.08 billion in the month.

■ Music
Apple takes iTunes to Japan
Apple Computer Inc, the maker of iPod digital music players, plans to start an online music store in Japan this year, the Mainichi newspaper reported, citing a Tokyo-based executive. Apple Japan Inc is negotiating with major record companies to launch its iTunes music distribution service, said Vice President Yoshiaki Sakito, according to the report. Sony Corp already offers music on its Mora Web site, while Japanese record companies such as Avex Group Holdings Inc are planning to set up their own online businesses.

■ Trade
Australia eager for FTA
The time is now for Australia to strike a free trade deal with China, the trade minister said yesterday, fanning speculation that formal negotiations will begin when Prime Minister John Howard visits China next week. "I believe the time is right to move into FTA negotiations with China," Trade Minister Mark Vaile said at the National Press Club in Canberra. Chinese Vice Commerce Minister Ma Xiuhong (馬秀紅) reportedly said last month Beijing wanted a trade deal with Australia to prevent sharp increases in iron ore and energy prices, and to lock out future competitors for Australian resources. A recent 71.5 percent hike in the price of Australian iron ore has become a major issue for China, which overtook Japan last year as Australia's biggest iron-ore customer. Vaile said his government's refusal to curb iron ore price increases wouldn't harm prospects for a free trade agreement between Australia and China.

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