Japan shouldn’t sit at negotiating table while US is twisting arms on trade

The “America first” policy trumpeted by the US government, which casts trade deficits as a sworn enemy, would not benefit either nation. Japan must tenaciously explain this point to the US government.
The second round of the Japan-US economic dialogue, chaired by Deputy Prime Minister and Finance Minister Taro Aso and US Vice President Mike Pence, was held in Washington. This follows the first round held in Tokyo in April.
Pence indicated Washington’s “strong interest” in a bilateral free trade agreement with Japan. Aso re-emphasised the significance of the Trans-Pacific Partnership free trade agreement, from which the United States has pulled out, so their discussions were not on the same wavelength.
The reason Japan is wary of an FTA with the United States lies in the basic approach taken by the administration of US President Donald Trump. The current administration considers US trade deficits to be a type of exploitation by partner countries, and it unilaterally insists that the responsibility to rectify the imbalance rests with the trading partner.
Trump seems to be keenly aware of the support from US manufacturing regions that propelled him to victory in the 2016 presidential election.
The trade deficit indicates the United States is importing many cheap and good-quality products that benefit US consumers.
The Trump administration has a glaring tendency to close its eyes to this reality and only cherry-pick elements that neatly fit with its own viewpoint.
The US attitude of flaunting its position as a superpower is also a massive problem. The United States is demanding that it alone be given special treatment in negotiations to revise the North American Free Trade Agreement. The United States dangled the possibility of scrapping the US-South Korea free trade agreement, which forced Seoul to agree to renegotiate the pact.
The Japanese government’s position is that, even if Tokyo entered into talks on a Japan-US free trade agreement, it would be difficult to make greater concessions than those made during negotiations for the TPP – a deal that raised expectations for market openings in the United States and other nations.

Don’t waste time
If the United States demanded that tariffs on agricultural products and others be abolished or reduced by a level greater than they would be under the TPP, a deterioration in the relationship between Japan and the United States, which are crucial allies, would be unavoidable.
The view within the Japanese government is that the US government will concentrate on NAFTA and the US-South Korea free trade agreement for the foreseeable future, so it would be some time before any negotiations with Japan got into full swing.
That time must not be wasted. Japan should make efforts to craft an environment that prods the increasingly protectionist United States to return to a free trade system.
The first step is to get the ball steadily rolling on the 11-nation TPP, minus the United States. Provisional details of the agreement should be swiftly wrapped up, and the leaders of these nations should fulfil the goal of reaching a deal in November.
If a final agreement on the Japan-European Union economic partnership is also reached by the end of this year, it could be an opportunity to make the United States take another look at multilateral frameworks.
Trump will visit Japan early next month. It is necessary for both leaders to deepen the relationship of trust and hold constructive discussions that nip trade friction in the bud.