Trump Administration Pushes Fair Trade Relationship with Japan

The U.S. administration under Trump regime is aiming for a more levelheaded trade relationship with Japan as the prominent economic talks with the third largest Asian economy progressed this week in America, stated by U.S. Vice President Mike Pence.

During the second-round of meeting between U.S. and Japan, Pence left comments including discourse between the White House Cabinet members and highest rank Japanese government authorities. Pence has shown immense interest to free trade deals during talks but the Japanese government official did not give more details on this.

He also mentioned that the focus of this agreement is to guarantee the “free and fair trade” relationship particularly on trade and investment policies between the two countries. Both nations have initiated this talk in February and had their first course of talk in April. They have achieved initial progress in the second course of talks that includes the consensus to remove limitations on persimmons from Japan and potatoes from Idaho as mentioned to the statement given during Monday’s arbitration.

The automobile industry has also improved while Japan acquiesces to streamline noise and emission testing on car exports for the United States. Moreover, both nations will publish a statement related to energy concerns that include liquefied natural gas and coal while foreign exchange was not part of the discussion.

The U.S. President Donald Trump has been berating the mercantile trade deficit of their nation with Japan.although, this is just next in order to its gap with China amid the large volume of trade imports particularly on Japanese cars and electronics. The leader has clearly cited that he favors the bilateral trade deals and push it through to lessen trade disparity instead of multilateral agreements such as the Trans-Pacific Partnership which he ended as soon as he became the president of America.

Trump would meet the Japanese Prime Minister Shinzo Abe in his next trip to Asia next month and the interest on trade and economic ties will surely be of great concern. On part of the Japan, the Japanese delegates have pointed out the relevance of U.S. and Japanese diplomatic ties which significant in the background of threats posed by North Korea with the capital’s missile and nuclear programs.

A lot of businesses in U.S. aims to have a bilateral deal with Japan after their withdrawal from TPP that has greatly decreased the range of Japanese tariffs. This positions various U.S. companies at risk and they are on the downside compared to other countries who were still part of the agreement. On the other end, the Asian nation is open and hopeful to persuade the Western nation to be part once again of the TPP deal which was mediated over the years. This would be a stepping stone of the country to discuss topics on trade and investment rules as well as the Japanese investment on U.S. energy and infrastructure.