Japan Trade Deal Hopes Fade
It’s not just China. No one should be surprised that Hopes of a Trade Deal With Japan Have Faded.
“It will be a very tough negotiation,” said one of the officials, who spoke on condition of anonymity due to the sensitivity of the matter.
“If there is to be an ‘agreement’ we need to have something we can formally announce, which is tough,” said another Japanese official, adding that it will be difficult to agree on a deal in September unless Washington makes more concessions.
Four Hangups
- Washington is targeting Japan’s auto exports, which account for about two-thirds of the U.S. trade deficit with Japan at roughly 7 trillion yen ($65.82 billion) a year.
- Trump wants to open up Japan’s market for agriculture goods and beef. One demand Washington is making is for Tokyo to cut tariffs on U.S. beef and pork imports.
- Japan wants the United States to cut tariffs on imports of car parts and industrial goods – something Washington is reluctant to.
- U.S. automakers are also want to include a provision prohibiting both countries from engaging in currency manipulation. Japanese officials are opposed to adding such language in the deal, for fear of having their hands tied in battling any unwelcome yen spike that hurts the country’s exports.
Anything Else?
Just an observation that Trump does not trust Japan and Japan does not trust Trump.
Question of Trust
- There is no reason for any country to trust Trump.
- To be fair, there is no particular reason for Trump to trust either Japan or China.
Big Picture
It’s important to stand back and look at the big picture.
If indeed Japan and China are subsidizing exports, that is to the benefit of US consumers.
We should welcome subsidies.
Remember TPP
Please recall that Trump cancelled TPP, the Trans-Pacific Trade Partnership, a trade agreement with Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States, and Vietnam, now minus the US.
In that deal, Japan significantly lowered tariffs on agriculture for the TPP participants.
Australia and Canada were the primary beneficiaries.
It will now take huge tariff cuts by Japan just for the US to break even with where we could have been relative to Australia and Canada.
In return, Japan wants a further reduction in US auto tariffs.
Trump in a Box
Trump put himself in a box.
He has no winnable solution other than backing down.
But that is contradictory to his ridiculous message “Trade wars are good and easy to win.”
Mike “Mish” Shedlock
The US tends to whine about agricultural exports, claiming that other countries are overly protective. But from a European perspective, for example, we don’t want bleached chickens and sub-standard meats filled with hormones and antibiotics.
The US has used its economic might and military power to bludgeon many countries into disadvantageous deals and have particularly screwed over developed countries who rely heavily on agricultural exports.
Trump and America are very badly regarded outside of America. Trump is a known liar who will not keep his word. He is a terrible negotiator who understands only win-lose and power plays. The world is fed up with Trump and America.
Frankly, I would suggest that Europe and Asia tell America to fuck off. America is not needed. I wonder what Donnie would do? Cry or launch the nukes? Why not both?
no shit. And I am an American, though pretty ashamed to be one since GW, through Obama, and now this! Seriously? Trump? I know that Hillary is bad, but Trump? I grew up near NYC and Trump. I cannot believe some mullet-headed Waffle Hut customer trusts and believes Trump, a consummate Coastal elite liar. Is it the barely hidden racism that is so appealing to his base? his hot, hooker wife? His totally banging daughter? I don’t get it.
but it does indeed make me root for the Yellowstone Caldera.
In a box is the only right place for an idiot like Trump
Governments fail at everything they try to do. It doesnt matter if a Democrat, Republican, or dictator.
LOL, Trump-in-the-box.
TPP would have made corporations more powerful than governments and made many of them monopolies. We’d all be moving toward a Feudalistic form of government with global corporation ordering state, local, and national governments what to do at every level of policy had Obamanation gotten his way.
If Republicans think corporations are people, TPP said “No, corporation are not people….they are Gods to which you and all shall bow down before!”
TPP gave corporation power to over ride any national/state/local law on a whim, and impose the exact policy the corporation wanted.
Can anyone guess what kinda a policies the rich gigantic corporate monopolies would impose upon us?
How about this:
Scap all the corporate written trade deals and start over. For example NAFTA – written by corporate lobbyist just like TPP was – was sold as raising wages in Mexico. Except no one told us it requires Mexico to repress wages as written and specified by NAFTA.
Scap all trade deals, start over. There will be chaos as in…like we have chaos now. Only agree to trade deals that benefit all of us including workers not just politically connected rich gigantic corporations.
I can’t fault Japan at all for hangups #2 and #4.
Japan’s food is great, they have high quality meat already. It’s expensive, but the meat portions are much smaller there anyway. Why do they need hormone-laden US meat? As long as they have access to rice from SE Asia and they don’t overfish, they’re fine indefinitely. The last thing Japan needs is an obesity crisis from a diet of frankenfood.
Anyone in their right mind would avoid language of currency manipulation. Everyone is openly doing it and the label can only be used as a weapon to bludgeon opponents. We already screwed them once with the Plaza Accord, why would they want to experience that again?
Agree on all points noted in your comment. USA print their money more than all others combined – they asking others to stop currency manipulation? What a joke.
And one truth on the above “There is no reason for any country to trust Trump.” – period.