Aso says Japan must avoid bilateral FTA with U.S.

Aso is as shrewd as Abe. The two As's will do everything to get away with the scandal. Let Trump handle him to see how tough Aso is. Wait a minute, the meeting is canceled because our dear deputy is hospitalized due to emergency situation.

Aso needs to be in jail rather than leading anything. This is all distraction !

Japan wants to avoid bilaterl FTA with the USA, but at the sanme time wants to be exempt from US tariffs on steel and aluminum.

Seems that Japan wants it all ways.

What a silly thing to say. Aso's tacitly admitting that Japan is screwing the us and he (obviously) doesn't want things to change.

Should be a pretty easy calculation to make. Japans export of steel to the U.S is just 5% of their total export volume.

https://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/usa/jpn/show/2016/

https://www.trade.gov/steel/countries/pdfs/2017/q3/exports-japan.pdf

We are looking at approximate figure of around $900 million per year using that pdf doc.

Aluminium, maybe $150m-$200m based on the Atlas figures.

So lets say $1.2 billion and there is no presumption that Japan loses all that due to tariffs. There will be a lot of product coming from Japan which cannot be easily replaced by other exporters. They might lose 20% of their trade. Seems like a drop in the bucket compared to any large scale flood of U.S agricultural imports, especially if beef is part of it.

Why does having an FTA solve the trade imbalance (except for some fruit?). Unless the USA makes stuff Japanese want/need, the trade imbalance will not be solved by an FTA.

They might lose 20% of their trade. Seems like a drop in the bucket compared to any large scale flood of U.S agricultural imports, especially if beef is part of it.

That’s a good point Matt. I was initially baffled as to why Japan would not want an exemption for steel and aluminum. So perhaps the Japanese are afraid any such talks might end up including more than just steel and aluminum. Insisting that negotiations be multilateral allows Japan to use other nations for cover in order to protect certain politically sensitive (ie. agriculture) market sectors.

Japan dies not want or need US goods.Except for American Cherry, soybeans and few “niche” items.Most US foods are GM produce,and Japanese chose Organic.All US cars are low quality compared to hi tech Japanese ones. The only USA goods Japan really likes and wants more are weapons, but Japan will increase her manufacture over next decades.

So I cannot see a massive trade imbalance ever being resolved.Wishful thinking in US. Vice PM Aso is completely correct.

typical Japan wanting to keep diluted terms with many nations to hide the fact they are ripping people off with one-sided trade deals

Most US foods are GM produce,and Japanese chose Organic.All US cars are low quality compared to hi tech Japanese ones.

If you even think that Japanese foods are 'organic' with the multitude of pesticides, chemicals, and other junk that JA 'encourages' their farmers to use... then you have another thing coming.

Also, according to JD Power, the "Detroit 3" outranked most of the Japanese brands, and the highest performing brand was drumroll please.... KIA. The South Korean one.

http://www.jdpower.com/cars/articles/jd-power-studies/2017-us-initial-quality-study-results

David V - totally agree.

Ganbare said -

"...-and Japanese chose Organic. All US cars are low quality compared to hi tech Japanese ones..."

A well researched and factual comment. Not!

Really gotta laugh at times when people here believe that blanket statement - Japanese produce is safe.

I selectively buy my fresh goods from as many "known" sources as possible, because you just can't trust the mainstream dealers.

And I only buy Japanese made cars. Why - because of their quality, locally produced and low cost. But I'd never say that US only produces low quality cars. That would mean 100 milllion Americans alone are driving junk. Hardly.

At the moment Trump appears to have Abe Inc over a barrel. Abe's "best global mate" is doing the dirty on him. Amazing what comes back to bite the hand that shakes.

Looks like Japan is running a bit scared, imagine if a light ever shines & REVEALS.....scary stuff for Japan Inc

Aso probably secured his job. Abe needs Aso. When Trump talks trade with Abe, Abe would say Aso is the right person to talk to. Each time when meeting arranged, Aso would have some kind of emergency situation to cancel the trip. Last time was threat from North Korea. If Abe-Aso alliance can handle the scandal seamlessly, there is nothing the two can't handle.

force Japan to open its highly protected agricultural markets.

I want this. Let’s do that.

Most US foods are GM produce,and Japanese chose Organic

WOW, ignorance is bliss as they say! Few others beat me to it BUT J-farmers use a LOT of chemicals, the number of organic farmers, while growing in numbers are insignificant overall, UNLESS you are lucky to live near some!!

I grow some veggies & also have some fruit tree's in my yard. I live above on the yama in satoyama, rice fields all around & THEY GET SPRAYED quite bit let me tell you! I know a guy who is retired & grows organic, it is VERY HARD to get & maintain certification because he is surrounded on 3sides by farmers who of course use chemicals.

One thing that gets REALLY doused in chemicals are nashi(pears) they can get sprayed 20-30times a season! They have to keep birds, bugs & mold at bay, whatever you do NEVER eat the skin off these!

The ten most reliable cars according to

https://www.consumerreports.org/car-reliability/10-most-reliable-cars/

Finding it hard to find a US car in that list.

I wouldn't buy a US car. There is always something falling off, squeeking, or rusting. They're too big, they aren't made in Japan, and the steering wheel is on the wrong side. Now if the US wanted to, you know, set up a factory in Japan,create jobs, and give better service similar to what Toyota,Honda,et al have done in the US, then maybe they'd sell more. But personally I'd rather buy Japanese goods, to support the industries and workers here, than sell out to the US and have the workers here kicked out of a job, and claiming unemployment benefit for some on to complain that they are lazy, and sponging off the state. One exception might be the iPhone,but then again I can't find any other American phones, but I sure can find a Japanese, Chinese, Korean.

I'm not even talking about cars, Tamiya,Hasegawa are two great companies that regular outclass every similar American company. Even Xbox 1 was rubbish compared to sony's playstation 4.Nobody was interested in American football or baseball when they rolled that out. I think the US way of thinking is "Its good enough" where as maybe the Japanese way of thinking is "can we make it better".

As for the US goods, I guess the US philosophy of making something cheap, nasty, and easy to breaks so the customer has to buy another one seems to be how most people see American goods.I'd rather pay a bit more, knowing the thing is A) going to work,B) isn't going to break C) if it does break, I won't have to wait weeks for parts to be shipped from the US.

The food has too much sugar, too much fat, and too much salt that would push obesity up through the roof pushing the subsequent health costs onto the government, and the tax payer while they pull in the profits. If its made in a factory, its probably processed and full of junk, and you just need to look at the obesity rates in the US to see that.Maybe the US can keep it's foods.Even the US chocolate is waxy and sucks. Give me a european chocolate anyway.LOL Maybe the US should make stuff people want. Apple do!

Bilateral trade deals are vastly inferior to regional blocs and global organizations such as the WTO. Most every economist agrees. I seldom agree with Aso but do here. Waiting for Trump and his unilateralist mercantilism to be dumped into the dustbox of history is a wise policy.

Japan will do as the US tells it to do.

As long as Abe is there Aso could be only the vice PM but Finance Minister should be replaced to a younger one with professional experts behind. Aso is too old to find out figures in this complicated world economy. Besides, the scandal didn't end.

Most US foods are GM produce,and Japanese chose Organic.

Speaking of this, there is and acticle from 2014 in JT stating

About 45% of the global organic food market is in Europe and about 45% in the U.S. The rest of the world accounts for the remaining 10%, and Japan itself just 2%.

The US has around 320 million people and four years ago consumed 45% of the global organic produce, while Japan, with around 30% of that population, consumed 4% compared to the US.

The is another article, an old one too, about organic farming in Japan (https://www.japanfs.org/en/news/archives/news_id027809.html)

With this background, organic produce presently accounts for only 0.1 percent of total farm production and cropland area in Japan. It accounts for only 1.65 percent for green tea, but this is the highest organically-grown percentage for any product, Organics account for a mere 0.12 percent of rice, Japan's leading crop (all data from FY 2004).

So, how have things changed in all these years? I know options for vegetarians and vegans are improving, slowly, but improving. How is it for organic food?

Additionally, if non gmo is important (and it's important to note that "non gmo" is not the same than "organic"), the Japanese government could demand that as part of a FTA. I remember reading news a few years ago about Japan rejecting a shipping of gmo wheat from the US.

Ah, yes! Mr. Aso, deputy PM and finance minister, who doesn't seem to know the difference between clay and poop. You make your demands for a one-sided trade deal, as you did with the TPP, which cost you the better part of the deal. Japan reminds me of the little brat that sat in the corner of the playground because nobody wanted to play with him. Japan definitely is an island and these stone faced oyajis running the country are keeping it that way. Aso is only interested in a deal promoting Japanese exports. He is not interested in deals for imports, especially agricultural produce. Unfortunately Taro Aso old bean, it's a two-way street, but you seem to be running into a dead-end, as usual!

Japan shouldn't be afraid of becoming a poor country.  Close Japanese factory in USA and US trade deficit with Japan will disappear.

I find it strange that so many comments re-iliterate the 40 year old script that American products are inferior, Japanese don't want American (or foriegn) goods, certain Japanese whether phenomenon's are different etc. etc.

With the rise of the internet, I have been trying out American products over the last few years, and some are of very high quality, and exactly what I need.

I won' t give examples, as this could be interpreted as advertising which is against JT rules.

Tinawatanabe

Yes, that would be one way of solving the trade decifit.

I am sure that somebody else would soon take over the factory and produce their own cars.

What is Aso afraid of with a one on one bilateral trade agreement with the U.S? Australia has one. Why not the U. S.? All the U. S. is asking for is truly free trade, but Japan refuses to do this, so we have year after year huge trade surpluses in Japan's favor. Japan does not want fair trade with the U. S.

Japan is Australia’s second-largest agricultural, forestry and fisheries market, worth around $5 billion in 2016. It is Australia’s largest market for cheese and beef and an important destination for sugar, seafood and horticulture. Japan has high tariffs of up to 219 per cent on agricultural imports, however, and Australian exporters have to navigate a complex regulatory framework including levies, tariff rate quotas, state trading arrangements and automatic safeguards.

Australia is the first major agricultural exporter to secure a bilateral trade agreement with Japan — delivering a first mover advantage and future-proofing exports against future trade deals our competitors are seeking with Japan.

Key agriculture outcomes include the following.

Beef: Rapid reduction of the high 38.5 per cent tariff on beef, Australia’s largest agricultural export to Japan, worth $1.8 billion in 2016.

Wine: Elimination of the 15 per cent tariff on bottled wine by 2021 and immediate elimination of the tariff on bulk wine.

Dairy: Immediate duty-free quotas for Australian cheese, immediate duty-free access for the growing trade in milk protein concentrates, lactose and casein and new opportunities for ice-cream and frozen yoghurt.

Seafood: Immediate elimination of tariffs up to 9.6 per cent on lobsters, prawns, oysters, crabs and abalone and elimination of tariffs on tuna and Atlantic salmon by 2025.

Horticulture: Immediate elimination of tariffs up to 6 per cent on fresh asparagus, macadamia nuts, almonds, fresh mangoes, and many other products. High tariffs on walnuts (10 per cent) and onions (8.5 per cent) will be eliminated by 2019, while tariffs on apples (17.5 per cent) will be eliminated by 2024. Taking advantage of counter-seasonal production, tariffs on oranges (16 per cent), table grapes (7.8 per cent) and cherries (8.5 per cent) are being progressively eliminated during Australia’s exporting season.

Grains: Immediate duty-free and quota free access for Australian wheat and barley for animal feed and streamlined export arrangements for some Australian wheat varieties. Elimination of the 21.3 per cent tariff on wheat gluten and tariffs on canola and vegetable oils by 2024.

Sugar: Immediate tariff elimination and reduced levies for international standard raw sugar.

Processed Foods: Tariffs up to 29.8 per cent on juice, canned fruit, soup, jam, peanut butter, tea and pet food are being progressively eliminated and Australia is also receiving preferential tariff access for chocolate, honey, biscuits, cakes and breakfast cereals.

Fact sheet last updated September 2017.

I am sure that somebody else would soon take over the factory and produce their own cars.

Still better than FTA.  FTA with occupying country is colonization.

A six pack of Asahi is cheaper to purchase in the United States than it is in Japan. That tells you everything you need to know.

Ricky,

This is the way a Japanese company inters another countries market place. They will price at a normal price, but extend to wholesalers and retailers large discounts that is not listed in their pricing. They will continue this under the table practice until they have captured a large share of the market- in some instances kill of all competition. A good example is what was America's television industry, RCA, Zenith, Magnovox', Motorola, Emerson and others.

Australia is the first major agricultural exporter to secure a bilateral trade agreement with Japan — delivering a first mover advantage and future-proofing exports against future trade deals our competitors are seeking with Japan

Its important to also see that in relation to geo-politics. Japan is aware that China holds an increasingly strong hand in dealing with Australia when it comes to trade. We have become more reliant on China than is ideal. In order to foster the idea that Australia play the middle ground between China & the U.S/Japan alliance, I think Japan has seen fit to offer those trade terms. I do think that is one reason. The other reason is that Australia provides Japan with cheap black coal and lots of it. 65% of Japans coal comes from Australia.

https://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/jpn/show/2701/2016/

https://www.businessinsider.com.au/australia-natural-gas-exports-growth-2019-2018-1

Should also add that Japan has a fairly healthy and the largest slice of the Australian imported car market. $5 billion + a year.

https://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/aus/show/8703/2016/