Pence pushes Japan for bilateral free trade agreement

Japan will regret any FTA signed with Trump administration.

Already pushing for more after Abe already gave them the farmers...

Trade imbalance is partially a supply and demand thing.  Don't think much demand for US cars and other consumer goods here.  some food, yes.  But not rice.....

some food, yes. But not rice.....

That's funny. The US's biggest exports by value include machinery, computers, electrical equipment, aeronautic craft and components, optical, technical, medical apparatus, pharmaceuticals.

There' a huge scope for Japan to import such products in large quantities. But Japanese protectionism is preventing that from happening. That's why an FTA is needed.

There was a Pacific free trade area planned that included Japan and the US. It was America that pushed for it and it was America that pulled out of it.

America also has restrictions on imports for many farm products.

American beer, American soft drinks, American software, there are plenty of American products here There are American products that sell here. It just so happens that American cars don't. They do not appeal to customers.

Why don't American cars sell here? Is there a tariff on American cars that does not apply to German cars that do sell here? Perhaps it is because German cars are better, or maybe Germans make more effort.

Maybe Trump think Japanese drive on the left so that American cars won't sell here. He probably wants everyone in Japan to start driving on the right.

Its because Trump wants to grow fossil fuel demand, (and weapons), while other countries don't.

Samit Basu:

Japan will regret any FTA signed with Trump administration.

Probably not. It will end up basically same as but some differences from TPP, saving faces on both sides. Japan can say "it's similar to TPP" and US can say "it's a new FTA."

Welcome Michael Pence, Welcome! It seems like a really nice Summit between Pence and PM Abe. Strong friendship. I would prefer TPP. But a bilateral trade pact could be a big boost to both USA and Japan.

Maybe Trump think Japanese drive on the left so that American cars won't sell here. He probably wants everyone in Japan to start driving on the right.

Germans also drive on the right. They make cars that drive on left for export. So can USA. But they need to export the suitable models to Japan, NOT pickup trucks or V8 gas-guzzlers like a Mustang. Poor cars. Perhaps Trump should convince PM Abe to accept more Teslas which are up to Japanese standards. (Like a LEXUS)

politically sensitive farm products

Which is another term fo Clientism and Cronyism.

"Abe did not comment directly on the nature of a future deal."

Because he's a coward. If he says his mind in front of Pence and the associated press, which would be to continue Japan's protectionism, Pence and the US would make him pay and impose tariffs. The minute US representatives leave he'll be assuring the local media that no protectionist measures will be lifted. Then, when he talks to Trump personally, he'll change his tune and talk about how accommodating he's willing to be, out of the ear of local media. He's a lot smarter than Trump, which is not saying much, but he's still a coward.

Who doesn't want a free, fair and reciprocal trade ?

Pickups and V8 are much more valuable than Lexus in many part of world. To use the differences between orange and apple to scare or even defame the other side is very unfair and non educational and unhealthy way in any arguments.

The reply is, "Japan first."

Takes two to tango, I don't see why Japan needs to bother

Japan already has a trade agreement with the Pacific and the US, it's called the TPP. Oh that's right, the US pulled out. Well you can come cap in hand on bended knee to rejoin, but don't expect to add anything to it.

Akie

Who doesn't want a free, fair and reciprocal trade ?

Nobody. That's what the TPP and WTO is about. Trump likes bilateral agreements because he can't juggle too many things in his head. But bilateral agreements are ultimately counterproductive.

"The US missed the boat on the TPP"

Missed the boat? Nah, we got off that sinker on purpose. Even Hillary had changed her mind on it.

"The reply is "Japan first."

It's been "Japan first" forever. Finally we have "America first" to balance that.

Wasn't TPP an FTA?

The TPP draft document was thousands of pages long, stipulating the conditions of trade and investment among member nations. And separate but associated sideline agreements include such things as major rice exporter Vietnam severely restricted in shipping that crop to Japan. That's not my definition of "free trade."

Abe announced long ago that he plans to ramp up subisidies for Japan's industries negatively affected after the TPP goes into effect. Again, that's not my definition of "free trade."

Japanese officials say they don't want a bilateral FTA with the USA because they dont want to make concessions.

Who doesn't want a free, fair and reciprocal trade ?

America. America wants America first trade. They have zero interest in reciprocity.

 America wants America first trade.

Nonsense. America has been the world's biggest promoter of free trade since WW2. The problem is that its trading chums like Japan and China have exploited America's openness to run up huge trade deficits and grab market share while ring-fencing their own markets at home. Americans are now fed up.

Let's not forget that Japan imposed a 40% tariff on foreign cars while Japan's automotive market was conquering global markets. China's today is 25% Abe and Xi and others slam others' auto tariffs as a lose-lose proposition, failing the mention their own.

The reality is that tariffs are extremely effective element in any successful national industrial policy. Just ask the postwar Japanese and the Chinese and Koreans today. Time for the US to get onboard.