Japan Working Hard on Reaching a Deal

Japan Making a dealAccording to a Japanese official, Japan is working hard on reaching an agreement with the United States, and that he expects to provide news about it in the future. The deal would touch matters related to the auto and agriculture industries that Trump and his counterpart Shinzo Abe should agree on to solve the trade Feud.

“When President Trump came to Japan at the end of May, he was talking about doing a deal as soon as possible. Our team is now working pretty hard, so we are looking forward to some news in the near future,” said Koji Tomita, the Japanese representative for the G20 summit.

According to one anonymous source, the deal would include Japan offering the United States better access to its food market in exchange for reducing tariffs on certain Japanese goods (essentially Auto parts). This would be a win-win situation, as it would let Trump provide extra support to American farmers (a very relevant issue for the next elections) and would relieve the Japanese Auto Industry.

The source also claimed that the United States government is pushing to reach a deal soon with Japan since China is concerned about this possible outcome. If the United States signs a deal with Japan it would let it compete with the members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Trump pushed out the United States from this union in 2017 something that until now favored China (which was pushed out of the partnership).

“The Chinese are fearful the Japanese will get one first,” said the source, “Because it could effectively bring back (the Trans-Pacific Partnership),” he added.

Trump has threatened to impose tariffs on Japanese goods since he considers that the trade balance doesn't favor the United States Economy. A series of subsequent trade talks have helped to avoid such a scenario. He is expected to meet with his Japanese counterpart Shinzo Abe in September.

Sara Patterson
Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.