The U.S. Trade Deal with Japan: Commerce in the Service of Politics
The U.S. Trade Deal with Japan: Commerce in the Service of Politics

Author(s): Andrzej Dąbrowski, Marek Wąsiński
Subject(s): Supranational / Global Economy, Governance, Economic policy, International relations/trade, Geopolitics
Published by: PISM Polski Instytut Spraw Międzynarodowych
Keywords: United States; Japan; trade agreements; economic policy; export; Japanese market; European Union;
Summary/Abstract: By limiting the scope of the trade agreement with Japan, the U.S. finalised negotiations on the deal in 2019 and implemented it on 1 January this year. The U.S. mainly wanted to reduce the effects of the fall in agricultural exports, due to retaliation duties imposed by China. President Donald Trump will present the agreement in his re-election campaign as an economic achievement, and his Japanese counterpart Abe Shinzo will utilise it to ease tensions with the United States. The agreement will not limit EU exporters' access to the Japanese market, but it may be used by the U.S. as an argument for increasing pressure on the EU.

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