Weekly Negotiation on Tariffs

Japan and the United States accelerate negotiation over tariffs. Japan’s top negotiator, Minister in charge of Economic Revitalization Ryosei Akazawa, visited Washington, D.C.  every week to have meeting with his counterparts in Donald Trump administration. Accumulating discussion on three fields – expansion of investment, non-tariff barriers, and economic security, Akazawa insists on his requirement for revision of Trump tariffs to secure national interest of Japan. It is unclear that the both sides can reach an agreement by the meeting of their top leaders in Canada later this month.

Akazawa’s visits to Washington increased since late May. While the first two meetings between Akazawa and U.S. Secretaries were made on April 17th and May 1st, the rest of three were held every week: May 23rd, 30th and June 6th. Current meetings were set with request from Japan side, trying to reach a conclusion both sides can agree. Akazawa seems to be exhausted with long trips beyond the Pacific Ocean, which would cause heavy jet lag.

 

Details of the negotiation has not been announced every time. In the third meeting on May 23rd, both sides shared a notion that they would seek an agreement by the G7 summit meeting scheduled in Kananaskis, Canada, from June 15 to 17. Japan made a proposal to revitalize ship building in the U.S. Japan side presented a list of businesses in which Japan would be able to contribute to U.S. economy.

 

In the fourth meeting on May 30th, both sides discussed economic security, picking up semiconductor and crucial minerals. Akazawa indicated possibility of cooperation on semiconductor by complementing technologies of each other. Although China has advantage in rare earth minerals, Japan hopes to cooperate in some technologies. However, the U.S. embarked on direct talk with China over the crucial minerals.

 

Akazawa reported no major progress after the fifth meeting on June 6th. One thing he insisted was to keep on demanding the U.S. to revise unilateral tariff policy of Trump administration. In the government of Japan, there was an argument to have leaders’ meeting by Prime Minister Shigeru Ishiba and President Trump for concluding the negotiation in Washington, D.C. just before G7 summit. But Akazawa admitted that the meeting would not be held, because of delay of the negotiation.

 

One reason Ishiba hoped to reach a deal in June was to achieve certain result in the negotiation before Upper House election scheduled in July. If he fails in taking some advantages from the U.S., it may affect the election, which he definitely needs to win. Some industries, such as manufacturers of cars, steel or aluminum, are already suffering from Trump tariffs. Ishiba is going to have a meeting with party leaders to explain the situation of negotiation later this week. Ishiba is also considering damage control for unpredictable negotiation on tariffs.

Comments

Post a Comment

Popular posts from this blog

Struggle over a Hearing on Accounting Manager

Without a simple majority in the House of Representatives, the ruling Liberal Democratic Party (LDP) struggles against the opposition parties on inviting former accounting manager of Abe faction to the Committee on Budget. While the oppositions hope to keep the issue alive until the Upper House election this summer, the LDP wants to terminate the prolonged discussion over the slush fund scandal. The committee still cannot determine the date to begin discussion on FY 2025 budget.   The public prosecutors indicted former accounting manager of Abe faction, Jun-ichiro Matsumoto, with charge of wrong reporting about kickback fund of the faction. Tokyo District Court  sentenced  Matsumoto last September three years of imprisonment with suspension of five years. Matsumoto requested the LDP not to invite him to the Diet, because he had already told about the scandal in the court and had no further information to reveal.   The opposition parties have been demanding a hearing ...
Read more

Dilemma between Alliance and Constitution

  In the new year ministerial online meeting, Japan and United States resolved to work together to deal with various challenges by China. In the Joint Statement of the Security Consultative Committee, or “2+2,” the ministers of both government, US Secretaries of State and Defense and Japanese Ministers of Foreign Affairs and Defense, expressed their concerns on Beijing’s efforts, which were recognized as undermining the rule-based order in Indo-Pacific region and the world. On possible countermeasures, however, there still is a possibility of constitutional dispute in Japan over the principle of exclusively defensive security policy. The ministers referred to their concern about China’s activities in the East and the West China Sea. They reaffirmed to apply Article V of US-Japan Treaty of mutual Cooperation and Security to the Senkaku Islands, and strongly objected to China’s unlawful maritime claims, militarization and coercive activities in the South China Sea. They did not forge...
Read more

Defense Minister Admits Problem of Civilian Control

Concerning a series of scandals coming out from the Ministry of Defense (MOD), both Houses of the Diet held a recess discussion on the issue on July 30. To the questions of the opposition parties on why the Minister of Defense, Minoru Kihara, did not know about the scandal for months, Kihara   admitted   the problem was about civilian control. Kihara refused his stepping down as the minister, abiding by a request from the Prime Minister, Fumio Kishida, to take leadership for rebuilding up the ministry. The discussion was focused on fraudulent record of allowance for divers in Maritime Self-defense Force (MSDF). Although the criminal investigation unit of MSDF arrested four members over the fraudulence last November, Kihara insisted that he did not know about it until it was disclosed in July 12. An officer of MOD explained that the staffs did not report it to the minister, because the incident would not affect other organizations outside the Self-defense Force.   The oppo...
Read more