U.S, Japan set to Rebuild new Trade partnership

On Nov 17, 2021

The United States and Japan announced on Wednesday a new trade partnership to boost cooperation on labour, environment and digital trade issues, with an emphasis on third country concerns.

U.S. Trade Representative, Katherine Tai, who is in Tokyo to meet with new Japanese government ministers said, “Initial meetings of the U.S Japan Partnership on Trade would take place early in 2022, with periodic meetings on a regular basis.

“This partnership will deepen the cooperation between the United States and Japan that has defined our strong bilateral trade relationship.

“Our close collaboration will support the Biden-Harris Administration’s economic framework for the Indo-Pacific and help create sustainable, resilient, inclusive, and competitive trade policies that lift up our people and economies,” Tai said.

USTR’s statement made no mention of the new forum as a body aimed at negotiating new trade agreements between the world’s largest and third-largest economies.

Japan has also sought to negotiate a broader agreement with the United States after striking a limited trade deal with former President Donald Trump in 2019 that staved off his threat of higher duties on imported cars, and to coax Washington into returning to a Pacific Rim trade pact.

According to USTR, the new partnership instead would focus on addressing labour and environmental related priorities, trade facilitation, a supportive digital ecosystem and cooperation in regional and multilateral trade forums, the latter a reference to the World Trade Organization, which holds a major ministerial meeting at the end of November.

The Biden administration is working to rebuild trade ties with allies that became strained during Trump’s presidency, with the aim of building a broader coalition to confront China’s subsidies and other state-driven economic policies.

Victoria/Reuters