The State of U.S.-Japan Relations and Their Prospects after the Conclusion of the 2019 Trade Agreement

Abstract

On September 25, 2019, a trade agreement between Japan and the United States was announced. US President D. Trump holds that this is a victory for his administration, which will help reduce the trade deficit with Japan. In general, the new agreement provides American farmers with access to the Japanese market and, to some extent, creates an atmosphere of stability in bilateral relations. However, over the time that has passed since the United States exited the TPP, the countries remaining in the free trade zone received significant advantages. For example, access to the Japanese market has become much easier for major agricultural exporters such as Australia, Canada and New Zealand. The Economic Partnership Agreement (EPA) between Japan and the EU entered into force in February 2019. This led to the situation when American manufacturers are already at a disadvantage, and it will not be easy for them to withstand the competition for the Japanese market, even if the new trade agreement enters into force in 2020. What is extremely important in the light of the U.S. trade war with China and the attempts of the Trump administration to reduce the trade deficit with major partners, the agreement does not include any provisions concerning American tariffs on Japanese vehicles and parts. Thus, the threat of imposing restrictions on these categories of goods, constantly used by the Trump administration as an instrument of pressure in negotiations with Japan (as well as with other countries), remains, although its implementation is still unlikely.