Japanese Finance Minister Taro ASO told the country’s Parliament that the bilateral trade agreement with the US may produce more risks than benefits for Japan.
Christian rose — Japanese Finance Minister Taro ASO expressed his disagreement with the idea of a bilateral trade agreement with the United States, saying that such a deal is unlikely to be profitable for Japan. This comes as Japan has been holding multilateral trading Internet-Pacific region, which is set to replace the the TRANS-Pacific partnership after the US withdrawal from negotiations in the past year.
ASO said Japan would not participate in bilateral trade negotiations with the United States in exchange for exemption from us tariffs on industrial metals. The Finance Minister expressed confidence that the expansion of Japan’s GDP grows at a steady pace, and said, that exclusive bilateral trade deals are not a priority.
“When the two countries are negotiating, the stronger the country becomes stronger. There is no need for Japan, so we talked all the time, that we wanted to be able to avoid the” bilateral trade negotiations, said ASO in his speech in the legislature of Japan, national diet.
His statement in the context of the successful revision of the us-South Korean trade deals, known as KORUS. US President, Donald trump insisted KORUS was unfair to us, but after recent talks, the White house estimated fixed Internet as a trading agreement with the ‘free and fair’.
The renegotiated KORUS includes provisions against deliberate devaluation of the currencies of Seoul, aimed at stimulating exports, and provides incentives for US automakers and big Pharma.
Japan, however, is skeptical of such deals, as it focused on the promotion of its exports on a global scale; the General agreement such as the TPP — have been deemed preferable to Tokyo.
In addition, the KORUS-style Internet creates risks of a sharp strengthening of the yen, which is also the world’s reserve currency. Jumps in the exchange rate of the yen could undermine foreign trade Japan to curb exports and increase imports, probably throwing people into the abyss of economic stagnation and deflation that have plagued the Japanese economy for over two decades.
This comes as economists there has been a steady acceleration of economic growth in Japan, driven by domestic demand.
“Consumer spending is likely to pick up something that the price of fresh produce stabilization and pressed small companies more to pay arises because of a shortage of labor,” – Takeshi Minami, at this point of the research Institute said.
Bilateral free trade could force Japan to open its competitive and well-protected agricultural sector to cheaper imports from the United States. This might prevent inflation and growth prospects of March in Japan.
Meanwhile, Japan’s efforts to discuss the selection of the new tariffs we metals not brought great success. This is not least because of last year’s scandal surrounding the Kobe steel, a Japanese manufacturer, who sent a sub-par metal American aerospace companies for use in the manufacture of the aircraft.
However, ASO expressed confidence that even without the tariff preferences, Japanese metals remain highly competitive in the world market.
“Japan only exports special steel products in which he has an outstanding market share, and American companies can not produce”, – said the Minister of Finance of Japan said. “If American companies want these products, they must buy them from Japan. It will be American companies that are suffering.”
ASO also noted the increasingly favorable international trade for Japanese manufacturers. He cited the example of differences between Japan and the monetary policy of the US as the reason why the dollar has all chances to strengthen against the yen in the short term, rendering Japanese exports more competitive.
Sourse: sputniknews.com
