Japanese Prime Minister Shinzo Abe is to meet US President Donald Trump next week as fears grow in Tokyo that Washington could demand that Japan curb its car exports to the US.
Japan is hoping to avert any import curbs and potentially steeper US import tariffs on its cars, and fend off US demands for a bilateral free-trade agreement (FTA).
Abe and Trump are to hold a summit meeting on Wednesday next week on the sidelines of a UN General Assembly meeting in New York City, Japan’s top government spokesman said yesterday.
Photo: AFP
To lay the groundwork for the summit, top trade negotiators of the two nations are to hold their second round of trade talks on Monday next week.
Trump has said he is unhappy with Japan’s US$69 billion trade surplus with the US, nearly two-thirds from auto exports, and wants a two-way agreement to address it.
There is uncertainty on whether Abe can convince Trump through the close ties he has forged with the US president.
Japanese officials are growing increasingly worried that Trump is to demand a reduction in the number of Japanese auto imports to lower the trade deficit.
They also fret that Trump could impose steep import tariffs on autos and auto parts, which would deal a severe blow to the export-reliant economy.
Some officials say Japan might have no choice but to lower the number of cars it ships to the world’s top economy, because the US is Japan’s closet ally and guarantees its defense.
“Given our position [close diplomatic relationship], we would have to swallow their demands,” said one government official, who spoke on condition of anonymity.
Another official said that Japan was trying to convince the US to avoid imposing a numerical target on Japanese car exports.
Next week’s meeting between the nations’ trade representatives is to follow one last month, when the two sides failed to narrow differences on whether to open up negotiations for a bilateral FTA.
“Based on the common understanding we built in the first round of talks, we’ll seek a ‘win-win’ outcome that benefits both countries,” Japanese Minister of Economy, Trade and Industry Toshimitsu Motegi told a news conference yesterday.
Asked whether the meeting could force Japan to enter into talks for a bilateral FTA, Motegi said: “I don’t think that will happen.”
Tokyo is worried that as part of any bilateral deal, Washington might put pressure to open up its politically sensitive farm market.
Trump, according to a column published in the Wall Street Journal on Sept. 6, has suggested he would again turn his attention to trade with Japan.
Meanwhile, Abe on Thursday was re-elected as head of the Liberal Democratic Party with about 70 percent of the vote, paving the way for up to three more years as the nation’s leader and a push toward a constitutional revision.
The victory might embolden Abe to pursue his long-sought amendment to Japan’s pacifist constitution, although the hurdles remain high.
“It’s time to tackle a constitutional revision,” Abe said in his victory speech.
Abe said he is determined to use his last term to pursue his policy goals to “sum up” Japan’s post-war diplomacy to ensure peace.
If a revision is rejected in a national referendum, Abe would likely have to step down.
“It’s a goal that would be difficult to achieve,” Abe told a news conference later on Thursday. “We’ll have to walk on a thorny path.”
Abe seeks to submit a draft constitution revision to parliament later this year. He is proposing to add a clause to Article 9, which bans the use of force in settling international disputes, to explicitly permit the existence of Japan’s military.
Additional reporting by AP
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