US, Japan urged to avoid meddling in fiscal, monetary policies
Japan and the United States should avoid trying to interfere with each other’s fiscal and monetary policies when they start bilateral economic talks next month, said former Japanese economy minister Akira Amari yesterday.
Amari, who led Japan’s negotiation team on the Trans-Pacific Partnership, which was scuttled when President Donald Trump pulled the US out, said the two nations needed to conduct talks with an eye towards emerging markets and the world as a whole.
Trump and Prime Minister Shinzo Abe agreed last month to launch a bilateral economic dialogue to discuss trade and infrastructure investment.
Japan, concerned about Trump’s strident comments on trade and currencies, hopes to use the talks to seek ways to avoid trade friction and ensure Washington is engaged in the Asia-Pacific region.
Asked about the possibility that the US might make demands regarding Japan’s fiscal and monetary policy, Amari said: “One nation should not meddle with another nation in areas where sovereign and independent rights exist.”
Amari will visit the US with other Japanese lawmakers this week to meet US lawmakers to exchange views on issues including the economy and trade.
“The economic dialogue should be a place to build a basis for how Japan and the US can share common views and cooperate with each other strategically, with a view towards the Asia-Pacific region and the world but beyond the two nations,” said Amari.
Trump has complained about the US trade deficit with Japan and accused Tokyo of using its “money supply” to weaken the yen and give exporters an unfair advantage — seen as a criticism of the Bank of Japan’s radical policy of flooding the financial system with yen to end decades of deflation.
Still, Trump avoided harsh rhetoric during a friendly summit with Abe last month that included a round of golf.
Japan former economy minister Akira Amari