America and Japan start talks on trade
THE US and Japan said they have agreed to start talks to develop what US president Donald Trump and Japanese prime minster Shinzo Abe described as a new “free, fair and reciprocal” trade deal between the two countries following two days of talks.
But the leaders said they had failed to reach a deal that would exempt Japan from new US steel and aluminium tariffs, as Mr Abe had wanted. “If we can come to an arrangement on a new deal, that would certainly be something we would discuss,” Mr Trump said during a joint press conference at his private Mar-a-Lago club. But he said the current trade deficit between the two countries is too high for him to offer an exemption now.
Most other key US allies – among them Australia, Canada, the European Union and Mexico – have already been granted exemptions to Mr Trump’s protectionist measures on steel and aluminium.
The US trade deficit with Japan last year was 56.1bn dollars (£39.4bn), according to the US Department of Commerce. Mr Trump said he was working to reduce that imbalance and pushing to remove barriers to US exports.
“We’re committed to pursuing a bilateral trading relationship that benefits both of our great countries,” he said.
Japan had voiced reluctance to a bilateral trade deal with the US.
Mr Trump also made clear that he has little interest in rejoining negotiations over the Trans-Pacific Partnership (TPP) trade deal unless the terms are altered.
“While Japan and South Korea would like us to go back into TPP, I don’t like the deal for the United States,” Mr Trump tweeted, following a dinner with Mr Abe and their wives. “Too many contingencies and no way to get out if it doesn’t work. Bilateral deals are far more efficient, profitable and better for OUR workers.”