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Japan Intensifies Efforts to Bring the U.S. into a Trans-Pacific Trade Pact

04/20/2021

In 2017, former President, Donald J. Trump withdrew the U.S. from the Trans-Pacific Partnership, seriously eroding the confidence and trust of the eleven Pacific nations and embarrassing then Prime Minister of Japan Shinzo Abe who was instrumental in negotiating the agreement.  Subsequently the nations of the TPP formed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.  Among the eleven nations, Canada, Mexico, Australia, and Singapore were leaders with Japan.

 

The current Prime Minister of Japan Yoshihide Suga met with President Biden during mid-April to discuss the U.S. rejoining the pact, despite the fact that there is a bilateral trade agreement between the two nations.  At issue is the growing importance of China and the potential of this nation to dominate the Pacific Basin.  Japan is in a difficult position as it does not wish to antagonize China, its largest trade partner. It is evident that Japan intends cooperating with the U.S. on joint research over 5G telecommunications to offset the commercial progress made by Huawei Technologies of China.

 

At present, the Biden Administration has informed their counterparts in Japan that a comprehensive review of trade policies is in progress and the current focus is on strengthening the U.S. domestic economy.