Trump and Abe agree to begin new trade and investment talks

Abe said that 70% of Japanese cars intended for the American market are produced in the US

Japan and the US will begin new talks on trade and investment following President Donald Trump’s decision to withdraw from the Trans-Pacific Partnership, the two governments said in a statement after their leaders met in Washington on Friday.
 
The announcement came after Trump criticised Japan for what he said were “unfair” trade practices hampering US auto exports to the country. Japan had the second-largest trade surplus with the US last year, with the bulk of the difference due to trade in vehicles. Japanese Prime Minister Shinzo Abe has rejected the charge and underscored the fact that Japanese automakers in the US provide jobs for US citizens.
 
The two leaders “emphasised that they remain fully committed to strengthening the economic relationships between their two countries and across the region, based on rules for free and fair trade,” they said in their statement.
 
Vice-president Mike Pence and Japanese Deputy Prime Minister Taro Aso will lead the economic talks, Abe said at a joint news conference with Trump. Pence is expected to pay a visit to Tokyo following an invitation from the Japanese government.
 
Abe had warned earlier in the day that hacking, anti-trust laws and mistrust between the world’s largest nations are hindering global trade, warning of a “threat” to the world economy in a speech to the US Chamber of Commerce.
 
Abe noted in his speech to business leaders that 70 per cent of Japanese cars intended for the American market are produced in the U.S, adding that no one in Japan complains about losing jobs because the Japanese have gained from the business as well.

Bloomberg