Trade Agreements Between US and Japan
The relationship that exists between the United States of America and Japan can be said to be firm and stable both politically, economically and socially. American considers Japan as one of its allies and partners. Besides, even Japan perceives the US in a positive light. In fact, it is said that after Indonesia, America is the second nation that has earned a favorable perception from Japan recently.
Over the years, America has been in negotiations with Japan over the formation of a free trade agreement. In fact, the latest attempt to try and seal the deal was in April 2014 during President Barack Obama’s tour of Asia. The move has raised mixed reactions from abroad and in America. Despite the numerous trials, nothing much has been achieved, however, there is hope that maybe the two nations may come into an agreement in future.
During the talks, it was expected that that a two-way trade deal would be reached; a move that would pave the way for a broader agreement on Trans-Pacific Trade. The negotiations have stalled and one of the reasons why it has been so is believed to be due to Japan’s reluctance to open up farm sectors like the beef industry. However, President Obama gave an assurance that the two nations were close to reach an agreement on matters like agriculture and autos.
It is expected that the launching of a free trade agreement between Japan and US would necessitate a radical change in the trade policies of Japan. One of the changes that would occur is that the agricultural sector would be liberalized considering the fact that Japan has been quite reluctant to open up its agricultural sector. However, it is of great importance for Japan and China to first do some sort of review in order to establish whether such agreements may be healthy for their long term interests.
According to analysts, Tokyo and Washington need to embark on very serious exploration into whether the free trade agreement can be of use in the future. There are several benefits that can be achieved through such a trade agreement. The overall impact of the trade agreement would be dramatic on the economy considering the already high trade volume that exists between the two nations. With a free trade agreement, the policies of the two countries will be harmonized in many sectors including pharmaceuticals, direct investments, services and intellectual property rights.
In the long-term, a trade agreement between Japan and US could have significant political impacts. It is viewed that such a move would enhance institutional credibility considering the shared interests of the two nations. The existence of a trade agreement between the two states could be instrumental in the presentation of a united front as US and Japan engages other states like China on multilateral forums. The agreement would give Japan the chance to join the United States in championing the charge for free trade in the Asia-Pacific Economic Cooperation, World Trade Organization among other international organs.
For all your essay paper needs, do not hesitate to talk to us at Premium Essays. We are do academic research writing with unmatched professionalism to ensure that you are able to get original papers of superior quality always.Contact us now and get help online.