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The economic futures of the United States, Canada, and Japan are tightly linked by the extremely powerful trade network these nations share. Yet because of trade and domestic policies aimed at preserving economic and, some argue, cultural integrity, there has at times been considerable friction among the three nations. Much of the recent trade animus of the U.S. has been aimed Japan, the country with the largest trade surplus with the United States. Canada, the largest trade partner of the U.S., maintains fiscal policies which resemble those of Japan, but has not been the focus of similar concern. Since the actions of each nation reverberate throughout the network, a full and accurate understanding of these complex relations will be essential if ongoing trade negotiations, policymaking, and international relations are to be constructive. The papers in this volume were developed from a conference that addressed the need to discover which structural determinants and policies shape the close economic ties among these nations. Leading experts on trade and macroeconomics from all three countries examine disproportionate saving rates, exchange rate volatility, varying industrial policies and levels of financial innovation, the effects of present tax policies and proposed reforms, and the dynamism of major Pacific nations and the leadership role Japan may play in U.S. relations with that region. Several important conclusions are reached by the contributors. They assert that Japan's trade barriers are relatively low overall and are comparable to those maintained by the United States and Canada, and that divergent fiscal policies have been the major source of macroeconomic imbalances between the United States and other major countries in the 1980s. They also conclude that current trade imbalances may persist for some time. The analyses offered here are likely to prove influential in future policymaking and will be of interest to a wide audience, including academic economists, government officials, and students of theoretical and policy issues of international trade, investment, and finance.
This volume reviews the past fifty years of the U.S.-Japan relationship and speculates about how it will evolve in the years to come.
Examining the 160 year relationship between America and Japan, this cutting edge collection considers the evolution of the relationship of these two nations which straddle the Pacific, from the first encounters in the 19th century to major international shifts in a post 9/11 world. It examines the emergence of Japan in the wake of the 1905 Russo-Japanese War and the development of U.S. policies toward East Asia at the turn of the century. It goes on to study the impact of World War One in Asia, the Washington Treaty System, the issue of Immigration Issue and the deterioration of US-Japan relations in the 1930s as Japan invaded Manchuria. It also reflects on the Pacific War and the Occupation of Japan, and the country’s postwar Resurgence, democratization and economic recovery, as well as the maturing and the challenges facing the US Japan relationship as it progresses into the 21st century. This is a key read for those interested in the history of this important relationship as well as for scholars of diplomatic history and international relations.
In this book, Aaron Forsberg presents an arresting account of Japan's postwar economic resurgence in a world polarized by the Cold War. His fresh interpretation highlights the many connections between Japan's economic revival and changes that occurred in the wider world during the 1950s. Drawing on a wealth of recently released American, British, and Japanese archival records, Forsberg demonstrates that American Cold War strategy and the U.S. commitment to liberal trade played a central role in promoting Japanese economic welfare and in forging the economic relationship between Japan and the United States. The price of economic opportunity and interdependence, however, was a strong undercurrent of mutual frustration, as patterns of conflict and compromise over trade, investment, and relations with China continued to characterize the postwar U.S.-Japanese relationship. Forsberg's emphasis on the dynamic interaction of Cold War strategy, the business environment, and Japanese development challenges "revisionist" interpretations of Japan's success. In exploring the complex origins of the U.S.-led international economy that has outlasted the Cold War, Forsberg refutes the claim that the U.S. government sacrificed American commercial interests in favor of its military partnership with Japan.
The balancing of competing interests and goals will have momentous consequences for Japan—and the United States—in their quest for economic growth, social harmony, and international clout. Japan and the United States face difficult choices in charting their paths ahead as trading nations. Tokyo has long aimed for greater decisiveness, which would allow it to move away from a fragmented policymaking system favoring the status quo in order to enable meaningful internal reforms and acquire a larger voice in trade negotiations. And Washington confronts an uphill battle in rebuilding a fraying domestic consensus in favor of internationalism essential to sustain its leadership role as a champion of free trade. In Dilemmas of a Trading Nation, Mireya Solís describes how accomplishing these tasks will require the skillful navigation of vexing tradeoffs that emerge from pursuing desirable, but to some extent contradictory goals: economic competitiveness, social legitimacy, and political viability. Trade policy has catapulted front and center to the national conversations taking place in each country about their desired future direction—economic renewal, a relaunched social compact, and projected international influence. Dilemmas of a Trading Nation underscores the global consequences of these defining trade dilemmas for Japan and the United States: decisiveness, reform, internationalism. At stake is the ability of these leading economies to upgrade international economic rules and create incentives for emerging economies to converge toward these higher standards. At play is the reaffirmation of a rules-based international order that has been a source of postwar stability, the deepening of a bilateral alliance at the core of America's diplomacy in Asia, and the ability to reassure friends and rivals of the staying power of the United States. In the execution of trade policy today, we are witnessing an international leadership test dominated by domestic governance dilemmas.
Relations between Japan and the US remain strong, and government-to-government relations continue to be productive. However, complaints can be heard. This volume reflects these sentiments and emphasizes the need to promote closer ties and greater understanding between the US and Japan.
This book explains compellingly that, despite common belief, in the early modern period, the intra-East Asian commercial network still functioned sustainably, and within that network, the Sino-Japanese trade can be seen as the most significant part which not only connected the Chinese and Japanese domestic markets but also was linked to the global economy. It is commonly thought that East Asian countries like China and Japan maintained a stance of so-called national isolation during the period from the seventeenth century to the middle of the nineteenth century. It is true that diplomatic relations between Qing China and Tokugawa Japan could have not been established for reasons such as guarantees of security; however, every year merchants in junks voyaged to Nagasaki and carried out transactions with Japanese merchants or business agents. How this kind of trade relation was maintained stably without any diplomatic guarantees and in which way the governments of the two sides edged into the trade and accommodated the trade conflicts and institutional frictions are essential but seldom-emphasized topics. This book aims to shed light on these issues and thereby examine the character of the unique trade order in early modern East Asia as well, by analyzing a large quantity of the seldom-used and unpublished Chinese and Japanese primary and secondary sources.
In Japan's Reluctant Realism , Michael J. Green examines the adjustments of Japanese foreign policy in the decade since the end of the Cold War. Green presents case studies of China, the Korean peninsula, Russia and Central Asia, Southeast Asia, the international financial institutions, and multilateral forums (the United Nations, APEC, and the ARF). In each of these studies, Green considers Japanese objectives; the effectiveness of Japanese diplomacy in achieving those objectives; the domestic and exogenous pressures on policy-making; the degree of convergence or divergence with the United States in both strategy and implementation; and lessons for more effective US - Japan diplomatic cooperation in the future. As Green notes, its bilateral relationship with the United States is at the heart of Japan's foreign policy initiatives, and Japan therefore conducts foreign policy with one eye carefully on Washington. However, Green argues, it is time to recognize Japan as an independent actor in Northeast Asia, and to assess Japanese foreign policy in its own terms.
The U.S.-Japan Alliance: Past, Present, and Future explains the inner workings of the U.S.-Japan alliance and recommends new approaches to sustaining this critical bilateral security relationship.