Obama New Trade Deal With Japan

Obama New Trade Deal With Japan

United States President Barack Obama met earlier this week with Japanese Prime Minister Shinzo Abe to discuss the current status of the two nations’ relationship to each other, with a highlighted emphasis on trade. The United States and Japan have had a long history together whenever it comes to import/export trade goods, dating back as early as 1951 when the United States and Japan signed a peace treaty.

Less than ten years later, Japan and the US began a technological assistance program and the two countries haven’t been the same ever since. What’s remarkable about Obama new trade deal is that if an agreement is soon struck, the United States economy will be able to avoid a problematic economy. As President Obama explained to the Wall Street Journal, ““If we don’t write the rules, China will write the rules out in that region… We will be shut out. American businesses, American agriculture. That will mean a loss of U.S. jobs.” In other words, we need to strike a deal with Japan, so that we may trade with them so that China won’t intercede with those deals and become take our place in the trading schematic.

Essentially, Obama new trade deal would make many great opportunities for both countries. Although it sounds as if Obama is trying to beat China to a trade deal with Japan, he assured everyone in an interview, reported by the Associated Press, that was not the case and that it’s as simple as, “we don’t want China to use its size to muscle other countries in the region around rules that disadvantage us.”

The results of the meeting have not been announced as of yet, other than the exchange between the two top officials was reported to have gone smoothly. In related news, the Economic Times report a similar meeting was held around the same time as Obama and Abe’s, with military defense in mind: “Japanese and U.S. foreign and defense ministers meeting in New York approved revisions to the U.S.-Japan defense guidelines. The new rules boost Japan’s military capability amid growing Chinese assertiveness in disputed areas in the East and South China Sea claimed by Beijing.

The changes, which strengthen Japan’s role in missile defense, mine sweeping and ship inspections, are the first revisions in 18 years to the rules that govern U.S.-Japan defense cooperation. “ Tensions amongst a lot of nations, not just the US and Japan, have certainly mounted over the last several months, so it’s a very positive and uplifting moment to see two countries coming together and making earnest attempts at coming to a resolve.