The biggest focus of trade talks this month in Tokyo appears to be Japan’s auto industry.
“Right now all foreign penetration of the Japanese auto market is 6%,
and so everyone believes there’s a long way to go before we can really
say the Japanese market is open,” U.S. Trade Representative Mike Froman
told reporters in Washington on Friday. The concern with Japan isn’t
tariffs but “a number of voluntary measures that have been employed over
the years that have had an adverse effect on auto imports, whether it’s
from the U.S. or Korea or Europe.”
Mr. Froman is traveling to Tokyo on Aug. 19 to discuss Japan’s entry into the Trans-Pacific Partnership,
which includes many Asian and Pacific Ocean countries but not China.
He’ll also gather with officials from TPP countries in Brunei on Aug. 22
and 23.
Currently, other U.S. officials, including Acting Deputy U.S. Trade Representative Wendy Cutler, are holding bilateral talks with Japan on trade issues including beef, insurance and cars.
Japan recently loosened restrictions on U.S. beef. Meanwhile, Japan Post Holdings Co., a government-controlled titan in financial services, last month announced an insurance alliance with American Family Life Assurance Co. Still, U.S. officials are seeking more progress in the insurance and agricultural sectors in Japan.
But Japan’s auto market is the crown jewel, and Washington is under
pressure from Michigan lawmakers and domestic automakers to improve
conditions for U.S. cars there. Detroit is worried that the cheaper yen
and moves to eliminate U.S. tariffs will boost sales of Japanese cars.
Still, in cars and other sectors, U.S. companies and officials are
well aware that previous efforts to win greater access to Japanese
markets haven’t always borne fruit.
“We all bear the scars of trying to open Japan’s markets in the
past,” Mr. Froman said. “So we go into this with our eyes wide open.”
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