The US and Japan trade deal seems to be drifting further away from completion. Both sides have failed to reach an agreement on trade at the G-7 summit and this has left the Asian nation moving closer to a possible recession as US tariffs start to hit its economy.
US President Trump and Japanaese Prime Minister Shigeru Ishiba appear to not be on the same page. Japan were keen to meet with Trump in Canada at the G-7 meeting and hoped to persuade him to drop tariffs, which have impacted Japan’s auto companies and affected the country economically.
However, neither side were able to reach an agreement, with Ishiba saying:
“There are still some points on which the two sides are not on the same page, so we have not yet reached an agreement on the trade package.”
“We will continue to actively coordinate with the United States to reach an agreement that is beneficial for both countries, without sacrificing Japan’s national interests,” the premier said after the meeting.
An agreement would have delivered concessions on some of Japan’s key concerns, inculding auto tariffs. If Ishiba were to have delivered a trade deal, it would have likely helped boost his leadership and government, which took a bashing last October in a national election, leaving him with a minority government.
But according to Bloomberg, the fact the two sides have failed to reach a deal, could work in Ishiba’s favor as it shows he has the country’s best interests in mind, as opposed to rushing into a deal that may proved unsatisfactory.
AloJapan.com