Japan’s top trade negotiator Ryosei Akazawa left for the US for ministerial talks, after lower level discussions on the July trade deal largely wrapped up – an indication that the two sides are making progress on implementing the agreement.
“Administrative discussions have been finalised, and I am now travelling to the US as I think we should hold ministerial-level talks now,” Mr Akazawa told reporters on Sept 4 at Tokyo’s Haneda Airport as he left for Washington.
“Both Japan and the US have agreed to implement the agreement reached in July faithfully and swiftly.”
The latest visit comes after last week Mr Akazawa abruptly cancelled his Washington visit, citing the need for staff-level talks. The sudden move spurred speculation that key differences in stance remain over the trade deal that’s delaying implementation.
For Japan, making sure that the US cuts car tariffs is particularly important as autos remain a key sector for the economy and a driver of wage growth.
It remains unclear whom Mr Akazawa may meet in Washington this time before returning to Japan on Sept 6.
Upon his departure, Mr Akazawa reiterated Japan’s desire for US President Donald Trump to issue an executive order to lower car tariffs and end the stacking of new universal levies on top of previous tariffs.
As part of the
July 22 trade deal,
the US agreed to set both at 15 per cent, Mr Akazawa has said.
The US side on the other hand wants to see a US$550 billion (S$709 billion) investment mechanism, a pillar of the deal, begin operating so that the Trump administration can use it to help revive American manufacturing.
Specific details of how the fund will function remain unknown.
Japanese Prime Minister Shigeru Ishiba has cited the implementation of the trade deal as one of the reasons why he should stay on amid calls within his party for him to resign.
The ruling Liberal Democratic Party is expected to decide on Sept 8 whether to
bring forward its leadership contest,
about two years before Mr Ishiba’s tenure is set to end.
Following a historic election setback in July, the party is trying to restore public support, and senior members of the party have already made clear their intentions to resign to take responsibility for the upper house election result.
Mr Akazawa, known as Mr Ishiba’s right-hand man, defended the Ishiba administration, saying that it continues to tackle pending challenges for Japan including implementing the trade deal and achieving wage growth that beats inflation.
“The Ishiba administration wants to continue to take responsibility,” Mr Akazawa said. “I don’t believe there is any need to bring the leadership race forward.” BLOOMBERG
AloJapan.com