The Discussion of the Conclusion and the Effect of US-Japan Trade Agreement

Abstract

Purpose: The purpose of this study is a discussion of Trade Agreement in products and the Digital Trade Agreement between US and Japan. This study contains an investigation of the process and the highlight of the agreement. By the trade agreement, US has obtained the Third biggest agricultural market which came after the decline in the nation’s trade deficit with Japan and the opening of agricultural market. In contrast to US, the aim of Japan’s trade agreement was avoiding tax-increasing on cars and its components. In this study, the issues and arguments caused by these different aims of the agreement will be analyzed. Research design, data, and methodology: The contents of the study are 1) an investigation on the details of US-Japan Trade Agreement, 2) an analysis of the highlight of Trade Agreement in products and the Digital Trade Agreement, 3) a comparison of importation of tax-decreased products by the trade agreement, 4) an investigation on the safeguard of Japan which was instituded during the trade situation, 5) the conclusion of this study. The contents of the study has its value in analyzing the issues and the arguments of these trade agreements. Results: The comparison of Japan’s importation with US between 2019 and 2021 is as follows. The percentages of foods and chemical products did not show meaningful change. The figure in ordinary machines and Electric devices has decreased. Meats and grains account for the 62.5% of total food which were 452.4 billion yens and 516 billion yens respectively. US’s importaion with Japan after the agreements accounts for about 5%(6.6 billion dollars) of total importaion with Japan. The importation percentages were ranked as follows: Ordinary machines, components of non-metal products, electric devices, optical instruments, metal products. The rates of these products have not changed in a meaningful figures. Only a few products have changed. The figures of ordinary machines, electric devices, rubbers have decreased. Implications: The trade between US and Japan was enlarged after the trade agreements between two countries. US oppressed Japan in order to compensate a loss which was caused by withdrawal from the TPP. Japan approached to the agreement with US to avoid tax-increasing in cars and its components. This study is challenging since the study was conducted not long after the agreements. However, the results in this study are valuable as one of the first researchs about the effect of US-Japan trade agreements.