The Politics of Trade Liberalization in Japan

Abstract

This chapter talks about the politics of trade liberalization in Japan; that is, about the obstacles the Japanese government has faced in opening its markets and the ways in which it has gone about overcoming those obstacles. Some analysts have found the roots of Japans reluctant approach to free trade in the nation's unique cultural traditions or historical experience. Historical factors are seen as impeding Japan's development of an open economy. The historical development of Japan's economy has produced institutions and systems which can impede trade. Japan's ability to pursue a coherent strategy in a multilateral trade negotiation such as the Tokyo Round or to implement broad trade liberalization measures is hampered by the absence of a bureaucratic or political institution capable of overcoming the divisions among the different ministries. Several sets of factors can help explain Japan's success in overcoming domestic opposition to trade liberalization.