U.S.-Japanese Trade: Perceptions and Reality

Abstract

THIS PAPER ANALYZES two main topics-first, recent trends in U.S.-Japanese economic relations and, second, the interface of American and Japanese interests in the Pacific Asia region. The former area, the direct trading relationship between the United States and Japan, is of obvious importance to both countries and has received a good deal of attention in recent months, both in bilateral talks and within the multilateral framework of the Tokyo Round of GATT. The U.S. is the most significant market for Japanese exports, usually accounting for nearly 20% of the total, whereas Japan is in second place, right after Canada, as a very important market for U.S. goods. The indirect trading relationship, involving the rest of Pacific Asia, is also of great and growing significance for both countries. The developing countries of Asia, particularly the capitalist-roaders' (to coin a phrase), have become a strategic source of raw materials for both Japan and the U.S. These countries also have attracted significant flows of