Japan – East West Markets

Asia and Europe: Working Together

Brussels is close to signing a deal with Japan. This sentiment is quite antithetical to what went down with the EU-Canada trade pact (CETA) that was nearly brought to its knees last month. Now, things are quite different…which is quite surprising. As Alan Beattie, noted, Japan and Europe are having a much easier time making deals. He said that: “it seems remarkable that a country like Japan with an economy three times the size of Canada’s might be about to sign a trade deal with the EU with about a tenth of the hassle.” But it is unlikely that this will be the case with this deal. EU trade commissioner Cecilia Malmström stressed their commitment toward finalization of the deal.

The agreement is quite similar to the CETA one although somewhat dissimilar just due to the logistics: Canada’s economy is a third in size of Japan’s. The subjects still under discussion include: Japan’s auto industry regulations, amount of European agriculture exports allowed to Japan and the establishment of an investment court so that state/corporation disputes may be solved.

Currently the Japanese are stalling on the court; they are not convinced it is needed. The problem was inadequate provisions to ease legal action between such bodies when decisions made by nations hamper companies profits.

Meanwhile, vis-à-vis safety, a new network has been established by the International Atomic Energy Agency (IAEA) to bolster Europe and Central Asia’s nuclear and radiation safety. They are doing this by pushing dialogue and the exchange of knowledge between these regions’ member states. When the EuCAS Network (European and Central Asian Safety Network) was first formed, it was to unite 20 member states and 22 organizations and help them take equal responsibility for nuclear safety.

Asia Versus US: Economic Challenges

japanese-students Asia is potentially posing economic challenges for America. Jobs in the US are going to people in Asia more than ever. Back in the 1940s this was just relegated to the textile and clothing industries but now it has expanded into electronics, steel and shipbuilding, which is concerning for the US, especially since various regions in Asia are simultaneously encountering substantial economic expansion.

But there is more to the picture than this. Asia is also actually creating a lot of jobs for Americans in the fields on tourism, trade, FDI, immigration and education (Asian students who study at American universities). Furthermore, over 710,000 jobs in the America are supported by exports to Japan. True, the Japan-American affiliation is one of the world’s closest, wide-ranging and constructive bilateral ones to exist. Both are huge global powers (US being the first, Japan being the third) with high per capital wealth, quality of life and military spending. Indeed, according to the Japan Matters for America project set up by the East-West Center and Sasakawa USA, there have been substantially positive economic and employment gains from this partnership.

Looking at some relatively recent figures we find that in 2012, American exported $408 billion in good to Japan. A year earlier, services accounted for $156 billion (which was higher than the EU, Canada and Mexico). Indeed, Asia is actually the largest place US exports are sent, with particularly high numbers since the fiscal downturn of 2009.

It is also noteworthy that it is only Japan which is a major trading partner with America (in 2014 ranking number four for good exports). In the same year that was true for America in Japan. The exports in 2013 were said to have supported 17,000 Pennsylvanian jobs, while bolstering productivity most notably in manufacturing, transportation and retail. Furthermore, the Asia-Pacific region FDI results in the creation of jobs in America. The estimation of Japanese FDI in America was that it accounts for over 700,000 jobs.

America is therefore, definitely benefiting from Japan, in education (Japanese students studying in the US contribute $600 million to their economy) and with over 9.4 million Japanese visitors to the US, in 2014 that added $17 billion to the US economy.

Japan and America are clearly good for each other. Americans need to stop worrying about the power of their Asian friends and instead, start embracing it.

US-Japan Study Promotion

The 26^th annual Japan-American Grassroots Summit is currently in process. Held between October 4^th and 11^th it is being hosted in part by the University of North Georgia in order to promote the institution’s new academic degree in Japanese studies. There are 130 Japanese visitors at the summit this year. Around 30 Japanese guests will be hosted by the UNG. These individuals will be able to participate in cultural events taking place in Atlanta. Following that, they will go to their host families around the globe (Athens, Dahlonega and Gainesville).

Meanwhile, over in Minnesota, the Japan American Society of Minnesota’s Professional Group is likewise promoting cohesion between the two regions. Its career event that was held at the end of August was set up in order to “connect Japan-related business professionals from various fields to both college students and recent graduates who are pursuing Japan-focused careers.” At the end of this month, on October 26^th, the JASM will be hosting a Corporate Roundtable with JETRO Chicago’s Chief Executive Director, Ichiro Sone “to promote mutual trade and investment between Japan the rest of the world.”

AT the UNG event, Dr. Edward Mienie, UNG’s associate vice president for economic development and community engagement, and chair of UNG’s Regional Education and Economic Development Committee (REED) said: “This year’s summit will highlight Georgia culture and customs, local attractions, and the unique business relations between Japan and the Peach State for more than two decades, which profited $16.38 billion in 2015.”