US and Japan Relations

Lecturer: Dr. Masayo Goto1

Major issues
Japan-US economic relations
 Trade disputes past and present
 Present and future economic relations
Japan-US political and security issues
 US-Japan Security Alliance US bases in Japan (Case study: Okinawa) Realignment of U.S. forces in Japan Japan’s security option2

US-Japan Economic relations

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US-Japan economic relations in 1980s
US pressured Japan to open the domestic market to US products
 make structural changes
 promote the liberalization and deregulation ofthe Japanese economy
Japan was cited for unfair trading practices↓Japan Bashing
1988 Omnibus Trade and Competitiveness Act
Super 301

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US-Japan economic relations (1990s)
1989-1990 Structural Impediments Initiative (SII) by BushAdministration
1993 US-Japan Framework Talks on Bilateral Trade by
Clinton Administration
1994 Clinton revived Super 301
End of 1990s – relaxed to push Japan to open its market⇒ End of Japan bashing?
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US-Japan trade disputes Automobile andauto-parts (1970s – 1990s)
Two-thirds of Japan’s trade surplus resulted fromthe auto-related trade

1st phase (1980): open the door for theimportation of US automobiles and parts in Japan- agreeing numerical target

2nd phase (1984): voluntary restriction on theexport of Japanese cars to 1.68 million

Threat Japan through punitive sanctions
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US-Japan trade disputes
Semi-conductor disputes (1980s)
Super 301 of the 1974 Omnibus Trade Act - ledto the signing of the US-Japan Semi-conductor
Accord in 1986


Expand US access to the Japanese market and toforestall dumping Japanese semi-conductors overseas
US introduced retaliatory measures against Japan byimposing a 100% tariff on personal computers (1987)
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Current economic issues – US beefFor US, Japan was the largest beef market
prior to the ban, generating sales of about$1.7 billion prior to 2003
Japan placed the ban on U.S. beef in 2003
after one U.S. cow tested positive for madcow disease
Japan is urging the US to test all cattle or
take equivalent measures that Japan is taking
to ensure they are free of BSE
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Current economic issues – US beef (Cont’)

The US has called on Japan to lift the importban ⇒ may impose economic sanctions
worth some $100 million a month on Japanfor continuing its ban on U.S. beef imports
due to mad cow disease
Japan agreed to waive tests for cattle under
21 months because risk of infection is low
among young cows ⇒ That waiver did notinclude U.S. beef imports

Remain divided over Japan's 17-month-old importban on American beef9

Japan-US economic relations in future
Japan and US appear to have good
economic relations except foragricultural product↓Is Free Trade Agreement possible
between the US and Japan?

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US-Japan Security relations

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US-Japan Security Treaty1951 Treaty of Mutual Cooperation and Security(Japan-US Security Treaty)1960 Renewed the US-Japan Security Treaty

US redeployed its military in Japan not to defend
Japan, but keep Japan out of military build up

US was granted the use of bases and related
facilities for the purpose of contributing to thesecurity of Japan and Far East

1978 Guidelines for US-Japan Joint Declaration onSecurityCalled for joint studies of operation issues
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US-Japan Security Relations (1990s)1996 US-Japan Joint Declaration on Security:Alliance for the 21st Century
Bilateral efforts to strengthen the security alliance Technology exchange Ballistic Missile Defense (BMD) research Military cooperation to deal with situations inareas surrounding Japan

1997-1999 Revision of the US-Japan DefenseGuidelines
Japan’s military support for the US in East Asia
 Dispatch of the SDF to provide logistical support

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Current US-Japan Security Relations(US perspective)






Threats exist in Asia (Russia, China, DPRK)Japan requires strong US security presence inJapan because of economic significance in theEast Asia Pacific area
US-Japan security alliance helps stabilize EastAsia
Existing security relationship will keep Japansusceptible to US demands to concede on tradeand economic issues???

14Current US-Japan Security Relations(Japan’s perspective)
US-Japan Security Treaty is the centerpiece ofJapan’s foreign policy US forces can stay in Japan under the treaty Threats exist in Asia (Russia, China, DPRK) Retain the nuclear shield provided by the US Abandon antimilitarist culture and remilitarization
 Use of force is prohibited by the Constitution↓US military bases are necessary in Japan because ofpotential threats and Japan’s limited self defense↓
However, there are many problems surrounding USbases in Japan

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US Military Bases in Japan(Problems of Okinawa)
The majority of US bases and military personnel stay inOkinawa for 50 years



Noise pollution - Reduction of the number of takeoffs andlandingsCrimes by US servicemen

Massive anti-base demonstrations

Safety issues

16Interim report on the realignment of U.S.
forces in Japan (agreed on Oct. 29 2005)


The US will reduce the number of marines inOkinawa by 7,000; Japan will consider bearing thefinancial costs of relocating the marines to Guam
A 1,800-meter-long airfield will be built on coastal
land and refilled land off Camp Schwab in Nago torelocate the heliport functions of the Futenma Air
Station in Ginowan
The US will upgrade its army headquarters in Japan
into a new command organization at Camp Zama inKanagawa prefecture
17Interim report on the realignment ofU.S. forces in Japan (Cont’)

The Air Self-Defense Force will relocate the Air Defense
Command to U.S. Yokota Air Base.
The two sides will discuss integrating remaining U.S.
Marine Corps operations in Okinawa to enable return offacilities to Japan in densely populated areas.

The two sides will consider deploying a new U.S. X-bandradar system in Japan

Reduction of the burden on Okinawa hosting US forces

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Japan’s Security options
Option 1.
Remain aligned with the US(Military dependence on the US)
Option 2.
Remilitarization
Option 3.
Alternative security paradigm?
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Questions


Question 1: To protect the nation from possible threats,
Japan needs security alliance with the US, and thus US
military presence in Japan is crucial. However, variousissues concerning US military basis in Japan and Japan’s
tendency to follow the US have posed a question ofwhether or not Japan should maintain the same US-Japan
relations. Should the US-Japan Security Treaty be renewed
and US bases in Japan be reduced to improve the bilateralrelations?
Question 2: Should Japan continue to relay on the US formilitary to defend the nation? What are Japan’s security
options?
Question 3: Japan has made a number of FTAs with AsiaPacific countries, however, has not made one with the US.
What is a prospect of concluding a FTA with the US? Whatare major obstacles and issues?
20End of lecture(Japan-US relations)21