Joint Statement
Maintaining Momentum in the U.S.-Japan Economic Relationship
U.S.-Japan Business Council/Japan-U.S. Business Council
May 11, 2018
Following the summit meeting between President Trump and Prime Minister Abe onApril 17 and 18, the U.S.-Japan Business Council and Japan-U.S. Business Council (the“Councils”) take this opportunity to highlight the importance of the economic partnershipand good relations between the United States and Japan.
The U.S.-Japan economic relationship is mutually beneficial. Japan is a critical market
for U.S. exports of goods and services across a range of industries, with total exports
measuring almost $115 billion in 2017, making Japan the fifth largest market for U.S.
exports. The United States remains the second largest market for Japanese exports.
Investment flows also strengthen the bonds between our countries. Japanese companies
invest more in the United States than those from any other country except the United
Kingdom. As of 2017, Japanese companies cumulatively have invested over $410 billion
in the United States, providing over 800,000 well-paying jobs to American workers.
Japanese investment in the United States has increased significantly over the past fouryears, and has created thousands of new jobs in manufacturing and other sectors, thus
helping lower the U.S. unemployment rate. Japanese companies operating in the UnitedStates also pay billions in taxes and wages, contribute significantly to U.S. exports, andplay important roles in the communities in which they operate.
It is against this backdrop that the Councils urge both governments to find a positive andconstructive path forward in the economic relationship that can expand our trade andinvestment ties even further to support jobs and economic growth in both countries, andprovide collaborative leadership to establish a free and open global trading system thatwill also benefit both countries and the global economy.
The Councils recognize that unilateral measures will not lead to a resolution of the global
overcapacity of steel and aluminum production caused by market distorting measures.
The Councils urge both governments to accelerate the work on global overcapacity in steel
along with other nations under the framework of the G20 and the OECD, rather thanresort to tariffs, which is already leading to sharply higher prices for manufacturers andother steel users in the United States.
The Councils also urge both governments to lead efforts with other allies to promote freeand fair trade by establishing high standards and strong rules for trade and investment,
including enhanced intellectual property protection and clear rules that enable digitaltrade. The rules-based trading system is the basis of our mutually beneficial relationship,
and is essential for economic growth both in Japan and the U.S., as well as the rest of theworld.

In particular, the Councils have long advocated for U.S. – Japan collaboration inimproving market access and setting high standards and strong rules for trade andinvestment in the Asia-Pacific through trade agreements such as the Trans-PacificPartnership, Trade in Services Agreement, and Environmental Goods Agreement, as wellas APEC and other regional fora. Japan’s leadership role in moving the TPP-11 forward
is notable, as the agreement will, if enacted, raise standards in new areas like digital tradein important ways. The Councils believe that the United States and Japan should
continue to be ambitious in pursuing agreements that seek the highest standards andrules to facilitate and reduce the costs of trade, protect intellectual property to stimulateinnovation and the creative economy, and level the playing field in the Indo-Pacificregion.
We believe a critical aspect of the U.S. and Japan bilateral relationship lies in thiscollaborative approach to the dynamic markets and supply chain within the Indo-Pacific.
The Councils therefore encourage both governments to address our trading relationshipfrom this perspective in the new talks aimed at achieving “free, fair and reciprocal” tradeunder the leadership of U.S. Trade Representative Robert Lighthizer and Minister incharge of Economic Revitalization Toshimitsu Motegi.
It is also important to sustain momentum in the U.S.-Japanese bilateral economicrelationship in a collaborative manner. To this end, the Councils urge both governments
to pursue an ambitious and meaningful agenda under the Lighthizer-Motegi talks andPence-Aso dialogue that allows both countries to address bilateral trade and investment
issues, as well as cooperation on energy and infrastructure, in a timely and concrete way.
Given the rapid pace of technological change and need for regulations and standards toenable innovation and growth, these discussions, as well as existing dialogues on theinternet economy and cybersecurity, are important vehicles for improving businessconditions and increasing opportunities.
The Councils look forward to working with both governments to identify priority issues
and finding solutions in these and other areas in order to promote further expansion of
our bilateral trade and investment ties.