Also, Japan's business sector and media are more reticent. But Calder said this is changing, and that it may be possible to tap seeds of discontent to help advance American interests. Calder said it is likely that the upcoming meeting of G-7 nations in Birmingham, England, will touch on Japan's banking crisis and the United States' longstanding call for deregulation, which would make it easier for other countries to bring their products to market in Japan. The United States has a great stake in the health of the Japanese economy. Japan is one of this country's largest trading partners, and if the economic package does not succeed, Calder said that market forces in Japan may create pressures that would cause an expansion of exports, again widening the U.S.-Japan trade deficit.
Japan needs to be that second locomotive.
Examples include attempts to improve telecommunications or create more housing in Japan by taking advantage of advanced earthquake-proof building methods that could permit taller buildings. The United States' relationship with China also complicates matters, Calder explained. Yet each overture from the United States toward China affects the U.S-Japan relationship. With the Japanese people voicing displeasure with America's military presence in their country, the U.S.-Japan relationship is one that needs to be handled with care, Calder said.