Most of our trade growth, and most of our deficit occurred in the last ten years. Half our global deficit is with Japan and China. While concrete progress has been made in some areas with Japan, such as medical technology, semiconductors, and banking and securities, there are real problems in other areas such as construction and flat glass. The trade problem with Japan cannot be explained away simply by pointing to the current Japanese recession. A major reason has been, and remains, lack of market access.
Japan is in a serious recession.
The Japanese Government has formulated an economic recovery program, and we deeply hope it works. But recession is no reason for Japan not to live up to its trade obligations to further open and deregulate its market, or to do its part to absorb imports from recovering nations. It is a responsibility Japan must meet. Things must change. Japan must accelerate its structural reform program, fix its financial sector, and open its domestic market to greater competition.