US to form economic dialogue with Japan

The U.S. and Japan will form an economic dialogue aimed at deepening their relationship that could propel the two allies toward bilateral trade talks.

Prime Minister Shinzo Abe said Friday that he and President Trump had agreed that Deputy Prime Minister Taro Aso and Vice President Pence would helm a group of government leaders to address strategic and economic issues facing the two nations.

“I’m quite optimistic that good results will be seen from the dialogue,” Abe told reporters at the White House.

The new dialogue will be “a big chance for both Japan and the United States but of course it must be done in a fair manner,” he said.

{mosads}Earlier this week, Japanese media had reported the possibility of the new framework, which was suggested by Japan to the Trump administration.

Abe was expected to come to Washington and urge Trump to reconsider withdrawing from the Trans-Pacific Partnership (TPP).

The Japanese leader was cautious when answering questions about the ramifications of the U.S. leaving the TPP behind. Japan ratified the deal last month. 

“Of course were are fully aware of President Trump’s decision,” he said.

He argued that the U.S. and Japan should build “a free and fair market based on rules” in the Asia-Pacific region. 

“That was the purpose of TPP and that importance has not changed,” he said. “I myself believe that.”

But Trump gave no indication that Abe’s arguments for the 12-nation deal were changing his mind. 

Trump said he would “seek a trading relationship that is free, fair and reciprocal, benefiting both of our countries.”

The president also mentioned lowering domestic taxes to increase exports and, responding to a question about China, mentioned that he would “level the playing field” on currency manipulation, a delicate issue for U.S. trading partners. 

Neither Japan nor China have been deemed to be manipulating their currencies.

In a further note about trade issues, Abe offered that state-owned companies should not intervene in economies and that intellectual property should be protected.

The two leaders are flying to Florida later Friday and are set to play golf on Saturday, when they will continue their wide-ranging discussions. 

“As for Japan and the United States, trade and investment as far as economic relations, [we have to see] how we can develop and grow our relationship,” he said. 

“Furthermore, in the Asia-Pacific where we see dramatic growth, to expand free trade and investment,” Abe said.

Japanese media reported that Japan will be represented by Aso — who also is the finance minister — as well as Foreign Minister Fumio Kishida, Defense Minister Tomomi Inada and Minister of Economy and Trade and Industry Hiroshige Seko.

The U.S. side is expected to include Pence, Secretary of State Rex Tillerson, Defense Secretary James Mattis and Commerce Secretary nominee Wilbur Ross.