COULD LIFT US ENERGY IMPORTS
Some analysts say Japan could use its huge US Treasury holdings – the largest in the world at over US$1 trillion – as trade leverage, but Kato this month ruled out using them as a bargaining tool.
“This is something that’s based on trust between the two sides, global economic stability, as well the two countries’ economic stability,” Ishiba said when asked whether Japan would refer to its US debt holdings during the talks.
Trump has hit Japan with 24 per cent tariffs on its exports to the US, although, like most of Trump’s levies, they have been paused until early July. A 10 per cent universal rate remains in place, as does a 25 per cent duty on cars, a mainstay of Japan’s export-reliant economy.
Nikkei Asia reported on Sunday that Japan is considering relaxing auto safety rules for imports as part of its tariff negotiations with the US. Washington has long complained that Japanese safety rules are a non-tariff barrier, while Japan and many experts say Detroit automakers do not make cars suited to Japan’s roads and drivers.
Asked about such accusations, Ishiba said there were differences in US and Japanese traffic and safety rules that must be taken into account. “But we also need to ensure we’re not told our (safety) rules are unfair.”
He signalled a readiness to pledge bigger Japanese investment in the US, particularly in the area of energy.
“As for liquefied natural gas, Australia is the biggest exporter to Japan. I believe the US is in fourth place. It’s possible we could have this increase. The question is whether the US can deliver (energy) stably,” he said.
