US, Japan Agree on 'Framework' for Trade, Investment Dialogue

Agreement on a "framework for dialogue" on trade and investment relations was announced by President Donald Trump and Japanese Prime Minister Shinzo Abe after a White House meeting.The cross-sector dialogue will be led by Vice President Mike Pence and Japanese Finance Minister Taro Aso, Trump and Abe said at a joint press conference. Abe noted the high level of Japanese investment in the U.S., citing the auto sector, and he said Japan would like to bring its high-speed, magnetic-levitation trains to the U.S."Now, with the birth of the Trump administration, a new genesis will be built between Japan and U.S. in economic relations," Abe noted. "In order to put forward such a strong message, I have proposed to launch a new framework for economic dialogue, and we were able to agree on this."From the U.S. side, Trump said trade relations between the two countries would be "free, fair and reciprocal." While Abe noted the purpose of the 12-nation Trans-Pacific Partnership (TPP) pact -- which has been abandoned by Trump -- was to create "a free and fair common set of rules" for trade, adding that for him the importance of the deal "has not changed."TPP could serve as a template for a US-Japan bilateral trade deal, analysts told Bloomberg BNA. It includes a legal chapter establishing competition policies for state-owned enterprises and an extensive chapter — the longest in the pact — on intellectual property rights.Abe noted trade and investment cannot be conducted in a "fair manner" when state-owned enterprises are backed by state capital and when companies get a "free ride" on intellectual property.