On Thursday, the Japanese newspaper Yumiuri said, quoting government sources that Tokyo seeks to negotiate between Japanese negotiation on customs duties, Rioza Akazav and US Minister of Finance Scott Devent during an American official’s visit to the Expo World Expo exhibition next week.
Prime Minister Shiggero Ishaba said that Japan would continue negotiations on customs duties with the United States to reach a useful agreement for both parties, after US President Donald Trump raised customs duties on Japanese imports to 25 percent as of August 1.
The Yumiuri newspaper reported that Japan seeks to hold the first ministerial negotiations on customs duties with the United States in Japan until a new period of negotiations of the first of August. Japan and the United States previously held 7 ministerial negotiations on customs duties in Washington.
Pesent plans to visit the “National Day” of the United States on July 19 at the activities of Expo 2025 International Expo in Osaka, Western Japan, with an American delegation. The Yumiuri newspaper reported that Japan, most likely, will have a phone between Akazav and Bicycles before the latter arrived, and a personal assembly was held during the official official of the US country. Japan can also try to meet between Isibu and Pesit.
“Yumiuri” indicated that Ishaz instructed Akazav to concentrate on negotiations on the definition of customs even during the election campaign in the Senate on July 20.
Currency
In the appropriate context of Massago Asakawa, a former chief official in Japanese currency cases, Reuters told that Japan is unlikely to encounter pressure from the United States in order to intentionally strengthen Ien, despite the critic of President Donald Trump against her great trade excess with the United States.
Trump’s main attention on the decision of the American trade deficit and his statements on how to keep Japan on the weaknesses of the yen, raised speculations about the possibility of Tokyo in order to be pressure to change the cost of the yen in relation to the dollar and give American manufacturers a competitive advantage.
Asakawa emphasized that the standard of the dollar as a global backup currency is still strong. Nevertheless, he became more likely to press after Trump announced on April 2 to impose comprehensive “mutual” customs definitions.
He said that in an interview with him is late on Wednesday: “If the dollar is weak, this will accelerate inflation in the United States, the risk that the Minister of Finance of the United States, Scott Immordin, knows well about this,” he said in an interview with him late on Wednesday.
“As a science, there are no special debates on currency issues between Besent and Japanese Finance Minister Katsosobo Kato in the context of trade negotiations,” Asakawa said.
When he was asked about the possibility of a coordinated decrease in the cost of the dollar, similar to the “Plaza -Contribution” of 1985, in which Washington headed the seven advanced group countries to weaken the American currency, he denied this opportunity. He said: “It is unlikely that there will be a second agreement on the area,” indicating the need for an agreement from China and Europe.
Asakawa maintains close contact with current politicians. Being Deputy Minister of Finance on International Affairs from 2015 to 2019, Asakava was deeply involved in Japanese negotiations on trade and currency with the United States during the first period of Trump as the president of 2017.
Asakawa explained that during the first term of the authority of Trump as president then the Prime Minister Sinzo Abe managed to convince the American president to leave the exchange rate in the hands of financial officials. He continued: “Since then it seems that the idea to leave currency affairs to the financial leaders is firm in the American administration.
Complex conversations
In the first performance of his face in April, Kato said that he agreed with the “song” to continue the “constructive” dialogue about foreign exchange policy, but he did not discuss the establishment of currency or structure to control the movements of the yen.
The dollar index, which reflects its results against a basket of 6 other currencies, became a witness to its worst first this year since 1973; This decreased by about 11 percent. To date, the dollar has decreased by 7.5 percent against yen.
Asakawa said that it is difficult to predict the results of bilateral trade negotiations; Trump showed no interest in the efforts of Tokyo to receive concessions on a fee for a car. Asakawa added that in Japan there are several documents that it can use in trade negotiations with Washington, such as a promise to improve investments in the United States, reconsider the safety standards of local cars and contribute to LNG projects in Alaska … He said: “Instead of gradually providing them, it is better to provide them with one bag.”
The future is concerned
Meanwhile, the Japanese Central Bank announced on Thursday that the influence of the US customs duties on Japan’s export and their production is currently limited, but many companies are concerned about the risk of weak global demands in the future.
While some areas in Japan have witnessed the deposition of companies for capital expenses or their consideration, other companies said that the companies continued to increase the expenses for simplifying operations and confront the lack of employment, according to the summary of the department of managers of regional branches of the Central Bank of Japan.
Speaking about how high American customs duties affect the production of exports and factories in the Japanese regions, this summary said that “the influence is currently limited at present … as for expectations, many areas have witnessed the expression on their concern for the reduction of demand as a result of high prices for the sale of the United States and the slowdown of the global economy.”
In a separate report, the Japanese Bank retained its assessment of all nine regions, as it was three months ago, emphasizing that its economy is recovering moderately.
The resume and report will be among the factors that the Bank of Japan will study at the next meeting of economic policy on July 30 and 31. Where the Council will issue new quarterly expectations of growth and prices.
