China is also promoting another trade deal, the Free Trade Area of the Asia-Pacific (FTAAP).
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Here is a quick look at the positives and negatives for the world’s most dynamic economic region. He has said the deal would undermine the USA economy.
There has been some anxiety about a candidate who has expressed movesto null or complicate Japan-U.S. trade relations, about a man who has threatened that Japan should have topay more for the cost of the American military presence in Japan.
However, defense spending still stands at just over 1 percent of GDP against over 3 percent in the United States. Still, beneath the surface of what will likely be a friendly encounter, Japan – like the rest of Asia and the world – is deeply anxious about what a Trump presidency means for its own security in the face of growing threats from China and North Korea.
Japan, one of America’s closest allies in the Asia Pacific region, had been expecting the Democrats to retain the White House, and the Japanese leadership were caught off guard by the election outcome.
Entering Trump Tower in NY on Wednesday morning, Trump’s son, Eric Trump, was asked by reporters if any positions would be named on Wednesday.
Their agreement comes in the wake of the election of Donald Trump as the next USA president.
The RCEP includes the 10 members of the Association of South East Asian Nations (ASEAN) plus China, Japan, South Korea, India, Australia and New Zealand.
Japan allocated $1.9 billion in its last budget for the American bases, which house nearly 50,000 USA personnel, although its total contribution, including other costs like civilian salaries, is more than double that. A new report warns of a leadership vacuum and even a nuclear arms race if the USA withdraws from a region threatened by a provocative North Korea. It is not unreasonable, in our view, to foresee a commitment to build added USA factories and raise Japan’s investment into America as a result of this meeting.
Former Chinese vice-commerce minister Wei Jianguo agreed, saying that while Trump labelled China a currency manipulator and threatened trade wars, he might have a more open attitude towards China-backed institutions and investment programs. This could provoke countermeasures from the nation’s top trading partner that could ultimately harm both economies.
Japanese newspapers have been thoroughly covering the United States election. Tighter immigration restrictions would be damaging for the Philippines too, given that America hosts 35 percent of all Filipinos working overseas and accounts for 31 percent of total worker remittances, a key source of foreign earnings.
During his election campaign, Mr Trump took a protectionist stance on trade issues and labelled the TPP championed by President Barack Obama a “disaster”. “The first step will be for Trump to sign the USA up as a member of the China-led Asian Infrastructure Investment Bank (AIIB)”, he predicted.
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Japan lost out to China in bidding in September a year ago for a high-speed rail link in Indonesia between the capital Jakarta and Bandung, a provincial capital.
