Japan

The U.S.-Japan bilateral relationship features substantial trade and investment flows. However, the United States’ goods trade deficit with Japan is its third-largest one in the world. U.S. economic policy toward Japan seeks to address this trade deficit through free, fair, and reciprocal trade. In particular, the U.S. aims to expand access to Japan’s markets, increase two-way investment, stimulate domestic demand-led economic growth, promote economic restructuring, improve the climate for U.S. investors, and raise the standard of living in both countries. Japan represents a major market for many U.S. goods and services, including agricultural products, chemicals, pharmaceuticals, films and music, commercial aircraft, nonferrous metals, plastics, medical and scientific supplies, and machinery. U.S. imports from Japan include vehicles, machinery, optic and medical instruments, and organic chemicals. U.S. direct investment in Japan is mostly in the finance/insurance, manufacturing, and wholesale sectors. Japanese direct investment in the United States is mostly in the wholesale trade and manufacturing sectors.

Japan and the United States belong to a number of the same international organizations, including the United Nations, G7, G-20, Organization for Economic Cooperation and Development, Asia-Pacific Economic Cooperation forum, ASEAN Regional Forum, International Monetary Fund, World Bank, and World Trade Organization. Japan is also a Partner for Cooperation with the Organization for Security and Cooperation in Europe and an observer to the Organization of American States. In 2019, Japan assumed the G-20 presidency and hosted numerous ministerial meetings as well as the G-20 Leaders’ Summit in Japan.