TOKYO \u2014
Japan is scrambling to respond to intensifying trade pressure from U. S. President Donald Trump, with Prime Minister Shinzo Abe planning to meet the head of Toyota Motor Corp this week and business lobby Keidanren setting up a Trump task force.
Abe will visit Washington Feb 10 for talks with Trump at which the U. S. leader is expected to seek quick progress toward a two-way trade deal with Japan and discuss the automotive sector.
Ahead of those talks, Abe will meet with Toyota Chief Executive Akio Toyoda, two sources told Reuters. One of them said the meeting would take place on Friday.
In a phone call with Abe on Saturday, Trump reiterated his pledge to create jobs in the United States and asked that the Japanese auto industry contribute, the Nikkei business daily reported, quoting unidentified Japanese government officials.
The two leaders discussed the automotive industry, senior government spokesman Koichi Hagiuda told reporters after the phone call, without giving details. A White House statement said the two \u201ccommitted to deepen the bilateral trade and investment relationship.\u201d
Abe has left open the door to discussing a free trade agreement (FTA) with the United States but some officials worry Japan would have little to gain while coming under intense pressure from Washington. Bilateral talks on specific sectors such as autos, however, are an option, officials have said.
Trump, who last week dropped out of the 12-nation Trans-Pacific Partnership pushed by his predecessor Barack Obama and favored by Abe, has repeatedly attacked Japan\u2019s auto market as closed in an echo of criticism heard two decades ago.
Japan has rejected that criticism, saying it does not impose tariffs on U. S. auto imports nor put up discriminatory non-tariff barriers.
Over the decades, Japanese automakers have developed SUVs, minivans and pickup trucks specifically targeting American consumers\u2019 taste for bigger cars, while U. S. brands have struggled to make inroads in Japan, where drivers overwhelmingly prefer domestic brands.
Foreign-branded cars accounted for only 7% of the passenger car market, led by Germany. American brands collectively made up less than a third of 1% of passenger cars sold in Japan last year.
Toyota has come under fire from Trump for plans, announced in 2015, to shift production of its Corolla to Mexico from Canada. Earlier this month, Japan\u2019s top automaker said it would invest $10 billion in the United States over the next five years, the same as the previous five years.
Toyota says it directly employed about 40,000 American workers as of December 2015 and indirectly more than 200,000 if dealers and suppliers are included.
Japan\u2019s biggest business lobby Keidanren plans to beef up its information gathering and analysis of the Trump administration\u2019s policies while also conveying data on Japan Inc\u2019s importance to the U. S. economy, a Keidanren official said.
\u201cWe will create a task force the main purpose of which is to convey correct information about the contribution of Japanese firms in the United States,\u201d said another Keidanren official, who declined to be identified because he was not authorised to speak to media.
Japan\u2019s government is already trying to give Trump\u2019s administration a crash course on its companies\u2019 contribution to U. S. jobs and growth, with fact sheets showing, among other things, that Japanese companies created 839,000 jobs in America, second only to Britain.
Tokyo came under harsh U. S. criticism in the late 1980s and early 1990s, when Japan accounted for up to 60% of the U. S. trade deficit.
But now its share has shrunk to less than 10%, while China\u2019s has ballooned to nearly 50% – something Japanese officials are trying to stress to American counterparts.
Automobiles and car parts account for about three-quarters of the overall Japan-U. S. trade gap, making it an easy target.
Japanese media have begun reminiscing about the heated U. S.-Japan auto talks 20 years ago. A last-minute deal in June 1995 averted U. S. tariffs on Japanese luxury cars when Japan\u2019s automakers crafted \u201cvoluntary plans\u201d to boost purchases of American auto parts and expand production in the United States.\u00a0
(c) Copyright Thomson Reuters 2017.<\/p>\n