Forging a Stronger Economic Alliance between the United States and Japan

Overview

The alliance between the United States and Japan has been a force for peace and prosperity around the world for nearly 60 years. Economics has been at the heart of the U.S.–Japan alliance from the outset: Article II of the Treaty of Mutual Cooperation and Security mandates that the two allies “seek to eliminate conflict in their international economic policies and … encourage economic collaboration between them.” Nowhere are U.S. and Japanese strategic interests more closely aligned than in the Indo-Pacific region.

Both Washington and Tokyo seek to ensure regional security and stability, expand trade and other economic opportunities, and support universal democratic norms. The two countries have worked constructively together for many decades to shape regional economic rules and norms through institutions such as the Asian Development Bank and the Asia-Pacific Economic Cooperation (APEC) forum.

Powerful forces are driving further strategic convergence between the United States and Japan. In the wake of U.S. withdrawal from the Trans-Pacific Partnership (TPP), China has launched an aggressive bid for economic leadership in the Indo-Pacific region, and economic coercion has become an increasingly common tool of Chinese statecraft. The China challenge is particularly pronounced in the areas of infrastructure and technology.

A more robust and coordinated economic statecraft, jointly pursued by Washington and Tokyo, is central to advancing U.S. and Japanese interests in the Indo-Pacific region. U.S. withdrawal from TPP has neither eliminated the agreement’s underlying logic nor closed the door on further strengthening U.S.–Japan economic cooperation. By working together to advance their preferred rules and norms, Washington and Tokyo can ensure better economic outcomes for themselves and others.

To explore opportunities for greater economic cooperation between the United States and Japan in third countries, the Center for Strategic and International Studies (CSIS) in Washington and the Asia Pacific Initiative (API) in Tokyo embarked on a joint research project in the spring of 2017.

Project Structure

The project was split into three stages. The first stage commenced by identifying key factors to determine which countries and functional organizations should be taken up as case studies, such as the country’s rate of economic growth, its geopolitical importance, vulnerability to coercion, the involvement of U.S. and Japan in those markets and the efficacy of an institution or mechanism. Meetings and videoconferences between Japanese and American counterparts including high-level experts, including Heizo Takenaka, Takeshi Shiraishi and James Zumwalt, were held. Based upon the discussions, the following case studies were decided upon: India, Myanmar, South Korea, Vietnam, G7 and Regional Trade Architecture.

The second stage involved researching and investigating into each case study. We held numerous roundtable discussions in Tokyo and Washington at which we presented our preliminary research findings to promote discussion with businessmen, government organizations, professors with country expertise and policymakers. A field trip to Myanmar and Vietnam was undertaken in March 2018, during which we engaged in hearings with embassies, local government staff, journalists and multilateral banks. Upon return, research findings were consolidated and the case studies were completed. Experts gave reviewed the individual case studies.

In the third and final stage of the project, we drew cross-cutting policy recommendations from the case studies. Roundtables and consultations with high-level experts were held in Washington and Tokyo. The final report was released with rollout events in Tokyo on November 29, 2018 and in Washington on December 3, 2018.

Report

Please click here to read the report(pdf, 100pages)

Report

Photos

High-level Expert Breakfast Meeting in August 2017

Vietnam expert roundtable in December 2017

Lunch meeting with Yangon Chamber of Commerce

Visit to Thilawa SEZ, Myanmar

Panel discussion at the report launch event on November 29 2018

Mr.Goodman (on the right) at the launch event

Authors

船橋 洋一
Project Leaders
Yoichi Funabashi
Co-founder and Chairman, Asia Pacific Initiative

 

マシュー・グッドマン
Matthew Goodman
Senior Vice President, Center for Strategic and International Studies

 

大矢 伸
Washington Coordinators
Shin Oya
Senior Consulting Fellow, Asia-Pacific Initiative

 

中島 裕行
Hiroyuki Nakashima
Director General, Equity Finance Group, Equity Investment Department, Japan Bank for International Cooperation (JBIC),

 

寺田 貴
Adviser
Takashi Terada
Professor of International Relations, Doshisha University

 

ハリー・デンプシー
Research Leaders
Harry Dempsey
Research Associate, Asia Pacific Initiative

 

ダニエル・レムラー
Daniel Remler
Former Research Associate, Center for Strategic and International Studies

 

アン・リステラッド
Ann Listerud
Research Associate, Center for Strategic and International Studies