Society Trustee Outlines Plan for US-Japan Economic Integration

Matthew Goodman, a Japan-America Society trustee and a consultant with Stonebridge International, has co-authored a Financial Times article with former National Security Council officer Michael Green ("Why Saying Sayonara is the Hardest Thing to Do", June 27) that lays out a plan for economic integration between the United States and Japan.

Goodman and Green write, "we share the scepticism of many US-Japan experts about the feasibility - or desirability - of a [free trade agreement - FTA ] at this time."

"The idea is not ambitious enough: with few formal trade barriers between them, a conventional FTA would add little to US or Japanese economic welfare...At the same time, an FTA is probably overly ambitious in light of current political realities."

"Until both sides - but especially Japan - are ready to open fully their agriculture markets, a free trade agreement would be incomplete and politically untenable...."

"A more realistic approach would be to work on the 'building blocks' of an eventual comprehensive agreement. The two governments could seek to negotiate a series of smaller deals that addressed the underlying structural obstacles to full economic integration, covering services, investment, customs procedures and so on."

"In particular, the two governments could productively work on convergence of regulatory standards such as those covering healthcare products and services, financial services, and intellectual property. "

Goodman and Green conclude, "as the world's two biggest economies, with shared values, the US and Japan have much to agree on. Moreover, they could set the pace for global standards..."