CLSA's Smith Says Pity for U.S. to Miss Out on TPP

The transcript discusses the significance of US involvement in global trade deals, particularly with Japan. It highlights Japan's ambition to secure trade agreements as part of Abenomics, noting its low import tariffs compared to the US and Europe. The discussion also covers the impact of President Trump's visit to Japan on bilateral trade relations, with Japan's reluctance to sign new agreements but a willingness to address the US trade deficit. Japan's strategy to manage its trade surplus by producing cars in the US and Mexico is also examined.

Why is it considered beneficial for the US to be part of international trade deals?

• It ensures cultural exemptions are respected.

• It helps maintain global relevance and influence.

• It allows the US to impose higher tariffs.

• It reduces the need for bilateral agreements.

What is a major component of Abenomics related to trade?

• Focusing on bilateral agreements.

• Reducing cultural exemptions.

• Securing international trade deals.

• Increasing import tariffs.

How does Japan manage to benefit from trade treaties despite low import tariffs?

• By tying up trade treaties with various countries.

• By forming bilateral agreements with the US.

• By focusing on cultural exemptions.

• By increasing tariffs on European goods.

What was Japan's response to President Trump's visit regarding trade agreements?

• Japan agreed to sign new bilateral agreements.

• Japan decided to increase tariffs on US goods.

• Japan expressed no intention of signing bilateral agreements with the US.

• Japan planned to eliminate all trade deficits immediately.

How has Japan managed to address higher tariff rates in the US and Europe?

• By exporting more cars directly from Japan.

• By increasing tariffs on US and European goods.

• By reducing production in Mexico.

• By producing cars within those markets.