Can Japan Become as Deeply Integrated an Economic Partner as Great Britain?
Strengthening the U.S.-Japan security alliance in order to make Japan the “England of the Far East” is an ambitious objective. However, promoting economic integration with Japan on the same level of depth as with England is in some ways even more challenging. The United Kingdom is America’s second largest non-NAFTA trade partner and largest recipient of FDI from the U.S. For most of the last two decades bilateral trade and investment flows have been roughly in balance and trade tension practically non-existent (although as a member of the EU the UK has been party to a number of high profile disputes with the U.S.). In year 2000 U.S. exports to the UK were $41.6 billion versus imports of $43.46 billion resulting in a small trade imbalance of $1.86 billion. In 2001 it is projected that the U.S. will have a positive trade surplus with the UK. Continuously deepening investment ties have played a important role in deepening trade ties and minimizing possible trade friction. In the year to M
