Japan's Abe, Trump seen agreeing to start bilateral trade talks

Japanese Prime Minister Shinzo Abe and US President Donald Trump are seen agreeing to start bilateral trade negotiations at their planned meeting in Washington set for Feb 10, informed sources have said, Japan's Jiji Press reported.

As Trump puts emphasis on one-on-one trade negotiations, Japan at least needs to accept talks because it hopes to maintain its firm alliance with the United States, according to the sources.

But the upcoming summit, the first between the two leaders since Trump took office on Jan 20, is unlikely to go into detail.

Tokyo hopes to closely watch what moves the United States will make.

On Saturday, Abe and Trump had a telephone conversation. The White House said the two promised to deepen bilateral trade and investment relations.

As Trump recently expressed his frustration with automobile trade between the two countries, Abe told the U.S. president that Japanese companies including automakers have contributed to the U.S. economy by making investments and creating jobs.

If Trump proposes a bilateral trade deal at the planned summit with Abe, the prime minister is expected to call for negotiations based on the principles agreed under the Trans-Pacific Partnership agreement, a Japanese Foreign Ministry official said.

Trump has signed an order to withdraw his country from the TPP. In his phone talks with Abe, there was no direct mention of the multilateral free trade pact.

During the planned trip to Washington, Abe will be accompanied by Deputy Prime Minister Taro Aso, Foreign Minister Fumio Kishida and trade minister Hiroshige Seko.

The three accompanying officials are expected to attend the summit and meet with Vice President Mike Pence and other US officials.

In expected bilateral trade negotiations, Washington may request Japan to take drastic market-opening measures for agricultural produce.

Tokyo also braces for the possibility that the United States will seek the inclusion of a provision to block currency manipulation in a possible bilateral trade pact.

US Congress and the country's auto industry requested a similar clause be included in the TPP pact, but the request was not met.

Japanese Chief Cabinet Secretary Yoshihide Suga has indicated that Tokyo would reject such a request in possible future trade talks. But Tokyo is concerned that Trump's administration may apply pressure by criticizing the Bank of Japan's monetary policy as a step to drive the yen lower, officials said. -- BERNAMA