FAITH-IN-HIM
Well-Known Member
Japan, like the United States, is a democracy with a capitalist economy. The Japanese Prime Minister, much like the U.S. President, has no authority to direct private companies' overseas investments.![]()
Trump’s Big Trade Deal With Japan Is Already Falling Apart
Japanese officials are pushing back on one of Trump’s central claims about the deal.newrepublic.com
According to Trump and his administration, in return for a reduction in tariffs, Japan would invest $550 billion in certain U.S. sectors and give the United States 90 percent of the profits.But Japanese officials say profit sharing under the agreement isn’t so set in stone: A Friday slideshow presentation in Japan’s Cabinet Office, contra the White House, said profit distribution would be “based on the degree of contribution and risk taken by each party,” per The Financial Times.Trump exaggerates to the point it is difficult to believe anything he says.
The bilateral trade agreements stating that Japan will invest $550 billion in the United States, or that the European Union will invest $500 billion in the United States, are not practically enforceable. In democratic nations such as those in Europe and Japan, governments cannot compel private companies to make such investments. These agreements appear to serve primarily as political achievements for President Trump, but they are unlikely to be realized.
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