ABSTRACT

The trade problems between Japan and the rest of the world have attracted considerable attention from scholars seeking to analyse the source of the frictions and to suggest solutions. The chronic persistence of Japanese trade surplus has been a major irritant in US-Japan relations because it was perceived, by the United States, to arise largely from imperfections in the Japanese economic system and the legacy of past policies that denied foreign manufacturers ‘open’ access to the Japanese market. Whether real or otherwise, this contributed to an increased demand for reciprocal protectionism. Directly, military power may have limited utility in dealing with other regime members and no one would go so far as to suggest that the US might use its military advantage to press for trade concessions from the other members. If American decision makers have, indeed, been constrained by the regime, then it becomes important to show that they would otherwise prefer to take the protectionist route.