ABSTRACT
US complaints center on the bilateral trade deficit with Japan, which has hovered around $50 billion annually since 1985 and which approached $70 billion in 1999. The case for attributing the bilateral trade imbalance to unfair Japanese practices receives support from the observation that Japan has maintained a trade surplus with the rest of the world—not just with the United States. The signs of trade-induced strain between the United States and Japan are evident in both formal diplomatic relations and in public opinion, with so-called Japan-bashing often heard on street corners and in Congress. The case for attributing the bilateral trade imbalance to unfair Japanese practices receives support from the observation that Japan has maintained a trade surplus with the rest of the world—not just with the United States. Despite liberal insistence that trade produces peace, the historical record shows that trade-related conflict is a common theme in international politics.
