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Plaza Accord 'drama' didn't lead to lasting reform: ex-Japan financial diplomat
TOKYO -- On Sept. 22, 1985, the Group of Five nations of Japan, the U.S., the U.K., France and West Germany announced what came to be known as the Plaza Accord to reduce the value of the dollar. But Toyoo Gyoten, who was involved in the negotiations as director-general of the International Finance Bureau at Japan's Ministry of Finance, told Nikkei that he does not believe the agreement went far enough to change the international order for currency.
Gyoten later served as vice minister of finance for international affairs.
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Asahi Shimbun
2 days ago
- Asahi Shimbun
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U.S. President Donald Trump's high tariffs levied on imports are tossing the world around and leading to irreversible global changes, according to Takeshi Nakano, an economics commentator. He said the ramifications of Trump's tariffs go much further than the immediate consequences of lost sales in the U.S. market. In a recent interview with The Asahi Shimbun, Nakano, known for his books including 'TPP Bokokuron' (The Trans-Pacific Partnership free trade arrangement would ruin the nation), said Trump is seeking a unilateral realignment of the international economic system, a trend that can no longer be stopped. Excerpts of the interview follow: *** Question: How do you see the Trump administration's tariff policy? Nakano: The important thing about the latest tariffs is that they are being imposed on (almost) all countries of the world. In particular, exorbitantly high tariff rates were set for China. So, it's no longer about bilateral trade friction between Japan and the United States. Products from around the world, which are losing the U.S. market, will flow into other nations. That will strengthen deflationary pressure and could trigger scrambles for markets, trade wars and tariff wars among countries other than the United States. Q: What do you think lies in the backdrop of the Trump tariffs? A: The United States has continued to import vast amounts of products, one-sidedly, from the rest of the world and has suffered, as a consequence, from trade deficits and current account deficits. Japan, which has relied on foreign demand, is one of the countries that have taken advantage of an international economic system that is dependent on the United States. All this has engendered the problem of a global imbalance. And the United States is saying that it can no longer withstand that. Japan should take an approach that is totally different from the traditional framework of bilateral talks. 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Nikkei Asia
28-05-2025
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Plaza Accord 'drama' didn't lead to lasting reform: ex-Japan financial diplomat
TOKYO -- On Sept. 22, 1985, the Group of Five nations of Japan, the U.S., the U.K., France and West Germany announced what came to be known as the Plaza Accord to reduce the value of the dollar. But Toyoo Gyoten, who was involved in the negotiations as director-general of the International Finance Bureau at Japan's Ministry of Finance, told Nikkei that he does not believe the agreement went far enough to change the international order for currency. Gyoten later served as vice minister of finance for international affairs.
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Japan Data Japan's primary income, earned from overseas investment, was the main factor for its record high current account surplus in fiscal 2024, spurred on by the weak yen. Preliminary balance of payments statistics for fiscal 2024 released on May 12 by Japan's Ministry of Finance show that Japan posted a surplus of ¥30.4 trillion, the largest of its kind since comparable data first became available in fiscal 1985. This current account balance reflects not only Japan's overseas trade in goods and services but also its revenue from foreign investments. For its balance of trade, calculated as the difference between imports and exports, Japan posted a deficit of ¥4 trillion, marking the fourth consecutive annual deficit. While exports of automobiles and equipment for manufacturing semiconductors rose, there were also increases in imports of personal computers and smartphones. Meanwhile, Japan's primary income balance, which reflects overseas revenue from interest and dividend payments, rose by 11.7% over the previous year, for a surplus of ¥41.7 trillion. This result, boosted in part by the weaker yen, marks the fourth consecutive record annual surplus. The balance on services was a deficit of ¥2.6 trillion in fiscal 2024, while the digital sector, which includes internet advertising, had a record deficit of ¥7.0 trillion. In contrast, the travel industry posted a record trade surplus of ¥6.7 trillion, driven by a significant increase in foreign tourists to Japan. (Translated from Japanese. Banner photo © Pixta.)
