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NOTHING IS PERMANENT EXCEPT CHANGE

Japan’s trade deal with the US is a $50 billion question

  • China and the European Union cannot take all the exports Japan will have to direct away from the United States.
  • Tokyo's record-high spending on welfare, military and infrastructure won’t do much to soften the serious blow of falling exports.
  • Japan’s slow and gradual trade adjustment is unlikely if the U.S. wants a meaningful rebalancing of trade accounts.

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