JAPAN will tell the United States in their economic talks that any border tax the U.S. Government imposes on imports should not break World Trade Organization (WTO) rules, an adviser to Prime Minister Shinzo Abe said yesterday.

    Yasutoshi Nishimura also said Japan would not rule out a bilateral trade agreement with the United States, but talks may not start soon because Washington is putting a higher priority on renegotiating the North America Free Trade Agreement.

    “We don’t want any border tax to violate WTO rules by becoming a tax system intended to promote exports,” Nishimura said.

    “Our position is WTO rules and multilateralism are important and we want to lobby for that.”

    Abe and U.S. President Donald Trump agreed last month to establish a new framework for economic dialogue to discuss trade and infrastructure investment. The two countries have not set a schedule for their talks.

    Trump has spoken positively about a 20 percent border adjustment tax being pushed by Republicans in Congress as a way to boost exports, but it is still uncertain if he will fully endorse the proposal.

    Trump had previously sent mixed signals on the border adjustment tax.

    Some Japanese policymakers grew concerned about U.S. protectionism and a return to 1980s trade friction after Trump criticized Japanese auto imports shortly after taking office in January. (SD-Agencies)