The Japanese pivot: 

The Japanese pivot: 

Context

• Japanese Prime Minister Shinzo Abe has become staunch supporter of Donald Trump deepening their ties with Trump’s first official trip to Asia from November 5 – 17 to Japan.

Significance of the visit

• It will underscore the close alliance between Japan and the U.S. at a time of shifting geopolitical sands in Japan’s neighbourhood.
• This visit provides an opportunity for a coherent exposition of what the U.S. intends for the region.

Confusing signals

• In the past, Trump has sent out inconsistent signals, which have been confusing for Japanese.
• On the campaign trail Trump fingered the U.S. trade deficit with Japan, which stands at more than $68 billion as an example of American industrial weakness.
• Trump suggested that Tokyo pick up a greater proportion of the bill for the U.S. military facilities it hosts. And he also pulled the U.S. out of the Trans-Pacific Partnership (TPP) trade deal, causing a loss of face to Mr. Abe who had expended considerable political capital in committing Japan to it.
• Mr. Trump has reiterated strong support for the U.S.-Japan alliance and his harsh rhetoric on Pyongyang’s weapons testing is in consonance with Mr. Abe’s own aggressive position.

Dealing with North Korea

• The ironic challenge that has emerged for Mr. Abe is to rein in Mr. Trump’s enthusiasm for standing up to North Korea.
• Trump has engaged in a rhetorical duel with North Korea’s leader, calling him “Rocket Man” in a speech to the United Nations General Assembly and warning that the U.S. was ready to “totally destroy” the country.

Multiple partnership

• Japan is acutely aware of its limitations when acting alone, and is actively seeking multiple partnerships.
• Tokyo is not only trying to revive the TPP, even without U.S. participation, but has also recently suggested a quadrilateral top-level dialogue between Japan, the U.S., India and Australia to promote open trade and security cooperation.

What makes India- Japan Bi-lateral ties strong?

Economic Relations:

Trade

• In the Financial Year 2015-16, India-Japan trade reached US$ 14.51 billion, showing a decrease of 6.47% from 2014-15
• India’s export to Japan for 2015-16 was US$ 4.66 billion
• India’s Import from Japan for 2015-16 was US$ 9.85 billion
• India’s primary exports to Japan have been petroleum products, chemicals, elements, compounds, non-metallic mineral ware, fish & fish preparations, metalliferous ores & scrap, clothing & accessories, iron & steel products, textile yarn, fabrics etc and
• India’s primary imports from Japan are machinery, transport equipment, iron and steel, electronic goods, organic chemicals, machine tools, etc
• India-Japan Comprehensive Trade agreement was signed in 2011
• The agreement covered goods and services, free movement of visitors and workers, investments, intellectual property rights, and custom procedures. It also sought to abolish tariffs on over 94% of goods India and Japan were trading in, over a period of 10 years.

Investment

• Japan is the fourth largest foreign investor in India
• The presence of Japanese companies in India has also been increasing steadily
• During Indian Prime Minister’s visit to Japan in 2015, leaders of both the countries had agreed to the goal of doubling Japan’s direct investment as well as number of Japanese companies working in India by 2019.
• India has set up a ‘Japan Plus’ office at the ministry of commerce and industry to serve one-stop window to resolve problems faced by Japanese companies in India.
• India had announced “visa on arrival” scheme for all Japanese travellers, including for business purposes, effective from March 1, 2016

Infrastructure

• Delhi Metro Project has been efficiently executed with Japanese assistance.
• In June 2017, Japan’s Kawasaki Heavy Industries had entered into an agreement with Bharat Heavy Electricals for technical collaboration on the manufacture of steel metro coaches.
• JICA has been working with state governments on urbanization and smart city projects
• JICA has taken up a ‘Comprehensive Traffic and Transportation Study’ for Andhra Pradesh Capital Region.
• It has also approved a loan of Rs. 4,200 crore for Amravati Metro Project

India- Japan Civil Nuclear Deal

• The agreement came into effect from July 2017.
• The agreement has allowed US and French nuclear firms who have alliances with Japanese companies to supply nuclear reactors, fuel and technology to India.

Defence Cooperation

• Defence has emerged as an area of partnership between India and Japan
• In the 2017 India-Japan annual defence ministerial dialogue in Tokyo, India and Japan exchanged views and ideas with the aim to further strengthen defence and security cooperation under the framework of the ‘Japan-India Special Strategic and Global Partnership’
• Japan and India have agreed to collaborate closely in defence production, including on dual-use technologies
• They have also agreed to commence technical discussions for research collaboration in the areas of Unmanned Ground Vehicles and Robotics.
• The recent Malabar Naval Exercise among US, India and Japanese Maritime Self Defence Forces has also strengthened the military ties.

Way ahead

• The introduction of bullet trains is expected to boost India- Japan bilateral ties.
• The Mumbai –Ahmadabad Bullet train deal has geostrategic significance for both India and Japan as both the countries share common concerns about China.
• Recently, defence has also emerged as a major area of cooperation.