Japan–U.S. trade relations are strained at present. They are apt to get worse. The specter of U.S. protectionism is lurking just beneath the surface, and apparently Japan and the United States are putting insufficient effort into preventing its eventual rise.

What has caused this problem? How significant is it, in fact, and what are its possible implications? Is it primarily a U.S. problem, a Japanese problem, something in between, or something else entirely? These are the questions that must be carefully addressed if the bilateral trade imbalance and the resulting trade friction are to be understood and if meaningful solutions are to be found. Insights gleaned from considering these questions should also be useful for improving future bilateral trade relations between Japan and the United States.

In this volume, a distinguished group of economists do battle with these issues. As the problems addressed are often complex and multidimensional, opinions are divided and predictions differ. Of necessity, then, this volume attempts to persuade the reader rather than provide definitive proof on one side or the other of a specific issue. To some extent, this implies that the reader must draw his or her own conclusions from the opinions and available evidence presented here. But such is the task of most public policy decision making. In our view, the information presented in this volume can serve as an important input into the decision-making process.