Economic Security Dominates Japan-US JUCIP Talks in June

On June 27, 2024, Japanese Minister of Economy, Trade and Industry (METI) Ken Saito met with United States Secretary of Commerce Gina Raimondo in Washington. They were there for the latest of round of the Japan-US Commercial and Industrial Partnership (JUCIP). However, they also took time out to meet with other economic security partners in the region.

One day earlier, Minister Saito and Secretary Raimondo also met South Korean Minister of Trade, Industry, and Energy Ahn Duk-geun. Ahn joined the others in Washington for the first meeting of commerce and industry ministers. The trilateral was established in August 2023 during the US-Japan-Korea Trilateral Summit at Camp David.

Bilateral Coordination Efforts

In the bilateral JUCIP meeting, Japanese and American representatives discussed concerns regarding supply sources for strategic goods. They also touched on the challenges related to various economic dependencies and the impacts of non-market practices and policies on strategic goods, with a focus on underdeveloped nations. This was the first JUCIP meeting following Prime Minister Kishida's visit to the United States. It was likely influenced by various policy discussions during that visit.

Representatives at the most recent JUCIP meeting agreed to operationalize efforts in strategic sectors and pursue them with like-minded partners. This was based on the Principles on Resilient and Reliable Supply Chains also referenced in the 2023 G7 Leaders' Statement on Economic Resilience and Reliable Supply Chains, a priority of Japan's G7 presidency.

Critical Minerals in Japan-US Relations

Saito and Raimondo also discussed other areas of cooperation between the Department of Commerce and METI. This covered export controls and increased cooperation in strengthening the supply chain of critical minerals. Those include gallium, germanium, and graphite.

June's marked the fourth meeting of JUCIP. It was also the first held since April 2024. That is when Saito and Raimondo met in Washington to discuss similar issues. The April meeting during Prime Minister Fumio Kishida's state included discussions on leading-edge and legacy semiconductors during Prime Minister Fumio Kishida's state visit to Washington.

The contents of this meeting were partially driven by the outcomes of the Japan-US Economic Policy Consultative Committee (EPCC) meeting that took place in November 2023 and included Japanese Minister for Foreign Affairs Yoko Kamikawa, METI minister Yasutoshi Nishimura, US Secretary of State Antony Blinken, and US Secretary of Commerce Raimondo.

*METI Minister Ken Saito (far right) attends the Japan-US-ROK Commerce and Industry Ministers' Meeting in Washington on June 27. (Pool photo)*

Trilateral Cooperation with South Korea

One day before the bilateral JUCIP meeting, Minister Saito and Secretary Raimondo held a trilateral meeting with South Korean Minister of Trade, Industry, and Energy Ahn Duk-geun. This was the first Japan-South Korea-United States commerce and industry ministerial meeting. It was established as a part of the August 2023 Trilateral Summit at Camp David. Under the framework, ministers are expected to meet annually to discuss critical and emerging technology and supply chain issues.

According to the official statement, the ministers discussed how to promote the development of critical and emerging technologies. Representatives of the three companies also shared ideas on strengthening economic security and economic resiliency. They further aimed to prioritize cooperation supply chain resilience in the semiconductor and battery sectors. These correspond with the issues promoted under the Principles on the G7's Resilient and Reliable Supply Chains.

Saito, Raimondo, and Ahn announced their intentions to deepen export controls on advanced technologies and enhance private-sector partnerships for collaborative research related to industrial technologies. As a next step, they agreed to advance efforts to develop international standards on the "safe" use of artificial intelligence. Along with it, they sought to expand collaboration on emerging technologies and critical minerals. Finally, they agreed to support the Biden administration's thus-unsuccessful Indo-Pacific Economic Framework for Prosperity (IPEF).

*US Secretary of Commerce Gina Raimondo speaks in San Francisco in November 2023. (©Reuters/Kyodo)*

Areas of Cooperation

On semiconductors, the three ministers noted a shared interest in building semiconductor supply chains. However, they did not identify specific opportunities for collaboration.

Artificial intelligence, cybersecurity, and technology standards were also part of the summit. Developments from the American and Japanese AI Safety Institutes and implementation of the US National Institute of Standards and Technology (NIST) Cybersecurity Framework 2.0 were key topics of discussion.

The three ministers also cited the need to expand the availability of critical minerals. They seek to strengthen critical mineral supply chain resilience through expanded processing and refining capabilities. In addition, they expressed concerns about non-market measures that have been used to shape the global rare earth element technology market for minerals such as gallium, germanium, and graphite.

They also agreed on expanded cooperation on export controls through the US-Japan-South Korea Disruptive Technology Network. That group was last convened on April 25, 2024. It led to the signing of two memoranda of intent to enhance cooperation on stopping illegal technology transfer and aligning Washington, Tokyo, and Seoul on export control enforcement.

Foreign Minister Yoko Kamikawa signs the Japan-Philippines Reciprocal Access Agreement on July 8 in Manila. Behind her stand Defense Minister Minoru Kihara and Philippines President Ferdinand Marcos Jr. (©Kyodo)

Cooperation With The Philippines

While unlikely in the short-term, the Philippines have been pushing for another trilateral critical minerals agreement. That would be with the United States and Japan, following the signing of a new reciprocal access agreement with Japan on July 8. The RAA grants the ability for Japanese and Philippine military forces to be deployed on each other's soil.

Earlier this year, the US, Japan, and the Philippines signed a trilateral agreement to secure the supply chain of nickel ore. However, efforts from Manila to expand the agreement to broader critical minerals have been unsuccessful. The Philippines have continued their calls to join the US-Japan Critical Minerals Agreement, which was first signed in March 2023.

What Comes Next

Based on previous trends, it is likely there will be another meeting of the US-Japan EPCC 2+2 Dialogue in the summer of 2024. This working group was first launched in July 2022. Its meetings helped set the framework for subsequent JUCIP meetings.

Major policy developments outside of these bilateral working-level meetings are unlikely as the US prepares for a presidential election. This includes the IPEF, which has failed to develop in the way the Biden administration had hoped.

The combination of a strong performance from Donald Trump and a historically poor performance from Biden in June's presidential debate has left lingering questions about President Biden's fitness for office. Consequently, world leaders have found the need to assess Mr Trump's reelection prospects in November. Meanwhile, senior members of the Biden administration likely will focus on domestic politics as the summer presidential campaign kicks off.

Furthermore, domestic politics in Japan will likely dominate the summer, as well. The LDP will convene for a party leadership election in September. Its results may drastically shape the political environment in Japan.

The domestic political situation in both Japan and the United States means there will likely be few policy developments in the coming months.

Author: Erik M Jacobs