U.S. Secretary of Commerce Penny Pritzker today delivered remarks on the strength of the U.S.-Japan economic partnership, the shared goal of deepening our countries’ bilateral investment ties, and the strategic importance of transforming our trade relationship through the Trans-Pacific Partnership.

 

Appearing alongside Japanese Prime Minister Shinzo Abe and U.S. Ambassador to Japan Caroline Kennedy, Secretary Pritzker discussed how the United States is encouraging greater investment from Japan; what the Abe government can do to encourage more American investment in Japan; and where we can work together to open the door to increased two-way investment across-the-board.

 

The Secretary also highlighted the central role of the Department of Commerce in advancing and advocating for the Trans-Pacific Partnership, and reiterated the broad benefits to both the United States and Japan of a tough, fair, high-standard agreement.

 

 

Good afternoon. I want to thank all of the American and Japanese business leaders here for your shared commitment to a lasting commercial partnership between the United States and Japan. And thank you to my friend, Ambassador Kennedy, for your leadership and for your work to deepen the economic and diplomatic ties between our two nations.

 

On a personal note, Japan holds a special place in my heart. My father was stationed there in the 1950s while he was in the Navy. My brother lived there in the 1980s. And my son wrote his senior thesis at Yale about the Iwakura Mission, which launched an era of modernization for Japan.

 

Now, as Secretary of Commerce, it is a true honor to carry on this family legacy of affection and partnership with Japan and its people.

 

Fifty-five years ago, Prime Minister Kishi traveled to the White House to sign an accord that would form the basis of the modern U.S.-Japan alliance: the Treaty of Mutual Cooperation and Security. At that time, President Eisenhower made a statement that defined not only the purpose of the treaty, but the promise of our relationship: to “establish an indestructible partnership…based on complete equality and mutual understanding.”

 

In this same tradition, I was honored to join President Obama earlier this week to welcome Prime Minister Kishi’s grandson, Prime Minister Abe, to the White House – where, together, our leaders reaffirmed the enduring strength of the bonds between the United States and Japan. Prime Minister Abe: thank you for your visit and for reiterating our countries’ joint commitment to bolster our “indestructible partnership.”

 

The U.S.-Japan relationship serves as an anchor for the Asia Pacific region, and our economic ties are core to our dynamic partnership – a partnership that serves both our peoples well.

 

Today, Japan is America’s fourth largest trading partner and was our top source of foreign investment in 2013, with Japanese firms directing nearly $45 billion into our market. And, with American firms accounting for $123 billion, the United States is Japan’s largest source of accumulated direct investment.

 

Indeed, our economic and commercial bonds are strong and thriving. But we live in a new world of rising powers and emerging markets, where a long history of partnership is not enough. We must reinforce an economic architecture that will shape and secure our future. There are two essential cornerstones of that architecture: increasing two-way investment; and deepening trade through the Trans-Pacific Partnership.

 

We know that Japanese investments in the United States are good for Japanese firms and good for American workers. Today, Japanese FDI supports more than 718,000 good-paying U.S. jobs. And as more Japanese companies invest here, those numbers will only grow. To give one recent example: in February, Mitsubishi Electric announced plans to expand its manufacturing facility in Mason, Ohio – which will create 100 new American jobs.

 

Earlier today, you heard the CEOs of Mitsubishi Corporation, Honda, and Kikkoman express their interest in expanding their companies’ presence in the United States. They are not alone. We welcome and encourage the growth of Japanese investments here. To make it easier for Japanese and other foreign companies to navigate the American market, the President launched SelectUSA – our first-ever, whole-of-government initiative to attract foreign investments to the United States.

 

Led by the Commerce Department, SelectUSA is the first point of contact in our government when a foreign company is looking to invest in the United States. In fact, our lead representative for Japan, Keida Ackerman, is here today to answer your questions. A month ago, we held our second SelectUSA Summit, where more than 2,600 business leaders from over 70 international markets met with U.S. economic development officials to identify new investment opportunities throughout our country. Japan sent the second-largest delegation, with 98 participants representing more than 60 companies and 7 trade associations.

 

Building on the success of our summit, SelectUSA and its Japanese counterpart, JETRO, are developing a Memorandum of Intent to promote more direct investment in each other’s markets. Let us commit to completing this agreement by the end of this year. As we focus on bringing more Japanese companies to our shores, American firms would also like greater opportunity to invest in Japan. Expanding the U.S. investment footprint in Japan is a win-win for our countries: Our businesses can bring complementary skills and technologies, new products, and additional capital to your market; and when these businesses invest, it increases demand for our exports, which ultimately supports more jobs here at home.

 

Whether a greenfield investment, a merger, or an acquisition, more American investment will contribute to Prime Minister Abe’s goal of spurring growth and competitiveness across Japan. We want to partner with the Prime Minister to meet his objective of doubling Japan’s inward FDI stock by 2020.While barriers to entry into Japanese markets remain, we are encouraged by recent steps taken by Prime Minister Abe’s government, including reforming corporate governance laws to support the interests of shareholders; and establishing a “code of conduct” for companies listed on the Tokyo Stock Exchange. Building on this progress will create a more open and welcoming climate for both American and foreign investors.

 

Before I conclude, I would like to touch on our work to deepen the U.S.-Japan trade relationship – specifically, the Trans-Pacific Partnership, which will be the most effective mechanism for paving the way to even stronger economic ties. Both the United States and Japan are committed to completing this high-standard agreement. As Prime Minister Abe has said, “The whole world is paying close attention to the Asia-Pacific…as…this region…is achieving the highest rate of economic growth and brimming with the greatest amount of future potential anywhere.” The Prime Minister is absolutely right: the market opportunity presented by TPP is profound. The Asia Pacific’s middle class is set to grow to 3.2 billion over the next 20 years, which is nearly nine times larger than the entire U.S. population.

 

Right now, at the Commerce Department, we are working through our domestic political and legislative process to move President Obama’s trade agenda forward.

 

But our bottom line is this: the Obama Administration is all-in on TPP, and as Secretary of Commerce, I am fully committed to doing what it takes to get this critical trade deal completed and implemented. That is why I have testified before congressional committees on trade promotion legislation; called, briefed, and met with 34 Senators and 86 Members of the House – 120 Members of Congress so far – to make the case for trade and to answer any of their questions on TPP; and traveled to districts from Washington State to Virginia and met with more than 1,000 business leaders to discuss the benefits of new trade agreements.

 

By nature, I am an optimist and a planner. And my Department is working tirelessly to lay the groundwork across the region in an effort to help American businesses capitalize on an eventual TPP. Since I came into office, Commerce has led 11 trade missions to the TPP region, including the one I brought to Tokyo last October.

 

We now have more than 175 foreign commercial service staff in TPP partner countries. They are already working hard to prepare for a wave of new opportunities for our companies across the region. Our team is enhancing our industry-specific expertise, delivered through business counseling, trade events, and reports on best prospects to ensure companies have the data they need to compete. We are updating our research on market opportunities in TPP member counties, in order to be best positioned to deliver on the benefits of an eventual agreement.

 

Put simply, if and when a deal is reached, it will be the responsibility of the Commerce Department to ensure that American businesses understand the benefits of TPP and can capitalize on them.

 

A strong TPP will be a game-changer for the U.S.-Japan trade relationship. The Prime Minister and I recognize that work remains to be done to resolve outstanding issues in the TPP negotiations. But we both aspire to bring these talks to a swift and successful conclusion.

 

By completing TPP, by deepening and expanding our two-way investments, we will form the economic foundation of the next great era of “complete equality and mutual understanding” between our nations. We will usher in and lead the next phase of our “indestructible partnership.” We will strengthen our legacy of economic cooperation, founded on our shared values, mutual interests, and mutual respect. And we will keep the United States and Japan open for more business together.  Thank you.