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00:00THE UNITED STATES THEY ARE LOOKING AT THIS BILATERAL TRADE RELATIONSHIP AND THEY ARE NOT HAPPY ABOUT IT. AND THEY'RE THREATENING, OF COURSE, SOME TRADE RESTRICTIONS, NOT JUST AGAINST A PAN BUT AGAINST SEVERAL COUNTRIES IN ASIA. DO YOU THINK THAT THAT PRIME MINISTER ABE WAS ABLE TO EASE SOME OF THOSE CONCERNS ON HIS TRIP? >> WELL, I THINK, MR. ABE HAS CERTAINLY MADE SURE THAT THE JAPAN IS COMMITTED TO FREE TRADE. AND ALSO, YOU KNOW, JAPAN AND THE UNITED STATES SHARE THE SAME MULTILATERAL TRADING SYSTEM IN THE WTO. SO, THOSE ARE THE THINGS THAT KIND OF BASELINE TO START IN NEGOTIATIONS OR TALKS ABOUT INTERNATIONAL TRADE BETWEEN JAPAN AND THE UNITED STATES. SO, THAT IS QUITE CLEAR THAT, YOU KNOW, THOSE TWO HEADS OF GOVERNMENTS MADE SURE THAT, YOU KNOW, WHERE THEIR STARTING POINT IS. YVONNE: IT WAS JUST INTERESTING, GIVEN THE PROSPECT OF BILATERAL TRADE BETWEEN THE U.S. AND JAPAN, COULD JAPAN, HOW MUCH GOOD JAPAN AND UP LOSING OUT ON A DEAL LIKE THIS? IS ABE GOING TO HAVE TO MAKE SOME MAJOR CONCESSIONS ON SOME OF THESE VECTORS HE HAVE BEEN STUBBORN AND PROTECTIVE ABOUT WHEN IT COMES TO AUTOS AND AGRICULTURE? >> WELL, YOU SEE, THE, WHEN TWO COUNTRIES ENGAGEDD IN THE INTERNATIONAL TRADE TALKS, THE WHOLE PACKAGE AT THE END OF THE DAY, IT SHOULD BE WIN-WIN. AND SO, FAR, JAPAN AND THE UNITED STATES HAVE SUCCESSFULLY NEGOTIATED ITS BILATERAL TRADE ALONG WITH THE TPP NEGOTIATIONS. SO, WHAT WE HAVE REACHED BETWEEN JAPAN AND UNITED STATES IN THE TPP FRAMEWORK, I THINK THAT IS THE BEST SORT OF RESULT SO FAR. SO, I THINK, THE UNITED STATES IS CERTAINLY VERY MUCH ENCOURAGED TO COME BACK TO THE TPP DEAL, EVEN FOR THIS JAPAN- U.S.. BILATERAL DEALS YVONNE: HOW LIKELY IS THAT, AND WHAT A BILATERAL TRADE DEAL BE MORE FAVORABLE THAT IT WOULD BE TPP MINUE ONE WITHOUT THE U.S.? >> WELL, OF COURSE, LOSING THE UNITED STATES IS A MAJOR SETBACK FOR TPP. ALL 12 NATIONS, INCLUDING THE UNITED STATES. BUT IN IN ORDER NOT TO LOSE THE MOMENTUM AND ALSO WE HAVE TO, WE HAVE TO PUSH BACK THE PROTECTIONISM. I THINK THE TPP 11 COUNTRIES, SO THAT MEANS UNITED STATES LEFT BEHIND, PERHAPS, BUT AT LEAST THE TPP 11 SHOULD START ITS TPP DEAL WITHOUT CHANGING, YOU KNOW, THE RULES THAT THEY HAD AGREED UPON. WHEREAS THE MARKET RESULT INTACT. BETTY: FINALLY, I JUST WANT TO GET YOUR LAST TAKE ON THE PRESIDENT. HE HAS VOWED TO CREATE A " LEVEL PLAYING FIELD" WHEN IT COMES TO THE CURRENCIES OF JAPAN AND THE U.S. AND CHINA. HOW DO YOU INTERPRET A STATEMENT LIKE THIS? COULD COMMENTS LIKE THAT LEAD TO A CORSET -- CURRENCYA WAR? >> WELL, JAPAN HAS NEVER BEEN ENGAGED IN THE CURRENCY MANIPULATION, PARTICULARLY AFTER 2010, 2011. SO, IT IS NOT A QUESTION FOR JAPAN, ANYWAY. AND THERE WOULD BE BILATERAL TALKS BETWEEN THE TWO SUBHEADS OF THE GOVERNMENT, NAMELY, MR AZO FOR JAPAN AND MR. PENCE FOR THE UNITED STATES. THIS FRAMEWORK HAS BEEN AGREED UPON.

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Can Japan Coax the U.S. Back to a TPP Deal?

Keio University Professor Yorizumi Watanabe U.S and Japanese relations, global trade concerns and his outlook for the Trans-Pacific Trade agreement. He speaks on "Bloomberg Daybreak: Asia." (Source: Bloomberg)

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