Although trade in goods tends to attract more attention, about 40% of Japanese companies provide cross-border data (White Paper: Information and Communication in Japan, Ministry of Home Affairs and Communications). It has also been reported that over the ten years beginning in 2005, the volume of cross-border data flows has increased by 45 times and that the volume will continue to increase exponentially. In the future, digital trade agreements will become much more important than merchandise trade agreements. Then I will discuss Japan and the United States. The digital trade agreement. There are large cross-border flows of data and digitized products. With advances in data analytics technology and the development of artificial intelligence (AI) and robots, international competition for data accumulation has intensified and the digitization of production processes and the globalization of production and research and development have advanced. It is increasingly important to develop rules for digital commerce. 2. As two of the world`s most digitally advanced countries, the United States and Japan have a deep common interest in creating enforceable rules that help digital providers in all sectors of their economies innovate and create wealth and set standards for other economies that can emulate it. After the United States The trade agreement will enter into force and the two countries will determine the scope of the new trade negotiations within four months.

The launch time and pace of the new negotiations will be greatly influenced by how the U.S.-China trade disputes and the U.S.-EU (EU) trade negotiations will proceed in the future. Within four months of its implementation, President Trump and Prime Minister Abe will relocate their efforts for a broader trade deal. This broader agreement aims to cover both tariff and non-tariff barriers, including tariffs and restrictions on trade in services and investment. Meanwhile, U.S. tariffs on Japanese air conditioning parts and fuel cells were abolished as soon as the trade pact came into force. In December 2018, the U.S. Trade Representative`s office announced 22 negotiating objectives for trade negotiations with Japan. Since the objectives cover most of the 21 trading areas of the TPP, the United States may require liberalization of the services sector and the introduction of an exchange rate regime prohibiting currency devaluation.