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ICITO discontinues examination of Swiss Trade problem.
Contrary to accepted wisdom, America does not have a bilateral trade problem with China — it has a multilateral trade problem with a broad cross-section of countries.
The figures released today show how much of the current trade problem is rooted in Asia.
The country has "a competitiveness problem, not a trade problem," says Ricardo Mendes of Prospectiva, a consultancy in São Paulo.
But he also stressed that Japan must still open its markets more to American products to solve the trade problem.
But the trade problem won't really be addressed until China's consumers start saving less and spending more — including on American products.
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In other words, Japan's perennial trade "problem --that it sells much more than it buys--has not disaproblem --that
"Anger can lead to trade problems, and ultimately to military confrontation," he told me.
He noted that the United States once described its trade problems in terms of Japan.
But the latest numbers also pointed to more enduring trade problems.
Still, no one expects services to bail America out of its trade problems.
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