Japan-U.S. Relations: Issues for Congress as Reported by CRS
The Congressional Research Service has issued a report (RL33436) entitled: "Japan-U.S. Relations: Issues for Congress," which states that outside of North America, Japan is the U.S.' second-largest export market and second-largest source of imports. In addition, Japanese firms are the U.S.' second-largest source of foreign direct investment, and Japanese investors are the second-largest foreign holders of U.S. treasuries, helping to finance the U.S. deficit and reduce upward pressure on U.S. interest rates.
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Bilateral trade friction has decreased in recent years, partly because U.S. concern about the trade deficit with Japan has been replaced by concern about a much larger deficit with China. One exception was U.S. criticism over Japan's decision in 2003 to ban imports of U.S. beef, which have since resumed, but on a limited basis. The report adds that Japan's 2009 elections which resulted in the Liberal Democratic Party being ousted from office for the first time since 1955 marked the end of an era, and U.S. -Japan relations have been adjusting to the Democratic Party of Japan since that election.