Japan Is Rebounding, Ambassador
Says Japan Ambassador: Economy Recovering
LEXINGTON, Ky. -- Mixing humor with a serious
economic message, Japan's ambassador to the United States said
yesterday that Kentucky's fifth-largest trade partner is back
in fighting shape. "The Japanese economy is now back on
track, after struggling for 15 years," Ryozo Kato said.
"Thanks to domestically driven demand, Japan's economy
has rebounded and grown." Kato, Tokyo's envoy to Washington
since 2001, addressed about 170 members of the Japan America
Society of Kentucky and the Kentucky World Trade Center at Keeneland
Race Course, focusing on the economic and national security
relationships between the two countries. The booming Japanese
economy of the 1980s, which at times fueled tensions with the
United States, cooled considerably in the '90s through a series
of missteps in the corporate and banking sectors.
Reflecting that weakness, Kentucky exports to Japan have been
flat in recent years while shipments to China, Mexico and Brazil
have soared. Last year, Kentucky's exports to Japan included
$224 million in chemical products, $131 million in leather goods,
$51 million in computer products and $24 million in race horses,
according to the U.S. Department of Commerce. "The recovery
has been the result of … structural reforms following the burst
of the 'bubble' economy," Kato said. "Although the
Japanese economy is still in the mild recessionary stage … we
expect the resiliency of our economic recovery to continue."
Of course, the relationship between Japan and Kentucky goes
well beyond raw economic numbers. Japan is the No. 1 foreign
investor in Kentucky, and Toyota's massive auto assembly plant
in Georgetown and the spin-off businesses the automaker lured
to such cities as Bardstown and Campbellsville have generated
thousands of jobs and a warm relationship. "In the state
of Kentucky alone, there are over 1,250 Japanese companies in
operation," Kato said. "These companies employ over
37,000 full-time employees, and their mere presence is the engine
that drives the economy for thousands of other jobs." The
intertwining of the two cultures, Kato noted, has made it as
easy to get sushi in Lexington as it is to get a bucket of Kentucky
Fried Chicken at Mount Fuji. "We can watch TV shows like
'ER' and 'West Wing' in Osaka, while kids in Frankfort collect
Pokemon cards," he said. Many Japanese baseball stars swing
Louisville Slugger bats. Noting that Gov. Ernie Fletcher earlier
had appointed him a Kentucky Colonel, Kato quipped that "my
responsibilities to Kentucky seem to be very large and heavy
now."
He also said that the United States is his country's top investor
and that the two countries account for 40 percent of the world's
economic activity. "Japan and the United States are cooperating
closely in the war against terror," Kato said. "However,
security measures should not hamper the flow of well-intentioned
tourists and businessmen and useful goods between our two countries."
He suggested, for example, that the two nations should synchronize
their airport security procedures for registered, frequent travelers.
At the same time, Japan will work with the United States to
encourage China to "play a more constructive role in the
(East Asian) region and beyond, as a responsible stakeholder,"
Kato said. The nuclear disputes with North Korea and Iran "are
needed priorities … where we need more cooperation from China."
Gregory Isaacs, a certified public accountant at Chilton &
Medley in Louisville, said he liked Kato's message of partnership,
not only on economic matters, but "in promoting democracy
around the world." "I'd love to see the Japanese influence,
if they can be successful in helping us, with the countries
that are giving a lot of problems," such as North Korea
and Iran, said Ben Franklin, an executive at AAF International
in Louisville and mayor of Druid Hills.
