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Report on Foreign Policy and Economic Dynamics in North America

Based on a professional analysis of the interactions and internal dynamics among Japan, the United States, and Canada over the years, the focus is on Indo-Pacific strategic coordination, domestic political changes, and the evolution of economic security policies.

Detail

Published

22/12/2025

Key Chapter Title List

  1. Overview
  2. U.S. Domestic Situation (Politics, Presidential Primaries, Democratic Presidential Candidate Change, Election Results, and Preparations for the Second Trump Administration)
  3. U.S. Economy (Current Economic Conditions, Major Economic Policies)
  4. Japan-U.S. Political Relations
  5. Japan-U.S. Economic Relations
  6. Canadian Domestic Situation
  7. Japan-Canada Relations
  8. Japan's Foreign Policy towards the U.S. and Canada (by Region)
  9. Japan's Cultural and Community Activities in New York (Example: Japan Parade)
  10. Japan-U.S. Disaster Relief and Reconstruction Cooperation (Example: Hawaii Maui Wildfires)
  11. Digital Domain Cooperation (Global Digital Connectivity Partnership, etc.)
  12. Science and Technology Cooperation (Japan-Canada Joint Committee on Science and Technology Cooperation, etc.)

Document Introduction

This report is an in-depth assessment of the diplomatic policy directions, domestic political and economic dynamics in North America (focusing on the United States and Canada) from 2024 to early 2025, and their interactive relationships with Japan. Based on the official Japanese perspective, it systematically outlines how Japan places strengthening cooperation with North American allies and partner countries that share fundamental values and principles at the core of its foreign and security policy amidst an increasingly severe global and regional security environment. The report posits that the Japan-U.S. Alliance is the cornerstone of Japan's diplomacy and security and the foundation for peace and prosperity in the Indo-Pacific region, while collaboration with Canada, a G7 member, is equally indispensable for maintaining a free and open international order based on the rule of law.

The main body of the report is divided into two major sections for in-depth analysis: the United States and Canada. The section on the United States details the complex domestic political contest during the 2024 U.S. election cycle, including the primary process, the change in the Democratic presidential candidate triggered by Biden's debate performance, Trump's eventual victory, and preparations for his second administration. On the economic front, the report analyzes the U.S. macroeconomic performance amidst sustained growth and high inflationary pressures, Federal Reserve policy adjustments, and the consensus and specific measures demonstrated by both parties on economic and technological competition with China, such as tariff increases, investment reviews, and export controls. The section on Japan-U.S. relations elaborates, through intensive high-level exchanges (including Prime Minister Kishida's state visit, Prime Minister Ishiba's meeting with Trump, etc.) and multi-tiered dialogue mechanisms (summit meetings, foreign ministers' meetings, "2+2" meetings, etc.), on the specific progress and consensus between the two sides in strengthening alliance deterrence and response capabilities, advancing the vision of a "Free and Open Indo-Pacific" (FOIP), coordinating responses to regional issues such as North Korea's nuclear program, Ukraine, and the Middle East, and deepening the global partnership across a wide range of areas including space, economic security, digital connectivity, and supply chain resilience.

The section on Canada assesses the governing pressures faced by the Trudeau government due to the breakdown of domestic political agreements, by-election losses, and economic challenges, leading to Trudeau's announcement of his intention to resign in early 2025. Diplomatically, it focuses on analyzing Canada's measures to enhance its presence and activities in the Indo-Pacific region based on its Indo-Pacific Strategy and revised defense policy, as well as its cooperation with Japan in combating illegal ship-to-ship transfers, illegal fishing, Arctic affairs, and within the CPTPP framework. The report also mentions Canada's response to potential changes in U.S.-Canada trade relations following Trump's victory and the latest developments in its China policy. Japan-Canada relations were consolidated through multiple summit and foreign ministers' meetings, with cooperation steadily advancing in areas such as Indo-Pacific security, rule-making, the economy (e.g., electric vehicle value chains, liquefied natural gas), science and technology, and people-to-people exchanges.

Furthermore, the report intersperses case studies reflecting the social foundations of Japan-U.S. relations, such as the cultural diplomacy value of the "Japan Parade" event in New York and the disaster relief and reconstruction cooperation project ("Kibou for Maui") undertaken by Japan and the U.S. based on historical ties following the Hawaii Maui wildfires, highlighting the multi-dimensionality and resilience of the bilateral relationship beyond the governmental level.

This report comprehensively utilizes official statements, policy documents, records of high-level talks, economic data, and information on specific cooperation projects. It provides professional readers with a timely, detailed, and authoritative reference for understanding the current policy priorities of key North American countries, their internal constraints, and the breadth and depth of their strategic collaboration with Japan.