Think tanks influencing U.S. policy toward Japan

In the previous installments of this series, we examined the proposition "Why do corporate initiatives require PA (Public Affairs) activities?" specifically addressing the existence of a perception gap between policymakers and corporations, and explaining rule-making. We identified three key points essential for successful PA activities, and last time explained the new model, the "Innovation PA Model."

This marks the final installment of our five-part series. As exemplified by the U.S.-China trade friction and U.S.-Japan trade negotiations, Japanese companies are increasingly facing impacts from sudden U.S. policy shifts. Dentsu Inc. Public Relations has established a collaborative relationship with the U.S. think tank NBR (National Bureau of Asian Research), conducting research and discussions on U.S. administration economic policies toward Japan.

Xu Guangying from Dentsu Inc. Public Relations' PA Strategy Department, who participated in policy roundtable discussions with think tanks in Washington, D.C., will explain the role of think tanks—one of the key actors influencing U.S. policy decisions.

Think Tanks: Key Actors in U.S. Policy Decision-Making

While definitions vary, the University of Pennsylvania defines think tanks as "institutions that provide policy-oriented research and advice on domestic and international issues to help policymakers and the public make better decisions on public policy, operating as permanent organizations."

Think tanks exist worldwide, with the United States alone said to have over 1,000 think tanks of various sizes. They conduct research across diverse fields such as economics, trade, security, and immigration.

Think tanks play a crucial role in the U.S. policy-making process. Because they conduct research and make policy recommendations aimed at shaping public policy and solving societal challenges, they are sometimes referred to as the "fifth branch of government," alongside the legislative, executive, judicial, and media branches. A major difference from Japanese think tanks is that many U.S. think tanks are non-profit and independent, and they frequently involve former cabinet ministers and senior government officials.

U.S. government officials and politicians leverage these think tanks, with their overwhelming research, analytical, and critical thinking capabilities, to understand global trends and translate them into policy actions favorable to their country. The U.S. operates under a two-party system, and with each administration change, many researchers and administrators move between think tanks and government. This dynamic policy-making driven by talent mobility is a system Japan should emulate.

Collaboration with NBR, a Think Tank Specializing in Asia Research and Policy Recommendations

Dentsu Inc. Public Relations collaborates with the U.S. think tank NBR to analyze U.S. economic policy toward Japan. NBR is a prominent U.S. think tank that specializes in research across Asia, spanning the Indo-Pacific region. It has actively advised the Trump administration and gained significant attention recently. NBR is a non-profit, non-partisan think tank with offices in Washington, D.C., and Seattle. Its areas of expertise include security, economics, trade, energy, technology, and medicine.

Specifically, our company provides consulting services focused on economic and trade relations. We explore U.S. policy toward Japan from an American perspective and identify the true intentions behind U.S. positions, helping Japanese companies determine the most effective next steps.

Congress and its members are key players in trade issues

In U.S. policy-making, while the President is central, Congress also plays a vital role. The U.S. federal government consists of the legislative, executive, and judicial branches. Within this legislative branch, thousands of bills are submitted to Congress annually. Only a small fraction of these bills, after being drafted, passing through committees and Congress, and finally receiving the President's signature, become law.

The USMCA (United States-Mexico-Canada Agreement) has not yet been ratified by Congress and is therefore not yet in effect. At the economic policy roundtable held in May by Dentsu Inc. Public Relations and the National Bureau of Research (NBR), it was pointed out that the key industries for U.S. lawmakers are agriculture, automobiles, aircraft, and pharmaceuticals. Among these, agriculture and automobiles are the most critical issues for Japan. It has been decided that these two sectors will be the first to be examined in the bilateral trade talks led by Minister of Economic Revitalization Toshimitsu Motegi and U.S. Trade Representative Robert Lighthizer.

Japanese companies and related organizations must utilize think tanks and other resources to gather and analyze information on the U.S. Congress and its members. This will enable them to formulate future strategies and take countermeasures before the Japan-U.S. Trade Agreement takes effect. In some cases, lobbying influential local lawmakers and conducting public affairs activities focused on coexistence with regional communities will also be crucial.

Future Outlook

With the 2020 campaign underway for President Trump's re-election bid, Democratic presidential candidates have already begun to emerge. Consequently, U.S. trade negotiations (with China, Canada, Mexico, Japan, etc.) are expected to conclude within 2019.

Dentsu Inc. Public Relations intends to continue supporting the early identification of U.S. policy toward Japan through the NBR Economic Policy Roundtable, and to assist in building mechanisms enabling Japanese companies and organizations to take swift action. As the first step in this effort, we have created the "Washington Policy Analysis Report." It provides an overview of U.S.-Japan economic relations, the Trump administration's energy policy, trade issues, and more.

We will continue to update this report regularly, so please take a look.

Furthermore, when facing policy changes or regulatory tightening/relaxation in the U.S., Japanese companies often lag behind their American counterparts in their responses. Leveraging our partnership with a public affairs specialist firm, we are strengthening our capabilities to actively support Japanese companies in formulating U.S. response strategies and implementing effective countermeasures.

To view the "Washington Policy Analysis Report," please click here!