To President Trump!
June 23, 2026 The Truth Behind "Balanced Countervailing Trade" to Expand World Trade
1 French President Emmanuel Macron recently hosted a virtual meeting involving G7 leaders and China to address global trade imbalances. It appears that global leaders are finally beginning to recognize the fundamental distortions in the world economy—namely, China's overproduction, America's overconsumption, and Europe's underin-vestment.
2 Their awareness of the problem is correct. However, mere diplomatic lip service and short-sighted retaliatory tariffs will solve nothing. I only wish President Macron had gone a step further in his speech to explicitly name my proposal, the "Balanced Countervailing Duty," and pitch its concrete, automated mechanism to the world.
3 Therefore, I would like to take this opportunity to clearly explain to the global audi-ence the core mechanism of the "Balanced Countervailing Duty" (BCVD) that I have long advocated.
4 Conventional tariffs are uniformly levied on individual products coming from a spe-cific nation—that is, on gross imports. This is nothing more than primitive protection-ism. It inevitably triggers a cycle of retaliation, ultimately shrinking the total volume of world trade.
5 In stark contrast, my "Balanced Countervailing Duty" does not target individual gross imports. Instead, it is levied strictly on a nation's "net imports"—which means the trade deficit itself: [Total Imports minus Total Exports].
6 The mechanism is remarkably simple and mathematically sound. When a trade def-icit (net import) occurs with a specific trading partner, a countervailing duty is auto-matically applied only to that deficit gap, directly proportional to the scale of the im-balance.
7 What happens as a result? This creates a powerful, cold-hard economic incentive for major powers that have historically enriched themselves through chronic trade surpluses (excessive exports).
8 Surplus nations are left with only two choices: either continue paying high balanced countervailing duties, or aggressively avoid them by "dramatically increasing their purchases (imports) of goods and services from the deficit nation."
9 Naturally, to avoid the tariffs, surplus nations will have no choice but to actively import more from the deficit nation, rather than trying to beat down prices. This is the true essence of what I call "Balanced Countervailing Trade" (BCT).
10 While conventional protectionism seeks balance through "subtraction" by reducing imports and shrinking trade, Balanced Countervailing Trade achieves balance through "addition"—by forcing surplus nations to increase their imports, bringing both sides to a higher, equal level.
11 In other words, we solve the imbalance not by diminishing economic activity, but by expanding it. Through this method, trade distortions are automatically corrected, and as a result, the total volume of world trade, far from shrinking, will healthily and robustly expand.
12 Once this system is operational, it will systematically eliminate the root causes of global economic friction from the market: structural trade deficits, the forcing of chronic surpluses onto others, intentional currency manipulation, and unfair overpro-duction.
13 An automated rebalancing mechanism that functions dispassionately based on clear rules—this is the only ultimate solution to end emotional blame games between nations and halt never-ending trade wars.
14 It is somewhat frustrating to watch global leaders still stumbling blindly between the illusions of old free-trade dogmas and primitive protectionism. It seems the global trend is only now beginning to catch up to where I have been standing all along.
15 President Macron, and leaders of the G7: if you truly wish to expand world trade and build a sustainable international economic order, you are welcome to formally adopt the governance of my "Balanced Countervailing Duty" at any time. The world is waiting for it.
Part 1 References
French President to Host G7 and China Video Conference on Trade Imbalances
https://www.newsweekjapan.jp/articles/-/325119?display=b#:
I will write again tomorrow.
Yasuhiro Nagano (Japanese)
1. Weekday Edition (Logical Contradictions in Immigration Law Violation Cases - Chapters 1-2)
Part 2: The Immigration Control Act Violation Case [Weekday Edition]
Japan’s judicial system and immigration administration involve severe human rights violations that challenge international standards. Through my own experience, I strongly question Japan's status as a constitutional state governed by the rule of law.
Please first read how I was wrongfully implicated in a case of "Aiding and Abetting the Violation of the Immigration Control Act" in 2010.
Read the full text here: To World Media
https://toworldmedia.blogspot.com/
[Chapter 1] Case Overview
Autumn 2008: My company (where I serve as President) executed an employment contract with Chinese students holding student visas, promising to hire them upon their university graduation the following spring.
Late 2008: The Lehman Brothers bankruptcy triggered a global financial crisis, resulting in the abrupt cancellation of our upcoming system development projects.
2009: Due to the severe economic downturn, we were forced to rescind the job offers. Consequently, the graduated students had no choice but to continue working at the restaurants where they had been employed part-time during their studies.
May 2010: These former Chinese students were arrested for "Activities Other Than Those Permitted Under the Status of Residence" (Violation of Article 70 of the Immigration Control Act).
June 2010: I and our Chinese recruitment manager were also arrested. The charge brought against us was "Aiding and Abetting" (under the Penal Code) their unauthorized technical employment.
The Prosecution’s Logic: The prosecution asserted that our prior issuance of the employment contract constituted a "false document," which subsequently aided their unauthorized work.
[Chapter 2] Fatal Flaws in Judicial Interpretation
This indictment and subsequent judgment completely disregard fundamental legal principles, relying on an entirely arbitrary interpretation of the law.
Under Article 22-4, Paragraph 1, Item 4 of the Immigration Control Act at that time, submitting false documents merely granted the Minister of Justice the authority to revoke a residency status as an administrative disposition (leading to deportation). The act of submitting false documents itself was not codified as a criminal offense. Logically, one cannot be convicted of "aiding and abetting" an act that is not a crime in itself.
The court’s reasoning followed a convoluted chain of causality:
A residency status was obtained via a false employment contract.
The individuals resided in Japan based on that status.
Consequently, they engaged in unauthorized part-time work.
Therefore, the issuer of the initial contract aided and abetted the unauthorized work.
This is a far-fetched, flawed causal link that completely violates the principles of modern legal logic.
[My Argument]
Confusion of Administrative Dispositions and Criminal Penalties: The Immigration Control Act explicitly designates the consequences for false documentation as administrative measures (revocation of status and deportation). The legal process concludes there.
Absence of a Principal Offender: The actual employers of the restaurants where the students worked were never prosecuted for "Encouraging Illegal Employment" (Article 73-2 of the Immigration Control Act). Under the principle of equality under the law, it is a legal contradiction to punish us for aiding and abetting when the principal employers themselves were not prosecuted.
This same flawed legal doctrine was later improperly applied to diplomats and embassy staff.
Continued in the Saturday Edition.
Part 3: A New Business Model via Special Economic Zones
I propose the establishment of "Special Economic Zones" designed to accept refugees and migrants as "temporary migrant workers," with their residency restricted to these designated zones.
This framework offers a dual benefit: advanced nations secure low-cost labor to drive economic growth, while migrants receive human dignity, secure jobs, and free access to housing, food, healthcare, and education.
Global Special Zone Project NO2
https://world-special-zone.seesaa.net/
Nagano Opinion NO1
https://naganoopinion.blog.jp/
For details on Parts 4 through 10, please refer to the Sunday Edition.
Yasuhiro Nagano
Archive Blog (Past Articles): To World Media
https://toworldmedia.blogspot.com/
If you have any questions, please feel free to contact us!
enzai_mirai@yahoo.co.jp
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