Louvre Accord: Trade Deficit and Plaza Accord

louvre accord: During this period, there was the 1985 Plaza Accord, according to The Japan Times. In the 18 months between its conclusion and the 1987 Louvre Accord, the dollar's exchange rate to the yen and the deutschmark dropped by as much as 50 percent. The two countries were engaged in fierce bargaining over a wide range of products home electronics, automobiles, machine tools, precision machinery, supercomputers, tobacco, beef, oranges and rice. But even that could not reduce the U.S. trade deficit with Japan. This agreement amended in 1991 promised to ultimately allocate 20 percent of Japan's chip market to U.S.-made products. The negotiations leading up to the Japan-U.S. Semiconductor Agreement began in 1985. (news.financializer.com). As reported in the news.