Economic background Japan has maintained a defensive trade stance since the end of World War II. Though the country has benefited from global efforts at economic liberalization, it has never spearheaded them itself, unlike other developed powers such as the United States and European Union. It has, however, gradually liberalized its economy over the years under pressure from the United States, long its most important trade partner and a driving force behind its economic growth. And the Japanese government has started adapting its trade strategy recently to accommodate the country's aging population and the increasingly competitive environment that trade agreements have fostered in the modern economy. Today, Japan is taking a more proactive approach as it tries to catch up with its peers. A dual economy emerged in Japan in the wake of World War II.