Lastly, big changes in the structure of America's trade patterns mean that more countries would have to be involved in any adjustment process. In 1985, Japan accounted for 16% of America's trade; now that share is down to 9%o. Meanwhile Mexico, China and some other Asian countries have become much more important partners. a round of financial diplomacy involving policymakers in only five countries would no longer do the trick But the main difference between today and the mid-1980s is that the adjustment paths used last time round-a big shift in demand away from America towards Japan and germany together with a substantial but orderly drop in the dollar-are blocked As the next two sections will argue, both Japan and germany face big hurdles and wrenching economic reforms before orderly depreciation of the dollar. That makes the prospects a lot grimmer than before aa ount either can become an engine of global growth in demand; and Asian countries which acco for a third of America's trade are refusing to let their currencies appreciate ruling out Copyright 2004 The Economist Newspaper and The Economist Group. All rights reservedLastly, big changes in the structure of America's trade patterns mean that more countries would have to be involved in any adjustment process. In 1985, Japan accounted for 16% of America's trade; now that share is down to 9%. Meanwhile Mexico, China and some other Asian countries have become much more important partners. A round of financial diplomacy involving policymakers in only five countries would no longer do the trick. But the main difference between today and the mid-1980s is that the adjustment paths used last time round—a big shift in demand away from America towards Japan and Germany, together with a substantial but orderly drop in the dollar—are blocked. As the next two sections will argue, both Japan and Germany face big hurdles and wrenching economic reforms before either can become an engine of global growth in demand; and Asian countries, which account for a third of America's trade, are refusing to let their currencies appreciate, ruling out an orderly depreciation of the dollar. That makes the prospects a lot grimmer than before. Copyright © 2004 The Economist Newspaper and The Economist Group. All rights reserved