Japan to speed up discussions on Pacific FTA under new Cabinet
Mainichi | January 15, 2011
Japan to speed up discussions on Pacific FTA under new Cabinet
TOKYO (Kyodo) — Discussions on whether Japan should join a U.S.-backed free trade initiative are expected to accelerate under the revamped Cabinet toward a self-imposed June deadline, with new trade minister Banri Kaieda expected to play a key role in pushing for the country’s participation in negotiations for the Trans-Pacific Partnership.
The replacement of Akihiro Ohata indicates Prime Minister Naoto Kan’s unease with retaining as economy, trade and industry minister a person who has shown a cautious stance on the TPP, at a time when Kan sees trade liberalization as a policy priority.
"I would like industry minister Kaieda and farm minister (Michihiko) Kano to work hard to present a pathway to achieving a balance between the promotion of economic partnerships and agricultural reform," Kan told a press conference after the launch of his reshuffled Cabinet on Friday.
Kaieda, formerly economic and fiscal policy minister, told a separate press conference that he was ordered by Kan to work to pursue high-level free trade agreements with other countries and to especially make necessary preparations for the TPP issue.
"I believe (the TPP agreement) is important for Japan to incorporate Asia’s growth in seeking growth of its own...given that the Asia-Pacific region is a driving force in the world economy," Kaieda said.
While Kaieda expressed his eagerness to promote Japan’s participation in the TPP, calling it "an inevitability of history," a government official expressed doubt about whether Kaieda would be able to persuade farmers as he is elected from a Tokyo constituency covering the downtown areas.
Kan said earlier this month that Japan’s stance on whether to join the TPP negotiations must be decided by around June, when the government plans to come up with a basic policy on how to improve the competitiveness of the country’s agricultural sector.
But it is likely that Kan will have to make a tough political decision on the issue as strong opposition persists not only among domestic farmers but members of the ruling Democratic Party of Japan, who fear that the agricultural sector could be hit hard by an influx of cheap farm imports under the free trade agreement.
The TPP, which is currently being negotiated by nine countries including major agricultural exporters Australia and the United States, is aimed at requiring members in principle to reduce all tariffs to zero within 10 years.
Apparently taking heed of farmers’ concerns, Kano, who was retained as agriculture, forestry and fisheries minister, reiterated his cautious view, saying he is not sure whether the situation in June would go as far as making a decision on the TPP issue, as stated by the prime minister.
To allay domestic concerns, the government would have to come up with measures to reinforce the farm sector, such as by the expansion of an income support system, but doing so will likely require considerable resources amid tight fiscal conditions.
While Japan is known for a longstanding reluctance to open up its agricultural market, it appears Tokyo does not have much time left to ponder the issue because the United States is said to be seeking the conclusion of the negotiations in November.
Kaieda said that he is aware that moves among the current TPP negotiation countries are proceeding at "quite a high speed" and echoed the prime minister’s view that June will be "one target" to decide whether Japan should join the framework.
As part of its efforts to assemble information on the TPP, Japan is currently sending senior officials to the countries concerned. The first working-level meeting between Japan and the United States to discuss the matter started in Washington on Thursday and is scheduled to last two days.
The other countries involved in TPP negotiations are Brunei, Chile, New Zealand, Peru, Singapore, Vietnam and Malaysia.
