Japan to remove tariffs on 95.1% of imports under TPP pact
Japan Today | 21 October 2015
Japan to remove tariffs on 95.1% of imports under TPP pact
The Japanese government said Tuesday that it will eventually remove tariffs on 95.1% of farm, industrial and other imported products in value terms under the recently sealed Trans-Pacific Partnership trade pact.
The figure compares with the abolishment of duties on “nearly 100%” of imported items under the free trade deal by 12 TPP members including the United States, Canada and Australia, said Akira Amari, the economy minister in charge of TPP.
The level, however, tops the 88.4% in bilateral free trade accords Japan has made respectively with the Philippines and Australia, the highest tariff removal among its existing free trade agreements.
The new Pacific Rim trade initiative covers 40% of the world economy.
The extent of Japan’s tariff elimination under the TPP is smaller than those of 11 other members as duties on some sensitive farm products will remain. Among 586 such products, about 30% will eventually become tariff-free.
Tokyo, on the other hand, will immediately remove tariffs on 95.3% of industrial products imported from TPP nations, while duties TPP members impose on 86.9% of such products exported from Japan will be eliminated once the trade pact takes effect, government officials said.
“This is a well-balanced agreement,” Amari said at a press conference.
The minister shrugged off concerns that Japanese farmers may face intense price competition with an influx of cheaper foreign products. Import volumes of such custom-free agricultural products are typically low and Japan already relies heavily on imports to supply those products in the domestic market, he said.
Still, the agreement could call into question whether the outcome is consistent with resolutions adopted by Diet committees in 2013 that urged the five key farm product categories—rice, wheat, beef and pork, sugar and dairy products—to be exempt from tariff elimination.
Japan disclosed details of the agreement after trade ministers from the 12 Pacific countries reached a broad agreement earlier in the month.
The participating nations will need to finalize the text of the treaty for formal signature in their respective processes leading to eventual ratification.
Other TPP members are Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
