Kyodo | 15 Jan 2011
U.S. warns Japan of high goals for Pacific FTA
WASHINGTON (Kyodo) — The United States said Friday it has told Japan that its broad goals for a trans-Pacific free trade accord "exceed" those Washington has pursued in previous free trade pacts, signaling that Tokyo must make unprecedented efforts to eliminate all tariffs.
The remarks came during two-day talks through Friday between the two countries on Tokyo’s possible participation in negotiations for the Trans-Pacific Partnership agreement.
The United States also provided Japan with an update on the TPP process and the two sides agreed to continue to consult as appropriate and necessary, U.S. officials said, adding no specific plans for follow-up meetings on the matter were agreed.
The United States also explained its approach under its past free trade pacts to highlight the level of ambition in some negotiating-issue areas such as market access and services, they said.
During the working-level talks held in Washington, the Japanese side explained that Tokyo is crafting its basic policy on the multilateral free trade talks.
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.
The TPP talks were held as part of the Japan-U.S. Trade Forum, in which the U.S. side called on Japan to achieve greater market access in such areas as rice, beef and automobiles, officials of the two countries said.
The United States also sought improvement in ensuring a level playing field for U.S. firms with regard to the planned privatization of Japan Post, the officials said, adding Japan raised such issues as the transportation of lithium batteries as well as the implementation of the Food Safety Modernization Act.
The forum was co-chaired by U.S. Assistant Trade Representative Wendy Cutler and Takeshi Yagi, director general of the Japanese Foreign Ministry’s Economic Affairs Bureau.
Japan decided in November to start consultations with the nine countries to judge whether to join the TPP negotiations. A country wishing to join the negotiations needs to secure the consent of all nine countries through bilateral talks.
Japanese Prime Minister Naoto Kan said earlier this month that Tokyo’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.
In Tokyo, new trade minister Banri Kaieda showed his willingness to step up efforts toward Japan’s formal participation in the TPP talks.
"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, minister of economy, trade and industry, told a news conference on Friday.
But it remains uncertain whether Japan will join the multilateral trade talks given strong opposition from farmers across the country.
Japan has already held bilateral talks with Australia, New Zealand and Singapore over the TPP.