[CTC] TPP deal irks Japanese farmers, automakers

[Arthur Stamoulis]

http://www.reuters.com/article/2013/04/12/us-trade-asiapacific-japan-idUSBRE93B09R20130412

Japan, U.S. agree on Tokyo joining Trans-Pacific trade talks
By Kaori Kaneko and Doug Palmer

TOKYO/WASHINGTON | Fri Apr 12, 2013  (Reuters) - Japan and the United  
States have agreed on a deal to allow Tokyo to join talks on a U.S.- 
led Asia-Pacific free trade pact that Prime Minister Shinzo Abe is  
making a keystone of his strategy to open Japan's economy and spur  
long-sought growth.

The agreement brings Japan closer to entering talks on the Trans- 
Pacific Partnership (TPP), which Japan hopes to participate in as  
early as July.

"Japan and the United States have reached an agreement on Japan's  
participation in the TPP talks," Abe told reporters on Friday after a  
meeting with cabinet ministers.

"I think Japan's national interests are protected under this U.S.- 
Japan agreement," he said, adding he hoped Japan could take part in  
the negotiations as soon as possible.

In Washington, Acting U.S. Trade Representative Demetrios Marantis  
said Japan had agreed to "a robust package of actions and agreements"  
to address U.S. concerns in the automotive, insurance and other sectors.

"As a result, we are pleased to welcome Japan's participation in the  
TPP negotiations pending a consensus agreement among the current TPP  
members and the completion of our respective domestic processes,"  
Marantis said.

Still, a key U.S. lawmaker reserved judgment on the deal.

"I will not support Japan's entry into TPP unless we obtain airtight  
assurances that Japan's participation in the TPP negotiations will  
neither diminish the comprehensive and ambitious nature of these  
negotiations nor delay the goal of concluding the negotiations this  
year," said House of Representatives Ways and Means Committee Chairman  
Dave Camp, a Michigan Republican.

ABE'S 'THIRD ARROW'

Abe last month announced his decision to join the trade talks -  
despite fierce opposition from Japan's politically powerful farm lobby  
- as part of a "third arrow" in his "Abenomics" policy triad, after  
fiscal spending and drastic monetary policy easing.

Japan needs formal approval by all 11 participating countries to take  
part in the talks. If Japan does join, the pact would cover an area  
that accounts for almost 40 percent of world economic output.

The U.S.-Japan agreement allows the White House to give Congress 90- 
days' notice that it plans to start trade negotiations in time for  
Japan to participate in a July round of TPP talks.

U.S. labor groups had been worried about the impact of removing U.S.  
tariffs on autos.

But Tokyo and Washington agreed that the United States would phase out  
its auto tariffs - 2.5 percent on cars and 25 percent on trucks - over  
the longest period possible under the future TPP deal, the Japanese  
government said in a statement.

They also confirmed that certain industrial products were "sensitive"  
for the United States while certain farm products were "sensitive" for  
Japan, and agreed to keep talking bilaterally about non-tariff  
barriers in areas such as insurance and investment, it said.

New Zealand Trade Minister Tim Groser said last month the TPP member  
nations could formally decide whether to allow Japan into the talks  
when the 21-member trade officials meet in Indonesia on April 20-21  
for the annual meeting of the Asia-Pacific Economic Cooperation forum.

Countries in the trade talks include Canada, Mexico, Australia, Chile,  
Peru, Singapore, Malaysia, Vietnam and Brunei. The member countries  
aim to strike a deal by the end of this year.

  
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