<html><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><span class="Apple-style-span" style="font-size: 12px; "><a href="http://ajw.asahi.com/article/economy/business/AJ201304030139" style="color: blue; text-decoration: underline; ">http://ajw.asahi.com/article/economy/business/AJ201304030139</a></span><div style="font-size: 12px; "><span class="Apple-style-span" style="font-family: Georgia, serif; font-size: 10px; line-height: 14px; "><h1 style="margin-top: 0px; margin-right: 0px; margin-left: 0px; margin-bottom: 0px; line-height: 28px; font-size: 24px; font-family: 'Times New Roman', serif; font-weight: normal; clear: both; width: 462px; float: left; padding-top: 22px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; ">Japan reaches basic agreement with U.S., will join TPP talks in July</h1><div class="nav_article" style="width: 462px; float: left; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 22px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; "><ul class="" style="margin-top: 0px; margin-right: 0px; margin-bottom: 12px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; width: 462px; list-style-type: none; float: left; background-image: url(http://ajw.asahi.com/media/img/common/navi_line_header.gif); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: 50% 50%; background-repeat: no-repeat no-repeat; "><li class="prev" style="width: 220px; float: left; font-size: 12px; "></li></ul></div></span><div apple-content-edited="true"><div style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; font-size: 12px; "><span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: Helvetica; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; "><div style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><div><br></div><div><br></div><div><br></div><div><br></div><div><br></div><div><br></div><div><br></div></div></span><span class="Apple-style-span" style="font-family: Georgia, serif; font-size: 10px; line-height: 14px; "><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">Tokyo and Washington have reached a basic agreement during preliminary talks on Japan's participation in the negotiations for the proposed Trans-Pacific Partnership free trade arrangement, a senior Japanese government official said.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">U.S. President Barack Obama is expected to soon notify Congress to win its approval. Japan will likely be allowed to formally join the TPP talks as early as July.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">Prime Minister Shinzo Abe confirmed with Obama during a summit in February that the elimination of all tariffs without exception will not be a prerequisite for Japan's participation in the talks. Abe formally announced his will to join the talks in March.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">Congressional approval before Japan's entering the trade talks will take 90 days. For that reason, Japan had to reach an agreement by the end of April if it wanted to join a TPP negotiation session that could be held as early as July.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">Tokyo was eager to rush an agreement with Washington out of fear that discussions on creating TPP rules would proceed without Japan if Japan was late in coming.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">During the preliminary talks, Washington called for Tokyo's concessions, primarily in the automotive sector, as a precondition for approving Japan's participation. More specifically, Washington demanded to continue, for the time being, with its current tariffs on imported Japanese vehicles. Tokyo accepted that demand.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">The U.S. side also demanded that Japan expand its "preferential handling procedure for imported motor vehicles," which simplifies safety inspections for imported U.S. vehicle models with annual sales of up to 2,000 units. Japan also accepted that demand.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">Both sides also engaged in the final negotiations on other fronts from late March.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">Most of the current parties to the TPP talks have approved Japan's participation. Australia and New Zealand have yet to approve it, so much depends on what those countries will have to say.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">But considering the United States' huge say in the talks, the basic agreement in the preliminary bilateral talks with Washington has virtually set the stage for Japan's entry into the multilateral talks.</p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1em; margin-left: 0px; line-height: 18px; font-size: 14px; font-family: 'Times New Roman', serif; color: rgb(51, 51, 51); ">The Cabinet is expected to decide April 5 to set up an organization dedicated to the TPP talks. The government is expected to negotiate with other countries, while dealing with farmers' associations and other TPP opponents in Japan.</p><div><br></div></span><span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: Helvetica; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; "><div style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "></div></span></div></div></div></body></html>