Premier Says Japan Will Join Pacific Free Trade Talks
Prime Minister of Japan, Yoshihiko Noda said that Japan is going to join the talks of the pacific free trade called TPP, which stands for Trans-Pacific Partnership. Joining TPP is concerned to be encouraging exporters who seek new markets but to endanger farmers: the farmers are very angry about this.
The Asia-Pacific economic summit meeting will be held this weekend in Hawaii, and President Obama is going to promote the far-reaching TPP regional trade agreement. The aim of the agreement is to cut import tariffs to zero. Nine governments are joining the discussion.
Mr. Noda strongly claimed that global competition eventually makes a domestic economy, including a more competitive agricultural sector, stronger.
The United States has been buying more from Japan than it has been selling to Japan. Therefore, the United States has pushed for better access to Japanese markets. One concern for the US is that Tokyo's participation may complicate talks if Japanese government is unable, or unwilling, to commit to slashing some tariffs.
The pact for Japan means lower tariffs that encourage some imports and exports. Of course, the effect reaches to highly protected domestic sectors like farming.
Japan is now just entered the negotiations, but there is already protesting campaign.
Japan's farmers have been protected under very high tariffs, such as 777.7 percent levy on imported rice. Those farmers are protesting the government against the pact.
The protesting campaign is supported by the public, while free trade proponents argue that consumers benefit from cheaper imports, such as of food.
Even members in Noda's Domestic Party strongly oppose Noda's policy, and the party split, dooming his government.
Exporters claim that without the pact, Japan risks being left behind in the world economy. They believe that joining the pact create a better condition for Japan against regional rivals like South Korea.
South Korea already has a free trade agreement with European Union and the United States, whereas Japan doesn't.
Calls for free trade has been discussed at a very high pitch.
Yoko Ishikura, a professor of global business at Keio University in Tokyo, said at a recent economic forum that the government had:
The pact for Japan means lower tariffs that encourage some imports and exports. Of course, the effect reaches to highly protected domestic sectors like farming.
Japan is now just entered the negotiations, but there is already protesting campaign.
Japan's farmers have been protected under very high tariffs, such as 777.7 percent levy on imported rice. Those farmers are protesting the government against the pact.
The protesting campaign is supported by the public, while free trade proponents argue that consumers benefit from cheaper imports, such as of food.
Even members in Noda's Domestic Party strongly oppose Noda's policy, and the party split, dooming his government.
Exporters claim that without the pact, Japan risks being left behind in the world economy. They believe that joining the pact create a better condition for Japan against regional rivals like South Korea.
South Korea already has a free trade agreement with European Union and the United States, whereas Japan doesn't.
Calls for free trade has been discussed at a very high pitch.
Yoko Ishikura, a professor of global business at Keio University in Tokyo, said at a recent economic forum that the government had:
"not done a great hob of explaining the benefits, and the debate has become emotionally charged."
and she added,
Thus, there are many supporters for the pact as well as many protesters against the pact. One problem claimed in Japan is that the government is not providing enough information to the public. Many people do not know what would happen if Japan joins the pact. Another problem is that Mr. Noda very quickly decided to join the pact. Whether Japan joins the pact has long been discussed for several years, but a large earthquake happened in March this year, and the government suspended the discussion for a while in order to focus on the damage of the earthquake.
"we need to ask, 'what if Japan doesn't join?' That could be the bigger risk."
Thus, there are many supporters for the pact as well as many protesters against the pact. One problem claimed in Japan is that the government is not providing enough information to the public. Many people do not know what would happen if Japan joins the pact. Another problem is that Mr. Noda very quickly decided to join the pact. Whether Japan joins the pact has long been discussed for several years, but a large earthquake happened in March this year, and the government suspended the discussion for a while in order to focus on the damage of the earthquake.
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The Governments Attending: 9 + Japan = 10 governments.
- Australia (20 November 2008)
- Brunei (28 May 2006)
- Chile (28 May 2008)
- Japan (11 November 2011)
- Malaysia (October 2010)
- New Zealand (28 May 2006)
- Peru (November 2008)
- Singapore (28 May 2006)
- United States (February 2008)
- Vietnam (November 2008)
You may find more details here, Office of the United States Trade Representative, Trans Pacific Partners
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