2011 January 26 - February 1 TOP3 [
ECONOMY]
Obama’s State of the Union address reveals PM Kan’s naive vision for TPP
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January 27, 2011
U.S. President Barack Obama in the 2011 State of the Union address vowed to secure domestic employment by expanding its exports. This proposal is deeply related to Japan’s participation in the Trans-Pacific Partnership (TPP) pact which the Japanese government is now trying to achieve.
Strengthen international competitiveness
The president stressed the need to strengthen U.S. international competitiveness and proposed to cut corporate taxes and conduct deregulations to achieve this. “At stake is whether new jobs and industries take root in this country or somewhere else,” he stated.
The U.S. now focuses on concluding free-trade agreements in order to gain more overseas markets, including Japan, for its exports. As the president said, “I would only sign deals that keep faith with American workers and promote American jobs,” this policy clearly reflects U.S. national interests.
In Japan, there is a strong belief that Japan’s entry into the TPP will help the country to increase exports of industrial products. Prime Minister Kan Naoto stated in his policy speech on January 24 that he will open Japanese markets for the sake of its growth and employment. However, in the speech the U.S. president indicates that such an expectation is overly optimistic.
Pressed to deregulate
By joining the TPP, Japan will be urged to lift restrictions on a wide range of items, such as food, environment, development, medical care, education, finance, and security. It will be required to prioritize globalization that brings more profits to multinational corporations and be required to destroy its economic rules.
Trade must be beneficial to both exporting and importing countries. Conclusion of the TPP must be blocked if it forcibly requires importers to make their markets available to exporters.
