Japan Press Weekly

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2013 April 10 - 16 [POLITICS]

Abe makes large concessions in pre-TPP talks with US

Akahata editorial (excerpts)

Prime Minister Abe Shinzo on April 12 made large concessions in prior negotiations with the United States regarding Japan’s entry into the Trans-Pacific Partnership (TPP) trade block in terms of car imports and non-tariff barriers such as safety standards for foodstuffs.

The Japan-U.S. prior negotiations have taken place under the pretext of the need to obtain consent from all nations participating in the TPP negotiations before Japan joins in the multinational free trade negotiations.

Japan and the U.S. agreed that Japan will levy almost no tariffs on automobiles imported from the United States but that the U.S. will impose tariffs on Japanese cars. Abe accepted the U.S. demand for the tariffs to be maintained for the longest possible period of time under the TPP framework. Abe’s assertion that the removal of tariffs associated with the TPP participation will increase Japanese exports has clearly emerged as an illusion.

The U.S. administration, in the interest of U.S. insurance companies, has opposed the business expansion plan of Japan Post Insurance. Listening to the U.S. argument, the Abe government decided to not permit Japan Post Insurance to start a new business for the time being. Abe promised to hold Japan-U.S. talks regarding non-tariff barriers, including other insurance related matters and food-safety procedures in parallel with the TPP talks. He left room to make further concessions to meet U.S. demands.

Abe has told the general public that he will win over other countries’ consent to Japan’s request for treating its farm products as exceptions. He has used this logic as an excuse to enter into the TPP talks, though this trade alliance has an aim of “eliminating tariffs without exception”. No specific statement concerning key items on both sides exists in the Japan-U.S. agreement.

Not one word regarding Japanese agricultural products appears in a U.S. press release. It, in fact, underlines ongoing U.S. efforts pressing Japan to accept the elimination of tariffs without exception. Not only the U.S. but also other participating nations like New Zealand are pushing for the “without exception” deal. Abe can no longer insist that exceptions can be possible depending on the negotiations’ outcome.