TOKYO: Japan and the United States have agreed on a deal to allow Tokyo to join talks on a US-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 US-Japan agreement,’ he said, adding he hoped Tokyo could take part in the negotiations as soon as possible.
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 in order to take part in the trade talks. If Japan does join, the pact would cover almost 40 percent of world economic output.
The US-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.
US labour groups had been concerned about the impact of removing US tariffs on autos. Japanese media have reported that Tokyo and Washington agreed that the United States could keep tariffs of 2.5 percent on Japanese cars imports and 25 percent on imported trucks. The bilateral agreement also covered insurance and farm goods, the reports 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, Brunei and the 11 member nations aim to strike a deal by the end of this year. (Reuters)