The Liberal Democratic Party’s two panels jointly held a meeting on Thursday, October 10, and decided to examine the effects of eliminating tariffs on key agricultural products under the Trans-Pacific Partnership free-trade talks.
At the meeting, Koya Nishikawa, head of the LDP’s TPP committee, said that it is necessary to look at tariffs according to subdivided items under the products, although repeatedly explaining that this does not mean he is trying to leave out certain items from the list of five untouchable agricultural products.
The LDP’s committee on TPP affairs and headquarters for regional diplomatic and economic partnership agreed as a party to proceed with verifying the effects in line with the overall negotiation process, including upcoming bilateral talks, while maintaining their basic policy of protecting the five key agricultural products.
“We are not on the assumption that tariffs will be abolished,” said LDP Secretary General Shigeru Ishiba, keeping pace with Nishikawa’s stance. “It is natural for us to proceed with negotiations after examining and recognizing why tariffs are imposed (on subdivided items).”
The party will examine the effects of cutting tariffs imposed on key agricultural products and items whose tariffs have never been eliminated under the existing bilateral free trade agreements, and verify how it will influence trade with each country. As for processed products, the party will study the effects of tariff cuts on the domestic food industry, as well as the effects on agricultural raw materials. It will also see whether there are items whose tariffs were eliminated in the existing FTAs but need to be maintained in the TPP pact.
Nishikawa said that the panel will conduct the examination by mid-November, so that the results would be reflected in the negotiations before the ministerial meeting expected in early December. The leaders of the TPP member countries have agreed on Tuesday, October 8, to resolve outstanding issues with the objective of completing an agreement by the year end.
Many LDP members expressed concern over the party’s overhasty attitude of taking the lead in examining the effects of tariff cuts, which could lead to Japan making concessions in the TPP negotiations. Some said that the party should definitely protect what it has protected until now, citing farmers’ worries over its possible policy shift. Others asked why the party is rushing towards concluding the TPP talks, at a time when part of the negotiation momentum was lost in the summit meeting with the absence of U.S. President Barack Obama, the leader of the nation which has been the most vocal.
Nishikawa told reporters on Sunday, October 6, in Bali, Indonesia, that it would be difficult for Japan to continue refusing to discuss tariff cuts for all of the 586 subdivided items of the five key agricultural products. “We need to consider whether we can take (sensitive items) out, but this does not mean we are presupposing leaving certain items out of the list,” Nishikawa said.
Prime Minister Shinzo Abe told a press conference on Thursday, October 10, in Bali, Indonesia, that the LDP should not break the pledge of protecting the five key agricultural products, including rice and wheat. Abe, also LDP President, said he will closely watch the LDP’s examination process and cooperate closely with the party.
Chief Cabinet Secretary Yoshihide Suga told a separate press conference in Tokyo the same day that the government and the LDP will make concerted efforts on the matter.
“I think it is sound for a political party to have various debates within itself,” Suga said.
(Oct. 11, 2013)