Hirobumi Senbongi – Singapore
The Japanese government asked other members of the Trans-Pacific Partnership free-trade talks to revise their export-related protectionist measures, including United States’ export subsidies, it was learned Monday, December 9.
In the ministerial meeting of the TPP member countries held in Singapore, Japanese negotiators claimed that measures to support exports can distort trade liberalization, saying that it is unfair to focus only on tariff cuts by importing countries, and many members backed Japan on the issue, according to government sources close to the negotiations.
By taking an offensive negotiating stance in the area of trade in goods, Japan aims at maintaining its pledge to protect key agricultural products from tariff elimination, the sources said.
In the TPP negotiations, many member countries have been urging Japan to abolish tariffs on agricultural products including sensitive items, while the U.S. government which leads the negotiations maintains export-supportive measures such as export subsidies for dairy products. The U.S. also has an export credit guarantee system to protect exporters by providing low-interest financing through the Commodity Credit Corporation to cover the risk of defaults. The system contributes to expanding U.S. grain and cotton exports to developing nations.
The members of the World Trade Organization have agreed to abolish all forms of export subsidies and measures with equivalent effect by the end of 2013, but many remain uneliminated as they failed to reach final agreement on the issue at the Doha round of trade negotiations.
Many of the WTO negotiators have also indicated the unfairness of one-sidedly debating tariff cuts by importing countries while maintaining subsidies in exporting countries. Moreover, the U.S. has been reluctant to discuss in the TPP negotiations the issue of leveling the playing field between state-owned firms and private companies in the area of agricultural trade.
In the TPP talks, Japan expressed concerns over such issues as public export credit guarantees, export monopolies such as Fonterra which the New Zealand government gives virtually exclusive right to export dairy products, and measures to ban or restrict exports. Japanese negotiators have suggested setting up a committee to inspect protectionist measures.
Government sources said more countries are welcoming Japan’s proposal, and are beginning to think that they would not be able to reach agreement on this area unless they include a new discipline for export assistance. For example, Australia which has worked on abolishing export subsidies in the WTO negotiations has expressed support for Japan.
Many countries which have concerns over the increase in imports of dairy products from New Zealand apparently share the same negative attitude toward export monopolies, they added.
(Dec. 10, 2013)