Japan emphasizes that the agreement recognized the agricultural products are especially sensitive, while the U.S. underscores the point that all goods will be subject to negotiation
Some differences are found in Japan and the United States’ outline of the agreement statement on preparatory negotiations over Japan’s entry into the Trans-Pacific Partnership talks announced Friday, April 12, it was learned. The different points include: 1.The Japanese version outline of the agreement said that the two countries confirmed certain farm products were “sensitive” for Japan, while the U.S. version did not mention the point. 2. The U.S. outline noted that Japan agreed to negotiate on all items, which is not mentioned in the Japanese summary. The different expressions in the announcement reveal the gaps between how Tokyo and Washington intend to highlight the outcomes of the bilateral negotiations.
The question arises on whether the Japanese government’s disclosure of information is sufficient, and on the danger that Japan might be pressured by the U.S. to compromise on key issues without Japanese people being aware of it. The Japanese government must take appropriate steps to put the negotiations on the right track.
The Japanese government’s outline of the Japan-U.S. agreement states that the two countries confirmed that certain industrial products are “sensitive” for the U.S. while certain farm products are “sensitive” for Japan. Meanwhile, the outline of the agreement released Friday by the U.S. Trade Representative’s office does not quote this phrase, and instead emphasizes that Japan made it clear that “all goods would be subject to negotiation,” and that it will join negotiations for the TPP “in achieving a comprehensive, high-standard agreement.”
Acting U.S. Trade Representative Demetrios Marantis said Friday in a press conference over the telephone that the Japan-U.S. joint statement on the TPP announced in February should be remembered. It clearly states that should Japan participate in the TPP negotiations, all goods would be subject to negotiation, and Japan would join others in achieving a comprehensive, high-standard agreement, he said.
The U.S. government also released an attached document describing in detail a broad range of non-tariff measures which the two countries agreed to negotiate bilaterally in parallel with the TPP talks. It stressed the outcomes achieved in the negotiations particularly in the insurance sector. As for sanitary and phytosanitary (SPS) measures, it pointed out specific demands such as speeding up and streamlining risk assessment procedures for gelatin, disinfectants and food additives. It also says that if the two countries agree, they can add other items for negotiation.
Both governments announced an official document confirming the outline of the bilateral agreement. The two sides agreed to settle the bilateral negotiations on non-tariff barriers before the conclusion of the TPP talks, and to address the results as enforceable commitments such as creation of a new law This implies that Japan could end up having no other choice but to compromise on these areas.
The U.S. document also states that Japan will increase the number of motor vehicles eligible for import under its Preferential Handling Procedure (PHP), a simpler and faster certification method often used by U.S. auto manufacturers to export to Japan, and that Japan will not authorize the sale of new medical insurance products by Japan Post Insurance Co. The Japanese document, however, does not mention these measures because they “are taken on Japan’s own initiative,” according to a trade official.
The differences in how the two countries outlined the agreement reflect the two governments’ consideration for the domestic circumstances. In Japan, the Liberal Democratic Party adopted a resolution which calls for exempting tariff elimination on five key farm products. The U.S. Congress and industrial groups, however, are not only strongly against such exceptions but are expressing concerns over non-tariff barriers in Japan which they say hamper U.S. exports to Japan. There are also observations that the Japanese government wants to minimize the image that it has made a big compromise in the area of automobiles and insurance.
(April 16, 2013)