Takanori Okabe, Satomi Tamai
The United States government on Sunday, June 9 (Monday, June 10 Japan time), closed a request for comments from the public on issues related to Japan’s participation in the Trans-Pacific Partnership free-trade talks. Regarding the agricultural sector, the comments, made open to the public through the U.S. government’s website, listed heaps of requests for Japan to eliminate tariffs including ones on “sensitive” products such as beef, pork and dairy products. Since the U.S. government also sought comments regarding bilateral negotiations on non-tariff measures which will be held between Japan and the U.S. in parallel with the TPP talks, many groups asked for reviewing of non-tariff measures such as speeding up approval procedures for food additives and pesticides and lifting of age limits for beef imports, as well as measures related to insurance, automotive and medical services sectors.
The U.S. Meat Export Federation welcomed the fact that Japan “has confirmed that all goods will be subject to negotiation,” stating that eliminating Japan’s border measures through the TPP negotiations will be beneficial for U.S. pork and beef exports. The National Pork Producers Council expressed concern over Japan’s so-called gate price system, in which the government sets a standard price for imported pork to levy special duties on products imported below the price. “In the absence of the Gate Price system, the United States would send large volumes of lower priced cuts to Japan,” the council said. Their comments indicate that U.S. agricultural groups are looking for tariff eliminations on products identified as sensitive products which need to be exempted from tariff cuts in the resolutions adopted by the agriculture, forestry and fisheries committees of the Upper and Lower Houses of the Diet.
The National Milk Producers Federation and the U.S. Dairy Export Council jointly submitted a comment calling for removal of tariffs on dairy products. It also asked that Japan speed up its approval procedures for expanded use of food additives and its evaluation process for approving additives that are banned in Japan but are commonly used in other countries.
The American Potato Trade Alliance demanded that Japan facilitate its regulatory review process for establishing new maximum residue levels for pesticides. Yum! Restaurants International, a major U.S. restaurant chain, requested that Japan allow beef of all kinds into the country with no age or product restrictions.
In the preliminary negotiations on Japan’s entry into the TPP talks, Japan and the U.S. agreed to hold bilateral negotiations on non-tariff measures in parallel with the TPP scheme. Having received various requests from the U.S. industries, there is a high possibility that the U.S. government will make Japanese systems and regulations related to food safety subject to negotiations.
The American Insurance Association, representing some 300 insurance firms, said it is essential for Japan to ensure competitive neutrality between private insurance companies and Japan Post Insurance. “The TPP must have coverage or disciplines that are at least equal to those established in the Financial Services Chapter of the Korea-U.S. Free Trade Agreement”, the association said. In the free trade agreement, Korea agreed to ensure that the same rules and regulations apply equally to agricultural cooperatives selling insurance and private insurers, which indicates that Japan’s mutual aid system could also become subject to negotiation.
United Auto Workers expressed concern that Japan’s entry into the TPP will “result in the loss of thousands of additional auto jobs in the United States,” and urged the TPP participants to include in the agreement strong provisions to avoid Japan from conducting “manipulation of its currency to unfairly support its exports.” The Pharmaceutical Research and Manufacturers of America asked that the issues of pharmaceutical pricing reform and other pharmaceutical regulatory reforms be subject to the bilateral negotiations.
The Office of the U.S. Trade Representative issued a notice on Tuesday, May 7, to seek comments from the public on issues related to Japan’s entry in the TPP framework, which will be reflected in its policies in bilateral negotiations with Japan and in the TPP negotiations. Japan’s Central Union of Agricultural Cooperatives (JA-Zenchu) also submitted a comment stating that agriculture “deserves a separate, sensible and different way of handling from other industries.” The comments can be viewed from the USTR’s website. 64 comments were confirmed as of midnight, Monday, June 10 (1 p.m., Monday, June 10 Japan time), most of which were submitted by groups related to agricultural and food industries.
(June 11, 2013)