February 28, 2011

US to call on Japan to fully open market for US beef

A US senator urges President Obama to press Japan to fully open up its market to US beef imports, because it could affect on whether Japan is allowed into the Trans-Pacific Partnership (TPP) free trade negotiations.

A spokeswoman for Senator Mike Johanns' office would not comment on the letter, a draft of which was obtained by Inside US Trade, because it is not yet finalised. The senator is seeking to gather signatures from other lawmakers before sending it to the White House.

"If Japan asks for inclusion in the TPP negotiations, we encourage you to press Japanese leaders to immediately relax restrictions on US beef to be fully consistent with OIE guidelines and reopen its market," the draft letter reads, in reference to the World Organization for Animal Health, which is known by the French acronym OIE.

"At the very least, Japan should agree to immediately relax its age restrictions to 30 months on a pathway to full OIE compliance," it adds. Japan only accepts beef from cattle 20 months or younger, a limit that was established following the 2003 discovery of a cow infected with bovine spongiform encephalopathy (BSE) in the US.

In the draft letter, Johanns further warns that if Japan joins the talks, he would have "serious reservations" with any final TPP deal submitted to Congress that does not include a commitment by Japan to fully open its beef market and also to eliminate tariff and non-tariff barriers impeding agricultural exports to Japan.

The Obama administration has already communicated informally to the Japanese government that, if it decides to try to join the TPP talks, the US wants to receive new assurances from Japan that it is willing to resolve long-standing bilateral trade irritants, such as the beef market access issue.

At the same time, the administration has never publicly linked the two issues. Assistant US Trade Representative Barbara Weisel has said there is no "entrance fee" for new countries looking to join the TPP negotiations, while stressing that any new member would have to be prepared to open its market across the board (Inside US Trade, October 29).

Tokyo is still weighing whether to join the TPP talks and has said it will announce its decision in June. If it were to join the talks, Japan would face pressure to open up its highly protected agricultural sector, and whether Japan is prepared to do this is one of the most sensitive issues that the Japanese government is now discussing internally.

Pushing a free trade agenda, including joining the TPP, is highly controversial in Japan. While Japanese Prime Minister Naoto Kan supports joining the TPP talks-and is supported by many Japanese business groups-he has faced stiff resistance from Diet members and others representing agricultural interests in Japan.

One Japanese expert argued that the Johanns letter could actually make it harder for Japanese supporters of joining the TPP to win over the skeptics. "The letter could make the position of the pro-trade lobby more difficult," said Bryce Wakefield, an Asia programme associate at the Woodrow Wilson International Center for Scholars.