September 21, 2010

Japan keen to join trans-Pacific trade pact

New trade minister Akihiro Ohata on Tuesday (Sep 21) expressed his readiness to consider joining a multilateral free trade agreement for the Asia-Pacific region that is expanding its membership to include, among others, the US.

The Trans-Pacific Partnership (TPP) Agreement, currently involving negotiations between eight countries, is seen as a potential core framework for economic integration across the Asia-Pacific region. But Japan has been vague about whether it would join the framework.

"I would like to seek to reach an agreement in the Cabinet so that the Japanese government can make its intention clear that it will join the TPP," Ohata said.

But he acknowledged that it would be difficult for Japan to participate in the group, which is seeking to craft a high-standard comprehensive agreement, unless Japan "overcomes its agricultural issues."

Japan's heavily protected farm sector is often considered to be a major stumbling block in proceeding with FTA negotiations with other countries.

Economic integration has been a major topic of discussion for the 21-member Asia-Pacific Economic Cooperation forum throughout this year, and the TPP could become a core framework as a step toward the forum's long-held goal of creating a region-wide free trade area, dubbed the Free Trade Area of the Asia-Pacific.

The TPP started off with an agreement between four counties - Brunei Darussalam, Chile, New Zealand and Singapore - that basically requires member countries to eliminate all tariffs to zero by 2015.

Australia, Peru, the US, and Vietnam have also entered into the TPP negotiations. All of the eight countries belong to APEC.