Enthusiasm for Japan in TPP continues
April 15, 2013 | 06:13 PM
Two agriculture groups, the National Oilseed Processors Association and the International Dairy Foods Association, late Friday joined the chorus of farm groups that applauded the U.S. decision to welcome Japan to the Trans-Pacific Partnership talks, while the Center for Strategic and International Studies explained some of reason that Japan’s entry is so important.
Tom Hammer
“NOPA is not only pleased that Japan has embraced the opportunity to join the TPP,” President Tom Hammer said in a news release, “but also recognizes the historic importance of Japan’s confirmation that all goods will be subject to negotiation. Japan’s full entry into the TPP Agreement provides great opportunity to address both the tariff and non-tariff barriers facing U.S. farmers, processors and exporters.”
The inclusion of non-tariff barriers, specifically sanitary and phytosanitary measures is an essential element of the negotiations in light of the myriad of NTBs that have historically impeded market access for U.S. agricultural exporters, NOPA added.
Clay Hough
The International Dairy Foods Association, which represents the nation’s dairy processors, noted that it joined more than 70 agricultural and business organizations to ask President Barack Obama to include Japan in the negotiations
“The addition of Japan greatly expands the scope of the TPP, and that market is a significant opportunity for U.S. dairy exports,” said Clay Hough, IDFA senior group vice president.
IDFA noted that Japan’s economy is second only to China’s in the region, and it is the United States’ fourth largest agricultural export market overall, despite maintaining substantial import barriers, with U.S. food and agricultural exports to Japan in 2012 totaled $13.5 billion.
U.S. dairy shipments grew by 13 percent to reach $284 million in 2012, making Japan the fifth largest market for dairy, according to the U.S. Dairy Export Council.
Hough also noted that Japan still requires the consensus approval of all current TPP members. In addition to the United States, they are Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Thailand, the 14th largest export market for the United States, has also expressed interest in joining the talks.
Matthew Goodman
In a memo produced as part of CSIS’s “Critical Questions” series, Matthew Goodman, who holds the William E. Simon Chair in Political Economy at CSIS, wrote that:
“With Japan, the 12 countries in TPP account for nearly 40 percent of global GDP and roughly one-third of world trade. This means that TPP can no longer be dismissed as a relatively limited undertaking between the United States and a number of smaller Asia-Pacific economies; among the world’s active trade negotiations, TPP is now clearly the largest and most significant. It also positions TPP as the leading template for future trade arrangements, including the recently announced Transatlantic Trade and Investment Partnership (TTIP).”
“The addition of Japan also gives momentum to TPP as the leading forum for economic integration in the Asia-Pacific region, and as the economic centerpiece of the U.S. strategy of ‘rebalancing’ to Asia,” Goodman added.
“South Korea is now likely to feel compelled to take another serious look at joining TPP, something which would not be difficult in substance (since TPP is largely modeled after the existing Korea-U.S. Free Trade Agreement, or KORUS), but which Seoul has been reluctant to do because of lingering domestic opposition to KORUS and concerns about tilting too far away from China. Thailand, the Philippines, and Taiwan have also expressed strong interest in joining TPP.
“All of this is likely to give pause to Indonesia and China, which have championed the other main forum for trade liberalization in Asia, the Regional Comprehensive Economic Partnership (RCEP), a grouping that includes all 18 members of the East Asia Summit except the United States and Russia.”
Goodman noted that the Obama administration will soon notify Congress of its intention to bring Japan into the TPP negotiations, launching a 90-day consultation period.
“Vocal opposition from some House members — especially those representing automotive interests — is likely, but the administration is counting on support from most Republican members and enough Democrats to overcome this resistance. The other 10 countries in TPP must also approve Japan’s entry; Australia, New Zealand, and Canada have expressed some concerns but are likely to come aboard now that the United States has welcomed Japan in.”
The next TPP negotiating session will be held in Lima, Peru in May. Japan hopes to formally join the TPP negotiations before a July meeting, just ahead of Japanese Upper House elections late that month.
“NOPA is not only pleased that Japan has embraced the opportunity to join the TPP,” President Tom Hammer said in a news release, “but also recognizes the historic importance of Japan’s confirmation that all goods will be subject to negotiation. Japan’s full entry into the TPP Agreement provides great opportunity to address both the tariff and non-tariff barriers facing U.S. farmers, processors and exporters.”
The inclusion of non-tariff barriers, specifically sanitary and phytosanitary measures is an essential element of the negotiations in light of the myriad of NTBs that have historically impeded market access for U.S. agricultural exporters, NOPA added.
Clay HoughThe International Dairy Foods Association, which represents the nation’s dairy processors, noted that it joined more than 70 agricultural and business organizations to ask President Barack Obama to include Japan in the negotiations
“The addition of Japan greatly expands the scope of the TPP, and that market is a significant opportunity for U.S. dairy exports,” said Clay Hough, IDFA senior group vice president.
IDFA noted that Japan’s economy is second only to China’s in the region, and it is the United States’ fourth largest agricultural export market overall, despite maintaining substantial import barriers, with U.S. food and agricultural exports to Japan in 2012 totaled $13.5 billion.
U.S. dairy shipments grew by 13 percent to reach $284 million in 2012, making Japan the fifth largest market for dairy, according to the U.S. Dairy Export Council.
Hough also noted that Japan still requires the consensus approval of all current TPP members. In addition to the United States, they are Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Thailand, the 14th largest export market for the United States, has also expressed interest in joining the talks.
In a memo produced as part of CSIS’s “Critical Questions” series, Matthew Goodman, who holds the William E. Simon Chair in Political Economy at CSIS, wrote that:
“With Japan, the 12 countries in TPP account for nearly 40 percent of global GDP and roughly one-third of world trade. This means that TPP can no longer be dismissed as a relatively limited undertaking between the United States and a number of smaller Asia-Pacific economies; among the world’s active trade negotiations, TPP is now clearly the largest and most significant. It also positions TPP as the leading template for future trade arrangements, including the recently announced Transatlantic Trade and Investment Partnership (TTIP).”
“The addition of Japan also gives momentum to TPP as the leading forum for economic integration in the Asia-Pacific region, and as the economic centerpiece of the U.S. strategy of ‘rebalancing’ to Asia,” Goodman added.
“South Korea is now likely to feel compelled to take another serious look at joining TPP, something which would not be difficult in substance (since TPP is largely modeled after the existing Korea-U.S. Free Trade Agreement, or KORUS), but which Seoul has been reluctant to do because of lingering domestic opposition to KORUS and concerns about tilting too far away from China. Thailand, the Philippines, and Taiwan have also expressed strong interest in joining TPP.
“All of this is likely to give pause to Indonesia and China, which have championed the other main forum for trade liberalization in Asia, the Regional Comprehensive Economic Partnership (RCEP), a grouping that includes all 18 members of the East Asia Summit except the United States and Russia.”
Goodman noted that the Obama administration will soon notify Congress of its intention to bring Japan into the TPP negotiations, launching a 90-day consultation period.
“Vocal opposition from some House members — especially those representing automotive interests — is likely, but the administration is counting on support from most Republican members and enough Democrats to overcome this resistance. The other 10 countries in TPP must also approve Japan’s entry; Australia, New Zealand, and Canada have expressed some concerns but are likely to come aboard now that the United States has welcomed Japan in.”
The next TPP negotiating session will be held in Lima, Peru in May. Japan hopes to formally join the TPP negotiations before a July meeting, just ahead of Japanese Upper House elections late that month.
