Broad TPP Accord Struck for Huge Economic Zone

Atlanta, Oct. 5 (Jiji Press)--Twelve countries including Japan and the United States reached a broad accord in Trans-Pacific Partnership free trade negotiations at their ministerial meeting in Atlanta on Monday, paving the way for creating a huge regional economic zone. Participating ministers confirmed that the 12 countries have reached the broad agreement, Japanese TPP minister Akira Amari told reporters. The 12 countries "have successfully concluded" the TPP negotiations, U.S. Trade Representative Michael Froman said at a joint press conference after the ministerial meeting. At a plenary session on Monday morning to wrap up the ministerial meeting that started last Wednesday, participants from the 12 countries confirmed that they will conclude discussions on trade and investment rules in the TPP region and on market-opening measures such as tariff abolition and reductions for agricultural and industrial products. In a joint statement, the ministers said, "We expect this historic agreement to promote economic growth, support higher-paying jobs, enhance innovation, productivity and competitiveness, raise living standards, reduce poverty in our countries, and promote transparency, good governance and strong labor and environmental protections." When the TPP will take effect depends on ratification procedures in the United States, which led the free trade negotiations. The U.S. Congress is expected to approve the TPP in early 2016 at the earliest although the time to be spend on discussions on the pact would be shortened under the Trade Promotion Authority legislation, which was enacted in June. The effectuation of the TPP will come afterward. The ministerial talks in Atlanta, which were originally slated to take place for two days, entered into a sixth day on Monday following repeated extensions. The broad accord was reached five and a half years after the launch of the TPP negotiations in March 2010 among such countries as Singapore, New Zealand, Chile, Brunei, the United States and Australia. Other countries, including Japan, took part later. The 12 countries together account for about 11 pct of the world population and nearly 40 pct of global gross domestic product. After the TPP takes effect following ratification processes in each country, the huge economic zone surrounding the Pacific Ocean will be established. Japan joined the negotiations in July 2013 as the 12th member, with the administration of Prime Minister Shinzo Abe hoping to utilize the TPP as one of pillars of its growth strategy. The Abe government now aims for an early ratification of the TPP agreement in a bid to revitalize the Japanese economy using the free trade pact. At the same time, the government will work on crafting support measures for domestic parties who would suffer adverse impacts of the TPP, including rice, livestock and dairy farmers. Speaking to reporters in Tokyo Monday night, Abe said that Japan was able to secure tariff removal exceptions in agricultural fields such as rice, beef, pork and dairy products. The Japanese government will make utmost efforts to make agriculture an attractive sector for young people, he added. The broad agreement came after the 12 nations failed to narrow their differences over three sensitive sectors, including the protection period for development data on biopharmaceuticals, at their previous ministerial meeting in Hawaii in late July. For the biopharmaceuticals sector, the countries agreed in the final stage of the negotiations to set the protection period effectively at eight years. In the sector, the United States and Australia were in sharp confrontation, with Washington insisting on setting the period at 12 years to protect biopharmaceuticals companies in the nation and Canberra proposing a period of five years to promote the use of generic drugs. In the final stage, participants agreed to protect such development data for at least five years under law and for some more years under administrative and other measures for a total of eight years in effect. In bilateral talks as part of the TPP negotiations, Japan and the United States had heated debates on sticky areas, with Tokyo hoping to protect domestic rice farmers and Washington trying to prevent major impacts on its auto parts industry. As a result of the negotiations, Japan agreed to introduce a tariff-free import quota for U.S. rice, setting the amount at 50,000 tons per year initially and 70,000 tons in the 13th year of the TPP effectuation and later years. In addition, Japan will increase its imports of U.S. rice effectively under the existing minimum access import quota system of 770,000 tons a year. For Australian rice, Japan will set a tariff-free annual import quota of 6,000 tons initially and increase the volume to 8,400 tons in the 13th and later years. The United States agreed to remove its 2.5 pct tariffs for 87 pct of Japanese-made auto parts items upon the TPP effectuation. On finished Japanese vehicles, the United States will start lowering its 2.5 pct tariffs from the 15th year and scrap them in the 25th year. END