Kan faces dilemma over transpacific trade talks

TOKYO, Oct. 21 (Kyodo) - Prime Minister Naoto Kan on Thursday faced the political dilemma of whether to promote discussions on Japan joining a multilateral transpacific free trade agreement amid mounting opposition within his Democratic Party of Japan.
During a government meeting the same day, Kan appeared to have become cautious
about the idea of deciding on how to deal with the Trans-Pacific Partnership
agreement before a summit next month of the Asia-Pacific Economic Cooperation
forum to be hosted by Japan.
''It's not something as easy as saying that we can decide on everything
about...FTA and TPP issues at APEC,'' Kan told the meeting to discuss ways to
spur Japan's economic growth, according to Tatsuo Hirano, senior vice minister
of the Cabinet Office.
In the afternoon, 110 ruling party lawmakers, including former Prime Minister
Yukio Hatoyama, held a meeting to call on the government to be ''cautious'' in
considering the idea of joining the TPP, out of concern for the future of
Japanese agriculture.
''We express great concern about rushing to make an announcement about joining
(the TPP) just because Japan is chair of APEC,'' a resolution adopted by the
lawmakers said.
Shizuka Kamei, leader of the People's New Party, the DPJ's tiny coalition ally,
said he was surprised to hear Kan say in his policy speech on Oct. 1 that the
government would ''look into participating'' in TPP negotiations.
The prime minister should have ''consulted about the matter beforehand'' with
the DPJ's coalition partner, he said.
The lawmakers are concerned that Japanese farmers could suffer ''a critical
blow'' if the country joins the TPP as the agreement in principle requires
members to eliminate all tariffs to zero.
Concurrently, the Japan Business Federation urged the government to announce at
the APEC summit in Yokohama next month that Japan will participate in
negotiations for the transpacific free trade talks.
''If the government loses the opportunity to make the announcement, Japan could
lag far behind other countries in developing an international business
environment,'' Japan's largest business lobby known as Nippon Keidanren said in
an emergency proposal to the government.
''There were also many opinions today. I will eventually set the direction
after the ruling party and the Cabinet iron out differences of opinion,'' Kan
told reporters in the evening.
Other major Asia-Pacific countries such as the United States and Australia have
already announced their participation in negotiations to join the TPP free
trade agreement that was originally signed by Brunei, Chile, New Zealand and
Singapore.
The business lobby's proposal said Japan should promptly take part in the talks
to make a strong case for its stance on farm product trade and positively
engage in making trade and investment rules under the TPP.
The proposal also asked the government to boost the competitiveness of Japan's
agriculture through structural reforms to achieve both the enhancement of
domestic food supply infrastructure and the promotion of trade liberalization.
Tadashi Okamura, chairman of the Japan Chamber of Commerce and Industry, also called on the government Thursday to promptly take part in TPP talks.
Given its cooperation with the Association of Southeast Asian Nations, Japan should join the TPP as soon as possible, he told a press conference.