Japan indicates positive stance toward Pacific FTA talks+

TOKYO, Nov. 6 Kyodo - The Japanese government on Saturday indicated a positive stance toward possibly joining a U.S.-backed multilateral Pacific free trade initiative, stipulating in its basic policy on free trade that it would start consultations with countries involved in the move.

But the policy, decided at a meeting attended by Prime Minister Naoto Kan and
other Cabinet members, did not refer clearly to whether Tokyo wants to join the
Trans-Pacific Partnership agreement negotiations, out of consideration for many
ruling party lawmakers wary about the possible adverse impact on domestic
farmers.
''We will seek to realize both the opening up of our country and the
revitalization of the agricultural sector,'' Kan said at the end of the meeting
of ministers concerned. ''This is the start of our big strategy to create
Japan's new prosperity.''
Kan has been hurrying to work out an FTA policy before chairing the summit
meeting of the Asia-Pacific Economic Cooperation forum next weekend, where he
is expected to explain Japan's stance on the TPP. The TPP is expected to become
a leading framework in promoting economic integration in the region.
On the TPP, Japan said in the policy that ''it is necessary to act through
gathering further information,'' and that, ''while moving expeditiously to
improve the domestic environment, (Japan) will commence consultations with the
TPP member counties.''
The policy also emphasizes the need to accelerate ongoing bilateral FTA
negotiations with other countries, such as Peru and Australia, while deciding
to set up a task force to promote structural reform of the agricultural sector
so that farmers can prepare for the possible impact of further trade
liberalization.
''I feel there would be a crisis if we start to lag behind the global trend,
when countries in the world are opening up and are reaching economic
partnerships to create free trade areas,'' Kan said.
The latest development came after about a month of political wrangling over the
issue, which divided ministers and ruling party lawmakers and triggered
opposition from farmers fearing that they may suffer a serious blow if Japan
joins the TPP and faces a massive influx of cheaper agricultural products.
Japanese business leaders, meanwhile, have urged the government to announce its
intention to join the TPP negotiations at the upcoming APEC summit, noting that
the framework is important for Japan to revitalize its economy.
The TPP originated in a free trade agreement among Brunei, Chile, New Zealand
and Singapore, and negotiations are under way to expand it with another five
countries, including major agricultural exporters Australia and the United
States.
The nine countries are all APEC members, and the TPP is seen as a potential
core framework for achieving the APEC forum's long-term goal of creating a
regionwide free trade area.
With the policy, Kan told the ministers' meeting that he is determined to show
''strong leadership'' in steering the APEC summit meeting to outline a path
toward the creation of the regional free trade area.
The TPP issue grabbed the spotlight in Japan after Kan said in a policy speech
on Oct. 1 that his government would ''look into participating'' in the
negotiations regarding the framework.
Intended to require member countries in principle to reduce all tariffs to
zero, the TPP, however, provides Japan with a high bar to clear given its
longstanding reluctance to open up its agricultural market.
To join the TPP negotiations, Japan would have to undergo a process of seeking
approval from all the negotiating members, according to Japanese government
officials.