Japan close to committing to USA’s TPP deal

THE Trans-Pacific Partnership initiative is, in part, Washington’s way of increasing trade in Asia. It is also a response to growing Chinese economic ties in one of the few economically vibrant regions of the world. Key to the creation of the trade partnership is the inclusion of Japan, the second largest economy in Asia. Once Japan signs on, other countries are likely to see the benefit of trade incentives with the United States and Japan and to finalize their participation.

As with any trade negotiations, specific economic and social interests, not the least of which is the agriculture lobby, in the United States and in Japan have complicated discussions. Japanese Prime Minister Shinzo Abe has been a supporter of Japan’s inclusion in the trade partnership for economic and political reasons. However, he was unwilling to make a final commitment if the economic concessions he was forced to make did not guarantee benefits from the U.S. side after passage. It is perhaps no coincidence that the Trade Promotion Authority bill comes out of committee only a few days before Abe is scheduled to visit Washington, where there is now the very real potential for an announcement of a final agreement on the Trans-Pacific Partnership. With Japan formally committed, the rest of Asia is likely to follow.