4/16/2013

Unequal Treaty


It may have reminded the people in Japan of the unequal treaties that the country had with the United States and European powers at the end of Edo era in the ninetieth century. Japan and US agreed on Japanese participation in the negotiation for Trans-Pacific Partnership, a framework of free trade agreement among the countries on the rim of Pacific Ocean. While US get a guarantee for protecting domestic cars, Japan could not secure enough promise for agricultural products. Pessimists in Japan argue that agriculture in Japan will be destroyed by TPP.

The biggest achievement of US was that it is able to maintain tariffs against imported cars, in which Japanese carmakers is still believed to have technological and commercial advantage. It was crucial for President Barack Obama to persuade shaky Congress and angry voters in Midwest states, where car factory workers have great political power. “US tariffs on cars will be postponed to the largest extent,” described the agreement.

What the administration of Shinzo Abe wanted was guarantee for setting sanctuary for domestic agriculture, because farmers have crucial votes for next election of the House of Councillors this summer. The agreement, however, did not include an exceptional language for Japanese agriculture. It simply acknowledged “certain sensitivity” on Japanese agriculture, as well as industrial products in US. Japan could not get a goal to exclusion for rice, wheat, beef/pork, dairy products and resources for sweets. With the agreement, the government of Japan drew a schedule to join TPP negotiation in July.

Farmers in Japan became furious about the outcome of the bilateral talk. Most agricultural leaders argue the agreement as eroding national interest, jeopardizing food safety in Japan and overwhelmingly meaningless. On the other hand, leaders in industries welcomed it with optimistic view for Japanese exporters. Leaning on industrial sectors to implement his economic policies, Abe stressed the significance of joining TPP.

Comparing both gains, the agreement is more favorable for US than Japan. But it might have been predicted by the government of Japan. Former Prime Minister Naoto Kan, who proposed the necessity of TPP, reiterated to call TPP as new opening of Japan. The opening of Meiji era was brought with unequal treaties including Convention of Peace and Amity or Treaty of Amity and Commerce between US and Japan in 1850s. Those treaties included foreigners’ capitulations, most-favored-country treatment for foreign countries and denial of Japanese tariff autonomy. The inequality in TPP should be recognized as a built-in characteristic.

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