11/12/2017

TPP Deal without US

Based on the briefing of the officers of Japanese government, Japanese newspapers reported that eleven countries participating in the negotiation over a major free trade framework called Trans-Pacific Partnership fundamentally reached a package of final deal. Although United States defied that high-standard free trade ruling, TPP11 will be activated with ratification of six nations or more. Hoping its indispensable ally to come back, Japan included some elements preferable for US. But, Donald Trump administration does not show any sign to overturn its campaign promises to protect the interest of America.

TPP negotiation started in 2010 and Japan joined it as the last participants in 2013. While the twelve countries reached a basic deal in October 2015, US walked out of the negotiation right after Trump’s inauguration this January. Realizing the necessity for building free trade standard against economic advance of China in the region, the rest of eleven countries kept the momentum without US. For Japan, TPP is also a defensive measure against bilateral deal Trump trying to pose.

The agreement was mostly based on the previous discussion in TPP negotiation. It was reported that the parties froze ten to twenty provisions that had been included with consistent initiative of US. They included eight-year preservation of data on development of biomedicines. Some of the frozen provisions will be lifted when US returns to the framework.

The negotiation has not been easy for each nation. Heavily depending on China of its import of thread for weaving, Vietnam requested freeze of a provision that demanded the parties to import the thread from member countries, because the provision had been included with initiative of US to protect domestic cotton business. After US left the negotiation, Mexico strongly opposed that to protect itself. Canada requested freeze or revision of a provision on copyright and safety regulation of automobile.

Recognizing itself as the alternative leader of TPP, Japan made deliberate efforts to wrap up the negotiation. Japan worked as a mediator between Vietnam and Mexico and made arbitration proposal that Canada seemed to be able to accept. Instead, Japan backed off its desire to change provision on agriculture, which would have negative impact on its domestic farmers.


In spite of the epoch-making deal after prolonged and complicated negotiation, some countries are still frustrated with the outcome. With strong opposition of Canada, the parties failed in upgrading the deal to be endorsed by their top leaders next day. It was reported that Canada wanted to reduce low-tariff quota on dairy products, encouraged by US defiance. TPP11 deal is up in the air so far.

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