Containment Talks Go On

Even how the negotiators insist that the framework is about high standard free trade in Asia-Pacific region, it is actually a major tool for containment of China. The negotiation meeting of Trans-Pacific Partnership finished nine-day discussion over several key issues in Brunei on Friday. While there was no final agreement found so far, the parties decided to accelerate the negotiation and to continue their talks in Washington, DC, mid-September. There appeared a kind of consensus to conclude by the end of the year.

The parties issued a joint statement which noted their efforts for closing differences. It confirms progresses of technical measures on elimination of tariffs, rules of origin, investment, financial service, intellectual properties, competition and environment, and progress of discussions on access to commodity market, service, investment, financial services, temporary immigration and governmental procurement. They agreed on having an intermediate meeting in mid-September before the summit meeting of Asia-Pacific Economic Conference early October, at which the parties would expect to have overall agreement.

The most improved area is governmental procurement to prohibit discriminative habits excluding foreign industries. The parties agreed on listing the types of business. While they had not concluded on whether they introduce Investor-State Dispute provisions, which would allow investors suing foreign government to international organization when they would suffer from change of rules, setting rules on government-owned industries equal to private sectors could not determined.

For Japan, the most concerned was tariffs. While the government of Japan domestically promised to protect the important five products -- rice, wheat, beef and pork, dairy products and resource for sweetness --, the negotiators of Japan exchanged lists of tariff elimination with six countries. But, it talked with the United States, Canada and Australia without substances. Japan is going to continue bilateral talks with those three big agricultural exporters.

It is fair to say, however, momentum for final agreement was maintained or even enhanced. For example, Japan and U.S. are basically aiming to the same direction on regulating intellectual property right. “It is an important issue both for Mickey Mouse and Hello Kitty,” told Michael Froman, U.S. Trade Representative. Even if Japan and U.S. have dispute over on how long the regulation of property right should be, they are willing to set some standards on it.

One can realize that the themes of discussion are largely the problems they have with China. Property right, governmental procurement, exclusive habit against foreign industries or environmental regulation is something each party wants to take advantage of in dealing with China. By making international standard, all parties look to make good business with the economic giant in Asia. So, the response of China would be paid attention, when they reach a basic agreement at APEC meeting on October.