Major Actor Gives TPP Up

Newspapers in Japan reported that Barack Obama administration gave up ratification of Trans-Pacific Partnership. In a telephone press conference, a White House staff explained that the leaders in Congress had demanded discussion over TPP to be done with next administration, which indicated impossibility of Obama administration to conclude the ratification. Nevertheless, the leading parties in Japan still pushing the Diet to pass TPP ratification bills, expecting survive of TPP.

Obama administration had been expecting the ratification in a lame duck period of Senate and House, regardless public opinion of supporters for Congress members. However, Deputy Security Advisor for the President, Ben Rhodes, told that TPP should be a focus between Congress and next President. U.S. newspapers reported that Obama had abandoned the ratification before the end of his term.

Mainichi Shimbun quoted a comment of Deputy National Security advisor, Wally Adeyemo, in which he insisted on significance of TPP in terms of economy and security for U.S. But, the Presidential election this month proved fundamental frustration of manufacture workers with the free trade deal, which would cause further job losses with advance of foreign carmakers including Japan. Being a choice of Japanese advance in U.S. market or China in Asia-Pacific region, TPP was too unpopular for American workers to be ratified.

While TPP is dying in U.S., Japanese government still keeps on hoping that free trade deal. “Taking every opportunity, I would urge the member countries including United States to end domestic procedures,” said Prime Minister Shinzo Abe in a session of House of Councillors. The bills for ratification had passed House of Representatives. Giving up TPP can damage credibility of the administration.

For Japan, death of TPP affects other free trade deals like Regional Comprehensive Economic Partnership in Asia-Pacific region or Economic Partnership Agreement with European Union. Based on high level free trade standard of TPP, Japan has been requiring ambitious goal for those pacts. While Mexico still hopes to activation of TPP without U.S., Australia expects RCEP to be an alternative.

For Abe, TPP is one of the few hopes in his economy policy, in which Abenomics loses its credibility with delay of reaching an inflation target. But, Japanese government did not persuade its public in the aspect of security in Asia-Pacific region, staying in economic merit in trade. If U.S. chooses bilateral deal with China, either on economy or security, Japan will be left behind in the game of great powers.