The TPP should serve as a bulwark to preserve free trade

Yomiuri ShimbunAccording to fair rules, many countries are united and enjoy the common benefits of economic revitalization: It is important to spread these principles of free trade around the world.

The Trans-Pacific Partnership (TPP) free trade pact, in which 11 countries, including Japan and Australia, will enter into force on December 30, as at least six signatory countries to the agreement supplement internal procedures were met.

A free trade area representing more than 10% of the world's gross domestic product (GDP) will be created in the rapidly growing region of the Asia-Pacific region. In addition to the elimination of tariffs, high level rules on trade and investment in the region will also be established.

Although the United States withdrew from the agreement, the TPP is of great importance because it will increase the level of economic growth in the region. This is an encouraging sign that the signatories have accelerated their efforts to make the relevant adjustments at the national level and have managed to bring the agreement into effect this year.

The goal of putting the United States and China in check is hiding behind the swift implementation of the agreement. As the United States intensifies its protectionist policies, China continues to practice unfair trade practices.

Member countries, which will eliminate a large number of tariffs, will have an advantage over the United States for intraregional exports. By making tangible the benefits of a multinational agreement, this agreement should serve as a bulwark to defend free trade protectionism.

The agreement incorporated rules that took into account China. With the rules, a muzzle will be put on the violation of intellectual property rights and the provision of excessive subsidies to public companies.

If the TPP rules become international standards, they will effectively prevent China from pursuing such practices.

Seize a favorable opportunity

Member countries will hold a ministerial level committee meeting next year and will discuss the steps for acceptance of countries wishing to become members. Many countries hope to join, including Thailand and Great Britain.

It is essential to progressively expand the scope of the TPP in order to limit protectionism and unfair trade.

In order to firmly maintain free trade, it will also become important to create other economic zones.

Efforts should be made for a swift conclusion of negotiations on the Regional Economic Partnership (RCEP) Free Trade Agreement, which includes China. By taking the lead in the negotiations, Japan should establish standards of rules for the RCEP as close as possible to those of the TPP.

In order to conclude a trade agreement on goods with the United States, Japan will begin new trade negotiations with Washington in January. It is highly likely that the United States will exert strong pressure on Japan to open its market to agricultural products, for example.

With regard to the liberalization of agriculture, Japan intends to limit it to levels promised under trade agreements such as the TPP. It is necessary to meticulously design a strategy. Japan must not give in to unreasonable demands.

If imports of cheap foreign products increased with the coming into force of the TPP, the benefits would also benefit consumers. On the other hand, domestic farmers and others will be exposed to fierce competition.

While taking steps to alleviate this suffering, efforts to transform the implementation of the TPP into a favorable opportunity, such as to increase agricultural exports and to help farmers, should also be promoted. small and medium enterprises to expand abroad.

(From The Yomiuri Shimbun, November 4, 2018) Speech

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