Japan Echo Web

Japan Should Move Quickly to Participate in the TPP Negotiations

Disciplining big powers’ actions in line with international economic rules

China has emerged in the East Asia region, with its GDP now exceeding Japan’s. It has also attempted to use its military to protect its maritime interests, stirring conflict with neighboring countries.

This situation raises concern that China could implement measures that threaten both Japanese and global economic activities, such as by banning exports of rare earths and other natural resources, imposing restrictions on investment and resorting to other means backed by its tremendous national strength. In the same way the World Trade Organization (WTO) dispute-settlement procedures nullified one-sided measures such as Article 301 of the United States Trade Act, a framework is needed for disciplining actions by China pursuant to the rules to which numerous countries have agreed.

These reasons suggest why it would be effective for Japan to participate in the Trans-Pacific Partnership (TPP) negotiations along with other developed countries of the Asia-Pacific region, including the United States, Australia, New Zealand and Singapore, take the initiative in establishing advanced rules on regional trade and investment, and present them to China and other countries. If TPP participants expanded to include most of the countries and areas of the Asia-Pacific region, it is likely that Chinese companies would see it as in their best interest to comply with the rules. In other words, it is desirable to first establish the TPP among countries capable of complying with the high-level rules and then to incorporate China, in order to establish a Free Trade Area of the Asia-Pacific (FTAAP) for the dual purposes of economic development and political stability in the overall region. This is necessary not only for controlling China’s actions, but also those of the United States, where the benefits of certain industries can easily influence national trade policies.