The United States is demanding that Japan eventually eliminate tariffs on all imports under the planned Trans-Pacific Partnership free trade arrangement, placing the Abe administration in an even tighter squeeze domestically.

Although Washington would allow a grace period of more than 20 years for certain items, Japan insists that TPP exemptions be placed on products in the five “sacred” categories of rice, barley and wheat, sugar crops, dairy products, and beef and pork.

The disagreement could delay the goal of achieving an agreement on the TPP before the end of the year.

Under Japan’s stance of exempting items from the five major categories, its proposed trade liberalization rate is about 89 percent, the ratio of items on which Japan would eliminate tariffs.

According to sources, TPP member nations will likely be required to pledge a rate of 95 percent or so before an agreement can be reached.

Japan has been trying to raise its trade liberalization rate by reviewing sacred items on which tariffs could eventually be eliminated. But industry and political groups in Japan have put up strong opposition.

Prime Minister Shinzo Abe and U.S. President Barack Obama in February confirmed the existence of sensitive trade issues between Japan and the United States, such as Japanese farm products and U.S. manufactured goods.

Japanese officials took that confirmation to mean that tariffs could be maintained on a certain percentage of agricultural imports.

However, in late October, U.S. Trade Representative Michael Froman called Akira Amari, state minister in charge of the TPP, and asked that Japan eventually eliminate tariffs on all imports, according to sources close to the negotiations.

Amari rejected the request, saying the Abe administration would not survive if it gave in on all items in the five sacred categories.

Despite the grace period offered by U.S. officials, the demand for an elimination of all tariffs remains on the negotiating table.

Abe’s ruling Liberal Democratic Party passed a resolution that opposes the elimination of all tariffs in the five categories--even if long grace periods are permitted for some items.

The agriculture committees of the two chambers of the Diet have passed similar resolutions.

Washington’s tough stance may force Japan to change its negotiating strategy.

Japanese government officials initially sought assurances from their U.S. counterparts about exceptions for some farm imports before entering negotiations with other TPP participating nations.

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Writer: TOMOYA FUJITA

This news was published on November 17, 2013.

Source: http://ajw.asahi.com/article/economy/business/AJ201311170024