There were four speakers on the country-panel at GBD's spring conference, "Pacific Arrangements," namely, three diplomats and an American China expert.
Kunihiko Kawazu, Minister at the Embassy of Japan, was one of the diplomats.
At the outset, Minister Kawazu identified Japan's pursuit of free trade agreements, especially what he called the mega-regionals, as the essence of the third arrow of
Prime Minister Abe's policy, its growth strategy. In that context, he cited specifically:
TPP, the Trans-Pacific Partnership Agreement, which accounts for roughly 40 percent of world GDP. This agreement has been concluded, and the goal now, Mr. Kawazu said, is to have it ratified and implemented as quickly as possible.
RCEP, the Regional Comprehensive Economic Partnership, is being negotiated between ten members of ASEAN and six other countries, including Japan, Australia, and New Zealand. Collectively, the countries in RCEP account for just under 30 percent of global GDP. There have been 12 rounds of negotiations to date, and the goal is to finish the negotiations this year.
The Japan-EU Economic Partnership Agreement would also account for around 30 percent of world GDP. The goal for this agreement, Mr. Kawazu said, is "substantial agreement in this year."
CJK - The FTA being negotiated by China, Japan, and Korea would account for about 20 percent of global GDP. Mr. Kawazu did not give a timeline in connection with these negotiations but talked instead about "best efforts" for an "early conclusion."
As for TPP and RCEP, Mr. Kawazu's conclusion - that Japan wants both - was anticipated by his opening assertion that
"TPP and RCEP, they are not mutually exclusive."TPP, The Special FTA. While TPP may be only one of several trade agreements being pursued by the Government of Japan, it is nevertheless special. Mr. Kawazu explained, for example, that Japan set up a special negotiating team for TPP under the direct leadership of the Prime Minister. This group, which is part of the Prime Minister's office, is unique. The other FTAs are handled in a more routine manner.
But what makes TPP so special for Japan? Two answers to that questions were prominent elements of Mr. Kawazu's presentation: 1) the progressive nature of the rules agreed to by the TPP participants, and 2) the security implications of having TPP in place. Prime Minister Abe of Japan spoke to both elements when he addressed a Joint Session of Congress last year. Mr. Kawazu quoted the passage from that speech where
the Prime Minister said: "We can spread our shared values around the world and have them take root: the rule of law, democracy, and freedom.
"That is exactly what TPP is all about.
"Furthermore, the TPP goes beyond just economic benefits. It is also about our security. Long term, its strategic value is awesome. We should never forget that."
As for TPP's high standards, its rules, Mr. Kawazu mentioned TPP's chapters on the environment, intellectual property, and competition. He highlighted especially the agreement's provisions on e-commerce and digital trade. The U.S. International Trade Commission's report on TPP had been published just days before the GBD program, and Mr. Kawazu cited this comment in that report:
"Many observers have called TPP's digital trade-related provisions the most transformative measures in the agreement."
"I can agree with this assessment," Mr. Kawazu said, adding: "TPP can supply a very good, high-level precedent for other FTAs in terms of the rules."
