Posted March 18, 2014
Trade talks ended on Tuesday with no breakthrough for the Trans-Pacific Partnership, which would create the largest free-trade zone in history, linking key Asian-Pacific economies with Canada, the U.S., Mexico, Peru, and Chile, according to an article by Reuters available here.
Japan and the United States have been unable to find common ground on issues including tariffs for agricultural products and vehicle exports. Japan opposes a U.S. request to remove protective agriculture tariffs on foreign grains, meat, sugar, and dairy products.
The U.S. opposes removing sugar import tariffs and quotas that would harm American sugar beet farmers.
Participants remain optimistic while recognizing that these issues are significant. “While some issues remain, we have charted a path forward to resolve them in the context of a comprehensive and balanced outcome,” the countries’ trade chiefs said in a joint statement at the end of the 20th round of TPP talks going on since 2011.
While a date has not been set for the next round of negotiations, President Barack Obama is scheduled to visit Japan in April during a regional tour and will discuss the TPP with Japanese Prime Minister Shinzo Abe.
During the negotiations, U.S. agricultural organizations and legislators urged the Obama administration and negotiators to oppose Japan’s protection of key agricultural products like wheat, pork, beef, and dairy, according to a Capital Press article available here.
Japan’s protective measures would open the door for other countries to protect their products from free trade, putting pressure on global food prices, says Nick Giordano, vice president and counsel for international affairs for the National Pork Producers Council.
Japan’s proposal would have exempted hundreds of products, totaling nearly 600 tariff lines. “The number of tariff lines Japan seeks to exempt from tariff elimination exceeds by almost three times the total number of tariff lines exempted in all 17 U.S. free trade agreements combined implemented in this century.”
For more information on international trade, please visit the National Agricultural Law Center’s website here.
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