President Barack Obama, Prime Minister Abe Shinzo and the TPP Deal

• 04.28.2015, 22:24
•  America,  Asia,  World

The Japan Prime Minister Shinzo Abe is in Washington this week to meet with the U.S. President Barack Obama to discuss the Trans-Pacific Partnership trade deal. TPP is a 12-country trade deal that would cover 40% of the global economy, Financial Times reports.

Negotiations over the TPP have been continuing for already 5 years. Japan, which was the last country to join the trade deal, and the rest 10 courtiers are waiting for the U.S. Congress to give President Obama "fast-track" authority in order to close the deal. Final votes from both sides, Democrats and Republics, should take place in the end of May. Most of the Democrats are against the trade deal, but majority of Republicans agree with it. According to Republicans the TPP will create better paying, export-fueled jobs and will provide better conditions for middle class Americans. On the other hand  the Democratic Party is not sure about that. They consider   TPP to be small and medium size businesses.

Japan in its turn needs to solve some questions before joining the trade deal. The country has nominated five "sacred" product-dairy products, beef, pork, rice and wheat to be protected in the TPP discussion. The reason is the surplus of these products in its own market, which makes  import needless. The U.S. also has goods that need to be protected. It is about car industry, that 2.5% import tariff on auto parts should be defended; also 25% duty on light trucks should stay the same.

TPP is not only an economic endeavor, but is also strategic effort for both sides, U.S. and Japan. TPP is not a pure trade agreement free from political powers. There are many Pacific countries that would like to join the TPP in the future once it is concluded. Beijing has has also expressed willingness to join the Trance Pacific Partnership some day,

In this context it should be noted that the countries that will join the Partnership later will be excepted to be obliged by the rules defined by the U.S., Japan and 10 other countries. It also should be noted that it became very obvious that the U.S. is not willing to have China in the deal at this initial stage, after President Obama announced that the world should know that the U.S. and not China was the one who was dictating the rules of the world’s economy.