the background of FTA and the promotion of it in Japan (3)

   The reasons for Japan having taken a negative attitude toward FTA were (a)geographical circumstances, (b)a Japan-U.S. trade dispute, and (c)the difficulty of the liberalization of the agriculture in particular.

Kanrin Maru, Japan's first screw-driven steam warship, transported 1860s delegation to San Francisco.

c.                                             A Japan-U.S. Trade Dispute

Since the assumption of office of President Clinton in 1993, U.S.A. comes to insist on managed trade theory in relations with Japan, in discussion between 2 countries; in addition, by taking the unilateral sanction step, an attitude to solve a commerce item between Japan and the U.S.A. was outstanding. This attitude reached a peak at the time of Japan-U.S. car discussion in 1995. For such an American attitude, the Japanese M.I.T.I. particularly concerned proposes attitude to be going to solve things in WTO established in January, 1995, and was going to plan solution by bringing a dispute between U.S.A. into WTO. The Japan-U.S. car discussion was settled in June, 1995. Afterwards, by the review of the Japan-U.S. semiconductor discussion in 1996, the trade disputes between Japan and the U.S.A. decreased. However, the lingering sound of intense negotiations with U.S.A. was big, and thus, once the attitude of pro-WTO built, it was not easily faded away.

A concept vehicle by Lexus

If an own country cannot promote FTA, in consideration for standing on the character of the discrimination of the FTA in which a member country is in an advantageous situation in export side in comparison with the other countries, all it could do was to check the FTA promotion of other countries more or less by advocating WTO serious consideration. We can understand the behavior pattern of Japanese 90's over the FTA in context such as above.
  

Status of WTO negotiations:

  members (including dual-representation with the European Union)

  Draft Working Party Report or Factual Summary adopted

  Goods and/or Services offers submitted

  Memorandum on Foreign Trade Regime submitted

  observer, negotiations to start later or no Memorandum on FTR submitted

  frozen procedures or no negotiations in the last 3 years

  no official interaction with the WTO

According to ministries and government offices, perhaps, until the time when it was almost November, 1998, in the M.I.T.I. which experienced a Japan-U.S. trade dispute, negative attitude for the FTA was strong. For this reason, in Ministry of Foreign Affairs and Ministry of Agriculture, Forestry and Fisheries, although it was negative in FTA potentially, it seemed that they did not need to make obvious decision about FTA in that situation.  

Sources

http://www.mofa.go.jp/index.html

http://en.wikipedia.org/wiki/Japan_%E2%80%93_United_States_relations

http://en.wikipedia.org/wiki/Automotive_industry_in_Japan

http://en.wikipedia.org/wiki/World_Trade_Organization

the background of FTA and the promotion of it in Japan (2)

The reasons for Japan having taken a negative attitude toward FTA were (a)geographical circumstances, (b)a Japan-U.S. trade dispute, and (c)the difficulty of the liberalization of the agriculture in particular.

Association of Southeast Asian Nations (orthographic projection)

a.                       Geographical Circumstances

   In each area except East Asia, there was a flow to promote a local trade agreement from　1950's to 1970's, and there was a model on promoting a local trade agreement in 1990's. In contrast, in East Asia, there was not a local trade agreement except AFTA (ASEAN Free Trade Area) where ASEAN nations agreed in 1992, and East Asia was under a state in which there was not an imminent model. In addition, East Asia economy except Japan where a bubble collapsed had an economic growth invited to "a miracle" continues to a currency crisis of 1997, and the Japan was not able to find a positive reason to change a past way. Furthermore, China was in the middle of WTO participation negotiations and did not yet become the stage to meddle with FTA. By the above-mentioned circumstances, there was not the model of the FTA for Japan, and the pressure to conclude FTA with Japan was hard to happen.

Long-grain rice plants

2. The difficulty of the Liberalization of the Agriculture

   According to GATT Article 24 that is grounds method of the FTA, as a formation condition of the FTA, it needed to remove a wall about substantially all trades. Although the interpretation of GATT Article 24 was not clarity, it was expected that it must take some kind of liberalization steps in agricultural products. Thus, based on Japanese traditional rejection for the agricultural products liberalization, it was not a realistic thing. In particular, not being passiveness, what Japan starts to say the FTA conclusion for other countries means to commit the liberalization of the agricultural products by oneself, which was the choice that it was hard to take for the person concerned with government. 

Rice broker in 1820s Japan. "36 Views of Mount Fuji" Hokusai

Old-fashioned method of polishing rice in Japan."36 Views of Mount Fuji" Hokusai

   I will talk about (c) by next Tuesday.

Sources

http://www.mofa.go.jp/index.html

http://en.wikipedia.org/wiki/ASEAN

http://en.wikipedia.org/wiki/Rice

the background of FTA and the promotion of it in Japan (1)

World Trade: An Aspect of Trade

Through this blog, I would like to talk about FTA(Free Trade Agreement), EPA(Economic Partnership Agreement), and TPP(Trans-Pacific Partnership) which are deeply related to Japanese Agricultural policy. This topic is one of the most important things in Japanese economy and politics, so that thinking about it carefully is very meaningful for Japan in future. Thus, I will explore it in depth step by step, and as it moves toward the end, I will focus on TPP that is one of the most remarkable things in Japan now. 

Free Trade Area

Before the beginning, let me introduce to myself briefly. Hey forks!! I'm k who is international student in UCSD and econ major. I have worked as a research assistant for few months under Prof. Takeo Hoshi, working at IRPS in UCSD, and my research is about the main topic of this blog: FTA & Japanese Agricultural Policy. As I mentioned the above, I will explore this topic deeply with changing the world situation. OK, are you guys ready? Let's get started!!

At first, let me talk about the background of FTA and the promotion of it in Japan for better understanding in following topics.

In 1990’s, Japan took a negative attitude toward FTA under principle to attach great importance to WTO. In January 2002, Koizumi administration concluded the FTA with Singapore in the beginning. From then on, he concluded the FTA with Mexico and Malaysia, reached a signature with Philippine, and came to wait for a signature and ratification with Thailand. Furthermore, the FTA negotiations with Indonesia, Brunei, the whole ASEAN, Chile, Korea, the Persian Gulf countries (Saudi Arabia, etc) were performed. So far, Japan has done more on January 18^th, 2011.

Here is the list of FTA, EPA in terms of Japan.

ASEAN-Japan Comprehensive Economic Partnership Agreement

Japan-Brunei Economic Partnership Agreement

Japan-Indonesia Economic Partnership Agreement

Japan-Malaysia Economic Partnership Agreement

Japan-Philippines Economic Partnership Agreement

Japan-Singapore Economic Partnership Agreement

Japan-Thailand Economic Partnership Agreement

Japan-Viet Nam Economic Partnership Agreement

Japan-Australia Economic Partnership Agreement

Japan-Chile Economic Partnership Agreement

Japan-India Economic Partnership Agreement

Japan-Mexico Economic Partnership Agreement

Japan-Republic of Korea Economic Partnership Agreement

Japan-Switzerland Economic Partnership Agreement

Now, back to the main topic; why did Japan take a negative attitude toward FTA until 1990’s? How did the negative attitude change to the promotion of the FTA? What was the power that led Japan to the FTA promotion be? How did the obstacle to the FTA promotion to be removed?

The reasons for Japan having taken a negative attitude toward FTA were (a)geographical circumstances, (b)a Japan-U.S. trade dispute, and (c)the difficulty of the liberalization of the agriculture in particular.

 　

　　　I will talk about (a), (b), and (c) more in depth by next Tuesday.




Sources


http://www.mofa.go.jp/policy/economy/fta/index.html

http://en.wikipedia.org/wiki/Free_trade_area

http://ja.wikipedia.org/wiki/%E8%87%AA%E7%94%B1%E8%B2%BF%E6%98%93%E5%8D%94%E5%AE%9A