Japan and the United States are close to an agreement on the Trans-Pacific Partnership trade pact, said Prime Minister Shinzo Abe in a speech to Congress that pointed to his domestic agricultural reforms. Automobiles and agriculture have been two major and long-lasting issues in TPP negotiations. The free-trade pact would include 12 countries and 40 percent of the global economy.
“Japan’s agriculture is at a crossroads. In order for it to survive, it has to change now,” said Abe. “We are bringing great reforms toward the agriculture policy that’s been in place for decades. We are also bringing sweeping reforms to our agricultural cooperatives that have not changed in 60 long years.” Abe said he opposed opening Japan to agricultural imports during the Uruguay Round of trade talks two decades ago. “However, Japan’s agriculture has gone into decline over these last 20 years,” he said, and the average age of farmers is 66 years.
U.S. negotiators have pressed Japan to allow greater access for sugar, rice, wheat, dairy, and pork and beef imports. Japan has resisted change to the “sacred five” sectors although there have been reports of concessions.
Abe offered no specific changes during his speech and U.S. officials did not expect to wrap up TPP during his week-long visit. “As for U.S.-Japan negotiations, the goal is near,” he said. “Let us bring TPP to a successful conclusion through our joint leadership.”
Canada is receiving increased attention in TPP talks. U.S. officials say Canada is a laggard in offering agricultural reforms, especially on poultry, dairy and eggs. One factor may be the electoral calendar – Canadians are scheduled to elect members of parliament on Oct. 19. Polling suggests the ruling Conservative Party may lose ground to challengers.