Tuesday, January 10, 2012

TPP kills Japan













TPP (Trans-Pacific Strategic Economic Partnership) originally FTA between the countries of Brunei , Chile, New Zealand and Singapore, entered into force on May 28, 2006. Then US president Barack Obama expressed to participate in it as well. Then Australia ,Malaysia, Peru, Vietnam joined it. After that, TPP is controlled by the US that has overwhelming economic power. These countries aimed at the agreement by the time APEC summit meeting in Hawaii in November 2011.

It's easy to explain the purpose of the US.
The economy of the US is confusing by facing the issue of finance and the high unemployment rate. Barack Obama announced " national export initiative" that the US will get double export in five years and make the employment of two million people. So, TPP is one of the American export expansion strategy.

Therefore, TPP changed character after participation of the US.
The goal became the American oriented direction that focused on the broad-based economic cooperation with keeping the liberalization concept.

Speaking in relation to Japan and TPP, Former Japanese prime minister Naoto Kan announced negotiation to join suddenly in October,2010.
Business community expressed the welcome attitude immediately and the major media reported that if Japan does not join it, Japan will be destroyed.

Japanese government, business community and the major media said that the TPP's standard rule of liberalization will become the world standard and they encouraged a sense of crisis that if we miss out on the wave of this trend, Japan must be left behind the world growth.  

I agree with the way of thinking that promoting the trade liberalization in the future, but I can't agree with participating in TPP that is controlled by the US.

Because,
There is no advantage for Japan.
If Japan participates in this negotiation table of TPP, 90% of the GDP is occupied by Japan and the U.S. In reality, TPP is Japan-the US. FTA (free trade agreement) in effect.
Participating in TPP means giving first priority to the decision by TPP compared to the civil law, the system and the policy in the country

For instance,

1, Safety of food issue

Japan sets the limit to import cows for preventing mad cow, but the US will demand to abolish this regulations as it's a trade barrier.
In TPP agreement, once the US consider as trade barriers, all the rules will abolish.
The food safety standard and the pesticide consumption rule will be relaxed, too. Also the inspection of the farm import will be simplified. Yes, the freedom of the economy will be given priority over the health of consumers.

As for the genetically-modified food, the regulation of the manufacture, selling and caution label will be abolished, too. A lot of low quality and low cost food products will be spread widely in Japanese market for economic priority.

2, Collapse in medical system

If Japan participates in TPP, the public medical insurance system is recognized as trade barriers that will against companies including the foreign capital from entering to the medical business in Japan. If foreign capital enters in Japanese medical business world and they aimed for profit, expensive free medical treatment will become popular and the hospitals will become for only wealthy people. Then, local public hospitals will decline, and people who are treated for public medical insurance will be shut out of medical care. Of course, Japan Medical Association objects TPP.

Regulations and duties are originally for protecting industry and employments of country. I don't think overprotecting domestic industries is good idea.
However, Japanese people have their original culture and lifestyle.
So, I'm worried about them participating in the US-driven TPP, because there is high possibility that the U.S will require to change the rule to the US oriented one. The conventional common sense that Japan has will not work at all.

And the biggest issue in Japan is

Not giving correct information to the people.

According to Cabinet office, If Japan participate in TPP and abolish all the custom duty, GDP will increase to 2.43.2 trillion yen. However, Ministry of Agriculture, Forestry and Fisheries expect that if Japan participate in TPP, the influence of agriculture and affiliates will decrease 7,900 billion yen in GDP. As above, information is not informed correctly.     

Also, Japanese government said that it's no problem to join the negotiation because if we receive disadvantage requirements for national interest, we can reject this. However, it's ridiculous, because once Japan sits in the negotiation table, Japan will have to write a contract with the US oriented agreement. It's clear if we see the result of Korea and the US  FTA agreement.

Japanese government should inform people the correct information and question the necessity of TPP. Unfortunately, it looks like it's running out of time. Japan will reach the agreement in TPP. For the future, Japanese people have to get the true information by themselves not from mass media . Then if they feel strange about it, they should do something like joining the demonstration.

 I personally agree with Japanese market being globalized in the future.
I think that the over protected industries should choose a way of going themselves. However, it's essential that Japanese government protect the national interest and safety. Therefore, they should refuse the disadvantage liberalization in future. I think that the genetically-modified food and mad cow issues which will be abolished in TPP should be considered for nations' healthy and safety first not economy growing.
Written in Dec 30 revised Jan 10

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