On the sidelines of the United Nations General Assembly Prime Minister Abe Shinzo had a summit meeting with President Donald Trump in New York on September 27. They reached an agreement to start negotiation on TAG (=trade agreement on goods). The accord looks like a platform reflecting claims of the both governments, but in fact it constitutes a free trade agreement (FTA) between the two countries in name and reality.

PROTECTION OF BIG CAPITALISTS TO DETRIMENT OF PEACE AND AGRICULTURE

The TAG is a new naming of the bilateral trade agreement: deceiving people, to the detriment of peace, agriculture and natural environment, it helps industries (automobile and steel) and the big business and multinational corporations - one more policy that damages people. At the same time the United States has confirmed that it would not return to the TPP initiative, or the Trans-Pacific Partnership arrangement.

President Trump’s agenda

A joint statement was issued by the two leaders on TAG, which says that the two nations declare to launch trade talks on goods: a full negotiation process will start early months in 2019, the stance of Japan should be respected in terms of an access to markets of agricultural produces and marine products that it will never exceed the level of concessions it did set in the TPP talks, the US position should be respected in terms of an access to motor vehicle markets that US is to increase production and jobs in the US, the both governments should not impose additional tariffs on cars during the course of talks, and the both nations should negotiate other trade and investment issues after completing the TAG talks.

That means Mr. Trump has enjoyed fruit, a launching of bilateral FTA talks, abandoning the name, a free trade agreement, while Mr. Abe has chosen TAG, closing a vision that US will return to the TPP initiative.

President Trump foresees a mid-term election in November and needs to show his feats for the sake of victory of the Republican Party, which are to launch negotiation on the US-Japan FTA and to reduce Japanese tariffs on agricultural produces as low as those set forth in the previous agreements.

Meanwhile Premier Abe was given in by a threat that ‘tariffs on motor vehicles will be surged to 25% from the current 2.5% unless Japan cooperates in narrowing trade imbalances’: he simply accepted the US demands, pledging to purchase a lot of weaponry.

It is uncertain, however, the terms that ‘the Japanese position should be respected’ or that ‘additional tariffs should not be imposed during the negotiation’ may be observed, judging from behaviors of Mr. Trump.

Tariffs and national security

Why will be launched full discussions early next year? It is because it takes President of the United States time to make deal with the Congress through the Trade Promotion Authority (TPA).

Or it is because the TPP11 and EPA between EU and Japan may take effect at the beginning of 2019. As for tariffs on beef, currently US beef is 38.5%/kg, while that of Australia is 26.9%/kg. If the TPP agenda are put into effect, the latter will fall to 9%. The US will face an overwhelming disadvantage.

In the TAG=FTA arrangement the United States will demand Japan, taking advantage of the claims of higher tariffs on Japanese cars and the context of US-Japan Security Treaty:

(1)        to reduce tariffs on beef to a lower level in comparison with those set in TPP,

(2)        to increase the quota of rice import (70 thousand tons),

(3)        to abolish screening of BSE (bovine spongiform encephalopathy),

(4)        to liberalize genetically-modified foodstuff products,

(5)        to restrict car export,

(6)        to wipe out car dealers’ networks,

(7)        and to repeal the preferential tax measure on small cars.

The government and ruling party bloc will aggressively increase import of US agricultural produces, procure weapon systems and go forward to amending Article Nine of the constitution at the expense of Japanese agriculture and natural environment and peace.

Meanwhile, we must more fiercely oppose liberalization of agricultural products than ever to protect our lives, peace and natural environment. We must be firmly determined to overthrow the Abe government, defending Article Nine of the constitution.

October 23, 2018