Japan and the Trans-Pacic Partnership (TPP) Japan and the Trans-Pacific Partnership (TPP): Rule Setter or Follower?

This article aims to examine the nature of Japanese government’s trade policy in the current climate of economic downturn after the tsunami disaster of March 2011. Consistent with its earlier policies pro-moting regional economic integration, the Japanese government has actively and strategically been pur-suing bilateral free trade agreements (FTAs) with its trade partners. Recently, however, Tokyo also an-nounced its interest in joining the Trans-Pacific Partnership Agreement (TPP) negotiation. Since the agreement requires complete elimination of tariffs including those applicable to agricultural products which are highly protected in the country, the Japanese government had been “not ready yet ” to enter the grouping. However, Prime Minister Yoshihiko Noda publicly announced Japan’s interests in joining TPP negotiation at the APEC Summit in Honolulu in 2011. Given the circumstances, several questions arise: Why has Japan been pursuing regional trade strategies centered on the FTA/TPP instead of relying solely on bilateral FTAs? What are the factors that promote or hinder Japanese participation in the TPP? How will the likely development of the TPP change the contours of regional cooperation in the near future? In what follows, I address these questions and make suggestions regarding the Japanese government’s trade policy to cope with the economic downturn after the tsunami disaster of March 2011. Key words: TPP, agricultural subgovernment, FTAAP 1