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24/07/2017, 18:25 PM

Japan is urgently lobbying the remaining members of the Transpacific Partnership Agreement (TPP) to issue a joint declaration on the possibility of continuing the pursuit of a non-US TPP (TPP) -11) and look at how it works.

"We will start the TPP-11 discussions at a meeting of the negotiating delegates scheduled to take place in Canada in early May and at a meeting of economic ministers in Vietnam on the 20th. / 5 and 21/5, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum in Hanoi, "Deputy Prime Minister and Finance Minister Taro Aso announced at the event. The meeting took place in New York on 19/4.

TPP-11, no US

On April 25, the Japanese government announced the appointment of Deputy Foreign Minister Keiichi Katakami as head of the TPP delegation. This position was left empty after his predecessor, Hiroshi Oe, assumed the post of Head of Japan's Foreign Ministry at the Organization for Economic Co-operation and Development (OECD). This is the latest move demonstrating Japan's pioneering desire in its attempt to realize the TPP, despite the withdrawal of the largest member of the TPP.

Commenting on the issue, the Financial Times said that Japan was ready to re-deploy the TPP without the United States. Japanese officials said the country was willing to deploy without changing much of the content negotiated in the TPP.

Under the previous agreement, the TPP would only be effective if at least 85% of the members of the whole population approved (i.e., the United States or Japan). Therefore, the fact that the US - a member makes up 60% of the GDP of the whole block withdrawals means that the realization of the TPP is no longer feasible. Therefore, to realize TPP-11, the remaining members must work harder to revise the terms without the United States and new negotiations will have to be carried out soon.

Many countries expect Japan to take the lead in this endeavor. According to a Singaporean foreign official, TPP will have no future if the second largest member - Japan does not take action. Even some American lawmakers and lawmakers have backed Japan's replacement of the United States in promoting free trade in Asia. There have been fears that the US withdrawal from the TPP could help China increase its influence in the region.

Flag to Japan

As Japanese Prime Minister Shinzo Abe announced in November last year when US President-elect Donald Trump announced his withdrawal from the TPP on the first working day at the White House, until recently, Tokyo maintained that "TPP Nonsense without the US ." But now, it seems that Japan has changed its stance.

Prime Minister Abe's government expects the US to change its mind and return to the TPP. But during the recent visit to Japan by US Vice President Mike Pence, the Japanese government has confirmed that returning to the United States with TPP seems unlikely.

In the economic talks with Taro Aso, Pence made it clear that TPP was a US past, and instead, the United States would promote a bilateral trade agreement with Japan. That made Japan "decided" to accelerate the implementation of TPP-11, while still hoping for reconsideration.

Of course, Japan decided to address some issues such as: What to do with rice and dairy quotas originally designed for a TPP Noodle. The largest economy TPP-11 will also face more market opening requirements than previous TPP conditions.

However, according to the analysis by Professor Kenichi Kawasaki of the Japan Institute for Policy Studies, the efforts of the country will not make any sense, TPP still bring economic benefits without the US. The TPP-11 could still boost Japan's real GDP by 1.11% - slightly lower than the 1.35% increase in the case of the United States joining the TPP. The revitalization of the TPP also helped Japan tighten its ties with the principal regional partners such as Vietnam and Australia and repel part of the growing anti-globalization wave.

Japan's pursuit of the TPP is also seen as a counterweight to Washington's pursuit of bilateral agreements. The Trump administration chose a short-term trade approach and was not interested in creating rules for multilateral free trade - which is the core principle of the TPP. Japan wants to be a key factor, continue to implement this policy with other countries.

On the other hand, the Nikkei commented that for Abe, his term would last until September 2021 - eight months after the end of US President Donald Trump's term. Thus, the realization of the TPP, even without the United States, would certainly be a great legacy for Prime Minister Abe to pursue.

However, when countries such as Japan and Australia appear ready, it will not be easy to persuade other members, who have so much compromised when the United States is a member of the agreement. For some countries, losing access to the US market means re-negotiating.

According to Financial Magazine