Trade lawmakers seek assurances that Japan will open its markets

Leaders of congressional trade committees are urging the Obama administration to ensure that Japan will open its market to U.S. imports before allowing the nation to join talks for an Asian-Pacific agreement.

In a letter on Tuesday to U.S. Trade Representative Ron Kirk, the lawmakers — Senate Finance Chairman Max Baucus (D-Mont.), ranking member Orrin Hatch (R-Utah), House Ways and Means Chairman Dave Camp (R-Mich.) and ranking member Sander Levin (D-Mich.) — said the provisions in the Trans-Pacific Partnership (TPP) would need to be strong enough to change Japan's long-standing restrictions on imports. 

"Despite being the world's third largest economy, Japan has long sheltered its domestic market from meaningful competition," the lawmakers wrote. 

Japan would need to lower trade barriers to autos, agricultural products including beef along with drugs, insurance and medical devices before they could be allowed to join negotiations, which are set to continue with a framework of an agreement at the Asia Pacific Economic Cooperation (APEC) summit in Honolulu this weekend. 

"However, paramount considerations in evaluating a request related to a trade agreement must be whether Japan is willing and able to meet the high standard commitments inherent in U.S. free trade agreements and whether inclusion would truly open this historically closed market to the benefit of our companies, workers and farmers," they wrote. 

The said provisions in the TPP regarding non-tariff trade barriers, as well as restrictions on the operations of state-owned enterprises could, "if sufficiently robust be applied to address at least some of these concerns," the lawmakers wrote.

"At the same time, Japan's inclusion would add dramatically new dimensions and complexities to the TPP negotiations," they said.  

"For that reason we urge you to closely consult with Congress and stakeholders well in advance of any decisions." 

The TPP agreement is an Asia-Pacific regional trade agreement currently being negotiated among the United States and eight other partners: Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam.

President Obama will head there this weekend to meet with leaders from 20 nations. 

In Japan, top government officials have signaled that Prime Minister Yoshihiko Noda could make a decision as early as Thursday and before heading to Hawaii this weekend, according to news reports. 

Opinions are mixed in Japan about joining the negotiations, with some arguing that opening trade will provide a much-needed boost to the economy, while others say increased competition could hurt many Japanese industries, specifically agriculture and manufacturing, especially at a time when the Asian nation is still recovering from the March earthquake and tsunami.