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Obama, Abe issue joint statement vague on TPP

2014_0424_ObamaAbe
President Barack Obama and Japanese Prime Minister Shinzo Abe at their joint news conference today in Japan. (From White House video)


President Barack Obama and Japanese Prime Minister Shinzo Abe late today issued a joint statement on Obama’s state visit, contending they had made progress in their Trans-Pacific Partnership negotiations, but also saying “there is much work to be done.”

“In order to further enhance economic growth, expand regional trade and investment, and strengthen the rules-based trading system, the United States and Japan are committed to taking the bold steps necessary to complete a high-standard, ambitious, comprehensive Trans-Pacific Partnership (TPP) agreement,” the statement said.

"Today, we have identified a path forward on important bilateral TPP issues. This marks a key milestone in the TPP negotiations and will inject fresh momentum into the broader talks. We now call upon all TPP partners to move as soon as possible to take the necessary steps to conclude the agreement. Even with this step forward, there is still much work to be done to conclude TPP.”

The statement followed an extraordinary 24 hours in which a Japanese official said talks had broken off and Obama and Abe said they had ordered their trade negotiators to continue talking and had delayed the joint statement usually issued at the time of a joint press conference until later.

The Asashi Shimbun, a Japanese newspaper, noted that it was odd to continue negotiations after the two leaders had met and held a news conference.

“The United States was apparently using the joint statement as a lever to put pressure on Japan to reach an agreement on the TPP,” the newspaper wrote.

Early today, the Associated Press reported that Akira Amari, the top Japanese negotiator for the TPP talks, had said that the talks with U.S. Trade Representative Michael Froman “have stopped for now” and were not expected to resume “straight away,” meaning there will be no breakthrough on the agreement during Obama’s visit.

“The old issues still remain,” Amari said, the AP reported. That was most likely a reference to issues involving agriculture and automobiles. The United States wants Japan to reduce its tariffs on agricultural products and Japan wants a reduction on U.S. truck tariffs.

But at their joint news conference today, Abe said, “To make the talks between the two leaders a milestone and so as to resolve pending issues between our two countries, Minister Amari and U.S. Trade Representative Ambassador Froman decided that they would energetically and earnestly continue the talks. President Obama and I instructed the ministers to continue these talks so as to bring to a conclusion the remaining issues and so as to bring about a major conclusion of the TPP talks as a whole. Today and tomorrow, the talks will continue. So the joint statement released will see the result of this and we will formulate a joint statement after this.”

President Barack Obama

President Barack Obama
Obama added, “We made important progress in the Trans-Pacific Partnership, TPP, which will support good jobs and growth in the United States as well as economic reform and revitalization here in Japan. We’re closer to agreement on issues like automobiles and agriculture. I’ve been very clear and honest that American manufacturers and farmers need to have meaningful access to markets that are included under TPP, including here in Japan. That’s what will make it a good deal for America — for our workers and our consumers, and our families. That’s my bottom line, and I can’t accept anything less.”

Obama continued, “At the same time, Prime Minister Abe is committed to renewing Japan’s economy, and TPP is a vital part of that. As I’ve told Shinzo, Japan has the opportunity — in part through TPP — to play a key leadership role in the Asia Pacific region for this century. So now is the time for bold steps that are needed to reach a comprehensive agreement, and I continue to believe we can get this done.”

Shinzo Abe

Prime Minister Shinzo Abe
Asked by a reporter to add to those statements, Abe said, “On the TPP, this is to create a major economic zone in the growth area of Asia — basic human rights, rule of law, and democracy with countries that share these values. We will be creating new rules and it is for this purpose. It is the 21st-century type of economic zone which we wish to create. For the region as a whole, it’s strategically very important, and we see eye-to-eye on this point between President Obama and myself.”

He added, “The remaining issues must be overcome very quickly and resolved so that TPP as a whole can be concluded. We should cooperate and exert further leadership. And that is the task that President Obama and I have, I believe. And from a broad perspective, along with President Obama, we want to make decisions and judgments. On the part of our country, there is this resolution adopted by the Diet. We will take the proper heed of this so that we will choose the path in the best interest of the country. But we also hope to conclude the talks in a favorable way. We want to try to achieve conclusion of the talks as a whole.”

Obama said, “I will leave the details of the negotiations to the negotiators. I think it’s fair to say that there are certain sectors of the Japanese economy — agricultural sectors, the auto sector — in which market access has been restricted historically, certainly compared to the market access that Japan has had to U.S. consumers. And those are all issues that people are all familiar with, and at some point have to be resolved. I believe that point is now.”

Obama also said that Abe “courageously, has recognized that although Japan continues to be one of the most powerful economies in the world, that over the last two decades its pace of growth and innovation had stalled and that if, in fact, Japan wanted to push forward in this new century then reforms were going to have to take place. And he has initiated a number of those reforms. TPP is consistent with those reforms.”

“Now, there are always political sensitivities in any kind of trade discussions,” Obama added. “Prime Minister Abe has got to deal with his politics; I’ve got to deal with mine. And I think that Congress has passed, for example, recently a free trade agreement with the Republic of Korea and other countries around the world, and it’s been based on notions of reciprocity and notions that if we tear down some of these existing barriers that both countries can do better, both countries can grow. This is even more challenging because we have more countries involved.”

“But my basis for doing this is because, ultimately, I think it’s good for America to have an Asia Pacific region where our companies can innovate, can compete, can sell our goods and services freely, where our intellectual property is protected. And I think that’s going to create more jobs in the United States. It’s going to create greater prosperity in the United States. But it’s a win-win situation, because I think the same is going to be true for Japan, the same is going to be true for Malaysia, the same is going to be true for Vietnam, the same is going to be true for the other countries that are in this discussion.”

Obama concluded, “But that means that short term, all of us have to move out of our comfort zones and not just expect that we’re going to get access to somebody else’s market without providing access to our own. And it means that we have to sometimes push our constituencies beyond their current comfort levels because ultimately it’s going to deliver a greater good for all people.”

U.S.-Japan Joint Statement: Shaping the Future of the Asia-Pacific and BeyondThe Asashi Shimbun — A series of firsts in Obama meeting with AbeAssociated Press — Obama rejects notion that trade deal is in danger(Video) White House — Obama-Abe Press Conference