Details still need to be ironed out, however, regarding the five categories of agricultural products, for which the Japanese government seeks to maintain existing tariffs.
One is: In how many years should tariff rates on beef and pork be lowered? The second is: By how much should tariff-free imports of rice, wheat and barley from the United States be increased? The third is: What conditions should be set on the triggering of safeguard measures, which raise tariff rates to original levels when imports increase too rapidly?
After Friday's Japan-U.S. ministerial meeting regarding TPP, the Office of the U.S. Trade Representative (USTR) issued a statement which expressed consideration to Japan's key five farm products, but also added that the U.S. side pursues "the overall objectives of achieving meaningful access to its [Japan's] market."
The USTR seems to be aiming for favorable conditions that will allow an increase of U.S. agricultural product exports to Japan in the upcoming talks. But the country is not receptive in giving such favorable conditions to the U.S. side to minimize negative impacts on domestic agriculture.
Akira Amari, a minister in charge of TPP affairs, summed up the situation by stating, "There are still gaps [between Japan and the United States]."
It is likely that rice will be a focal point in upcoming negotiations, given how imports of U.S.-made rice amounted to 360,000 tons in fiscal 2012. The U.S. side is positive toward allowing Japan to maintain its tariff on rice, if in exchange the Japanese government allows an increase of the volume of U.S. rice imports.
For this purpose, the Japanese government is considering using a framework of the existing system of minimum access, in which certain quantities of foreign rice are imported with no imposed tariffs.
There are fears however that a surge of lower-priced foreign rice imports will lead to a crash in domestic rice prices, giving way to the possibility that rice farmers and Liberal Democratic Party lawmakers representing the interests of the farming sector will voice strong opposition.
It is likely that Acting U.S. Trade Representative Wendy Cutler, who will visit Japan on Monday, and Hiroshi Oe, Japan's deputy chief TPP negotiator, will continue working-level negotiations just before Thursday's Japan-U.S. summit meeting.
The negotiations will likely be tough, as the two sides must work out points of compromise with little room for concessions.
